Avion Gold Corporation

Avion Gold Corporation

October 05, 2010 08:00 ET

Avion Gold Produces 23,600 Ounces in Third Quarter of 2010 and Is on Target to Produce 75,000 to 85,000 Ounces This Year

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion" or the "Company") announces third quarter 2010 production of approximately 23,609 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa. This is an 89% increase in gold production over the third quarter of 2009, when 12,517 ounces of gold was produced, and a 6% increase in production over Q2 2010 where 22,222 ounces of gold was produced. Year to date gold production for 2010 is 61,540 ounces.

In September 2010, Avion processed 61,450 tonnes of ore at an average grade of 3.98 g/t Au, with a 97.2% mill recovery, for gold production of 7,603 ounces. During the third quarter of 2010 the Company milled 178,800 tonnes of ore at an average grade of 4.28 g/t Au, with a 96.2% mill recovery, compared to third quarter of 2009 production of 125,100 tonnes of ore processed at an average grade of 3.25 g/t Au, with a 95.5% mill recovery.

Commenting on the production results, Mr. Andrew Bradfield, Avion's Chief Operating Officer, stated: "Avion has produced over 21,000 ounces of gold per quarter since the beginning of the fourth quarter of 2009, with the exception of the first quarter of 2010. Consistent operational results are being achieved, and the Company is well on track to produce its target of between 75,000 and 85,000 ounces of gold in 2010. Avion is optimistic that it will produce at least 20,000 ounces in Q4 this year."

Substantial advancement was achieved during the third quarter towards the Company's plan to begin underground development at the Tabakoto deposit, and to double its process plant capacity. Avion's underground mine contractor is on site and detailed design work for the plant upgrade is in progress. These projects continued on schedule according to Avion's goal of achieving an annual run rate of 200,000 ounces of gold in 2012.

Avion plans to release its unaudited Q3 Financial Results on November 24, 2010. Management will also host a conference call for investors following public release of the results.

About Avion Gold Corporation

Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Segala 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 Hounde 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 Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.

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 and timing of the forecast production and 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.


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