MEXICO – GAMMON LAKE RESOURCES of Dartmouth, Nova Scotia, says the updated resource study for its Ocampo gold-silver project in Chihuahua boosts proven and probable reserves by 86% and measured and indicated resources by 68%. In all categories the deposit may contain 10.8 million oz of gold equivalent.
Specifically, the proven and probable reserves are 61.68 million tonnes at 1.19 g/t Au and 55.00 g/t Ag. In the measured and indicated resource category (which includes proven and probable reserves), Gammon Lake counts 83.78 million tonnes at 1.07 g/t Au and 50.00 g/t Ag; this is more than double the amount estimated in the 2004 feasibility study. There are also inferred resources of 29.33 million tonnes at 3.13 g/t Au and 172.00 g/t Ag. Detailed figures for various areas of the project at posted at www.GammonLake.com.
Open pit heap leaching at Ocampo is scheduled to begin this month. The first gold and silver production is expected in Q1 2006. The production target is an average of 170,000 oz of gold and 6.2 million oz of silver annually.