Q1 Production News.Avion Gold Produces 15,700 Ounces in the First Quarter of 2010
TORONTO, ONTARIO, Apr 22, 2010 (MARKETWIRE via COMTEX News Network) --
Avion Gold Corporation (TSX VENTURE: AVR)(OTCQX: AVGCF) ("Avion" or the "Company") announces first quarter 2010 production of 15,716 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa.
During the first quarter of 2010 the Company milled 156,140 tonnes of ore at an average grade of 3.26 g/t Au, with a 96.5% mill recovery, compared to first quarter of 2009 production of 76,000 tonnes of ore milled at an average grade of 2.74 g/t Au with a 92.8% mill recovery.
Commenting on the production results, Mr. John Begeman, Avion's President and CEO, stated: "A series of events impaired first quarter production, and we are confident that these have subsequently been resolved. Looking forward, surface infrastructure construction in preparation for underground mining is well advanced."
Stan Bharti, Chairman of Avion, stated that, "After the start up of the Segala Mine in 2009, we continue to expand Segala and accelerate plans for underground development at Tabakoto in 2010. We are also expanding our exploration program in the region, have completed an important property acquisition and entered into agreements regarding two other promising projects. We are confident that Avion's assets provide the basis for Avion to be a significant gold producer in Western Africa."
Production was lower than anticipated because of mining lower grade ore due to a minor wall slump in an area that was planned to access the high grade portion of the Segala pit, the cone crushers requiring repairs and the ball mill liners being replaced. The Company is confident that these issues have been remedied.
Avion continues to accelerate its plans for underground development of the Tabakoto Mine this year. The difficulty in sourcing equipment and mine contractors for underground mining in Mali has resulted in Avion looking abroad to bring in a contractor. The Company expects that underground production will likely be delayed to the fourth quarter of 2010. As a result of this delay, Avion now expects to produce between 75,000 and 85,000 ounces of gold in 2010.
Over the longer term, Avion is confident that it can achieve its stated goal of being a 200,000 ounce producer by 2012. The Company believes that its recent exploration results and property acquisitions provide substantial evidence of progress towards this goal.
Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. The longer term goal of the Company is to produce 200,000 ounces in 2012. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Cautionary Notes
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the effect of the results on the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms. 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; acquisition risks; and other risks of the mining industry. 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.
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Contacts: Avion Gold Corporation John Begeman President and Chief Executive Officer (416) 861-5884 jbegeman@aviongoldcorp.com
SOURCE: Avion Gold Corporation
mailto:jbegeman@aviongoldcorp.com
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