The Halifax-based junior can acquire a 100% interest in virtually the entire 25-sq.-km Ocampo mining camp by making a series of payments to two separate Mexican parties: Minerales de Soyopa and Minera Fuerte Mayo.
The agreement with Soyopa for all its Ocampo claims has been changed as follows: A payment due on Sept. 1, 2001, has been reduced from US$3.5 million to US$225,000; Gammon will spend US$2 million on exploration and a prefeasibility study over the next two years; in two years, US$4.5 million will be paid to Soyopa to complete the acquisition of a 49% interest in Soyopa’s Ocampo concessions, and US$13 million will be paid to complete Gammon’s acquisition of all Soyopa’s outstanding shares and the remaining 51% interest.
The agreement to acquire a 100% interest in Fuerte Mayo’s Ocampo concessions has been changed as follows: no further payments will be made to Fuerte Mayo until the sale of the Ocampo asset is realized; all royalties to Minera Fuerte Mayo are eliminated; and US$211,526 will be paid to Fuerte Mayo on the sale of the Ocampo asset by Gammon.
As a result of extensive drilling and sampling in 2000, Gammon Lake was able to triple the resource base at Ocampo to 21.7 million tonnes grading 1.44 grams gold and 57 grams silver per tonne in the measured and indicated category (1.8 million contained ounces gold-equivalent) plus 5.8 million inferred tonnes of 1.7 grams gold and 86 grams silver (637,000 contained ounces gold-equivalent).
This year, Gammon plans to keep expanding the resource base and complete a prefeasibility study under the direction of Watts, Griffis & McOuat.
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