Gammon Lake buys mining fleet for Ocampo

Canadian minerals company Gammon Lake Resources (TSX: GAM) has bought a fleet of 17 new haul trucks for its Ocampo gold-silver project under construction in northern Mexico's Chihuahua state. The US$14.9mn purchase from Ameco Services is in line with the budget and equipment specifications as outlined in the Ocampo project's feasibility study. Gammon Lake has also entered into a rental agreement with Ameco for three smaller articulated trucks and one front-end loader. A bankable feasibility study published in early November 2004 estimated proven and probable open-pittable reserves at Ocampo of 1.43Moz of gold-equivalent, with a further 833,000oz of gold-equivalent contained in the northeast underground area. Average annual production is predicted at 270,000oz gold-equivalent including in excess of 300,000oz in the first year at a cash cost of US$151.74/oz. Mine production is expected to begin in the first quarter of 2006 at a rate of 11,400t/d in the open-pit mine and 1,500t/d in the underground mine.