Avion Gold Corporation (TSX: T.AVR, Stock Forum) Monday announced first-quarter 2012 production of approximately 26,256 ounces of gold from its Tabakoto/Ségala operations in Mali, West Africa. The company added that this has set a record for amount of gold produced in one quarter.
"Record production in March was achieved despite a military coup in the last week of the month. The strong results are a testament to the hard work and dedication of the management team at the mine site, and the higher than expected grades and lower dilution at the Tabakoto underground mine," said Avion's COO, Andrew Bradfield.
Avion said military leaders who seized control of Mali in a coup last month signed an accord, agreeing late Friday to return the country to constitutional rule. As such, the recent sanctions imposed by neighboring West African countries have been lifted and borders have been re-opened.
The company believes this will allow production and operations to continue as normal in Mali. However, Avion's mill expansion may be impacted as Malian custom and import offices will take some time to become fully operational again and allow materials required to complete the mill expansion to enter the country.
Shares of Avion surged 19% to $1.02 in early Monday trading.