Avion Gold Corporation

Avion Gold Corporation

July 09, 2009 07:30 ET

Avion Intersects 5.37 g/t Gold Over 20.9 Metres At Segala Mine, Mali

TORONTO, ONTARIO--(Marketwire - July 9, 2009) - Avion Gold Corporation ("Avion Gold" or "the Company") (TSX VENTURE:AVR), today announced the results for the first two of five holes drilled to test the Segala Main zone at depth to support the planning for underground development of the Segala Deposit.

Hole S-09-01A intersected 3.62 g/t Au (3.35 g/t Au capped) over 26.9 metres core length (approximately 17.9 metres true width) approximately 330 metres from surface; this intercept includes a higher grade core that returned 5.12 g/t Au (4.68 g/t Au capped) over 15.95 m core length (10.7 metres true width). Hole S-09-02, located 160 metres to the east, returned 5.37 g/t Au (no capping required) over 20.89 m core length (approximately 18.0 metres true width) approximately 320 metres below surface. Both holes tested an area of the Segala Main Deposit that, from a resource study announced on December 12, 2008, contains an inferred mineral resource. Both of these holes extend the higher grade mineralization to depth where the ore resource model had indicated lower grades. In the case of hole S-09-01A the block model predicted a grade of 2.50 g/t Au. For hole S-09-02 the block model predicted grades ranging from 3.00 to 4.00 g/t Au.

Avion's exploration program is progressing with two core drills and one RC drill. To the end of June approximately 5,871 metres of drilling in 29 holes have been completed. A minimum of 15,000 metres of core drilling is planned. The drill program is designed to both increase the confidence in existing resources and to discover new mineralized zones. The initial part of the drill program has focused on the Segala Main and Dar Salam South zones where drill information was required for mine planning. The next series of holes will test exploration targets near the boundaries of the property package before the rainy season affects access to those areas.

"We believe that these two holes reward our belief that the Segala Main zone exhibits good depth continuity and as such further supports extending the mine life at Segala and expanding the processing facilities" commented John Begeman, President and CEO.

Studies to support a capacity upgrade to 200,000 ounces per year are in progress with grinding studies, preliminary mill expansion and open pit versus underground mining studies underway. This work is being completed by both consultants and company staff and is expected to be completed before year-end.

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. Avion Gold Corporation has not completed a feasibility study on the Mali gold projects. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Avion's procedures for handling drill core comprise initial description and logging into a Microsoft Access database. Mineralized and suspected mineralized intervals in the holes are described in detail and marked for sampling. Core is then cut in half with the right-hand portion of the core put into plastic sample bags and sealed. Assay standard samples are inserted every 20th sample and split core from every 20th sample is also quartered and sent in as a separate sample to double check the assays from these intervals. This sampling procedure was initiated and periodically reviewed by Avion's Senior Vice President of Exploration, Don Dudek. These samples were then delivered to a representative of SGS Mineral Service based in Kayes, Mali. The assay samples are then crushed to 2 mm with riffle split if required to 1.5 kg, the entire sample milled in a LM2 mill to a nominal 95% passing 75 micrometers. All the preparation equipment is flushed with barren material prior to the commencement of the job. Gold values were determined by Fire Assay and AAS with a 50 gram nominal sample weight. In order to ensure that local, exceptionally high grade assays are not overly represented in assay composites Avion is also presenting assay composites with high grade samples capped at 27.5 g/t Au, which is the capping level deemed appropriate for the Segala Main Deposit (Avion December 12th, 2008 news release).

About Avion Gold Corporation

Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, and Avion is reviewing its management projection of approximately 66,000 ounces of production during 2009 at an estimated cash cost of US$505. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Cautionary Notes

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 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.

Should you wish to receive Company news via email, please email info@avionresources.com and specify "AVR News" in the subject line.


Contact Information