Business
Gammon Reports Third Quarter and Key Updates on Operations and Confirms Guidance for 2009
Gammon Reports Third Quarter and Key Updates on Operations and Confirms Guidance for 2009
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nOct. 6, 2009 (Canada NewsWire Group) -- HALIFAX, Oct. 6 /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS): Gammon is pleased to provide an update on operations following the full commissioning of the Ocampo capital expansion program. The expansion program and final commissioning was largely completed in the latter half of the third quarter and has resulted in month over month improvements in our key business performance indicators:-------------------------------------------------------------------------Ocampo Mine (100%) Jul-09 Aug-09 Sep-09------------------ ------ ------ --------------------------------------------------------------------------------Underground - Average oretonnes per day 488 577 676-------------------------------------------------------------------------Open Pit - Average totaltonnes per day 93,507 97,061 98,677-------------------------------------------------------------------------Mill - Average ore tonnesper day 2,299 2,515 3,046-------------------------------------------------------------------------Heap Leach - Average oretonnes per day 4,101 6,934 7,399-------------------------------------------------------------------------Average heap leach goldequivalent oz. per day(55:1) 129 125 179-------------------------------------------------------------------------Average mill goldequivalent oz per day(55) 261 294 394-------------------------------------------------------------------------Total average goldequivalent oz. per day(55:1) 390 419 573-------------------------------------------------------------------------Q4 Forecast-----------During the fourth quarter the Company is expecting to produceapproximately 80,000 gold equivalent ounces at cash costs of US$380 to US$400per gold equivalent ounce. The fourth quarter is expected to be the firstquarter where Ocampo begins to realize the impact on production from thecapital expansion program through:- During the first four days of October, the Company has produced anaverage of 1,037 gold equivalent (55:1) ounces per day;- The continued ramp up of the Ocampo underground, which is expected toreach targeted levels of 1,200 tonnes per day by the end of the year;- The commissioned Phase III expansion of the Ocampo mill processingfacility which should allow the Company to increase capacity over thefourth quarter;- As a result of the increased ton...