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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (44703)	10/7/2009 10:26:20 PM
From: LoneClone	Read Replies (1) \| Respond to of 197060

Gammon Gold performance indicators good news to investors Substantial improvement in key performance indicators for its Mexican gold mines helped Gammon Lake stocks hit a 52-week high on the TSX. Author: Dorothy Kosich Posted: Wednesday , 07 Oct 2009 RENO, NV - mineweb.co.za Halifax, Nova Scotia-based Gammon Gold reported Tuesday the expansion program and final commissioning of the Ocampo gold-silver mine in Chihuahua, Mexico was largely completed in the latter half of the third quarter and has bolstered a number of key business performance indicators. The company forecast that it expects to produce 80,000 gold equivalent ounces at cash costs ranging from US$380 to US$400 per GEO. Gammon (TSX: GAM / NYSE: GRS) hopes to produce between 235,000 gold equivalent ounces and 265,000 ounces at a cash cost of $410 to $445 per ounce for 2009. Total cash costs for the third quarter dropped 36% over the same period of last year. For the nine-month period of 2009, total cash costs decreased 24%. The third and final phase of mill expansion was fully commissioned at the end of the third quarter, allowing the facility to treat up to 3,400 tpd, a 183% increase over the 1,200 tpd averaged in 2007. A new stacking design at the existing heap leach initiated last month is expected to increase current pad capacity by 10 million tonnes, which Gammon Gold officials said "is expected to significantly increase future heap leach metal production." Meanwhile, Ocampo is now powered off the Mexico power grid network, which is expected to save US$20 to $25 per GEO. The company has completed 72% of its planned 123,000 meter reserve replacement drilling program at Ocampo, and launched a two-year, 40,000-meter drilling program at its El Cubo gold mine, also in Mexico. After the news was released on Tuesday, Gammon Gold shares hit a 52-week high of C$10.82, closing at $9.90/sh at the end of trading Tuesday on the TSX. On September 30th, the company reported the discovery of "significant mineralization" at the Santa Eduviges, Las Molinas and San Amado areas at Ocampo.