Avion Gold Corporation

Avion Gold Corporation

September 23, 2010 07:30 ET

Avion Gold Corporation: Tabakoto South Intercepts Expand Extent of Higher Grade Gold Zones

NEW INTERSECTIONS OF UP TO 21.4 g/t Au over 6.2 METRES and 16.86 g/t Au over 5.7 METRES

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion") is pleased to announce new drill results for the area just south of the Tabakoto Pit. This area hosts the Tabakoto South Trend northeast-trending cross structures (see Figure) that combined have been traced for 450 metres along strike and to 250 metres depth. Intercept highlights include the following:

  • 9.09 g/t Au over 8.0 metres
  • 17.86 g/t Au over 2.4 metres
  • 21.4 g/t Au over 6.2 metres
  • 16.86 g/t Au over 5.7 metres
  • 80.86 g/t Au over 2.3 metres

The Tabakoto South Trend lies approximately 260 metres southeast, and is parallel to the NE1 zone described in Avion's News release dated September 9th, 2010. Within this trend, two coherent, partially overlapping zones of higher grade mineralization have been identified: the Tabakoto South and Dabo zones (see figures). A summary of drill hole intercepts are presented in a table at the end of this release.

The Tabakoto South zone, was tested with fourteen holes in 2010 and has been traced for approximately 300 metres along strike, to 275 metres below surface and is open to depth (see Figure). This year's program has demonstrated that higher grade portions of the zone are predictable along a moderate to steep east plunge and that the zone is open down plunge. Two of the deepest holes returned intercepts of 16.86 g/t Au over 5.7 metres and 5.06 g/t Au over 5.6 metres. 

The Dabo zone has been traced for approximately 250 metres along strike, to 250 metres depth and is open down plunge below the deepest hole which returned 11.83 g/t Au over 9.2 metres. Drilling to extend this zone down dip and along strike to the west did not extend the zone.

The Tabakoto South and Dabo zones lie along a four kilometre long northerly trend that is cut by both northeast- and northwest-trending cross structures that often host high grade gold mineralization. These structures are the focus of Avion's Tabakoto pit area exploration plans and underground mine development at Tabakoto. Exploration in 2010 has focused drilling on seven of these cross-structures, in the immediate Tabakoto pit area. Two additional cross structures are highlighted in this release.

Subsequent exploration updates on the remaining two major cross-structures are planned once the drilling is completed and the results are available. Future Tabakoto area exploration will continue to focus on systematically defining the known cross structures and tracing them along strike and down plunge.

Drilling also intersected several other cross structures with an intercept of 6.8 g/t Au over 4.0 metres in hole T-10-36 and a fourth zone near the top of the hole T-10-47 where an intercept of 1.89 g/t Au over 5.7 metres was returned. Drilling will be required in order to determine the strike extent of these mineralized intercepts.

John Begeman, Avion's President and CEO, stated: "As expected, the cross structures continue to return exceptional drill results and demonstrate that the mineralized system is still open to depth and that the potential for the discovery of new zones is high. Avion's management believes that continued exploration will continue to turn up new structures that can potentially add to our ability to increase our overall resources."

In 2010 Avion has completed over 440 core and reverse circulation drill holes totaling approximately 53,300 metres of drilling, at its Tabakoto and Hounde properties. This work has focused predominantly on the Dioulafoundou, Tabakoto, Djambaye II, Ségala and Vindaloo areas. Drilling will recommence on the Houndé property, Burkina Faso, which Avion is in the process of acquiring (See News Release dated July 5, 2010), in October, 2010 with approximately 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).

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

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 to be between 75,000 and 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 Tabakoto South Area Intercepts

Hole From (m) To (m) Core Length (m) True Width (m) Au g/t Capped 32 g/t Au Zone
T-10-25 4.5 5.2 0.7 0.4 23.5 23.5 Tabakoto South
T-10-26 245.1 247 1.9 1.4 3.17 3.17 Tabakoto South
T-10-26 264.5 266 1.5   0.86 0.86  
T-10-27 130.3 138.3 8.0 5.0 9.09 8.43 Tabakoto South
T-10-28 129.6 132 2.4 1.8 17.87 17.87 Tabakoto South
T-10-29 125.3 126.8 1.5   2.42 2.42  
T-10-29 130.0 132.5 2.5 2 18.51 17.21 Tabakoto South
T-10-29 182.2 183.5 1.3   2.7 2.7  
T-10-29       NV     Dabo
T-10-35 161.3 167.5 6.2 4.0 21.4 21.32 Tabakoto South
T-10-36 154.0 158 5.6 3.5 5.06 5.06 New Zone 1
T-10-36 287.6 288.1 0.6   3.55 3.55  
T-10-36 298.4 299.4 1.0   6.21 6.21  
T-10-36 303.4 309 5.6 3.5 5.06 5.06 Tabakoto South
T-10-37 88.8 90.3 1.5   1.46 1.46  
T-10-37 123.5 125.8 2.2   2.41 2.41  
T-10-37 265.5 271.15 5.65 3.3 16.86 16.19 Tabakoto South
T-10-38 165.5 167.5 2.0   2.83 2.83  
T-10-38 240.0 242.5 2.5   1.03 1.01  
T-10-38 261.1 261.6 0.5 0.3 18.8 18.8 Tabakoto South
T-10-38 275.8 276.9 1.1   1.67 1.67  
T-10-39 16.5 17.9 1.4   1.08 1.08  
T-10-39 92.9 94.9 2.0   2.53 2.00  
T-10-39 207.0 209 2.0 1.2 4.94 4.94 Tabakoto South
T-10-40 149.7 150.3 0.6   1.23 1.23  
T-10-40 152.9 153.4 0.5 0.3 2.21 2.21 Tabakoto South
T-10-41 48.3 49.25 0.95   1.09 1.09  
T-10-41 99.8 110 10.2   0.38 0.38  
T-10-41 123.0 125 2.0   0.55 0.55  
T-10-41 125.0 127.3 2.3 1.8 80.86 12.79 Tabakoto South
T-10-42 219.8 220.6 0.8   4.62 4.62  
T-10-42 242 243.9 1.9 1.5 2.7 2.70 Tabakoto South
T-10-42 280.5 282.2 1.7   4.77 4.77  
T-10-43 124.0 125.25 1.25   1.7 1.70  
T-10-43       NV   Tabakoto South
T-10-47 46.0 51.7 5.7   1.89 1.89 New Zone 2
T-10-47       NV     Dabo
T-10-48       NV     Dabo

To view Fig. 1, please visit the following link: http://media3.marketwire.com/docs/Fig_1_Tabakoto_Location_Map.pdf

To view Fig. 2, please visit the following link: http://media3.marketwire.com/docs/Fig_2_South_Dabo_Zone_Location_Map.pdf

To view Fig. 3, please visit the following link: http://media3.marketwire.com/docs/Fig_3_Tabakoto_South_Zone_NR_Long_Section.pdf

To view Fig. 4, please visit the following link: http://media3.marketwire.com/docs/Fig_4_Tabakoto_Dabo_Zone_NR_Long_Section.pdf


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