Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

January 18, 2010 08:08 ET

Avion Discovers New Zone-Fougala 1 8.02 g/t Au Over 22.3 Metres

NOW PART OF A 10 KILOMETRE LONG NEW EXPLORATION TARGET

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2010) - Avion Gold Corporation ("Avion" or "the Company") (TSX VENTURE:AVR), today announced a new discovery, Fougala 1, and the results of a hole testing the Dioulafoundou zone. Highlights are as follows:

  • Fougala 1 Zone – The significant intersection of 8.02 g/t Au over 22.3 metres is located 2 kilometres north and parallel to the recently acquired Djambaye II mineralization (Inferred resources of 324,000 ounces Au).
  • Mineralization is at the southern boundary of the Tabakoto property
  • The Fougala 1 Zone and the Djambaye I mineralization appear to be part of a 10 kilometre long exploration target, which extends northward onto the Tabakoto Property.
  • Dioulafoundou Zone - Additional high grade mineralization – 4.24 g/t Au over 14.8 metres - was intersected in northwest-trending structures.
  • Mineralization in northwest-trending structures has now been outlined over a 300 metre strike length to a vertical depth of 120 metres and remains open at depth.
  • Avion believes this latest intersection confirms the geological model.

Don Dudek, Senior Vice President, Exploration commented: "The Fougala Zone highlights the importance and value of the acquisition of the Djambaye mineralization. In very short order we have been able to outline two, highly prospective, near surface, 10 kilometre exploration targets, with one of them already hosting an inferred resource of 324,000 ounces of gold. The results from Fougala and Dioulafoundou support Avion's goal to further increase the mineral resources with the 2010 exploration program. I am optimistic that Avion will define mineable resources outside of the known Tabakoto and Segala deposits in 2010."

Technical Details

Fougala Area

The Fougala 1 zone intercept, 8.02 g/t Au over 22.3 metres core length starting at 80.1 metres hole depth, lies in the southwest corner of the Tabakoto property near the recently acquired Kenieba Property (see Figure). The mineralization is along strike from, and 4 kilometres north of, the Djiambaye I mineralization and parallel to the Djambaye II mineralization which contains 324,000 ounces Au (Carl Verley (P. Geo. - January 28, 2008 Great Quest news release - 2,574,000 tonnes grading 3.92 grams per tonne gold) of near surface inferred resources. Mineralization in this new Fougala 1 zone is associated with a northerly-trending, pyrite-mineralized and quartz-veined felsic intrusion and host greywackes. This style of mineralization is different from that at the Tabakoto and Segala deposits and is believed to be identical to that associated with the Djambaye I and Djambaye II zones.

The Djambaye I and II zones cover a strike extent of approximately three kilometres and are open along strike and to depth. Avion is optimistic that the Fougala 1 zone and Djambaye I zones, are part of the same 4 km long mineralized trend that also appears to extend northward into the Tabakoto property where gold-in-soil anomalies extend the target horizon for an additional six kilometers. Several parallel trends and cross structures have not been tested yet. Drilling is planned to test this concept and extend the Djambaye II zone north towards the Tabakoto Property, starting in January.

Dioulafoundou Area

One hole, D-09-03, was drilled into the northwest-trending Dioulafoundou NW zone in 2009 to test the mineralization model. This hole not only validated the model but extended the zone 50 metres down-dip with an intercept of 4.24 g/t Au (3.91 g/t Au capped at 28 g/t) over 14.8 metres (12 metres true width) (see Figure). This zone trends parallel to the well mineralized, northwest-trending cross-structures observed in the Tabakoto Pit and several other untested lineaments in the project area.

The northwesterly trending mineralization intersects an 800+ metre long, northerly-trending zone of mineralization (Dioulafoundou North), which appears to be a southward extension of the same trend that hosts the Tabakoto pit mineralization, located 2.5 kilometres to the north. This northerly-trending zone is still open to depth below 125 metres, open to the south and north and has not been the subject to a formal resource study.

Avion's procedures for handling drill core are consistent with industry practice and described in more detail in previous news releases. Avion continues to present assay composites with high grade samples capped at 28.0 g/t Au, which is the capping level deemed appropriate for the Dioulafoudou Zone (Avion news release May 19, 2009).

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. Avion Gold Corporation has not completed a feasibility study on the Mali gold projects.

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 100,000 ounces of production forecast for 2010 with an expected cash cost of US$450 per ounce of gold. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Cautionary Notes

The quantity and grade of reported inferred resources are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category

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 results on the Company; statements with respect to the development potential and timetable of the Mali projects; 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: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; ability to successfully integrate the purchased properties; foreign operations risks; other risks inherent in the mining industry and other 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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/avion0118fig1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/avion0118fig2.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/avion0118fig3.pdf

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Contact Information

  • Avion Gold Corporation
    Rene Bharti
    Vice President Business Development
    (416) 861-5913
    rene@aviongoldcorp.com