UPDATE 1-Gammon Gold’s quarterly output climbs

* Q2 gold equivalent production up 4.8 pct

* Higher output from Ocampo mine helps boost production

TORONTO, July 15 (BestGrowthStock) – Canadian junior Gammon Gold
(GAM.TO: ) said on Thursday its second-quarter gold production
rose, as increased output from its Ocampo mine in Mexico helped
offset the impact of the shutdown at its El Cubo mine.

The company produced 49,379 gold equivalent ounces in the
quarter, up 4.8 percent from a year earlier, when a 7-week
labor-related disruption at El Cubo held back output.

Last month, Gammon said it dismissed 397 of its unionized
workers and indefinitely suspended operations at its El Cubo in
respoonse to a fresh dispute over a profit-sharing agreement.

Gammon said it redeployed about 150 contract workers from
El Cubo to Ocampo, as well as some underground mining

The Halifax-based company plans to use the redeployed
workers and equipment to expand its underground mining
operations at Ocampo.

The company has forecast output of 100,000 to 110,000
ounces of gold and 4.4 million to 4.95 million ounces of silver
from Ocampo in 2010. This translates into roughly 180,000 to
200,000 gold equivalent ounces, at total cash costs of $425 to
$450 per gold equivalent ounce.

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($1= $1.03 Canadian)
(Reporting by Euan Rocha; Editing by Frank McGurty)

UPDATE 1-Gammon Gold’s quarterly output climbs