Avala Resources Continues to Expand the Korkan-Bigar Target Area with Wide-Spaced Diamond Drilling: Intersects 21 Meters at 1.68
11 February 2011 - 12:30AM
Marketwired
Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala")
is pleased to present an update on drill results from the
Korkan-Bigar target area, part of the sediment-hosted gold belt
within the Cretaceous magmatic arc bordering the Timok Magmatic
Complex ("TMC") in Eastern Serbia.
1. HIGHLIGHTS
-- Wide-spaced 'step out' drilling on the Korkan-Bigar target area
continues to intersect gold mineralization within the target
stratigraphy, a sequence of intensely altered and decarbonatized
conglomerates and sandstones with interbedded fine grained sandstone and
clay-rich siltstones.
-- Drilling of the Korkan-Bigar target area returned the following wide,
near surface, gold intercepts (0.4g/t cut-off grade):
-- KODD009 (located 80 meters east from discovery drill hole KODD001):
-- 21m @ 1.68g/t (from 34m)
-- Including: 18m @ 1.88g/t (from 34m)
-- 24m @ 1.56g/t (from 63m)
-- Including: 22m @ 1.65g/t (from 63m)
-- KODD016 (located 650 meters southeast from discovery drill hole
KODD001):
-- 16.8m @ 2.07g/t (from 20.2m)
-- Including: 10m @ 3.22g/t (from 27m)
-- To date Avala has outlined gold mineralization over an approximate area
of 700 meters by 300 meters surrounding the original discovery hole
(KODD001). Avala intends to continue the wide-spaced drilling program to
test the prospective 'target stratigraphy' which covers an area of
approximately 3.5 square kilometers within the Korkan-Bigar target area
so as to effectively scale the size of the newly defined sediment-hosted
gold system.
-- Avala currently has six diamond drill rigs allocated to the Korkan-Bigar
target area. One diamond drill rig has been allocated to the southern
portion of the sediment-hosted gold belt on the Umka-Strnjak target area
where scout drill holes are being drilled on nominal 1,000 meter centers
within the target stratigraphy.
-- The combined Korkan-Bigar target area is over 10 kilometres long and 2.5
kilometers wide and represents the northern portion of the sediment-
hosted gold belt.
2. GEOLOGY AND MINERALIZATION STYLE
-- Sediment-hosted gold, located along the western margin of the Timok
Magmatic Complex, represents a previously unrecognized style of gold
mineralization within the Timok region.
-- The Korkan-Bigar target area is underlain by massive Jurassic limestone,
unconformably overlain by a polymict conglomerate and sandstone sequence
with a carbonate matrix component which is the host to the strongly
mineralized interval intersected by the initial drill hole KODD001 which
returned 52 meters at 4.30g/t gold (previously reported in a news
release dated Nov. 10, 2010).
-- Drilling has defined an interbedded fine grained sandstone and clay-rich
siltstone unit which Avala believes represents an aquitard unit within
the larger sedimentary package that defines the 'target stratigraphy'.
This unit effectively outcrops in the Korkan-Bigar target area and is
responsible for the lack of a gold geochemical response from soil
sampling over the target area. The aquitard unit has also been outlined
within the overall sedimentary package where it is generally not
mineralized.
-- The 'target stratigraphy' is overlain by an unmineralized marl unit
which in turn appears to be conformably overlain by andesitic volcanics
and volcaniclastics. Avala believes that these overlying volcano-
sedimentary units represent a barren 'cover' or 'capping' sequence. The
polymict conglomerate and sandstone unit together with the aquitard
unit, constitute the 'target stratigraphy'; which hosts the gold
mineralization intersected to date and appears to have been very gently
folded under the cover sequence and 'daylights' again at the northern
part of the Bigar target area.
-- The Korkan-Bigar target area represents possible stratabound and fault-
controlled sediment-hosted gold mineralization within a favourable
sedimentary unit; the polymict conglomerate and sandstone.
-- Figure 1 shows the location of the Korkan-Bigar target area within the
20 kilometer long sediment-hosted gold belt, defined in this image by
anomalous gold soil geochemistry.
3. DRILLING AT KORKAN
-- Avala continues the 'step out' drilling at the Korkan-Bigar target area,
on a nominal 160 meter by 160 meter spacing. The results of diamond
drill holes KODD008 to KODD018 are discussed in this release. See Table
1 for a summary of all intersections at various cut-off grades.
--------------------------------------------------------------------------
Hole ID Target From To Interval Au
Area (m) (m) (m) (g/t) Comments
--------------------------------------------------------------------------
KODD008 Korkan - - - - Intersected aquitard
West unit from surface to
limestone contact; up to
100ppb Au at the
sediment-limestone
contact.
--------------------------------------------------------------------------
KODD009 Korkan 34 55 21 1.68 Located 80m east from
KODD001; confirms wide
interval of gold
mineralization within
conglomerates and
sandstones.
including 34 52 18 1.88
and 63 87 24 1.56
including 63 85 22 1.65
and 105 110 5 0.84
--------------------------------------------------------------------------
KODD010 Korkan 235 256 21 0.54 Wide low-grade intercept
at the sediment-
limestone contact.
--------------------------------------------------------------------------
KODD011 Korkan - - - - Intersected aquitard
West unit from surface to
limestone contact; up to
100ppb Au at the
sediment-limestone
contact.
--------------------------------------------------------------------------
KODD012 Korkan 232 237 5 0.58 Wide low-grade intercept
at the sediment-
limestone contact when
employing a 0.1g/t cut-
off.
--------------------------------------------------------------------------
KODD013 Korkan 54 66 12 1.26 Located 220m southwest
from KODD001;
mineralization remains
open in this direction.
including 55 66 11 1.32
--------------------------------------------------------------------------
KODD014 Korkan - - - - Intersected marls and
aquitard unit from
surface to limestone
contact.
--------------------------------------------------------------------------
KODD015 Korkan 305 319 14 0.70 Multiple low grade
intervals returned from
the 'target
stratigraphy' when
employing a 0.1g/t cut-
off; demonstrates the
potential for stacked
mineralization.
--------------------------------------------------------------------------
KODD016 Korkan 20.2 37 16.8 2.07 Demonstrates the
potential for stacked
mineralization.
including 27 37 10 3.22
and 223 232 9 0.78
--------------------------------------------------------------------------
KODD017 Korkan Results pending
--------------------------------------------------------------------------
KODD018 Korkan 109 118 9 0.47 Multiple low grade
intervals returned from
the 'target
stratigraphy' when
employing a 0.1g/t cut-
off; demonstrates the
potential for stacked
mineralization.
200 208 8 1.60
--------------------------------------------------------------------------
-- Figure 2 shows a plan view of the current drilling program annotated
with significant intervals. Figure 3 shows a gram-meter (intervals
greater than 0.4g/t Au) x thickness, total metal contour plot of all
Korkan-Bigar drilling to date superimposed on a revised target area
geology map.
-- Strong gold mineralization is hosted within polymict conglomerate and
sandstone intervals which have been strongly decarbonatized with
intense, sooty, fine grained pyrite matrix infill. The target
stratigraphy unconformably overlies massive Jurassic limestone. To date
gold mineralization within the footwall massive limestone has been of an
overall low tenor and is generally associated with brittle deformation
i.e. brecciation.
4. DISCUSSION
-- A major sediment-hosted gold belt bordering the western boundary of the
Timok Magmatic Complex, identified by soil and trench samples, extends
over 20 kilometers along strike and is up to 8 kilometers wide.
-- The geology, geochemistry and available drill intersections suggest a
strong similarity to the style of gold mineralization typified by the
North Carlin Trend, Nevada, USA.
-- At Korkan, initial diamond drilling and at Bigar, trenching, have
outlined significant gold mineralization over a north-south length in
excess of 4 kilometers, associated with polymict conglomerate and
sandstone which have been variably decarbonatized and mineralized with
sooty, fine grained pyrite which contains significant gold values.
-- The recognition that the majority of the significant trench and diamond
drill intercepts returned to date occur within the same flat lying or
shallow dipping lithological and stratigraphic unit has significant
implications for the gold potential of the Korkan-Bigar target area and
the entire sediment-hosted gold belt.
-- Drill testing of the Korkan-Bigar sediment-hosted gold target area will
continue with wide spaced (nominal 160 meter by 160 meter) diamond drill
holes to allow Avala to effectively scale the potential size of the
sediment-hosted gold system which appears to cover an area of
approximately 3.5 square kilometers.
-- In addition, the Jurassic limestone package has strongly anomalous gold
in soil geochemistry where it is exposed in the Korkan-Bigar target area
and numerous gold mineralized trench intercepts have been returned to
date, hosted in limestone, which require drill follow-up in due course.
-- Avala controls 100% of the newly identified sediment hosted gold belt
which totals approximately 250 square kilometers and intends to
systematically drill test all currently defined priority target areas.
5. SAMPLING AND ANALYSIS
The majority of soil samples have been assayed at the ALS Chemex
laboratory, Perth, Australia. More recent programs have been
assayed at the SGS managed laboratory at Chelopech in Bulgaria
using a combination of ICP-OES and ICP-MS whereas gold has been
assayed by low level detection fire assay method with an AAS
finish. Trench samples were prepared at the SGS managed laboratory
facility at Bor, Eastern Serbia and the samples have been assayed
at the SGS managed laboratory at Chelopech in Bulgaria or the SGS
managed laboratory facility at Bor, Eastern Serbia. Diamond drill
core has been prepared at the SGS managed laboratory facility at
Bor, Eastern Serbia and assayed at either the SGS managed
laboratory at Chelopech in Bulgaria or the SGS managed assay
laboratory at Bor, Eastern Serbia. A one metre sampling interval
has been used where possible for the Sediment-Hosted Gold Belt
diamond drilling program. Following Avala standard quality
assurance procedures, a full suite of field and laboratory
duplicates and replicates along with internationally accredited
standards have been submitted with each batch of samples.
Trench sampling was carried out as channels in the wall just
above the trench floor on 2m intervals. Except where extensive soil
cover is encountered, trenches were sampled in their entirety. 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 known standards were inserted into the sample stream after
every 20th sample. A geological and structural log was completed as
for diamond drilling. All data collected in the field was routinely
entered into geology and structural geology spread sheets using
Field Marshal software for subsequent entry to an acQuire database
and validation.
Dr Julian F. H. Barnes, a qualified person under National
Instrument 43-101, a Director and the Company's Special Consultant,
has supervised the preparation of the technical data in this press
release.
Previously released data refers to data included in the "Potoj
Cuka Gold Project, Serbia National Instrument 43-101 Technical
Report" by Paul Mazzoni dated March 10, 2010 (the "Technical
Report"), filed on SEDAR at www.sedar.com. Further information in
respect of results, investigations, interpretations, quality
assurance and quality control measures, along with geology,
mineralogy, sampling, and analytical procedures is included in the
Technical Report."
About Avala Resources Ltd.: Avala is a recently-formed company
focused on the exploration and development of the Potoj Cuka
sediment-hosted gold project and the Timok gold-copper project in
Serbia. The common shares of Avala trade on the TSX Venture
Exchange under the symbol AVZ.
Avala is well-capitalized, with approximately $31 million in its
treasury at January 31, 2011, which it plans to use for the
exploration and development of its mineral projects in Serbia.
Avala's issued and outstanding share capital totals 180,202,044
common shares, of which approximately 42.1% is held by Dundee
Precious Metals Inc. (TSX: DPM).
This press release contains forward-looking information.
Although the Company believes in light of the experience of its
officers and directors, current conditions and expected future
developments and other factors that have been considered
appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on
them because the Company can give no assurance that they will prove
to be correct. Forward looking information in this news release
includes statements regarding the nature of the mineralization of
the project, the results of the exploration activities and
interpretation of such results, the gold potential of the project,
the potential size of the sediment-hosted gold system, the
suggested similarity to the style of gold mineralization of the
North Carlin Trend project, and the timing and location of future
work programs. Forward-looking information involves known and
unknown risks, uncertainties, assumptions and other factors that
may cause actual results or events to differ materially from those
anticipated in such forward-looking information. The
forward-looking statements contained in this press release are made
as of the date hereof and the Company undertakes no obligations to
update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
Figure 1, 2, 3 and Table 1 are available at the following link:
http://media3.marketwire.com/docs/maps_avala0210.pdf
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.
Contacts: Avala Resources Ltd. James Crombie President and Chief
Executive Officer 450-640-0810 info@avalaresources.com
www.avalaresources.com
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