Avion Gold Corporation
TSX VENTURE : AVR
OTCQX : AVGCF

Avion Gold Corporation

September 09, 2010 07:30 ET

Avion Extends High Grade Tabakoto Mineralization to Depth

New intersections of up to 16.06 g/t Au over 6.8 Metres and 11.48 g/t Au over 7.9 Metres

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion") is pleased to announce new drill results for the area below the Tabakoto Pit. This area has been previously identified as hosting gold mineralized, northeast-trending cross structures (see Figures). Significant intercepts include the following:

  • 16.06 g/t Au over 6.8 metres 

  • 11.48 g/t Au over 7.9 metres

  • 7.84 g/t Au over 5.1 metres

  • 9.19 g/t Au over 5.0 metres

  • 7.82 g/t Au over 3.7 metres

  • 35.0 g/t Au over 2.7 metres

The Tabakoto pit area, which extends from Avion's recently announced Dioulafoundou discovery to the south up to the Dar Salam zone in the north, just over 4 kilometres long. This area is cut by more a multitude of northeast- and northwest-trending, typically high grade, gold-bearing structures. These structures are the focus of Avion's exploration plans and underground mine development at Tabakoto. To date exploration drilling in 2010 focused on seven of these cross-structures, in the immediate Tabakoto pit area. This release presents results on three of these cross structures. Subsequent exploration updates will present the drilling results on the other cross structures when available. It is expected that future exploration will focus on systematically defining the known cross structures and tracing them along strike and down plunge.

Avion's recent drilling has traced two, steeply-south-dipping, steep-southeast-plunging, northeast-trending cross structures, NE1 and NE2 (figures 3 and 4). These structures have been defined to approximately 300 metres below surface, where they are open down plunge, and from 225 to 300 metres along strike. This drilling is designed to further support planning for Avion's new Tabakoto underground mine. The gold mineralized portion of the NE1 cross structure has been traced for approximately 300 metres along strike and the NE2 cross structure, which is located 25 to 40 metres from the NE1 cross structure, has been traced for approximately 225 metres. The zone intercepts are presented on Figures 3 and 4. All zone and proximal intercepts are presented in a table at the end of this document.

In addition to the NE1 and NE2 zones, 2010 drilling has returned two additional intercepts from a third cross structure (initially reported in a December 11, 2008 News Release as an intercept of 37.12 g/t Au over 7.7 metres). Recent holes T-10-14 and T-10-15 returned 10.96 g/t Au over 7.2 metres and 12.63 g/t over 2.9 metres, respectively. This structure appears to have a short strike length, but, provides further evidence of the abundance of relatively narrow, but, high grades encountered in the Tabakoto deposit area.

Drill holes that targeted the NE1 and NE2 zones also intersected additional gold bearing intervals both south and north of the these zones. Additional interpretation is required out to determine the continuity and potential mineability of theses additional intercepts. 

John Begeman, Avion's President and CEO, stated: "The continual stream and predictability of high grade results from the Tabakoto area further supports Avion's plan to develop an underground mine at Tabakoto. The Company has planned to mine most of the mineralization by the sublevel longhole method, and narrow structures by shrinkage stoping."

In 2010 Avion has completed over 400 core and reverse circulation drill holes totaling approximately 50,000 metres of drilling, at the Tabakoto property. This work has focused predominantly on the Dioulafoundou, Tabakoto, Djambaye II and Ségala areas. Additional results will be released when received and evaluated. Drilling will recommence on Avion's Houndé property, Burkina Faso, in October, 2010 with an additional 4,000 metres of drilling planned. Drilling is planned for the Kofi property, Mali, once the concession permits are transferred to Avion (See News Release dated March 31, 2010).

Avion's procedures for handling core have been presented in previous news releases (See for e.g. Avion News Release dated May 13, 2010). Assays presented in the attached table have been capped at 32 g/t Au as per the latest technical report on the Tabakoto deposit.

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 mining company focused in West Africa that holds 80% of the Tabakoto and Ségala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced. 2010 production is estimated at 75,000 to 85,000 ounces of gold. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. Additionally, the 1,670 km2 Houndé exploration property in Burkina Faso, that Avion is in the process of acquiring (see News Release dated July 5, 2010) is returning good results from an ongoing exploration program. These properties are the subject of an approximate US$ 12 million dollar, 60,000 metre plus, drill-focused exploration program in 2010, which management expects, based on results to date, to add new resources and future opportunities for Avion. Avion continues to progress towards its longer term goal of 200,000 ounces of gold per year and is preparing to mine underground at the Ségala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa

Cautionary Notes

The ability of Avion to increase production to 200,000 ounces of gold per year has not been the subject of a feasibility study and there is no certainty that the proposed expansion will be economically viable.

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 drilling results on the Company; statements with respect to the development potential and timetable of the Tabakoto, Kofi and Houndé 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 those 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.

Avion 2010 NE 1 and NE2 Zone Area Intercepts

BHID FROM TO LENGTH TW Au Capped Zone
T-10-11 116.5 117 0.5 0.4 0.32 0.32 NE2
T-10-11 143.4 152.8 7.9 5.0 11.48 6.59 NE1
T-10-11 215.3 216.5 1.2   8.67 8.67  
T-10-12 169.3 169.9 0.5 0.4 0.50 0.5 NE2
T-10-12 206.45 207.9 1.5 1.2 8.85 8.85 NE1
T-10-13 104 107.3 3.3 3.0 0.34 0.34 NE1
T-10-14 49 54.35 5.35   5.29 5.29  
T-10-14 79.3 86.5 7.2 6.0 10.96 6.07 HW zone
T-10-14 101.2 104.95 3.75   1.26 1.26  
T-10-14 114 116.4 2.4 15.18 15.18 15.18  
T-10-14 135.9 137 1.1 2.68 2.68 2.68  
T-10-14 141.35 142.5 1.15 5.49 5.49 5.49  
T-10-14 146.1 151.2 5.1 3.0 7.84 7.84 NE2
T-10-14 NV 167 1.0 0.0 0.00 0 NE1
T-10-14 230.8 232.0 1.3   1.13 1.13  
T-10-15 67.7 71.3 3.6   1.31 1.31  
T-10-15 94.3 97.0 2.8   1.71 1.71  
T-10-15 104.5 110.5 6.0   1.74 1.74  
T-10-15 119.5 122.4 2.9 2.0 12.63 12.63 HW zone
T-10-15 187.0 192.3 5.3   4.38 4.38  
T-10-15 205 224.45 19.5 12.5 3.86 3.86 NE2
T-10-16 179.4 179.8 0.4 0.3 1.50 1.5 NE2
T-10-16 80.0 81.0 1.0   1.25 1.25  
T-10-16 205 209.8 4.8 4.0 18.14 8.78 NE1
T-10-16 234.3 236.1 1.8   2.48 2.48  
T-10-16 245.4 246.9 1.6   2.59 2.59  
T-10-16 249.5 250.5 1.0   1.13 1.13  
T-10-17 89.2 90.3 1.1   21.20 21.20  
T-10-17 129.2 129.9 0.7 0.5 0.39 0.39 NE2
T-10-17 160.1 161.0 0.9   4.24 4.24  
T-10-17 167.75 171.4 3.7 2.3 7.82 7.82 NE1
T-10-17 185.5 187.0 1.5   1.00 1.00  
T-10-17 195.0 198.6 3.6   4.48 4.48  
T-10-17 201.5 207.0 5.5   2.22 2.22  
T-10-18 NV           NE2
T-10-18 225.2 232.5 8.8 4.7 2.79 2.79 NE1
T-10-18 231.2 232.5 1.3   8.09 8.09  
T-10-19A 194 195.6 1.6 1.2 3.38 3.38 NE2
T-10-19A 237.4 240.3 2.9 1.8 8.94 8.17 NE1
T-10-19A 242.5 244.8 2.3   1.18 1.18  
T-10-19A 249.5 252.6 3.1   1.85 1.85  
T-10-19A 255.3 257.0 1.7   9.31 9.31  
T-10-19A 279.3 282.6 3.3   6.74 6.74  
T-10-19A 289.4 292.1 2.7   3.67 3.67  
T-10-20 120.25 126.2 5.9 3.5 7.00 7 NE2
T-10-20 138.0 139.0 1.0   5.23 5.23  
T-10-20 172.2 174.8 2.6 1.8 10.09 9.7 NE1
T-10-21 29.5 32.5 3.0   3.04 3.04  
T-10-21 38.6 39.1 0.5   8.53 8.53  
T-10-21 56.0 58.5 2.5   1.20 1.20  
T-10-21 96.0 97.5 1.5   2.06 2.06  
T-10-21 261.05 262.25 1.2 1.0 8.70 8.7 NE2
T-10-21 272.0 273.4 1.4   1.44 1.44  
T-10-21 281.5 282.2 0.8   2.75 2.75  
T-10-21 315.8 317.55 1.8 1.5 2.93 2.93 NE1
T-10-22 15.9 17.5 1.7   6.92 6.92  
T-10-22 35.1 36.1 1.0   4.90 4.90  
T-10-22 62.5 64.0 1.5   1.18 1.18  
T-10-22 277.4 279.9 2.5   6.56 6.56  
T-10-22 297.3 303.5 6.2 5.0 9.19 9.19 NE2
T-10-22 306.8 308.8 1.9   17.22 17.22  
T-10-23 139.2 141.4 2.2   2.30 2.30  
T-10-23 148.7 150.2 1.5   1.03 1.03  
T-10-23 158.1 163.7 5.6   3.92 3.92  
T-10-23 166.7 168.2 1.5   1.60 1.60  
T-10-23 174.0 175.5 1.5   13.60 13.60  
T-10-23 204.6 206.1 1.5   1.74 1.74  
T-10-23 209.1 211.3 2.3   4.35 4.35  
T-10-23 214.4 214.9 0.5   1.59 1.59  
T-10-23 217.2 218.3 1.2   1.28 1.28  
T-10-23 308 310 2.0 1.4 1.85 1.85 NE2
T-10-23 369 371.7 2.7 2.0 35.00 18 NE1
T-10-24 175.6 176.6 1.0   2.53 2.53  
T-10-24 259.9 261.0 1.0   1.75 1.75  
T-10-24 271.9 274.18 2.3 1.7 2.46 2.46 NE2
T-10-24 282.5 284.0 1.5   1.60 1.60  
T-10-24 298.0 299.5 1.5   2.02 2.02  
T-10-24 314.5 316.0 1.5   1.57 1.57  
T-10-24 320.5 324 3.5 2.4 2.54 1.11 NE1
T-10-24 328.4 329.4 1.0   1.36 1.36  
T-10-24 333.7 334.7 1.0   2.04 2.04  
T-10-24 354.9 356.9 2.0   6.37 6.37  
T-10-24 362.0 363.2 1.2   1.10 1.10  
T-10-25 4.5 5.2 0.7   23.20 23.20  
T-10-25 308.4 311.9 3.5   1.34 1.34  
T-10-25 333.52 340.3 6.8 5.0 16.04 9.23 NE2
T-10-25 396.9 397.9 1.0 0.6 0.88 0.88 NE1
T-10-30 229.6 247.3 17.7 11.0 3.55 3.55 NE2
T-10-30 236.0 241.5 5.5   5.21 5.21  
T-10-30 245.5 247.3 1.8   5.52 5.52  
T-10-30 250.0 251.7 1.7   3.55 3.55  
T-10-30 282 288 6.0 4.5 5.58 5.58 NE1
T-10-31 310.1 330 19.9 13.5 1.98 1.98 NE2
T-10-31 316.5 317.2 0.7   4.05 4.05  
T-10-31 321.2 322.3 1.1   3.17 3.17  
T-10-31 326.5 328.5 2.0   4.23 4.23  
T-10-31 NV           NE1
T-10-32 86.3 89.2 2.9   2.67 2.67  
T-10-32 237.6 238.6 1.0 0.8 9.62 9.62 NE2
T-10-32 NV           NE1
T-10-32 257.7 258.2 0.5   5.48 5.48  
T-10-33 255.5 262.5 7.0 4.5 2.24 2.24 NE2
T-10-33 303.9 304.4 0.5 0.4 1.80 1.8 NE1
T-10-34 297.4 302.55 5.2 3.5 1.33 1.33 NE2
T-10-34 350 355 5.0 0.0 0.00 0 NE1

Figures are available at the following addresses:

Figure 1: http://media3.marketwire.com/docs/Fig1_20100908.pdf

Figure 2: http://media3.marketwire.com/docs/Fig2_20100908.pdf

Figure 3: http://media3.marketwire.com/docs/Fig3_20100908.pdf

Figure 4: http://media3.marketwire.com/docs/Fig4_20100908.pdf

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