Avion Gold samples 2 m at 108.68 g/t Au at Tabakoto

2009-08-17 12:50 ET - News Release

Mr. Rene Bharti reports

AVION GOLD CHANNEL SAMPLES: 108.68 G/T AU OVER TWO METRES AND 25.15 G/T AU OVER 2.3 METRES AT THE TABAKOTO MINE, MALI

Avion Gold Corp. has provided the results of channel samples in the Tabakoto pit and for the third and fourth of five holes drilled to test the Segala main zone at depth in support of the planning for underground development of the Segala deposit.

Tabakoto channel samples

The two channel samples were collected from a more than 300-metre-long, northeast-trending mineralized fracture in the southwest corner of the Tabakoto pit from the centre of the pit-base access road and from the pit wall. The two channel samples are 13 metres apart, horizontally. The pit wall sample, which returned 108.68 grams per tonne gold (18.24 g/t Au capped at 37.5 g/t Au) over two metres true thickness, comprised five samples ranging in grade from 7.32 g/t Au over one metre to 377.5 g/t Au over 0.25 metre. The channel sample from the pit access road returned 25.15 g/t Au (23.47 g/t Au capped) over 2.3 metres (true thickness). These results indicate an area of surface accessible, exceptional grades that will be further delineated through a focused drill program and modelling.

Segala drill holes

Hole S-09-03A intersected 2.32 g/t Au (2.24 g/t Au capped) over 32.15 metres core length (approximately 20 metres true width) approximately 310 metres from surface. This intercept includes a higher grade core that returned 8.19 g/t Au (7.70 g/t Au capped) over 5.25 m core length (3.3 metres true width). Hole S-09-04, located 62 metres to the east, returned 3.89 g/t Au (3.07 capped) over 49.3 metres core length (approximately 27 metres true width) approximately 338 metres below surface; this intercept includes five g/t Au (4.09 g/t capped) over 10.2 metres core length (5.6 metres true width), 11.30 g/t Au (7.60 g/t Au capped) over 7.9 metres core length (4.4 metres true width) and 4.65 g/t Au over 5.7 metres core length (3.2 metres true width). Both holes tested an area of the Segala main deposit that, from a resource study announced on Dec. 12, 2008, contains an inferred mineral resource. Both of these holes extend the higher grade mineralization to depth where the ore resource model had indicated, similar to slightly higher grades. These two holes were drilled at approximately the same vertical elevation as previous released holes S-09-01 and S-09-02, which returned 3.62 g/t Au over 26.9 metres core length and 5.37 g/t Au over 20.89 core length, respectively (see Avion news release in Stockwatch dated July 9, 2009). Assay results for drill hole S-09-05, which tested the Segala main zone below all previous drilling at more than 500 metres from the surface, are still pending.

Avion's exploration program is progressing with two core drills and one RC drill. To the end of June, approximately 11,000 metres of drilling in 55 holes have been completed. A minimum of 15,000 metres of core drilling is planned. The drill program is designed to both increase the confidence in existing resources and to discover new mineralized zones. The drill program to date has tested targets at the Segala main (10 holes), Dar Salam (14 holes), Moralia (nine holes), Northeast Orpailleur (two holes), Fougala (nine holes), Diolafoundou (three holes) and to a lesser extent Tabakoto zones (six holes). The next series of holes will further test the Segala and Tabakoto areas. Results are pending for the non-Segala main holes, which were prioritized.

"The Tabakoto and Segala properties continue to deliver. The high-grade results from the Tabakoto pit may provide additional mill feed for Avion in 2009, and good grades over mineable widths continue to be intersected at Segala main at depth. Such results indicate that Avion should, with confidence, be able to extend the project mine life beyond the initial four years announced in December, 2008," commented John Begeman, president and chief executive of Avion.

Studies to support a capacity upgrade to 200,000 ounces per year are in progress with grinding studies, preliminary mill expansion and open pit versus underground mining studies under way. This work is being completed by both consultants and company staff and is expected to be completed before year-end. Avion's current measured and indicated mineral resource is 1.21 million ounces of gold grading 3.48 g/t Au. In addition, Avion's inferred mineral resource is 1.14 million ounces of gold grading 3.50 g/t Au (see Stockwatch news release dated May 19, 2009).

Don Dudek, PGeo, the senior vice-president of exploration for the company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this news release. Avion has not completed a feasibility study on the Mali gold projects.

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, Mr. Dudek. These samples were then delivered to a representative of SGS Mineral Service based in Kayes, Mali. The assay samples are then crushed to two milimetres with riffle split if required to 1.5 kilograms, the entire sample milled in a LM2 mill to a nominal 95 per cent passing 75 micron. All the preparation equipment is flushed with barren material prior to the commencement of the job. Gold values were determined by fire assay and AAS with a 50-gram nominal sample weight. Avion's channel samples were analyzed at Avion's Tabakoto mine laboratory. 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 27.5 g/t Au, which is the capping level deemed appropriate for the Segala main deposit and 37.5 g/t Au for the Tabakoto deposit (see Stockwatch news release of Dec. 12, 2008).