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Gammon Gold Inc. ("Gammon") (TSX:GAM.to
- News): Gammon is pleased to
announce that it has successfully completed the first-stage, 2,000 metre drilling program at the Los Jarros
Project in western Chihuahua. The drilling was focused on the Gaby target
where significant near surface mineralization was discovered. The Gaby target
is approximately 22 kilometres southeast of Ocampo and 29 kilometres northwest of Fresnillo
PLC's Orisyvo gold deposit.
Los Jarros, Gaby Target Drilling Highlights
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Four of the five holes drilled
discovered significant mineralization. Some highlights of the new program
include:
- Hole LJ-10-01, 36.0 metres grading 0.68 grams per tonne gold from
42.0 metres depth
- And 60.0 metres grading 0.57 grams per tonne gold from
94.0 metres depth.
- Hole LJ-10-02, 26.6 metres grading 0.69 grams per tonne gold from
14.0 metres depth.
- Hole LJ-10-03, 49.3 meters grading 0.63 grams per tonne gold from
7.6 metres depth
- Including 10.2 metres grading 1.67 grams per tonne gold from
9.2 metres depth.
- Hole LJ-10-04, 5.1 metres grading 15.70 grams per tonne gold and
42 grams per tonne silver, from 45.2 metres depth.
"We are very encouraged by the
mineralization drilled in this initial campaign, as it documents extensive
disseminated gold mineralization as well as locally high-grade gold. The
mineralization occurs in a multi-stage breccia with
alteration typical of high-sulfidation epithermal
systems. This is a large zone still open to expansion of low-grade
disseminated gold mineralization within which are higher grades that warrant
follow up drilling," stated Peter Drobeck, Senior Vice President of Exploration and
Business Development. He continued, "This is an exceptional start to a
reconnaissance drilling program on a property we acquired only five months
ago."
The focus of the initial stage of the
2010 drilling program was on expanding data from historical drilling programs
completed on this project, as well as localized high grades and did not test
past discoveries of structurally-controlled gold along a dome margin located
half a kilometre further to the north.
The Company is planning preliminary
metallurgical tests and more extensive geology to tie in this drill
campaign's breccia discovery to the dome
environment 500 metres to the north before
launching future drilling campaigns.
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 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 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: Los Jarros
- Gaby Target Drilling Results
GAMMON 2010 DRILLING
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Hole From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
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LJ-10-01 0.0 78.0 78.0 0.48 1
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Including 42.0 78.0 36.0 0.68 2
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LJ-10-01 94.0 154.0 60.0 0.57 4
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LJ-10-01 210.0 254.0 44.0 0.34 2
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LJ-10-01 276.0 294.0 18.0 0.26 2
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LJ-10-02 2.0 136.7 134.7 0.37 4
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Including 14.0 40.6 26.6 0.69 5
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LJ-10-02 155.0 207.8 52.8 0.21 2
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LJ-10-02 249.7 254.6 4.9 0.50 2
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LJ-10-03 7.6 56.9 49.3 0.63 1
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Including 9.2 19.3 10.2 1.67 1
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Including 19.3 54.9 35.6 0.36 1
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LJ-10-03 112.7 193.9 81.2 0.28 3
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LJ-10-04 45.2 50.2 5.1 15.70 42
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LJ-10-05 nsv Nsv nsv nsv nsv
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VALDEZ 1999 DRILLING
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Hole From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
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LJ99-01 29.6 63.7 34.1 0.54 0
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LJ99-01A 30.5 63.6 33.1 0.81 0
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Including 32.0 42.7 10.7 1.96 0
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LJ99-02 47.4 76.5 29.1 1.06 0
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Including 53.2 64.0 10.8 2.51 0
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LJ99-03 15.8 20.0 4.2 2.38 1
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LJ99-04 1.5 107.1 105.6 0.56 4
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Including 81.0 107.1 26.1 0.70 0
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LJ99-04 107.1 201.8 94.7 0.33 3
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LJ99-05 108.6 131.1 22.5 0.52 3
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VALDEZ 2009 DRILLING
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Hole From (m) To (m) Length (m) Gold (g/t) Silver (g/t)
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LJ09-01 39.7 45.7 6.0 0.46 1
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LJ09-01 78.7 85.9 7.1 0.66 0
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LJ09-01 94.9 111.9 17.0 0.29 0
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LJ09-03 nsv Nsv nsv nsv nsv
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LJ09-04 nsv Nsv nsv nsv nsv
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LJ09-05 nsv Nsv nsv nsv nsv
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Note: The Los Jarros
information has been reviewed by Qualified Person, Mr. Peter
Drobeck. All sample analyses for Los Jarros drilling were performed by 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 was used at Los Jarros per Company policies. Sample lengths are not
necessarily true widths.
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