Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

September 30, 2009 07:30 ET

Avion Gold Extends Segala Main Zone Plunge by 50% (200 Metres Vertically)

TABAKOTO SOUTH ZONE RETURNS 4.75 g/t Au OVER 9.7 METRES CONTINUITY CONFIRMED, ZONE OPEN DOWN PLUNGE

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2009) - Avion Gold Corporation ("Avion Gold" or "the Company") (TSX VENTURE:AVR), today announced the results of six holes, four of which tested the Segala Main zone at depth and two of which tested the Tabakoto South zone and preliminary Au-leach test results.

Segala Main Drill Holes:

All holes drilled to test the down plunge continuity of the Segala Main zone have intersected a core of significant gold values that is flanked by numerous, narrow mineralized structures. Avion's deepest hole to date, hole S-09-05C, intersected 2.84 g/t Au over 22.9 metres (14.0 metres true width) on the down plunge extension of the Segala Main zone approximately 600 metres from surface, some 200 metres deeper than all previous holes (see figure http://aviongoldcorp.com/Theme/Avion/files/Sept292009.pdf). Three additional Segala Main zone infill holes returned the following intercepts:

- S-09-14A - 5.47 g/t Au (5.32 g/t Au capped) over 33.3 metres (25.0 metres true width)

- S-09-17A - 1.47 g/t Au over 29.5 metres (25.0 metres true width)

- S-09-18 - 3.86 g/t Au over 29.1 metres (17.5 metres true width)

A total of 25 Segala Main infill holes have been completed in 2009 with six more scheduled to be drilled before the end of the program.

Hole S-09-05 also intersected a narrow zone near the top of the hole that returned 25.90 g/t Au over 0.5 metres. This intercept lies within the northeast-trending Segala Granite, which can be traced for approximately 1.4 km along strike and varies from 400 metres to 725 metres in width. Nearby artisanal activity, in the Segala granite, excavated two, approximately 50 metre long trenches, which are possibly an extension of the mineralization intersection in hole S-09-05. In addition, the northwest contact of the Segala granite is mineralized and altered and returned an intercept of 0.86 g/t Au over 8.4 metres core length. The presence of gold mineralization in the Segala granite and linear magnetic features in the granite suggesting fault zones, make the area in and around the Segala granite a priority for future exploration.

Tabakoto South Drill Holes:

A total of ten holes have been completed to test three, closely spaced, northeast-trending zones of gold mineralization located just south of the historic Tabakoto Pit. This northeast-trending zone of gold mineralization has been traced for 450 metres along strike and is suspected to extend for at least 750 metres along strike. The Tabakoto South trend lies approximately 260 metres southeast, and is parallel to, the well mineralized northeast-trending structure referred to in Avion's August 17, 2009 news release (see figure - http://aviongoldcorp.com/Theme/Avion/files/Sept292009.pdf). To date, results have only been returned for two holes that tested the eastern third of the Tabakoto South trend. These holes were drilled to test a 100+ metre wide vertical and horizontal gap in the long section (see figure). Hole T-09-02 returned 5.01 g/t Au over 3.2 metres (2.7 metres true width) and hole T-09-08A returned 4.75 g/t Au over 9.7 metres (8.0 metres true width) (see figure - http://aviongoldcorp.com/Theme/Avion/files/Sept292009.pdf).

To September 19, 2009, Avion's 2009 exploration program has completed 92 drill holes totaling 18,147 metres of drilling of a total of 21,700 metres of drilling planned before the completion of the program. More than 50% of this drilling has focused on the Segala area to support both current and long term mine planning. Drilling in the Segala area continues to intersect wide zones of gold mineralization, alteration and numerous secondary mineralized features. A summary of the 2009 mineralized intercepts in the Segala zone and Tabakoto South zones are presented at the end of this release.

Don Dudek, Senior Vice President, Exploration, commented: "The Segala area displays widespread gold mineralization in numerous stratigraphy-parallel to cross-cutting structures and excellent down depth extent as indicated by Avion's deep hole on the Segala Main zone. New concepts and targets continue to be developed, lending confidence that the mineral resources in this area will continue to expand. As well, the northeast structures, in and near the Tabakoto pit, with strike lengths in excess of 300 metres, continue to reward Avion's exploration efforts".

Leach testing of three oxide to transitional samples of Segala Main mineralization grading from 0.21 g/t Au to 1.0 g/t Au, by FL Smidth Dawson Metallurgical Laboratories in Utah, during a 72 hour bottle roll test of material crushed to -2 inch (- 5.1 cm), returned recoveries of up to 85% of the gold. These results have prompted Avion to expand the testing to include Tabakoto oxide and sulphide mineralization and Segala Main sulphide mineralization. Column leach tests are expected to be the next step with a plan to both develop this ability on site and complete the first phase of column testing before year-end.

John Begeman, President and CEO, commented: "More aspects of the Tabakoto and Segala projects are starting to come together including higher head grades from the Segala pit, the increase in confidence of the known mineralized zones and a possibility for Avion to take advantage of low grade mineralization, which to this point, has been considered waste. Avion will continue to build on the resource and project base we have to make the company stronger in the future."

Studies to support a capacity upgrade to 200,000 ounces per year are underway with grinding studies, preliminary mill expansion and open pit versus underground mining studies in progress. This work is being completed by both consultants and company staff and is expected to be completed before year-end. Avion's current Measured and Indicated Mineral Resource is 1.21 million ounces of gold grading 3.48 g/t Au. In addition, Avion's Inferred Mineral Resource is 1.14 million ounces of gold grading 3.50 g/t Au (Avion, May 19, 2009 news release).

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.

Avion's procedures for handling drill core comprise initial descriptions and logging into a Microsoft Access database. Mineralized and suspected mineralized intervals in the holes are described in detail and marked for sampling. Core is then cut in half with the right-hand portion of the core put into plastic sample bags and sealed. Assay standard samples are inserted every 20th sample and split core from every 20th sample is also quartered and sent in as a separate sample to double check the assays from these intervals. This sampling procedure was initiated and periodically reviewed by Avion's Senior Vice President of Exploration, Don Dudek, P. Geo. These samples were then delivered to a representative of SGS Mineral Service based in Kayes, Mali. The assay samples are then crushed to 2 mm with riffle split, if required, to 1.5 kg, the entire sample milled in a LM2 mill to a nominal 95% passing 75 micrometres. All the preparation equipment is flushed with barren material prior to the commencement of the job. Gold values were determined by Fire Assay and AAS with a 50 gram nominal sample weight. Avion's channel samples were analyzed at Avion's Tabakoto mine laboratory. In order to ensure that local, exceptionally high grade assays are not overly represented in assay composites, Avion is also presenting assay composites with high grade samples capped at 27.5 g/t Au, which is the capping level deemed appropriate for the Segala Main Deposit and 37.5 g/t Au for the Tabakoto Deposit (Avion: December 12th, 2008 news 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 commenced in mid- February, 2009. 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 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.

Should you wish to receive Company news via email, please email info@avionresources.com and specify "AVR News" in the subject line.



Summary of Exploration Drill Assay Results Released in 2009

----------------------------------------------------------------------------
Capped True
Hole From (m) To (m) Width (m) Au ppm Au ppm Width (m)
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S-09-01A 286.80 287.50 0.7 4.48 0.4
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S-09-01A 299.70 299.90 0.2 1.40 0.1
----------------------------------------------------------------------------
S-09-01A 307.40 310.55 3.2 1.19 2.5
----------------------------------------------------------------------------
S-09-01A 342.20 344.90 2.7 3.50 2.0
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S-09-01A(i) 352.20 379.10 26.9 3.60 3.44 15.0
----------------------------------------------------------------------------
S-09-01A 387.00 387.60 0.6 2.32 0.3
----------------------------------------------------------------------------
S-09-01A 390.60 391.60 1.0 2.93 0.6
----------------------------------------------------------------------------
S-09-01A 399.55 401.60 2.1 5.25 1.2
----------------------------------------------------------------------------
S-09-02 110.10 111.05 1.0 3.31 0.7
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S-09-02 205.00 206.45 1.5 3.78 1.1
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S-09-02 293.15 294.50 1.4 4.49 1.0
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S-09-02 298.95 300.08 1.1 2.55 0.8
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S-09-02 326.50 328.95 2.5 4.93 1.8
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S-09-02(i) 332.60 353.17 20.6 5.36 5.36 15.0
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S-09-03A 315.80 316.10 0.3 3.19 1.9
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S-09-03A(i) 327.05 359.20 32.2 2.32 2.24 19.5
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S-09-04 68.60 68.80 0.2 19.50
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S-09-04(i) 344.70 394.00 49.3 3.84 3.04 28.0
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Incl. 368.5 376.5 8.4 11.16 7.52 4.8
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S-09-05 50.90 51.40 0.5 25.90
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S-09-05C 34.70 35.10 0.4 0.52
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S-09-05C 227.2 235.6 8.4 0.86
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Incl. 230.70 231.90 1.2 4.52
----------------------------------------------------------------------------
S-09-05C 644.50 647.45 3.0 1.03 1.8
----------------------------------------------------------------------------
S-09-05C 653.00 654.00 1.0 4.29 0.6
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S-09-05C(i) 658.10 681.00 22.9 2.84 14.0
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incl 670.5 676.0 5.5 5.59 3.4
----------------------------------------------------------------------------
S-09-14A 4.50 6.00 1.5 1.45 0.9
----------------------------------------------------------------------------
S-09-14A 122.00 124.00 2.0 1.82 1.2
----------------------------------------------------------------------------
S-09-14A 264.00 265.20 1.2 2.86 0.7
----------------------------------------------------------------------------
S-09-14A(i) 272.60 305.90 33.3 5.47 5.32 25.0
----------------------------------------------------------------------------
Incl. 278.0 292.6 14.6 10.05 9.73 11.0
----------------------------------------------------------------------------
S-09-17A(i) 174.5 204.0 29.5 1.47 25.0
----------------------------------------------------------------------------
incl 174.50 183.50 9.00 1.08 7.6
----------------------------------------------------------------------------
incl 186.50 196.70 10.20 1.64 8.6
----------------------------------------------------------------------------
Incl. 199.60 204.00 4.4 3.34 3.7
----------------------------------------------------------------------------
S-09-17A 207.00 216.50 9.5 0.94 8.1
----------------------------------------------------------------------------
S-09-17A 218.00 221.00 3.0 3.66 2.5
----------------------------------------------------------------------------
S-09-17A 230.00 239.00 9.0 1.47 7.6
----------------------------------------------------------------------------
S-09-17A 246.50 249.50 3.0 1.08 2.5
----------------------------------------------------------------------------
S-09-18 309.15 310.30 1.2 5.00 0.7
----------------------------------------------------------------------------
S-09-18 330.15 331.00 0.9 5.91 0.5
----------------------------------------------------------------------------
S-09-18(i) 337.90 367.00 29.1 3.86 3.72 17.5
----------------------------------------------------------------------------
S-09-18 369.00 371.00 2.0 1.55 1.2
----------------------------------------------------------------------------
S-08-18 369.0 376.0 7.0 1.73 4.2
----------------------------------------------------------------------------
incl 372.25 376.00 3.8 2.33 2.3
----------------------------------------------------------------------------
S-09-18 386.00 388.00 2.0 0.79 1.2
----------------------------------------------------------------------------
S-09-18 394.00 395.00 1.0 5.12 0.6
----------------------------------------------------------------------------
T-09-02 237.00 240.20 3.2 5.01 2.70
----------------------------------------------------------------------------
T-09-02 259.30 259.50 0.2 3.84 0.2
----------------------------------------------------------------------------
T-09-08A 21.00 22.00 1.0 2.95 0.8
----------------------------------------------------------------------------
T-09-08A 227.00 228.25 1.3 2.75 1.0
----------------------------------------------------------------------------
T-09-08A 232.55 242.25 9.7 4.75 8.00
----------------------------------------------------------------------------

(i) Segala Main zone intercepts


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