Gammon Gold Lowers Cost Guidance for 2010

19 September 2010 (Last Updated September 19th, 2010 18:30)

Gammon Gold has lowered its cost guidance for 2010 on strong output from its Ocampo mine in northern Mexico. The company expects cash costs for 2010 to remain at $410-$435 per gold equivalent ounce, down 3.3% from the previous guidance of $425-$450. The Ocampo mine

Gammon Gold has lowered its cost guidance for 2010 on strong output from its Ocampo mine in northern Mexico.

The company expects cash costs for 2010 to remain at $410-$435 per gold equivalent ounce, down 3.3% from the previous guidance of $425-$450.

The Ocampo mine is expected to produce 100,000-110,000oz of gold and 4.40-4.95 million ounces of silver.

The El Cubo mine in central Mexico produced 20,596 gold equivalent ounces before operations were suspended in June.