Gammon Gold Reports High-Grade Discovery at La Balleza Vein in Venus Project: 0.6m grading 62.20 grams per tonne Gold and 2700 grams per tonne Silver
TORONTO, April 6 /CNW/ --
TORONTO, April 6 /CNW/ - 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
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_Niño
VEN-006 63.6 65.5 2.0 5.50 34 6.12 Veta_Sto_Niño
VEN-006 65.5 97.6 32.1 0.12 0 0.13 Veta_Sto_Niño
VEN-007 4.0 12.0 8.0 0.23 2 0.27 Veta_Sto_Niño
VEN-007 134.5 151.2 16.7 0.21 1 0.23 Veta_Sto_Niño
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_Niño
VEN-012 118.0 137.3 19.3 0.33 1 0.35 Veta_Sto_Niño
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
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/April2011/06/c9820.html
please 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. 416-646-3825 |