TORONTO, ONTARIO -- (MARKET WIRE) -- 01/06/10 --
Avion Gold Corporation ("Avion" or "the Company") (TSX VENTURE: AVR), today announced its updated resource estimation. Highlights are as follows:
-- The Measured and Indicated underground mineral resource at the Segala
Main Zone increased more than 100% to 490,000 ozs Au(i).
-- The grade at the Segala Main Zone increased by 38% to 5.29 g/t Au(i)
-- The Company's total Measured and Indicated mineral resources increased
18% to 1.43 million ounces at a grade of 3.71 g/t Au(i).
Mineralization remains open at depth on the Segala Main Zone with intersections as deep as 600 metres below surface (see Figure). As a result of the additional twenty five diamond drill holes completed into the previous Inferred mineral resources during 2009, and a more rigorous geological model, the grade has increased and the anticipated economics are expected to be more robust. Avion also believes there is a reasonable expectation that additional mineral resources can be defined between 300 metres to 600 metres below surface and below the 600 metre level. The attached diagram demonstrates where Measured and Indicated mineral resources lie as compared to the Inferred mineral resources and the postulated down-plunge extension of the Segala Main zone. Drilling to develop this depth potential will likely be carried out once underground mining has commenced.
John Begeman, President and CEO, commented: "The increase in the Measured and Indicated mineral resources and resource grades at Segala support Avion's underground development plans at Segala and further emphasize the robust character of the overall project. Moreover, the new resources support Avion's goal to increase the production capacity from 100,000 ounces per year to 200,000 ounce per year. We believe that the project and area have excellent potential to deliver more resource ounces in the future."
The Company's Measured and Indicated mineral resources now comprise 11.38 million tonnes grading 3.71 g/t Au or some 1.43 million ounces Au, an increase of 18% from the previously announced total. Total Inferred mineral resources comprise 9.88 million tonnes grading 3.78 g/t Au totaling 1.2 million ounces, which is a 5% increase from the previously announced total. Note that the Inferred mineral resource total includes 95% of the Inferred resources at Great Quest's Djambaye 2 zone, which is subject to the recently announced (December 21, 2009) purchase agreement that is expected to be completed in early January. Details of the resources are presented at the end of the release.
Avion continues to refine the mineralization models for the Tabakoto deposit. An updated resource for the overall project is expected before the end of the third quarter in 2010.
Technical Data
In order to document the new underground resources for Segala, Avion first interpreted the zones with a 0.5 g/t Au grade shell and then defined a 2.0 g/t Au grade shell to document higher grade areas. This zone definition was then provided to P&E Mining Consultants Inc. who subsequently carried out a site visit, collected verification samples, finalized the mineralization wire frames and updated the deposit mineral resources. The updated mineral resource defined six higher grade zones varying in true width from approximately 2.0 to 15.0 metres and capped gold assays at 20 to 30 g/t Au, depending on the individual zone. A gold price of US$900 per oz, a 90% process recovery, mining costs of US$24/tonne, process costs of US$20/tonne and G&A costs of US$8.00 tonne were used to determine the 2.0 g/t underground cut-off grade. For potentially open pittable resources a 1.0 g/t cut-off grade was used.
The updated Segala Main resource calculations were prepared by Eugene Puritch, P. Eng. and Antoine Yassa, P. Geo. from P&E Mining Consultants Inc., Qualified Persons under NI 43-101 who are independent of the Company and have reviewed the scientific and technical information in this document relating to those estimates. Don Dudek, P.Geo., Vice President Exploration of Avion has reviewed and approved the updated resources and reviewed and approved the technical data presented in this press release. Avion has not completed a feasibility study in regards to the resource presented herein and there is no certainty the proposed operations will be economically viable.
About Avion Gold Corporation
Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, with approximately 100,000 ounces of production forecast for 2010 with an expected cash cost of US$450 per ounce of gold. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Mineral Resource Estimates
Measured and Indicated Mineral Resources(1)(2)(3)(4)(5)(7)
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News Release
Zone Tonnes Au g/t Ounces Date
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Potentially Open Pittable Segala
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Current
Main Measured 50,655 4.52 11,199 update
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Current
Main Indicated 200,801 5.64 35,610 update
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NW Measured 536,666 2.11 36,461 Dec.12, 2008
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NW Indicated 251,570 3.34 26,997 Dec.12, 2008
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Potentially Open Pittable Tabakoto
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Measured 1,253,370 2.89 116,383 May 19, 2009
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Indicated 2,882,992 3.48 322,946 May 19, 2009
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Sub Total 5,176,054 3.30 549,596
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Potentially Underground Mineable Segala
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Current
Main Measured 4,504 4.70 681 update
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Current
Main Indicated 2,875,302 5.30 489,490 update
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NW Measured 0 0.00 Dec.12, 2008
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NW Indicated 638,384 3.22 66,166 Dec.12, 2008
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Potentially Underground Mineable Tabakoto
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Measured 39,746 3.39 4,331 May 19, 2009
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Indicated 2,645,377 3.73 317,476 May 19, 2009
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Sub Total 6,203,313 4.40 878,144
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Inferred Mineral Resources(1)(2)(3)(4)(5)(6)(7)
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Zone Tonnes Au g/t Ounces Comment
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Potentially Open Pittable
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Segala NW 2,196 3.28 231 Dec.12, 2008
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Dioulafoundou 349,296 3.49 42,177 May 19, 2009
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Dar Salam 1,195,228 3.47 134,155 May 19, 2009
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Tabakoto 982,628 3.92 109,568 May 19, 2009
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Djambaye 2 2,445,300 3.49 307,800 May 19, 2009
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Sub Total 4,974,648 3.71 593,931
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Potentially Underground Mineable
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Segala NW 214,785 2.74 18,930 Dec.12, 2008
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Segala Main 1,305,126 4.45 186,523 Current update
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Dioulafoundou 102,010 4.41 14,461 May 19, 2009
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Dar Salam 601,965 3.35 64,785 May 19, 2009
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Tabakoto 2,682,100 3.73 321,300 May 19, 2009
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Sub Total 4,905,586 3.84 605,999
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(i) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
(i) The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as an indicated or measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.
(i) The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by CIM CouncilDecember 11, 2005.
1. The Inferred Resources are in addition to the Measured and Indicated
Resources.
2. The mineral resources have been classified in accordance with
requirements of NI 43-101 and the CIM standards. Resource estimates
based on a gold price ranging from USD$825 to USD$ 900 per ounce.
3. Eugene Puritch, P. Eng. of P&E Mining Consultants Inc. Qualified Persons
under NI 43-101, prepared the Current mineral resource estimates and
have reviewed the technical disclosure herein relating to the resource
estimates.
4. Milko Rivera, P.Eng and Farshid Gazanfari independent consultants,
Qualified Persons under NI 43-101, prepared the May 19, 2009 mineral
resource estimates and have reviewed the technical disclosure herein
relating to the resource estimates. Eugene Puritch, P. Eng. of P&E
Mining Consultants Inc. carried out an independent review of the
resource model and provided preliminary open pit and UG mining
scenarios.
5. Eugene Puritch, P. Eng. and Antoine Yassa, P. Geo. from P&E Mining
Consultants Inc., Qualified Persons under NI 43-101 who are independent
of the Company, are responsible for the mineral resource estimates
presented on December 12, 2008 and have reviewed the scientific and
technical information in this document relating to those estimates.
6. Carl Verley (P. Geo.), independent consultant, Qualified Person under
NI 43-101, prepared the January 28, 2008 Djambaye 2 mineral resource
study for Great Quest news Metals Ltd.
7. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
Cautionary Notes
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the impact of the results on the Company; statements with respect to the development potential and timetable of the Mali projects; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; ability to successfully integrate the purchased properties; foreign operations risks; other risks inherent in the mining industry and other risks described in the annual information form of the Company which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/AVRi.pdf
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Contacts:
Avion Gold CorporationRene Bharti
Vice President Business Development
(416) 861-5913
rene@aviongoldcorp.com
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