Gammon plans open pit

A second phase of drilling at the Ocampo gold-silver property in Chihuahua state, Mexico, has intersected more near-surface mineralization for Gammon Lake Resources (GAML-C).

Six core holes returned between 0.8 and 13.4 grams gold over 1-9 metres. All hit at least one mineralized intercept. A seventh hole was abandoned after piercing old workings 16 metres downhole. Highlights include:

hole 24, which graded 13.4 grams gold and 833.7 grams silver over 4 metres of a 10-metre intercept (20-30 metres) that averaged 5.9 grams gold and 377.5 grams silver;

hole 25, which intersected 1.7 grams gold and 44 grams silver over 6 metres (28-34 metres);

hole 26, which hit 1.7 grams gold and 8.9 grams silver over 9 metres (49-58 metres); and

hole 29, which hit 0.8 gram gold and 21 grams silver over 2 metres (18-20 meters) and 7 grams gold and 241 grams silver over 2 metres of a 10-metre (31-41 metres) intercept that averaged 2.7 grams gold and 58 grams silver.

The drill site is near the past-producing Brenda zone, where earlier bulk sampling averaged 12.5 grams gold-equivalent in 1,574 tonnes. Gammon envisages the project as an open-pit mine.

Meanwhile, Gammon has raised $540,000 from a private placement of 270,000 units priced at $2 each. A unit consists of one share and one purchase warrant, with the latter exchangeable for an additional share at $2.50 by Nov. 30, 2000.

Gammon currently has more than $4 million in cash, much of which was derived from a rights offering that expired Nov. 25.