TORONTO, April 6, 2011 /PRNewswire-FirstCall/ -- Gammon
Gold Inc. ("Gammon") (TSX: GAM) (NYSE: GRS): Gammon is pleased to
announce that a new discovery of high-grade gold-silver
mineralization in the La Balleza Vein in the north-central portion
of the Venus property.
Venus Project Drilling Highlights
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Highlights from the 12 holes for which assays have been received
include:
- VEN-009, 0.7 metres grading 62.20 grams per tonne gold and
2,700 grams per tonne silver, or 111.29 grams per tonne gold
equivalent(1).
- VEN-004, 0.6 metres grading 8.58 grams per tonne gold and
1,050 grams per tonne silver, or 27.67 grams per tonne gold
equivalent(1).
(1) Using the Company's long-term gold equivalency ratio of 55:1
(which assumes 100% metallurgical recoveries and royalties for gold
and silver).
"We are very encouraged by the early drilling results our Venus
Project, which lies three kilometres directly north of the Ocampo
Mine Properties. The surface work completed to date has shown that
there are multiple veins outcropping with locally very high grades
on surface. Results from three holes drilled on the La Balleza Vein
have reported some very high gold and silver grades on two of those
holes." stated Peter Drobeck, Senior
Vice President of Exploration and Business Development. He
continued, "As well as the high-grade discoveries at La Balleza, we
are also encouraged by the surface geology and initial drilling
results from the Santo Nino Vein, located a kilometre south of La
Balleza. This vein is locally up to 30 metres wide of banded and
brecciated calcite - quartz, has been traced for 2.4 kilometres
along strike and has shown highly anomalous surface sample values
up to 49.80 grams per tonne gold."
About Gammon Gold
Gammon Gold Inc. is a mid-tier gold and silver producer with
properties in Mexico. Gammon's
flagship Ocampo Property in Chihuahua State achieved commercial
production in January 2007. Gammon
also owns the El Cubo mine in
Guanajuato State and has the promising Guadalupe y Calvo
development property in Chihuahua State. Over the past year Gammon
completed option purchase agreements to acquire the Mezquite
Project in Zacatecas State, Mexico, the Venus project located north of the
Ocampo mine, and the Los Jarros
Project in Chihuahua State, and has executed an option to joint
venture agreement on the La Bandera Project in Durango State,
Mexico. Since 2008, the Company
has increased its Mexican land position by over 110% and has made
strategic investments in Golden Queen Mining Co. Ltd. and Corex
Gold Corporation. The Company's Executive Office is located 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, 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, future exploration results
of its development program, the Company's ability to delineate
additional resources and reserves as a result of such program, and
the company's ability to mine such targets by mid-2011, 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 2010 and 2011, 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.
TABLE 1: Summary of Positive Drill Intercepts from Venus Project
Hole_ID From, To, Length, Au, Ag, AuEq(55), Target
m m m gpt gpt gpt
VEN-001 27.0 28.5 1.5 0.69 1 0.70 La Boleta
VEN-002 31.2 33.9 2.7 0.45 3 0.50 La Boleta
VEN-002 45.9 46.4 0.5 2.63 3 2.68 La Boleta
VEN-004 281.9 282.5 0.6 8.58 1050 27.67 La Balleza
VEN-004 286.5 287.1 0.6 2.99 150 5.72 La Balleza
VEN-005 85.7 86.4 0.7 0.07 5 0.16 La Balleza
VEN-005 89.4 92.4 3.0 0.13 1 0.15 La Balleza
VEN-005 93.2 93.9 0.8 0.58 4 0.64 La Balleza
VEN-006 41.0 63.6 22.6 0.14 1 0.15 Veta_Sto_Nino
VEN-006 63.6 65.5 2.0 5.50 34 6.12 Veta_Sto_Nino
VEN-006 65.5 97.6 32.1 0.12 0 0.13 Veta_Sto_Nino
VEN-007 4.0 12.0 8.0 0.23 2 0.27 Veta_Sto_Nino
VEN-007 134.5 151.2 16.7 0.21 1 0.23 Veta_Sto_Nino
VEN-009 56.0 60.5 4.5 1.49 18 1.83 La Balleza
VEN-009 82.5 84.0 1.5 1.89 1 1.92 La Balleza
VEN-009 109.1 109.8 0.7 62.20 2700 111.29 La Balleza
VEN-011 292.0 293.6 1.6 1.05 3 1.10 Veta_Sto_Nino
VEN-012 118.0 137.3 19.3 0.33 1 0.35 Veta_Sto_Nino
Note: The Venus Project information has been reviewed by
Qualified Person, Mr. Peter Drobeck.
Sample analyses for Venus Project drilling were performed by
ALS-Chemex Laboratories (based in Vancouver, British Columbia, using their
facility in Hermosillo, Mexico).
Gold was analyzed using standard fire assay procedures with AA
finish, and silver by multi-acid digestion with AA finish. The high
gold assays reported herein for drill holes VEN-004 and VEN-009 had
their gold values checked with screen fire assays which are shown
on Table 1 (standard fire assays were slightly higher). The Company
has an established program of inserting certified control samples
and blanks in compliance with best practices, and this program is
used at the Venus Project per Company policies. Sample lengths are
not necessarily true widths.
Diagram 1: Location Map of Venus Project in the Ocampo - Pinos
Altos - Concheno Mining District, Western Chihuahua, Mexico. Grey shading
indicates Gammon Gold Inc's mineral land position.
http://files.newswire.ca/258/Diagram1.pdf
Diagram 2: Location Map of Drill Collars completed by Gammon
Gold Inc. on the Venus Project.
http://files.newswire.ca/258/Diagram2.pdf
Diagram 3: Cross - Section looking northwest of the La Balleza
Vein, Venus Project, showing newly reported drill
intersections.
http://files.newswire.ca/258/Diagram3.pdf
For further information:
please visit the Gammon gold website at http://www.gammongold.com or
contact:
Peter Drobeck Anne Day
Sr. VP Exploration & Business Development Director of Investor Relations
Gammon Gold Inc. Gammon Gold Inc.
+1-416-646-3825 +1-416-646-3825
SOURCE Gammon Gold Inc.