Gammon Gold Announces Exploration Drilling Results at Guadalupe y Calvo Gold-Silver Project




    TSX: GAM / AMEX:   GRS / BSX: GL7

    HALIFAX, March 3 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
AMEX:  GRS): is pleased to announce encouraging drilling results at its
Guadalupe y Calvo exploration project located in Chihuahua State, Mexico which
indicates strong resource growth potential from this exciting exploration
property.
    The 2007/8 exploration diamond drilling initiative on this highly
prospective project during the fourth quarter 2007 is a 15-hole (2,400 meter)
exploration drilling program. Upon the completion of this drilling program,
expected to be in Q2, the Company will complete a scoping study in order to
determine the next steps in this advanced exploration property. The recent
drilling program was designed to target the high grade core to further test
the continuity of the high grade mineralisation along the Rosario and Nankin
veins. Prior to being acquired by Gammon Gold, Mexgold Resources ("Mexgold")
had completed 37 holes, comprising approximately 10,000 meters of drilling. As
the structure remains open along strike and at depth, the objective of the
current exploration program is focused on expanding the property's resources
and better definition of the vein structures.

    Drilling result highlights include:

    
       - 5.0 meters of 7.52 g/t gold and 100.00 g/t silver or 9.52 g/t gold
         equivalent

       - 4.0 meters of 5.70 g/t gold and 179.00 g/t silver 9.28 g/t gold
         equivalent

       - 4.0 meters of 5.54 g/t gold and 5,870 g/t silver or 122.94 g/t gold
         equivalent

       - 3.0 meters of 20.30 g/t gold and 171.0 g/t silver or 23.72 g/t gold
         equivalent

       - 2.0 meters of 1.99 g/t gold and  474.0 g/t silver or 11.47 g/t gold
         equivalent

       - 3.0 meters of 3.39 g/t gold and 109.0 g/t silver or 5.57 g/t gold
         equivalent

       - 9.0 meters of 3.25 g/t gold and 234 g/t silver or 7.83 g/t gold
         equivalent

       - 6.35 meters of 4.97 g/t gold and 102.0 g/t silver or 7.01 g/t gold
         equivalent

       - 10.0 meters of 2.91 g/t gold and 307.0 g/t silver or 9.03 g/t gold
         equivalent

       - 9.0 meters of 2.87 g/t gold and 63.0 g/t silver or 4.13 g/t gold
         equivalent

    (*) Gold Equivalent values were calculated based on a 50 grams of silver
    = 1 gram of gold. No capping.

    Gold and silver grades from all drill holes to date with intercepts above
a 3.0 gram per tonne cut-off, average 3.56 grams per tonne gold and 299 grams
per tonne silver, over an average interval of 3.0-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 0.98 grams per tonne gold and 85 grams per tonne
silver, over an average interval of 10.70 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.
    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 1.78 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 ore's amenability to cyanidation
    "We continue to be excited by the potential of the Guadalupe y Calvo
property with high grade intercepts discovered near surface and at depth. Our
drilling program in the first half of 2008 is designed to allow Gammon to
update the resource estimate, conduct metallurgical testwork and to complete a
scoping study for a potential open pit and underground operation. Guadalupe
has strong geological characteristics within a prolific mining district and
coupled with the results to date, we are highly confident that we should be
able to quickly expand and upgrade Guadalupe's resources." stated Rene Marion,
CEO, Gammon Gold. Mr. Marion continued, "Pending the positive results from the
scoping study, we anticipate aggressively advancing the exploration program at
this property starting in the second half of 2008. Further, as our exploration
program is only focusing on 1 kilometer of the 3 kilometers of identified
potential, we have a tremendous amount of exploration upside yet to
delineate."
    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
    -------------------------------------------------------------------------
                               ----------------------------------------------
                                                                       (g/t)
    Target              Hole     (m)     (m)     (m)   (g/t)   (g/t)     (*)
    -------------------------------------------------------------------------
    San Francisco       GC-1   13.00   18.00    5.00    7.52  100.00    9.52
    -------------------------------------------------------------------------
    San Francisco       GC-2    0.00    4.00    4.00    3.57   89.00    5.35
    -------------------------------------------------------------------------
    San Francisco        and   27.00   33.00    6.00    2.91  123.00    5.37
    -------------------------------------------------------------------------
    Nankin              GC-3   57.00   58.00    1.00    1.92  250.00    6.92
    -------------------------------------------------------------------------
    Pertenencia         GC-4  125.50  129.50    4.00    5.70  179.00    9.28
    -------------------------------------------------------------------------
    Pertenencia         GC-6   39.50   43.50    4.00    5.54 5870.00  122.94
    -------------------------------------------------------------------------
    Zorrilla            GC-8  156.00  157.00    1.00   37.53  136.00   40.25
    -------------------------------------------------------------------------
    Pertenencia        GC-10   63.50   64.50    1.00    2.88   84.00    4.56
    -------------------------------------------------------------------------
    Flora Vein         GC-11   51.00   52.00    1.00    4.80   27.00    5.34
    -------------------------------------------------------------------------
    San Francisco      GC-11   70.00   73.00    3.00   20.30  171.00   23.72
    -------------------------------------------------------------------------
    Zorrilla           GC-12    0.00    3.00    3.00    2.92  176.00    6.44
    -------------------------------------------------------------------------
    Zorrilla             and   57.00   58.00    1.00    1.41  154.00    4.49
    -------------------------------------------------------------------------
    Pertenencia        GC-13   65.00   66.00    1.00    4.33  195.00    8.23
    -------------------------------------------------------------------------
    San Francisco      GC-15  103.00  104.00    1.00    0.07  251.00    5.09
    -------------------------------------------------------------------------
    San Francisco        and  146.00  147.00    1.00    3.70    3.00    3.76
    -------------------------------------------------------------------------
    Zorrilla           GC-16   53.00   57.00    4.00    3.40  165.00    6.70
    -------------------------------------------------------------------------
    Zorrilla             and   60.00   61.00    1.00    0.89  360.00    8.09
    -------------------------------------------------------------------------
    Zorrilla           GC-18   44.00   45.50    1.50    1.82  105.00    3.92
    -------------------------------------------------------------------------
    Zorrilla           GC-20   28.00   29.00    1.00    0.48  233.00    5.14
    -------------------------------------------------------------------------
    Zorrilla             and   31.00   35.00    4.00    1.02  153.00    4.08
    -------------------------------------------------------------------------
    Pertenencia        GC-21  107.00  109.00    2.00    1.75  104.00    3.83
    -------------------------------------------------------------------------
    San Francisco      GC-22   40.00   44.00    4.00    2.38  137.00    5.12
    -------------------------------------------------------------------------
    Pertenencia        GC-23  203.00  205.00    2.00    1.99  474.00   11.47
    -------------------------------------------------------------------------
    San Francisco      GC-25   38.00   39.00    1.00    1.61  126.00    4.13
    -------------------------------------------------------------------------
    Zorrilla           GC-26  209.00  210.00    1.00    1.17  132.00    3.81
    -------------------------------------------------------------------------
    San Francisco      GC-27   40.00   41.00    1.00    2.85   84.00    4.53
    -------------------------------------------------------------------------
    Zorrilla           GC-28  197.00  198.00    1.00    1.47  112.00    3.71
    -------------------------------------------------------------------------
    San Francisco      GC-29   82.00   83.00    1.00    1.23  211.00    5.45
    -------------------------------------------------------------------------
                       GC-30  239.00  240.00    1.00    1.75  135.00    4.45
                       ------------------------------------------------------
    Nanking Extension    and  245.00  246.00    1.00    1.23  119.00    3.61
    -------------------------------------------------------------------------
                       GC-33    52.5    54.0     1.5    1.78  222.00    6.22
    -------------------------------------------------------------------------
    Pertenencia          and  102.00  103.50    1.50    3.91   96.00    5.83
    -------------------------------------------------------------------------
    San Francisco      GC-34   75.00   78.00    3.00    3.39  109.00    5.57
    -------------------------------------------------------------------------
    San Francisco      GC-35   30.00   31.50    1.50    2.81  101.00    4.83
    -------------------------------------------------------------------------
                       GC-36   31.50   33.00    1.50    0.75  159.00    3.93
                       ------------------------------------------------------
    San Francisco        and   66.00   67.50    1.50    3.90   65.00    5.20
    -------------------------------------------------------------------------
                       GC-37   72.00   75.00    3.00    2.06  108.00    4.22
                       ------------------------------------------------------
    Zorilla              and   84.00   85.50    1.50    3.02   93.00    4.88
    -------------------------------------------------------------------------
    Rosario            GC-41   21.00   30.00    9.00    3.25     234    7.83
    -------------------------------------------------------------------------
    Rosario           GC-42A   47.80   49.40    1.60    1.61      78    3.17
    -------------------------------------------------------------------------
    Rosario            GC-44   25.00   33.50    8.50    1.50      91    3.32
    -------------------------------------------------------------------------
    Rosario           GC-44A   30.40   40.80    8.25    2.73     110    4.70
    -------------------------------------------------------------------------
    Rosario           GC-44B   31.50   39.10    7.60    1.84      98    3.80
    -------------------------------------------------------------------------
    Rosario            GC-45   27.10   33.45    6.35    4.97     102    7.01
    -------------------------------------------------------------------------
    Flora              GC-46   84.00   90.00    6.00    2.36      33    3.02
    -------------------------------------------------------------------------
    Rosario            GC-48  266.00  276.00   10.00    2.91     307    9.03
    -------------------------------------------------------------------------
    Rosario            GC-49   56.55   59.90    3.35    2.65     102    4.70
    -------------------------------------------------------------------------
    Rosario            GC-51   22.40   31.40    9.00    2.87      63    4.13
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Average +3.0.05 g/t cutoff
    (*) Gold Equivalent Values were calculated based on 50 ounces of
    silver = 1 ounce of gold. No Capping.
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
           Table 2. Guadalupe y Calvo Drill Hole Intercept Summary
    -------------------------------------------------------------------------
                   0.5 g/t Gold-Equivalent External Cut-Off
    -------------------------------------------------------------------------
                                                                       Gold-
                                               Inter                   Equi-
    Target                      From      To    -val    Gold  Silver  valent
    -------------------------------------------------------------------------
                                  (m)     (m)     (m)   (g/t)  (g/t) (g/t)(*)
    -------------------------------------------------------------------------
    San Francisco       GC-1    4.50   36.00   31.50    1.60   53.00    2.66
    -------------------------------------------------------------------------
    San Francisco       GC-2    0.00    4.00    4.00    3.57   89.00    5.35
    -------------------------------------------------------------------------
    San Francisco        and   12.00   40.00   28.00    0.60   49.00    1.58
    -------------------------------------------------------------------------
    Nankin              GC-3   57.00   59.00    2.00    0.97  174.00    4.45
    -------------------------------------------------------------------------
    Zorrilla            GC-3  210.00  212.00    2.00    0.39   25.00    0.89
    -------------------------------------------------------------------------
    Pertenencia         GC-4  123.50  134.50   11.00    2.51   80.00    4.11
    -------------------------------------------------------------------------
    Pertenencia          and  146.50  155.50    9.00    0.57    2.00    0.61
    -------------------------------------------------------------------------
    Zorrilla            GC-5  107.00  111.00    4.00    0.81   38.00    1.57
    -------------------------------------------------------------------------
    Zorrilla             and  131.50  136.50    5.00    0.18   36.00    0.90
    -------------------------------------------------------------------------
    Pertenencia         GC-6   19.50   45.00   25.50    1.16  961.00   20.38
    -------------------------------------------------------------------------
    Pertenencia         GC-7  171.00  174.00    3.00    0.39   49.00    1.37
    -------------------------------------------------------------------------
    Pertenencia          and  202.50  205.50    3.00    0.14   44.00    1.02
    -------------------------------------------------------------------------
    Zorrilla            GC-8  156.00  157.00    1.00   37.53  136.00   40.25
    -------------------------------------------------------------------------
    Pertenencia         GC-9  127.00  133.00    6.00    0.42   22.00    0.86
    -------------------------------------------------------------------------
    Pertenencia        GC-10   55.50   65.50   10.00    0.57   35.00    1.27
    -------------------------------------------------------------------------
    San Francisco      GC-11   58.00   77.00   19.00    3.48   74.00    4.96
    -------------------------------------------------------------------------
    Zorrilla           GC-12    0.00    4.00    4.00    2.28  136.00    5.00
    -------------------------------------------------------------------------
    Zorrilla             and   54.00   61.00    7.00    0.33   44.00    1.21
    -------------------------------------------------------------------------
    Zorrilla             and   65.00   71.00    6.00    0.33   19.00    0.71
    -------------------------------------------------------------------------
    Zorrilla             and  136.50  141.00    4.50    0.31   58.00    1.47
    -------------------------------------------------------------------------
    Pertenencia        GC-13   42.00   48.00    6.00    0.22   29.00    0.80
    -------------------------------------------------------------------------
    Pertenencia          and   64.00   70.00    6.00    1.10   43.00    1.96
    -------------------------------------------------------------------------
    Zorrilla           GC-14   40.00   44.00    4.00    0.75   26.00    1.27
    -------------------------------------------------------------------------
    Zorrilla             and   49.00   62.00   13.00    0.24   60.00    1.44
    -------------------------------------------------------------------------
    San Francisco      GC-15   80.00   87.00    7.00    0.28   68.00    1.64
    -------------------------------------------------------------------------
    Zorrilla           GC-16   49.00   69.00   20.00    1.03   90.00    2.83
    -------------------------------------------------------------------------
    Zorrilla           GC-18   24.00   30.00    6.00    0.12   29.00    0.70
    -------------------------------------------------------------------------
    Zorrilla             and  134.00  144.00   10.00    0.59   30.00    1.19
    -------------------------------------------------------------------------
    Zorrilla           GC-19  144.00  153.00    9.00    0.68   22.00    1.12
    -------------------------------------------------------------------------
    Zorrilla           GC-20   17.00   36.00   19.00    0.44   82.00    2.08
    -------------------------------------------------------------------------
    Pertenencia        GC-21  101.00  110.00    9.00    0.90   54.00    1.98
    -------------------------------------------------------------------------
    San Francisco      GC-22   40.00   45.00    5.00    1.93  115.00    4.23
    -------------------------------------------------------------------------
    Pertenencia        GC-23  203.00  206.00    3.00    1.60  332.00    8.24
    -------------------------------------------------------------------------
    Pertenencia        GC-24  172.00  174.00    2.00    0.84   29.00    1.42
    -------------------------------------------------------------------------
    San Francisco      GC-25   19.00   39.00   20.00    0.80   57.00    1.94
    -------------------------------------------------------------------------
    Zorrilla           GC-26  206.00  215.00    9.00    0.43   52.00    1.47
    -------------------------------------------------------------------------
    San Francisco      GC-27   28.50   51.00   22.50    0.51   52.00    1.55
    -------------------------------------------------------------------------
    Zorrilla           GC-28  195.00  202.00    7.00    0.59   49.00    1.57
    -------------------------------------------------------------------------
    San Francisco      GC-29   41.00   84.00   43.00    0.26   43.00    1.12
    -------------------------------------------------------------------------
    Nanking Extension  GC-30  238.00  247.00    9.00    0.67   66.00    1.99
    -------------------------------------------------------------------------
    Zorilla            GC-32  141.00  154.00   13.00    0.24   20.00    0.64
    -------------------------------------------------------------------------
                       GC-33   52.50   58.50    6.00    0.61   93.00    2.47
                       ------------------------------------------------------
                         and   69.00   73.50    4.50    0.25   42.00    1.09
                       ------------------------------------------------------
    Pertenencia          and  102.00  103.50    1.50    3.91   96.00    5.83
    -------------------------------------------------------------------------
    San Francisco      GC-34   72.00   97.50   25.50    0.56   40.00    1.36
    -------------------------------------------------------------------------
    San Francisco      GC-35   18.00   46.50   28.50    0.61   57.00    1.75
    -------------------------------------------------------------------------
    San Francisco      GC-36   18.00   54.00   36.00    0.16   23.00    0.62
    -------------------------------------------------------------------------
    San Francisco        and   66.00   67.50    1.50    3.90   65.00    5.20
    -------------------------------------------------------------------------
    Zorilla            GC-37   60.00   88.50   28.50    0.54   41.00    1.36
    -------------------------------------------------------------------------
    Rosario            GC-41   21.00   30.00    9.00    3.25     234    7.93
    -------------------------------------------------------------------------
    Nankin            GC-42A    4.15   14.00    9.85    0.93      80    2.53
    -------------------------------------------------------------------------
    Del Sol                    27.00   30.90    3.90    0.31      18    0.67
    -------------------------------------------------------------------------
    Rosario                    47.80   49.40    1.60    1.61      78    3.17
    -------------------------------------------------------------------------
                       GC-44    6.00   39.00   33.00    0.55    3.09    0.61
    -------------------------------------------------------------------------
    New Vein                  195.00  198.00    3.00    0.51      34    1.19
    -------------------------------------------------------------------------
    New Vein                  210.00  212.00    2.00    0.31      72    1.75
    -------------------------------------------------------------------------
    Rosario           GC-44A   30.40   40.80   10.40    2.73     110    4.93
    -------------------------------------------------------------------------
    Rosario           GC-44B   31.50   39.10    7.60    1.84      98    3.80
    -------------------------------------------------------------------------
                       GC-45    7.00   45.00   38.00    1.22   29.64    1.81
    -------------------------------------------------------------------------
    Flora              GC-46   84.00   90.00    6.00    2.36      33    3.02
    -------------------------------------------------------------------------
                              126.00  132.00    6.00    0.32     9.5    0.51
    -------------------------------------------------------------------------
                       GC-48  266.00  276.00   10.00    2.91     307    9.05
    -------------------------------------------------------------------------
    Rosario            GC-49    8.50    9.60    1.10    0.47      19    0.85
    -------------------------------------------------------------------------
                               36.00   59.90   23.90    0.88   34.57    1.57
    -------------------------------------------------------------------------
                       GC-50   47.45   53.45    6.00    0.26      56    1.38
    -------------------------------------------------------------------------
    Rosario                    70.15   73.60    3.45    0.23      44    1.11
    -------------------------------------------------------------------------
                               76.20   80.10    3.90    0.22      25    0.72
    -------------------------------------------------------------------------
    Rosario                   102.00  109.00    7.00    0.79      39    1.57
    -------------------------------------------------------------------------
    Flora              GC-51   22.40   31.40    9.00    2.87      63    4.13
    -------------------------------------------------------------------------
    Rosario                    70.70   76.00    5.30    1.06       5    1.16
    -------------------------------------------------------------------------
    Rosario                   153.20  154.25    1.05    0.77      13    1.03

    Average +0.05 g/t cutoff
    -------------------------------------------------------------------------
    (*) Gold Equivalent Values were calculated based on 50 ounces of
        silver = 1 ounce of gold. No Capping.
    -------------------------------------------------------------------------

    This press release has been reviewed by in-house qualified person
Dr. Jose Luis Lee, P. Geo. All gold analyses were performed by Chemex
Laboratories, Vancouver, B.C. using standard fire assay procedures.

    About Guadalupe y Calvo

    The Guadalupe y Calvo Gold-Silver project lies immediately to the
southwest of the town of Guadalupe y Calvo, in the State of Chihuahua, Mexico
and consists of five concessions totaling approximately 440-hectares.
Guadalupe is a historic mining district where 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 have been produced. The
Guadalupe y Calvo Project contains inferred resources of 1.08-million ounces
of gold and 45.6-million ounces of silver or 1.78 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
significant strike extensions that are known to be present within the project
boundaries.

    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 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 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 the development of new deposits, costs and timing of
construction, costs and timing of future exploration and reclamations
expenses. 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.
    




For further information:

For further information: please 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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