Gammon Gold Announces Additional Positive Exploration Drilling Results and a Progress Update on the Scoping Study for the Guadalupe y Calvo Gold-Silver Project



    HALIFAX, Sept. 3 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
AMEX:  GRS): is pleased to announce additional encouraging drilling results from
our highly prospective Guadalupe y Calvo exploration property located in
Chihuahua State, Mexico as part of the recently enhanced 45,000 to
50,000 metre diamond drilling program currently underway.
    "The assays results we are continuing to receive confirm the significant
potential of this asset and represent a significant opportunity to expand our
reserves and resources over the coming years as well as potentially increasing
our production profile in the near future. It is important to highlight that
the potential of Guadalupe y Calvo was not considered in our 3-year
operational guidance that we issued on March 31, 2008 so the opportunity for
this project to augment the production profile is considered significant,"
stated René Marion, Chief Executive Office of Gammon Gold. Mr. Marion
continued, "Based on the results to date, we will continue to accelerate the
engineering evaluation of this property with the completion of a Scoping Study
that is expected to be completed during Q1 2009. The Scoping Study will focus
primarily on the open pit target and could provide the basis for moving
directly to Feasibility Study levels to more rapidly and leverage the value of
this asset. Although the drilling thus far has focused primarily on the open
pit target, underground potential could very well exist in the Rosario and
Nankin veins as they remain open along strike and at depth. The drilling
results thus far confirm substantial open pit-mineable widths in the upper
portion of the deposit, with deeper drill hole intercepts indicating the
presence of a significant high grade underground target."
    During 2007, the Company initiated a surface channel sampling program and
a 15-hole (2,400 metre) exploration drilling program on the Guadalupe y Calvo
exploration project. Based on results that had been received during this
drilling campaign and a review of the 37-hole program conducted by Mexgold,
the Company decided to significantly expand and accelerate the exploration
program such that a significant portion of the recently enhanced
$26-29 million 2008-2009 corporate exploration and engineering budget is
devoted to this program. The goal of the Guadalupe y Calvo exploration program
is designed to convert inferred resources to measured & indicated categories,
to look for additional inferred resources, and to conduct metallurgical test
work and mine designs for a potential open pit and a possible future
underground operation.
    The rate of drilling at Guadalupe y Calvo has already increased
significantly since the start of the drilling campaign in December 2007,
reaching 5,500 metres in August. To date, 105 holes have been completed with
assays received on 74 holes and results from 31 more holes in process.
Previous drilling results up to hole GC-51 were released by the Company on
March 3, 2008. Representative cross sections with drill hole intercepts and
vein interpretations are included in the Appendix.
    To support the execution of the exploration program, the Company is
establishing camp facilities, an on-site sample preparation laboratory to
facilitate quicker turn-around of assays, and has awarded contracts or
tendered for components of the Scoping Study that is expected to be completed
by the end of Q1 2009. This study has been designed to facilitate a full
transition into a Feasibility program to accelerate the development of this
exciting prospective property.

    
    Drilling result highlights include:

    - 2.0 meters of 0.96 g/t gold and 994 g/t silver or 20.8 g/t gold
      equivalent
    - 1.8 meters of 2.83 g/t gold and 290 g/t silver or 8.64 g/t gold
      equivalent
    - 3.0 meters of 5.29 g/t gold and 191 g/t silver or 9.12 g/t gold
      equivalent
    - 1.0 meters of 11.05 g/t gold and 766 g/t silver or 26.37 g/t gold
      equivalent
    - 1.2 meters of 12.25 g/t gold and 485 g/t silver or 21.95 g/t gold
      equivalent
    - 1.0 meters of 10.9 g/t gold and 768 g/t silver or 26.26 g/t gold
      equivalent
    - 1.0 meters of 7.41 g/t gold and 604 g/t silver or 19.49 g/t gold
      equivalent
    - 1.0 meters of 7.05 g/t gold and 785 g/t silver or 22.75 g/t gold
      equivalent
    - 1.0 meters of 4.95 g/t gold and 677 g/t silver or 18.49 g/t gold
      equivalent
    - 32.2 meters of 0.12 g/t gold and 30 g/t silver or 0.72 g/t gold
      equivalent
    - 21.7 meters of 1.04 g/t gold and 48 g/t silver or 2.01 g/t gold
      equivalent
    - 16.3 meters of 0.64 g/t gold and 56 g/t silver or 1.76 g/t gold
      equivalent
    - 21.2 meters of 0.96 g/t gold and 24 g/t silver or 1.44 g/t gold
      equivalent
    - 16.0 meters of 1.08 g/t gold and 63.78 g/t silver or 2.35 g/t gold
      equivalent

    Gold and silver grades from all drill holes to date (from hole GC1 to
GC74) with intercepts above a 3.0 gram per tonne cut-off, average 4.16 grams
per tonne gold and 293.08 grams per tonne silver, over an average interval
length of 1.56 metres (Table 1). Gold and silver grades from all drill holes
to date with intercepts above a 0.5 gram per tonne cut-off, average 0.83 grams
per tonne gold and 64.47 grams per tonne silver, over an average interval of
6.99 metres (Table 2). Results thus far support the extension of the
mineralized zone along strike and at depth and continue to support the
potential for both open pit and underground operations.
    Highlights from all drilling programs are summarized in Table 1, using a
3.0 gram per tonne cut off grade and Table 2, using a 0.5 gram per tonne
cutoff grade.

    -------------------------------------------------------------------------
           Table 1: Guadalupe y Calvo Drill Hole Intercept Summary
    -------------------------------------------------------------------------
                   3.0 g/t Gold-Equivalent External Cut-Off
    -------------------------------------------------------------------------
                                         Inter-                      Gold-
    Target   Hole        From       To     val   Gold  Silver  Equivalent
    -------------------------------------------------------------------------
                           (m)      (m)    (m)   (g/t)   (g/t)       (g/t)(*)
     ------------------------------------------------------------------------
    Rosario  GC-54         16     23.8    5.6    2.29   476.5       11.82
    Rosario  including     16       18      2    0.96     994        20.8
    Rosario  including     18     19.8    1.8    2.83     290        8.64
    Rosario  including     22     23.8    1.8    3.23      88        5.00
    Rosario  GC-55        102      103      1    0.62     124        3.10
    Rosario  GC-55        107      110      3    5.29     191        9.12
    Rosario  GC-58        147      148      1    3.14     171        6.56
    Rosario  GC-59         79       80      1    1.78      99        3.76
    Rosario  GC-59       85.4     87.4      2    3.29     102        5.33
    Rosario  GC-59       88.4     89.4      1    1.35      94        3.23
    Rosario  GC-60      226.6    227.6      1    2.25      95        4.15
    Rosario  GC-60      228.6    229.6      1    3.63     146        6.55
    Rosario  GC-60      230.6    231.6      1    1.32     213        5.58
    Rosario  GC-60      235.6    236.6      1   11.05     766       26.37
    Nankin   GC-61       41.8     42.8      1    7.01      58        8.17
    Nankin   GC-61         49     50.2    1.2   12.25     485       21.95
    Rosario  GC-61        251      253      2    1.82     169        5.19
    Rosario  GC-62        136      137      1     2.5      60        3.70
    Rosario  GC-62        137      138      1    8.85     220       13.25
    Rosario  GC-63        236      237      1    1.73     154        4.81
    Rosario  GC-63        237      238      1    2.57      70        3.97
    Rosario  GC-63        244      245      1    3.54     259        8.72
    Rosario  GC-63        250      251      1    3.93     250        8.93
    Rosario  GC-67      352.5    354.5      2    9.15     686       22.87
    Rosario  including  352.5    353.5      1    10.9     768       26.26
    Rosario  including  353.5    354.5      1    7.41     604       19.49
    Rosario  GC-68      334.5    338.5      4     5.1   469.5       14.49
    Rosario  GC-68      331.5    332.5      1     1.4      98        3.36
    Rosario  including  334.5    335.5      1    5.87     238       10.63
    Rosario  including  335.5    336.5      1    2.56     178        6.12
    Rosario  including  336.5    337.5      1    7.05     785       22.75
    Rosario  including  337.5    338.5      1    4.95     677       18.49

    +3.0 g/t cutoff
    (*) Gold Equivalent Values were calculated based on
        50 ounces of silver = 1 ounce of gold.
       (*) Metallurgical Recoveries and Net Smelter Returns are Assumed to
           be 100%
    No Capping.
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
           Table 2. Guadalupe y Calvo Drill Hole Intercept Summary
    -------------------------------------------------------------------------
                   0.5 g/t Gold-Equivalent External Cut-Off
    -------------------------------------------------------------------------
                                         Inter-                      Gold-
    Target   Hole        From       To     val   Gold  Silver  Equivalent
                           (m)      (m)     (m)  (g/t)   (g/t)       (g/t)(*)
    ------------------------------------------------------------------------
    Rosario  GC-52        384      385       1   1.01      31        1.63
    Rosario  GC-53        114      117       3   0.58      20        0.98
    Con-
     cordia  GC-53      290.5      291     0.5   0.24      14        0.52
             GC-53        356      357       1   0.50      10        0.70
    Rosario  GC-54          4    10.25    6.25   0.11      31        0.73
    Rosario  GC-54         16     19.8    3.80   1.84     661        15.1
             including     16       18       2   0.96     994        20.8
             including     18     19.8     1.8   2.83     290        8.64
    Rosario  GC-54         22       56      34   0.28      33        0.95
             including     22     23.8     1.8   3.23      88        5.00
    Rosario  GC-54       23.8       56    32.2   0.12      30        0.72
    Rosario  GC-54         66       70       4   0.12      27        0.66
    Rosario  GC-54       78.3       80     1.7   0.37      43        1.23
    Con-
     cordia  GC-54      129.9      132     2.1   0.17      17        0.51
    Rosario  GC-55       89.5    111.2    21.7   1.04      48        2.01
             including   89.5      102    12.5   0.29      17        0.63
             including    102      103       1   0.62     124        3.10
             including    103      106       3   0.29      18        0.65
             including    106    111.2     5.2   3.37     126        5.88
             GC-55        195    197.3     2.3   0.22      21        0.65
    Rosario  GC-57        155      171      16   0.26      20        0.65
             including    155      163       8   0.21      15        0.51
             including    163      165       2   0.40      35        1.09
             including    165      171       6   0.28      21        0.69
    Rosario  GC-58        147      148       1   3.14     171        6.56
    Rosario  GC-59         79     91.4    12.4   1.09      97        2.03
             including     79     86.4     7.4   1.03      46        1.95
             including   86.4     89.4       3    1.8      71        3.22
             including   89.4     91.4       2   0.27      14        0.55
    Rosario  GC-60      226.6    237.8    11.2   1.97     135        4.67
             including  226.6    235.6       9   1.07      72        2.52
             including  235.6    237.8     2.2   5.65     392        13.5
             including    278      279       1   0.78      72        2.22
    Nankin   GC-61       38.7     43.8     5.1    1.8      28        2.36
             including   38.7     41.8     3.1    0.5      13        0.76
             including   41.8     42.8       1   7.01      58        8.17
             including   42.8     43.8       1   0.61      44        1.49
    Rosario  GC-61         48       49       1   0.65      48        1.61
    Rosario  GC-61         49     50.2     1.2  12.25     485       21.95
    Rosario  GC-61       52.2     52.9     0.7   0.16      18        0.52
    Con-
     cordia  GC-61      238.7      255    16.3   0.64      56        1.76
             including  238.7      246     7.3   0.43      35        1.13
             including    246      251       5   0.62      55        1.72
             including    251      253       2   1.82     169        5.19
             including    253      255       2   0.28      23        0.74
    Rosario  GC-62      119.8      141    21.2   0.96      24        1.44
             including  119.8      125     5.2   0.29      14        0.58
             including    125      126       1   0.26      43        1.12
             including    126      135       9   0.16       4        0.23
             including    135      137       2   2.05      42        2.88
             including    137      138       1   8.85     220       13.25
             including    138      141       3   1.42      18        1.78
    Rosario  GC-63        235      251      16   1.08   63.78        2.35
             including    235      238       3   1.86     100        3.86
             including    238      240       2   0.30      27        0.84
             including    240      244       4   0.20       7        0.34
             including    244      246       2   2.32     169        5.70
             including    246      248       2   0.25      19        0.63
             including    248      251       3   1.71     114        3.98
    Rosario  GC-63        262      264       2   0.80    76.5        2.33
    Rosario  GC-66        257      270      13   0.64      42        1.49
             including    257      258       1   0.37      26        0.89
             including    258      261       3   1.41      78        2.96
             including    261      265       4   0.28      18        0.64
             including    265      267       2   0.74      50        1.73
    Rosario  GC-67      339.5    354.5      15   1.45     108        3.61
             including  339.5    341.5       2   0.63      49        1.61
             including  352.5    354.5       2   9.16     686        22.9
    Rosario  GC-68      326.5    338.5      12   1.98     174        5.46
             including  326.5    331.5       5   0.21      14        0.50
             including  331.5    332.5       1   1.40      98        3.36
             including  332.5    334.5       2   0.45      20        0.85
             including  334.5    336.5       2   4.22     208        8.38
             including  336.5    338.5       2   6.00     731       20.60
    Rosario  GC-69     317.85      319    1.15    0.5      25        1.00
    Rosario  GC-69      327.9    328.9       1   0.28      12        0.52
    Rosario  GC-69      331.9    332.9       1   0.07      26        0.59
    Rosario  GC-69      336.9    337.9       1   0.28      20        0.68
    Con-
     cordia  GC-69        386      387       1   0.25      17        0.59
    Rosario  GC-71      250.1    251.8    1.70   0.25      38        1.01
    Rosario  GC-71      255.9      258     2.1   0.27      34        0.95
             GC-72        297    298.5    1.50   0.67      62        1.91
    Rosario  GC-73      133.5      135     1.5   2.13      25        2.63
    Rosario  GC-74        240      241    1.00   0.02      27        0.56
    Con-
     cordia  GC-74        326      328       2   0.16      64        1.44

    +0.05 g/t cutoff
    -------------------------------------------------------------------------
    (*) Gold Equivalent Values were calculated based on
        50 ounces of silver = 1 ounce of gold.
       (*) Metallurgical Recoveries and Net Smelter Returns are Assumed to
           be 100%
    No Capping.
    ------------------------------------------------------------------------

    This press release has been reviewed by Mr. Don Earnest, P. Geo of
Resource Evaluation Inc., an independent Qualified Person. All sample analyses
were performed by Chemex Laboratories, Vancouver, B.C. using standard fire
assay procedures.

    About Guadalupe y Calvo

    Guadalupe is a historic mining district. Bonanza grade gold and silver was
discovered on the property in 1835. Historic mining in the area produced
approximately 2-million ounces of gold and 28-million ounces of silver at
estimated production grades of 37 grams per tonne gold and 870 grams per tonne
silver. However, the district was only partially and selectively mined.
Historic mine operators focused only on the higher-grade zones in selected
upper portions of high-grade structures and stopped at water table depths of
200- to 250-metres.
    The Guadalupe y Calvo Project contains inferred resources of 1.08-million
ounces of gold and 45.6-million ounces of silver or 2.02 million gold
equivalent ounces (Pincock, Allen and Holt, Nov. 2002). This estimate is based
on exploration work completed on the Rosario and Nankin structures and does
not address other mineralized structures on the property and potential for
strike extensions that are known to be present within the project boundaries.
Preliminary bottle roll tests indicate the mineralization is amenable to
cyanidation.

    About Gammon Gold

    Gammon Gold Inc. is a Nova Scotia based 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
operates its El Cubo operation in Guanajuato State and has the promising
development Guadalupe y Calvo property in Chihuahua State. The company remains
100% unhedged.

    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 (File No. 001-31739), 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 information regarding the Company contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in forward looking
statements. Specific reference is made to "Risk Factors" in the Company's
Annual Information Form and Form 40-F Report. Forward-looking statements may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact including,
without limitation, statements regarding potential mineralization and
reserves, including without limitation, statements regarding future cash costs
and production at El Cubo and Ocampo and the ability to continue to
successfully implement the Company's turn-around strategy, statements
regarding the resource growth potential of Guadalupe y Calvo, statements
regarding the company's ability to continue its improved cash flow
performance, the impact of any future exploration on reserve estimates;
expectations regarding the timing and extent of production at the Ocampo
project; the implications of the Mexican Single Rate Tax on future income tax
payments; estimates regarding the future costs related to exploration at
Ocampo; the nature and availability of additional funding sources; and future
plans and objectives of Gammon. In some cases, you can identify
forward-looking statements by the use of words such as may, will, should,
could, expect, plan, intend, anticipate, believe, estimate, predict, potential
or continue or the negative or other variations of these words, or other
comparable words or phrases. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Important factors that could cause actual results to differ materially from
the Company's expectations include, among others, risks related to
international operations, including political turmoil and limited local
infrastructure to support large scale mining operations; the actual results of
current exploration activities; conclusions of economic evaluations and
changes in project parameters as plans continue to be refined; and
fluctuations in future prices of gold and silver. These factors are set out in
the Company's Annual Information Form. The Company's forward-looking
statements are expressly qualified in their entirety by this cautionary
statement.

    Click on the below link to see the Appendix:

    http://files.newswire.ca/258/appendix.doc
    




For further information:

For further information: visit the Gammon Gold website at
www.gammongold.com or contact: Rene Marion Chief Executive Officer, Gammon
Gold Inc., (902) 468-0614; Anne Day, Director of Investor Relations, Gammon
Gold Inc., (902) 468-0614

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