Avion Gold Corporation

Avion Gold Corporation

December 06, 2010 08:00 ET

Avion Gold Produces Over 7,800 Ounces in November 2010, and 78,500 Ounces for the Eleven Months Ended November 2010

Company Is on Target to Meet Its Stated Goal to Produce 85,000 Ounces for the Year

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion" or the "Company") announces November 2010 monthly production of approximately 7,827 ounces of gold from its Tabakoto/Ségala operations in Mali, West Africa. Year to date gold production for 2010 is approximately 78,490 ounces.

In November 2010, Avion processed 55,500 tonnes of ore at an average grade of 4.50 g/t Au, with a 97.5% mill recovery, for gold production of 7,827 ounces. Management continues to expect the fourth quarter production target of 20,000 ounces of gold will be exceeded, and to finish the year at the upper end of its production guidance at +85,000 ounces of gold.

Mr. Andrew Bradfield, Avion's Chief Operating Officer, commented: "Gold production since last June has been over 7,200 ounces per month, and the Company expects this to continue in December, which will yield a 2010 total gold production of at least 85,000 ounces."

A year-to-date total of 305,000 tonnes of waste material has been mined at the Dioulafoundou deposit, located 3.8 kilometres from the Tabakoto process plant. The Dioulafoundou deposit has open pit Indicated Mineral Resources of 502,000 tonnes grading 5.16 g/t Au totaling 83,400 ounces of gold, and open pit Inferred Mineral Resources of 105,000 tonnes grading 5.92 g/t Au totaling 19,900 ounces of gold (Avion news release July 14, 2010). Management expects that mill feed in 2011 will come primarily from this deposit as the Company transitions from open pit mining at Segala to underground mining at the Tabakoto and Segala deposits. Mining at Dioulafoundou in November has progressed from alluvium/laterite to saprolite material. The upper portion of the mineralization is hosted in saprolite, and the Company expects to commence transporting ore to the process plant in December 2010.

Underground mine development of the Tabakoto deposit is well established. Both the North and South access drifts have been advanced approximately 141 metres each, for total development of 282 metres. Two headings were developed in each access in November, which will lead to faster advance in the future.

Engineering work on the EPCM contract to double the process plant capacity continues on schedule. Management expects that an agreement on the purchase of a SAG and ball mill will be announced in December 2010.

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 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 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. The Company is developing an underground mine at the Tabakoto deposit, and is preparing to mine underground at the Ségala deposit. 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.


Contact Information