Gammon Gold has recorded a 23% drop in its gold production in the first quarter of 2010.

Gammon said its gold output during the first three months of 2010 fell to 28,431oz from 36,829oz produced during the same period in 2009.

Silver production was also down to 1.28 million ounces compared to 1.35 million last year.

The company said its Ocampo Picacho open pit mine suffered low output when the company encountered larger than anticipated voids from previous mining activities in that area.

Production capacity was also affected during the quarter as equipment at the company was replaced.

Gammon said it sold gold and silver was, however, still at a higher price compared to Q1 2009.

The company received $1,107 an ounce for gold and $16.81 an ounce for silver, up from $903 an ounce of gold and $12.63 for silver respectively in the first quarter of 2009.