TORONTO, Feb. 22 /PRNewswire/ - Gammon Gold Inc.
("Gammon" or the "Company") (TSX: GAM) (NYSE:GRS) wishes to provide
an update on recent developments at the Company's El Cubo mine located in Guanajuato State,
Mexico. In response to reports issued by the Mexican media
that have indicated an end to the 8-month labour disruption, the
Company wishes to clarify the status of current negotiations with
the El Cubo union. The Company
confirms that advanced negotiations with the union are currently
underway and while the Company is optimistic that a resolution to
the work stoppage will be finalized in the near term, a definitive
agreement with the union has not been reached. As this time, the
union continues to restrict access to the mine facilities. However,
as a sign of good faith, representatives from both the Company and
the union will be inspecting the underground mine facilities today
to determine the possible level of remediation requirements before
mining activities could resume. The Company will provide further
updates as warranted.
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
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.
For further information please visit the Gammon
gold website at www.gammongold.com or contact:
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 http://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.
SOURCE GAMMON GOLD INC.
Copyright . 22 PR Newswire