Avion Gold Corporation
TSX VENTURE : AVR

Avion Gold Corporation

August 15, 2008 11:50 ET

Avion Resources Corp. Provides Segala and Tabakoto Progress Report

Drilling confirms wide zones of gold mineralization at Segala

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2008) - Avion Resources Corp. (TSX VENTURE:AVR) ("Avion"), 80% owner of the Tabakoto and Segala gold projects located in Mali, West Africa, today announces the results from its ongoing 15,000+ m drill program.

Avion has completed 44 holes totaling approximately 8,300 metres as of August 14th, 2008. Drilling has focused on testing targets nearby to the previously defined Segala zone and in-fill drilling within the Segala zone. Results have been returned for six of the 21 holes drilled in the Segala area. Hole S-08-05 in the Segala deposit returned 28.8 metres (approximately 20 metres true width) grading 2.93 g/t Au and hole S-08-07 returned 27.0 metres (approximately 21.5 metres true width) grading 2.96 g/t Au (see table). In addition, wide zones of lower grade mineralization flank the central core of well mineralized rock with 12.0 metres true width grading 0.57 g/t Au above the intercept in hole S-08-07 and 27.5 metres true width grading 0.60 g/t Au below the intercept in hole S-08-07. In total the mineralized intercept in hole S-08-07 returned 1.39 g/t Au over an approximate true width of 63.3 metres. The wide zone of gold mineralization confirms the robust nature of the Segala mineralized system and demonstrates potential to further expand the project's resources. Four other holes on the northwest flank of the Segala zone returned up to 7.23 g/t Au over 10.5 metres (intercept influenced by an intercept of 48.1 g/t over 1.5 metres).

As previously stated, Avion's plan for the Tabakoto and Segala projects includes the execution of a drill program followed by an updated resource estimate for both the Tabakoto and Segala open-pit targets which we plan to have prepared in the fourth quarter of 2008. Avion expects the resource to provide the base for a new mine plan and feasibility study, designed to facilitate re-commencement of the previously producing Tabakoto gold mine project in the second half of 2009. One drill is now dedicated to testing previously identified and inferred, well mineralized structures, that pass through the Tabakoto pit envelope. To date 27 holes totaling 3,400 metres have been designed to confirm and extend these mineralized structures.

In conjunction with the drilling, the following initiatives are in progress:

- Detailed mapping of the Tabakoto pit area,

- Channel sampling of the exposed mineralization in the Tabakoto pit,

- Confirmation of grade of the ROM pad stockpiles (internal report by Nevsun
Resources Ltd. ("Nevsun") indicated 8,000 tonnes grading 2.5 g/t Au, 8,000 tonnes grading 1.8 g/t Au, 400,000 tonnes grading 1.5 g/t Au and 400,000 tonnes grading 0.8 g/t Au);

- Grid sampling of the tailings pond fines (Nevsun mill reconciliation reports indicate that this material could grade 0.5 g/t Au); and

- Property scale geological, geophysical and geochemical compilation.

"Avion's initial exploration work reinforces management's belief that the value of the Tabakoto and Segala assets will be fully realized as the exploration program continues. With the drilling advancing rapidly, Avion is on track to update the gold resources in the latter half of this year," commented Rene Bharti, President and CEO of Avion Resources Corp.



Table of Segala Significant Results
---------------------------------------------------------------------------
From To Width True Comment
Hole (metres) (metres) (metres) Au g/t Width
---------------------------------------------------------------------------
75 m NW of
S-08-01 88.5 100.5 10.5 1.41 proposed Segala pit
---------------------------------------------------------------------------
S-08-02 40.5 42.0 1.5 1.60 NW edge of
------------------------------------------------------- proposed Segala pit
74.5 76.0 1.5 1.50
-------------------------------------------------------
83.5 91.0 7.5 0.78
---------------------------------------------------------------------------
Test Segala FW
zone at NW edge of
S-08-03 122.0 147.5 25.5 0.61 proposed Segala pit
---------------------------------------------------------------------------
S-08-04 127.0 137.5 10.5 7.23 Test gap in Segala
------------------------------------------------------- zone drilling near
incl. 130.0 131.5 1.5 48.10 based on proposed
------------------------------------------------------- Segala pit
148.0 167.5 19.5 0.74
-------------------------------------------------------
incl. 154.0 160.0 6.0 1.29
-------------------------------------------------------
188.5 197.5 9.0 1.78
-------------------------------------------------------
214.0 215.5 1.5 12.50
---------------------------------------------------------------------------
S-08-05 69.5 71.0 4.4 1.50 Gap in lower limit
------------------------------------------------------- of proposed Segala
174.5 203.0 28.8 2.93 20.0 pit
-------------------------------------------------------
incl. 186.5 192.5 6.0 6.67
-------------------------------------------------------
213.5 239.0 25.5 0.65
---------------------------------------------------------------------------
S-08-07 206.5 221.5 15.0 0.57 12.0 Test a gap within
------------------------------------------------------- the proposed
221.5 248.5 27.0 2.96 21.5 Segala pit
-------------------------------------------------------
incl. 235.0 241.0 6.0 6.64
-------------------------------------------------------
251.5 286.0 34.5 0.60 27.5
---------------------------------------------------------------------------


Review of Tabakoto and Segala Projects

Avion completed a core assay review of work previous drill core generated the Tabakoto and Segala properties. Avion re-sampled select mineralized intercepts to verify the previous gold assays, to focus on the controls for the gold mineralization and to better understand assay variability. As part of this study core from 16 drill holes representing 179 samples (including certified assay standard samples) were quarter-cut and sent to the laboratory for analyses. Note that the results for four holes (T-104, -199, -212, -213) from the Dabo zone were reported in a previous news release. From this re-sampling work it is evident that there is a high degree of variability in assays above approximately 2 g/t Au. This variability is likely due to variable amounts of coarse gold in the core samples, or as commonly known, the nugget effect.

Additional observations from this review include that narrow, variably oriented quartz-sulphide stringers contain a significant amount of gold and have in the past been both over and under-represented in reserve calculations. The styles of gold mineralization at the Diolafoundou (holes with D designation) and Segala zones are unique and significantly different in character than the Tabakoto zone thus indicating at least three different mineralizing processes/controls on the property package. This potentially increases the likelihood for the discovery of additional zones of gold mineralization.

A summary of the re-sampling and previous results is listed in the following table. A description of the assay and sampling procedures follows at the end of this release.



--------------------------------------------------------------------
Historic Avion
--------------------------------------------------------------------
Hole From To Width assay assay
--------------------------------------------------------------------
(metres) (metres) (m) g/t Au g/t Au
--------------------------------------------------------------------
T-104(i) 336.0 346.0 10.0 1.95 2.06
--------------------------------------------------------------------
T-115 247.6 269.0 21.4 23.07 16.91
--------------------------------------------------------------------
277.7 284.0 6.3 8.41 36.12
--------------------------------------------------------------------
T-161 136.0 151.0 15.0 9.89 5.99
--------------------------------------------------------------------
95.5 107.8 12.3 128.43 11.80
--------------------------------------------------------------------
T-195 157.5 181.0 23.5 12.00 11.67
--------------------------------------------------------------------
T-199 235.7 241.0 5.3 6.51 11.18
--------------------------------------------------------------------
T-212 142.4 146.4 4.0 3.82 2.72
--------------------------------------------------------------------
T-213 177.1 179.5 2.4 5.39 13.85
--------------------------------------------------------------------
D-04 131.5 143.5 12.0 7.35 11.05
--------------------------------------------------------------------
D-07 97.0 103.0 6.0 4.87 6.19
--------------------------------------------------------------------
D-09 130.1 146.5 16.4 1.07 1.15
--------------------------------------------------------------------
D-10 49.0 58.0 9.0 4.20 3.44
--------------------------------------------------------------------
D-12 85.0 91.0 6.0 11.03 8.01
--------------------------------------------------------------------
D-14 52.0 59.5 7.5 5.79 0.64
--------------------------------------------------------------------
D-16 64.0 80.5 16.5 0.92 0.96
--------------------------------------------------------------------
D-22 125.5 134.5 9.0 21.59 14.90
--------------------------------------------------------------------
D-23 148.0 163.3 15.3 0.98 0.80
--------------------------------------------------------------------
(i) Core was quartered and re-sampled by Nevsun with assays averaged.


Mineralized intervals in the holes reported above were examined and previous sample intervals were re-established and marked for sampling. Previously split core was quartered with the right-hand portion of the core put into plastic sample bags and sealed. Those portions of the core, previously quartered were not re-sampled. This sampling was carried out under the supervision of Avion's Senior Vice President of Exploration, Don Dudek. These samples and split core samples from current drilling were then delivered to a representative of ALS Chemex in Bamako. The samples were fine-crushed to better than 70% passing a -2mm screen, with a split of up to 250 grams and pulverize split to better than 85% passing 75 micron screen. To reduce contamination, since most of the historic core samples were expected to contain material amounts of gold, barren sand washes were run through the crusher between samples. Gold values were determined by Fire Assay and AAS with a 50 gram nominal sample weight.

"The drill program is advancing quickly with over 16,000 metres of drill targets selected out of approximately 20,000 metres planned" stated Mr. Dudek. "Boart Longyear, the drill contractor, has further increased the drilling rate with 1,400 metres of core produced per week from the two drills. Avion's pit mapping and sampling will provide a strong base from which to re-interpret the mineralized zones and provide the foundation for an updated resource report later in the fall."

Tabakoto and Segala Projects History

Nevsun, the former owner of the Tabakoto and Segala projects, published a NI 43-101 compliant mineral resource estimate for the Mali Projects. Based on these estimates and their feasibility mine production plan, Nevsun commenced mining operations at Tabakoto expecting 3.36 million tonnes of ore (assuming a gold price of $350/oz) would be processed at a rate of 650,000 tonnes per year, with a grade of 5.26 g/t of gold, to a depth of 210 metres at a 2.0 g/t gold cut-off grade. In addition, Segala was to contribute 3.98 million tonnes grading 2.99 g/t Au yielding 382,505 oz Au to the mill after mining at Tabakoto was completed. According to the plan, the Tabakoto mine was expected to yield approximately 567,544 ounces of gold at an average waste-to-ore ratio of 15.4:1 with ore and waste totaling 52 million tonnes. During production, Nevsun recovered approximately 100,000 ounces of gold at an average grade of 3.41 g/t of gold, representing an approximate 35% shortfall in expected ore grades at Tabakoto. In March 2007, Nevsun management concluded that in accordance with industry practice, a provision was required for impairment of the entire value of the Tabakoto property of $81,373,865. In September 2007, Nevsun announced that the Tabakoto Mine would be placed on care and maintenance. Stockpile ores were processed during the following two months and Nevsun completed the sale process for the Mali Projects to Avion on May 20, 2008.

Don Dudek, P.Geo. Avion's Senior VP Exploration is the Qualified Person for this news release as defined under National Instrument 43-101 and is responsible for the technical and scientific work carried out in this program and has reviewed and approved the information presented in this release.

About Avion Resources Corp.

Avion Resources is a Canadian-based exploration and development company focused on strategic acquisitions in Africa. Avion has a team of highly qualified geologists, as well as a strong operational team that is exploring various properties in the previously mentioned region. Avion currently holds 80% of the Tabakoto gold mine and the Segala gold deposit in Mali, and 100% of an exploration project in Ethiopia that has a total land position of 4,400 square kilometers.

Cautionary Notes

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, the prospective mineralization of the properties, planned exploration programs, anticipated production schedule and terms, availability and likelihood of future acquisitions, and the prospective nature of the Tabakoto and Segala projects. 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; reliance on contractors; the actual results of current exploration activities; ability to successfully integrate the purchased properties; foreign operations risks; and other risks of the mining industry. 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.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information