TORONTO, ONTARIO--(Marketwire - March 7, 2011) -Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the"Company") is pleased to provide new information regarding a recentairborne VTEM survey carried out over Avion's Kofi Property in early2011. The preliminary survey data indicates that the Loulo structuralcorridor extends onto the Kofi property (see Figure 1). The Loulostructural corridor is an approximate five kilometre wide zone thatextends from Randgold Resources Limited's ("Randgold") Gounkoto Deposit(approximate Proven, Probable, Measured and Indicated mineral resourceof 5.8 million ounces) through to their Loulo mine camp (approximateProven, Probable, Measured and Indicated mineral resource of 11.4million ounces) and northward into the Kofi property. Four of the goldzones on the Kofi property including the C zone (Indicated mineralresources of 870,000 tonnes grading 3.50 g/t Au for 99,000 ounces goldand Inferred mineral resource of 913,000 tonnes grading 3.7 g/t Au for109,000 ozs gold) and a new zone intercept of 3.58 g/t Au over 83.7 metres lies within the interpreted northern continuation of the Loulo structural corridor.
The airborne conductivity data demonstrates a three to fivekilometre wide conductive corridor with an eastern boundary that extendsfor approximately eighteen kilometres to the north and a westernboundary that extends at least six kilometres to the north. The bulk ofthe mineralization discovered on the adjacent Loulo property lies on theedges of the structural corridor with better discoveries on the easternside of the corridor. Avion will focus its efforts within thisstructural corridor and towards Tabakoto-type targets on the easternside of the property.
Don Dudek, Avion's Senior Vice President, Exploration,stated: "The gold mineralization that Avion has encountered on thenorthern part of the Kofi property displays similar geology, alterationand mineralized breccias as those being exploited on the adjacentRangold Loulo and Gounkoto properties. We are fortunate to have accessto such a high quality asset that can either provide feed to Avion'snearby Tabakoto mill or, as we hope, develop into a stand-alone mineproject."
The Kofi property contains nine mineralized zones withidentified mineral resources. All of the estimated mineral resources liein the Kofi Nord concession of which Avion's holds an 81.25% interestwith 12.5% held by African Mining Selection Corporation and 6.25% heldby Société Financière d'Exploration d'Or au Mali (See Avion NewsReleases dated March 31, 2010 and December 29, 2010). These interestsare prior to a carried interest of up to 20% due to the Government ofMali upon commencement of production. Therefore, Indicated mineralresources of 238,000 ounces and Inferred mineral resources of 299,000ounces are credited to Avion. Total estimated Indicated Mineral Resources are approximately 3.24 million tonnes grading 2.55 g/t Au totaling 293,000 ounces Au (Roberts, 2008, NI43-101 compliant report). In addition, the Kofi property hosts total Inferred Mineral Resources of approximately 5.26 million tonnes grading 2.18 g/t Au totaling 368,000 ounces gold(See Dec. 11, 2007 AXMIN news release, Roberts, 2008 NI43-101 compliantreport) . Most of the zones are open along strike and to depth withzones only tested from 60 to 200 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 the Tabakoto mill.
Avion's initial 2011 exploration budget over the KofiProperty is planned to comprise approximately 15,000 metres of drillingand is scheduled to start in April.
Don Dudek, P.Geo., the Senior Vice President, Exploration ofthe Company and a qualified person under National Instrument 43-101, hasreviewed the scientific and technical information in this pressrelease.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in WestAfrica that holds 80% of the Tabakoto and Ségala gold projects in Mali.Gold production commenced at these projects in 2009 with just over51,000 ounces produced. 2010 production was 87,630 ounces of gold.Production sustainability will continue to be supported and enhanced byan aggressive 2011 drill program over an approximately 500 km2exploration package that both surrounds and is near to the Company'sexisting mine infrastructure. The current mineral resources estimate forthe Tabakoto project demonstrates several sources of excellent gradeopen pit and good grade underground mineral resources thus providingsignificant flexibility for Avion's future mining plans. Additionally,the 1,670 km2 Houndé exploration property in Burkina Faso hasreturned promising results. These properties will be subject to apreliminary US$ 10 million dollar, approximate 60,000 metre,drill-focused, exploration program in 2011. Avion continues to progresstowards its medium term goal of 200,000 ounces of gold per year and alonger term goal of organic growth through development of itsexploration properties. The Company is developing an underground mine atthe Tabakoto deposit, and is preparing to mine underground at theSégala deposit. Avion has a highly skilled management team, with a focuson growth and consolidation within West Africa.
Cautionary Notes
The ability of Avion to increase production to 200,000 ouncesof gold per year has not been the subject of a feasibility study andthere is no certainty that the proposed expansion will be economicallyviable.
This press release contains "forward-looking information"within the meaning of applicable Canadian securities legislation.Forward-looking information includes, without limitation, statementsregarding the impact of the results on the Company; statements withrespect to the development potential and timetable of the Tabakoto, Kofiand Houndé projects; the future price of gold; the estimation ofmineral resources; conclusions of economic evaluation (including scopingstudies); the realization of mineral resource estimates; the timing andamount of estimated future production, development and exploration;costs of future activities; capital and operating expenditures; successof exploration activities; mining or processing issues; currencyexchange rates; government regulation of mining operations; andenvironmental risks. Generally, forward-looking information can beidentified 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 notanticipate", or "believes", or variations of such words and phrases orstate that certain actions, events or results "may", "could", "would","might" or "will be taken", "occur" or "be achieved". Forward-lookinginformation is subject to known and unknown risks, uncertainties andother factors that may cause the actual results, level of activity,performance or achievements of the Company to be materially differentfrom those expressed or implied by such forward-looking information,including but not limited to those risks described in the annualinformation form of the Company which is available under the profile ofthe 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.
To view Figure 1, please visit the following link: https://media3.marketwire.com/docs/Kofi_Project_Deposit_Map_20110303.jpg