Avion Gold Produces Over 7,800 Ounces in November 2010, and 78,500 Ounces for the Eleven Months Ended November 2010
06 December 2010 - 1:00PM
Marketwired
Avion Gold Corporation (TSX VENTURE: AVR)(OTCQX: AVGCF) ("Avion" or
the "Company") announces November 2010 monthly production of
approximately 7,827 ounces of gold from its Tabakoto/Segala
operations in Mali, West Africa. Year to date gold production for
2010 is approximately 78,490 ounces.
In November 2010, Avion processed 55,500 tonnes of ore at an
average grade of 4.50 g/t Au, with a 97.5% mill recovery, for gold
production of 7,827 ounces. Management continues to expect the
fourth quarter production target of 20,000 ounces of gold will be
exceeded, and to finish the year at the upper end of its production
guidance at +85,000 ounces of gold.
Mr. Andrew Bradfield, Avion's Chief Operating Officer,
commented: "Gold production since last June has been over 7,200
ounces per month, and the Company expects this to continue in
December, which will yield a 2010 total gold production of at least
85,000 ounces."
A year-to-date total of 305,000 tonnes of waste material has
been mined at the Dioulafoundou deposit, located 3.8 kilometres
from the Tabakoto process plant. The Dioulafoundou deposit has open
pit Indicated Mineral Resources of 502,000 tonnes grading 5.16 g/t
Au totaling 83,400 ounces of gold, and open pit Inferred Mineral
Resources of 105,000 tonnes grading 5.92 g/t Au totaling 19,900
ounces of gold (Avion news release July 14, 2010). Management
expects that mill feed in 2011 will come primarily from this
deposit as the Company transitions from open pit mining at Segala
to underground mining at the Tabakoto and Segala deposits. Mining
at Dioulafoundou in November has progressed from alluvium/laterite
to saprolite material. The upper portion of the mineralization is
hosted in saprolite, and the Company expects to commence
transporting ore to the process plant in December 2010.
Underground mine development of the Tabakoto deposit is well
established. Both the North and South access drifts have been
advanced approximately 141 metres each, for total development of
282 metres. Two headings were developed in each access in November,
which will lead to faster advance in the future.
Engineering work on the EPCM contract to double the process
plant capacity continues on schedule. Management expects that an
agreement on the purchase of a SAG and ball mill will be announced
in December 2010.
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 85,000
ounces of gold. Production sustainability is supported and enhanced
by an aggressive 2010 drill program over an approximately 600 km2
exploration package that both surrounds and is near to the
Company's existing mine infrastructure. Additionally, the 1,670 km2
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. The Company is
developing an underground mine at the Tabakoto deposit, and is
preparing to mine underground at the Segala deposit. Avion has a
highly skilled management team, with a focus on growth and
consolidation within West Africa.
Andrew Bradfield P.Eng., the Chief Operating Officer of the
Company, and a qualified person under National Instrument 43-101,
has reviewed the scientific and technical information in this press
release.
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.
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 and timing of the forecast
production and 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.
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 Corporation Michael McAllister Manager,
Investor Relations (416) 309-2134 info@aviongoldcorp.com