Avion Gold Corporation

Avion Gold Corporation

November 02, 2009 08:30 ET

Avion Acquires Option to Earn 75% Interest in an Inferred Gold Resource of 324,000 Ounces

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) - Avion Gold Corporation (TSX VENTURE:AVR) ("Avion" or the "Corporation") and Great Quest Metals Ltd. (TSX VENTURE:QG) ('Great Quest') are pleased to announce that they have executed a definitive agreement in relation to their previously announced letter of intent (see Avion News Release dated April 21, 2009) to acquire 75% of Great Quest's interest in three mineral concessions located adjacent to the south and west sides of the Tabakoto property (see figure) (the "Option Agreement"). Great Quest previously spent approximately US$3.0 million in expenditures to explore the properties.

The Great Quest properties comprise the Kenieba (Sansanto), Kenieba Est and Comifa concessions totaling approximately 32 km2, which increases Avion's local property package by approximately 30%. The Kenieba concession hosts a 43-101 compliant inferred resource in the Djambaye 2 gold zone of 324,000 ounces (Carl Verley (P. Geo.), January 28, 2008 Great Quest news release). This equates to 2,574,000 tonnes grading 3.92 grams per tonne gold.

Commenting on the proposed acquisition, Avion's President and CEO, Mr. John Begeman stated, "As stated before this disciplined acquisition represents an exciting opportunity for Avion to acquire nearby prospective gold projects that could provide additional feed for the Tabakoto mill and support Avion's stated growth and West African consolidation goals."

To acquire 75% of Great Quest's interest in the three mining concessions Avion is required to make cash payments of CDN$ 2,360,000 and work commitments of CDN$ 1,890,000 both over five years. On signing of the Option Agreement Avion made a cash payment of CDN$ 350,000 and is required to complete at least CDN$ 150,000 of exploration expenditures in year 1. Great Quest's interest in the properties varies from 95% to 100% subject to a carried interest to the Government of Mali ranging between 10% and 20%.

"Avion plans to build upon Great Quest's work that has defined a series of northerly trending intrusion-hosted gold zones and gold mineralized, sediment- and intrusion-hosted cross-structures that are similar in character to those on the Avion concessions. A program of soil sampling and magnetic surveys will be carried out in early 2010 to provide a large scale property view prior to the selection of new and follow-up drill targets." comments Don Dudek, Vice President Exploration for Avion.

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.

About Avion Gold Corporation

Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, with approximately 50,000 ounces of production forecast for 2009 rising to 101,400 ounces in 2012. 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, but is not limited to, statements with respect to the option agreement and the likelihood that Avion will earn its 75% interest, the likelihood of confirming complete title to the Property satisfactorily to Avion, the effect of the option agreement on the Company, the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms, the completion of the Dynamite acquisition and the effect of contracts and appointments on the Company. 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: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. 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.

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