EX-99.2 3 exhibit99-2.htm EXHIBIT 99.2 Gammon Gold Inc.: Exhibit 99.2 - Filed by newsfilecorp.com

Exhibit 99.2

FORM 51-102F3
MATERIAL CHANGE REPORT

Item 1 Name and Address of Company

Gammon Gold Inc.
1701 Hollis Street
Suite 400
Halifax, Nova Scotia, B3J 3M8

Item 2 Date of Material Change

December 7, 2010

Item 3 News Release

A Gammon Gold Inc. press release was disseminated over Canada NewsWire on December 7, 2010.

Item 4 Summary of Material Change

Gammon Reports Strong Operating Performance at the Ocampo Mine for October and November

Item 5 Full Description of Material Change

Gammon Gold Inc. is pleased to provide preliminary results from the Ocampo mine for the months of October and November. Operations at the Ocampo mine continue to strengthen and benefit from the completion of the two year capital expansion program. All figures reported are in U.S. dollars unless otherwise indicated.

The Company remains on track to achieve the 2010 Ocampo production and cash cost guidance of 100,000–110,000 gold ounces; 4,400,000–4,950,000 silver ounces; 180,000–200,000 gold equivalent ounces1; and total cash costs of $410 - $435 per gold equivalent1 ounce.

Ocampo Key Performance Indicators – October and November, 2010

The Ocampo mine continued to report positive results during the quarter to date period including:

  • Production of 18,438 ounces of gold and 752,215 ounces of silver, or 32,548 gold equivalent ounces at the realized gold equivalency ratio of 53:1 (or 32,115 using the Company’s long term gold equivalency ratio of 55:1)
  • Total cash costs per gold equivalent ounce averaged $437 using the realized gold equivalency ratio of 53:1 (or $445 using the Company’s long term gold equivalency ratio of 55:1)
  • Utilizing Ocampo’s silver revenues as a by-product cost credit, total cash costs per gold ounce were negative $309 per gold ounce sold
  • The primary North-East underground mine averaged 1,612 tonnes per day, exceeding design rates
  • The second underground operation, Santa Eduviges, is confirmed to commence commercial production during December 2010
  • Open pit production averaged more than 103,956 tonnes per day, exceeding the targeted design rates
  • The mill facility reported 3,121 tonnes per day
  • Mill recoveries improved to 97% for gold and 81% for silver as a result of the commissioning of the mill cyclones, thickeners and leach tank
  • Stacking at the heap leach facility averaged over 10,394 tonnes per day
 
Recent Operational Highlights
 
  • Development of the Santa Eduviges underground mine continues to benefit from having access to the additional workforce redeployed from the Company’s El Cubo mine. More than 1,700 metres of development has been completed at Santa Eduviges to date with stoping anticipated to begin in late December
  • The ongoing exploration program at Santa Eduviges has reported continued positive results. To date, the program has added new ounces to Reserves and increased the number of delineated veins from one to six.
  • Accelerated development of new reserve and resource discoveries in the northeast underground mine also continued, with considerable progress being made at the Belen, Santa Juliana and San Amado veins
  • The redundancy program at the Ocampo mill facility is largely complete with the commissioning of the fourth filter press scheduled at the end of December
  • The Preliminary Economic Assessment of the Guadalupe y Calvo development property is expected to be released in approximately 4-6 weeks
  • The Company is currently updating its annual Reserves and Resources and expects to release the results in February, 2011
Ocampo Key Performance Metrics                        
Underground   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Average tpd   1,377     1,500     1,596     1,612  
Head grade Aue (g/t)(1)   5.23     4.73     4.45     4.85  
Avg. monthly development   1,301     1,581     2,182     2,357  
Open Pits   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Average tpd   93,730     103,117     97,992     103,956  
Head grade Aue(g/t)(1)   0.97     1.01     1.46     1.09  
Mill Facility   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Average tpd   2,920     3,182     3,113     3,121  
Mill grade Aue(g/t)(1)   3.53     3.50     3.87     3.87  
Heap Leach Facility   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Average tpd   7,328     10,017     6,830     10,394  
Head grade Aue (g/t)(1)   0.72     0.81     0.94     0.85  
Production   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Gold Ounces Produced   21,855     24,963     27,018     18,438  
Silver Ounces Produced   960,817     1,066,998     1,189,769     752,215  
Gold eq.(1) Ounces Produced   39,325     44,363     48,650     32,115  
Total Cash Costs   Q1 2010     Q2 2010     Q3 2010     Oct/NovTD(2)  
Total cash costs per gold eq. ounce (Realized) $ 458   $ 461   $ 440   $ 437  
Total cash costs per gold eq. ounce (55:1) $ 423   $ 430   $ 411   $ 445  
Total cash costs per gold ounce $ 8     ($33)     ($121)     ($309)  

(1) Using the Company’s long term gold equivalency ratio of 55:1
(2) Data from October to November are estimates only and are subject to final adjustments


Item 6 Reliance of subsection 7.1(2) of National Instrument 51-102

Not applicable.

Item 7 Omitted Information

Not applicable.

Item 8

Executive Officer

Rene Marion
President & Chief Executive Officer
Gammon Gold Inc.
Tel: 902-468-0614

Item 9 Date of Report

December 7, 2010