Avion Gold Corporation
TSX VENTURE : AVR
OTCQX : AVGCF

Avion Gold Corporation

October 19, 2010 08:00 ET

Exceptional Grades Continue at Avion's Dioulafoundou Zone

Depth Extent of Mineralization Doubled and Remains Open

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Avion Gold Corporation ("Avion" or "the Company") (TSX VENTURE:AVR)(OTCQX:AVGCF), today announced the release of results for an additional 27 drill holes that tested the Dioulafoundou Zone. This zone is located approximately 2 km south of the existing Tabakoto pit, on the Tabakoto mining concession, Mali, West Africa (Figure 1). Result highlights include the following:

  • 11.25 g/t Au over 10.1 metres
  • 29.89 g/t Au over 7.2 metres
  • 11.35 g/t Au over 12.8 metres

The Dioulafoundou mineralized system consists of two stronger gold mineralized zones and several, smaller, parallel gold mineralized zones. The strongest of the zones, Dioulafoundou NW zone ("DNW"), has been traced for approximately 400 metres along strike and to approximately 325 metres depth (previously tested to 170 metres depth) (see figure 2). A second, parallel, zone of gold mineralization, DNW2, lies approximately 60 metres to the south and has been traced for approximately 190 metres along strike and to approximately 300 metres depth (previously tested to 115 metres depth) (see figure 3). Both zones are steeply dipping, steep east plunging and open down plunge and to the east.

Good gold values have been returned from the western end of the DNW zone with previous intercepts of 21.77 g/t Au over 21.0 metres and several high grade new intercepts with a best intercept of 29.89 g/t Au over 7.2 metres (see figure 2). A core drill continues to test for depth continuity of the high grade sections.

Two of the deeper holes at the DNW2 zone returned 4.56 g/t Au over 9.1 metres and 4.77 g/t Au over 6.0 metres; these two holes are 80 metres apart and currently define the eastern limited of the DNW 2 zone (see figure 3). Management believes that this zone appears to be strengthening in this direction and as a result additional holes are justified.

John Begeman, President and CEO, commented: "the exceptional results to date at Dioulafoundou is a game changer for Avion. It not only gives Avion the opportunity to mine higher grades than in the past, this deposit can also provide a year's worth and possibly more, of mill feed as we transition from open pit to underground mining." 

As stated previously (see Avion news release July 14, 2010) the Dioulafoundou open pit resources, at a 1 g/t Au cut-off, consists of Indicated Resources of 502,000 tonnes grading 5.16 g/t Au totaling 83,400 ounces of gold and Inferred Resources of 105,000 tonnes grading 5.92 g/t Au for 19,900 ounces of gold. This resource was calculated from mineralized intercepts within approximately 120 metres of surface. Current drilling has significantly expanded the mineralized zone.

Surface work has commenced with the clearing of vegetation and storage of soil in order to properly perform reclamation work in the future. Pre-stripping is expected to commence before month-end as the rainy season slowly tails off.

While testing the Dioulafoundou zones, a new mineralized zone, has been intersected at shallow levels by four drill holes. This easterly trending zone lies approximately 130 metres north of the Dioulafoundou zone and has been traced for approximately 150 metres along strike. Drill intercepts of 16.16 g/t Au over 2.6 metres (D-10-72), 9.67 g/t Au over 2.0 metres, 5.04 g/t Au over 3.0 metres and 2.94 g/t Au over 4.5 metres all appear to be related to the same structure. These intercepts are close to an artisanal discovery where abundant gold has been found and is related to a line of artisanal shafts. Future planned drill holes that are planned to test the depth-extent of the Dioulafoundou zone should add additional intercept points.

To date, more than 430 drill holes comprising approximately 55,000 metres of drilling have been completed on Avion properties in 2010. Exploration drilling is continuing to test the cross-structures close to the Tabakoto deposit and the Dioulafoundou zone. Drilling is expected to resume on the Hounde Property in October and commence on the Kofi Property in October as well (see Avion news release dated March 31, 2010).

Avion's procedures for handling core and reverse circulation drill chips have been presented in previous news releases (See for e.g. Avion News Release dated May 13, 2010).

Don Dudek, P.Geo. the Senior Vice President, Exploration of the Company has reviewed 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 Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced. 2010 production is estimated at 75,000 to 85,000 ounces of gold. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km(2) exploration package that both surrounds and is near to the Company's existing mine infrastructure. Additionally, the 1,670 km2 Hounde exploration property in Burkina Faso is returning good results from an ongoing exploration program. These properties are the subject of an approximate US$ 12 million dollar, 60,000 metre plus, drill-focused exploration program in 2010, which management expects, based on results to date, to add new resources and future opportunities for Avion. Avion continues to progress towards its longer term goal of 200,000 ounces of gold per year and is preparing to mine underground at the Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.

Recent drill results
 
HOLE From
(m)
To
(m)
Length
(m)
True Width
(m)
Au
g/t
Grade x
width
Capped
Assay
Zone
D-10-19 21.0 24.5 3.5 2.0 2.34 5 2.34 DNW
D-10-19 46.0 46.8 0.8 0.6 1.69 1 1.69 DNW
D-10-19 110.0 110.1 0.1   0.00 0   DNW2 Zone
D-10-20 57.3 59.0 1.7 1.2 5.89 7 5.89 DNW
D-10-20 162.9 165.4 2.6 1.7 4.11 7 4.11 DNW2 Zone
D-10-20 175.0 175.8 0.8   4.06 0 4.06  
D-10-20 182.8 184.3 1.5   2.78 0 2.78  
D-10-20 187.3 217.8 30.6   1.26 0 1.26  
D-10-22 61.0 64.0 3.0 1.6 1.87 3 1.87 DNW2 Zone
D-10-23 193.9 203.0 10.1 6.5 11.25 73 11.25 DNW
D-10-24 233.0 233.1 0.1   0.00 0 0.00 DNW
D-10-27 31.5 34.5 3.0 1.5 5.04 8 5.04 NW HW1 zone, new
D-10-27 208.2 209.7 1.5 1.2 1.72 2 1.72 DNW
D-10-27 217.0 220.0 2.6 1.5 3.14 5 3.14 DNW
D-10-27 237.8 250.0 12.2 8.2 2.35 19 2.35 NW FW zone
D-10-50 29.3 31.5 2.2 1.5 1.29 2 1.29 DNW
D-10-50 70.0 71.0 1.0   1.43 0 1.43  
D-10-50 77.6 79.0 1.4   3.49 0 3.49  
D-10-50 101.0 103.5 2.5 1.8 1.03 2 1.03 DNW2 Zone
D-10-65 368.6 369.2 0.6 0.4 4.81 2 4.81 DNW
D-10-69 78.6 80.0 1.4 1.0 0.53 1 0.53 NW HW1 zone
D-10-69 265.4 269.0 3.6 2.8 3.15 9 3.15 DNW
D-10-69 274.0 278.4 4.4 3.5 1.31 5 1.31 NW FW zone
D-10-69 335.2 335.8 0.6   1.98 0 1.98  
D-10-70 42.0 46.5 4.5 3.5 2.94 10 2.94 new zone E-W
D-10-70 58.0 59.5 1.5   1.11 0 1.11  
D-10-70 65.5 67.0 1.5   1.23 0 1.23  
D-10-70 105.5 108.3 2.8   1.26 0 1.26  
D-10-70 116.0 122.0 6.0   4.25 0 4.25 New zone E-W
D-10-70 129.5 131.0 1.5   2.70 0 2.70  
D-10-70 137.0 138.5 1.5   1.95 0 1.95  
D-10-70 152.7 153.7 1.0   1.10 0 1.10  
D-10-70 172.9 181.0 8.2   1.83 0 1.83  
D-10-70 256.5 257.6 1.2 0.9 1.09 1 1.09 DNW
D-10-70 285.0 285.1 0.1   0.00 0 0.00 NW FW zone
D-10-72 80.6 81.1 0.5   3.01 0 3.01  
D-10-72 96.9 99.5 2.6 1.6 16.16 26 13.42 new zone E-W
D-10-72 116.2 116.7 0.5   7.50 0 7.50  
D-10-72 190.7 192.2 1.5   3.23 0 3.23  
D-10-72 296.5 297.0 0.5   1.27 0 1.27  
D-10-72 304.8 312.0 7.2 3.3 0.83 3 0.83 DNW
D-10-72 337.0 337.1 0.1   0.00 0 0.00 NW FW zone
D-10-73 122.0 123.7 1.7 1.2 3.44 4 3.44 NW HW1 zone
D-10-73 154.4 154.7 0.3 0.2 13.09 3 13.09  
D-10-73 294.2 295.2 1.0 0.6 5.16 3 5.16 DNW
D-10-73 322.5 324.0 1.5 1.0 0.21 0 0.21 NW FW zone
D-10-78 134.0 138.5 4.5 3.0 5.93 18 5.93 DNW
D-10-78 152.0 155.0 3.0 2.2 3.64 8 3.64 NW FW zone
D-10-81 16.5 18.0 1.5 1.1 4.49 5 4.49 DNW
D-10-81 30.5 33.5 3.5 2.5 2.32 6 2.32 DNW
D-10-95 112.0 113.0 1.0 0.6 1.97 1 1.97 DNW
D-10-95 133.0 135.2 2.2 1.4 1.19 2 1.19 NW FW zone
D-10-99 24.5 25.5 1.0   1.19 0 1.19  
D-10-99 160.3 165.8 5.5 3.8 4.26 16 4.26 DNW
D-10-99 181.0 188.0 7.0 4.4 9.81 43 9.81 NW FW Zone
D-10-101 278.0 290.8 12.8 8.2 11.35 93 9.39 DNW
D-10-101 293.0 294.5 1.5   2.65 0 2.64  
D-10-101 297.9 299.0 1.1   4.12 0 4.12  
D-10-105 186.2 193.0 7.2 5.5 29.89 164 27.82 DNW
D-10-107 16.5 17.2 0.7   1.85 0 1.85  
D-10-107 167.5 171.0 3.5 2.8 6.87 19 6.87 DNW
D-10-107 190.2 193.7 3.5 2.7 12.18 33 12.18 NW FW zone
D-10-107 222.3 224.0 1.8   5.25 0 5.25  
D-10-109 65.0 68.0 3.0   1.30 0 1.30  
D-10-109 142.9 146.1 3.3 2.5 6.26 16 6.26 DNW
D-10-109 175.0 176.2 1.2 0.9 1.13 1 1.13 NW FW Zone
D-10-111 171.6 176.4 4.8 3.3 1.49 5 1.49 DNW
D-10-111 226.3 227.8 1.5 1.0 1.73 2 1.73 DNW2 Zone
D-10-113 212.0 213.5 1.5   1.15 0 1.15  
D-10-113 217.5 220.5 3.0 1.8 5.90 11 5.90 DNW
D-10-114 169.5 171.0 1.5   1.27 0 1.27  
D-10-114 242.5 244.0 1.5 1.2 1.98 2 1.98 DNW
D-10-114 323.0 324.5 1.5   1.24 0 1.24  
D-10-114 344.0 347.0 3.0 2.2 2.21 5 2.21 DNW2 Zone
D-10-114 351.5 359.3 7.8   0.93 0 0.93  
D-10-114 399.1 401.5 2.4   4.70 0 4.70  
D-10-115A 87.4 91.1 3.7 2.4 3.29 8 3.29 DNW
D-10-115A 185.5 189.0 3.5 2.6 0.75 2 0.75 DNW2 Zone
D-10-117 150.0 150.1 0.1   0.00 0 0.00 DNW
D-10-117 188.0 189.7 1.7 1.0 18.44 18 18.44  
D-10-117 241.3 246.0 4.8 2.3 4.06 9 4.06 DNW2 Zone
D-10-117 273.5 275.0 1.5   1.58 0 1.58  
D-10-118 74.0 83.1 9.1 5.5 2.67 15 2.67 DNW
D-10-118 86.0 87.5 1.5   1.83 0 1.83  
D-10-118 177.5 179.0 1.5   1.28 0 1.28  
D-10-118 184.0 193.1 9.1 5.2 4.56 24 4.28 DNW2 Zone
D-10-119 163.0 164.5 1.5 1.2 3.21 4 3.21 DNW
D-10-119 194.8 196.3 1.5 1.2 1.35 2 1.35  
D-10-119 279.5 285.5 6.0 4.0 4.77 19 4.77 DNW2 Zone
* Assays for the DNW zone are capped at 50 g/t Au. Assays for the DNW2 Zone were capped at 15 g/t Au.
Assay capping values were derived from a resource study carried out by P&E Mining Consultants Inc. of Brampton, Ontario

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. Further, the ability of Avion to profitably mine the Dioulafoundou deposit has not been the subject of a feasibility study and there is no certainty that such production 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 updated resource and its impact 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.

To view the first figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/avgcf1019fig1.pdf.

To view the second figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/avgcf1019fig2.pdf.

To view the third figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/avgcf1019fig3.pdf.

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