Gammon Gold lowers 2010 outlook on Mexico mine shutdown

Canadian precious metals miner Gammon Gold Inc lowered its 2010 production and cash outlook for its Ocampo mine to reflect thvsi crusher manufacturers in chinae shutdown of operations at its El Cubo mine in Mexico.

In 2010, Gammon expects gold production at Ocampo to range from 100,000 ounces of gold to 110,000 ounces of gold and silver output of 4.40 million ounces to 4.95 million ounces, with total cash costs of $425 to $450 per gold equivalent ounce. Gammon also said 154 contract workers and underground mining equipment redeployed from El Cubo would support expanded operations at Ocampo till the end of the year. In March, the company had said it was expecting consolidated gold production of 150,000 ounces to 180,000 ounces and silver production of 6.1 million to 6.8 million ounces, with total cash cost estimated at $440 to $475 per gold equivalent ounce. However, a labor dispute that began at the El Cubo mine in June resulted in an indefinite suspension of operations and 397 union workers losing their jobs at the mine.