Avion Gold Corporation
TSX : AVR
OTCQX : AVGCF

Avion Gold Corporation

June 21, 2011 07:00 ET

Avion's Tabakoto Drilling Continues to Return Excellent Results

36.04 g/t Au Over 3.0 Metres

20.88 g/t Au Over 5.7 Metres

TORONTO, ONTARIO--(Marketwire - June 21, 2011) - Avion Gold Corporation (TSX:AVR)(OTCQX:AVGCF) ("Avion" or the 'Company') is pleased to announce the results from 25 core and reverse circulation holes totaling approximately 5,220 metres, drilled primarily to test the Tabakoto Deposit's NW- and NE-trending structures, under and proximal to, the Tabakoto Pit. Drilling was focused with a goal to convert Inferred mineral resources to Measured and Indicated mineral resources for the NW1, NW2, NE1, NE2, Dabo and Tabakoto South cross-structures.

Highlighted significant results include the following:

  • 9.17 g/t Au over 3.0 metres
  • 15.68 g/t Au over 4.9 metres
  • 17.50 g/t Au over 1.6 metres
  • 20.88 g/t Au over 5.7 metres
  • 8.61 g/t Au over 3.6 metres
  • 10.43 g/t Au over 3.3 metres
  • 36.04 g/t Au over 3.0 metres
  • 29.04 g/t Au over 2.0 metres
  • 12.16 g/t Au over 6.0 metres
  • 9.95 g/t Au over 6.1 metres
  • 6.69 g/t Au over 9.0 metres

During the first four months of 2011, Avion completed 15 core holes totaling 3,651 metres and ten reverse circulation holes totaling 1,571 metres to test the continuity of the mineralized cross-structures below and proximal to the Tabakoto pit. Reference to some of this drilling was made on May 2, 2011 when Avion announced an updated resource estimate for the Tabakoto Deposit NW zones, which used assay data from core holes T-11-01 to T-11-10. These holes have better-defined the gold-bearing northwest trending cross-structures and allowed Avion to upgrade significant additional underground Measured and Indicated mineral resources of 81,200 ounces of gold for the Tabakoto NW zones (see Avion news release May 3, 2011).

The high grades and multiple intersections, from this round of drilling, are consistent with what we find in the Tabakoto pit area. A summary of the results are presented in the attached table.

One core hole was drilled to test the western end of the NE1 and NE2 zones. This hole succeeded in intersecting two closely spaced, good grade gold zones at the NE2 zone with intercepts of 4.4 g/t Au over 4.5 metres and 5.81 g/t Au over 4.5 metres. The NE 1 zone was not intersected.

Nine reverse circulation holes were drilled to test the Dabo zone and western end of the Tabakoto south zone. For the most part, these zones are relatively narrow in this area with the best intercepts of 21.33 g/t Au over 1.0 metre and 8.28 g/t Au over 2.0 metres. However, another, new zone was intercepted which returned 5.9 g/t Au over 7.0 metres. A review of this new target area will be carried out.

TRC-11-04, which targeted an inferred cross-structure to the south of the Tabakoto South zone, intersected a narrow, near surface zone, which returned 1.81 g/t over 1.0 metres.

Don Dudek, Avion's Senior Vice President, Exploration stated: "What is striking about these and many of the holes drilled in the Tabakoto pit area, are the abundance of, as of yet un-modeled, gold-bearing zones. Interpretation of these new zones is now being advanced as we gain information from the mining development of the better-defined, gold-bearing cross structures. It is our belief that these new zones will provide additional mineable gold resources as we move the Tabakoto Mine to full underground production in early 2012."

Avion's procedures for handling reverse circulation drill chips and drill core have been presented in previous news releases (for e.g. see Avion news release dated April 5, 2011). The core samples were delivered to the Company's mine site laboratory at Tabakoto. Avion's results from the on-site laboratory have been of consistent high quality, with assay standards returning values well within accepted ranges.

Avion's 2011 approximately 75,000 metre drill focused exploration program is well underway with 256 core and reverse circulation ('RC') holes totaling approximately 35,440 metres of drilling completed. Drilling completed to date is split between Avion's Tabakoto (Mali), Kofi (Mali) and Houndé (Burkina Faso) properties An additional drill rig has been sourced to accelerate and expand the 2011 Houndé drill programs.

Avion's maiden reserve estimate is scheduled to be released at the end of June, 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.

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. Additionally, the 1,670 km2 Houndé exploration property in Burkina Faso continues to return promising results. These properties are subject to a current US$ 13 million dollar, approximate 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 with over 3,500 metres of development completed to date 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

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 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.

Significant Results – Tabakoto Deposit area drilling
HoleFrom
(m)
To
(m)
Width
(m)
True
Width
Au
g/t
Au
Capped*
Zone
T-11-012020.10.10.1NVNVNW8
T-11-0157.059.82.82.43.263.26
T-11-0162.764.21.51.31.801.80
T-11-0168.771.62.92.51.021.02NW1
T-11-01107.7109.31.63.03.023.02NW11
T-11-01110.4114.03.63.19.179.17NW2
T-11-02NVNVNW8
T-11-0232.835.83.00.93.463.46
T-11-0279.584.44.91.315.6813.86NW1
T-11-02NVNVNW11
T-11-02114.4116.52.10.630.9828.86NW2
T-11-02143.6144.10.50.13.153.15NW7
T-11-0311.012.61.61.417.5017.50
T-11-0319.620.61.00.94.364.36
T-11-0336.538.92.42.01.421.42NW8
T-11-0348.050.42.42.03.383.38
T-11-0358.560.01.51.32.002.00
T-11-0365.067.32.32.08.958.95
T-11-0383.084.51.51.32.782.78
T-11-03100.2101.61.41.25.065.06NW1
T-11-03121.0122.41.31.13.923.92NW2
T-11-03144.3145.31.10.94.764.76NW7
T-11-03155.0155.50.50.41.701.70
T-11-03167.8168.30.50.46.526.52
T-11-0411.014.73.71.58.078.07
T-11-0428.029.51.50.61.051.05
T-11-0441.043.32.30.91.651.65NW8
T-11-0455.556.51.00.46.056.05
T-11-0465.074.09.03.63.343.34
T-11-04119.5121.21.70.73.043.04NW1
T-11-04137.9149.011.14.42.512.51NW11
T-11-04154.8157.22.41.02.312.31NW2
T-11-04NVNVNW7
T-11-04206.5212.05.52.22.562.56
T-11-04221.0227.76.702.75.665.66
T-11-0578.781.02.32.04.224.22NW8
T-11-05114.2114.60.40.310.6810.68
T-11-05150.5154.03.53.03.303.30NW1
T-11-05167.3168.10.80.72.052.05NW11
T-11-05172.0172.10.10.1NVNVNW2
T-11-05184.0184.10.10.1NVNVNW7
T-11-0683.286.02.80.74.984.98NW8
T-11-06140.4140.80.40.13.143.14NW1
T-11-06143.8144.10.30.17.667.66NW1
T-11-06178.8181.83.00.84.373.64NW2
T-11-0796.6102.35.74.820.8812.44NW8
T-11-07174.1177.73.63.18.618.61NW1
T-11-07239.7241.11.41.22.202.20NW2
T-11-07246.4247.30.80.73.923.92NW2
T-11-07276.8280.23.32.910.4310.43
T-11-088.710.21.51.018.2318.23NW3
T-11-0819.922.93.02.036.0436.04
T-11-0824.425.91.51.02.362.36
T-11-0830.431.91.51.02.192.19
T-11-0835.335.90.60.47.597.59
T-11-0837.838.91.10.82.272.27
T-11-0863.865.82.01.329.0429.04
T-11-0870.071.01.00.72.432.43
T-11-0874.077.03.02.02.732.73
T-11-0883.884.70.90.610.8510.85NW5
T-11-08117.2123.26.04.012.1610.33
T-11-08131.0131.90.80.63.173.17NW8
T-11-08145.7146.91.20.810.7610.76NW8
T-11-08159.0160.01.00.72.862.86
T-11-08171.4172.10.80.55.145.14
T-11-08207.2208.21.00.75.105.10NW1
T-11-08209.2210.71.51.02.782.78NW1
T-11-08212.7213.20.50.33.033.03NW1
T-11-08NVNVNW2
T-11-08250.2250.50.30.24.724.72
T-11-08255.8256.20.40.32.522.52NW7
T-11-08267.8268.20.40.33.953.95
T-11-08270.0274.64.63.04.084.08
T-11-08278.1279.31.30.84.984.98
T-11-08282.0283.41.40.94.564.56
T-11-0916.718.01.31.12.862.86NW3
T-11-09NVNVNW5
T-11-09NVNVNW8
T-11-09138.0141.33.32.85.815.81
T-11-09NVNVNW1
T-11-09NVNVNW2
T-11-09237.0239.52.52.18.518.51NW7
T-11-1051.952.40.50.38.148.14
T-11-1074.379.24.92.75.435.43
T-11-1084.685.40.80.413.9313.93
T-11-1090.591.00.50.312.8112.81
T-11-1095.398.33.01.72.322.32NW5
T-11-10100.5102.01.50.58.338.33NW5
T-11-10130.3131.10.80.52.652.65
T-11-10141.9145.03.11.75.665.66NW8
T-11-10162.5164.01.50.85.365.36
T-11-10169.8171.31.40.820.5720.57
T-11-10228.8230.01.30.74.574.57NW1
T-11-10256.6259.73.01.77.187.18NW2
T-11-10NVNVNW7
T-10-1412.215.23.03.513.51
T-10-1416.317.81.50.84.694.69NW8
T-10-1452.558.66.14.39.959.95NW1
T-10-1474.576.01.54.744.74
T-10-1489.994.24.33.05.855.85NW2
T-10-14126.9129.42.51.52.382.38NW7
T-10-14135.5138.53.01.83.053.05
T-10-14149.0151.02.08.188.18NW7a
T-10-14154.0156.12.14.744.74
T-10-14169.6178.69.06.596.59
T-10-14199.6203.53.92.82.302.30NW6
T-10-1523.925.11.20.82.172.17NW4a
T-10-1577.980.02.11.34.414.41NW8
T-10-15169.0169.50.50.32.202.20NW1
T-10-15NVNVNW2
T-10-15199.9201.41.525.3125.31
T-10-15216.9227.510.65.52.332.33NW6
T-11-1641.442.51.10.714.0614.06NW4a
T-11-1669.871.21.41.03.613.61NW8
T-11-1681.983.41.511.8111.81
T-11-16NVNVNW1
T-11-16145.2146.42.62.04.324.32NW2
T-11-16NVNVNW7
T-11-1752.252.90.723.5620
T-11-1797.8102.74.83.53.093.09NW8
T-11-17NVNVNW1
T-11-17171.8173.31.51.09.639.63NW2
T-11-17176.2177.21.00.73.943.94NW2?
T-11-17NVNVNW7
T-11-17218.0219.51.58.538.53
T-11-17NVNVNW7a
T-11-17266.3269.93.63.13.1
T-10-13163.6168.14.52.54.404.40NE2
T-10-13172.3176.84.55.815.81
T-10-13179.8180.10.33.633.63
T-10-13NVNVNE1
T-10-13188.1189.11.02.822.82
TRC-11-01NVNVDabo
TRC-11-02104.0105.01.01.251.25
TRC-11-02NVNVDabo
TRC-11-03151.0153.02.01.04.174.17Dabo
TRC-11-042.03.01.01.811.81Explo
TRC-11-0544.045.01.01.451.45
TRC-11-0577.078.01.00.821.3321.33Dabo
TRC-11-0641.042.01.00.830.83Explo
TRC-11-0735.036.01.00.550.55Explo
TRC-11-08NVNVTKS
TRC-11-08163.0164.01.00.51.981.98Dabo
TRC-11-0984.086.02.07.567.56
TRC-11-0988.089.01.01.101.10
TRC-11-09132.0134.02.01.35.725.72Dabo
TRC-11-09151.0153.02.01.38.288.27TKS
TRC-11-09157.0158.01.06.926.92
TRC-11-09189.0196.07.05.905.90
TRC-11-10NVNVDabo
TRC-11-10205.0206.01.00.74.494.49TKS
TRC-11-11NVNVDabo
TRC-11-11127.0128.01.02.922.92
TRC-11-11139.0140.01.00.52.632.63Dabo
TRC-11-11212.0213.01.02.562.56
-NV – no value
-TKS – Tabakoto South
*Zone*Capping Value
NW140
NW240
NW325
NW4 (4a)40
NW540
NW640
NW7 (7a)40
NW820

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/avgcf0621map.pdf.

Contact Information