Gammon Gold Provides Update on Exploration Program
Multiple New Discoveries at Ocampo and El Cubo Mines
Resumption of Exploration at Guadalupe y Calvo Projects
TSX: GAM / NYSE: GRS / BSX: GL7
HALIFAX, March 30 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to provide an update on its exploration activities. Gammon also announces that its ongoing exploration programs at Ocampo and El Cubo have been successful in delineating two new gold-silver deposits at Ocampo (Las Molinas and Santa Eduviges); the discovery of five new significant target areas at Ocampo with commercial-grade mineralization; ore-grade mineralization at two target areas at El Cubo and plans to resume drilling at the Guadalupe y Calvo project in the coming months.
"The past months have been an exciting time for Gammon's accelerated exploration program on all fronts" commented Peter Drobeck, Sr. V.P. Exploration & Business Development. He continued. "We currently have eleven drill rigs working at Ocampo and El Cubo with plans to test at least 12 exploration targets at Ocampo and 10 at El Cubo. We will be adding one drill rig at each of Ocampo and El Cubo in the second quarter, so that with the resumption of drilling at the Guadalupe y Calvo project in April and planned drilling at our new Mezquite Project in Zacatecas, we expect to have 15 drill rigs working in Mexico during the second quarter. Our board-approved budgets for 2010 include 139 kilometres of core drilling for the year, clearly a very aggressive drill program."
OCAMPO EXPLORATION UPDATE
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During 2009, the Company drilled 166 reverse circulation holes totaling 31,028 metres, and 442 diamond drill holes totaling 84,465 metres, for a total of 608 holes and 115,493 metres for the year at Ocampo.
2009 Ocampo Drilling Program
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Area Drilled Metres
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In-Mine Underground Drilling 42,674
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In-Mine Surface Drilling 43,018
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Non-Mine New Target Drilling 29,800
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Total Metres 115,492
The Company will continue with an aggressive drilling program for 2010. The 2010 drilling program provides for 30,000 metres of underground core drilling, 2,885 metres of underground exploration drifting, 4,800 metres of in-pit delineation drilling and 35,500 metres of surface discovery drilling. As of the end of February 2010, the Company's non-mine surface program had completed 37 surface holes for 8,850 metres as part of the surface discovery program. To date, the exploration program has resulted in the discovery and delineation of the Las Molinas and Santa Eduviges deposits at Ocampo as well as numerous new discoveries for follow up drilling.
2010 Planned Ocampo Drilling Program
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Area Planned Metres
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Underground Drilling 30,000
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Surface Drilling 4,800
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New Target Drilling 35,500
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Total Metres 70,300
Ocampo Underground
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Underground drilling at Ocampo in the past five months has focused on three targets, the Belen and Jesus Maria veins, and the Santa Eduviges clavo. Significant intercepts in terms of grade and/or width have been intersected at Belen. Favourable results have also been received from the Jesus Maria program that are highlighted in Table 2. At Santa Eduviges over 13,000 metres of drilling has been advanced since the program began in the second half of 2009. A resource model is currently being assembled for Santa Eduviges and development options are being evaluated.
Two exploration drifts are being driven to establish drilling platforms to the northeast and southeast of the main underground complex. The northeast drive will target the San Amado vein and allow the mine to follow-up at depth on promising surface drilling undertaken in 2008 and 2009. The southeast drive will follow the Aventurero vein on the 1611 elevation and will open-up drilling platforms to target Santa Juliana, Resurreccion and Aventurero. In addition, infill drilling will follow the Santa Eduviges ramp down as it is being driven over the next three quarters.
The Company's drilling program at Ocampo in 2009 and early 2010 have already identified potentially commercial grades and configurations of mineralization at the Las Molinas and Santa Eduviges targets and the Company has drilled four other significant discoveries at Ocampo, including:
Santa Librada
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The Santa Librada target is located approximately one kilometre south of the open pit mines and consists of a major northwest-striking shear zone as well as subsidiary west-northwest-striking veining parallel to the PGR trend further north. The target was defined by basic fieldwork in 2009 and the Company drilled an initial test of 9 holes in late 2009. The main northwest-striking fault appears to have over 200 metres of vertical displacement and the mineralized fault zone has well-developed shearing and brecciation. Of the nine holes drilled, five showed anomalous gold and two showed potential long zones of sheeted veining similar to the ores in the open pits. The best hole, OG-835 had a 23.0 metre wide intercept grading 0.74 grams per tonne gold and 46 grams per tonne silver, or 1.58 grams per tonne gold equivalent at a gold-to-silver ratio of 55:1. Follow-up fieldwork on this target shows it to have an alteration and mineralization style similar to the Plaza de Gallos open pit. The Company plans to follow-up this discovery with an additional 3,000 metre of drilling in the second quarter of 2010, and further drilling if this work is positive.
Los Monos
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The Los Monos vein structure was first recognized in mid-2009 as a 1,600 metre long vein system that had not been previously explored. The Los Monos vein locally has areas with 20 metre widths of quartz veining and stockworking as well as long sections of the vein that are typical of veins mined underground elsewhere in the district. In early 2010, the Company drilled seven core holes on this target and cut strongly mineralized values in three of these holes. Key intercepts were:
- OG-876 with 3.3 metres grading 4.53 grams per tonne gold and 9 grams
per tonne silver, or 4.70 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1;
- OG-881 with 0.7 metres grading 2.62 grams per tonne gold and 4 grams
per tonne silver, or 2.69 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1; and
- OG-884 with 1.9 metres grading 1.95 grams per tonne gold and 116 grams
per tonne silver, or 4.06 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1.
Based on these initial positive results the Company plans to complete further drilling here later in the year.
Picacho SE / Picacho Deeps
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The Company has continued to drill mineralization east of and below the Picacho open pit. Drill intercepts discovered to date indicate potential mineralization for open-pit or underground mining. Most recently two drill holes intersected high grades in holes aimed at underground targets below the planned open pit:
- OG-886 with 5.8 metres grading 9.01 grams per tonne gold and 309 grams
per tonne silver, or 14.63 grams per tonne gold equivalent at a gold-
to-silver ratio of 55:1; and
- OG-890 with 3.7 metres grading 13.04 grams per tonne gold and 11 grams
per tonne silver, or 13.25 grams per tonne gold equivalent at a gold-
to-silver ratio of 55:1
San Amado
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In Q4 2009, the Company began in-fill drilling at the San Amado target. This drilling is focused on several ore-grade drill holes that were completed earlier in 2009. The closely-spaced drilling shows that there is a low-grade zone between the near-surface (where some high-grades were cut in the past) and the 1600 metre level (where some exceptionally high grades were cut in 2008). The drilling also shows that this complex system of veins, cut by post-mineral faults, transitions from low-sulfide banded quartz veins near surface, to high-sulfide veining at depth with very high grades. In 2010, the Company will explore this deeper zone via underground drifting and drilling.
Cerro Colorado
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The Cerro Colorado zone is located in the northern portion of the Ocampo property and has been mapped and sampled in greater detail over the past 3 months. The work has provided encouragement that there may be a blind mineral system below a large silica cap. The target is of comparable size as the main Ocampo underground mine.
"We are encouraged that the first year of substantial exploration at Ocampo in several years has delineated two new potentially commercial deposits at Las Molinas and Santa Eduviges. We are presently working on modeling the deposits and our engineering team is presently evaluating potential mining methods for both of the new deposits. The aggressive 2010 drilling program has an excellent potential for improving on the positive results we achieved in 2009." stated Mr. Drobeck.
EL CUBO MINE EXPLORATION
In late 2009, the Company launched a strategic exploration program at the El Cubo mine after more than a decade of relative inactivity. The program initially identified 16 new exploration drill targets that total over 15 kilometres of cumulative lineal strike length. Subsequent work has prioritized these targets for the 44,000 metre drilling program. To date, the Company has completed 17,028 metres of drilling with three drills and plans to add another drill in the second quarter of 2010.
Dolores - Capulin Target
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The exploration program at El Cubo has already discovered two new mineralized occurrences at Dolores-Capulin and Puertocito. The drilling on the Dolores-Capulin target tested the intersection of an east-northeast-striking mineralized fault zone with the north-northwest-striking Dolores Vein (one of the historic producing veins of the district), but south of all past production and exploration. The drill results from 25 core holes drilled on the Dolores portion to date discovered an altered structure up to 30 metres thick within which mineralization occurs both as traditional simple veins, as well as wide zones of sheeted and stringer veining. Some of the more encouraging intercepts in this drilling include:
- C-478 with 9.1 metres grading 1.74 grams per tonne gold and 172 grams
per tonne silver, or 4.88 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 106.6 metres
- C-479 with 15.8 metres grading 0.36 grams per tonne gold and 42 grams
per tonne silver, or 1.13 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 152.0 metres
- C-479 with 0.7 metres grading 0.80 grams per tonne gold and 233 grams
per tonne silver, or 5.04 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1 from 171.9 metres
- C-494 with 1.2 metres grading 1.17 grams per tonne gold and 209 grams
per tonne silver, or 4.97 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 197.9 metres
Drilling on the east-northeast-striking Capulin Fault zone discovered thick zones of mixed sheeted quartz veining and argillic altered volcanic rocks. The better values appear to occur at the intersection of the Dolores structure with the Capulin Fault zone:
- C-481 with 29.8 metres grading 1.07 grams per tonne gold and 106 grams
per tonne silver, or 3.00 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 157.0 metres
- C-482 with 20.3 metres grading 1.03 grams per tonne gold and 51 grams
per tonne silver, or 1.96 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 117.9 metres
- C-483 with 3.1 metres grading 2.77 grams per tonne gold and 291 grams
per tonne silver, or 8.06 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 132.7 metres
- C-485 with 1.8 metres grading 0.25 grams per tonne gold and 272 grams
per tonne silver, or 5.19 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 226.9 metres
Together these intercepts indicate a complex deposit with significant widths near the intersection of the Capulin and Dolores structures. The Company plans to complete a resource estimate on this area during Q2 2010 to determine if there is potential for an economic deposit.
Puertocito Target
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In mid-2009, geologic mapping and compilation efforts by the Company's geologists determined that there is a major fault structure in the north part of the Villalpando vein system that was previously not considered a major target. This fault, called the Puertocito Fault, may actually be the northward continuation of the Villalpando Vein (the major vein in the district), not the Barragana vein as was previously thought. Previous drilling in this area was primarily angled to the southwest to test the northeast-dipping Barragana trend - but sub-parallel to the Puertocito Fault. New drill testing by Gammon in 2010 has now cut the Puertocito Fault at near right-angles to its dip, and has shown that just 70 metres in the subsurface, the structure contains classic banded epithermal veining and hydrothermal breccia textures with local patches of sulfides - and the first drill hole in the target returned impressive widths and grades. Drilling is presently in progress with two drill rigs on site. The best results to date include:
- C-523 with 4.9 metres grading 12.49 grams per tonne gold and 188 grams
per tonne silver, or 15.91 grams per tonne gold equivalent at a gold-
to-silver ratio of 55:1 from 94.8 metres
- C-524 with 0.5 metres grading 17.00 grams per tonne gold and 35 grams
per tonne silver, or 17.64 grams per tonne gold equivalent at a gold-
to-silver ratio of 55:1 from 137.2 metres
- C-525 with 3.3 metres grading 10.64 grams per tonne gold and 181 grams
per tonne silver, or 13.93 grams per tonne gold equivalent at a gold-
to-silver ratio of 55:1, from 98.2 metres
Fenix Target
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The Company has also completed a series of new drill holes on the Fenix target, just southeast of the Puertocito, where past drilling had encountered some wide intercepts of gold-silver mineralization. The best results of these new drill holes include:
- CM-30 with 32.6 metres grading 0.47 grams per tonne gold and 30 grams
per tonne silver, or 1.02 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 41.8 metres
- CM-30 with 27.1 metres grading 0.70 grams per tonne gold and 28 grams
per tonne silver, or 1.21 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 81.4 metres
- CM-31 with 6.2 metres grading 4.42 grams per tonne gold and 26 grams
per tonne silver, or 4.90 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 76.7 metres
- CM-36 with 15.9 metres grading 0.65 grams per tonne gold and 56 grams
per tonne silver, or 1.68 grams per tonne gold equivalent at a gold-to-
silver ratio of 55:1, from 75.3 metres
Guadalupe y Calvo
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The Company has also recently signed a contract to begin drilling at its Guadalupe y Calvo project in southern Chihuahua in an effort to extend the known mineralization at depth and along strike from the existing mineralization. Present plans provide for the drilling to begin in early April.
Mezquite Project
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In addition to the positive results at the Company's existing projects, Gammon has developed a new grass roots exploration program for the recently acquired Mezquite Project in the Penasquito region. The Company believes the new management team will be able to acquire more new projects during 2010 that will build a solid exploration program for Gammon long-term.
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 El Cubo exploration information has been reviewed by Qualified Person, Mr. Peter Drobeck. All sample analyses for El Cubo were performed by SGS Laboratories, based in Mississauga, Ontario, or in the El Cubo mine lab, 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 ore bodies 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.
About Gammon Gold
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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 Guadalupe y Calvo development property in Chihuahua State. The Company recently completed a purchase option agreement to acquire the Mezquite Project ("Mezquite") in Zacatecas State, Mexico.
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 Gammon, 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 costs and timing of future exploration and reclamation expenses, the future prospects of its exploration drilling programs and the ability to discover potentially commercial targets and develop them, its financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices, cash and 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, anticipated 2009 year-end and 2010 results, operating performance projections for 2009 and 2010, our ability to fully fund our business model, including our capital program and exploration, internally, 2009 and 2010 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, the ability to achieve cash flow margin improvements, further reduction in the open pit stripping ratio, the ability to develop and put into production our exploration targets, and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Gammon, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Gammon's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Gammon. 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 Gammon'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.
Ocampo exploration : http://files.newswire.ca/258/Ocampo_Map.doc
Table 1: OCAMPO SURFACE DRILL RESULTS Q4 2009 - FEB 28, 2010
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Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (m) (g/t) (g/t) (55:1)
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OG-799 250.1 253.7 3.6 0.5 18.0 0.79 San Amado
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OG-807 83.0 86.0 3.0 0.7 4.0 0.80 Las Molinas
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OG-807 167.0 168.0 1.0 0.6 8.0 0.77 Las Molinas
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OG-807 198.0 199.0 1.0 0.8 30.0 1.32 Las Molinas
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OG-808 27.0 31.0 4.0 0.9 16.0 1.21 San Amado
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OG-808 33.5 39.5 6.0 1.0 18.0 1.34 San Amado
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OG-809 33.5 35.0 1.5 0.5 16.0 0.74 Las Molinas
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OG-809 49.7 67.5 17.8 0.5 34.0 1.15 Las Molinas
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OG-809 91.0 91.6 0.6 0.5 71.0 1.77 Las Molinas
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OG-809 95.5 97.3 1.8 10.2 13.0 10.41 Las Molinas
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OG-810 160.0 162.0 2.0 0.0 29.0 0.54 San Amado
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OG-811 99.0 103.0 4.0 0.2 16.0 0.50 Las Molinas
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OG-811 123.0 140.0 17.0 0.8 52.0 1.74 Las Molinas
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OG-811 152.0 162.0 10.0 0.2 11.0 0.35 Las Molinas
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OG-811 171.0 181.0 10.0 0.3 9.0 0.46 Las Molinas
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OG-811 196.0 197.0 1.0 1.0 36.0 1.63 Las Molinas
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OG-812 12.3 13.8 1.6 13.4 33.0 14.01 San Amado
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OG-812 91.5 94.6 3.1 2.2 173.0 5.37 San Amado
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OG-813 66.2 70.1 3.9 0.1 44.0 0.92 San Amado
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OG-814 45.5 54.0 8.5 1.7 37.0 2.38 Las Molinas
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OG-814 76.0 78.0 2.0 0.4 15.0 0.64 Las Molinas
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OG-815 35.0 38.0 3.0 0.2 12.0 0.42 Las Molinas
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OG-815 56.0 59.0 3.0 0.1 21.0 0.48 Las Molinas
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OG-815 66.0 68.0 2.0 1.7 87.0 3.32 Las Molinas
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OG-815 74.0 85.0 11.0 0.4 6.0 0.52 Las Molinas
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OG-815 91.0 94.0 3.0 2.3 8.0 2.40 Las Molinas
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OG-815 98.0 106.0 8.0 0.8 33.0 1.37 Las Molinas
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OG-816 229.5 230.2 0.7 0.5 7.0 0.61 San Amado
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OG-816 255.7 257.4 1.7 0.4 23.0 0.81 San Amado Bajo
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OG-817 67.0 68.0 1.0 4.2 9.0 4.35 Las Molinas
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OG-817 85.0 88.0 3.0 1.3 57.0 2.37 Las Molinas
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OG-817 88.0 104.0 16.0 0.3 13.0 0.50 Las Molinas
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OG-818 33.0 34.0 1.0 2.9 5.0 3.03 Las Molinas
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OG-820 125.3 126.4 1.1 0.6 36.0 1.23 La Leona
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OG-821 27.6 30.5 2.9 0.7 30.0 1.28 Las Molinas
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OG-821 63.0 72.5 9.5 0.4 6.0 0.49 Las Molinas
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OG-821 99.4 101.0 1.6 2.2 59.0 3.29 Las Molinas
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OG-822 69.0 71.0 2.0 1.0 26.0 1.48 Picacho SE
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OG-823 61.0 62.0 1.0 0.5 64.0 1.61 Picacho SE
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OG-824 70.0 71.5 1.5 0.1 60.0 1.18 Las Molinas
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Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (55:1)
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OG-824 159.0 163.5 4.5 0.8 22.0 1.20 Las Molinas
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OG-824 180.5 183.5 3.0 0.3 17.0 0.44 Las Molinas
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OG-824 186.5 191.0 4.5 0.1 17.0 0.42 Las Molinas
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OG-825 101.0 102.9 1.9 2.0 107.0 3.94 La Leona
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OG-827 118.2 118.9 0.6 4.0 160.0 6.89 San Amado al alto
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OG-829 87.1 89.7 2.6 1.2 63.0 2.37 Las Molinas
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OG-830 202.5 203.0 0.5 3.1 6.0 3.21 San Amado al alto
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OG-831 11.0 14.0 3.0 0.7 38.0 1.38 Picacho SE
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OG-831 34.0 37.0 3.0 5.4 382.0 12.30 Picacho SE
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OG-831 52.0 53.0 1.0 0.2 25.0 0.61 Picacho SE
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OG-831 66.0 67.0 1.0 0.5 10.0 0.65 Picacho SE
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OG-831 74.0 75.0 1.0 0.6 33.0 1.24 Picacho SE
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OG-831 94.0 102.0 8.0 0.3 24.0 0.77 Picacho SE
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OG-833 31.0 33.0 2.0 1.0 6.0 1.07 Santa Librada
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OG-833 96.0 97.0 1.0 0.7 8.0 0.84 Santa Librada
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OG-834 82.2 84.2 2.0 1.7 7.0 1.79 La Leona
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OG-834 96.1 96.9 0.8 1.1 91.0 2.71 La Leona
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OG-834 114.4 114.9 0.5 0.4 89.0 2.06 La Leona
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OG-835 61.0 84.0 23.0 0.7 46.0 1.58 Santa Librada
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OG-835 88.0 90.0 2.0 0.6 49.0 1.46 Santa Librada
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OG-836 111.0 113.0 2.0 0.3 1.0 0.35 Santa Librada
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OG-837 281.8 282.3 0.5 0.3 30.0 0.85 San Amado al alto
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OG-838 176.5 197.5 21.0 0.6 18.0 0.94 Las Molinas
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OG-840 87.3 98.8 11.5 0.5 16.0 0.75 Las Molinas
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OG-840 105.8 113.2 7.4 2.9 107.0 4.82 Las Molinas
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OG-841 99.7 104.8 5.1 0.4 14.0 0.62 Las Molinas
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OG-841 157.9 161.6 3.7 0.4 9.0 0.55 Las Molinas
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OG-841 190.6 196.6 6.0 0.3 7.0 0.42 Las Molinas
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OG-841 196.6 199.2 2.6 5.9 24.0 6.35 Las Molinas
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OG-841 199.2 202.8 3.6 0.3 7.0 0.46 Las Molinas
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OG-846 77.0 102.0 25.0 0.2 29.0 0.70 Santa Librada
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OG-847 109.4 111.4 2.0 0.4 25.0 0.83 Las Molinas
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OG-853 16.0 18.0 2.0 1.7 4.0 1.81 Santa Librada
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OG-865 126.6 130.1 3.5 0.4 22.0 0.76 San Amado
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OG-865 141.8 144.8 3.1 0.2 59.0 1.24 San Amado
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OG-865 148.8 151.9 3.1 0.4 27.0 0.92 San Amado
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OG-865 178.2 180.2 2.0 0.2 24.0 0.64 San Amado
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OG-866 67.0 68.7 1.7 0.9 9.0 1.02 La Leona
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OG-866 106.7 107.4 0.7 1.0 41.0 1.77 La Leona
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OG-866 149.7 150.3 0.6 1.1 1.0 1.08 La Leona
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OG-866 173.5 174.5 1.0 0.5 52.0 1.40 La Leona
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OG-867 29.0 32.0 3.0 0.7 1.0 0.72 La Rosita
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Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (55:1)
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OG-867 43.0 45.0 2.0 0.4 1.0 0.43 La Rosita
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OG-867 47.0 48.0 1.0 0.3 2.0 0.34 La Rosita
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OG-869 81.4 83.5 2.1 1.4 9.0 1.57 La Leona
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OG-869 116.8 118.8 2.0 1.1 9.0 1.27 La Leona
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OG-869 124.3 125.4 1.1 1.5 24.0 1.93 La Leona
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OG-869 131.0 131.5 0.5 0.5 16.0 0.82 La Leona
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OG-870 93.9 95.1 1.1 0.3 3.0 0.31 Los Monos
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OG-871 122.2 124.0 1.8 0.1 7.0 0.23 Altagracia
_Magdalena
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OG-871 288.0 289.5 1.5 1.7 122.0 3.89 Altagracia
_Magdalena
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OG-871 300.9 302.0 1.1 0.2 16.0 0.49 Altagracia
_Magdalena
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OG-872 103.8 105.8 2.0 0.9 5.0 1.01 La Leona
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OG-873 81.7 82.7 1.0 0.5 1.0 0.48 Los Monos
-------------------------------------------------------------------------
OG-874 63.6 64.1 0.5 0.4 8.0 0.50 La Leona
-------------------------------------------------------------------------
OG-874 95.3 95.8 0.5 7.1 154.0 9.92 La Leona
-------------------------------------------------------------------------
OG-876 113.0 116.3 3.3 4.5 9.0 4.70 Los Monos
-------------------------------------------------------------------------
OG-878 121.0 121.5 0.5 0.3 13.0 0.51 La Leona
-------------------------------------------------------------------------
OG-879 99.9 100.4 0.6 0.3 2.0 0.32 Los Monos
-------------------------------------------------------------------------
OG-879 104.0 107.8 3.8 0.4 1.0 0.40 Los Monos
-------------------------------------------------------------------------
OG-880 37.0 38.5 1.5 0.6 2.0 0.66 Altagracia
_Magdalena
-------------------------------------------------------------------------
OG-881 116.1 116.8 0.7 2.6 4.0 2.69 Los Monos
-------------------------------------------------------------------------
OG-882 83.6 86.6 3.0 0.2 12.0 0.39 Altagracia
_Magdalena
-------------------------------------------------------------------------
OG-882 224.0 228.3 4.3 0.5 57.0 1.50 Altagracia
_Magdalena
-------------------------------------------------------------------------
OG-883 15.0 16.0 1.0 1.5 21.0 1.90 Picacho SE
-------------------------------------------------------------------------
OG-883 47.8 56.2 8.4 0.9 5.0 1.00 Picacho SE
-------------------------------------------------------------------------
OG-883 81.5 84.7 3.2 5.3 132.0 7.74 Picacho SE
-------------------------------------------------------------------------
OG-883 95.5 96.9 1.4 0.9 2.0 0.97 Picacho SE
-------------------------------------------------------------------------
OG-883 99.0 102.2 3.2 0.4 57.0 1.41 Picacho SE
-------------------------------------------------------------------------
OG-883 103.3 104.3 1.0 2.3 87.0 3.85 Picacho SE
-------------------------------------------------------------------------
OG-883 109.3 109.8 0.5 0.3 2.0 0.34 Picacho SE
-------------------------------------------------------------------------
OG-883 112.9 115.9 3.0 0.4 5.0 0.51 Picacho SE
-------------------------------------------------------------------------
OG-884 55.1 55.6 0.5 5.8 24.0 6.22 Los Monos
-------------------------------------------------------------------------
OG-884 99.7 101.6 1.9 2.0 116.0 4.06 Los Monos
-------------------------------------------------------------------------
OG-886 133.5 139.3 5.8 9.0 309.0 14.63 Picacho SE
-------------------------------------------------------------------------
OG-888 68.0 70.0 2.0 1.0 61.0 2.08 San Amado
-------------------------------------------------------------------------
OG-888 99.0 100.6 1.6 0.9 1.0 0.92 San Amado
-------------------------------------------------------------------------
OG-890 12.8 16.3 3.5 0.2 19.0 0.58 Picacho SE
-------------------------------------------------------------------------
OG-890 21.2 28.2 7.0 0.9 87.0 2.49 Picacho SE
-------------------------------------------------------------------------
OG-890 29.3 32.9 3.7 13.0 11.0 13.25 Picacho SE
-------------------------------------------------------------------------
OG-890 50.8 58.1 7.4 0.8 37.0 1.49 Picacho SE
-------------------------------------------------------------------------
OG-890 66.2 70.9 4.8 0.7 23.0 1.10 Picacho SE
-------------------------------------------------------------------------
OG-891 0.0 18.9 18.9 1.5 51.0 2.45 Las Molinas
-------------------------------------------------------------------------
OG-891 30.8 33.5 2.7 0.4 20.0 0.80 Las Molinas
-------------------------------------------------------------------------
Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (55:1)
-------------------------------------------------------------------------
OG-893 26.5 31.0 4.5 0.3 18.0 0.58 Las Molinas
-------------------------------------------------------------------------
OG-893 45.3 72.4 27.1 1.4 44.0 2.16 Las Molinas
-------------------------------------------------------------------------
OG-898 221.8 222.8 0.9 0.5 39.0 1.19 El Rayo
-------------------------------------------------------------------------
OG-901 64.5 65.7 1.2 1.1 4.0 1.13 Las Molinas SW
-------------------------------------------------------------------------
OG-901 69.1 70.4 1.3 0.6 2.0 0.59 Las Molinas SW
-------------------------------------------------------------------------
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.
Table 2: OCAMPO UNDERGROUND DRILL RESULTS Q4 2009 - FEB 28, 2010
-------------------------------------------------------------------------
Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (m) (g/t) (g/t) (55:1)
-------------------------------------------------------------------------
OU-681 265.0 266.0 1.0 2.6 190.0 6.03 Jesus Maria
-------------------------------------------------------------------------
OU-737 187.2 188.1 0.9 1.2 74.7 2.57 Jesus Maria
-------------------------------------------------------------------------
OU-737 194.0 195.0 1.0 1.1 175.0 4.29 Jesus Maria
-------------------------------------------------------------------------
OU-737A 180.2 181.8 1.6 1.2 115.2 3.26 Jesus Maria
-------------------------------------------------------------------------
OU-657 130.4 132.0 1.6 9.7 374.9 16.48 Belen
-------------------------------------------------------------------------
OU-661 102.5 105.0 2.5 2.0 175.0 5.20 Belen
-------------------------------------------------------------------------
OU-717 164.3 167.9 3.6 19.5 138.3 22.03 Belen
-------------------------------------------------------------------------
OU-719 138.5 149.3 10.8 6.5 803.4 21.11 Belen
-------------------------------------------------------------------------
OU-640 109.5 111.0 1.5 3.6 43.0 4.34 Sta. Eduviges
-------------------------------------------------------------------------
OU-652 166.4 167.2 0.9 3.8 138.0 6.27 Sta. Eduviges
-------------------------------------------------------------------------
OU-658 195.0 198.0 3.0 3.7 89.2 5.33 Sta. Eduviges
-------------------------------------------------------------------------
OU-663 186.5 188.0 1.5 4.2 7.7 4.30 Sta. Eduviges
-------------------------------------------------------------------------
OU-665 104.6 105.3 0.7 4.5 181.0 7.81 Sta. Eduviges
-------------------------------------------------------------------------
OU-666A 81.0 82.0 1.0 3.0 128.0 5.33 Sta. Eduviges
-------------------------------------------------------------------------
OU-667 80.5 81.4 1.0 3.5 283.0 8.64 Sta. Eduviges
-------------------------------------------------------------------------
OU-673 102.6 104.3 1.7 2.8 253.8 7.41 Sta. Eduviges
-------------------------------------------------------------------------
OU-674 108.0 117.5 9.5 1.3 77.1 2.73 Sta. Eduviges
-------------------------------------------------------------------------
OU-674 121.3 122.7 1.4 4.4 9.5 4.56 Sta. Eduviges
-------------------------------------------------------------------------
OU-674 266.2 268.2 2.0 5.1 7.6 5.28 Sta. Eduviges
-------------------------------------------------------------------------
OU-675 96.4 103.4 7.0 1.4 127.6 3.70 Sta. Eduviges
-------------------------------------------------------------------------
OU-694 97.6 99.0 1.4 13.2 421.0 20.85 Sta. Eduviges
-------------------------------------------------------------------------
OU-738 197.3 198.2 1.0 4.2 29.7 4.71 Sta. Eduviges
-------------------------------------------------------------------------
OU-739 63.1 65.0 1.9 13.1 142.9 15.67 Sta. Eduviges
-------------------------------------------------------------------------
OU-739 197.0 198.2 1.2 4.5 64.7 5.65 Sta. Eduviges
-------------------------------------------------------------------------
OU-741 64.5 65.5 1.0 14.3 148.0 16.94 Sta. Eduviges
-------------------------------------------------------------------------
OU-742 193.5 194.7 1.2 3.6 3.5 3.69 Sta. Eduviges
-------------------------------------------------------------------------
OU-743 78.6 84.5 5.9 5.8 80.1 7.26 Sta. Eduviges
-------------------------------------------------------------------------
OU-743 198.5 203.2 4.7 35.1 383.1 42.09 Sta. Eduviges
-------------------------------------------------------------------------
OU-744 135.2 142.8 7.7 1.0 107.9 2.97 San Jose
-------------------------------------------------------------------------
OU-747 147.9 148.4 3.5 4.6 335.3 10.71 San Jose
-------------------------------------------------------------------------
OU-755 101.0 102.2 1.3 2.9 51.3 3.79 Esperanza
-------------------------------------------------------------------------
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.
El Cubo exploration : http://files.newswire.ca/258/El_Cubo_Map.doc
Table 3: EL CUBO RESULTS Q4 2009 - FEB 28, 2010
-------------------------------------------------------------------------
Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (m) (g/t) (g/t) (55:1)
-------------------------------------------------------------------------
C-475 103.3 106.1 2.8 0.5 23.0 0.95 Dolores SE
-------------------------------------------------------------------------
C-476 128.6 137.7 9.1 1.2 29.0 1.70 Dolores SE
-------------------------------------------------------------------------
C-477 152.7 156.1 3.4 0.3 24.0 0.78 Dolores SE
-------------------------------------------------------------------------
C-478 106.6 115.7 9.1 1.7 172.0 4.88 Dolores SE
-------------------------------------------------------------------------
C-479 147.5 148.5 1.0 1.1 210.0 4.95 Dolores SE
-------------------------------------------------------------------------
C-479 152.0 167.8 15.8 0.4 42.0 1.13 Dolores SE
-------------------------------------------------------------------------
C-479 171.9 172.6 0.7 0.8 233.0 5.04 Dolores SE
-------------------------------------------------------------------------
C-480 193.3 202.8 9.5 0.0 0.0 0.00 Capulin
-------------------------------------------------------------------------
C-481 157.0 186.8 29.8 1.1 106.0 3.00 Capulin
-------------------------------------------------------------------------
C-482 117.9 138.2 20.3 1.0 51.0 1.96 Capulin
-------------------------------------------------------------------------
C-483 132.7 135.8 3.1 2.8 291.0 8.06 Capulin
-------------------------------------------------------------------------
C-484 77.0 77.2 0.2 0.3 90.0 1.91 Dolores SE
-------------------------------------------------------------------------
C-485 181.7 183.9 2.2 0.7 10.0 0.86 Capulin
-------------------------------------------------------------------------
C-485 191.7 196.1 4.4 0.8 17.0 1.15 Capulin
-------------------------------------------------------------------------
C-485 226.9 228.7 1.8 0.3 272.0 5.19 Capulin
-------------------------------------------------------------------------
C-490 206.4 207.3 0.9 1.8 134.0 4.23 Capulin
-------------------------------------------------------------------------
C-491 203.7 204.1 0.4 0.5 40.0 1.20 Capulin
-------------------------------------------------------------------------
C-492 218.2 221.6 3.4 0.4 11.0 0.56 Capulin
-------------------------------------------------------------------------
C-493 197.8 198.1 0.3 0.7 152.0 3.46 Capulin
-------------------------------------------------------------------------
C-494 197.9 199.1 1.2 1.2 209.0 4.97 Dolores SE
-------------------------------------------------------------------------
C-495 217.5 229.5 12.0 0.3 34.0 0.95 Dolores SE
-------------------------------------------------------------------------
C-498 258.8 259.8 1.0 0.7 87.0 2.28 Dolores SE
-------------------------------------------------------------------------
C-498 262.8 263.1 0.3 0.8 43.0 1.55 Dolores SE
-------------------------------------------------------------------------
C-499 30.1 31.0 0.9 0.3 27.0 0.79 Capulin
-------------------------------------------------------------------------
C-503 106.7 108.2 1.5 10.5 6.0 10.60 Capulin
-------------------------------------------------------------------------
C-506 62.3 85.8 23.5 0.2 7.0 0.30 Dolores SE
-------------------------------------------------------------------------
C-509 103.1 108.8 5.7 0.9 31.0 1.48 Dolores SE
-------------------------------------------------------------------------
C-510 115.7 131.5 15.8 1.1 48.0 1.92 Dolores SE
-------------------------------------------------------------------------
C-511 152.3 165.3 13.0 0.5 16.0 0.77 Dolores SE
-------------------------------------------------------------------------
C-519 56.3 56.9 1.3 2.2 128.0 4.53 Capulin
-------------------------------------------------------------------------
C-520 207.3 210.9 3.6 0.2 53.0 1.16 Villalpando
_Capulin
-------------------------------------------------------------------------
C-523 87.4 89.5 2.2 2.4 75.0 3.77 Puertocito
-------------------------------------------------------------------------
C-523 94.8 99.7 4.9 12.5 188.0 15.91 Puertocito
-------------------------------------------------------------------------
C-524 40.3 41.2 0.9 2.1 139.0 4.63 Puertocito
-------------------------------------------------------------------------
C-524 137.2 137.7 0.5 17.0 35.0 17.64 Puertocito
-------------------------------------------------------------------------
C-524 152.3 152.8 0.6 1.3 134.0 3.74 Puertocito
-------------------------------------------------------------------------
C-525 98.2 101.5 3.3 10.6 181.0 13.93 Puertocito
-------------------------------------------------------------------------
C-527 179.2 180.0 0.8 3.0 5.0 3.05 Puertocito
-------------------------------------------------------------------------
CM-29 51.4 75.0 23.6 1.3 44.0 2.15 Fenix
-------------------------------------------------------------------------
CM-30 41.8 74.4 32.6 0.5 30.0 1.02 Fenix
-------------------------------------------------------------------------
Hole From To Length Gold Silver Au Eq. VEIN
(m) (m) (m) (g/t) (g/t) (55:1)
-------------------------------------------------------------------------
CM-30 81.4 108.5 27.1 0.7 28.0 1.21 Fenix
-------------------------------------------------------------------------
CM-31 29.0 37.8 8.8 0.4 35.0 0.99 Fenix
-------------------------------------------------------------------------
CM-31 56.0 67.5 11.5 0.2 10.0 0.35 Fenix
-------------------------------------------------------------------------
CM-31 76.7 82.9 6.2 4.4 26.0 4.90 Fenix
-------------------------------------------------------------------------
CM-31 117.8 135.5 17.7 0.4 18.0 0.70 Fenix
-------------------------------------------------------------------------
CM-32 22.7 23.4 0.7 6.2 185.0 9.59 Fenix
-------------------------------------------------------------------------
CM-33 51.6 60.4 8.8 1.3 35.0 1.97 Fenix
-------------------------------------------------------------------------
CM-33 81.8 89.7 7.9 1.7 39.0 2.36 Fenix
-------------------------------------------------------------------------
CM-34 148.4 155.5 7.1 0.4 9.0 0.60 Fenix
-------------------------------------------------------------------------
CM-36 75.3 91.2 15.9 0.7 56.0 1.68 Fenix
-------------------------------------------------------------------------
CM-37 142.6 154.4 11.8 0.5 9.0 0.64 Fenix
-------------------------------------------------------------------------
CM-38 112.5 115.7 3.2 0.6 16.0 0.91 Fenix
-------------------------------------------------------------------------
CM-38 118.9 128.0 9.1 0.8 18.0 1.10 Fenix
-------------------------------------------------------------------------
CM-39 200.0 229.4 29.4 1.1 12.0 1.35 Fenix
-------------------------------------------------------------------------
Note: The El Cubo exploration information has been reviewed by Qualified Person, Mr. Peter Drobeck. All sample analyses for El Cubo were performed by SGS Laboratories, based in Mississauga, Ontario, or in the El Cubo mine lab, using standard fire assay procedures (and with ICP finish for samples completed at SGS). True widths have not been calculated.
For further information: Peter Drobeck, Senior VP, Explorations & Business Development, Gammon Gold Inc., (416) 646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., (902) 468-0614; www.gammongold.com
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