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MEI Online: Commodities: Metallic Ores: Gold: Latest News: January 30th 2006


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:: Gammon Lake Announces Open Pit Mining and Commencement of Heap Leach Operations at the Ocampo Gold-Silver Project

GRS is pleased to announce that mining and heap leach operations have commenced at the Company's 100% controlled Ocampo Gold-Silver Project, located in Chihuahua, Mexico. Initial production is derived from the Conico deposit in the Open Pit area of the project. Since November 2005, Gammon Lake has been developing 13-kilometres of pit roads, and has started open pit mining operations in the Conico deposit and stockpiling low-grade and high-grade ore. To date, approximately 40,000 tonnes of ore have been stacked on the heap leach pad, and is now under leach.

The primary crusher, capable of crushing up to 20,000 tonnes per day (7.0-million tonnes per year) is operating and presently feeding a 6,000 tonne per day (2.1-million tonne per year) high-grade secondary/tertiary crushing facility that was commissioned in early January 2006. With 58-million tonnes of mineable ore, Gammon Lake will be in continuous heap leach pad preparation for the next 12 years to remain one year ahead of its ore stacking needs.

The low-grade secondary crushing line for crushing 7,000 tonnes per day (2.45-million tonnes per year) will be completed during the first half of February, 2006, at which time the mine will deliver 13,000 tonnes per day to the heap leach crushing facilities at the planned grade of 1.8 grams per tonne gold equivalent. Sufficient crushed material has been placed on the heap to allow for cyanide solution irrigation for gold and silver dissolution (started January 20, 2006). Kappes, Cassiday & Associates (KCA), EPCM contractor for the Ocampo Project, is monitoring the gold/silver concentration in the heap leach pond to determine when Gammon Lake can proceed with the first gold/silver pour.




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