TORONTO, March 7, 2011 /PRNewswire/ -- Gammon Gold Inc.
("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce
that its ongoing drilling at the Guadalupe y Calvo Project in
southern Chihuahua State, Mexico,
continues to intercept high-grade gold-silver mineralization in the
Northwest Extension of the Rosario Vein.
Guadalupe y Calvo Drilling Highlights
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Highlights from the 32-hole program include:
- Hole GC-185, 1.1 metres grading 62.37 grams per tonne gold plus 56
grams per tonne silver, or 63.39 grams per tonne gold equivalent(1).
- Hole GC-203, 5.0 metres grading 8.96 grams per tonne gold plus 587
grams per tonne silver, or 19.63 grams per tonne gold equivalent(1).
- Hole GC-207, 2.0 metres grading 8.64 grams per tonne gold plus 656
grams per tonne silver, or 20.56 grams per tonne gold equivalent(1).
- Hole GC-215, 1.1 metres grading 19.21 grams per tonne gold plus 73
grams per tonne silver, or 20.53 grams per tonne gold equivalent(1).
"We are very encouraged by the mineralization discovered in the
Rosario Northwest Extension as it increases the length of the high
grade mineralization a further 500 meters from the 2008 drilling
program. The Northwest Extension has never been previously explored
as the vein occurs below the post-mineral tuffs." stated
Peter Drobeck, Senior Vice President
of Exploration and Business Development. Mr. Drobeck continued,
"Due to the success of the drilling program over the past 8 months,
the Board of Directors have approved a budget of US$4.0 to US$5.0 million for 2011 to develop this
new discovery. In addition, the Preliminary Economic Assessment is
now being expanded to include these new and encouraging drill
results."
Since resuming the drilling program at Guadalupe y Calvo in
April 2010, the Company has drilled
an additional 40 diamond drill holes (22,513 metres), of which 32
holes (19,721 metres) were drilled on the Northwest Extension of
the Rosario system. The average of the 21 intercepts that reported
over a 2.5 grams per tonne gold equivalent(1)cutoff is 1.9 metres
grading 6.85 grams per tonne gold and 188 grams per tonne silver,
or 10.36 grams per tonne gold equivalent(1). This step-out drilling
is testing the extension of the major vein system at Guadalupe y
Calvo underneath a thick series of post-mineral volcanic tuffs. The
work has been very successful in discovering and delineating a wide
zone of sheeted to locally stockworked vein system, ranging from
more than 10 to over 100 meters in width, within which are narrower
zones of high-grade mineralization that meet current underground
cut-off grades at the Company's other underground operations. The
expanded PEA is expected to be released during the second quarter
of 2011.
(1) Using the Company's long term gold equivalency ratio of
55:1
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
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 exploration and development program at Guadalupe y Calvo,
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:
Drill Results - Guadalupe y Calvo 2010 - 2011 (For Inclusion in the PEA)
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Drill Hole From To Length Gold Silver Gold eq.
(m) (m) (m) (g/t) (g/t) (g/t)(1) Vein
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(x)GC-0183 207.4 208.4 1.0 0.90 99 2.70 Rosario NW EXT
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(x)GC-0183 213.4 215.4 2.0 6.18 14 6.43 Rosario NW EXT
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(x)GC-0185 386.6 395.8 9.2 7.67 28 8.18 Rosario NW EXT
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(x)Including 386.6 387.7 1.1 62.37 56 63.39 Rosario NW EXT
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(x)GC-0188 709.0 717.2 8.2 3.97 73 5.77 Rosario NW EXT
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(x)Including 710.2 711.6 1.4 24.04 307 29.63 Rosario NW EXT
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(x)GC-0188 742.0 743.0 1.0 2.69 16 2.98 Rosario NW EXT
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GC-0192 274.3 275.7 1.4 1.95 19 2.29 Rosario NW EXT
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GC-0196 546.0 547.0 1.0 2.79 3 2.85 Rosario NW EXT
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GC-0197 290.0 294.0 4.0 15.90 1225 38.18 Rosario SE
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GC-0197 298.7 299.7 1.0 3.11 428 10.89 Rosario SE
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GC-0197 305.7 306.7 1.0 1.38 174 4.54 Rosario SE
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GC-0201 716.5 717.5 1.0 1.49 38 2.18 Rosario NW EXT
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GC-0202 510.8 511.4 0.6 3.76 13 4.00 Rosario NW EXT
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GC-0203 553.0 558.0 5.0 8.96 587 19.63 Rosario NW EXT
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GC-0203 577.8 579.4 1.6 1.08 188 4.50 Rosario NW EXT
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Including 585.9 587.3 1.4 1.23 105 3.14 Rosario NW EXT
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GC-0204 607.4 608.4 1.0 1.84 136 4.31 Rosario NW EXT
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GC-0207 521.8 523.8 2.0 2.58 205 6.31 Rosario NW EXT
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GC-0207 527.8 529.8 2.0 8.64 656 20.56 Rosario NW EXT
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GC-0207 533.3 536.3 3.0 4.06 274 9.04 Rosario NW EXT
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GC-0208 592.7 593.2 0.5 2.06 78 3.47 Rosario NW EXT
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GC-0209 300.6 301.2 0.5 5.56 66 6.76 Rosario NW EXT
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GC-0213 307.25 309.25 2 3.74 21 4.12 Rosario NW EXT
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GC-0215 383.6 391.7 8.1 2.75 23 3.17 Rosario NW EXT
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Including 389.6 390.7 1.1 19.21 73 20.53 Rosario NW EXT
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GC-0215 549.3 550.3 1 2.60 1 2.62 Rosario NW EXT
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(x)Previously reported
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Note: The Guadalupe y Calvo information has been reviewed by
Qualified Person, Mr. Peter Drobeck.
Sample analyses for Guadalupe y Calvo drilling were performed by
both SGS Laboratories (based in Mississauga, Ontario using their facility in
Durango, Mexico), and at
ALS-Chemex Laboratories (based in Vancouver, British Columbia, using their
facility in Hermosillo, Mexico).
Gold was analyzed using standard fire assay procedures with AA
finish, and silver by multi-acid digestion with AA finish. The
Company has an established program of inserting certified control
samples and blanks in compliance with best practices, and this
program was used at Guadalupe y Calvo per Company policies. Sample
lengths are not necessarily true widths.
To view Figure 1: Guadalupe y Calvo-Rosario Vein Long Section & Drilling
Plan please visit: http://files.newswire.ca/258/GyCsection.pdf
For further information: For further information: please visit
the Gammon gold website at http://www.gammongold.com or contact:
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