Mexican Mining

[Ed Monton]

Globe/CP say Gammon Lake Resources singing Ocampo mio


2005-12-08 08:27 ET - In the News

The Globe and Mail reports in its Thursday edition that Gammon Lake Resources says fresh discoveries in Mexico will put it in the big leagues of gold and silver. A Canadian Press post to The Globe reports Gammon said Wednesday a study by Mintec shows proven and probable reserves of almost 4.2 million ounces of gold equivalent at its Ocampo mine. That includes 2.4 million ounces of gold, at 1.19 grams of gold per tonne. It also includes 110 million ounces of silver at 55 grams of silver per tonne. "This represents an 86-per-cent increase in proven and probable reserves ... from those developed for the 2004 feasibility study," said Gammon. The total "inferred" reserves, which estimates gold or silver based on the drilling results, is up to 10.8 million ounces of gold equivalent, a leap from the 7.5 million ounces of reserves last year. Gammon president Fred George said the work by Mintec shows the firm has met predictions. "We will show the world in the first quarter that this small Canadian company from Halifax will become the largest single gold producer in Mexico," he said. On the Toronto Stock Exchange Wednesday, Gammon shares closed up 37 cents at $11.01.