Business
Gammon Gold Announces the Renewal of the Penoles Lease Agreement
Gammon Gold Announces the Renewal of the Penoles Lease Agreement
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nOct. 1, 2009 (Canada NewsWire Group) -- HALIFAX, Oct. 1 /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS) announces that it has successfully renewed the Penoles Lease Agreement for an additional three-year term. The Penoles Lease Agreement provides Gammon with the mining rights and use of the Las Torres processing and administration facilities located at Gammon's El Cubo Mine. In 2008, all processing and administration at our El Cubo mine was consolidated to the lower cost, higher capacity Las Torres mill.The renewal of the Penoles lease, combined with the adoption of a 7-day continuous work schedule will allow Gammon to continue to benefit from the enhanced economics of the Las Torres mill. As the Company drives improved productivities at its El Cubo operations it can leverage the additional processing capacity available at Las Torres.\"We are pleased that we have been able to renew the lease of the Las Torres mill as it allows our El Cubo operations to benefit from the lower processing costs while we gain the operational benefits from our new continuous work schedule.\" stated René Marion, Chief Executive Officer of Gammon Gold. He continued, \"As we gain additional production at our El Cubo mine, we will be able to process this ore at Las Torres. The renewal of this lease now provides Gammon with the flexibility to consider moving the other El Cubo mills that are currently on care and maintenance to our Guadalupe y Calvo exploration property as an accelerated development strategy\"About Gammon GoldGammon Gold Inc. is a Nova Scotia based mid-tier gold and silver producer with properties in Mexico. The Company's flagship Ocampo Project in Chihuahua State achieved commercial production in January 2007. Gammon Gold also operates its El Cubo operation in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State.Cautionary StatementCautionary 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 th...