Avion Gold Corporation

Avion Gold Corporation

November 28, 2007 08:00 ET

Avion Resources Purchases Ethiopian Exploration Assets from Aberdeen International

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) - Avion Resources Corp. ("Avion Resources" or "the Company") (TSX VENTURE:AVR) has agreed to purchase exploration assets in the North and West regions of Ethiopia from Aberdeen International Inc. (TSX VENTURE:AAB). Avion has purchased the rights to a 100% undivided interest in exploration licenses in Ethiopia. The area covers approximately 2,674 km2 in the Northern Regional State of Tigray and 1,766 km2 in the Western regional State of Asosa.

Terms of the Agreement

Avion has agreed to purchase the exploration licences in consideration of:

I. $250,000 upon receipt of regulatory approval for the transaction;

II. $750,000 on or before June 30, 2008;

III. $1,000,000 on or before December 31, 2008;

IV. A Retained 1.5% Net Smelter Royalty in respect of the exploration licenses;

V. 1,500,000 Avion share purchase warrants, each of which will entitle Aberdeen to acquire one Avion common share at a price of $0.44 for a period 18 months following issue; and

VI. Assumption of Aberdeen's obligations to Ethio-Gibe Canada Mining PLC, which is the company that assisted Aberdeen in the acquisition of its properties in Ethiopia.

The payments set out above shall be made in cash, or common shares of Avion upon the mutual agreement of both parties, with any common shares to be issued at a price equal to the 30-day volume weighted average trading price for Avion common shares on the TSX Venture Exchange.

Rene Bharti, CEO of Avion Resources, stated, "The purchase of the exploration licences in Northern and Western Ethiopia is an exciting opportunity for Avion. The initial exploration program has yielded some very promising targets that our team will focus on immediately. The purchase of the licences allows Avion to gain a foothold in a very promising and underdeveloped mining region of Africa."

The following summarizes the exploration work that has been conducted on the Ethopian properties.

Phase 1 Exploration Program

The aim of Phase 1 was to identify and acquire the most prospective base and precious metal properties within Ethiopia and target specific regions within the properties and the country as a whole, for continuing exploration programs. The low-grade metamorphic volcano-sedimentary belts of the Arabian-Nubian Shield in Ethiopia are known hosts to orogenic gold and volcanogenic massive sulphide (VMS) deposits both within the country (Lega Dembi gold deposit, southern Ethiopia) and in surrounding countries (Asmara and Bisha VMS deposits, Eritrea).

The Phase 1 Program was completed between March and August 2007 and involved data compilation and targeting, geological evaluation (satellite imagery), property acquisition, geological mapping and sampling, and airborne geophysical surveys (heliborne magnetic-radiometric-electromagnetic surveys). Caracle Creek International Consulting Inc. ("CCIC"), a Canadian-based independent consulting company, was retained to complete the Phase 1 exploration programs.

Phase I Exploration

The first phase of exploration focused on assessing the most prospective portions of the potentially mineralized belts and acquiring substantial claims within those regions. Despite the well known distribution of greenstone belts in Ethiopia, these regions are highly under-explored with relatively little western-style exploration. The original claims, secured in 2006, consisted of 2 blocks in the north (2,764 km2) and 5 blocks in the west (1,766 km2). Subsequent to Phase I refinement and claim acquisition, the claim holdings now cover 4,440 km2.

Following the property evaluation, Aeroquest International was contracted to fly a minimum 5,000 line kilometre heliborne magnetic-radiometric survey and a 2,000 line kilometre electromagnetic (EM) survey over selected portions of the properties. Satellite image interpretation for the purposes of identifying and targeting alteration patterns was also contracted.

The Northern Blocks

The northern blocks covered a large prospective area of the Tigrayan Greenstone Belt, following a regional trend southeast of the Eritrean Kuroko-style, high-grade gold, copper, zinc, silver and VMS deposits near Asmara, Eritrea (Sunridge Gold). Additional prospective claim blocks were acquired along this trend, resulting in an area of 2,674 km2 of holdings in the north.

The preliminary field exploration program was successful in identifying interlayered mafic- felsic volcanic rocks and sedimentary rocks in the northern greenstone units. Features such as this are characteristic of VMS style mineralization elsewhere in the region. Grab samples were collected and assay results are pending.

Satellite image interpretation was contracted to cover the areas of the original properties. The interpretation focussed on the identification of alteration patterns in order to isolate prospective geology. The data shows good correlation with regional structures and known occurrences of mineralization.

A combination of magnetic-radiometric (1,707 line km) and EM (1,963 line km) surveys were flown over the northern properties. The airborne surveys, in conjunction with geological information and satellite interpretation, were successful in identifying twelve priority targets for either gold, VMS or nickel sulphides, forming the basis for a Phase II ground follow-up exploration program.

Western Area Blocks

The western properties occupy a key area within a known gold-hosting region. Historical records indicate that the belt is prospective for orogenic gold with more than ten known occurrences in the immediate area. Field visits identified a new occurrence, with visible traces of gold hosted within extensive quartz veins that crosscut the schist of the Agusha-Gumu block. Samples from the vein system were submitted for assay and results are pending.

Satellite image interpretation was contracted to cover the western properties focusing on identification of alteration patterns to isolate prospective geology. This interpretation was integrated with the airborne data and geological information to identify priority targets.

The magnetic-radiometric survey in the west totaled 3,436 line kilometres and covered more than 60% of the property. The survey results, in conjunction with the geological information and satellite interpretation, were successful in identifying at least 17 priority gold target areas. One of the most prospective target areas is believed to be a large intrusion, identified in the magnetic survey, which may represent the subsurface continuation of two small intrusive bodies with known historic gold occurrences.

Phase II Exploration

Avion plans to execute an aggressive field-focused and step-wise follow-up program of exploration (Phase II) to evaluate the priority targets identified through the integrated surveys completed in Phase I. Follow-up programs will involve detailed structural and geological mapping, extensive geochemical sampling and targeted prospecting. The first program is scheduled for the period of November-December 2007. This six to eight week field program will focus on the priority target areas identified from the integrated targeting of the Northern Property. A similar follow-up program for the Western Property is scheduled to begin in January 2008.

The proposed budget for Phase II follow-up of the Northern Property targets is approximately CAD$700,000.

This press release has been reviewed and approved by Scott Jobin-Bevans, Ph.D., P.Geo., an independent consultant and Qualified Person pursuant to National Instrument 43-101, working with Caracle Creek International Consulting Inc., based in Sudbury, Ontario.

To view the accompanying map please visit the following link:


About Avion Resources Corp.

Avion Resources is a Canadian-based exploration and development company focused on strategic acquisitions within Africa & Canada. Avion possess a team of highly qualified geologists as well as a strong operational team that is exploring various properties in the previously mentioned regions. Avion currently has an exploration project in Canada: Iron Lake copper, gold, nickel, PGM property, located 45 kilometres northeast of 100 Mile House in central British Columbia. Avion has approximately 14 million shares outstanding and trades on the TSX Venture Exchange under the symbol AVR.

Cautionary Notes

With respect to all statements herein relating to Aberdeen and the historical work conducted on the exploration licences, Avion has relied solely upon the management of Aberdeen.

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 to be acquired, the terms of acquisition, and the impact of the acquisition on Avion. 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; acquisition 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.

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