Canada’s Gammon Gold said third-quarter production at its Ocampo mine, Mexico, has increased 10% sequentially.

During the third quarter, the Ocampo mine produced 27,018 gold ounces and 1,189,769 silver ounces, or 48,650 gold equivalent ounces, against 44,363 gold equivalent ounces produced in the second quarter.

Total cash costs dropped 4% to $414 of gold equivalent ounce quarter-over-quarter, said Gammon Gold, which is buying rival Capital Gold.

The Ocampo mine has reported increased productivity and reduced cash costs despite heavy rainfalls as the strong operating team has mitigated the impact on mining operations, the company said in a statement.