Avion Gold Corporation ("Avion" or "the Company") (TSX VENTURE:
AVR)(OTCQX: AVGCF), today announced the release of results for an
additional 27 drill holes that tested the Dioulafoundou Zone. This
zone is located approximately 2 km south of the existing Tabakoto
pit, on the Tabakoto mining concession, Mali, West Africa (Figure
1). Result highlights include the following:
-- 11.25 g/t Au over 10.1 metres
-- 29.89 g/t Au over 7.2 metres
-- 11.35 g/t Au over 12.8 metres
The Dioulafoundou mineralized system consists of two stronger
gold mineralized zones and several, smaller, parallel gold
mineralized zones. The strongest of the zones, Dioulafoundou NW
zone ("DNW"), has been traced for approximately 400 metres along
strike and to approximately 325 metres depth (previously tested to
170 metres depth) (see figure 2). A second, parallel, zone of gold
mineralization, DNW2, lies approximately 60 metres to the south and
has been traced for approximately 190 metres along strike and to
approximately 300 metres depth (previously tested to 115 metres
depth) (see figure 3). Both zones are steeply dipping, steep east
plunging and open down plunge and to the east.
Good gold values have been returned from the western end of the
DNW zone with previous intercepts of 21.77 g/t Au over 21.0 metres
and several high grade new intercepts with a best intercept of
29.89 g/t Au over 7.2 metres (see figure 2). A core drill continues
to test for depth continuity of the high grade sections.
Two of the deeper holes at the DNW2 zone returned 4.56 g/t Au
over 9.1 metres and 4.77 g/t Au over 6.0 metres; these two holes
are 80 metres apart and currently define the eastern limited of the
DNW 2 zone (see figure 3). Management believes that this zone
appears to be strengthening in this direction and as a result
additional holes are justified.
John Begeman, President and CEO, commented: "the exceptional
results to date at Dioulafoundou is a game changer for Avion. It
not only gives Avion the opportunity to mine higher grades than in
the past, this deposit can also provide a year's worth and possibly
more, of mill feed as we transition from open pit to underground
mining."
As stated previously (see Avion news release July 14, 2010) the
Dioulafoundou open pit resources, at a 1 g/t Au cut-off, consists
of Indicated Resources of 502,000 tonnes grading 5.16 g/t Au
totaling 83,400 ounces of gold and Inferred Resources of 105,000
tonnes grading 5.92 g/t Au for 19,900 ounces of gold. This resource
was calculated from mineralized intercepts within approximately 120
metres of surface. Current drilling has significantly expanded the
mineralized zone.
Surface work has commenced with the clearing of vegetation and
storage of soil in order to properly perform reclamation work in
the future. Pre-stripping is expected to commence before month-end
as the rainy season slowly tails off.
While testing the Dioulafoundou zones, a new mineralized zone,
has been intersected at shallow levels by four drill holes. This
easterly trending zone lies approximately 130 metres north of the
Dioulafoundou zone and has been traced for approximately 150 metres
along strike. Drill intercepts of 16.16 g/t Au over 2.6 metres
(D-10-72), 9.67 g/t Au over 2.0 metres, 5.04 g/t Au over 3.0 metres
and 2.94 g/t Au over 4.5 metres all appear to be related to the
same structure. These intercepts are close to an artisanal
discovery where abundant gold has been found and is related to a
line of artisanal shafts. Future planned drill holes that are
planned to test the depth-extent of the Dioulafoundou zone should
add additional intercept points.
To date, more than 430 drill holes comprising approximately
55,000 metres of drilling have been completed on Avion properties
in 2010. Exploration drilling is continuing to test the
cross-structures close to the Tabakoto deposit and the
Dioulafoundou zone. Drilling is expected to resume on the Hounde
Property in October and commence on the Kofi Property in October as
well (see Avion news release dated March 31, 2010).
Avion's procedures for handling core and reverse circulation
drill chips have been presented in previous news releases (See for
e.g. Avion News Release dated May 13, 2010).
Don Dudek, P.Geo. the Senior Vice President, Exploration of the
Company has reviewed the scientific and technical information in
this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West
Africa that 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. 2010 production is estimated at 75,000
to 85,000 ounces of gold. Production sustainability is supported
and enhanced by an aggressive 2010 drill program over an
approximately 600 km(2) exploration package that both surrounds and
is near to the Company's existing mine infrastructure.
Additionally, the 1,670 km(2) Hounde exploration property in
Burkina Faso is returning good results from an ongoing exploration
program. These properties are the subject of an approximate US$ 12
million dollar, 60,000 metre plus, drill-focused exploration
program in 2010, which management expects, based on results to
date, to add new resources and future opportunities for Avion.
Avion continues to progress towards its longer term goal of 200,000
ounces of gold per year and is preparing to mine underground at the
Segala and Tabakoto deposits. Avion has a highly skilled management
team, with a focus on growth and consolidation within West
Africa.
Recent drill results
----------------------------------------------------------------------------
True
From To Length Width Au Grade x Capped
HOLE (m) (m) (m) (m) g/t width Assay Zone
D-10-19 21.0 24.5 3.5 2.0 2.34 5 2.34 DNW
D-10-19 46.0 46.8 0.8 0.6 1.69 1 1.69 DNW
D-10-19 110.0 110.1 0.1 0.00 0 DNW2 Zone
D-10-20 57.3 59.0 1.7 1.2 5.89 7 5.89 DNW
D-10-20 162.9 165.4 2.6 1.7 4.11 7 4.11 DNW2 Zone
D-10-20 175.0 175.8 0.8 4.06 0 4.06
D-10-20 182.8 184.3 1.5 2.78 0 2.78
D-10-20 187.3 217.8 30.6 1.26 0 1.26
D-10-22 61.0 64.0 3.0 1.6 1.87 3 1.87 DNW2 Zone
D-10-23 193.9 203.0 10.1 6.5 11.25 73 11.25 DNW
D-10-24 233.0 233.1 0.1 0.00 0 0.00 DNW
D-10-27 NW HW1 zone,
31.5 34.5 3.0 1.5 5.04 8 5.04 new
D-10-27 208.2 209.7 1.5 1.2 1.72 2 1.72 DNW
D-10-27 217.0 220.0 2.6 1.5 3.14 5 3.14 DNW
D-10-27 237.8 250.0 12.2 8.2 2.35 19 2.35 NW FW zone
D-10-50 29.3 31.5 2.2 1.5 1.29 2 1.29 DNW
D-10-50 70.0 71.0 1.0 1.43 0 1.43
D-10-50 77.6 79.0 1.4 3.49 0 3.49
D-10-50 101.0 103.5 2.5 1.8 1.03 2 1.03 DNW2 Zone
D-10-65 368.6 369.2 0.6 0.4 4.81 2 4.81 DNW
D-10-69 78.6 80.0 1.4 1.0 0.53 1 0.53 NW HW1 zone
D-10-69 265.4 269.0 3.6 2.8 3.15 9 3.15 DNW
D-10-69 274.0 278.4 4.4 3.5 1.31 5 1.31 NW FW zone
D-10-69 335.2 335.8 0.6 1.98 0 1.98
D-10-70 42.0 46.5 4.5 3.5 2.94 10 2.94 new zone E-W
D-10-70 58.0 59.5 1.5 1.11 0 1.11
D-10-70 65.5 67.0 1.5 1.23 0 1.23
D-10-70 105.5 108.3 2.8 1.26 0 1.26
D-10-70 116.0 122.0 6.0 4.25 0 4.25 New zone E-W
D-10-70 129.5 131.0 1.5 2.70 0 2.70
D-10-70 137.0 138.5 1.5 1.95 0 1.95
D-10-70 152.7 153.7 1.0 1.10 0 1.10
D-10-70 172.9 181.0 8.2 1.83 0 1.83
D-10-70 256.5 257.6 1.2 0.9 1.09 1 1.09 DNW
D-10-70 285.0 285.1 0.1 0.00 0 0.00 NW FW zone
D-10-72 80.6 81.1 0.5 3.01 0 3.01
D-10-72 96.9 99.5 2.6 1.6 16.16 26 13.42 new zone E-W
D-10-72 116.2 116.7 0.5 7.50 0 7.50
D-10-72 190.7 192.2 1.5 3.23 0 3.23
D-10-72 296.5 297.0 0.5 1.27 0 1.27
D-10-72 304.8 312.0 7.2 3.3 0.83 3 0.83 DNW
D-10-72 337.0 337.1 0.1 0.00 0 0.00 NW FW zone
D-10-73 122.0 123.7 1.7 1.2 3.44 4 3.44 NW HW1 zone
D-10-73 154.4 154.7 0.3 0.2 13.09 3 13.09
D-10-73 294.2 295.2 1.0 0.6 5.16 3 5.16 DNW
D-10-73 322.5 324.0 1.5 1.0 0.21 0 0.21 NW FW zone
D-10-78 134.0 138.5 4.5 3.0 5.93 18 5.93 DNW
D-10-78 152.0 155.0 3.0 2.2 3.64 8 3.64 NW FW zone
D-10-81 16.5 18.0 1.5 1.1 4.49 5 4.49 DNW
D-10-81 30.5 33.5 3.5 2.5 2.32 6 2.32 DNW
D-10-95 112.0 113.0 1.0 0.6 1.97 1 1.97 DNW
D-10-95 133.0 135.2 2.2 1.4 1.19 2 1.19 NW FW zone
D-10-99 24.5 25.5 1.0 1.19 0 1.19
D-10-99 160.3 165.8 5.5 3.8 4.26 16 4.26 DNW
D-10-99 181.0 188.0 7.0 4.4 9.81 43 9.81 NW FW Zone
D-10-101 278.0 290.8 12.8 8.2 11.35 93 9.39 DNW
D-10-101 293.0 294.5 1.5 2.65 0 2.64
D-10-101 297.9 299.0 1.1 4.12 0 4.12
D-10-105 186.2 193.0 7.2 5.5 29.89 164 27.82 DNW
D-10-107 16.5 17.2 0.7 1.85 0 1.85
D-10-107 167.5 171.0 3.5 2.8 6.87 19 6.87 DNW
D-10-107 190.2 193.7 3.5 2.7 12.18 33 12.18 NW FW zone
D-10-107 222.3 224.0 1.8 5.25 0 5.25
D-10-109 65.0 68.0 3.0 1.30 0 1.30
D-10-109 142.9 146.1 3.3 2.5 6.26 16 6.26 DNW
D-10-109 175.0 176.2 1.2 0.9 1.13 1 1.13 NW FW Zone
D-10-111 171.6 176.4 4.8 3.3 1.49 5 1.49 DNW
D-10-111 226.3 227.8 1.5 1.0 1.73 2 1.73 DNW2 Zone
D-10-113 212.0 213.5 1.5 1.15 0 1.15
D-10-113 217.5 220.5 3.0 1.8 5.90 11 5.90 DNW
D-10-114 169.5 171.0 1.5 1.27 0 1.27
D-10-114 242.5 244.0 1.5 1.2 1.98 2 1.98 DNW
D-10-114 323.0 324.5 1.5 1.24 0 1.24
D-10-114 344.0 347.0 3.0 2.2 2.21 5 2.21 DNW2 Zone
D-10-114 351.5 359.3 7.8 0.93 0 0.93
D-10-114 399.1 401.5 2.4 4.70 0 4.70
D-10-115A 87.4 91.1 3.7 2.4 3.29 8 3.29 DNW
D-10-115A 185.5 189.0 3.5 2.6 0.75 2 0.75 DNW2 Zone
D-10-117 150.0 150.1 0.1 0.00 0 0.00 DNW
D-10-117 188.0 189.7 1.7 1.0 18.44 18 18.44
D-10-117 241.3 246.0 4.8 2.3 4.06 9 4.06 DNW2 Zone
D-10-117 273.5 275.0 1.5 1.58 0 1.58
D-10-118 74.0 83.1 9.1 5.5 2.67 15 2.67 DNW
D-10-118 86.0 87.5 1.5 1.83 0 1.83
D-10-118 177.5 179.0 1.5 1.28 0 1.28
D-10-118 184.0 193.1 9.1 5.2 4.56 24 4.28 DNW2 Zone
D-10-119 163.0 164.5 1.5 1.2 3.21 4 3.21 DNW
D-10-119 194.8 196.3 1.5 1.2 1.35 2 1.35
D-10-119 279.5 285.5 6.0 4.0 4.77 19 4.77 DNW2 Zone
----------------------------------------------------------------------------
(i) Assays for the DNW zone are capped at 50 g/t Au. Assays for the DNW2
Zone were capped at 15 g/t Au.
Assay capping values were derived from a resource study carried out by P&E
Mining Consultants Inc. of Brampton, Ontario
Cautionary Notes
The ability of Avion to increase production to 200,000 ounces of
gold per year has not been the subject of a feasibility study and
there is no certainty that the proposed expansion will be
economically viable. Further, the ability of Avion to profitably
mine the Dioulafoundou deposit has not been the subject of a
feasibility study and there is no certainty that such production
will be economically viable.
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, without limitation,
statements regarding the updated resource and its impact 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 first figure associated with this release, please
visit the following link:
http://media3.marketwire.com/docs/avgcf1019fig1.pdf.
To view the second figure associated with this release, please
visit the following link:
http://media3.marketwire.com/docs/avgcf1019fig2.pdf.
To view the third figure associated with this release, please
visit the following link:
http://media3.marketwire.com/docs/avgcf1019fig3.pdf.
Contacts: Avion Gold Corporation Michael McAllister Manager,
Investor Relations (416) 309-2134 info@aviongoldcorp.com