TORONTO, March 10 /CNW/ - Gammon Gold Inc. ("Gammon" or the "Company") (TSX: GAM) and (NYSE:GRS) wishes to provide an update on recent activities at the El Cubo mine.

As previously announced on February 23, the labour disruption at the El Cubo mine was successfully resolved after a more productive and standardized Collective Agreement was negotiated with the union.

Since February 22, management regained access to the mine facilities and immediately began an exhaustive infrastructural and ground control assessment to develop an operations plan that would allow production to recommence as soon as possible. This review has been completed and mine conditions were found to be better than originally anticipated such that the Company fully expects to begin development work in April.

As part of the operations plan, the rehiring process is largely completed with over 250 workers undergoing a two week common core training program at the University of Guanajuato. Once finished, they will immediately be assigned to the mining workforce at El Cubo.

"We are delighted with the progress we have made in such a short time period and that mine conditions were better than we had expected. We anticipate taking delivery of the majority of required operating supplies later next week and we began moving non-utilized underground mining equipment that had been previously stored at Ocampo during the labour disruption back to El Cubo." stated Russell Tremayne, Chief Operating Officer. He continued, "Additionally, we believe that the training programs will ultimately foster a work environment that supports both higher productivity and underpins our dedication to safety."

On March 28, 2011, the Company will provide a more definitive timeline on when production will recommence as well as an updated operational strategy.

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