Avion Gold Corporation
TSX VENTURE : AVR
OTCQX : AVGCF

Avion Gold Corporation

November 11, 2010 08:00 ET

High Grade Zone Gold Values Up to 12.07 g/t Au Over 12.5 Metres

Numerous Gold Zones Intersected While Testing Tabakoto NW Zones

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2010) - Avion Gold Corporation (TSX VENTURE:AVR)(OTCQX:AVGCF) ("Avion") is pleased to announce new drill results for the northern end of the Tabakoto pit where NW-trending mineralized structures have been identified and tested. This area hosts the NW1 and NW2 cross structures (see Figure 1) which have been traced for 50 to 125 metres along strike and to approximately 300 metres depth (see Figures 2 and 3). Intercept highlights of the NW1 and NW2 zones include the following:

  • 12.07 g/t Au over 12.5 metres
  • 3.58 g/t Au over 8.6 metres
  • 2.89 g/t Au over 6.9 metres
  • 5.33 g/t Au over 2.25 metres

The NW1 zone is exposed in the north end of the Tabakoto pit where a channel sample returned 12.4 g/t over 24.4 metres. Drill holes have defined several steep southeast plunging zones. Additional drilling is being carried out to better define the core of these mineralized systems now that the plunge of the zones is defined. A summary of drill hole intercepts is presented in a table at the end of this release.

In addition to the NW1 and NW2 zones, numerous other mineralized zones were intersected. Modeling work is in progress to put these other intercepts into context and develop a testable model. Highlights of these other intercepts are as follows:

  • 8.56 g/t Au over 7.5 metres
  • 67.71 g/t Au over 3.3 metres
  • 24.11 g/t Au over 3.8 metres
  • 275.35 g/t Au over 2.0 metres
  • 3.16 g/t Au over 12.0 metres

The NW1 and NW2 zones lie along a four kilometre long northerly trend that is cut by both northeast- and northwest-trending cross structures that often host high grade gold mineralization. These structures are the focus of Avion's Tabakoto pit area exploration program and underground mine development at Tabakoto. Exploration in 2010 has focused drilling on seven of these cross-structures, in the immediate Tabakoto pit area. This news release presents the results obtained on the final two structures that were tested. Additional drilling has commenced and will include testing of all seven zones/structures with a continued goal to better define these zones.

John Begeman, Avion's President and CEO, stated: "It is great to see additional high grade intercepts from the Tabakoto pit area. The strongest of these high grade structures will be the early focus of Avion's underground development. It is management's opinion that with the abundance of mineralized structures in the Tabakoto Pit area that more drilling will lead to the definition of more resources which could extend the life of the project."

In 2010, Avion has completed over 453 core and reverse circulation drill holes totaling approximately 58,160 metres of drilling at its Tabakoto and Hounde properties. This work has focused predominantly on the Dioulafoundou, Tabakoto, Djambaye II, Ségala and Vindaloo areas. Drilling has recommenced on the Houndé property, Burkina Faso, which Avion acquired in October, 2010 (See News Releases dated July 5, 2010 and October 7, 2010) with approximately 4,000 metres of further drilling planned. In addition, drilling is planned for the Kofi property, Mali, which Avion is in the process of acquiring (See News Release dated March 31, 2010) and is expected to be finalized soon.

Assays presented in the attached table have been capped at 32 g/t Au as per the latest technical report on the Tabakoto deposit. Avion's procedures for handling core 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 and a qualified person under National Instrument 43-101, 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 Ségala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced. 2010 production is estimated to be between 75,000 and 85,000 ounces of gold. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km2 exploration package that both surrounds and is near to the Company's existing mine infrastructure. Additionally, the 1,670 km2 Houndé 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 Ségala and Tabakoto deposits. 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 drilling 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.

Avion 2010 Tabakoto NW1 and NW2 Area Intercepts

Hole   From (m)   To(m)   Core Length
(m)
  True Width
(m)*
  Au g/t   Capped 32
g/t Au
  Zone
T-10-44   56.0   70.5   14.5       1.90        
T-10-44   92.2   94.2   2.0       2.70        
T-10-44   144.0   147.5   3.5       1.65        
T-10-44   195.0   195.1   0.1       0       NW1
T-10-45   96.5   101.0   4.5       5.56        
T-10-45   135.5   144.6   9.1       2.31        
T-10-45   270.0   271.1   0.1       0       NW2
T-10-45   317.0   317.1   0.1       0       NW1
T-10-46   212.8   215.2   2.4       1.44        
T-10-46   224.5   225.6   1.1       3.32        
T-10-46   233.1   234.6   1.5       1.94        
T-10-46   291.6   294.3   2.7       1.82        
T-10-46   336.9   344.4   7.5       8.56        
T-10-46   377.0   378.5   1.5   1   2.76       NW2
T-10-46   389.0   390.5   1.5       2.27        
T-10-49   0   3.0   3.0       5.18        
T-10-46   15.2   16.4   1.2       2.18        
T-10-46   74.0   76.0   2.0       10.76        
T-10-46   134.6   135   0.4       16.55        
T-10-46   173.8   175.2   1.4       13.15        
T-10-46   245.9   247.7   1.8   1.2   1.31       NW1
T-10-46   301.0   304.0   3.0       8.77        
T-10-46   326.4   327.0   0.6       2.28        
T-10-49   245.9   247.7   1.8   1.2   1.31       NW1
T-10-49   276.0   276.1   0.1       0       NW2
T-10-50   17.5   20.5   3.0   2.2   1.06       NW1
T-10-50   66.0   66.1   0.1       0       NW2
T-10-51A   58.7   65.9   7.2       1.67        
T-10-51A   70.2   71.1   0.9       6.18        
T-10-51A   75.1   84.3   9.2   7.0   2.68       NW8
T-10-51A   95.1   101.1   6.0       1.18        
T-10-51A   108.1   109.6   1.5       1.11        
T-10-51A   122.4   129.3   6.9   5.0   2.89       NW1
T-10-51A   138.5   141.2   2.7       6.58        
T-10-51A   150.9   155.7   4.8       1.23        
T-10-51A   161.0   169.6   8.6   6.0   3.58       NW2
T-10-51A   177.7   179.2   1.5       1.05        
T-10-51A   186.5   191.0   4.5       1.13        
T-10-52A   25.7   28.7   3.0       1.40        
T-10-52A   36.1   39.4   3.3       67.71   20.81    
T-10-52A   45.5   47.0   1.5       13.18        
T-10-52A   54.5   56.1   1.6       3.07        
T-10-52A   78.4   79.3   0.9       2.37        
T-10-52A   98.0   104.3   6.3   3.5   4.95       NW8
T-10-52A   153.5   159.5   6.0       1.86        
T-10-52A   180.5   182.0   1.5   1.0   1.42       NW1
T-10-52A   228.0   228.1   0.1       0       NW2
T-10-54A   52.1   54.0   1.9       10.06        
T-10-54A   79.6   80.3   0.7       34.38   32    
T-10-54A   93.5   95.0   1.5   1.0   2.88       NW3
T-10-54A   115.6   119.4   3.8       24.11   11.49    
T-10-54A   127.2   134.0   6.8       1.08        
T-10-54A   182.5   197.0   14.5   9.0   2.72       NW8
T-10-54A   190.0   197.0   7.0       2.57        
T-10-54A   199.8   202.7   2.9       2.16        
T-10-54A   206.7   207.5   0.8       4.96        
T-10-54A   239.0   241.0   2.0   1.5   5.18       NW1
T-10-54A   254.6   255.2   0.6   0.3   8.16       NW2
T-10-54A   276.1   283.9   7.8       0.82        
T-10-54A   289.9   293.0   3.1       1.27        
T-10-54A   296.5   304.0   7.5       2.20        
T-10-54A   309.4   311.3   1.9       2.28        
T-10-55   5.8   9.0   3.2       1.68        
T-10-55   12.0   13.0   1.0       3.30        
T-10-55   18.1   20.6   2.5       1.29        
T-10-55   29.0   30.0   1.0       10.43        
T-10-55   49.2   50.0   0.8       2.71        
T-10-55   51.6   53.6   2.0       275.35   32    
T-10-55   113.8   125.7   11.9       3.16        
T-10-55   133.1   148.8   15.7   10.5   1.46       NW3
T-10-55   215.5   217.8   2.3   1.5   6.52       NW8
T-10-55   227.8   228.4   0.6       2.18        
T-10-55   242.2   252.2   10.0       1.05        
T-10-55   264.7   277.2   12.5   8.5   12.07   4.55   NW1
T-10-55   304.3   305.7   1.4   1.0   2.04       NW2
T-10-55   313.6   316.5   2.9       1.61        
T-10-55   336.8   338.1   1.3       4.41        
T-10-56   36.7   39.1   2.4       1.52        
T-10-56   61.9   63.0   1.1   0.8   59.53   32   NW8
T-10-56   83.4   85.0   1.6       14.91   13.68    
T-10-56   133.3   134.6   0.3   0.2   7.47       NW1
T-10-56   165.8   168.0   2.2   1.5   5.33       NW2
T-10-56   201.0   201.8   0.8       4.50        

* True widths are presented when the intercept is interpreted.

To view the "Tabakoto NW Zone Plan Map", please visit the following link:

http://media3.marketwire.com/docs/Tabakoto_NW_Zone_Plan_Map_20101110.pdf

To view the "Long Section Tabakoto NW 1 Zone Map", please visit the following link:

http://media3.marketwire.com/docs/Tabakoto_NW1_Zone_NR_Long_Section_20101110.pdf

To view the "Long Section Tabakoto NW 2 Zone Map", please visit the following link:

http://media3.marketwire.com/docs/Tabakoto_NW2_Zone_NR_Long_Section_20101110.pdf

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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