the Recently Acquired Los Jarros Project, Located Near the Ocampo Operations

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TORONTO, Jan. 27 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that it has successfully completed the first-stage, 2,000 metre drilling program at the Los Jarros Project in western Chihuahua. The drilling was focused on the Gaby target where significant near surface mineralization was discovered. The Gaby target is approximately 22 kilometres southeast of Ocampo and 29 kilometres northwest of Fresnillo PLC's Orisyvo gold deposit.




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Los Jarros, Gaby Target Drilling Highlights

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Four of the five holes drilled discovered significant mineralization. Some highlights of the new program include:




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- Hole LJ-10-01, 36.0 metres grading 0.68 grams per tonne gold from
42.0 metres depth
- And 60.0 metres grading 0.57 grams per tonne gold from
94.0 metres depth.
- Hole LJ-10-02, 26.6 metres grading 0.69 grams per tonne gold from
14.0 metres depth.
- Hole LJ-10-03, 49.3 meters grading 0.63 grams per tonne gold from
7.6 metres depth
- Including 10.2 metres grading 1.67 grams per tonne gold from
9.2 metres depth.
- Hole LJ-10-04, 5.1 metres grading 15.70 grams per tonne gold and
42 grams per tonne silver, from 45.2 metres depth.
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"We are very encouraged by the mineralization drilled in this initial campaign, as it documents extensive disseminated gold mineralization as well as locally high-grade gold. The mineralization occurs in a multi-stage breccia with alteration typical of high-sulfidation epithermal systems. This is a large zone still open to expansion of low-grade disseminated gold mineralization within which are higher grades that warrant follow up drilling," stated Peter Drobeck, Senior Vice President of Exploration and Business Development. He continued, "This is an exceptional start to a reconnaissance drilling program on a property we acquired only five months ago."


The focus of the initial stage of the 2010 drilling program was on expanding data from historical drilling programs completed on this project, as well as localized high grades and did not test past discoveries of structurally-controlled gold along a dome margin located half a kilometre further to the north.


The Company is planning preliminary metallurgical tests and more extensive geology to tie in this drill campaign's breccia discovery to the dome environment 500 metres to the north before launching future drilling campaigns.





About Gammon Gold





Gammon Gold Inc. is a mid-tier gold and silver producer with properties in Mexico. Gammon's flagship Ocampo Property is located in Chihuahua State. Gammon also owns the suspended El Cubo mine in Guanajuato State and the Guadalupe y Calvo development property in Chihuahua State. In 2010 Gammon completed option purchase agreements to acquire the Los Jarros and Venus Projects located directly north of the Ocampo mine, the Mezquite Project in Zacatecas State, and has signed a binding Letter of Intent to joint venture into the La Bandera gold project in Durango State. The Company has made strategic investments in Golden Queen Mining Co. Ltd. and Corex Gold Corporation. The Company's Executive Office is located in Toronto, Ontario.




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Cautionary Statement
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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://files.newswire.ca/258/Los_Jarros_Jan_2011.JPG



For further information: please visit the Gammon Gold website at http://www.gammongold.com/">www.gammongold.com or contact: Peter Drobeck, Sr. VP Exploration & Business Development, Gammon Gold Inc., 416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., 416-646-3825