Avala Resources Limited: Provides an Exploration Update
26.02.2015 | Marketwire
LONGUEUIL, Feb 26, 2015 - Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to announce trenching results on assays received from the Gubavce epithermal system and its spring 2015 work program. During Q3 2014, the Company had conducted a short trenching program over the Gubavce epithermal prospect. This program resulted in the collection of 415 samples along 827 meters of trenches. Significant intersections recently compiled, which include 8m @ 18.1g/t Au, 36.1ppm Ag and 2.16% Pb, are listed in the table below. Gubavce is part of the Gubavce-Bakrenjaca epithermal gold and base metal prospect that was identified in 2013. This prospect is located in the southern half of the 100% held Tulare Project license, approximately 3 km south of the Kiseljak copper-gold porphyry deposit in Southern Serbia (refer to Figure 1).
| Trench ID | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (ppm) | Pb (%) | AuEq (g/t) | |
| GUTR005 | 38 | 68 | 30 | 0.55 | 6.8 | 0.52 | 0.87 | |
| including* | 38 | 48 | 10 | 1.07 | 11.5 | 0.61 | 1.49 | |
| GUTR006 | 62 | 82 | 20 | 7.44 | 16.4 | 1.09 | 8.12 | |
| including* | 62 | 70 | 8 | 18.1 | 36.1 | 2.16 | 19.51 | |
| GUTR007 | 38 | 72 | 34 | 1.07 | 5.9 | 0.51 | 1.37 | |
| including* | 44 | 50 | 6 | 2.16 | 7.1 | 1.7 | 2.98 | |
| including* | 56 | 64 | 8 | 1.83 | 6.2 | 0.21 | 2.00 | |
| GUCH014 | 10 | 26 | 16 | 0.59 | 11.7 | 2.12 | 1.65 | |
| GUCH014 | 32 | 48 | 16 | 0.35 | 5.5 | 0.84 | 0.78 | |
| GUCH015 | 38.5 | 48 | 9.5 | 0.23 | 5.7 | 1.24 | 0.83 | |
| GUTR017 | 50 | 62 | 12 | 0.41 | 7.7 | 0.93 | 0.91 | |
| GUCH018 | 38 | 50 | 12 | 0.35 | 5.8 | 0.64 | 0.70 |
- Significant intervals calculated using 0.5 g/t AuEq cut-off (using $1,300/oz. Au, $18/oz Ag, $0.80/lb. Pb); included intervals (*) calculated using 1.0g/t AuEq cut-off; No top cut applied.
- AuEq=((Au_ppm x 41.7959)+(Pb_ppm x 0.001764)+(Ag_ppm x 0.5787))/41.7959
- Intersections calculated using 5 meter minimum thickness, 5 meter maximum included waste.
- Trench samples are equivalent to HQ half core in size, using a nominal 2m sampling basis and weigh ~3-6kg.
- Intercept widths do not necessarily represent true width.
The Gubavce carbonate-base metal gold epithermal vein system comprises east-west trending corridors of sheeted to stockwork manganese carbonate ± quartz gold-silver-base metal veins hosted within argillic (sericite-illite-smectite) altered andesitic volcanics, volcaniclastics and sediments. Mapped zones of mineralization at surface range from less than one meter to greater than thirty meters width. Results from scout exploration drilling (diamond and reverse circulation) carried out in 2013 and earlier on this epithermal system were released by Dunav Resources on November 25, 2013 along with the results of preliminary metallurgical test work that indicated average recoveries of 94% Au, 88% Ag and 97% Pb.
SPRING 2015 WORK PROGRAM
Following on the above results, Avala plans to commence a detailed review of the Gubavce-Bakrenjaca prospect with the addition of new trenches covering both the Gubavce and Bakrenjaca prospects in order to determine the extent of mineralisation and overall economic potential during the 2015 field season which should start in April. From mapping and surface geochemical sampling, the Company believes that the area holds the potential for a number of parallel zones of mineralisation which have yet to be tested.
The Company has also carried out an extensive review of geochemical and geophysical datasets on the recently renewed Bigar Istok license, with an aim to expand the existing resource base at the Timok Gold Project in Eastern Serbia. This work has highlighted a number of potential linkage zones between porphyry and sediment-hosted gold mineralization. To this end, the Company plans to commence a detailed geological and alteration mapping program, followed by trench and channel sampling during the upcoming field season.
QA / QC
Trench sampling was carried out as channels in the wall just above the trench floor on 2m intervals. The samples were routinely weighed prior to final bagging to maintain an even sample size and to avoid sampling bias in harder rock types. An average channel sample weight was maintained at 3kg/m, which produces a consistent sample weight approximating half HQ core samples. Field duplicate samples were taken every 20 samples and internationally accredited standards and blanks were inserted into the sample stream after every 20th sample.
The Company has established a laboratory facility at Bor, Eastern Serbia which is independently managed by SGS. At this independently managed assay facility, analysis of trench samples for gold is carried out using a 50g fire assay charge with an AAS finish. Silver, lead, zinc and copper are analyzed using an aqua regia digest (0.3g charge) followed by either an AAS or ICP-MS finish.
Mr. John Wakeford, a qualified person under NI 43-101, has reviewed the technical data in this press release. Mr. Wakeford is a director to the Company.
About Avala Resources Ltd.:
Avala Resources is a mineral exploration company focused on the exploration and development of the gold and copper projects with over 950 km2 of prime exploration area under licence in Serbia.
The Company's flagship projects are the Timok Gold Project which comprises the Korkan, Bigar Hill and Kraku Pester deposits and the Tulare Project which comprises the Kiseljak and Yellow Creek porphyry copper-gold deposits and the Gubavce-Bakrenjaca carbonate-base metal gold epithermal vein system.
The common shares of Avala trade on the TSX Venture Exchange under the symbol 'AVZ'. Avala had approximately $2.6 million in its treasury at January 31, 2015. Avala's issued and outstanding share capital totals 43,598,149 common shares, of which approximately 50.1% is held by Dundee Precious Metals Inc. (TSX:DPM).
Cautionary Statement
Some of the statements contained in this press release are 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward looking information in this press release includes information about the results of the exploration activities and interpretation of such results, the nature, potential size and continuity of the mineralization system, the timing and completion of future work programs, and the potential for further discoveries and increase of current resources. Since forward-looking information are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in such statements for many reasons such as: mineral exploration is subject to geological uncertainties and interpretation; changes in demand and prices for metals; operational difficulties encountered in connection with the activities of the Company; changes in general economic conditions and conditions in the financial markets; the Company's financial condition, and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors made in public disclosures and filings by the Company should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, 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 press release.
Figure 1 and Figure 2 are available at this address:
http://media3.marketwire.com/docs/994060eMAPS.pdf
Contact
Avala Resources Ltd.
James Crombie, President and Chief Executive Officer
+1.450.640.0810
info@avalaresources.com
www.avalaresources.com