April 16, 2007 13:11 ET

Avalanche Networks Corporation: News Release

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - Avalanche Networks Corp. ("Avalanche" or the "Company") (TSX VENTURE:AVH) is pleased to announce that its common shares will be reinstated for trading as of Tuesday April 17, 2007.

On December 18, 2006, at the Company's request, trading in the common shares of Avalanche was halted to announce the Company's intention of purchasing a 100% interest in certain mineral concessions in Ecuador, which acquisition would result in a change of business ("COB") for the Company pursuant to the policies of the TSX Venture Exchange (the "Exchange"). A final technical report (the "Technical Report") on the properties that are the subject of the COB has now been completed in accordance with National Instrument 43-101. Haywood Securities Inc., the Company's sponsor for the transaction, has now reviewed the Technical Report and has completed its initial due diligence on the properties being acquired. Haywood has signed the Sponsorship Acknowledgement Form, required by the Exchange, which will allow the Company's shares to now resume trading on the Exchange.

Avalanche is actively exploring the E Group properties comprising of 18 contiguous concessions, totaling 77,692 ha, located in the Western Cordillera of northwest Ecuador. Three significant mineral deposits are located adjacent (as defined by NI 43-101) to the E Group and they are hosted by the same geology that underlies parts of the E Group concessions. The three deposits are the Junin Cu-Mo-Ag deposit owned by Ascendant Copper Corporation with a NI 43-101 compliant inferred resource of 982.0 million tonnes grading 0.89% Cu, 0.04 % Mo and 1.91 g/t Ag. The La Plata volcanogenic massive sulphide deposit optioned to Coastport Capital Inc. with historic production of 130,000 tonnes averaging 3.62% Cu, 7.14% Zn, 4.11 g/t Au and 66.1 g/t Ag and an historic mineral resource (not NI43-101 compliant) of 840,459 tonnes averaging 4.1% Cu, 0.7% Pb, 4.2% Zn, 4.8 g/t Au and 54.4 g/t Ag. The El Corazon epithermal deposit presently being exploited at a rate of 50 tonnes per day by Compania AgroIndustrial El Corazon via an option agreement with Skeena Resources Limited from a zone with a reported discovery drill intercept of 48.97 g/t Au over 23.7 m.

Exploration work is being carried out by Buscore Consulting International, a mineral exploration consulting team comprising of both Canadian and Ecuadorian geologists based in Quito, Ecuador. Currently the field work is being carried out by a team of six Ecuadorian geologists under the supervision of three senior QP consultants from Buscore. Primary and secondary road access to the entire E Group concessions is very good.

Following the recommendations of the authors of the Technical Report, exploration work is presently focused on two E Group concessions where the favoured geology is centered on a major regional fault that extends southwest from near the El Corazon deposit for a distance of 12 km. Here two major drainage basins cross the area of favoured geology on the E Group concessions. The exploration approach is to traverse up all the creeks channels, collect stream and bedrock rock samples for geochemistry and map the geology. El Corazon-like altered and mineralized bedrock has been identified on the E Group concessions. As of the end of March, 2007, 98 stream sediment and 139 bedrock samples have been collected and submitted to ALS Chemex for gold assay and multi-element geochemical analysis.

Dave Melling of Buscore International Consulting, who is a Qualified Person pursuant to NI 43-101, has reviewed the content of this release for accuracy.

The Company intends, and has the necessary financial resources, to follow the recommendations contained in the Technical Report for the E Group of properties and is also actively pursuing other opportunities in both Ecuador and other countries in South America.

The Company is also pleased to announce the appointment of Murray Swales as the Chief Financial Officer of the Company effective April 5, 2007. Mr. Swales is a Chartered Accountant who has an extensive background of public company financial reporting needs and requirements resulting from over 25 years of public accounting and business experience.

Completion of the COB is subject to a number of conditions, including but not limited to, Exchange acceptance and shareholder approval. The COB cannot close until the required shareholder approval is obtained. There can be no assurance that the COB will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the transaction, any information released or received with respect to the change of business transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Avalanche should be considered highly speculative.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Avalanche believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Avalanche's management on the date the statements are made. Avalanche undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Avalanche Networks Corp.
    Sandy MacDougall
    President & CEO
    (604) 662-8186 or Cell: (778) 999-2159
    (604) 662-8170 (FAX)
    Avalanche Networks Corp.
    Scott LeSage
    Vice President of Corporate Development
    (604) 662-8186 or Cell: (604) 828-5990
    (604) 662-8170 (FAX)