Gammon Gold Completes Successful 2010 Drilling Program at Ocampo and Announces New Discoveries and Additional High Grade Drill Intercepts
By Gammon Gold Inc., PRNESunday, February 6, 2011
TORONTO, February 7, 2011 - Gammon Gold Inc. ("Gammon") (TSX: GAM and NYSE:GRS) Gammon is pleased to
provide an update of drill results from the Ocampo exploration program.
During 2010 the Company completed 137,393 metres of drilling at Ocampo
with twelve drill rigs operating on surface and underground during the fourth
quarter.
New Discoveries Recent Drilling Highlights
Polvorin
Drilling at the Polvorin target, located directly north of the mine
offices, reported additional high-grade mineralization.
- Drilling highlights include:
- Hole OG-1213, 0.5 metres grading 121.69 grams per tonne gold
equivalent(1)
Refugio Norte
Drilling at the Refugio Norte target zone, located southeast of the mine
offices and on the north side of the Refugio open pit, reported very
high-grade mineralization.
- Drilling highlights include:
- Hole OG-1194, 0.8 metres grading 172.71 grams per tonne gold
equivalent(1)
Resurrecion
Drilling began on the Resurrecion vein and shear zone during the fourth
quarter. The Resurrecion target is located on the east side of the town of
Ocampo and projects downward into the existing North-East mine complex and
has reported high-grade mineralization.
- Drilling Highlights include:
- Hole OG-1155, 0.8 metres grading 26.58 grams per tonne gold
equivalent(1)
Candelaria
Drilling on the Candelaria target, located directly under the Picacho
open pit, reported encouraging results.
- Drilling Highlights include:
- Hole OG-1149, 0.6 metres grading 7.30 grams per tonne gold
equivalent(1)
Key Drilling Highlights on Existing Veins
Altagracia
- Drilling highlights include:
- Hole OG-1150, 2.3 metres grading 5.63 grams per tonne gold
equivalent(1)
- Hole OG-1164, 7.1 metres grading 9.86 grams per tonne gold
equivalent(1)
- Hole OG-1212, 1.2 metres grading 23.75 grams per tonne gold
equivalent(1)
- Hole OG-1217, 1.5 metres grading 6.72 grams per tonne gold
equivalent(1)
Balvanera
- Drilling highlights include:
- Hole OG-1134, 1.3 metres grading 9.07 grams per tonne gold
equivalent(1)
- Hole OG-1143, 1.3 metres grading 6.37 grams per tonne gold
equivalent(1)
- Hole OG-1143, 0.6 metres grading 39.74 grams per tonne gold
equivalent(1)
- Hole OG-1195, 0.5 metres grading 19.29 grams per tonne gold
equivalent(1)
- Hole OG-1195, 2.6 metres grading 9.93 grams per tonne gold
equivalent(1)
Aventurero and LaMore
- Drilling highlights include:
- Hole OG-1185, 0.7 metres grading 25.24 grams per tonne gold
equivalent(1)
- Hole OG-1185, 0.8 metres grading 10.67 grams per tonne gold
equivalent(1)
- Hole OG-1197, 2.5 metres grading 11.33 grams per tonne gold
equivalent(1)
Belen
- Drilling highlights include:
- Hole OG-1245, 0.5 metres grading 3.15 grams per tonne gold
equivalent(1)
- Hole OG-1254, 1.0 metres grading 6.15 grams per tonne gold
equivalent(1)
"We are very encouraged by the continuing positive results from our
exploration program that supports the significant upside potential at Ocampo.
The Company's 2010 drilling program has clearly shown that the existing veins
at Ocampo are open in four lateral directions." stated Peter Drobeck, Sr.
Vice President of Exploration and Business Development. He continued, "Our
2011 exploration program is well underway with five surface core rigs and six
underground drill rigs working and we anticipate continuing to report
positive results at Ocampo and our expanded land packages."
Altagracia Target
Work over the past year showed that the Altagracia Target area is divided
into two parts, separated by a post-mineral fault zone. Lower Altagracia
drilling cut numerous high-grade intercepts that now indicate a 300-meter
vertical interval of mineralization that is only 250 metres from existing
underground infrastructure. The results received to date supports extension
of planned underground development from Belen to Altagracia, which will
ultimately connect the North-East underground operations to the PGR trend, or
open pit zone, two kilometers to the south.
Drilling at the Altagracia Mine target, just 270 metres further to the
east, has cut numerous anomalous intercepts following up earlier ore-grade
intercepts from last year, and this is now planned for in-fill drilling to
calculate a resource and potentially reserves.
Balvanera Vein
The Company presently mines the Balvanera vein in the North-East
underground complex, but it has not been mined above the 1720 level. Drilling
completed over the past 3 months has defined strong mineralization in this
vein from near-surface to the 1720 metre level, a vertical interval of 120 to
170 metres from surface. This vein can be easily accessed from existing
infrastructure.
Aventurero Vein and LaMore Vein
In addition to the exciting results at the Balvanera, nearby exploration
on the Aventurero vein and LaMore vein have shown equally encouraging
high-grade mineralization.
Note: The Ocampo drilling results have been reviewed by Qualified Person,
Mr. Peter Drobeck. All sample analyses for Ocampo surface exploration
drilling were performed by ALS-Chemex Laboratories, based in Vancouver,
British Columbia, using standard fire assay procedures with AA finish. The
Company has an established program of inserting certified control samples and
blanks in compliance with best practices, and this program is used at Ocampo
Company policies. Sample lengths are not necessarily true widths.
About Gammon Gold
Gammon Gold Inc. is a mid-tier gold and silver producer with properties
in Mexico. Gammon's flagship Ocampo Property is located in Chihuahua State.
Gammon also owns the suspended El Cubo mine in Guanajuato State and the
Guadalupe y Calvo development property in Chihuahua State. In 2010 Gammon
completed option purchase agreements to acquire the Los Jarros and Venus
Projects located directly north and east of the Ocampo mine, the Mezquite
Project in Zacatecas State, and has signed a binding Letter of Intent to
joint venture into the La Bandera gold project in Durango State. The Company
has made strategic investments in Golden Queen Mining Co. Ltd. and Corex Gold
Corporation. The Company's Executive Office is located in Toronto, Ontario.
Cautionary Statement
Cautionary Note to US Investors - The United States Securities and
Exchange Commission permits US mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. This press release uses certain terms, such
as "measured," "indicated," and "inferred" "resources," that the SEC
guidelines strictly prohibit US registered companies from including in their
filings with the SEC. US Investors are urged to consider closely the
disclosure in Gammon gold's Annual Report on Form 40-F, which may be secured
from Gammon gold, or from the SEC's website at
www.sec.gov/edgar.shtml.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
Certain statements included herein, including information as to the
future financial or operating performance of the Company, its subsidiaries
and its projects, constitute forward-looking statements. The words
"believe", "expect", "anticipate", "contemplate", "target",
"plan", "intends", "continue", "budget", "estimate", "forecast",
"may", "will", "schedule" and similar expressions identify
forward-looking statements. Forward-looking statements include, among other
things, future exploration results of its development program, the Company's
ability to delineate additional resources and reserves as a result of such
program, and the company's ability to mine such targets by mid-2011,
statements regarding its financial exposure to litigation, targets, estimates
and assumptions in respect of gold and silver production and prices,
operating costs, results and capital expenditures, mineral reserves and
mineral resources and anticipated grades, recovery rates, future financial or
operating performance, margins, operating and exploration expenditures, costs
and timing of completion of the Ocampo expansion program and improvements to
the heap leach pad, costs and timing of the development and commencement of
production of new deposits, costs and timing of construction, costs and
timing of future exploration and reclamation expenses including, anticipated
2010 results, operating performance projections for 2010 and 2011, our
ability to fully fund our business model internally, 2010 gold and silver
production and the cash and operating costs associated therewith, the ability
to achieve productivity and operational efficiencies, the ability to access
grid power at Ocampo, further reduction in the open pit stripping ratio and
the timing of each thereof. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered reasonable
by the Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. Many
factors could cause the Company's actual results to differ materially from
those expressed or implied in any forward-looking statements made by, or on
behalf of, the Company. Such factors include, among others, known and unknown
uncertainties and risks relating to additional funding requirements, reserve
and resource estimates, commodity prices, hedging activities, exploration,
development and operating risks, illegal miners, political and foreign risk,
uninsurable risks, competition, limited mining operations, production risks,
environmental regulation and liability, government regulation, currency
fluctuations, recent losses and write-downs, restrictions in the Company's
loan facility, dependence on key employees, possible variations of ore grade
or recovery rates, failure of plant, equipment or process to operate as
anticipated, accidents and labour disputes. Investors are cautioned that
forward-looking statements are not guarantees of future performance and,
accordingly, investors are cautioned not to put undue reliance on
forward-looking statements due to the inherent uncertainty therein.
TABLE 1:
Select New Drill Results from Ocampo Surface Exploration Program, Q4 2010
Drill Hole From (m) To (m) Length (m) Gold Silver AuEq(1) Vein
(g/t) (g/t) (g/t)
OG-1150 105.7 108.1 2.3 5.29 19 5.63 Altagracia
Lower
OG-1164 107.2 114.3 7.1 7.69 119 9.86 Altagracia
Lower
OG-1174 87.9 89.0 1.1 1.26 239 5.59 Altagracia
Lower
OG-1212 61.7 62.8 1.2 17.30 355 23.75 Altagracia
Mina
OG-1217 40.4 41.0 0.6 0.66 129 3.01 Altagracia
Mina
OG-1217 82.0 83.0 1.0 2.70 68 3.94 Altagracia
Mina
OG-1217 92.9 94.4 1.5 6.11 33 6.72 Altagracia
Mina
OG-1223 56.7 57.5 0.8 3.41 13 3.65 Altagracia
Mina
OG-1228 28.8 29.8 1.0 3.65 10 3.83 Altagracia
Mina
OG-1122 4.2 6.1 1.9 3.21 66 4.41 Aventurero
near Bal.
OG-1185 114.7 115.4 0.7 14.55 588 25.24 Aventurero
near Bal.
OG-1185 122.5 123.4 0.8 8.20 136 10.67 Aventurero
near Bal.
OG-1197 81.7 84.2 2.5 8.83 138 11.33 Aventurero
near Bal.
OG-1251 59.5 61.0 1.5 1.89 38 2.59 Aventurero
Nivel 2
OG-1251 66.0 66.8 0.8 9.15 45 9.97 Aventurero
Nivel 2
OG-1256 34.6 35.2 0.6 3.73 68 4.97 Aventurero
Nivel 2
OG-1256 37.9 38.4 0.5 2.56 8 2.71 Aventurero
Nivel 2
OG-1259 56.2 60.5 4.3 27.65 416 35.22 Aventurero
Nivel 2
OG-1234 40.7 41.3 0.6 2.35 34 2.97 Aventurero SE
OG-1130 16.3 16.9 0.6 4.19 24 4.63 Balvanera
OG-1134 19.3 20.6 1.3 8.89 10 9.07 Balvanera
OG-1143 19.5 20.8 1.3 6.05 18 6.37 Balvanera
OG-1143 21.7 24.8 3.1 2.53 14 2.77 Balvanera
OG-1143 24.8 25.3 0.6 33.70 332 39.74 Balvanera
OG-1195 24.8 25.3 0.5 18.60 38 19.29 Balvanera
OG-1195 31.2 33.8 2.6 8.82 61 9.93 Balvanera
OG-1211 74.0 75.3 1.3 0.07 140 2.62 Balvanera
OG-1191 67.8 68.4 0.7 1.60 158 4.47 Balvanera-More
OG-1197 54.1 55.6 1.6 6.32 162 9.26 Balvanera-More
OG-1197 57.7 59.8 2.1 3.68 138 6.18 Balvanera-More
OG-1201 56.2 59.2 3.1 3.23 355 9.68 Balvanera-More
TABLE 1:
Select New Drill Results from Ocampo Surface Exploration Program, Q4 2010
(cont'd)
Drill Hole From (m) To (m) Length Gold Silver AuEq(1) Vein
(m) (g/t) (g/t) (g/t)
OG-1245 70.2 70.7 0.5 2.05 61 3.15 Belen Alto
OG-1254 48.3 49.3 1.0 2.25 215 6.15 Belen Alto
OG-1224 25.0 27.0 2.0 0.56 51 1.49 Dog Clavo
OG-1224 61.4 62.5 1.1 3.77 138 6.28 Dog Clavo
OG-1181 79.6 80.6 1.0 0.07 300 5.52 La More
OG-1185 56.0 57.3 1.3 2.64 96 4.38 La More
OG-1149 158.6 159.7 1.1 3.29 18 3.62 Picacho-Candelaria
OG-1149 163.3 163.9 0.6 6.95 19 7.30 Picacho-Candelaria
OG-1213 99.9 100.5 0.5 48.60 4020 121.69 Polvorin
OG-1194 11.6 12.4 0.8 169.00 204 172.71 Refugio Norte
OG-1194 31.1 32.4 1.4 3.35 18 3.68 Refugio Norte
OG-1176 57.3 58.0 0.7 3.57 294 8.92 Res. Sistema
40degrees Az
OG-1176 140.6 141.5 0.8 1.73 103 3.60 Res. Sistema
40degrees Az
OG-1100 88.7 89.4 0.7 4.13 67 5.35 Resurreccion
OG-1127 20.1 20.8 0.8 3.11 123 5.35 Resurreccion
OG-1127 73.2 73.8 0.5 1.55 230 5.73 Resurreccion
OG-1140 33.9 34.9 1.0 1.79 108 3.75 Resurreccion
OG-1155 18.5 19.3 0.8 18.25 458 26.58 Resurreccion
OG-1155 22.0 22.6 0.7 2.18 54 3.16 Resurreccion
OG-1141 47.3 47.8 0.5 2.36 29 2.89 Stock Work Hill
Note: The Ocampo drilling results have been reviewed by Qualified Person,
Mr. Peter Drobeck. All sample analyses for Ocampo surface exploration
drilling were performed by ALS-Chemex Laboratories, based in Vancouver,
British Columbia, using standard fire assay procedures with AA finish. The
Company has an established program of inserting certified control samples and
blanks in compliance with best practices, and this program is used at Ocampo
Company policies. Sample lengths are not necessarily true widths.
To view the Ocampo Plan Map, please go to
files.newswire.ca/258/Ocampo_Plan_Map.doc.
For further information:
For further information please visit the Gammon gold website at
www.gammongold.com or contact:
Peter Drobeck Anne Day
Sr. VP Exploration & Business Development Director of Investor Relations
Gammon Gold Inc. Gammon Gold Inc.
+1-416-646-3825 +1-416-646-3825
Peter Drobeck, Sr. VP Exploration & Business Development, Gammon Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., +1-416-646-3825
Tags: canada, February 7, Gammon Gold Inc., Toronto
