Avion Gold Corp AVGCF

Canaccord update. (they really like it.)

[jmlguy]

Avion Gold* (AVR : TSX-V :
.67), Net Change: -0.02, % Change: -2.90%, Volume: 524,303

Whose radar are you on? Avion Gold announced a deal with AXMIN (AXM), whereby Avion is purchasing AXMIN’s

interest in the Kofi Group concessions in Mali for $3.6 million in cash and shares. This raises its Tabakoto Area Resource by

25% for less than $7/ounce. Key highlights include: 1) the 472-square-km property located 5 km northwest of Avion’s Tabakoto

project; wrapping around to the north side of Randgold’s (GOLD) 9 Moz (M+I) Loulo mine. The property hosts nine known

zones with 667,000 oz global combined. Avion would have an 81.25% interest in these ounces. Exploration potential is

considered excellent. Additional drilling will commence in 2010 following core re-logging and compilation of existing data; 2)

while the Kofi property may not be on Randgold’s radar at the moment, Avion’s highly skilled explorationists have an excellent

opportunity to build on existing resources and bring both Kofi and Avion onto Randgold’s radar; and 3) the company is

scheduled to release 2009 results on April 6. Canaccord Adams Senior Mining Analyst Eric Zaunscherb is looking for net

income of US
.03/share in Q4/09 and US
.05/share for the full year. Avion is one of Zaunscherb’s top picks, as it remains

one of the least expensive of the gold producers under his coverage.