/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
AVNEL APPOINTS GROUP GEOLOGY MANAGER
ST. PETER PORT, Guernsey, May 23, 2013 /CNW/ - Avnel Gold Mining Limited
("Avnel" - TSX: AVK) is pleased to report on the status of its 387.4
km2 Kalana Exploitation Permit and its abutting150 km2 Fougadian Exploration Permit in Mali.
Kalana Exploitation Permit
158,000 metres of diamond and RC drilling have been completed and fire
assayed (using classical 50g fire assays)
Well developed geological model demonstrates three main domains at the
Kalana deposit which are potentially open pittable in a single pit to a
depth of at least 150m (approximately 40-50% free digging)
Expert consultant advice indicates that the assay protocol used by
IAMGOLD underestimates the gold grade in the coarse nuggety gold
deposit, and a limited assaying programme to optimize grade estimation
is under review
Prior to the automatic termination of its option agreement with Avnel in
February 2013, IAMGOLD expended approximately $32 million generating a
very extensive geological database significantly enhancing and
progressing the potential for a bulk minable deposit
Avnel has engaged Dundee Securities to assist in exploring all options
available to maximize the value of the project
Fougadian Exploration Permit
Whilst work was suspended following the coup in Mali in March 2012 and
with the onset of the rainy season, IAMGOLD has nearly completed a
fully equipped exploration camp and infrastructure to commence an air
core drilling programme.
Airborne geophysics and ground based IP in association with termite
mound geochemistry indicates four +1 km high priority targets over
approximately 20 km in strike
Appointment of Dr. Olivier Femenias as Group Geology Manager
Avnel is pleased to announce the appointment of Dr. Olivier Femenias as
Avnel's Group Geology Manager. Dr. Femenias was previously the IAMGOLD
Project Geologist responsible for the exploration program at Kalana
from 2009 to 2012. He has an intimate knowledge of the Kalana Project
and the 14 gold anomaly targets on the Kalana Permit. Dr. Femenias was
awarded a PhD in geology (Honors with jury's congratulations) by the
University of Brussels and the University of La Rochelle in 2003. He
was Assistant Professor at Brussels University from 2006 to 2009. Dr.
Femenias has an outstanding academic background married to extensive
field experience at the Kalana Project.
Kalana Exploration Update May 2013
Avnel entered into an agreement (the "Option Agreement") with IAMGOLD on
August 10, 2009 pursuant to which IAMGOLD had the right to earn a 51%
interest in Avnel's interest in the Kalana Permit by spending $11
million over a three year period and delivering a resource study of at
least 2 million ounces of gold as well as proceeding with a feasibility
study. The IAMGOLD work programme focussed primarily on the evaluation
of the Kalana Mine and its environs to examine the potential for a
large scale, bulk mineable resource. The Option Agreement automatically
lapsed on March 1, 2013 as IAMGOLD did not produce a Resource Study as
defined in the Option Agreement within the timeframe allowed.
IAMGOLD spent approximately $32.0 million on the Kalana Main Project
between August 2009 and February 2013. Under the terms of the agreement
IAMGOLD's cost receivable has been forfeited to Avnel. Avnel has
received an extensive geological database after the completion of
127,000 metres of drill holes at the Kalana Mine that has added value
to the future development of a bulk mineable deposit. At the Kalanako
prospect, IAMGOLD completed 27,000 metres of drilling. IAMGOLD reported
that 11 gold anomaly targets were identified on the Kalana Permit that
are worthy of additional exploration.
Avnel has appointed Snowden Mining Consultants to review the sampling
procedures utilised at the Kalana deposit which demonstrates a high
coarse gold nugget effect. Dr. Simon Dominy, from Snowden, an expert in
this field, has reviewed the nature of the coarse gold mineralisation
at Kalana and has concluded that the current sampling and assay
protocols (classical 50g fire assays) are not optimised for coarse gold
mineralisation present in the Kalana deposit since the protocols are
likely to underestimate gold grade. Snowden will complete the study in
June 2013 and work with Avnel to design appropriate protocols and a
potential re-sampling and assay program. Options for improved protocols
include the use of screen fire assays, Bulk Leach Extractable Gold
assays and laboratory-scale gravity processing of samples.
Assuming that Snowden recommends the re-assay of the 2010-2012 drill
hole samples, Avnel will review commencing a program to complete the
re-assay of the mineralised samples during 2013, at an estimated cost
not to exceed $1 million. The results of the re-assay would be
incorporated into the database and a mineral resource estimate.
Sufficient RC chip samples and diamond drill core rejects or pulps are
available for re-assay. The witness diamond drill core is available if
As announced on March 1, 2013, Avnel has appointed Dundee Securities to
assist in exploring all options available to maximize the value of the
Kalana project and shareholder value.
Work to date on the Kalana Permit
158,000 metres of diamond and RC drilling has been completed in 2010,
2011 and 2012. During 2013 exploration activity was limited to assaying
of 2012 drill samples. All the assays have been received as at May 18,
The main objective in 2012 was to complete fences of drill holes on a
nominal 50m by 25m across the Kalana 1 North domain, Kalana 1 South
domain and Kalana II domain to enable geological cross sections to be
generated and a resource study to be completed. This drilling was
completed during the fourth quarter of 2012 (see Figure 1). All Figures referred to in this release will be posted together with
the release at www.avnelgold.com.
The Kalana mine area is geologically defined by three structural domains
based on the dip and strike of the quartz veins. These domains are
known as Kalana I North, Kalana I South and Kalana II all located in
the immediate vicinity of the current mine operations. Within these
domains, the predominant strike and direction of quartz vein packages
varies. In Kalana 1 North veins are dipping predominately south. In
the Kalana I South domain the predominant dip direction is east and can
be projected south east into Kalana II.
Underground mining has been limited to the high grade quartz
mineralisation below the saprolite that is an average depth of 70m
below surface. Approximately 600,000 tonnes have been mined between
1985 and 1991 and between 2004 and now, between 85m and 220m below
surface. This represents a high grade tailings resource of 34,000
ounces at approximately 2 g/t.
KALANA I NORTH
Assay results from fifty seven diamond drill holes and sixty nine RC
holes reported show that a mineralised zone, running 400m north of No 2
Shaft and extending over an east west strike of 230 metres, has
significant mineralised packages with potential for bulk mining to at
least 150 metres below surface.
Kalana 1 North has been drilled systematically over six north-south
sections and three east-west sections. Fifty seven diamond drill holes
have intersected mineralised zones of varying width and grade. Forty
eight holes were drilled at a sixty degree angle from south to north at
fifty metres between drill hole collars to intersect the predominantly
north-south plunging vein structures. Nine diamond drill holes were
drilled at sixty degree angle from east to west at approximately 100m
between drill hole collars. The surface area covered by the drill
sections is 278m (east-west) by 400m (north-south).
A RC drilling campaign was completed in 2012 to infill between the
diamond drill holes to a programmed hole depth of 150m to 200m. This
has provided information from drill holes spaced 25 metres apart along
the north-south drill lines that are approximately spaced at 50 metres
apart. All assay results have been received and are available at www.avnelgold.com.
Geological modeling was completed by IAMGOLD by end 2012 (see Figure 2). In the major mineralised zones, new results confirm the continuity of
the mineralised packages identified by previous drilling and
underground mining. The main mineralised packages are associated with
main veins such as Vein 17, Vein 20, Vein 14, Vein15, Vein 18 and Vein
18C. The Vein 17 mineralised package is generally the thickest with
Underground development and previous drilling have shown that there is
potential for long intersections of lower grade mineralisation in the
far north of the Kalana 1 North Domain. This zone lies between 300m and
400m north of No 2 shaft. This zone will possibly be part of the
northern extremity of an open pit and could provide lower grade ore to
the plant as part of the stripping of the pit. The mineralisation is
associated with the major quartz veins that plunge from near surface to
the south and have been mined underground down to 230m below surface.
Between the major veins, vertical veinlets exist that contain gold
usually associated with quartz veins. The geological interpretation of
the formation of this mineralised zone is being reviewed and requires
additional drill holes from east to west to finalise interpretation. On
Line 400 North, five RC drill holes (RC502 to RC506) were drilled from
east to west at sixty degree inclination. These holes intersected
possible steep, vertical quartz vein structures to support this
possible interpretation. IAMGOLD has modelled these zones with a width
of 10m. Further drilling will be required to demonstrate the continuity
of these steep, mineralized structures.
Composites on drill Section 400N include:
RC503: 13m at1.14g/t from 153m & 9m at 1.17g/t from 224
RC504: 9m at 1.27g/t from 86m, 9m at 1.45g/t from 126m, 9m at 1.45g/t
RC505: 13m at 0.95g/t from 168m, 12m at 2.32g/t from 208m
RC507: 11m at 2.0g/t from 9m, 13m at 0.88g/t from 100m
Composites on others sections include:
RC530: 8m at 1.93g/t from 59m
RC531: 9m at 2.88g/t from 189m
RC533: 3m at 4.18g/t from 148m
Results are reported for composites >10 g/t.m with a maximum of 3m
KALANA I SOUTH
The diamond drill and RC assay results continue to demonstrate the
potential for an open pit in the Kalana 1 South domain, running
east-west over 600m and with a north-south strike varying between 250m
to 400m, to a depth of 120m.
The main mineralized zones strike approximately north-south and dip from
west to east at approximately twenty five degrees. Some of these zones
extend north into the Kalana 1 North domain.
Kalana 1 South has been drilled systematically over eleven east-west
sections and six north-south sections. The surface area covered by the
drill sections is 540m (east-west) by 530m (north-south). These drill
sections are spaced at 50 metres. Sixty six diamond drill holes and one
hundred and twenty eight RC drill holes have intersected mineralised
zones of varying thicknesses and grade. The drill density is 50m by 25m
down to a depth of 100m where most RC drill holes ended. The diamond
drill holes continue to a greater depth and provide data at a wider
spaced drill hole collar position.
Assay results have been received for all drill holes and recent assay
results are shown on the Avnel Gold website www.avnelgold.com
Diamond and RC drill hole results from the 2010, 2011 and 2012 drill
campaigns have shown a number of mineralised zones associated with
major quartz veins (1, 3, 10, 20C and Savane). Between these major
mineralised zones the model shows other mineralised zones. The recent
RC drill assay results have provided additional data that was modeled
by IAMGOLD. Assay results include high grades that would be expected
as Veins 1 and 3 have been mined underground between 2004 and 2007. The
average mined grade of Vein 1 was in excess of 20g/t over 1.8m mining
width. Seven diamond drill holes were drilled to test the extension of
the Vein 1 mineralised package to surface from 85m elevation in the
saprolite. The recent assay results confirm the extension of Vein 1 in
the saprolite above 80m level to surface. RC529 intersected 4m at
1.67g/t from 63m and 6m at 2.61g/t from 96m. RC528 intersected 12m at
2.17g/t from 50m.
Recent RC drilling shows that Vein 10 and Vein 3 extend approximately
215m north of the No 1 shaft (see Figure 1) and results reported above
for RC530and RC531.
The results confirm the existence of an extensive mineralised zone down
to at least 100m below surface over a surface area of 350m by 150m.
One main vein, Vein Savane, has been modelled down to 150m below
surface and is similar to the high grade veins (Veins 1, 3 and 10)
dipping from west to east
Kalana II has been drilled over four east-west sections and eight
north-south sections. The surface area covered by the drill sections is
350m (east-west) by 400m (north-south).Seventeen diamond drill holes
and one hundred and sixty RC drill holes have intersected mineralised
zones of varying width and grade
Assay results have been received for all drill holes and recent assay
results are shown on the Avnel Gold website at www.avnelgold.com.
During the fourth quarter 2012 RC drilling was mainly focused at Kalana
II. Assay results have been received with encouraging composites. The
better results include:
RC509: 1m at 19.2g/t from 18m
RC510: 4m at 18.9g/t from 154m (Vein Savane)
RC511: 5m at 14.1g/t from 130m (Vein Savane)
RC512: 2m at 8.47g/t from 124m
RC513: 7m at 10.6g/t from 211m
RC515: 13m at 0.85g/t from 157m, 7m at 1.79g/t from 181m
RC519: 2m at 14.3g/t from 155m (Vein Savane), 3m at 8.24g/t from 214m
RC520: 5m at 3.51g/t from 174m (Vein Savane)
RC522: 10m at 0.97g/t from 32m, 14m at 1.4g/t from 140m (Vein Savane),
8m at 1.55g/t from 169m
RC523: 11m at 1.81g/t from 118m (Vein Savane)
RC525: 2m at 5.33g/t from 87m
Results are reported for composites >10 g/t.m with a maximum of 3m
Geological interpretation and modelling is in progress. Preliminary
interpretation indicates the presence of two mineralised packages
(named Savana and Superette) dipping from surface to the east. Gold
mineralisation exists outside these two packages but has still to be
fully modelled but is located along the boundary of the east -west
diorite. This mineralized zone around the diorite contact covers an
area of 150m by 350m. Infill drilling will be required to effectively
model the gold mineralization outside the two main mineralized
The recent RC drilling in 2012 continued to a depth of approximately
200m, deeper than previous drill holes. There is an indication of
mineralisation continuing below 100m and may enable mining to extend
down to 150m below surface.
RC 475 and RC 476 were drilled from south to north at an inclination of
55 degrees. The long composites have intersected the Vein Savane
mineralisation that dips from west to east. It appears there may be
some sub vertical gold bearing structures below Vein Savane at the
contact with the main diorite body.
Kalanako is located three kilometres north east of Kalana. Two
mineralised trends, with strike lengths of 500m and 250m, have been
established from the RC drill assay results. These mineralised zones
appear to be steep dipping over a width of less than 10 metres. Closer
spaced drill holes will be required to define a mineral resource.
During 2010, 138 RC drill holes, totalling 14,460m were completed at
Kalanako. Holes were drilled to an average of 105m hole length at an
inclination of 55 degrees. Hole collars were spaced 50m apart. Assay
results have been received and previously reported for 138 holes. In
the fourth quarter of 2011, 3,741 metres of RC drill holes were
completed and assay results are reported in the May, 2012 press
release. During 2012 thirty seven RC drill holes were completed and all
assay results received. Twenty six diamond drill holes were completed
at Kalanako. Holes are drilled from east to west at an inclination of
sixty degrees. Diamond drill assay results have been received for all
twenty six holes. Results have been previously reported at www.avnelgold.com.
The depth of saprolite and saprock is approximately 150 metres, much
deeper than that observed at Kalana. Diamond drilling at Kalanako
displays numerous high strain zones (shearing and folding), packets of
dense laminated quartz vein with sulfides and locally, highly altered
and mineralized felsic intrusives. Mineralisation is associated with
these felsic intrusive rocks that intrude NW-SE striking shear zones.
Diamond drill results to date show generally low grades over narrow
widths at the depth.
The Djirila prospect was discovered by Avnel Gold in 2004 and drilling
in 2005/2006 identified high grade mineralisation down to a depth of
150 metres. Djirila is located in the south east portion of the SOMIKA
permit (see Avnel Gold Press Release dated April 19, 2006).
A RC drill program commenced on April 23 and was suspended on May 2,
2012. A total of 19 drill holes for 2, 535 metres were drilled. Drill
samples were transported to the Kalana mine where sample preparation
was performed at the SGS sample preparation laboratory. Assay results
have been received and are reported on the Avnel Gold website at www.avnelgold.com.
The RC drill results show the continuation of gold mineralisation in the
package delineated by Avnel Gold. Seven holes were drilled at the
southern limit of the mineralisation and generally show lower grades
than that reported in the core of the mineralisation reported by Avnel
Gold in 2006.
Better results include:
DJ-RC019: 7m at 0.91g/t from 25m, 6m at 1.8g/t from 85m and 9m at
2.25g/t from 80m
DJ-RC014: 5m at 2.49g/t from 65m
DJ-RC013: 6m at 0.85g/t from 0.85m
DJ-RC012: 5m at 1.03g/t from 27m and 3m at 1.35g/t from 53m
DJ-RC010: 8m at 0.97 from 12m, 7m at 0.91g/t from 29m and 3m at 1.47g/t
These results are from step out drilling on the southern margin of the
footprint drilled by Avnel, the results of which were reported on April
Target Generation on the Kalana Permit
Following the high-resolution airborne geophysical survey made in 2009
and exploration work performed by Avnel since 2004, an extensive
geochemistry (38,519 Termite Mound samples on 530km²; 1 sample per ha
or 2ha), covering the entire surface of the licences, has been
conducted between 2010 and 2012. Each sample was analysed for gold
using a conventional 50g fire assay and 30 other trace elements by
portable bench-top XRF. Arsenic and gold geochemical maps of the
properties define together mineralization trends well constrained by
magnetic structures. Most of gold (and/or arsenic) anomalies display a
strong structural control at regional and local scales (see Figure 3).
At least fifteen gold targets have been identified. Eleven of these
targets are included in the SOMIKA permit. The five others occur in
adjacent Fougadian exploration permits discussed below. The ten SOMIKA
permit targets include Kalanako and Djirila that have been drilled as
reported above; Solomanina and Tenintoumanina-Kaladiani that display a
high prospectivity on large areas; Tonda which is less extended but
well defined and Kodialani close to the Kalana deposit. Fougadian
exploration permits is characterised by at least two long (~20km) N-S
structures well defined by geophysics, gold and arsenic anomalies.
These mineralised structures include long km-scale targets as Maramale,
Leba and Korianko and extensions into the SOMIKA permit (Sananfarani).
A gradient array IP survey has been carried out over several drill
targets identified by geochemistry results.
The 2011 IP survey over Ténintoumanina, Djirila and Kalanako grids is being processed and some
initial results have been produced.
During 2012 a ground geophysics survey was completed on several target
areas defined by geochemistry. A total of 337.4 line-km was completed
at Kalanako, Kalana, Djirila and Solomanina. The survey was done by
Sagax, a specialist company with extensive experience in West Africa.
Preliminary results and interpretations have been received. This will
be used for the optimum locating of future drill holes.
Metallurgical Test Work
A total of 50 bulk metallurgical samples were submitted for heavy
concentrate analysis by using the Knelson concentrator at the SGS
laboratory in Johannesburg. The samples consist of 1m length of 5m
The test program required processing each individual sample through the
gravity concentrator and then direct cyanidation of the gravity
concentrator tailings. The main objective of the study was to
determine the head grade of the bulk samples by gravity and leaching.
It is expected that large samples will result in a better gold
estimation, at a significantly higher process cost.
The RC drill hole samples had previously been assayed using conventional
50g fire assay in Mali. The chip rejects were submitted to SGS in South
Africa to compare the results of a bulk sample to a standard 50g fire
IAMGOLD reported initial indications are that the bulk samples analysed
in Johannesburg and metallurgical samples previously analysed in Canada
display the same behaviour as illustrated by the "Poisson effect"
during sub-sampling with the global under-estimation of grade using a
classical FA 50g approach.
IAMGOLD reported that 50g fire assay results underestimate grade when
the FA grade is 4g/t or higher. In the range 1g/t to 4g/t the FA and
the bulk sample assays report similar results. In the range below 1g/t
there appears to be some limited upgrade in bulk sample assays compared
to 50g FA results.
SOMIKA observed that the gravity recovery in a 5m composite varied
considerably for each 1 metre sample. The higher grade sample generally
showed recovery to gravity of 60% plus, whereas the lower grades
generally reported 80% plus gold being recovered from the tails.
Gravity recovery over the 50 samples ranged from 8% to 90% plus. This
demonstrates that the gold size distribution varies through a 5m
mineralised package, with the larger gold particles associated with
major quartz veins. This aligns with historic mining experience of 2m
stopes and development crosscutting mineralized packages.
Historically grade estimates using drill hole assay results has always
significantly underestimated mined grades at Kalana. The mass of
sample from a bore hole is normally reduced to a 50g sample for fire
assaying. Using a larger bulk sample will address some of the
underestimation of drill hole grades, but at a considerable cost. An
alternative protocol is to use screen metallic assaying methodology of
1 kilogram samples. The proposed protocol will be finalized on receipt
of the recommendations from Snowden
Sample protocol entailed the splitting of the core by diamond core saw
was carried out by IAMGOLD staff at the Kalana mine site. Half of the
sample is preserved at the Kalana mine site and the other half
separated by the metre and dispatched to the SGS analytical facilities
in Bamako, a certified assay lab in West Africa. Each meter sample was
dried, crushed to 90% passing 2mm, pulverized to 85% passing 75 micron,
and then split using a cone splitter. Approximately 200 grams of the
pulverised sample was placed in sealed packets and sent to the SGS
assay laboratory in Kayes, Mali. Samples were analyzed for gold using
a 50g fire assay. Rejects are returned to the Kalana Mine site and
were stored by IAMGOLD staff.
RC samples are prepared at the Kalana mine site. The cuttings are
sampled in one-metre intervals, at a rate of six samples per drill rod.
Individual samples are collected at the rig and transported to the mine
site for air drying in pans as required (mostly for samples from the
lower parts of the RC holes). The samples are weighed at the drill
The dried samples are split in a large riffle to produce a sub-sample of
nominal 2.5 kg for subsequent assaying. Chip boards, washed samples
for logging, and pan concentrates for the observation of any free gold
are also prepared. These activities were carried out by IAMGOLD
personnel to industry standards.
The 2.5-kg sub-sample is taken to the SGS preparation laboratory. The
sub-sample is weighed by SGS personnel and recorded. The entire
sub-sample of nominally 2.5 kg is crushed to a nominal 90% passing 2mm
and pulverized to a nominal 85% passing 75μ. A sub-sample of nominally
200 g is taken from the pulverized material and placed in a Kraft paper
bag for transport to the analytical laboratory. Since October 2010 the
200g sub sample has been collected by riffle splitting to avoid
possible segregation of heavy gold particles after pulverisation.
As part of the QAQC program, control samples are added. These control
samples include standards, blanks and field duplicates.
Avnel issued press releases on its Kalana exploration project on January
31, 2011, February 22, 2011, May 26, 2011 October 11, 2011, March 12,
2012, May 15, 2012 and August 14, 2012. Exploration is also reported in
the quarterly MDA. Assay results and drill collar co-ordinates are
reported in these press releases posted on Avnel's website www.avnelgold.com. Assay results and drill collar coordinates for results received since
August 2012 are now posted on Avnel's website.
Fougadian Exploration Permit
On October 17, 2006, Avnel was awarded the Fougadian Exploration Permit
which lies south of the Kalana Permit. The Fougadian Exploration Permit
covers an area of 150 km2 including a portion of the Niessoumala exploration area. The permit
was awarded in accordance with the 1999 Mining Code and a foundation
agreement (the "Foundation Agreement") was signed between Avnel Mali, a
100% wholly-owned subsidiary of Avnel, and the Government of the
Republic of Mali. The Foundation Agreement provides for the
exploration and exploitation of Group 2 minerals as defined in the 1999
Mineral Code. Group 2 minerals include gold and silver, and base
metals, but exclude precious stones, semi-precious stones and fossils.
Avnel applied for a renewal of the Fougadian Exploration Permit and this
was granted in March 2010, with the commencement date December 2009.
Avnel has specified a new area of 75 sq. km as required by the Malian
Code. This area lies in the northern half of the original permit and
includes the largest anomaly Avnel 1 (now called Maramale). The renewal
was for 3 years and Avnel has committed to expenditures of $1.9 million
over this period. As at December 31, 2012 expenditure totalled US$1.8
The Permit expired in December 2012. Avnel is applying for a three year
extension of the permit and is confident this will be granted during
the second quarter.
Joint Venture Arrangements Agreement Fougadian Permits
In 2010, Avnel Gold and IAMGOLD entered into the Joint Venture
Arrangements Agreement whereby IAMGOLD has the option to acquire up to
an initial 51% interest in Avnel's 90% interest in the Fougadian
The Fougadian Exploration Permit held by Avnel previously comprised 150
sq. km. to the south of and abutting the Kalana Exploitation Permit.
Avnel relinquished the southern half of its ground in accordance with
the Malian Mining Code and was granted a new exploration licence on the
northern half on March 23, 2010. IAMGOLD applied for an exploration
permit in respect of the southern 75 sq. km and this was granted on
June 20, 2012. The combined permits are referred to as the "Fougadian
During 2012, IAMGOLD had proposed a $6.5 million budget to follow up the
exploration results achieved in 2010/2011. The work program planned RC
drilling at the Avnel 1 gold anomaly (now called Maramale) to follow up
the targets identified by geochemical sampling of termite mounds and
geophysical structures identified by airborne geophysics.
Following the military coup in Mali in March 2012, IAMGOLD, as the
Operator, halted the planned drilling program. A ground geophysics
program was completed over the Maramele target by SAGAX. 192 line
kilometers were completed and result received. The results confirm the
previous interpretation as reported above.
Avnel is waiting for a 2013 detailed work program and budget from
IAMGOLD. Due to the state of emergency in Mali, IAMGOLD closed its
Bamako office in January. The office re-opened in April and staff
started preparation for the exploration program for 2013.
IAMGOLD is considering an air core drill program to further define the
optimum targets within the Maramale anomaly and other anomalies prior
to an RC drill program.
ABOUT THE COMPANY
Avnel is a producing gold mining company operating the Kalana Mine in
south-west Mali and is engaged in the exploration of the 30-year Kalana
Exploitation Permit encompassing 387.4 sq km around and to the south of
the Kalana Mine as well as on Avnel's abutting Fougadian Exploration
Avnel's principal asset is an 80% interest in Société d'Exploitation des
Mines d'Or de Kalana ("SOMIKA") which is the holder of the Kalana
Exploitation Permit. The Kalana Project is situate in south west Mali.
The 387.4 sq km exploitation permit has a NI-43-101 compliant resource
of 1,020,000 oz (at an average grade of 10.4 g/t) in the measured and
indicated category, and 249,000 oz (at an average grade of 3.4 g/t) in
the inferred category.
Avnel also holds the Fougadian Exploration Permit covering an area of 75
sq. km. to the south of the main Kalana Exploitation Permit area and
abutting it. Avnel and IAMGOLD have entered into a joint venture
arrangement agreement whereby IAMGOLD has the option to acquire up to
an initial 51% in Avnel's interest in the Fougadian Exploration Permit
and in an additional 75 sq. kms to the south of Avnel's Fougadian
Exploration Permit area for which IAMGOLD has an exploration permit
which is subject to that joint venture arrangement.
Technical Information and Qualified Person/Quality Control Notes
Information in this release arising subsequent to the date of the 2005
Snowden Technical Report regarding the Kalana Gold Mine and exploration
activity is provided by Avnel management under the supervision of Roy
Meade (a director of the Company) who is a non-independent "Qualified
Person" as such term is defined in National Instrument 43-101. Portions
of the information are based on assumptions, qualifications and
procedures which are not fully described herein.
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts are forward-looking statements.
Although Avnel believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward looking statements include market
prices, continued availability of capital and financing and general
economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual
results or developments may differ materially from those projected in
the forward-looking statements. Avnel does not assume any obligation to
update or revise its forward- looking statements, whether as a result
of new information, future events or otherwise.
SOURCE: AVNEL GOLD MINING LTD.
For further information:
Chief Executive Officer
Phone: +44 207 589 9082; Fax +44 207 589 8507
UK Mobile: +44 07768 696129
Canadian Mobile: +1 416 726 8174
Executive Director, Technical and Operations
Phone : +223 6674 7679
Public Relations Consultant:
1 King Street West - Suite 1411
Direct: +1 416 800 9156
Mobile: +1 647 999 9734