Business
Gammon Reports Strong Production Performance with Ocampo and El Cubo Underground Production Exceeding Targeted Levels
Gammon Reports Strong Production Performance with Ocampo and El Cubo Underground Production Excee...
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nJan. 13, 2010 (Canada NewsWire Group) -- HALIFAX, Jan. 13 /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS): Gammon is pleased to provide preliminary fourth quarter results as well as an update on operations:Q4 and Key Operational Highlights---------------------------------- Consolidated production in the fourth quarter represented the bestquarterly performance in 2009. Consolidated gold production for thequarter was 37,066 ounces, an increase of 5,529 ounces (18%) over theprevious quarter. Consolidated silver production for the quarter was1,481,773 ounces, an increase of 216,128 ounces (17%) over the previousquarter.- Using a 55:1 gold equivalent ratio, gold equivalent production was64,007 ounces, an increase of 9,459 ounces (17%) over the previousquarter. Using the realized gold equivalent ratio for the quarter of62:1, gold equivalent production was 60,921 ounces, an increase of9,874 ounces (19%), over the previous quarter.- Using a 55:1 gold equivalent ratio, total cash costs per ounce in thefourth quarter decreased by 10% as compared to the previous quarter.Using the realized gold equivalent ratio of 62:1 for the quarter, totalcash costs were $444, a decrease of $56 per ounce (11%), over theprevious quarter.- The significant improvement in operating costs was achieved despitethe impact of non-recurring maintenance costs at the Ocampo millprocessing facility and primary crushing circuit. These highermaintenance costs have been partially offset by the Ocampo mine'saccess to lower cost 20MW of grid power.- At Ocampo, the planned reinvestment and reorganization program in theunderground operation has facilitated a significant increase inproduction volume. By the end of the year, production from theunderground averaged 1,434 tonnes per day in the month of December,exceeding the Company's year-end target of 1,200 tonnes per day by234 tonnes per day (20%). The average month over month production ratesduring the quarter were as follows:- October: 650 tonnes per day- November: 1,235 tonnes per day- December: 1,434 tonnes per day, representing a 20% increase overthe targeted 1,200 tonnes per day rate- The underground reinvestment program at Ocampo strongly positionsfuture production sequencing such that at quarter end, the mine wasactively producing from 11 working areas which compares to 2-3 workingareas at the be...