2.1 Metres Grading 13.93 Grams per Tonne Gold at the Mezquite Project, Zacatecas, Mexico

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TORONTO, Jan. 12 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that its drilling program at the Mezquite Project in northeast Zacatecas state, Mexico, has discovered significantly anomalous mineralization. Portions of the mineralization are hosted by the Caracal Formation, the same formation that hosts the deposit at Goldcorp's Camino Rojo project, which is located 26 kilometres southwest of Mezquite with measured and indicated resources of 3,445,000 gold ounces and 60,708,000 silver ounces.




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Mezquite Drilling Highlights

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Highlights of the 3,932 metre, 2010 drilling program (see Table 1)
include:

- Hole BMXT-07, 8.9 metre grading 4.25 grams per tonne gold from 0.3
metre depth
- Including 2.1 metres grading 13.93 grams per tonne gold from 4.0
metres depth

- Hole BMXT-04 discovered silver-lead-zinc mineralization associated
with veining in a quartz diorite intrusive. From 319.0 metres there
are 4.7 metres grading 62 grams per tonne silver, 2.3% lead and
2.6% zinc
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"We are very encouraged by the mineralization discovered in hole BMXT-07, as it exceeded our expectations by discovering high-grade mineralization essentially on-surface and which appears to be disseminated in character." stated Peter Drobeck, Senior Vice President of Exploration and Business Development. He continued, "Another highlight of the exploration program was the good grade silver/base metal mineralization just within the contact of the quartz diorite in hole BMXT-04."


The drilling also discovered extensively anomalous, but low-grade gold-zinc mineralization in a breccia pipe on the east side of a quartz diorite intrusive.


Based on these results, the Company is planning a follow-up soil geochemical survey prior to launching a follow-up drilling program scheduled for the first half of 2011.







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Table 1: Mezquite Project Drilling Results

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Hole From To Length Gold Silver Pb% Zn%
(m) (m) (m) (g/t) (g/t)
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BMXT-001 71.7 76.2 4.6 0.35 0.3 0.0 0.0
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BMXT-001 108.8 109.8 1.1 2.53 1.3 0.0 0.1
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BMXT-001 122.9 126.0 3.1 0.36 0.3 0.0 0.0
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BMXT-001 163.6 165.6 2.0 0.76 0.3 0.0 0.0
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BMXT-002 nsv nsv nsv nsv nsv nsv nsv
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BMXT-003 147.9 166.7 18.8 0.23 1.0 0.0 0.1
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BMXT-003 196.7 201.3 4.6 0.38 1.0 0.0 0.2
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BMXT-003 214.5 223.7 9.2 0.27 5.5 0.0 0.1
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BMXT-004 221.8 228.8 7.0 0.12 9.8 0.1 0.2
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BMXT-004 305.0 306.0 1.0 0.04 43.0 1.4 1.3
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BMXT-004 319.0 323.6 4.7 0.04 61.9 2.3 2.6
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BMXT-004 332.2 332.6 0.4 0.06 138.0 4.9 5.2
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BMXT-005 262.5 264.5 2.0 0.03 22.6 0.2 0.1
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BMXT-005 283.5 302.0 18.5 0.24 1.8 0.0 0.1
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BMXT-006 200.3 204.4 4.1 0.24 0.4 0.0 0.0
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BMXT-006 306.9 312.6 5.8 0.31 0.5 0.0 0.2
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BMXT-007 0.3 9.2 8.9 4.25 3.5 0.0 0.0
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Including 4.0 6.1 2.1 13.93 5.1 0.0 0.1
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BMXT-007 93.0 94.6 1.6 12.67 17.2 0.1 0.1
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BMXT-008 64.0 70.0 6.0 0.29 0.4 0.0 0.0
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BMXT-008 108.5 140.9 32.4 0.34 0.6 0.0 0.1
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BMXT-008 327.0 356.0 29.0 0.24 0.8 0.0 0.0
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BMXT-009 347.4 362.0 14.6 1.37 3.3 0.0 0.1
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BMXT-009 377.0 381.5 4.5 0.66 2.8 0.0 0.0
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Note: The Mezquite information has been reviewed by Qualified Person, Mr. Peter Drobeck. All sample analyses for Mezquite drilling were performed by Chemex Laboratories, based in Vancouver, British Columbia, using standard fire assay procedures with AA finish. The high-grade samples in holes BMXT-07 on this table were assayed twice by Chemex, and checked by SGS Laboratories, based in Mississauga, Ontario, using standard fire assay procedures and with ICP finish, and the assays in this hole represent the average of three assays. The Company has an established program of inserting certified control samples and blanks in compliance with best practices, and this program was used at Mezquite per Company policies. Sample lengths are not necessarily true widths.





Click here to view Figure 1, the Mezquite Project Drill Plan: