Gammon Gold -

Ocampo

Gammon Gold has a 100% interest in the Ocampo gold-silver project, located in the Sierra Madre Occidental, Chihuahua, Mexico. The Ocampo mine is currently one of the largest operating gold/silver mine in Chihuahua State and the property covers more than 12,000 hectares. The Ocampo mine is comprised of both an open pit and an underground mine with milling and crushing/heap leach processing facilities. With the majority of the property yet to be explored, there is significant potential yet to be realized.

Geological Setting

The Ocampo mining district is located in the State of Chihuahua, Mexico and has been producing gold and silver for over 150 years. Gammon Gold became active in the area when foreign ownership restrictions were lifted in the late 1990’s and has been actively exploring the area since 1999.

The Ocampo Project is located in the Sierra Madre Occidental (“SMO”). SMO is an extensive physiographic province that is composed largely of volcanic rocks that have been intruded by plutonic rocks, which overlie a Precambrian through Jurassic basement. The basement rocks are rarely exposed and poorly known. This province extends from the center of Mexico to the border of the United States.

Volcanic stratigraphy in the SMO has been broken into two main groups consisting of the Lower Volcanic Group (“LVG”) and the Upper Volcanic Group (“UVG”). LVG rocks dominate the project area and consist of massive andesitic flows and tuffs. Localized beds of volcanoclastic sediments are also present. Toward the top of this group, the volcanics become more felsic. This group of rocks is host to the majority of the silver and gold deposits exploited thus far in the SMO. UVG rocks are comprised of felsic ignimbrites, tuffs, flows and volcanoclastics. Overall, there is a northwest trending structural fabric best evidenced by the alignment of the numerous mining districts found in the SMO.

Mineralization

Ocampo is a classic gold-silver epithermal mining district. In general, Ocampo can be broken into two major structural areas, the Northeast area (“Northeast Area”) and the Plaza de Gallos Refugio trend (“PGR Trend”) that extends from Altagracia in the southeast to beyond La Estrella in the west. The mineralogy and alteration present in both the PGR and the Northeast Ocampo project area are indicative of low sulphidation, quartz-adularia type epithermal systems.