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Gammon Gold Completes 2,000 Drilling Program at Los Jarros Project in Chihuahua

Gammon Gold Inc. (TSX:GAM and NYSE:GRS) has announced 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.

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

- 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.

"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.

Source:

Gammon Gold Inc.

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