Avion's Hounde Property, Burkina Faso, Continues to Return Wide High Grade Intercepts
14.06.2012 | Marketwire
3.12 g/t Au over 62.0 Metres and 3.48 g/t Au over 62.0 MetresTORONTO, ONTARIO -- (Marketwire) -- 06/14/12 -- Avion Gold Corporation (TSX: AVR) (OTCQX: AVGCF) ("Avion" or the "Company") is pleased to announce results for an additional 33 holes drilled in 2012 in the Vindaloo zone area, Hounde Project, Burkina Faso (see Figure 1). A summary of select intercepts are as follows:
- 5.02 g/t Au over 6.0 metres
- 3.12 g/t Au over 62.0 metres
- 3.48 g/t Au over 62.0 metres
- 7.74 g/t Au over 10.0 metres
- 5.27 g/t Au over 16.0 metres
- 1.87 g/t Au over 16.0 metres
- 2.16 g/t Au over 19.0 metres
- 2.85 g/t Au over 17.0 metres
- 2.61 g/t Au over 23.6 metres
- 1.49 g/t Au over 36.0 metres
- 1.72 g/t Au over 25.0 metres
- 1.44 g/t Au over 21.0 metres
These holes predominantly tested the central part of the Vindaloo zone where Avion has defined Indicated mineral resources of 13.41 million tonnes at 2.07 g/t Au totaling 893,000 ounces of gold and Inferred mineral resources of 10.71 million tonnes at 2.07 g/t Au totalling 712,000 ounces of gold. Holes HD-12-35 with 3.12 g/t Au over 62.0 metres and HD-12-36 with 3.48 g/t Au over 62.0 metres (Figure 1), were drilled 200 metres apart and represent near-surface intercepts that further support the economic potential of the Vindaloo zone. In addition, intercepts of 1.26 g/t Au over 8.6 metres and 1.73 g/t Au over 11.0 metres in hole HA-12-08 and 1.72 g/t Au over 25.0 metres in hole HA-12-10 extend the Vindaloo West zone further to depth. The Vindaloo West zone lies from 50 to 75 metres west of the Vindaloo zone and has returned intercepts to 2.18 g/t Au over 29.7 metres.
Don Dudek, Avion's Senior Vice President Exploration stated: "Avion continues to be rewarded by good grade and width intercepts from the Vindaloo zone and from the adjacent Vindaloo West zone which is still open along strike and to depth. With the results we have seen to date it is easy to see the potential for production at the Vindaloo zone in the near future."
This news release presents the results from 33 core and reverse circulation holes totaling approximately 5,432 metres of drilling. Assay from an additional 26 holes is still pending. A summary of all the current drill intercepts is attached at the end of this press release.
The gold-bearing zones that define the Vindaloo zone, now including the Madras and Madras NW zones (see Figure 2), have now been traced, by drilling, more or less continuously for approximately 5.6 kilometres. Avion has now completed at least one hole per 100 metres of strike along the defined mineralized trends. The current mineral resource is defined as the southern 2.65 kilometres part of the Vindaloo zone. Drilling, and the discovery of a new artisanal zone, located to the south along strike of the mineral resource area could potentially add another 3.7 kilometres of strike to the Vindaloo zone for a total of 9.3 kilometres.
The Vindaloo zones are hosted by an intensely sericite- and silica-altered mafic intrusion and similarly-altered, intensely sheared and altered intermediate to mafic volcanoclastics. The mineralization is often quartz stockwork-style and is weakly to moderately pyritic. The entire mineralized package strikes north-northeast and dips steeply to the west to vertical. Drilling along the approximate 1.2 kilometre strike of the central core of the Vindaloo gold system has defined a coherent gold-mineralized, apparently shallow south plunging zone that has been traced at least to 300 metres depth. Along strike, both to the north and south of the core of the Vindaloo zone, the gold mineralization can vary from weak to quite strong over relatively short, generally vertical distances, leading to nodes of higher grade mineralization connected by less well gold mineralized zones.
In 2012, 134 holes totaling approximately 20,220 metres have been drilled on the Hounde Property with just over 50% of the drill program completed. This program was designed to define additional inferred mineral resources, in-fill drill where necessary to support a Preliminary Economic Study (PEA) and continue to extend the mineralized zones along strike. Approximately 60% of the assays submitted for analysis have been received. Baseline work for the PEA is continuing with potential water dam sites located, initial land ownership surveys completed, potential tailings sites, a possible mill site and on-going community relations work.
Avion's 2012 US$ 12.4 million exploration program is continuing with 241 holes totaling approximately 36,540 metres completed at the Hounde, Tabakoto and Kofi properties. The Hounde Preliminary Economic Assessment has been initiated with completion expected in Q4 2012 to allow for the reception of sufficient drill data.
Avion's procedures for handling core have been presented in previous news releases (See for e.g. Avion's News Release dated September 10, 2011). Assays presented in the attached table have been capped at 30 g/t Au. SGS Laboratories in Ouagadougou and Kaya, Burkina Faso was the independent laboratory used in the testing of the assay samples.
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
Mining in Burkina Faso
The mining industry in Burkina Faso is growing at a rapid rate due to a combination of a stable elected democratic government, excellent geology and a competitive fiscal regime. Currently six gold mines are in production or development in Burkina Faso (Essakane - IAMGOLD Corporation, Mana - SEMAFO, Inata - Avocet Mining PLC, Youga - Endeavor Mining Corporation, Taparko - High River Gold Mines Ltd., Kalsaka - Cluff Gold PLC). In 2012, it is expected that Burkina Faso will become the fourth largest gold producing country in Africa. The country has legislated low taxes with a corporate tax rate of 20% for mining companies. The government is entitled to a 10% free carried interest and a competitive 3-5% sliding royalty on gold production. Political and economic protests that occurred back in the spring of 2011 did not materially affect Avion's exploration program and no new issues of concern have since arisen.
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 approximately 51,290 ounces produced. 2010 production was 87,630 ounces of gold. 2011 production was 91,200 ounces of gold. The current mineral reserve estimate (as of January 1, 2012) of 6.91 million tonnes grading 3.73 g/t Au totaling 827,100 ounces of gold (proven and probable), for the Tabakoto project property, demonstrates several sources of excellent grade open pit and good grade underground mineral resources thus providing significant flexibility for Avion's future mining plans. The Company has developed an underground mine at the Tabakoto deposit, and is developing another underground mine at the Segala deposit. The Tabakoto project property also contains several producing open pit mines. Production sustainability will continue to be supported by exploration programs over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure, and contains mineral resources on the Kofi property. Additionally, mineral resources have grown considerably at Avion's 1,600 km2 Hounde exploration property in Burkina Faso. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
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 drilling results on the Company; statements with respect to the development potential and timetable of the Hounde project; statements regarding the political environment and mining industry in Burkina Faso; 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; results of geophysical data and metallurgical results; results and timing of drilling programs; 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 those 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.
Summary Current 2012 Vindaloo Drill results
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mineralized interval (m)
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Estimated
true
Hole # from to width width (m) Au (g/t) Au (capped)
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HD-12-34 35.0 41.0 6.0 3.4 5.02 5.02
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HD-12-35 8.0 70.0 62.0 35.7 3.12 3.12
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HD-12-36 16.0 78.0 62.0 43.9 3.48 3.48
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HD-12-37 NSR
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HD-12-38 50.0 55.0 5.0 2.8 2.21 2.21
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HD-12-39 35.0 37.0 2.0 1.3 1.98 1.98
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HD-12-40 64.0 74.0 10.0 6.4 7.74 7.74
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HD-12-41 27.0 43.0 16.0 9.4 5.27 5.27
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HD-12-42 40.0 41.0 1.0 0.6 2.31 2.31
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HD-12-43 60.0 66.0 6.0 3.6 1.19 1.19
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HD-12-44 7.0 18.0 11.0 6.1 6.46 6.46
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HD-12-45 26.0 27.0 1.0 0.6 1.12 1.12
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HD-12-45 34.0 50.0 16.0 10.1 1.87 1.87
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HD-12-47 NSR
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HD-12-65 104.0 106.0 2.0 1.4 0.54 0.54
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HD-12-69 NSR
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HD-12-70 58.0 61.0 3.0 2.3 1.07 1.07
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HD-12-71 57.0 64.0 7.0 5.0 1.13 1.13
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HD-12-71 75.0 76.0 1.0 0.7 2.92 2.92
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HD-12-71 100.0 106.0 6.0 4.3 2.75 2.75
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HD-12-71 132.0 135.0 3.0 2.1 5.88 5.88
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HD-12-86 NSR
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HD-12-87 99.0 100.0 1.0 0.7 3.50 3.50
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HD-12-87 144.0 163.0 19.0 13.6 2.16 2.16
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HD-12-87 171.0 172.0 1.0 0.7 1.07 1.07
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HD-12-88 84.0 90.0 6.0 4.5 0.97 0.97
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HD-12-88 96.0 97.0 1.0 0.7 5.07 5.07
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HD-12-89 147.0 151.0 4.0 2.8 2.64 2.64
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HD-12-90 137.0 138.0 1.0 0.7 1.30 1.30
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HD-12-90 142.0 144.0 2.0 1.4 1.50 1.50
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HD-12-91 145.0 147.0 2.0 1.0 1.98 1.98
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HD-12-91 160.0 162.0 2.0 1.0 1.03 1.03
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HD-12-92 36.0 37.0 1.0 0.5 3.59 3.59
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HD-12-92 90.0 107.0 17.0 10.9 2.85 2.85
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HD-12-92 117.0 141.0 24.0 14.9 1.11 1.11
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HD-12-92 152.0 153.0 1.0 0.6 1.91 1.91
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HD-12-93 46.0 47.0 1.0 0.6 1.51 1.51
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HD-12-93 54.0 55.0 1.0 0.6 1.58 1.58
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HD-12-94 2.0 3.0 1.0 0.7 1.10 1.10
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HD-12-94 29.0 30.0 1.0 0.7 2.04 2.04
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HD-12-95 NSR
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HA-12-01 344.3 351.3 7.1 5.0 1.19 1.19
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HA-12-01 419.0 421.0 2.0 1.5 1.12 1.12
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HA-12-01 439.0 442.6 3.6 2.7 1.44 1.44
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HA-12-02 247.1 270.7 23.6 16.8 2.61 2.61
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HA-12-02 284.8 290.1 5.3 3.8 2.64 2.64
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HA-12-02 329.0 332.4 3.4 2.5 1.48 1.48
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HA-12-02 334.5 335.6 1.1 0.8 0.99 0.99
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HA-12-02 342.9 346.3 3.3 2.4 2.69 2.69
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HA-12-02 392.5 394.0 1.5 1.1 1.82 1.82
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HA-12-08 101.50 110.11 8.61 5.10 1.26 1.26
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HA-12-08 121.00 132.00 11.00 6.83 1.73 1.73
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HA-12-08 217.00 253.00 36.00 23.14 1.49 1.49
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HA-12-08 257.70 258.60 0.90 0.59 2.06 2.06
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HA-12-09 0.00 NSR
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HA-12-10 137.00 138.00 1.00 0.56 1.85 1.85
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HA-12-10 140.00 165.00 25.00 14.91 1.72 1.72
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HA-12-10 238.65 242.00 3.35 2.02 3.40 3.40
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HA-12-10 248.00 249.50 1.50 0.97 1.13 1.13
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HA-12-10 276.85 297.85 21.00 14.46 1.44 1.44
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HA-12-11 181.76 183.10 1.34 0.76 2.31 2.31
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HA-12-11 241.00 243.00 2.00 1.14 1.31 1.31
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HA-12-11 278.70 282.42 3.72 2.14 2.18 2.18
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HA-12-11 301.00 314.00 13.00 7.55 1.49 1.49
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HA-12-11 330.00 334.00 4.00 2.33 2.01 2.01
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(i) Assays have been capped at 30 g/t Au
(ii) HA series holes are core holes, HD series holes are reverse circulation holes
NSR = No Significant Results
To view the map associated with this press release, please visit the following link:
http://media3.marketwire.com/docs/AVR-Map.pdf
Contacts:
Avion Gold Corporation
Michael McAllister, Manager, Investor Relations
(416) 309-2134
info@aviongoldcorp.com