Dec 29 2010Avion Acquires 290,000 Ozs Indicated and 380,000 Ozs Inferred Mineral Resources With Acquisition of Kofi Project From AXMIN
Avion Acquires 290,000 Ozs Indicated and 380,000 Ozs Inferred Mineral Resources With Acquisition of Kofi Project From AXMIN
TORONTO, ONTARIO, Dec. 29, 2010 (Marketwire) -- Avion GoldCorporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the 'Company') is pleasedto announce that it has closed the acquisition of the Kofi Nord, KofiDabora, Walia (ACGRI) and Dianissi Concessions, which form part of theKofi Property, from AXMIN Inc. ("AXMIN") (See news release dated March31, 2010).
In consideration for 100% of AXMIN's interest in theKofi Property, Avion shall pay an aggregate amount of CAD $500,000 andissue 4,500,000 shares of Avion to AXMIN, of which CAD $81,250 and731,250 shares have been issued. This represents 25% of theconsideration due to AXMIN in relation to Kofi Nord, Kofi Dobora, Walia(ACGRI) and Dianissi concessions. The remaining 75% of theconsideration, for these four concessions, will be paid in three equaltranches on March 24, 2011, June 24, 2011 and September 24, 2011. Theclosing of the remaining five concessions will take place once theconcessions are transferred to Avion's Malian subsidiary.
TheKofi property is large, 333 sq. km (after renewals), property packagesituated, at its nearest point, within approximately 5 kilometres to thenorthwest of Avion's Tabakoto Project. The Kofi property wraps aroundthe north side of Randgold's Loulo Mine concessions (Historic Measuredand Indicated resources of 62.69 million tonnes grading 4.55 g/t Au)(see Figure below). Four of the nine known mineralized zones on the Kofiproperty are located along two linear mineralization trends that aredefined by the alignment of deposits within the nearby RandgoldProperty. These two trends, which intersect on the Kofi property, areassociated with a magnetic feature that extends for fifteen kilometerson the Kofi Property. Avion believes that this magnetic featurerepresents a high quality exploration target.
The Kofi propertycontains nine mineralized zones with identified mineral resources. Allof the estimated mineral resources lie in the Kofi Nord concession ofwhich Avion's interest is 81.25% with 12.5% held by African MiningSelection Corporation and 6.25% held by Societe Financiere d'Explorationd'Or au Mali. These interests are prior to a 10% or 20% interest due tothe Mali government upon commencement of production. Therefore,indicated mineral resources of 238,000 ounces and inferred mineralresources of 299,000 ounces can now be credited to Avion based on theclosing of the acquisition. Total estimated Indicated Mineral Resourcesare approximately 3.24 million tonnes grading 2.55 g/t Au totaling293,000 ounces Au (Roberts, 2008 43-101 compliant report). In addition,the Kofi property hosts total Inferred Mineral Resources ofapproximately 5.26 million tonnes grading 2.18 g/t Au totaling 368,000ounces (Dec. 11, 2007 AXMIN news release, Roberts, 2008 43-101 compliantreport). Most of the zones are open along strike and to depth withzones only tested from 60 to 150 metres below surface. All of the zonesare within 15 to 38 kilometers of Tabakoto's mine infrastructure,potentially placing these zones, including the estimated mineralresources, within trucking distance to Tabakoto. A summary of the mainmineralized zones is as follows:
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Zone Tonnes(i) g/t Au Ounces Comment
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INDICATED RESOURCES
C Zone 873,000 3.5 99,000 Tested to less than -100 m
depth
B Zone 1,216,000 2.1 83,000 Tested to -140 m depth
Betea Central 1,154,000 2.3 111,000 Tested to -150 m depth
TOTAL 3,243,000 2.55 293,000
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INFERRED RESOURCES
C Zone 913,000 3.7 109,000 Tested to less than -100 m
depth
A zone 378,000 2.0 25,000 Tested to 150 m depth
A Zone Linear 675,000 1.7 36,000 Tested to -60 m depth
B Zone 160,000 1.7 9,000 Tested to -140 m depth
Blanaid 510,000 2.4 39,000 Tested to -85 m depth
Betea Central 981,000 1.6 52,000 Tested to -150 m depth
Betea North 473,000 1.6 25,000 Tested to -150 m depth
Betea South 1,169,000 2.0 74,000 Tested to -150 m depth
TOTAL 5,259,000 2.18 368,000
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(i) Mineral resources presented by AXMIN on December 11, 2007 and supported
by a 43-101 compliant technical report by Roberts, 2008.
JohnBegeman, Avion's President and CEO, stated previously, "The acquisitionof the Kofi property allows the Company to take advantage of a resourcethat can potentially be trucked to our existing milling and processingfacility. Randgold, through their exploration success, has demonstratedtremendous value in the area immediately to the south of the Kofiproperty. Avion believes that the potential exists for similar successon the Kofi property, which has proven stratigraphy that is rich inresources."
Subsequent to the Kofi Nord concession beingtransferred to Avion's Malian subsidiary and the closure of theacquisition of this concession, Avion re-furbished the exploration camp,compiled the historic exploration data and completed 22 drill holestotaling 4,458 metres over and near to the Kofi C zone. Avion continuesto compile the project data and develop targets in preparation for anaggressive drill program of approximately 22,000 metres in 2011. A VTEMsurvey is planned to cover the concessions in early January 2011. Theresults from the drill program will be presented in early 2011.
DonDudek, P.Geo., the Senior Vice President, Exploration of the Companyand a qualified person under National Instrument 43-101 has reviewed thescientific and technical information in this press release.
About Avion Gold Corporation
Avionis a Canadian-based gold mining company focused in West Africa thatholds 80% of the Tabakoto and Segala gold projects in Mali. Goldproduction commenced at these projects in 2009 with just over 51,000ounces produced. 2010 production is estimated at slightly above Avion'supper end guidance of 85,000 ounces of gold. Production sustainabilityis supported and enhanced by an aggressive 2010 drill program over anapproximately 600 km2 exploration package that both surrounds and isnear to the Company's existing mine infrastructure. Additionally, the1,670 km2 Hounde exploration property in Burkina Faso is returningpromising results from an ongoing exploration program. These propertiesare the subject of an approximate US$ 12 million dollar, approximate70,000 metre, drill-focused, exploration program in 2010, whichmanagement expects, based on results to date, to add new resources andfuture opportunities for Avion. Avion continues to progress towards itsmedium term goal of 200,000 ounces of gold per year and a longer termgoal of organic growth through development of its explorationproperties. The Company is developing an underground mine at theTabakoto deposit, and is preparing to mine underground at the Segaladeposit. Avion has a highly skilled management team, with a focus ongrowth and consolidation within West Africa.
About AXMIN
AXMINis a Canadian exploration and development company with a strong focuson Central and West Africa. AXMIN has projects in Central AfricanRepublic, Mali, Sierra Leone and Senegal. For more information regardingAXMIN visit its website at www.axmininc.com.
To view the figureassociated with this press release, please click on the following link:https://media3.marketwire.com/docs/a1228.jpg
Cautionary Notes
Theability of Avion to increase production to 200,000 ounces of gold peryear has not been the subject of a feasibility study and there is nocertainty that the proposed expansion will be economically viable.
Thispress release contains "forward-looking information" within the meaningof applicable Canadian securities legislation. Forward-lookinginformation includes, without limitation, statements regarding thelikelihood, impact and timing of the Company's acquisition of the KofiProperty; statements with respect to the development potential andtimetable of the Tabakoto, Kofi and Hounde projects; the future price ofgold; the estimation of mineral resources; conclusions of economicevaluation (including scoping studies); the realization of mineralresource estimates; the timing and amount of estimated futureproduction, development and exploration; costs of future activities;capital and operating expenditures; success of exploration activities;mining or processing issues; currency exchange rates; governmentregulation of mining operations; and environmental risks. Generally,forward-looking information can be identified by the use offorward-looking terminology such as "plans", "expects" or "does notexpect", "is expected", "budget", "scheduled", "estimates", "forecasts","intends", "anticipates" or "does not anticipate", or "believes", orvariations 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 toknown and unknown risks, uncertainties and other factors that may causethe actual results, level of activity, performance or achievements ofthe Company to be materially different from those expressed or impliedby such forward-looking information, including but not limited to thoserisks described in the annual information form of the Company which isavailable under the profile of the Company on SEDAR at www.sedar.com.Although the Company has attempted to identify important factors thatcould cause actual results to differ materially from those contained inforward-looking information, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can be noassurance that such information will prove to be accurate, as actualresults and future events could differ materially from those anticipatedin such statements. Accordingly, readers should not place unduereliance on forward-looking information. The Company does not undertaketo update any forward-looking information, except in accordance withapplicable securities laws.