Avion Gold Corporation
TSX : AVR
OTCQX : AVGCF

Avion Gold Corporation

October 11, 2011 07:00 ET

Avion's Kofi C Zone Returns Further High Grade Intercepts, Mali, West Africa

3.39 g/t Au over 77.4 metres

3.51 g/t Au over 53.7 metres

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the 'Company') is pleased to announce the results from 45 drill holes totaling 9,367 metres completed over the Kofi Project during the third quarter of 2011. Drilling was focused in and proximal to the Kofi C zone which contains an historic National Instrument 43-101 ("NI 43-101") estimated indicated mineral resource of 873,000 tonnes grading 3.6 g/t Au totaling 99,000 ounces of gold and an inferred mineral resource of 913,000 tonnes at 3.7 g/t Au totaling 109,000 ounces gold (Roberts1, 2008, NI 43-101 compliant resource report, available under the SEDAR profile of AXMIN Inc.). Note that a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Avion and therefore Avion is not treating the historical estimate as current mineral resources. Avion intends to update the resources for the Kofi project in late Q4, 2011.

Significant results include the following:

  • 3.39 g/t Au over 77.4 metres
  • 3.51 g/t Au over 53.7 metres
  • 2.68 g/t Au over 64.3 metres
  • 1.68 g/t Au over 33.0 metres
  • 5.00 g/t Au over 20.0 metres
  • 2.38 g/t Au over 75.0 metres
  • 4.87 g/t Au over 15.0 metres
  • 3.19 g/t Au over 16.2 metres
  • 14.36 g/t Au over 6.0 metres
  • 27.75 g/t Au over 5.0 metres

The Kofi C zone lies within an at least 40 kilometre long by 5 kilometre wide, north-northeast trending structural corridor that contains at least nineteen deposits and zones that have been discovered, fifteen of which are on the adjacent Randgold property (see Figure 1). A clear break, defined by the airborne geophysical conductivity data, suggests that this trend continues onto the Kofi property for at least 19 kilometres.

Avion's 2011 Kofi C zone drill program was designed to better define mineralization continuity and to test for extensions of the known zones. To date, Avion has completed 52 holes totaling approximately 10,738 metres at the Kofi C zone and expects to continue drill testing the Kofi project until mid-December. Drilling at the Kofi C zone area has defined 10 mineralized zones over a 700 metre by 200 metre area to a maximum depth of 180 metres. This area has been subject to intense alteration, dyke emplacement and faulting, which complicates geological interpretation. A summary of current intercepts and their associated zone designations are appended to this release. A map that presents the approximate location of the drill intercepts, relative to a surface plan of the color contoured induced polarization, is presented in Figure 2.

Don Dudek, Avion's Senior Vice President, Exploration stated: "The Kofi C zone area has returned exceptional grades and widths and as we collect drill information we have gained more confidence in our geological models and in Avion's ability to trace the mineralized zones along strike. As a result, management believes that Avion will be able to increase the confidence levels of the historic resources and add additional mineral resources."

The Kofi property is a large, approximately 470 km², property package situated, at its nearest point, within approximately five kilometres to the northwest of Avion's Tabakoto Project. The Kofi property wraps around the north side of Randgold's Loulo Mine concessions (Historic Measured and Indicated mineral resources of 62.69 million tonnes grading 4.55 g/t Au - see Figure 1).

The Kofi property contains nine mineralized zones with identified mineral resources. All of the estimated mineral resources lie in the Kofi Nord concession of which Avion's holds a 93.75% interest with 6.25% held by Société Financière d'Exploration d'Or au Mali. These interests are prior to a carried interest of up to 20% due to the Government of Mali upon commencement of production. Therefore, Indicated mineral resources of 274,687 ounces and Inferred mineral resources of 345,000 ounces are currently credited to Avion. Total estimated Indicated Mineral Resources are approximately 3.24 million tonnes grading 2.55 g/t Au totaling 293,000 ounces Au (Roberts1, 2008, NI 43-101 compliant report). In addition, the Kofi property hosts total Inferred Mineral Resources of approximately 5.26 million tonnes grading 2.18 g/t Au totaling 368,000 ounces of gold (Dec. 11, 2007 AXMIN news release, Roberts1, 2008 NI 43-101 compliant report). Note that a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Avion and therefore Avion is not treating the historical estimate as current mineral resources. Avion intends to update the resources for the Kofi project in late Q4, 2011. Most of the zones are open along strike and to depth with zones only tested from 60 to 200 metres below surface. All of the zones are within 15 to 38 kilometers of Tabakoto's mine infrastructure, potentially placing these zones, including the estimated mineral resources, within trucking distance to the Tabakoto mill.

Avion will continue to compile the project data, develop target models and define new drill targets for the remainder of 2011's approximate 20,000 metre drill program and prepare for an aggressive drill program in 2012. Work in 2011 has concentrated on the Betea Central and Kofi C zones. It is anticipated that during the fourth quarter of 2011, drill testing of some of the other zones as well as a few conceptual targets, will be carried out.

Avion's procedures for handling core have been presented in previous news releases (See for e.g. Avion's News Release dated May 13, 2010). Assays presented in the attached table have been capped at 25 g/t to 40 g/t Au.

Avion's 2011 minimum 75,000 metre drill focused, US$ 16 million exploration program is well underway with 405 core and reverse circulation ('RC') holes totaling approximately 64,000 metres of drilling completed. Drilling completed to date consists of approximately 34,500 metres on Avion's Mali projects (Tabakoto and Kofi) and 27,600 metres on Avion's Burkina Faso property (Houndé) with a core drill rig active on the Kofi property and two core rigs active on the Houndé property. Two additional core drill rigs and an RC rig are now active at the Tabakoto property. The core rigs will focus on upgrading Inferred mineral resources to Measured & Indicated mineral resources and the testing of new targets east and west of the Segala Main deposit and north of the Tabakoto deposit. The RC rig will focus on the conversion of open pit Inferred mineral resources to open pit Measured & Indicated mineral resources at Avion's Djambaye II zone, which will be subject to open pit mine development later in 2011.

Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101 has reviewed and approved the scientific and technical information in this press release.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/fig1kofi.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/fig2zonec.pdf

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 approximately 51,290 ounces produced. 2010 production was 87,630 ounces of gold. Production sustainability will continue to be supported and enhanced by an aggressive 2011 drill program over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. The current mineral resources estimate for the Tabakoto project demonstrates several sources of excellent grade open pit and good grade underground mineral resources thus providing significant flexibility for Avion's future mining plans. On July 5, 2011 Avion announced its initial proven or probable mineral reserve estimate of 7.24 million tonnes grading 3.92 g/t Au totaling 913,100 ounces of gold at the Tabakoto Project. Additionally, the 1,670 km2 Houndé exploration property in Burkina Faso continues to return promising results. These properties are subject to a US$ 16 million dollars, greater than 75,000 metre, drill-focused, exploration program in 2011. Avion continues to progress towards its medium term goal of 200,000 ounces of gold per year and a longer term goal of organic growth through development of its exploration properties. 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.

Cautionary Notes

1 Avion has reviewed Dr. Roberts 2008 report titled 'Mineral Resource Estimation for the Kofi Project, Mali'. This report, as stated, was prepared as per NI 43-101 and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) guidelines. Accepted methodology includes construction of a section set near-perpendicular to the zone trend, the calculation of composites using a statistical Au top-cut, the construction of wire frames using a 0.5 g/t Au cut-off grade, modeling of the saprolite, transition and fresh rock contacts, the collection of a satisfactory amount of specific gravity data and then block modeling the zone using ordinary Kriging with a 1 g/t Au cut-off grade. The distinction between indicated and inferred mineral resources was determined statistically by the available data. Avion accepts this methodology and has completed drilling over both the Betea Central and Kofi C zones that generally confirms the location, the shape and grades of the mineralized zones at the Betea Central zone. However, at this point it is too early to comment on the accuracy of the resource study completed by Roberts so the reader must be cautioned that the stated indicated and inferred mineral resources are only for overall reference and still need to be validated and re-stated by Avion. Stated simply, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserve and Avion is not treating the historical estimate as current mineral resources or mineral reserves.

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 drill results on the Company; statements with respect to the development potential and timetable of the Tabakoto, Kofi and Houndé 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 those 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.

For additional information, please visit our website at www.aviongoldcorp.com. Follow us on Facebook and Twitter: @AvionGoldAVR.

Kofi C zone Area 2011 Significant Intercepts*
Kofi Zone C Gold
Assay Composites
Hole ID From
(m)
To
(m)
Width
(m)
Estimated
*
true width
Grade
(g/t Au)
Capped
**
grade
(g/t Au)
Zone Comment
C-11-0001 26.5 28.0 1.5 1.00 1.00
C-11-0001 129.2 151.0 21.8 20.7 1.35 1.35 CW-D
C-11-0001 193.1 194.1 1.0 1.11 1.11
C-11-0002 19.0 22.0 3.0 2.3 2.37 2.37 CB
C-11-0002 53.8 54.9 1.1 0.8 1.80 1.80 CW-C
C-11-0003 38.3 56.1 17.8 14.9 2.50 2.50 CA 23 - 37.7m mined by artisans
C-11-0003 74.3 84.5 10.2 7.9 2.45 2.45 CB
C-11-0003 98.0 105.9 7.9 7.5 2.88 2.88 CW-C
C-11-0003 116.0 116.6 0.6 0.60 0.60
C-11-0003 153.4 154.9 1.5 2.77 2.77
C-11-0004 67.9 69.0 1.1 1.03 1.03
C-11-0005 0.0 no significant intercepts
C-11-0006 0.0 no significant intercepts
C-11-0007 181.6 183.1 1.5 1.5 1.24 1.24 CB
C-11-0007 205.7 208.7 3.0 3.0 1.04 1.04 CW-C
C-11-0008 233.0 239.5 6.5 5.9 2.36 2.36 CW-C
C-11-0009 1.5 58.0 56.5 1.66 1.66
including 3.0 33.0 30.0 20.0 2.16 2.16 CZ
including 3.0 13.5 10.5 5.14 5.14
including 47.5 57.0 9.5 8.8 2.94 2.94 CA
C-11-0009 97.8 100.6 2.8 2.8 3.00 3.00 CB
C-11-0010 7.5 13.5 6.0 1.56 1.56
C-11-0010 34.0 111.4 77.4 3.39 3.39
including 34.0 43.7 9.7 8.9 5.76 5.76 CZ
including 66.1 111.4 45.3 24.3 4.53 4.53 CA
including 66.1 82.7 16.6 3.73 3.73
including 88.5 111.4 22.9 6.22 6.22
including 93.7 98.2 4.5 20.79 20.79
C-11-0010 144.8 146.0 1.2 1.0 1.41 1.41 CB
C-11-0010 166.5 169.5 3.0 2.28 2.28
C-11-0010 235.2 238.2 3.0 3.0 1.97 1.97 CW-D
C-11-0010 288.8 297.2 8.4 1.19 1.19
C-11-0011 61.5 66.3 4.8 3.2 1.20 1.20 CB
C-11-0011 148.1 201.8 53.7 33.6 3.51 3.51 CW-C
including 148.1 164.8 16.7 6.07 6.07
C-11-0011 199.5 201.8 2.3 3.96 3.96
C-11-0011 238.2 253.0 14.8 13.3 2.90 2.90 CW-D
C-11-0012 100.8 108.8 8.0 7.0 4.97 4.97 CW-C dyked
C-11-0012 120.5 122.0 1.5 1.50 1.50
C-11-0012 195.2 196.6 1.4 1.41 1.41
C-11-0013 12.0 13.5 1.5 1.5 1.76 1.76 CA
C-11-0013 15.0 16.5 1.5 1.06 1.06
C-11-0013 25.5 27.0 1.5 1.00 1.00
C-11-0013 66.5 68.0 1.5 1.71 1.71
C-11-0013 93.5 95.0 1.5 3.04 3.04
C-11-0013 99.4 100.8 1.4 2.23 2.23
C-11-0013 113.8 127.0 13.2 7.8 1.17 1.17 CB
C-11-0013 193.0 257.3 64.3 2.62 2.62
including 193.0 206.9 13.9 13.0 4.72 4.72 CW-C
including 197.5 202.4 4.9 9.31 9.31
including 236.2 257.3 21.1 20.0 4.69 4.69 CW-D
C-11-0014 7.5 25.5 18.0 18.0 1.80 1.80 CA
C-11-0014 61.4 62.9 1.5 3.18 3.18
C-11-0014 85.0 86.3 1.3 1.32 1.32
C-11-0014 111.4 130.4 19.0 15.8 1.23 1.23 CB
C-11-0014 169.4 203.0 33.6 30.0 1.68 1.68 CW-C
C-11-0015 5.5 7.0 1.5 1.25 1.25
C-11-0015 14.0 14.8 0.8 0.8 1.31 1.31 CA
C-11-0015 85.2 86.4 1.2 4.53 4.53 open up hole (no sampling)
C-11-0015 123.4 130.9 7.5 7.5 1.49 1.49 CW-C
C-11-0015 141.5 143.0 1.5 1.63 1.63
C-11-0015 149.0 150.5 1.5 1.28 1.28
C-11-0015 167.0 168.5 1.5 1.13 1.13 CW-D
C-11-0016 6.0 7.5 1.5 1.5 2.35 2.35 CZ
C-11-0016 30.0 42.0 12.0 8.0 4.60 4.60 CA
C-11-0016 92.5 95.1 2.6 1.80 1.80
C-11-0016 132.5 133.7 1.2 1.17 1.17
C-11-0016 187.9 189.4 1.5 1.10 1.10
CRC-11-0001 4.0 10.0 6.0 5.2 14.36 8.80 S-Ext
CRC-11-0001 51.0 52.0 1.0 1.20 1.20
CRC-11-0002 26.0 31.0 5.0 5.0 27.75 17.00 S-Ext
CRC-11-0002 92.0 136.0 44.0 0.80 0.80
CRC-11-0003 0.0 no significant intercepts
CRC-11-0004 13.0 28.0 15.0 12.1 1.46 1.46 S-Ext
CRC-11-0005 32.0 34.0 2.0 1.06 1.06
CRC-11-0006 56.0 57.0 1.0 1.03 1.03
CRC-11-0007 15.0 16.0 1.0 1.30 1.30
CRC-11-0007 44.0 45.0 1.0 1.27 1.27
CRC-11-0007 136.0 144.0 8.0 7.2 1.71 1.71 S-Ext
CRC-11-0008 87.0 92.0 5.0 1.34 1.34
CRC-11-0008 105.0 106.0 1.0 2.45 2.45 S-Ext
CRC-11-0008 158.0 159.0 1.0 0.96 0.96
CRC-11-0008 216.0 217.0 1.0 1.27 1.27
CRC-11-0009 0.0 no significant intercepts
CRC-11-0010 0.0 no significant intercepts
CRC-11-0011 190.0 191.0 1.0 1.28 1.28
CRC-11-0011 203.0 207.0 4.0 3.3 2.44 2.44 S-Ext
CRC-11-0012 5.0 6.0 1.0 5.38 5.38
CRC-11-0012 29.0 30.0 1.0 4.27 4.27
CRC-11-0012 154.0 155.0 1.0 1.07 1.07
CRC-11-0013 64.0 65.0 1.0 1.0 1.06 1.06 CW-C
CRC-11-0014 82.0 83.0 1.0 1.0 1.05 1.05 CW-C
CRC-11-0014 88.0 89.0 1.0 1.79 1.79
CRC-11-0014 94.0 96.0 2.0 2.66 2.66
CRC-11-0014 145.0 146.0 1.0 1.0 1.08 1.08 CW-D
CRC-11-0015 Assays pending
CRC-11-0016 17.0 22.0 5.0 4.5 1.50 1.50 CA
CRC-11-0016 97.0 99.0 2.0 2.47 2.47
CRC-11-0016 109.0 110.0 1.0 4.13 4.13
CRC-11-0016 167.0 168.0 1.0 1.0 1.26 1.26 CW-D
CRC-11-0017 33.0 36.0 3.0 3.51 3.51
CRC-11-0017 43.0 44.0 1.0 1.63 1.63
CRC-11-0017 102.0 104.0 2.0 1.58 1.58
CRC-11-0017 113.0 114.0 1.0 1.92 1.92
CRC-11-0017 137.0 138.0 1.0 1.19 1.19
CRC-11-0018 20.0 21.0 1.0 3.71 3.71
CRC-11-0018 77.0 78.0 1.0 1.57 1.57
CRC-11-0018 85.0 86.0 1.0 1.03 1.03
CRC-11-0018 87.0 88.0 1.0 1.0 2.01 2.01 CW-C
CRC-11-0019 4.0 24.0 20.0 16.0 5.00 5.00 CA
including 5.0 13.0 8.0 8.84 8.84
CRC-11-0019 45.0 48.0 3.0 2.1 4.65 4.65 CB
including 47.0 48.0 1.0 9.53 9.53
CRC-11-0019 64.0 65.0 1.0 2.35 2.35
CRC-11-0019 133.0 135.0 2.0 2.0 1.29 1.29 CW-C
CRC-11-0020 43.0 44.0 1.0 1.0 1.63 1.63 CZ
CRC-11-0020 95.0 96.0 1.0 2.27 2.27
CRC-11-0021 0.0 no significant intercepts
CRC-11-0022 0.0 no significant intercepts
CRC-11-0021A 0.0 no significant intercepts
CRC-11-0023 0.0 no significant intercepts
CRC-11-0024 0.0 no significant intercepts
CRC-11-0025 183.0 185.0 2.0 2.35 2.35
CRC-11-0025 192.0 193.0 1.0 1.24 1.24
CRC-11-0026 0.0 no significant intercepts
CRC-11-0027 108.0 110.0 2.0 2.32 2.32
CRC-11-0028 188.0 189.0 1.0 1.81 1.81
CRC-11-0029 202.0 203.0 1.0 1.18 1.18
CRC-11-0029 214.0 215.0 1.0 1.18 1.18
CRC-11-0030 0.0 75.0 75.0 2.38 2.38
including 0.0 36.0 36.0 21.0 3.77 3.77 CZ
including 3.0 6.0 3.0 0.00 0.00 artisanal mining
including 7.0 22.0 15.0 8.33 8.33
including 15.0 16.0 1.0 0.00 0.00 artisanal mining
including 51.0 54.0 3.0 3.0 0.80 0.80 CA dyked
including 59.0 75.0 16.0 14.5 2.00 2.00 CB
including 63.0 67.0 4.0 6.07 6.07
CRC-11-0030 108.0 109.0 1.0 2.76 2.76
CRC-11-0030 119.0 120.0 1.0 1.3 1.3
CRC-11-0030 125.0 126.0 1.0 1.12 1.12
CRC-11-0030 132.0 133.0 1.0 1.52 1.52
CRC-11-0031 34.0 38.0 4.0 4.2 6.21 6.21 CZ
CRC-11-0031 157.0 158.0 1.0 1.13 1.13
CRC-11-0031 169.0 171.0 2.0 2.0 6.91 6.91 CW-C
CRC-11-0031 202.0 203.0 1.0 1.16 1.16
CRC-11-0032 0.0 8.0 8.0 6.8 2.23 2.23 CZ open at surface
CRC-11-0032 105.0 120.0 15.0 11.0 4.87 3.42 CB
CRC-11-0032 143.0 144.0 1.0 1.0 1.03 1.03 CW-C
Capping: Zone C and CW = 40g/t; Zone C South extension (Sex) = 25g/t - per Roberts, 2008 resource study
Abbreviation: CA - Zone C East, oreshoot A; CB - Zone C East, oreshoot B; CZ - Zone C East, oreshoot Z; CW-C - Zone C West, oreshoot C; and CW-D - Zone C West, oreshoot D

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