Avion Resources Intersects 73.5 Metres of 2.72 g/t Gold at Segala Gold Project, Mali
07 October 2008 - 7:30AM
Marketwired Canada
Avion Resources Corp. ("Avion Resources" or "the Company") (TSX VENTURE:AVR),
today announced the completion of the 2008 drilling program at the Segala and
Tabakoto gold projects, Mali (West Africa). In total, Avion drilled 79 holes
(15,341 metres), since the acquisition of the Mali projects, in May 2008. The
program objective was to substantiate previous mineral resource estimates at
Segala and Tabakoto, discover additional zones and to delineate a new geological
model for the deposits. An updated resource estimate for the Segala gold project
is expected in the fourth quarter of 2008, with planned production at Segala
commencing shortly thereafter in the first quarter of 2009. An updated resource
for Tabakoto is planned for the first quarter of 2009.
A total of 26 holes were drilled in the Segala area this year. This work
confirmed the grade and the continuity of the Segala zone, resulted in the
discovery of a new zone of gold mineralization (along Segala Far NW trend) that
is located approximately 600 metres northwest of the Segala deposit, and
developed numerous additional exploration targets. Hole S-08-19, which tested a
145 metre, on-section gap in the Segala Zone, returned 2.72 g/t Au over 73.5
metres (see figure) core length (approximately 41.4 metres true width). This new
intercept is consistent with historic drill intercepts for the Segala zone,
along a 300 m strike from 50 metres to 450 metres depth that returned from 1.96
g/t Au to 8.72 g/t Au over true widths of 9.0 metres to 43.5 metres. Intercepts
that lie along the same 25 metre wide section as hole S-08-19 are listed below.
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Hole From (m) To (m) Drilled Estimated True Au (g/t)
Width (m) Width (m)
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S-08-19 167.0 240.5 73.5 41.4 2.72
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incl. 183.0 215.0 32.0 18.0 4.33
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SRC-365(i) 34.5 60 25.5 21.0 5.11
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S-125(i) 83.5 98.5 15 14.0 2.49
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SD94-4(i) 102.1 121.2 19.1 18.0 6.10
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S-123(i) 134.5 178.0 43.5 31.0 3.84
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SD96-08(i) 298.9 316.8 17.9 15.0 8.72
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SD97-42(i) 440.3 466.3 26 16.0 3.68
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(i) Historic drill intercepts on section 259900 (+/- 12.5 metres)
Hole S-08-13, which returned 0.86 g/t Au over 60 metres core length (including
2.6 g/t Au over 12.0 metres core length), is located in the Segala Far NW area
of the Segala property (see figure) and is situated approximately 180 metres
from Hole S-08-08 (existing Segala deposit), which returned 10.5 metres of 8.51
g/t Au earlier in the program. (For more information on Hole S-08-08, refer to
news release dated August 21, 2008.) These intercepts, with no drill holes
between, suggest the potential for a new mineable zone, and future drilling will
be planned to further test the potential of the area.
Results from the Tabakoto area, located approximately 5 kilometres from the
Segala deposit, also returned positive results. In total, 29 holes were drilled
at Tabakoto in 2008, with assays from 14 holes pending. Significant
mineralization in the Tabakoto deposit area includes:
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Hole From (m) To (m) Drilled Au (g/t)
Width (m)
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T-08-02 6.5 18.0 11.5 7.41
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and 102.3 103.5 1.2 12.69
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and 112.7 126.5 13.8 11.66
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T-08-03 83.0 86.4 3.4 3.23
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and 143.2 143.8 0.6 19.20
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T-08-04 156.0 157.5 1.5 5.24
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195.5 199.3 3.8 5.56
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T-08-05 158.0 168.2 10.2 9.21
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T-08-07 43.0 67.0 24.0 1.34
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76.0 79.0 3.0 6.99
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T-08-08 6.0 52.7 38.4 2.18
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Incl. 6.0 21.3 13.8 4.90
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T-08-09 9.0 31.0 22.0 4.55 (3.88 cut(i))
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T-08-10 240.0 248.1 8.1 0.68
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T-08-11 48.0 48.5 1.5 4.41
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61.5 64.5 3.0 2.77
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T-08-12 100.0 124.0 24.0 15.56 (5.01 cut(ii))
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T-08-13 89.8 93.8 4.0 67.08 (11.08 cut(iii))
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(i)one sample cut from 39.8 g/t Au to 30.0 g/t Au
(ii) samples cut from 257 g/t Au and 96.7 g/t Au to 30.0 g/t Au
(iii) one sample cut from 254.0 g/t Au to 30.0 g/t Au
Holes T-08-02 to T-08-05 were drilled to test a NW-trending structure that cuts
the north end of the Tabakoto pit. These intercepts indicate the presence of a
NW mineralized structure that locally has high gold grades. Assays are pending
for four more holes that have been drilled to test this NW structure along
strike. Avion will evaluate the grade and continuity of this structural trend
once all assays have been received.
Holes T-08-07 to T-08-13 were drilled to test the northward continuation of the
Tabakoto mineralized trend. The near-surface intercepts in holes T-08-07,
T-08-08 and T-08-09 appear to form a coherent 75 plus metre long zone of
potentially open-pittable mineralization starting 50 metres north of the
northern edge of the Tabakoto pit.
Holes T-08-12 and T-08-13 were drilled to further test the northern extension of
the Tabakoto trend some 250 metres and 450 metres north of the edge of the
Tabakoto pit, respectively (see figure) and approximately 500 metres south of
previously reported (on August 21st, 2008), hole DS-08-01 which returned 13.56
g/t (5.49 g/t cut) over 22.5 metres. Results from both of these holes indicate
additional potential for mineable zones that are less than 1 km from the
Tabakoto mill.
22 additional holes were drilled to test targets situated near the Segala and
Tabakoto deposits. These targets included Dar Salam (8 holes), Diolafoundou (4
holes), Famakan (2 holes), Moralia area (6 holes) and a soil anomaly area
identified earlier this season (2 holes). (To view Mali Gold Project Map, please
visit the Avion Resources website at www.avionresources.com.) Additional holes
will be planned for selected follow-up areas once all assays have been received
and analyzed.
"The differences between the mineralized zones at Tabakoto and Segala areas have
become more apparent as Avion's evaluation program progresses." commented Don
Dudek, Senior Vice President, Exploration. "In the Segala area the gold
mineralized zones are hosted within a zone of iron carbonate-and
sericite-altered sediments oriented parallel to at least 3 west-northwest
trending shear zones. Avion believes that the gold mineralization at Segala
displays good continuity both along strike and down plunge and that there is a
high likelihood of adding to the previous mineral resource base. In contrast, at
Tabakoto, the shearing is less obvious with high grade zones occurring where
secondary northeast-and northwest-trending structures intersect a
north-northeast trending package of generally weakly gold mineralized felsic to
intermediate intrusions and associated sediments. Avion's work along a 2 km
strike of this trend in the Tabakoto pit area and previous drilling indicate to
Avion that the cross-structures occur approximately every 50 to 100 metres and
thus provide good potential for the development of underground and to a lesser
extent open pittable mineable resources."
Recovery Gold Pour
In August, the first gold pour at the Mali gold properties was carried out since
the acquisition of the Segala and Tabakoto projects from Nevsun Resources Ltd.
The gold was retrieved from gold recovery initiatives started earlier in the
season, with 20 areas for gold recovery identified. In total, approximately
1,000 ounces of gold were recovered, producing four gold bars during three gold
pours. At least three additional gold pours are planned before the end of the
fiscal year. Revenue from the sale of the product of the gold pour is being used
to offset the project maintenance costs as Avion moves forward to production.
Also, Avion recently received cash from consulting fees earned for a transaction
relating to the geological evaluation and analysis of a potash project in
Ethiopia. Gross fees equaled $500,000 (Canadian) and a 1% NSR. Proceeds from
this transaction have been used to cover expenses related to the development of
the Segala and Tabakoto projects.
Segala and Tabakoto Projects
As reported on September 15, 2008, the Company plans to focus on the Segala
project during the first phase of a new mining strategy. Avion Resources plans
to commence mining operations at Segala with open-pit production (at a projected
low-strip ratio), followed by underground mining. The Company believes that the
new plan will realize robust, earlier-than-expected cash flow from operations,
as Avion Resources anticipates production to begin at Segala in mid-February
2009. The strategy is to mine near-surface mineral resources to minimize waste
stripping and then proceed to underground mining.
"Management is extremely excited about the new Segala and Tabakoto mining
strategy set forth in September. Recent assays from Segala and Tabakoto confirm
our approach and continue to demonstrate the potential of the properties , as
well as surrounding target areas," commented John Begeman, President and CEO.
"We are well positioned to move forward to the next phase of the strategy as our
team prepares for production, targeted for February 2009."
Avion's procedures for handling drill core comprise initial description and
logging into a Microsoft Access database. Mineralized and suspected mineralized
intervals in the holes are described in detail and marked for sampling. Core is
then cut in half with the right-hand portion of the core put into plastic sample
bags and sealed. Assay standard samples are inserted every 20th sample and split
core from every 20th sample is also quartered and sent in as a separate sample
to double check the assays from these intervals. This sampling procedure was
initiated and periodically reviewed by Avion's Senior Vice President of
Exploration, Don Dudek. These samples were then delivered to a representative of
ALS Chemex based in Bamako, Mali. The assay samples are then fine-crushed to
better than 70% passing a -2mm screen, with an assay pulp split of up to 250
grams pulverized to better than 85% passing 75 micron screen. Gold values were
determined by Fire Assay and AAS with a 50 gram nominal sample weight. In order
to ensure that local, exceptionally high grade assays are not overly represented
in assay composites Avion is also presenting assay composites with high grade
samples capped at 30 g/t Au.
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a
qualified person under National Instrument 43-101, has reviewed the scientific
and technical information in this press release. Avion Resources has not
completed a feasibility study on the Mali gold projects and there is no
certainty the proposed operations will be economically viable.
About Avion Resources Corp.
Avion Resources is a Canadian-based exploration and development company focused
on strategic acquisitions in Africa. Avion has a team of highly qualified
geologists and operational staff that are focused on developing the Tabakoto and
Segala properties. Avion currently holds 80% of the Tabakoto and Segala gold
properties in Mali.
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 new mining
strategy on the Company; projections regarding the timing of production and the
elements of the mining strategy. 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.
Should you wish to receive Company news via email, please email
info@avionresources.com and specify "AVR News" in the subject line.
To view the Tabakoto Pit map, please visit the following link:
http://media3.marketwire.com/docs/Tabakoto%20Pit.pdf