TORONTO, March 10, 2011 /PRNewswire/ -- Gammon Gold Inc.
("Gammon" or the "Company") (TSX: GAM) and (NYSE:GRS) wishes to
provide an update on recent activities at the El Cubo mine. As previously announced on
February 23, the labour disruption at
the El Cubo mine was successfully
resolved after a more productive and standardized Collective
Agreement was negotiated with the union.
Since February 22, management
regained access to the mine facilities and immediately began an
exhaustive infrastructural and ground control assessment to develop
an operations plan that would allow production to recommence as
soon as possible. This review has been completed and mine
conditions were found to be better than originally anticipated such
that the Company fully expects to begin development work in
April.
As part of the operations plan, the rehiring process is largely
completed with over 250 workers undergoing a two week common core
training program at the University of Guanajuato. Once finished, they will
immediately be assigned to the mining workforce at El Cubo.
"We are delighted with the progress we have made in such a short
time period and that mine conditions were better than we had
expected. We anticipate taking delivery of the majority of required
operating supplies later next week and we began moving non-utilized
underground mining equipment that had been previously stored at
Ocampo during the labour
disruption back to El Cubo."
stated Russell Tremayne, Chief
Operating Officer. He continued, "Additionally, we believe that the
training programs will ultimately foster a work environment that
supports both higher productivity and underpins our dedication to
safety."
On March 28, 2011, the Company
will provide a more definitive timeline on when production will
recommence as well as an updated operational strategy.
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.
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/A, 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, the ability and timing of
recommencing production and exploration activities at El Cubo, the ability to realize operational
and cost efficiencies at El Cubo,
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.
For further information: please visit the Gammon gold website at
http://www.gammongold.com or contact: Rene
Marion, President and CEO, Gammon Gold Inc.,
+1-416-646-3825; Anne Day, Director
of Investor Relations, Gammon Gold Inc., +1-416-646-3825
(GAM. GRS)