Gammon Gold (TSX:GAM) hopes to meet its production forecast for the current year at its Ocampo mine in northern Mexico. The company had forecast a production of 180,000 to 200,000 gold equivalent ounces for the mine in 2010.
The company announced that production for October and November was 32,548 gold equivalent ounces. The yearlong production for 2010 is currently at 164,886 gold equivalent ounces. The main contributing cause would be the two year capital expansion program which was completed recently.
President and Chief Executive Officer Mr Marion said that he was very pleased that the Ocampo team was continuing to deliver improvements across the key operating metrics. The operations were now benefiting from the two year capital expansion program that was not only supporting continued production growth, but at costs lower than the industry average, all of which is during a period of record metal prices.
The mid-tier gold and silver producing company has properties in Mexico but its flagship is the Ocampo Property in Chihuahua State. The property began commercial production in January 2007. Shares of the company rose after the announcement that it would meet its annual production targets.