Avion Increases Tabakoto Area Resources by 25% for Less Than $7/Ounce
31 March 2010 - 3:36PM
Marketwired Canada
Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion" or the 'Company')
is pleased to announce that it has executed a purchase agreement with AXMIN Inc.
("AXMIN") under which Avion has agreed to acquire AXMIN's interest in the Kofi
Group concessions ("Kofi") in Mali for total consideration valued at
approximately CDN$3.6 million.
The Kofi property is a large, 472 sq. km, property package situated, at its
nearest point, within approximately 5 kilometres to the northwest of Avion's
Tabakoto Project. The Kofi property wraps around the north side of Randgold's
Loulo Mine (Measured and Indicated resources of 62.69 million tonnes grading
4.55 g/t Au) concessions (see Figure below). Four of the nine known mineralized
zones on the Kofi property are located along two linear mineralization trends
that are defined by the alignment of deposits within the nearby Randgold
Property. These two trends, which intersect on the Kofi property, are associated
with a magnetic feature that extends for another five kilometers to the north.
Avion believes this magnetic feature represents an interesting exploration
target.
The Kofi property contains nine mineralized zones with identified mineral
resources. All of the estimated mineral resources lie in the Kofi Nord
concession of which Avion's interest would be 81.25% with 12.5% held by African
Mining Selection Corporation and 6.25% held by Societe Financiere d'Exploration
d'Or au Mali. Accordingly, indicated mineral resources of 238,000 ounces and
inferred mineral resources of 299,000 ounces would be credited to Avion upon
completion of the acquisition. Total estimated Indicated Mineral Resources are
approximately 3.6 million tonnes grading 2.5 g/t Au totaling 293,000 ounces Au
(Roberts, 2008 43-101 compliant report). In addition, the Kofi property hosts
total Inferred Mineral Resources of approximately 5.26 million tonnes grading
2.2 g/t Au totaling 368,000 ounces (Dec. 11, 2007 AXMIN news release, Roberts,
2008 43-101 compliant report) . Most of the zones are open along strike and to
depth with zones only tested from 60 to 150 metres below surface. All of the
zones are within 15 to 38 kilometers of Tabakoto's mine infrastructure,
potentially placing these zones, including the estimated mineral resources,
within trucking distance to Tabakoto. A summary of the main mineralized zones is
as follows:
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Zone Resource
Tonnes(i) g/t Au Ounces Category Comment
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C Zone Tested to less than
873,000 3.5 99,000 Indicated -100 m depth
C Zone Tested to less than
913,000 3.7 109,000 Inferred -100 m depth
A zone 378,000 2.0 25,000 Inferred Tested to 150 m depth
A Zone Linear 675,000 1.7 36,000 Inferred Tested to -60 m depth
B Zone 1,216,000 2.1 83,000 Indicated Tested to -140 m depth
B Zone 160,000 1.7 9,000 Inferred Tested to -140 m depth
Blanaid 510,000 2.4 39,000 Inferred Tested to -85 m depth
Betea Central 1,154,000 2.3 111,000 Indicated Tested to -150 m depth
Betea Central 981,000 1.6 52,000 Inferred Tested to -150 m depth
Betea North 473,000 1.6 25,000 Inferred Tested to -150 m depth
Betea South 1,169,000 2.0 74,000 Inferred Tested to -150 m depth
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(i) Mineral resources presented by AXMIN on December 11, 2007 and supported
by a 43-101 compliant technical report but Roberts, 2008.
John Begeman, Avion's President and CEO, stated, "The acquisition of the Kofi
property, Avion's most recent cost-effective and accretive acquisition, allows
the Company to take advantage of a resource that can potentially be trucked to
our existing milling and processing facility. Randgold, through their
exploration success, has demonstrated tremendous value in the area immediately
to the south of the Kofi property. Avion believes that the potential exists for
similar success on the Kofi property, which has proven stratigraphy that is rich
in resources."
In consideration for acquiring AXMIN's interest in the Kofi Property, Avion,
will, upon final closing of the definitive agreement and the receipt of any
applicable regulatory approvals, have paid to AXMIN CDN$500,000 and issued to
AXMIN 4,500,000 Avion common shares. AXMIN will begin to receive the
consideration for the Kofi Property as soon as the Kofi Nord concession is
transferred to Avion's Mali subsidiary and according to a payment schedule
established in the definitive agreement. AXMIN's direct interest in the
concessions that comprise the Kofi property varies from 81.25% to 100%.
Completion of the proposed acquisition is subject to the receipt of standard
closing documents, including a title opinion, approval of the TSX Venture
Exchange and Government approval in Mali for the license transfers.
Upon completing the acquisition, Avion's intends to first re-log the core in
order to update and validate the interpretation of the mineralized zones. Once
completed, Avion plans to conduct a drill program commencing in late 2010 to
test targets, developed through the re-interpretation, and existing targets that
were developed by AXMIN.
Don Dudek, Senior Vice President, Exploration, commented "The Kofi C zone, which
lies along the same trend as four of the Randgold deposits, is the highest grade
zone on the Kofi property. We believe that it is a compelling near-term
potentially open-pittable resource that appears to be open for expansion. Work
by AXMIN and Randgold has demonstrated the prospective nature of this trend,
which we believe bodes well for future discovery potential."
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a
qualified person under National Instrument 43-101 has reviewed the scientific
and technical information in this press release.
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 commenced
at these projects in 2009 with just over 51,000 ounces produced last year. Avion
continues to progress towards reaching its previously stated goal to achieve a
production rate of 200,000 ounces of gold per year from its Tabakoto/ Segala
operations with an aggressive exploration program, underground mine planning for
the Segala and Tabakoto deposits and finalization of production upgrade studies
in progress. Avion's 2010 production goal was initially estimated at 100,000
ounces of gold. Anticipated 2010 gold production of approximately 100,000 ounces
is under review. Avion has a highly skilled management team, with a focus on
growth and consolidation within West Africa.
About AXMIN
AXMIN is a Canadian exploration and development company with a strong focus on
central and west Africa. AXMIN has projects in Central African Republic, Mali,
Sierra Leone and Senegal. For more information regarding AXMIN visit our website
at www.axmininc.com.
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 Tabakoto & Kofi Projects, please visit the following link:
http://media3.marketwire.com/docs/kofiprojects331.pdf