Avala Resources Ltd.

Avala Resources Ltd.

March 25, 2013 07:34 ET

Avala Resources Reports Korkan Infill Drilling Program Results

LONGUEUIL, QUEBEC--(Marketwire - March 25, 2013) - Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to present drill results from the Korkan infill drilling program, part of the Timok Gold Project.


Korkan Infill Drilling Program

  • The 40 metre by 40 metre infill drilling program at Korkan has been completed and a validated database has been delivered to independent mining consultants AMC Consultants Limited (UK) ("AMC") in order to produce an updated NI 43-101 compliant resource estimate.
  • Very encouraging gold intercepts (0.4 g/t Au cut-off grade) have been returned from the infill drilling program, typically characterised by multiple gold mineralized intersections per hole.
Hole ID From (m) To (m) Interval (m) Au (g/t) Gram-meters
KORC190 20 35 15 2.18 33
KORC190 94 104 10 0.60 6
KORC190 174 248 74 1.96 145
KORC192 41 57 16 0.74 12
KORC192 63 111 48 2.85 137
KORC192 160 170 10 0.54 5
KORC203 22 76 54 1.84 99
KORC203 91 100 9 1.91 17
KORC208* 18 55 37 0.62 23
KORC208* 160 184 24 1.48 36
KORC208* 196 226 30 3.99 120
KORC224 222 257 35 5.69 199
KORC254 5 22 17 0.71 12
KORC254 35 78 43 1.95 84
KORC254 108 120 12 0.55 7
KORC255 21 91 70 2.06 144
KORC270 95 120 25 1.75 44
KORC270 128 143 15 2.87 43
KORC282 11 85 74 5.46 404
KORC285 23 68 45 2.61 117
KORC286 10 41 31 1.29 40
KORC286 47 84 37 2.39 88
KORC287 29 122 93 1.92 179
KORC288 48 56 8 1.20 10
KORC288 75 99 24 4.75 114
KORC288 110 129 19 0.73 14
KORC293 12 61 49 2.72 133
  • Note: Intersections calculated using 5 meter minimum thickness, 5 meter maximum included waste.
  • Note: Minor intercepts in KORC208 omitted for clarity. Refer to Table 1 for full intersection listing.
  • Avala commenced infill drilling at Korkan in August 2012 and the program was completed in October, for a total of 20,889.7 meters (20,323 meters of reverse circulation drilling and 566.7 meters of diamond drilling).
  • A total of 134 RC drill holes, for 20,323 meters, have been completed in the infill drilling program, to provide a notional 40m by 40m drill collar spacing. The average hole depth is 152 meters and the calculated drill recovery is 90%.
  • In addition, one diamond drill hole was also completed during the infill drilling program and a 92% core recovery was recorded.
  • Refer to Table 1 for a summary of the Korkan infill drill program intersections at a 0.4g/t Au cut-off grade. Figure 1 shows a gram-meter total metal contour plot (intervals greater than 0.4g/t Au x thickness), of all Korkan drilling to date, superimposed on topographic contours. Drill collars for holes reported in this release are highlighted in red in Figure 1. Figure 2 displays the gram-meter total metal contour plot for the Korkan resource area.
  • Multiple gold mineralized intercepts per hole are a common feature of the gold mineralization outlined to date in the Bigar Hill, Korkan and Kraku Pester target areas.
  • Following full internal validation, the updated Korkan exploration database has been delivered to AMC in order to undertake an independent resource estimation update.
  • It is planned to complete the updated Canadian National Instrument 43-101 compliant resource estimate on Korkan during Q2, 2013.
  • All drill holes have been down-hole surveyed at regular intervals; with drill collars surveyed using DGPS or total station surveying methods. The topographic surface is based on detailed DGPS and total station surveying methods, with an average survey station spacing of approximately 15 meters by 15 meters.
  • As per standard Avala data acquisition protocols, a full set of field duplicates, lab duplicates and replicates, blanks and internationally accredited assay standards have been routinely collected and inserted into the sample sequence.
  • All drill hole assaying and bulk density measurements have been carried out independently by SGS.
  • Figure 3 shows the location of the Korkan deposit within the greater sediment-hosted gold belt, as defined in this image by mapped 'target stratigraphy'. Figure 3 also shows anomalous gold soil geochemistry, on which the total metal contour plots, based on drill intersections, are superimposed
  • Please see the following link to view all Korkan-Bigar and Kraku Pestar drill holes located spatially in three dimensions: http://www.corebox.net/properties/timok-gold-project

The Company has established a fully equipped, 'state of the art' laboratory facility at Bor, Eastern Serbia which is independently managed by SGS. Diamond drill core and RC samples have been prepared and assayed at the SGS-managed laboratory facility at Bor. A one metre sampling interval has been used where possible for the Sediment-Hosted Gold project diamond drilling program. Half core is routinely submitted to the laboratory for analysis. Reverse circulation drill samples, collected using a routine one meter sampling interval, have been prepared and assayed at the laboratory facility at Bor. Following Avala standard quality assurance procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards and blanks, have been submitted with each batch of samples.

All data collected in the field was routinely entered into geology and structural geology spread sheets using Field Marshal software for subsequent entry to an acQuire database and validation.

Dr Julian F. H. Barnes, a qualified person under National Instrument 43-101, a Director and the Company's Special Consultant, has supervised the preparation of the technical data in this press release.

About Avala Resources Ltd.: Avala Resources is a mineral exploration company focused on the exploration and development of the Timok Gold Project in Eastern Serbia. Avala has recently announced a NI 43-101 compliant resource estimates on the three principal targets of its Timok Gold Project. Avala controls 100% of this newly identified sediment-hosted gold belt, which totals approximately 1,200 square kilometers. The common shares of Avala trade on the TSX Venture Exchange under the symbol 'AVZ'. Avala's issued and outstanding share capital totals 254,492,223 common shares, of which approximately 53.1% is held by Dundee Precious Metals Inc. (TSX: DPM). Avala is well-capitalized, with approximately $9 million in its treasury at January 31, 2013, which it plans to use for the exploration and development of its mineral projects in Serbia.

Cautionary Statement

This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward looking information in this news release includes information with respect to the plans to complete an updated NI 43-101 compliant mineral resources, the timing and location of future work programs, the results and interpretation of studies and exploration activities, the nature of the mineralization of the project, and the potential size of the sediment-hosted gold system.

Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of the information and is subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information. 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 factors that cause results to be other than as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.

Figures 1 to 3 and Table 1 are available at the following link: http://media3.marketwire.com/docs/avz_0325.pdf

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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