Gammon Gold Announces Significant Drill Results At Ocampo

May 5, 2011 (Canada NewsWire Group) --

TORONTO, May 5 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX: GAM and NYSE: GRS): Gammon is pleased to provide an update of drill results from the Ocampo exploration program for the first four months of 2011.  As of April 30, 2011, the Company has completed a total of 56,704 metres of drilling at Ocampo, utilizing twelve drill rigs working on surface and underground.

Ocampo Underground Drilling Highlights

During the first four months of the year the Company has completed 145 core holes for 28,439 metres from underground. The primary focus of the underground drilling is to extend and delineate known resources along 6 vein structures in the Northeast Underground mine, the Level 2 mine and the Santa Eduviges mine.  Highlights of the program are as follows:

Aventurero

• Drilling highlights include:
• Hole OU-826, 1.0 metre grading 105.65 grams per tonne gold equivalent⁽¹⁾
• Hole OU-859, 7.4 metres grading 11.78 grams per tonne gold equivalent⁽¹⁾
• Hole OU-884, 3.3 metres grading 48.11 grams per tonne gold equivalent⁽¹⁾
• Hole OU-887, 0.8 metres grading 17.84 grams per tonne gold equivalent⁽¹⁾

San Amado

• Drilling highlights include:
• Hole OU-948, 2.0 metres grading 25.20 grams per tonne gold equivalent⁽¹⁾
• Hole OU-1063, 1.3 metres grading 54.88 grams per tonne gold equivalent⁽¹⁾
• Hole OU-1064, 0.5 metres grading 35.43 grams per tonne gold equivalent⁽¹⁾
• Hole OU-1067, 0.7 metres grading 64.42 grams per tonne gold equivalent⁽¹⁾

Rosario

• Drilling highlights include:
• Hole OU-978, 0.6 metres grading 63.43 grams per tonne gold equivalent⁽¹⁾
• Hole OU-901, 3.3 metres grading 6.09 grams per tonne gold equivalent⁽¹⁾

San Jose

• Drilling highlights include:
• Hole OU-1018, 1.3 metres grading 11.69 grams per tonne gold equivalent⁽¹⁾
• Hole OU-1023, 0.4 metres grading 42.53 grams per tonne gold equivalent⁽¹⁾
• Hole OU-1026, 3.5 metres grading 16.61 grams per tonne gold equivalent⁽¹⁾

El Rayo

• Drilling highlight includes:
• Hole OU-1140, 0.6 metres grading 37.16 grams per tonne gold equivalent⁽¹⁾

"The underground reserve drilling program has progressed very well in the first four months of 2011 with six active underground drill rigs." said Chris Bostwick, Senior Vice President, Technical Services. He continued, "We are particularly pleased with the bonanza style grades encountered at Aventurero and San Amado and note these two veins are already the largest in terms of ounces and strike length within the Northeast system of veins. Drilling at Santa Eduviges continues to produce results in line with reserve grades and ore vein thicknesses and we have just begun an underground follow-up program at El Rayo based on the successes of the surface drilling program there."

Ocampo Surface Drilling Highlights

During the first four months of the year the Company has completed 196 core holes for 28,265 metres on surface.  This work has been focused on five close-in targets where reserves were defined in late 2010 but remain open to expansion.  The work has proven very positive in that both high grades suitable for underground mining as well mineralization in configurations possible for open pit extraction, have been discovered.  Highlights of the program are as follow:

Altagracia

• Drilling highlights include:
• Hole OG-1269, 5.1 metres grading 14.45 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1243, 0.5 metre grading 6.10 grams per tonne gold equivalent⁽¹⁾

Aventurero

• Drilling highlights include:
• Hole OG-1273, 2.4 metres grading 7.46 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1290, 0.9 metres grading 15.34 grams per tonne gold equivalent⁽¹⁾

Belen Upper

• Drilling highlights include:
• Hole OG-1285, 24.0 metres grading 2.76 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1291, 10.7 metres grading 2.66 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1272A, 32.6 metres grading 1.56 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1307, 6.7 metres grading 9.10 grams per tonne gold equivalent⁽¹⁾

El Rayo

• Drilling highlights include:
• Hole OG-1323, 0.5 metres grading 98.71 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1331, 1.8 metres grading 42.74 grams per tonne gold equivalent⁽¹⁾

Jesus Maria

• Drilling highlights include:
• Hole OG-1282, 3.1 metres grading 10.99 grams per tonne gold equivalent⁽¹⁾
• Hole OG-1305, 1.7 metres grading 7.90 grams per tonne gold equivalent⁽¹⁾

"The surface exploration program continues to deliver excellent results at Ocampo. The results from the Altagracia vein have successfully delineated both high-grade ores as well as thick zones of mineralization that will be considered for potential open pit exploitation once the drilling is completed." stated Peter Drobeck, Senior Vice President of Exploration and Business Development.  He continued, "Results from the Belen Upper vein have also discovered some very high grades as well as thick zones of mineralization, and results from El Rayo have shown some of the highest grades on the property for the year.  The Company intends to continue drilling these and several new exploration targets during the second quarter of 2011."

Note:  1) All gold equivalent grades are calculated at the Company's long term ratio of 55:1.

This press release sets out the gold and silver grades found in the samples taken from various targets.  Not all of these targets have been categorized as a mineral resource deposit under applicable Canadian mineral resource reporting standards, and it is uncertain if further exploration will result in these targets being delineated as mineral resources.  The grades encountered so far should not be taken as representative of the ore bodies in question as there has been insufficient exploration to define a mineral resource, and such grades may not prove representative of the deposits if and when the same are delineated as mineral resources.

About Gammon Gold
Gammon Gold Inc. is a publicly traded mid-tier gold and silver producer engaged in the mining, development, exploration and acquisition of resource properties in North America. The Company owns and operates three producing mines in Mexico, the Ocampo mine in Chihuahua State, the El Chanate project in Sonora State, and the El Cubo mine in Guanajuato State. Gammon Gold also owns the Guadalupe y Calvo advanced exploration property in Chihuahua State and the Orion advanced exploration property in the State of Nayarit, and has six exploration properties in various states throughout Mexico. Gammon's executive office is located in Toronto, Ontario Canada.

Cautionary Statement

Cautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. This press release uses certain terms, such as "measured," "indicated," and "inferred" "resources" that the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in Gammon Gold's Annual Report on Form 40-F, which may be secured from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words ''believe'', ''expect'', ''anticipate'', ''target'', ''continue'', ''estimate'', ''may'', and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the grades of additional underground and surface drilling programs at Ocampo, the ability to delineate additional resources or reserves as a result, the suitability of targets for future underground or open pit mining at Ocampo, statements regarding anticipated future financial and operational performance, the future price of gold and silver, the timing of re-commissioning and re-commencement of production at El Cubo, the de-risking of operations, future exploration results of its exploration and development program at Ocampo, the Company's ability to delineate additional resources and reserves as a result of such program, and the company's ability to mine such targets by mid-2011, statements regarding its financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of completion of the Ocampo expansion program and improvements to the heap leach pad, costs and timing of the development and commencement of production of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated 2011 results, operating performance projections for 2011, our ability to fully fund our business model internally, 2011 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Company's loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

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Table 1: Significant New Ocampo Underground Drilling Results, 2011
(above 2.00 grams per tonne gold equivalent)

Note:  The Ocampo underground exploration information has been reviewed by Qualified Person, Mr. Ian Hardesty. All gold sample analyses for Ocampo were performed by Chemex Laboratories, based in Vancouver, British Columbia, using standard fire assay procedures, with an AA finish. Silver is analyzed using a four-acid digestion with ICP finish, and fire assays for samples over 100 grams per tonne silver. The Company maintains a Quality Assurance - Quality Control program including the insertion of commercial control reference pulps and blanks in all its drill programs, along with a dedicated QA-QC engineer to monitor results. Sample lengths are not necessarily true widths.

Table 2:  Significant New Ocampo Surface Drilling Results, 2011
(Above 0.30 grams per tonne gold equivalent)

Note:  The Ocampo surface exploration information has been reviewed by Qualified Person, Mr. Peter Drobeck. All gold sample analyses for Ocampo were performed by ALS-Chemex Laboratories, based in Vancouver, British Columbia, using standard fire assay procedures with an AA finish. Silver is analyzed using a four-acid digestion with ICP finish, and fire assays for samples over 100 grams per tonne silver. The Company maintains a Quality Assurance - Quality Control program including the insertion of commercial control reference pulps and blanks in all its drill programs, along with a dedicated QA-QC engineer to monitor results. Sample lengths are not necessarily true widths.

For further information please visit the Gammon gold website at www.gammongold.com or contact: