Avion Gold Corporation (TSX VENTURE: AVR)(OTCQX: AVGCF)(PINK
SHEETS: AVGCF) ("Avion" or the "Company") announces second quarter
2010 production of approximately 22,210 ounces of gold from its
Tabakoto/Segala operations in Mali, West Africa. This is a 102%
increase in gold production over the second quarter of 2009, when
10,992 ounces of gold was produced, and a 42% increase in
production over Q1 2010 where 15,710 ounces of gold was produced.
Year to date gold production for 2010 is 37,920 ounces.
In June, 2010, Avion processed 60,000 tonnes of ore at an
average grade of 4.85 g/t Au, with a 95.9% mill recovery, for gold
production of 8,960 ounces. During the second quarter of 2010 the
Company milled 183,100 tonnes of ore at an average grade of 3.95
g/t Au, with a 95.8% mill recovery, compared to second quarter of
2009 production of 182,600 tonnes of ore processed at an average
grade of 1.99 g/t Au, with a 93.7% mill recovery. 2010 second
quarter production was also markedly better than during the first
quarter where some non-recurring plant mechanical and open pit
production problems prevented optimum gold production.
Commenting on the production results, Mr. Andrew Bradfield,
Avion's Chief Operating Officer, stated: "Second quarter production
was better than budgeted. High grade ore mined and milled from
Segala, combined with some surface mined ore from Tabakoto, were
the main drivers for the better than planned production during the
month. Avion continues to demonstrate its ability to meet its
stated targets and is on track to produce between 75,000 and 85,000
ounces of gold in 2010".
Avion continues its infrastructure construction and equipment
mobilization to prepare for the underground development of its
Tabakoto deposit in Q3 of this year. The Australian underground
mining contractor engaged by Avion has also incorporated a Malian
subsidiary and is preparing to ship equipment and supplies to
Tabakoto.
The Company has received its Environmental Permit to mine the
Dioulafoundou Deposit. Preparations for mining, such as a stream
diversion, fencing around the deposit, and access road construction
are well underway, and the Company plans to commence mining the
deposit beginning in mid-October this year, after the upcoming
rainy season. Capital costs to develop Dioulafoundou are expected
to be less than $1,000,000. The resource estimate for Dioulafoundou
is being finalized now, and is expected to be released in the next
month. In 2011, the Company plans to supplement Segala open pit ore
with production from Dioulafoundou, and development ore from
Tabakoto and Segala underground operations.
Preparations for the rainy season are essentially complete,
including filling the diesel storage tanks to capacity, and
ensuring that continuous diesel shipments are received. Current
fuel capacity represents 85 days of production needs.
Tender documents for an Engineering, Procurement, Construction
Management ("EPCM") contract have been sent to several firms for
the process plant expansion project. The plant capacity has been
planned to increase from 2,000 tonnes per day to 4,000 tonnes per
day. Avion expects to award the contract in July, 2010.
Avion plans to release its Q2 Financial Results on Thursday
August 26, 2010. Management plans to host a conference call
following release of the results to the market.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West
Africa that holds 80% of the Tabakoto and Segala gold projects in
Mali. Gold production commenced at these projects in 2009 with just
over 51,000 ounces produced; 2010 production is estimated at 75,000
to 85,000 ounces. Production sustainability is supported and
enhanced by an aggressive 2010 drill program over an approximately
600 km2 exploration package that both surrounds and is near to the
Company's existing mine infrastructure. Additionally, a new, 1,670
km2 exploration property in Burkina Faso is expected to return good
results from an ongoing drill program. These properties are the
subject of an approximate US$ 12 million dollar, 60,000 metre plus,
drill-focused exploration program in 2010, which is expected, 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.
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
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