- Published: 19 May 2009
- Written by Editor
Avion's Measured and Indicated Mineral Resources Increases 169% at Tabakoto and Segala Gold Projects in Mali from 450,200 Ozs Gold to 1,211,300 Ozs Gold
Avion Resources Corp. ("Avion" or "the Company") (TSX VENTURE: AVR), today announced the results of an ongoing review of the mineral resource estimates for the contiguous Segala and Tabakoto gold projects in Mali (West Africa). Since releasing the Segala zone resources on December 12, 2008 (Measured and Indicated 4,001,000 tonnes @ 3.5 g/t Au and Inferred 4,072,000 tonnes @ 3.48 g/t Au) Avion has been modeling and evaluating the mineralized zones proximal to the historic Tabakoto pit, the newly discovered Dar Salam South zone and the Dioulafoundou zone. Highlights of the most recent estimates include:
- Open Pit Measured and Indicated mineral resource estimate of 4,136,000 tonnes grading 3.30 g/t Au totaling 439,300 ounces at a 1.0 g/t cut-off
- Open Pit Inferred mineral resource estimate of 2,527,000 tonnes grading 3.52 g/t Au totaling 285,900 ounces at a 1.0 g/t cut-off
- Underground Measured and Indicated mineral resource estimate of 2,685,000 tonnes grading 3.73 g/t Au totaling 321,800 ounces at a 2.0 g/t cut-off
- Underground Inferred mineral resource estimate of 3,386,000 tonnes grading 3.68 g/t Au totaling 400,500 ounces at a 2.0 g/t cut-off
The Tabakoto pit area resources, which form the bulk of the above resource estimate, combines a series of mineralized structures along an approximate 1.8 km long part of the northerly-trending Tabakoto mineralized trend (see attached figure). These mineralized structures have been defined by drill data and geological mapping in the Tabakoto pit. Avion's next step will be to better define the mineralized structures with drilling aimed at upgrading inferred resources to measured and indicated resources, and to further increase the resources on the property. To provide a guide to the strength of the mineralized system the charts at the end of this document present cut-off grades ranging from 0.5 g/t Au to 3.0 g/t Au. The resource study was prepared by Milko Rivera, P. Eng. and Farshid Ghazanfari, G.I.T. with a third party review and initial open pit versus underground mining reviews carried out by Eugene Puritch, P.Eng. of P&E Mining Consultants. Inc.
Total project measured and indicated resources now comprise 18.44 million tonnes grading 2.55 g/t Au or some 1.51 million ounces Au at a 0.5 g/t Au cut-off. Total project inferred resources total 17.68 million tonnes grading 2.58 g/t Au at a 0.5 g/t Au cut-off. Note that there have been no studies which support a cut-off grade of 0.5 g/t Au and that these resources are only provided as an indication of the size of the mineralized system on the two properties. The mineral resources in the Tabakoto Pit area combine a series of northerly-, northeast- and northwest-trending zones and a series of shallow-dipping to flat-lying zones. The mineral resources for Dar Salam comprise three distinct mineralized zones. The Dioulafoundou inferred mineral resource is understood to be one northwest-trending mineralized body. Most of the zones are open down plunge and to a lesser extent along strike. Details of the resources are presented at the end of the release.
To develop the mineral resources presented herein the first step was to create 3-dimensional models of the mineralized zones. Once these mineralized domains were defined a statistical review of the drill hole intercept data was carried out to determine capping or top cut grades. This work indicated that assays in the Tabakoto Pit area should be cut to 32.0 g/t Au, those in the Dar Salam zones to 21.5 g/t Au and the zone at Dioulafoundou cut to 28.0 g/t Au. Assay grades were then composited into 2.0 metre intervals with resources calculated with a minimum 2.0 metre width with a variety of cut-offs as presented in this release. The assumptions used to determine open pit resources include the following: Ore mining equals $2.73/t mined, Waste mining equals $1.54/t mined, Processing equals $20/t milled, G&A equals $5/t milled, Au Price equals $825/oz and Process Recovery equals 92%. The assumptions used to determine underground resources include the following : Ore mining equals $25/t mined, Processing equals $20/t milled, G&A equals $5/t milled, Au Price equals $825/oz, Process recovery equals 92%.
The newly developed resources will be presented in an independent technical report that will be filed under the profile of the Company on SEDAR within 45 days of this news release.
"The significant increase in the mineral resources in the project further supports Avion's Segala and Tabakoto expansion strategy" commented John Begeman, President and CEO. "These new resources support Avion's goal to increase the capacity of the plant from 100,000 ounces per year to 200,000 ounce per year. As well, we believe that the project and area have excellent potential to deliver more resource ounces in the future."
Milko Rivera, P. Eng , a Qualified Person under NI 43-101, and Farshid Ghazanfari are responsible for the mineral resource estimates presented herein and have reviewed the scientific and technical information in this document relating to those estimates. Updated resource calculations at the Tabakoto Deposits were independently reviewed by Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. (P&E) of Brampton, Ontario. P&E is of the opinion that the resource estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards regarding Mineral Resources and Reserves; Mr. Puritch's work indicated that in general similar resource results were obtained while using the mineralized zones that Mr. Rivera and Mr. Ghazanfari defined along with the assistance of and review by Don Dudek, P.Geo., Vice President Exploration of Avion. Avion has not completed a feasibility study in regards to the resource presented herein and there is no certainty the proposed operations will be economically viable. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
About Avion Resources Corp.
Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, with approximately 66,000 ounces of production forecast for 2009 with an expected cash cost of US$505 per ounce of gold. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
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Mineral Resource Estimate Sensitivities (1)(2)(3)(4)(5)
Tabakoto Pit Area Open Pit Measured Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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1.0 g/t Cut-off 1,253,992 2.89 116,383
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2.0 g/t Cut-off 693,667 4.07 90,878
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3.0 g/t Cut-off 389,979 5.35 67,132
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Tabakoto Pit Area Open Pit Indicated Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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1.0 g/t Cut-off 2,882,992 3.48 322,946
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2.0 g/t Cut-off 1,813,301 4.69 273,246
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3.0 g/t Cut-off 1,165,532 5.92 221,705
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Tabakoto Pit Area Open PitInferred Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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1.0 g/t Cut-off 982,628 3.47 109,568
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2.0 g/t Cut-off 651,492 4.48 93,810
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3.0 g/t Cut-off 472,113 5.25 79,728
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Tabakoto Underground Measured Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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2.0 g/t Cut-off 39,746 3.39 4,331
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3.0 g/t Cut-off 15,975 4.95 2,540
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Tabakoto Underground Indicated Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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2.0 g/t Cut-off 2,645,337 3.73 317,476
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3.0 g/t Cut-off 1,340,154 5.01 215,830
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Tabakoto Underground Inferred Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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2.0 g/t Cut-off 2,682,100 3.73 321,300
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3.0 g/t Cut-off 1,431,979 4.90 225,439
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Dar Salam Area Open Pit Inferred Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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1.0 g/t Cut-off 1,195,228 3.49 134,155
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2.0 g/t Cut-off 901,396 4.15 120,346
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3.0 g/t Cut-off 567,930 5.13 93,682
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Dar Salam Area Underground Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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2.0 g/t Cut-off 601,965 3.35 64,785
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3.0 g/t Cut-off 292,247 4.30 40,360
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Dioulafoundou Open Pit Inferred Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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1.0 g/t Cut-off 349,296 3.76 42,177
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2.0 g/t Cut-off 219,559 5.20 36,690
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3.0 g/t Cut-off 181,703 5.75 33,563
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Dioulafoundou Underground Inferred Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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2.0 g/t Cut-off 102,010 4.41 14,461
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3.0 g/t Cut-off 54,401 6.11 10,680
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Tabakoto Pit Area, Dar Salam and Dioulafoundou Open Pit &
Underground M&I Resource Estimate (1)(2)(3)(4)(5)
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Assay Cut-off Tonnes g/t Au Ozs Au
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0.5 g/t Cut-off 12,628,412 2.37 963,391
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1.0 g/t Cut-off 9,678,520 2.86 891,254
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2.0 g/t Cut-off 5,192,091 4.11 685,931
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3.0 g/t Cut-off 2,911,639 5.42 507,207
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(1) The Inferred Resources are in addition to the Measured and Indicated
Resources.
(2) The mineral resources have been classified in accordance with
requirements of NI 43-101 and the CIM standards. Resource estimates
based on a gold price of USD$825 per ounce
(3) Milko Rivera, P.Eng and Farshid Gazanfari independent consultants,
Qualified Persons under NI 43-101, prepared the above mineral resource
estimates and have reviewed the technical disclosure herein relating to
the resource estimates. Eugene Puritch, P. Eng. of P&E Mining
Consultants Inc. carried out an independent review of the resource model
and provided preliminary open pit and UG mining costs for the
development of resource cut-off grades.
(4) Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
(5) Estimates as of May 17, 2009
Cautionary Notes
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, 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 statements 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Mali projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent consultants and management of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors involved in building a mine and other factors that will be described in the technical report summarizing the scoping study that will be filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scoping study.
Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward-looking statements are 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 statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
To view the Tabakoto Pit Area Mineralized Zone map, please visit the following link: http://media3.marketwire.com/docs/tabakotopitarea.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 RELEASE
Contacts: Avion Resources Corp. Rene Bharti Vice President Business Development (416) 861-5913 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
SOURCE: Avion Resources Corp.
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