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Avion Gold Corp
Symbol AVR
Shares Issued 368,833,994
Close 2010-11-03 C$ 0.86
Market Cap C$ 317,197,235
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Avion Gold's Tabakoto produces 9,120 Au oz in October

2010-11-04 08:20 ET - News Release

Mr. Michael McAllister reports

AVION GOLD PRODUCES 9,120 OUNCES IN OCTOBER 2010

Avion Gold Corp. is providing October, 2010, monthly production of approximately 9,123 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa. Year-to-date gold production for 2010 is approximately 70,663 ounces.

In October, 2010, Avion processed 64,500 tonnes of ore at an average grade of 4.53 grams per tonne Au, with a 97.3-per-cent mill recovery, for gold production of 9,123 ounces. Management expects to exceed the fourth-quarter production target of 20,000 ounces of gold and to finish the year at the upper end of its production guidance of 75,000 ounces to 85,000 ounces of gold.

Andrew Bradfield, Avion's chief operating officer, commented: "The Tabakoto/Segala operation continues to produce a consistent level of gold each month. Production since last June has been over 7,200 ounces per month, and the company expects this to continue for the remainder of 2010."

Waste rock stripping at the Dioulafoundou deposit, located 3.8 kilometres from the Tabakoto process plant, started in late October. A wheel-tractor scraper fleet with bulldozer support is operating at Dioulafoundou to quickly remove the alluvium and laterite cap material. The Dioulafoundou deposit has open pit indicated mineral resources of 502,000 tonnes grading 5.16 grams per tonne Au totalling 83,400 ounces of gold and open pit inferred mineral resources of 105,000 tonnes grading 5.92 g/t Au totalling 19,900 ounces of gold (as announced in Stockwatch on July 14, 2010). Management expects that mill feed in 2011 will come primarily from this deposit as the company transitions from open pit mining at Segala to underground mining at the Tabakoto and Segala deposits.

Underground mine development of the Tabakoto deposit is now well established, with the contractor achieving a regular amount of metres advance per day in each of the two drifts.

Engineering work on the EPCM contract to double the process plant capacity continues on schedule.

Mr. Bradfield, PEng, the chief operating officer of the company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this news release.

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