Avion Gold Corporation (TSX VENTURE: AVR)(OTCQX: AVGCF)(PINK
SHEETS: AVGCF) ("Avion") is pleased to announce new results for the
Vindaloo zone on the Hounde Property in Burkina Faso. Avion has
entered into a definitive agreement to acquire the property from
Avocet Mining PLC (see Avion news release, July 5, 2010).
This very large, 1,670 km2 property, lies within an emerging
gold camp and is 60 kilometres southwest of SEMAFO's Mana Mine
(which hosts estimated Reserves and Resources totaling 2.35 million
ounces of gold and Inferred Resources totaling 0.91 million ounces
of gold). The property is centered approximately 250 km southwest
of Ouagadougou, the capital of Burkina Faso (see Figure 1).
Avion has intersected gold mineralization in each of nine holes
that were designed to extend the Vindaloo zone both along strike
and to double the depth of the previously defined zone (see Figure
2). These holes tested a 500 metre strike length of the zone, which
is still open along strike and to depth. A summary of significant
new intercepts is as follows:
-- 7.96 g/t Au over 7.5 metres
-- 9.77 g/t Au over 6.9 metres
-- 2.08 g/t Au over 22.9 metres
-- 4.01 g/t Au over 9.7 metres
-- 1.79 g/t Au over 68.4 metres
-- 1.84 g/t Au over 28.5 metres
-- 2.92 g/t Au over 39.3 metres
-- 3.06 g/t Au over 10.4 metres
-- 2.72 g/t Au over 18.7 metres
The mineralization trend, associated with the Vindaloo zones,
can be traced through drilling, soil survey data and magnetic
surveys for over 2,500 metres along strike.
The Vindaloo zone is hosted near the contact between an
intensely sericite- and silica-altered intrusion and
similarly-altered, intensely sheared and altered intermediate
volcanoclastics. The mineralization is often quartz
stockwork-style, intrusion-hosted and weakly to moderately pyritic.
The entire mineralized package strikes north-northeast and dips
steeply to the west. Higher gold grade zones have been intersected
where the intrusion narrows.
There is also evidence of cross-cutting zones of mineralization
near the Vindaloo zone where previous drilling returned intercepts
of 2.39 g/t Au over 38.0 metres and 1.20 g/t Au over 34.0
metres.
John Begeman, Avion's President and CEO, stated, "The Hounde
Property zones offer excellent targets for resource growth. This
recent data confirms our belief that the Hounde property is highly
prospective. We expect to have additional results and an initial
mineral resource estimate by year end."
Additional parallel zones of mineralization are evident both to
the east and west of the Vindaloo zone. It is likely these zones
will be further evaluated in the future. A summary of these
additional intercepts are as follows:
-- Vin West zone (VWZ) - approximately 100 metres to the west
-- 6.96 g/t Au over 3.0 metres
-- 2.96 g/t Au over 8.0 metres
-- 1.60 g/t Au over 13.0 metres
-- 3.86 g/t Au over 14.0 metres
-- 2.18 g/t Au over 8.0 metres
-- Vin East Zone (VEZ) - approximately 700 metres to the East
-- 1.34 g/t Au over 7.0 metres
-- 8.7 g/t Au over 1.0 metres
-- 1.21 g/t Au over 6.0 metres
-- 1.82 g/t Au over 4.0 metres
-- 27.2 g/t Au over 2.0 metres
-- 2.19 g/t Au over 5.0 metres
-- 400 metre long untested artisanal trend at south end
The VEZ can be traced for approximately 3,500 metres along
strike based on drill data and artisanal workings.
Avion has completed 21 core holes totaling approximately 3,981
metres with nine of the holes completed on the northern concession
block, and twelve holes completed in the southern concession block.
Drilling will resume, in the northern block of concessions after
completion of the rainy season in late September. Numerous high
priority targets remain to be tested with approximately 7,500
metres of core drilling budgeted.
Field work, which commenced in late May, has focused on the
documentation of extensive artisanal works, the collection of over
5,000 soil samples and compilation of available data.
Don Dudek, Avion's Senior Vice President Exploration, states
"The Vindaloo zone area appears to represent a robust
mineralization system where the combination of alteration and
deformation often obliterated the original rock textures. This
mineralization signature is repeated again through the middle of
the concession block where current artisanal activities and
drilling have documented extensive gold mineralization. As a
result, we consider the likelihood for the discovery of additional
gold mineralization is deemed high."
Avion's procedures for handling core have been presented in
previous news releases (See for e.g. Avion News Release dated May
13, 2010).
Don Dudek, P.Geo., the Senior Vice President, Exploration of the
Company and a qualified person under National Instrument 43-101,
has reviewed the scientific and technical information in this press
release.
Mining in Burkina Faso
The mining industry in Burkina Faso is growing at a rapid rate
due to a combination of a stable elected democratic government,
excellent geology and a competitive fiscal regime. Currently six
gold mines are in production or development in Burkina Faso
(Essakane - IAMGOLD Corporation, Mana - SEMAFO, Inata - Avocet
Mining PLC, Youga - Etruscan Resources Inc., Taparko - High River
Gold Mines Ltd., Kalsaka - Cluff Gold PLC). In 2011, it is expected
that Burkina Faso will become the fourth largest gold producing
country in Africa. The country has legislated low taxes, with an
income tax rate of 20% and a corporate profits tax of 20% for
mining companies. There is a three-year tax holiday during
construction that includes relief from VAT and custom duties during
construction and reduced customs duties of 7.5% during mining
operations. The government is entitled to a 10% free carried
interest and a reasonable 3% Royalty on gold production.
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 just
over 51,000 ounces produced; 2010 production is estimated at 75,000
to 85,000 ounces. Production sustainability is supported and
enhanced by an aggressive 2010 drill program over an approximately
600 km2 exploration package that both surrounds and is near to our
existing mine infrastructure. Additionally, a new, 1,670 km2
exploration property in Burkina Faso is expected to return good
results from an ongoing drill program. These properties are the
subject of a approx.US$ 12 million dollar, 60,000 metre plus,
drill-focused exploration program in 2010, which is expected, based
on results to date, to add new resources and future opportunities
for Avion. Avion continues to progress towards its longer term goal
of 200,000 ounces of gold per year and is evaluating an underground
mine plan for the Segala and Tabakoto deposits. 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, without limitation,
statements regarding the impact of the drilling results on the
Company; statements with respect to the development potential and
timetable of the Hounde project; the future price of gold; the
estimation of mineral resources; conclusions of economic evaluation
(including scoping studies); the realization of mineral resource
estimates; the timing and amount of estimated future production,
development and exploration; costs of future activities; capital
and operating expenditures; success of exploration activities;
mining or processing issues; currency exchange rates; government
regulation of mining operations; and environmental risks.
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 those
risks described in the annual information form of the Company which
is available under the profile of the Company on SEDAR at
www.sedar.com. 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.
2010 Vindaloo Zone Significant Drill Intercepts
----------------------------------------------------------------------------
From To Width Au True Width
Hole # (m) (m) (m) (g/t) (m) Zone
----------------------------------------------------------------------------
H-10-01 47.4 54.9 7.5 7.78 3.9 Vindaloo
----------------------------------------------------------------------------
H-10-02 107.1 114.0 6.9 9.77 4.2 Vin West
----------------------------------------------------------------------------
H-10-02 193.5 216.4 22.9 2.08 11.0 Vindaloo
----------------------------------------------------------------------------
H-10-02 233.0 234.9 1.9 3.50 1.0
----------------------------------------------------------------------------
H-10-03 33.3 43.0 9.7 4.01 4.9 Vin West
----------------------------------------------------------------------------
H-10-03 164.2 232.6 68.4 1.79 50 Vindaloo
----------------------------------------------------------------------------
incl. 164.2 189.1 24.9 2.25 18.2 Vindaloo
----------------------------------------------------------------------------
incl. 195.2 199.8 4.6 3.09 3.4 Vindaloo
----------------------------------------------------------------------------
H-10-03 204.1 232.6 28.5 1.84 20.8 Vindaloo
----------------------------------------------------------------------------
H-10-04 75.6 79.0 3.4 0.97 2.3 Vin West
----------------------------------------------------------------------------
H-10-04 144.7 184.0 39.3 2.92 27.1 Vindaloo
----------------------------------------------------------------------------
H-10-04 194.6 200.9 6.3 1.16 4.3
----------------------------------------------------------------------------
H-10-04 208.9 209.9 1.0 1.90 0.7
----------------------------------------------------------------------------
H-10-04 217.1 218.6 1.5 3.44 1.0
----------------------------------------------------------------------------
H-10-05 55.4 56.5 1.1 1.34 0.8
----------------------------------------------------------------------------
H-10-05 83.4 93.8 10.4 3.06 7.4 Vin West
----------------------------------------------------------------------------
H-10-05 158.1 161.0 2.9 1.08 2.1
----------------------------------------------------------------------------
H-10-05 168.1 170.2 2.1 4.66 1.5
----------------------------------------------------------------------------
H-10-05 176.5 195.2 18.7 2.72 13.3 Vindaloo
----------------------------------------------------------------------------
H-10-05 210.4 213.5 3.1 1.62 2.2
----------------------------------------------------------------------------
H-10-06 170.8 171.8 1.0 3.01 0.6
----------------------------------------------------------------------------
H-10-06 185.8 187.8 2.0 1.93 1.1
----------------------------------------------------------------------------
H-10-06 195.6 206.8 11.2 2.15 6.4 Vindaloo
----------------------------------------------------------------------------
H-10-7 134.8 138.9 4.1 1.35 2.5
----------------------------------------------------------------------------
H-10-7 162.3 163.3 1.0 2.32 0.6
----------------------------------------------------------------------------
H-10-7 167.6 172.6 5.0 1.68 3.0
----------------------------------------------------------------------------
H-10-7 177.6 197.7 20.1 1.59 12.2 Vindaloo
----------------------------------------------------------------------------
H-10-7 207.8 212.0 4.2 1.25 2.5
----------------------------------------------------------------------------
H-10-8 72.4 77.2 4.8 4.59 3.5 Vindaloo
----------------------------------------------------------------------------
H-10-9 131.6 132.6 1.0 18.30
----------------------------------------------------------------------------
H-10-9 140.4 195.1 54.7 0.95 23.0 Vindaloo
----------------------------------------------------------------------------
incl. 140.4 148.4 8.0 2.58 3.4 Vindaloo
----------------------------------------------------------------------------
incl. 159.0 165.3 6.3 1.81 2.6 Vindaloo
----------------------------------------------------------------------------
incl. 170.5 173.7 3.2 1.08 1.3 Vindaloo
----------------------------------------------------------------------------
incl. 177.9 179.0 1.1 2.32 0.5 Vindaloo
----------------------------------------------------------------------------
incl. 184.3 186.5 2.2 1.67 0.9 Vindaloo
----------------------------------------------------------------------------
incl. 192.9 195.1 2.2 1.82 0.9 Vindaloo
----------------------------------------------------------------------------
H-10-9 202.5 203.6 1.1 3.48 0.5
----------------------------------------------------------------------------
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/avr0803fig1.pdf.
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/avr0803fig2.pdf.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Avion Gold Corporation Don Dudek Senior Vice President
Exploration (416) 861-2261 don@aviongoldcorp.com
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