Bolnisi loses Ocampo to Gammon Lake

Canada's Gammon Lake Resources (TSX: GAM) has agreed to pay up to US$5mn to acquire the 60% share that Australian company Bolnisi Gold has in the Ocampo gold project in northern Mexico's Chihuahua state, the former announced Thursday. The purchase will give Gammon Lake a 100% interest in Ocampo, the company said. "Gammon Lake intends to move forward rapidly with final feasibility and development of the entire Ocampo district, exploiting the advantages of one combined mining operation in the district," the company said. Gammon's Terry Coughlan, VP of operations, told BNamericas in September he expected Bolnisi to start production at Ocampo by March 2004, after developing a mill and access roads. Gammon's potential share under the previous JV agreement of gold-equivalent production from the open-pit project would have totaled 41,000-42,000oz/y, according to an independent preliminary engineering report by Pincock, Allen and Holt.