Thursday, July 1, 2010

Gammon Gold (NYSE:GRS) Reduces Production Projections Again

Gammon Gold (NYSE:GRS) is taking a big hit on its production estimates for 2010, as closing the El Cubo project will result in approximately 25 percent less production for the company overall.

This is the second time in 2010 Gammon has had to downwardly revise their production estimates.

Before the turmoil, the mining company had estimated it would produce from 150,000 to 160,000 ounces of gold for the year, and about 6.1 million to 6.85 million ounces of silver.

Now they've lowered those estimates to 100,00 to 110,000 ounces of gold and 4.4 million to 4.95 million ounces of silver.

Rene Marion, Gammon CEO, said they'll focus primarily on their gold-silver Ocampo project in the near term, while increasing the pace of their exploration.

"Management focus for the balance of the year will be on expanding productivity at our Ocampo mine as well as bringing new discoveries into production in 2011 and the acceleration of exploration programs at our properties," said Marion.

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