Mr. Michael McAllister reports
AVION'S HOUNDE PROPERTY, BURKINA FASO, CONTINUES TO RETURN WIDE HIGH GRADE INTERCEPTS
Avion Gold Corp. has received results for an additional 33 holes drilled in 2012 in the Vindaloo zone area, Hounde project, Burkina Faso.
A summary of select intercepts are as follows:
- 5.02 grams per tonne (g/t) of gold (Au) over six metres
- 3.12 g/t Au over 62 metres
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3.48 g/t Au over 62 metres
- 7.74 g/t Au over 10 metres
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5.27 g/t Au over 16 metres
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1.87 g/t Au over 16 metres
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2.16 g/t Au over 19 metres
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2.85 g/t Au over 17 metres
- 2.61 g/t Au over 23.6 metres
- 1.49 g/t Au over 36 metres
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1.72 g/t Au over 25 metres
- 1.44 g/t Au over 21 metres
These holes predominantly tested the central part of the Vindaloo zone where Avion has defined indicated mineral resources of 13.41 million tonnes at 2.07 g/t Au, totalling 893,000 ounces of gold, and inferred mineral resources of 10.71 million tonnes at 2.07 g/t Au, totalling 712,000 ounces of gold. Holes HD-12-35 with 3.12 g/t Au over 62 metres and HD-12-36 with 3.48 g/t Au over 62 metres were drilled 200 metres apart and represent near-surface intercepts that further support the economic potential of the Vindaloo zone. In addition, intercepts of 1.26 g/t Au over 8.6 metres and 1.73 g/t Au over 11 metres in hole HA-12-08 and 1.72 g/t Au over 25 metres in hole HA-12-10 extend the Vindaloo West zone farther to depth. The Vindaloo West zone lies from 50 to 75 metres west of the Vindaloo zone and has returned intercepts to 2.18 g/t Au over 29.7 metres.
Don Dudek, Avion's senior vice-president of Exploration, stated: "Avion continues to be rewarded by good grade and width intercepts from the Vindaloo zone and from the adjacent Vindaloo West zone, which is still open along strike and to depth. With the results we have seen to date, it is easy to see the potential for production at the Vindaloo zone in the near future."
This news release presents the results from 33 core and reverse circulation holes, totalling approximately 5,432 metres of drilling. Assay from an additional 26 holes is still pending. A summary of all the current drill intercepts can be seen in the relevant table.
The gold-bearing zones that define the Vindaloo zone, now including the Madras and Madras northwest zones, have now been traced by drilling more or less continuously for approximately 5.6 kilometres. Avion has now completed at least one hole per 100 metres of strike along the defined mineralized trends. The current mineral resource is defined as the southern 2.65-kilometre part of the Vindaloo zone. Drilling and the discovery of a new artisanal zone, located to the south along strike of the mineral resource area, could potentially add another 3.7 kilometres of strike to the Vindaloo zone for a total of 9.3 kilometres.
The Vindaloo zones are hosted by an intensely sericite- and silica-altered mafic intrusion and similarly altered, intensely sheared and altered intermediate to mafic volcanoclastics. The mineralization is often quartz stockwork-style and is weakly to moderately pyritic. The entire mineralized package strikes north-northeast and dips steeply to the west to vertical. Drilling along the approximate 1.2-kilometre strike of the central core of the Vindaloo gold system has defined a coherent gold-mineralized, apparently shallow south-plunging, zone that has been traced at least to 300 metres depth. Along strike, both to the north and south of the core of the Vindaloo zone, the gold mineralization can vary from weak to quite strong over relatively short, generally vertical distances, leading to nodes of higher-grade mineralization connected by less-well gold-mineralized zones.
In 2012, 134 holes, totalling approximately 20,220 metres, have been drilled on the Hounde property, with just over 50 per cent of the drill program completed. This program was designed to define additional inferred-mineral-resources infill drill where necessary to support a preliminary economic study (PEA) and continue to extend the mineralized zones along strike. Approximately 60 per cent of the assays submitted for analyses have been received. Baseline work for the PEA is continuing with potential water dam sites located, initial land ownership surveys completed, potential tailings sites, a possible mill site and continuing community relations work.
Avion's 2012 $12.4-million (U.S.) exploration program is continuing with 241 holes, totalling approximately 36,540 metres completed at the Hounde, Tabakoto and Kofi properties. The Hounde PEA has been initiated with completion expected in the fourth quarter of 2012 to allow for the reception of sufficient drill data.
Avion's procedures for handling core have been presented in previous news releases (see, for example, Avion's news release dated Sept. 10, 2011). Assays presented in the relevant table have been capped at 30 g/t Au. SGS Laboratories in Ouagadougou and Kaya, Burkina Faso, was the independent laboratory used in the testing of the assay samples.
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 Corp., Mana -- Semafo, Inata -- Avocet Mining PLC, Youga -- Endeavor Mining Corp., Taparko -- High River Gold Mines Ltd., Kalsaka -- Cluff Gold PLC). In 2012, it is expected that Burkina Faso will become the fourth-largest gold-producing country in Africa. The country has legislated low taxes with a corporate tax rate of 20 per cent for mining companies. The government is entitled to a 10-per-cent free carried interest and a competitive 3-to-5-per-cent sliding royalty on gold production. Political and economic protests that occurred back in the spring of 2011 did not materially affect Avion's exploration program and no new issues of concern have since arisen.
Don Dudek, PGeo, the senior vice-president, exploration, 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.
We seek Safe Harbor.
SUMMARY CURRENT 2012 VINDALOO DRILL RESULTS
Estimated
true
Hole ID From To Width width (m) Au (g/t) Au (capped)
HD-12-34 35.0 41.0 6.0 3.4 5.02 5.02
HD-12-35 8.0 70.0 62.0 35.7 3.12 3.12
HD-12-36 16.0 78.0 62.0 43.9 3.48 3.48
HD-12-37 NSR
HD-12-38 50.0 55.0 5.0 2.8 2.21 2.21
HD-12-39 35.0 37.0 2.0 1.3 1.98 1.98
HD-12-40 64.0 74.0 10.0 6.4 7.74 7.74
HD-12-41 27.0 43.0 16.0 9.4 5.27 5.27
HD-12-42 40.0 41.0 1.0 0.6 2.31 2.31
HD-12-43 60.0 66.0 6.0 3.6 1.19 1.19
HD-12-44 7.0 18.0 11.0 6.1 6.46 6.46
HD-12-45 26.0 27.0 1.0 0.6 1.12 1.12
HD-12-45 34.0 50.0 16.0 10.1 1.87 1.87
HD-12-47 NSR
HD-12-65 104.0 106.0 2.0 1.4 0.54 0.54
HD-12-69 NSR
HD-12-70 58.0 61.0 3.0 2.3 1.07 1.07
HD-12-71 57.0 64.0 7.0 5.0 1.13 1.13
HD-12-71 75.0 76.0 1.0 0.7 2.92 2.92
HD-12-71 100.0 106.0 6.0 4.3 2.75 2.75
HD-12-71 132.0 135.0 3.0 2.1 5.88 5.88
HD-12-86 NSR
HD-12-87 99.0 100.0 1.0 0.7 3.50 3.50
HD-12-87 144.0 163.0 19.0 13.6 2.16 2.16
HD-12-87 171.0 172.0 1.0 0.7 1.07 1.07
HD-12-88 84.0 90.0 6.0 4.5 0.97 0.97
HD-12-88 96.0 97.0 1.0 0.7 5.07 5.07
HD-12-89 147.0 151.0 4.0 2.8 2.64 2.64
HD-12-90 137.0 138.0 1.0 0.7 1.30 1.30
HD-12-90 142.0 144.0 2.0 1.4 1.50 1.50
HD-12-91 145.0 147.0 2.0 1.0 1.98 1.98
HD-12-91 160.0 162.0 2.0 1.0 1.03 1.03
HD-12-92 36.0 37.0 1.0 0.5 3.59 3.59
HD-12-92 90.0 107.0 17.0 10.9 2.85 2.85
HD-12-92 117.0 141.0 24.0 14.9 1.11 1.11
HD-12-92 152.0 153.0 1.0 0.6 1.91 1.91
HD-12-93 46.0 47.0 1.0 0.6 1.51 1.51
HD-12-93 54.0 55.0 1.0 0.6 1.58 1.58
HD-12-94 2.0 3.0 1.0 0.7 1.10 1.10
HD-12-94 29.0 30.0 1.0 0.7 2.04 2.04
HD-12-95 NSR
HA-12-01 344.3 351.3 7.1 5.0 1.19 1.19
HA-12-01 419.0 421.0 2.0 1.5 1.12 1.12
HA-12-01 439.0 442.6 3.6 2.7 1.44 1.44
HA-12-02 247.1 270.7 23.6 16.8 2.61 2.61
HA-12-02 284.8 290.1 5.3 3.8 2.64 2.64
HA-12-02 329.0 332.4 3.4 2.5 1.48 1.48
HA-12-02 334.5 335.6 1.1 0.8 0.99 0.99
HA-12-02 342.9 346.3 3.3 2.4 2.69 2.69
HA-12-02 392.5 394.0 1.5 1.1 1.82 1.82
HA-12-08 101.50 110.11 8.61 5.10 1.26 1.26
HA-12-08 121.00 132.00 11.00 6.83 1.73 1.73
HA-12-08 217.00 253.00 36.00 23.14 1.49 1.49
HA-12-08 257.70 258.60 0.90 0.59 2.06 2.06
HA-12-09 0.00 NSR
HA-12-10 137.00 138.00 1.00 0.56 1.85 1.85
HA-12-10 140.00 165.00 25.00 14.91 1.72 1.72
HA-12-10 238.65 242.00 3.35 2.02 3.40 3.40
HA-12-10 248.00 249.50 1.50 0.97 1.13 1.13
HA-12-10 276.85 297.85 21.00 14.46 1.44 1.44
HA-12-11 181.76 183.10 1.34 0.76 2.31 2.31
HA-12-11 241.00 243.00 2.00 1.14 1.31 1.31
HA-12-11 278.70 282.42 3.72 2.14 2.18 2.18
HA-12-11 301.00 314.00 13.00 7.55 1.49 1.49
HA-12-11 330.00 334.00 4.00 2.33 2.01 2.01
(i) Assays have been capped at 30 g/t Au
(ii) HA series holes are core holes, HD series holes are reverse circulation
holes
NSR = No significant results
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