Avion Temporarily Suspends Its Mill Expansion Plans at the Tabakoto Mine, Mali
09 Mai 2012 - 12:00AM
Marketwired
Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the
"Company") announces that its mill expansion project has
reluctantly been temporarily suspended due to business disruptions
associated with the military coup in Mali. Mining and milling
operations continue at site with Avion's existing mill. Suspension
of the expansion plans is a direct result of some of Avion's
contractors demobilizing back to their home bases due to foreign
government travel warnings for Mali as well as resultant slowdown
of construction supplies moving through customs at Mali's borders.
An interim government has been appointed in Mali and is working to
re-establish the government ministries. Avion is working with the
interim government and the new ministries to return operations and
efficiencies to a normal state.
The foreign government travel warnings issued are mostly
applicable to the northern half of the country. Avion has taken and
is taking prudent precautions to ensure the safety and welfare of
its employees at site which is located approximately 350 kilometres
from the Capital of Bamako and over 1,000 kilometres from the
insurgency in the northern part of Mali.
Andrew Bradfield, Chief Operating Officer at Avion, stated "It
is disappointing to have to temporarily halt the mill expansion so
close to completion. However, without some of the contactors and
upgrade supplies on site we had no choice but to put the project on
standby. The suspension of the expansion plans will affect Avion's
planned production growth. However, regular supplies and fuel
shipments continue to arrive at site, a large amount of consumable
inventory exists at the mine, our 2,000 tonne per day mill
continues to run well and we are still producing gold. Once the
political situation has been resolved, we expect to be able to
provide a revised timetable for the completion of the mill
upgrade."
The 4,000 tonne per day mill expansion project is approximately
80% complete from a cost spend perspective.
"Management is hopeful that the political situation in Mali will
be resolved this year so that Avion can continue with expansion at
Tabakoto" stated John Begeman, President and CEO of Avion. "It is
unfortunate that Avion has been forced to suspend the mill
expansion as this will result in less royalty revenues for the
Republic of Mali and lower anticipated production and revenues for
the Company."
Avion had previously provided production guidance of between
140,000 and 150,000 ounces of gold. It is difficult for the Company
to provide updated guidance until it is known when the government
travel warnings will be lifted and the contractors can return to
Tabakoto. If the expansion remains on hold for the remainder of
2012, production will be in the order of 90,000 to 100,000 ounces
of gold for the year.
Throughout the rest of 2012, Avion will continue to mine from
and develop the Tabakoto underground deposit, mine the
Dioulafoundou open pit deposit, develop and mine the Djambaye II
open pit deposit and develop the Segala underground deposit.
Andrew Bradfield, P.Eng., the Chief Operating Officer of the
Company, and a qualified person under National Instrument 43-101,
has reviewed and approved 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 that holds 80% of the Tabakoto and Segala gold projects in
Mali. Gold production commenced at these projects in 2009 with
approximately 51,290 ounces produced. 2010 production was 87,630
ounces of gold. 2011 production was 91,200 ounces of gold. The
current mineral reserve estimate (as of January 1, 2011) of 7.24
million tonnes grading 3.92 g/t Au totaling 913,100 ounces of gold
(proven and probable), for the Tabakoto project property,
demonstrates several sources of excellent grade open pit and good
grade underground mineral resources thus providing significant
flexibility for Avion's future mining plans. The Company has
developed an underground mine at the Tabakoto deposit, and is
developing another underground mine at the Segala deposit. The
Tabakoto project property also contains several producing open pit
mines. Production sustainability will continue to be supported by
exploration programs over an approximately 600 km2 exploration
package that both surrounds and is near to the Company's existing
mine infrastructure, and contains mineral resources on the Kofi
property. Additionally, mineral resources have grown considerably
at Avion's 1,600 km2 Hounde exploration property in Burkina Faso.
Avion has a highly skilled management team, with a focus on growth
and consolidation within West Africa.
Cautionary Notes
Certain information set forth in this press release contains
"forward-looking statements", and "forward-looking information
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements which include the impact of the
political and social conditions in Mali on the Company, the impact
of the suspension of the mill expansion on the Company and
production, management's assessment of Avion's targeted production,
future plans, operations and mineral resource estimates which are
based on Avion's current internal expectations, estimates,
projections, assumptions and beliefs, and which may prove to be
incorrect. Some of the forward-looking statements may be identified
by words such as "expects" "anticipates", "believes", "projects",
"plans", and similar expressions. These statements are not
guarantees of future performance and undue reliance should not be
placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause Avion's
actual performance and financial results in future periods to
differ materially from any projections of future performance or
results expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to,
those risks described in the annual information form of the
Company. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Avion undertakes no obligation to update forward-looking statements
if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader
is cautioned not to place undue reliance on forward-looking
statements.
Contacts: Avion Gold Corporation Michael McAllister Manager,
Investor Relations (416) 309-2134info@aviongoldcorp.com