Gammon Gold Announces Extension of High-Grade Gold Mineralization at
Guadalupe y Calvo, Santa Eduviges Currently in Ore and Three New High Grade
Underground Discoveries at Ocampo
TSX: GAM / NYSE: GRS / BSX: GL7
HALIFAX, June 30 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that its aggressive 2010 drill program is well under way at Ocampo and Guadalupe y Calvo. Drilling at Guadalupe y Calvo has identified a bonanza grade intercept of 1.1 metres 63.39 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1. At Ocampo and Guadalupe y Calvo the Company has completed 52,681 metres of the planned 75,800 metre 2010 program with new high grade discoveries identified at the Santa Eduviges, Belen, San Amado, Jesus Maria, Maria, Molinas Southwest, Rosario, and the southern extensions of Aventurero targets.
"The Company's exploration program continues to deliver excellent results at both Ocampo and Guadalupe y Calvo where numerous high-grade drill intercepts have been identified at new discoveries during the past two months. At Ocampo we have discovered a new area with multiple veins in the Molinas SW target area, representing an entire new direction to plan future development and mining. Work last year defined excellent potential to the northeast in the San Amado district, and to the SE in the Aventurero and Rosario parts of the district, and the addition of the Molinas SW target shows that the underground mine is open to expansion now to the northwest." stated Peter Drobeck, Senior Vice President of Exploration and Business Development. He continued, "We are also pleased that upon re-initiation of drilling at our Guadalupe y Calvo project, some of the first drill holes have discovered bonanza grade mineralization that would be supportive of underground mining."
"We are particularly pleased with our development progress at Santa Eduviges and the recent surface drilling targeting the Santa Juliana vein structures, where drilling has identified mineralization down to 200 metres, and is still open at depth. Underground development on the Aventurero vein is currently about 275 metres away from the intersection of Aventurero and Santa Juliana.", stated Chris Bostwick, Senior Vice President of Technical Services. He continued, "The Company has re-deployed over thirty pieces of underground mining equipment, including scoop trams, trucks and jumbos from El Cubo and we intend to utilize a portion of this equipment to extend exploration drives for the purpose of advancing the various underground exploration programs. The Company has now engaged Micon International to produce a Preliminary Economic Assessment in the 4th quarter 2010".
Guadalupe y Calvo - Extension of High Grade Mineralization Identified
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The 2010 drilling program at the Guadalupe y Calvo property, located in southern Chihuahua State, was launched in April 2010 and has been focused on extending the known mineralization northwest from the outcropping deposit that was drilled in 2008. The northwest extension is covered by a sequence of post-mineral tuffs typical of the Sierra Madre Occidental. Drilling to date has extended known mineralization by approximately 140 metres further along strike. To date, 6 core holes over 2,514 metres have been completed. Assays received have been highly encouraging and includes a bonanza-grade intercept at Hole GC-0185, with 1.1 metres grading 62.37 grams per tonne gold and 56 grams per tonne silver, or 63.39 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1 (see Table 1). This hole represents extensions of previous drilling completed in 2008 including Hole GC-104, with 1.0 metre grading 5.43 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1, and Hole GC-135, with 1.0 metre grading 17.83 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1. The Company plans to continue step out drilling on this discovery along strike under the post-mineralization rocks. Results show that the Rosario vein continues under cover and locally has high-grade mineralization that could potentially support underground mining.
Ocampo - Exploration Update
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Gammon continues to strategically invest in exploration in the Ocampo district (see Diagram 1 - http://files.newswire.ca/258/Gammon_Diagram1.doc). To date the Company has completed 71%, or 50,167 metres of exploration and definition drilling on the property. The drilling completed has been comprised of 25,828 metres of underground drilling, 909 metres of in-pit drilling and 23,430 metres in surface exploration drilling (see Tables 2 & 3).
Ocampo Underground Exploration Update
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To date, the Company has completed 111 drill holes for 25,828 metres of underground drilling and 1,690 metres of new exploration drifting. The Company presently has four drill rigs working in the underground. The drilling has been focused on the southern Aventurero, Rosario, Maria and San Amado veins in the main NE Underground Mine, and on the Santa Eduviges veins under the open pits. Exploration drifting on the main 1611 level has been focused on the San Amado and SE Aventurero target areas. Significant advances were also made on the Jesus Maria 1820 level, within and below the Las Molinas discovery made last year and the Santa Eduviges 1880 level.
Aventurero
An approximate 2,000 metre definition exploration drilling program was begun at the end of April from one of the new drill stations in the 1611 level Aventurero exploration drift. Aventurero constitutes a large portion of the inferred resources at the Ocampo underground and the opportunity exists to convert significant inferred resources to proven and probable reserves as underground development proceeds southward on the 1611 level to its intersection with the Santa Juliana vein, approximately 275 metres away. Grades encountered along the 1611 vein drive have been up to approximately 56 grams per tonne of gold equivalent using a gold-to-silver ratio of 55:1.
Rosario
Drilling on the Rosario structure continued through May and was focused on defining the lode above the existing 1611 level vein drive and testing below the historic La Zorra mine. High grade intercepts have been encountered in 8 of the 10 holes drilled to date. Four of the most significant intercepts include (see Table 2);
- Hole OU-792, 0.6 metres of 38.90 grams per tonne gold, 1695 grams per
tonne silver, or 69.72 grams per tonne gold equivalent using a gold-to-
silver ratio of 55:1
- Hole OU-800, 1.5 metres of 3.55 grams per tonne gold, 352 grams per
tonne silver, or 9.96 grams per tonne gold equivalent using a gold-to-
silver ratio of 55:1
- Hole OU-801, 0.8 metres of 11.35 grams per tonne gold, 621 grams per
tonne silver, or 22.64 grams per tonne gold equivalent using a gold-to-
silver ratio of 55:1
- Hole OU-803, 1.2 metres of 13.81 grams per tonne gold, 740 grams per
tonne silver, or 27.26 grams per tonne gold equivalent using a gold-to-
silver ratio of 55:1
Santa Eduviges
Drilling in the Santa Eduviges mine resumed in May with a planned 2,000 metre program designed to follow up on high grade intercepts along the possible extension of the Veta Libre structure, as well as to extend the current development on Vein 1. Previously disclosed intercepts at Veta Libre results included Hole OU-743 with 5.9 metres at 5.81 grams per tonne gold and 80 grams per tonne of silver or 7.26 grams per tonne of gold equivalent using a gold-to-silver ratio of 55:1 and Hole OU-739 with 3.9 metres at 7.13 grams per tonne of gold and 100 grams per tonne of silver or 8.94 grams per tonne of gold equivalent at a gold-to-silver ratio of 55:1 and Hole OU-741 with 1.0 metre at 14.25 grams per tonne of gold and 148 grams per tonne of silver, or 16.94 grams per tonne of gold equivalent at a gold-to-silver ratio of 55:1.
The Santa Eduviges development decision was based on the Vein 1 mine plan and did not include assay results of Hole OU-743 that included 4.7 metres at 35.12 grams per tonne of gold and 383 grams per tonnes of silver or 42.09 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1, as they were not available at the time of the mine design. This intercept extends the likely economic limits of the lower portion of Vein 1 by approximately 32 metres downward and 56 metres along strike. The first hole in the present program tested beneath both intercepts of OU-743 along the same azimuth and assay results are pending.
Since March 2010, 775 metres of mine development has been completed at Santa Eduviges, with the access ramp being deepened and development proceeding through ore on Vein 1. By the end of 2010, ore production is expected to reach a nominal rate of 250 tonnes per day that will increase to 500 tonnes per day in 2011.
Ocampo Surface Exploration
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The Company has continued an aggressive surface exploration program at Ocampo that includes a staff of 12 surface geologists working on combined target generation, drilling supervision and logging. To date the Company has completed 101 core holes for 23,430 metres in surface drilling at Ocampo, or 69% of the 35,500 metre 2010 plan. The Company presently has five surface drill rigs on site and plans to continue to drill aggressively to identify new resources and expanding existing reserves. One of the drill rigs is being moved into the Picacho - Candelaria target to follow up on previously-released results from Hole OG-886 which cut 5.8 metres grading 9.01 grams per tonne gold and 309 grams per tonne silver, or 14.63 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1 and is located 30 metres below the planned bottom of the Picacho Pit.
At Ocampo, surface drilling in the past two months has discovered additional high-grade mineralization in the Santa Juliana Vein, which is currently being drilled off to 25 x 25 metre centers for reserve estimation. In addition, the program has made a new discovery of high-grade mineralization in an unnamed vein 200 metres east of the Santa Juliana Vein. Drilling has also discovered numerous high-grade occurrences in the Molinas SW area, which is located just west of the mill and has discovered new mineralization 170 metres west of previously discovered mineralization.
Santa Juliana
The Santa Juliana Vein was mined extensively in the past and was known as one of the highest-grade veins in the district. This northeast-striking vein is sub-parallel to the San Juan Vein in the Company's active NE Underground Mine where 22 drill holes have been completed for 5,551 metres of drilling to date. Assay results have been received for 16 of these holes with nine holes demonstrating grades within the Santa Juliana Vein that are in excess of present underground cut-off grades. To date, the best result has been Hole OG-969 with 3.3 metres grading 11.47 grams per tonne gold and 1,225 grams per tonne silver, or 33.75 grams per tonne gold equivalent using a gold-to-silver cutoff grade of 55:1. (see Table 3)
The drilling has defined two mineralized shoots with approximate dimensions of 200 metres vertical (from 1,675 to 1,470 metres elevation) and both with 70 metres of strike length that are open to expansion at depth. Underground workings on the 1611 level area have advanced to within 275 metres of the main Santa Juliana vein. The drilling has also discovered a new unnamed zone of mineralization 200 metres east of Santa Juliana that strikes north-south parallel to the Belen-San Jose vein system further west. The first hole, Hole OG-981, reported 1.1 metres grading 7.98 grams per tonne gold and 1,490 grams per tonne silver, or 35.07 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1. This is a virgin discovery that is open to expansion in all directions.
Las Molinas SW
The Company announced the new discovery of significant mineralization on this target previously and continued drilling has discovered numerous high-grade and anomalous intercepts. This target area lies immediately west of the Ocampo mill facility and the drill intercepts to date fall mostly within the 1,700 to 1,850 metre elevations, well above the major levels of the mine at 1,547 metre, 1,611 metre and 1,675 metre elevations, but only 160 metres from the existing infrastructure on the 1,740 metre level. The highest-elevation, high-grade intercept has been in Hole OG-952 with 1.4 metres grading 10.22 grams per tonne gold and 82 grams per tonne silver, or 11.72 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1, at an elevation of 1,848 metres. As many of the veins in the NE Underground mine are productive down to the 1,500 metre elevation, intercepts such as these suggest the potential for more than 300 metre vertical interval of mineralization that might be mined from nearby underground infrastructure.
Santa Librada Target Drilling
A drilling program was launched at the Santa Librada discovery target in the latter part of 2009. As a result of mapping and a review for potential target geometry, a subsequent drilling program was re-initiated in late April of 2010. The Company has completed 13 new drill holes for 2,855 metres in 2010 and to date, has received results for 12 holes. Anomalous results were received in eight of these drill holes with the best result to date being Hole OG-975 with 12.1 metres grading 1.53 grams per tonne gold and 89 grams per tonne silver, or 3.16 grams per tonne gold equivalent using a gold-to-silver ratio of 55:1, located approximately 130 metres west and along strike of the previously-announced discovery. In addition, hole OG-971 had 9.1 metres at 1.56 grams per tonne gold equivalent and hole OG-976 cut 1.4 metres at 4.41 grams per tonne gold equivalent. In addition Gammon has drilled a second, mineralized stockwork zone at Santa Librada. This zone has 170 metres of known strike extent and is open at depth. Drilled widths up to 8 metres thick were intersected. The drilling cut only the top of the mineralized system, which is not exposed on the surface and has no known underground workings. The Company is planning follow-up work on this potential open pit deposit as soon as all results are received.
Growing Portfolio of Properties
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While the Company continues to dedicate most of its exploration resources to its established projects at Ocampo and Guadalupe y Calvo, the Company's portfolio of properties has been significantly enhanced through the addition of three new prospective exploration properties in Mexico. The Company has expanded its land position in the Ocampo - Pinos Altos area by 390% to 59,973 hectares through separate option agreements to acquire the Venus and Los Jarros properties located directly north and east of the Ocampo and Pinos Altos properties. The Company also recently announced the completion of an option agreement to acquire the Mezquite Project in Zacatecas, Mexico.
Mezquite Project Exploration Update
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The Mezquite Project, in Zacatecas State, covers 460 hectares and is located 45 kilometres southeast of Goldcorp's Penasquito property and 22 kilometres northeast of Camino Rojo, which was recently acquired by Goldcorp. The property lies on a 70 kilometre belt with over 27.4 million ounces of gold and 1,611 million ounces of silver, or approximately 57 million gold equivalent ounces at a gold-to-silver ratio of 55:1, in published reserves and resources in all categories.
During the past two months the company has completed a ground magnetic survey and a dipole-dipole induced polarization (IP) survey at the Mezquite Project in Zacatecas. The results, interpreted in 3 dimensions, show a distinct magnetic body near the center of the claim, with a halo of high IP chargeability response partly within as well as outside the magnetic body. The target, as presently conceived, is approximately 500 metres in diameter. Drill permits are under application for this project and the Company plans to initiate drilling in the third quarter.
Venus Project
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On May 6, 2010 the Company announced that it entered into an option agreement for a 4,491 hectare block of claims north of the Ocampo Mine known as the Venus property, from Mexicana de Cobre, S.A. de C.V. (an operating subsidiary of Grupo México, S.A. de C.V. ). This option agreement significantly increased Gammon's land position in the prolific Ocampo and Pinos Altos belts, and could also host extensions of the Pinos Altos trend. Field mapping and sampling identified several targets for immediate follow up. A field program is currently underway to delineate targets for upcoming drilling. (see Diagram 2 - http://files.newswire.ca/258/Diagram_2.doc)
Los Jarros Project
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On June 18, 2010 the Company announced that it had executed a binding Letter of Intent that will give Gammon the option to acquire the 43,229 hectare block of mineral concessions called the "Los Jarros" Properties from Valdez Gold Inc. The claims are contiguous to the Ocampo land package on the north and east, surround the Pinos Altos properties of Agnico-Eagle Mines Ltd., and cover regional structural extensions of the Concheno properties of Frisco Mining. Past work by Valdez Gold Inc. has identified a high-sulfidation epithermal gold prospect in the southern portion of the properties as well, between the Candamena gold-silver district, and the Orisyvo project of Fresnillo PLC (see Diagram 2 - http://files.newswire.ca/258/Diagram_2.doc).
Note: The Ocampo surface exploration information has been reviewed by
Qualified Person, Mr. Peter Drobeck. All sample analyses for Ocampo were
performed by Chemex Laboratories, based in Vancouver, British Columbia,
or in the Ocampo mine lab, using standard fire assay procedures. True
widths have not been calculated.
Note: The Ocampo underground exploration information has been reviewed by
Qualified Person, Mr. Ian Hardesty. All sample analyses for Ocampo were
performed by Chemex Laboratories, based in Vancouver, British Columbia,
or in the Ocampo mine lab, using standard fire assay procedures. True
widths have not been calculated.
Note: The Guadalupe y Calvo exploration information has been reviewed by
Qualified Person, Mr. Peter Drobeck. All sample analyses for Guadalupe y
Calvo were performed by SGS Laboratories, based in Mississauga, Ontario,
using standard fire assay procedures (and with ICP finish for samples
completed at SGS). True widths have not been calculated.
This press release sets out the gold and silver grades found in the samples taken from various targets. Not all of these targets have been categorized as a mineral resource deposit under applicable Canadian mineral resource reporting standards, and it is uncertain if further exploration will result in these targets being delineated as mineral resources. The grades encountered so far should not be taken as representative of the mineralization in question as there has been insufficient exploration to define a mineral resource, and such grades may not prove representative of the deposits if and when the same are delineated as mineral resources. Gold equivalent grades as stated assume a metallurgical recovery of 100%.
About Gammon Gold
Gammon 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 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, Nova Scotia with an Executive Office in Toronto, Ontario.
Cautionary Statement
Cautionary 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 their filings with the SEC. US Investors are urged to consider closely the disclosure in Gammon Gold's Annual Report on Form 40-F/A, which may be secured from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "forecast", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding its financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices,, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of completion of the Ocampo expansion program and improvements to the heap leach pad, costs and timing of the development and commencement of production of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated 2010 results, operating performance projections for 2009 and 2010, our ability to fully fund our business model internally, 2010 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, the ability to access grid power at Ocampo, further reduction in the open pit stripping ratio and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Company's loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
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Table 1: Guadalupe y Calvo Drill Results
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Gold
Eq.
Hole From To Length Gold Silver (55) Target
(m) (g/t) (g/t) (g/t)
GC-0182 166.4 167.7 1.3 0.14 10 0.32 Rosario
GC-0182 170.1 176.0 5.9 0.52 26 0.99 Rosario
GC-0182 172.0 176.0 4.0 0.64 32 1.22 Rosario
GC-0182 186.0 189.0 3.0 0.13 9 0.30 Rosario
GC-0182 195.1 198.0 2.9 0.37 7 0.49 Rosario
GC-0182 224.0 227.0 3.0 0.20 10 0.38 Rosario
GC-0183 167.8 179.5 11.8 0.31 18 0.69 Rosario
Including 173.7 175.1 1.4 1.43 57 2.46 Rosario
GC-0183 181.1 183.7 2.6 0.21 11 0.42 Rosario
GC-0183 184.8 187.0 2.2 0.35 20 0.71 Rosario
Including 185.9 187.0 1.1 0.51 32 1.09 Rosario
GC-0183 189.8 191.3 1.5 0.95 1 0.97 Rosario
GC-0183 207.4 215.4 8.0 1.85 34 2.47 Rosario
Including 214.4 215.4 1.0 11.45 21 11.83 Rosario
GC-0183 259.6 261.8 2.2 0.59 7 0.72 Rosario
GC-0185 386.6 387.7 1.1 62.37 56 63.39 Rosario
GC-0185 387.7 398.8 11.1 0.21 20 0.58 Rosario
GC-0185 401.8 403.3 1.5 0.10 12 0.32 Rosario
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Note: The Guadalupe y Calvo exploration information has been reviewed by
Qualified Person, Mr. Peter Drobeck. All sample analyses for Guadalupe y
Calvo were performed by SGS Laboratories, based in Mississauga, Ontario,
using standard fire assay procedures (and with ICP finish for samples
completed at SGS). True widths have not been calculated.
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Table 2: Ocampo Underground Drill Results
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Gold
Hole From To Length Gold Silver Eq.(55) Target
(m) (g/t) (g/t) (g/t)
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*OU-739 63.1 67.0 3.9 7.13 100 8.94 Santa Eduviges
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*OU-739 197.0 198.2 1.2 4.47 65 5.65 Santa Eduviges
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*OU-741 64.5 65.5 1.0 14.25 148 16.94 Santa Eduviges
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*OU-741 201.7 202.2 0.5 1.15 59 2.22 Santa Eduviges
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*OU-742 189.8 190.3 0.5 1.71 91 3.36 Santa Eduviges
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*OU-742 193.5 194.7 1.2 3.63 4 3.69 Santa Eduviges
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*OU-743 78.6 84.5 5.9 5.81 80 7.26 Santa Eduviges
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*OU-743 198.5 203.2 4.7 35.12 383 42.09 Santa Eduviges
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*OU-744 135.2 142.8 7.7 1.01 108 2.97 Belen
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*OU-746 64.0 67.0 3.0 1.47 107 3.41 Belen
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*OU-746 125.3 125.9 0.6 2.41 158 5.28 Belen
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*OU-747 147.9 150.3 2.5 6.22 444 14.29 Belen
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*OU-748 171.7 173.9 2.2 0.44 142 3.01 Belen
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*OU-750 53.4 57.0 3.6 2.39 243 6.80 Belen
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*OU-750 155.9 158.0 2.2 3.54 404 10.89 Belen
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*OU-751 49.0 50.0 1.0 3.61 26 4.08 Belen
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*OU-755 101.0 102.2 1.3 2.86 51 3.79 Esperanza
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*OU-764 80.20 86.40 6.2 3.03 162 5.97 San Amado
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*OU-765 92.45 94.40 2.0 6.68 727 19.89 San Amado
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*OU-766 73.00 74.00 1.0 1.25 68 2.49 San Amado
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*OU-766 80.40 80.90 0.5 2.18 130 4.54 San Amado
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*OU-767 78.60 79.40 0.8 5.06 144 7.68 San Amado
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*OU-767 100.50 101.25 0.8 1.10 82 2.59 San Amado
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*OU-768 77.00 82.90 5.9 2.60 160 5.51 San Amado
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*OU-773 138.40 139.20 0.8 2.94 471 11.50 Belen
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*OU-773 145.85 146.60 0.8 4.67 57 5.70 Belen
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*OU-775 130.10 133.70 3.6 1.51 96 3.26 Belen
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*OU-776 45.00 45.90 0.9 1.12 94 2.82 Belen
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*OU--776 183.40 186.55 3.2 1.75 156 4.59 Belen
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OU-780 108.50 109.10 0.6 2.71 244 7.15 San Amado
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OU-782 92.80 94.40 1.6 5.04 233 9.28 San Amado
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OU-782 98.45 99.45 1.0 1.20 66 2.40 San Amado
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OU-782 102.60 103.10 0.5 4.16 321 10.00 San Amado
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OU-785 90.80 91.30 0.5 0.75 16 1.04 San Amado
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OU-790 198.00 198.50 0.5 2.97 256 7.62 Rosario
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OU-790 205.50 207.00 1.5 0.54 94 2.25 Rosario
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OU-791 162.00 163.00 1.0 0.69 65 1.86 Rosario
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OU-792 180.80 181.55 0.8 1.25 50 2.17 Rosario
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OU-792 189.65 190.15 0.5 1.72 71 3.00 Rosario
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OU-792 198.05 198.65 0.6 38.90 1695 69.72 Rosario
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OU-792 236.05 237.50 1.4 1.66 102 3.51 Rosario
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OU-793 171.00 174.20 3.2 1.82 104 3.72 Rosario
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OU-796 185.25 186.40 1.2 1.79 46 2.63 Rosario
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OU-796 187.85 188.35 0.5 1.51 77 2.90 Rosario
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OU-796 193.60 194.10 0.5 5.73 155 8.55 Rosario
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OU-796 201.80 202.80 1.0 3.00 17 3.31 Rosario
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OU-799 158.70 160.25 1.6 2.47 64 3.63 Rosario
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OU-800 225.00 226.50 1.5 3.55 352 9.96 Rosario
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OU-801 210.25 211.00 0.8 11.35 621 22.64 Rosario
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OU-803 182.60 183.80 1.2 13.81 740 27.26 Rosario
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OU-810 181.82 183.82 2.0 0.86 107 2.80 Aventurero
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OU-811 175.89 176.95 1.1 1.78 65 2.95 Aventurero
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OU-813 169.3 170.85 1.55 0.41 39 1.13 Aventurero
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* Indicates previously released drill results
Note: The Ocampo underground exploration information has been reviewed
by Qualified Person, Mr. Ian Hardesty. All sample analyses for Ocampo
were performed by Chemex Laboratories, based in Vancouver, British
Columbia, or in the Ocampo mine lab, using standard fire assay
procedures. True widths have not been calculated.
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Table 3: Ocampo Surface Drill Results
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Gold
Hole From To Length Gold Silver Eq.(55) Target
(m) (g/t) (g/t) (g/t)
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*OG-901 64.5 65.7 1.2 1.07 4 1.13 Molinas SW
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*OG-901 69.1 70.4 1.3 0.55 2 0.59 Molinas SW
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*OG-904 31.5 34.5 3.0 4.25 153 7.04 Molinas SW
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*OG-904 35.5 36.8 1.3 1.10 1 1.12 Molinas SW
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*OG-904 87.5 88.0 0.5 9.24 426 16.99 Molinas SW
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*OG-908 29.7 33.4 3.7 0.55 5 0.64 Molinas SW
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*OG-908 53.0 54.0 1.0 2.85 52 3.80 Molinas SW
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*OG-908 139.2 141.4 2.3 0.55 1 0.58 Molinas SW
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*OG-910 36.0 43.8 7.8 1.95 43 2.74 Molinas SW
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*OG-910 163.5 179.0 15.5 0.30 7 0.43 Molinas SW
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*OG-926 117.0 118.5 1.5 4.89 608 15.94 Sta Juliana
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*OG-926 118.5 120.2 1.8 0.14 19 0.49 Sta Juliana
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*OG-928 106.6 111.7 5.1 0.85 97 2.60 Sta Juliana
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*OG-931 174.0 175.1 1.1 0.97 161 3.90 Sta Juliana
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*OG-934 167.7 172.0 4.3 0.20 41 0.95 Sta Juliana
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*OG-934 174.0 176.4 2.3 0.87 139 3.41 Sta Juliana
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*OG-938 38.0 40.0 2.0 0.70 114 2.76 Sta Juliana
-------------------------------------------------------------------------
*OG-938 42.0 43.6 1.6 0.12 27 0.61 Sta Juliana
-------------------------------------------------------------------------
OG-940 49.4 49.9 0.5 0.64 2 0.68 Sta Juliana
-------------------------------------------------------------------------
OG-952 35.7 37.0 1.4 10.22 82 11.72 Molinas SW
-------------------------------------------------------------------------
OG-952 70.2 70.8 0.5 33.80 323 39.67 Molinas SW
-------------------------------------------------------------------------
OG-952 97.6 98.2 0.6 2.37 0 2.37 Molinas SW
-------------------------------------------------------------------------
OG-953 253.2 254.2 1.0 0.54 40 1.27 Sta Juliana
-------------------------------------------------------------------------
OG-955 56.8 57.2 0.5 0.55 25 1.00 Molinas SW
-------------------------------------------------------------------------
OG-955 110.5 111.6 1.1 1.01 8 1.15 Molinas SW
-------------------------------------------------------------------------
OG-955 133.4 135.9 2.6 0.68 10 0.87 Molinas SW
-------------------------------------------------------------------------
OG-956 36.7 40.7 4.0 0.70 4 0.76 Santa Librada
-------------------------------------------------------------------------
OG-957 57.4 59.1 1.7 12.79 42 13.55 Molinas SW
-------------------------------------------------------------------------
OG-958 320.5 322.2 1.7 1.10 114 3.18 Sta Juliana
-------------------------------------------------------------------------
OG-959 63.3 64.2 0.9 2.54 181 5.83 Santa Librada
-------------------------------------------------------------------------
OG-960 137.3 137.7 0.4 6.34 32 6.92 Molinas SW
-------------------------------------------------------------------------
OG-962 31.9 33.9 2.0 0.72 3 0.77 Molinas SW
-------------------------------------------------------------------------
OG-962 67.8 69.3 1.5 1.95 14 2.20 Molinas SW
-------------------------------------------------------------------------
OG-963 80.8 82.7 2.0 0.60 8 0.75 Santa Librada
-------------------------------------------------------------------------
OG-964 163.9 164.4 0.5 0.87 6 0.98 Molinas SW
-------------------------------------------------------------------------
OG-964 168.9 169.4 0.5 0.49 36 1.14 Molinas SW
-------------------------------------------------------------------------
OG-965 13.3 13.8 0.5 0.70 18 1.03 Sta Juliana
-------------------------------------------------------------------------
OG-965 65.3 65.8 0.5 0.69 10 0.87 Sta Juliana
-------------------------------------------------------------------------
OG-966 13.3 13.8 0.5 0.70 18 1.03 Molinas SW
-------------------------------------------------------------------------
OG-966 65.3 65.8 0.5 0.69 10 0.87 Molinas SW
-------------------------------------------------------------------------
OG-967 106.8 107.3 0.5 0.68 2 0.71 Santa Librada
-------------------------------------------------------------------------
OG-968 69.7 74.2 4.6 0.32 2 0.35 Molinas SW
-------------------------------------------------------------------------
OG-968 78.3 80.0 1.7 1.07 8 1.22 Molinas SW
-------------------------------------------------------------------------
OG-968 106.5 107.1 0.5 0.59 1 0.61 Molinas SW
-------------------------------------------------------------------------
OG-969 246.6 249.9 3.3 11.47 1225 33.75 Sta Juliana
-------------------------------------------------------------------------
OG-969 253.6 259.0 5.4 0.52 58 1.57 Sta Juliana
-------------------------------------------------------------------------
OG-970 67.4 67.9 0.5 1.21 52 2.16 Molinas SW
-------------------------------------------------------------------------
OG-970 96.3 99.8 3.5 0.41 4 0.49 Molinas SW
-------------------------------------------------------------------------
OG-970 102.9 104.9 2.0 2.76 0 2.76 Molinas SW
-------------------------------------------------------------------------
OG-970 112.6 115.1 2.5 0.58 13 0.81 Molinas SW
-------------------------------------------------------------------------
OG-970 127.6 128.4 0.8 0.47 31 1.03 Molinas SW
-------------------------------------------------------------------------
OG-971 72.8 81.9 9.1 0.96 33 1.56 Santa Librada
-------------------------------------------------------------------------
OG-972 35.8 38.4 2.6 0.45 5 0.54 AVENTURERO
-------------------------------------------------------------------------
OG-972 43.0 46.1 3.2 0.79 22 1.19 AVENTURERO
-------------------------------------------------------------------------
OG-972 150.1 150.6 0.5 11.55 449 19.71 Sta Juliana
-------------------------------------------------------------------------
OG-973 66.3 72.4 6.1 0.31 9 0.47 Molinas SW
-------------------------------------------------------------------------
OG-973 81.3 83.1 1.8 0.85 3 0.90 Molinas SW
-------------------------------------------------------------------------
OG-973 97.8 106.0 8.2 0.56 3 0.60 Molinas SW
-------------------------------------------------------------------------
OG-974 42.5 45.8 3.3 0.45 9 0.61 AVENTURERO
-------------------------------------------------------------------------
OG-975 91.0 103.1 12.1 1.53 89 3.16 Santa Librada
-------------------------------------------------------------------------
OG-976 142.5 143.9 1.4 4.28 7 4.41 Santa Librada
-------------------------------------------------------------------------
OG-978 281.9 284.9 3.0 1.26 201 4.91 Sta Juliana
-------------------------------------------------------------------------
OG-981 96.8 97.8 1.1 7.98 1490 35.07 Sta Juliana
Alto
-------------------------------------------------------------------------
OG-982 74.4 75.7 1.3 0.25 62 1.38 Santa Librada
-------------------------------------------------------------------------
OG-984 41.9 49.2 7.3 0.59 57 1.63 Molinas SW
-------------------------------------------------------------------------
OG-986 74.1 74.6 0.5 0.74 0 0.74 Molinas SW
-------------------------------------------------------------------------
OG-986 79.7 80.4 0.7 0.90 0 0.90 Molinas SW
-------------------------------------------------------------------------
OG-986 80.4 82.0 1.6 5.23 58 6.30 Molinas SW
-------------------------------------------------------------------------
OG-986 82.0 86.3 4.3 0.73 13 0.97 Molinas SW
-------------------------------------------------------------------------
* Indicates previously released drill results
-------------------------------------------------------------------------
Note: The Ocampo surface exploration information has been reviewed by
Qualified Person, Mr. Peter Drobeck. All sample analyses for Ocampo were
performed by Chemex Laboratories, based in Vancouver, British Columbia,
or in the Ocampo mine lab, using standard fire assay procedures. True
widths have not been calculated.
For further information: visit the Gammon gold website at www.gammongold.com or contact: Peter Drobeck, Sr. VP Exploration & Business Development, Gammon Gold Inc., 416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., 902-468-0614
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