More on Great Quest dealAvion Gold Corporation
TSX VENTURE:
AVR
Nov 02, 2009 08:30 ET
Avion Acquires Option to Earn 75% Interest in an Inferred Gold Resource of 324,000 Ounces
TORONTO, ONTARIO--(Marketwire - Nov.2, 2009) - Avion Gold Corporation (TSX VENTURE:AVR) ("Avion" or the"Corporation") and Great Quest Metals Ltd. (TSX VENTURE:QG) ('GreatQuest') are pleased to announce that they have executed a definitiveagreement in relation to their previously announced letter of intent(see Avion News Release dated April 21, 2009) to acquire 75% of GreatQuest's interest in three mineral concessions located adjacent to thesouth and west sides of the Tabakoto property (see figure) (the "OptionAgreement"). Great Quest previously spent approximately US$3.0 millionin expenditures to explore the properties.
The Great Quest properties comprise the Kenieba (Sansanto), KeniebaEst and Comifa concessions totaling approximately 32 km2, whichincreases Avion's local property package by approximately 30%. TheKenieba concession hosts a 43-101 compliant inferred resource in theDjambaye 2 gold zone of 324,000 ounces (Carl Verley (P. Geo.), January28, 2008 Great Quest news release). This equates to 2,574,000 tonnesgrading 3.92 grams per tonne gold.
Commenting on the proposed acquisition, Avion's President and CEO,Mr. John Begeman stated, "As stated before this disciplined acquisitionrepresents an exciting opportunity for Avion to acquire nearbyprospective gold projects that could provide additional feed for theTabakoto mill and support Avion's stated growth and West Africanconsolidation goals."
To acquire 75% of Great Quest's interest in the three miningconcessions Avion is required to make cash payments of CDN$ 2,360,000and work commitments of CDN$ 1,890,000 both over five years. On signingof the Option Agreement Avion made a cash payment of CDN$ 350,000 andis required to complete at least CDN$ 150,000 of explorationexpenditures in year 1. Great Quest's interest in the properties variesfrom 95% to 100% subject to a carried interest to the Government ofMali ranging between 10% and 20%.
"Avion plans to build upon Great Quest's work that has defined aseries of northerly trending intrusion-hosted gold zones and goldmineralized, sediment- and intrusion-hosted cross-structures that aresimilar in character to those on the Avion concessions. A program ofsoil sampling and magnetic surveys will be carried out in early 2010 toprovide a large scale property view prior to the selection of new andfollow-up drill targets." comments Don Dudek, Vice PresidentExploration for Avion.
Don Dudek, P.Geo., the Senior Vice President, Exploration of theCompany and a qualified person under National Instrument 43-101, hasreviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold company focused in West Africa. TheCompany holds 80% of the Tabakoto and Segala gold projects in Mali.Gold production at these projects has commenced, with approximately50,000 ounces of production forecast for 2009 rising to 101,400 ouncesin 2012. Avion has a highly skilled management team, with a focus ongrowth and consolidation within West Africa.