Business
Gammon Gold Provides Updated Ocampo Production and Cash Cost Outlook for 2010
Gammon Gold Provides Updated Ocampo Production and Cash Cost Outlook for 2010
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\n Jun. 28, 2010 (Canada NewsWire Group) -- TSX: GAM / NYSE: GRS / BSX: GL7\n\n Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): announces that due to the suspension of operations at the El Cubo mine located in Guanajuato State, Mexico, it is providing an updated 2010 production and cash cost outlook for the Ocampo mine. This adjusted outlook has assumed that the 154 contract workers and key pieces of underground mining equipment recently re-deployed from El Cubo will be supporting expanded operations at Ocampo to the end of the year.\nIn 2010, at Ocampo, the Company expects to produce 100,000 to 110,000 ounces of gold and 4.40 to 4.95 million ounces of silver, or 180,000 to 200,000 gold equivalent ounces, using a gold-to-silver ratio of 55:1. Total cash costs for 2010 are expected to be $425 to $450 per gold equivalent ounce using the same gold-to-silver ratio of 55:1.\nProduction from Ocampo for the remainder of 2010 will be supported by:\n\n\n >\n\n\n"Operations at Ocampo continue to stabilize at targeted levels and the redeployment of our top contract workers and equipment from El Cubo will provide immediate and supplemental operational support to Ocampo. This expanded operating team will allow us to accelerate development of our new discoveries at Santa Eduviges, Belen and our many other promising targets" stated René Marion, President & Chief Executive Officer of Gammon Gold. "Management's focus for the balance of the year will be on expanding productivity at our Ocampo mine as well as bringing new discoveries into production in 2011 and the acceleration of exploration programs at our properties."\n\nAbout Gammon Gold\n\nGammon Gold Inc. is a 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 owns the El Cubo mine in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State. The Company recently completed option purchase agreements to acquire the Mezquite Project in Zacatecas State, Mexico and the Venus Project located north of the Ocampo mine in Chihuahua State, Mexico. It also has recently signed a Letter of Intent to acquire the Los Jarros Project in Chihuahua State, Mexico. The Company is based in Halifax, N...