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Gammon Continues Production Ramp-up During Third Quarter, Production Increases 10%
Gammon Continues Production Ramp-up During Third Quarter, Production Increases 10%
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\nGammon Continues Production Ramp-up During Third Quarter, Production Increases 10%\n\n\n Oct. 12, 2010 (Newsfile Corp.) -- Toronto, Ontario--(October 12, 2010) - Gammon Gold Inc. (“Gammon”)(TSX:GAM and NYSE:GRS): is pleased to provide preliminary third quarter results for its Ocampo mine where production increased by 10% over the prior quarterly production result. All figures reported are in U.S. dollars unless otherwise indicated. The benefits of the strategic capital program completed over the past two years are evident in the quarter over quarter improvements reported at the Ocampo mine. Despite heavy seasonal rainfalls in the third quarter, the mine reported increased productivity and reduced cash costs as the capital program and the strong operating team has mitigated the impact on mining operations. Based on the positive momentum achieved at Ocampo, the Company confirms that it expects to achieve its production and cash cost guidance for 2010. Ocampo Key Performance Metrics – Third Quarter 2010 Percent Change Production Q1-2010 Q2-2010 Q3-2010 Q3 vs.Q1 Q3 vs.Q2 Gold Ounces Produced 21,855 24,963 27,018 24% 8% Silver Ounces Produced 960,817 1,066,998 1,189,769 24% 12% Gold Equivalency Rate (Realized) 66 65 64 -3% -1% Gold Eq. Ounces Produced (Realized) 36,546 41,362 45,520 24% 10% Gold Eq. Ounces Produced (55:1)(2) 39,325 44,363 48,650 24% 10% Total Cash Costs Q1-2010 Q2-2010 Q3-2010 Q3 vs.Q1 Q3 vs.Q2 Cash Costs per Gold Eq. Ounce (Realized)(1) $ 458 $ 461 $ 443 -3% -4% Cash Costs per Gold Eq. Ounce (55:1)(1)(2) $ 423 $ 430 $ 414 -2% -4% (1) Cash costs for the third quarter 2010 have not been finalized and are subject to adjustment (2) Comparative performance metrics using the Company’s long term gold equivalency guidance ratio (55:1) “We continue to report solid traction from Ocampo which is consistently operating to plan design. Moreover, we are now starting to see opportunities from new discoveries that will underpin the long term potential of this asset.” stated René Marion, President and Chief Executive Officer. He continued, “While we experienced the most severe rainy season since 2006, our operating practices and expansion programs commissioned over the past two years have allowed our operating team to continue reporting increased production and reduced operatin...