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ST. PETER PORT, Guernsey, Dec. 6 /CNW/ - Avnel Gold Mining Limited
("Avnel") (TSX: AVK) - Avnel and IAMGOLD Corporation ("IAMGOLD") are
pleased to announce that they have entered into a joint venture
arrangements agreement (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 Exploration Permit referred to
IAMGOLD and Avnel are currently in the second year of the Option
Agreement in respect of the large Kalana Exploitation Permit (387.4 sq.
km) held by Avnel through its 80% interest in Société d'Exploitation
des Mines d'Or de Kalana (the "Kalana Project") in south-west Mali.
The Fougadian 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 has applied for an
exploration permit in respect of the southern 75 sq. km. and it is
believed that its application will be granted shortly. The combined
permits are referred to as the "Fougadian Exploration Permit".
During 2006 and 2007, Avnel conducted a soil geochemical sampling
programme under the supervision of Michele Mercier over the Fougadian
Numerous significant gold and arsenic anomalies were delineated and
grouped into 14 anomalies (Avnel-1 to Avnel-14). It was observed that
these 14 gold anomalies fall along three major mineralized corridors.
Two of these corridors are sub-parallel, strike approximately
north-south, and can be traced nearly continuously through the length
of the property. The third corridor strikes north, north-east and
south, south-west and passes through the south-eastern and
north-eastern quadrants of the permit and continues onto the Kalana
Exploitation Permit where Avnel drilled the Djrilla target with
excellent results. (See Avnel's Press Release of July 17, 2006 on
SEDAR and at www.avnelgold.com).
The Avnel-1 anomaly is the largest and the most important in terms of gold and arsenic
values. It extends for almost 4 km in a north-south direction and for
1.5 km in an east-west direction.
Other significant km-scale gold anomalies have been delineated within the Fougadian Exploration Permit area. Among
them, the most important in terms of potential are considered to be
Avnel-5, Avnel-6, Avnel-7, Avnel-8, Avnel-2 and Avnel-3.
The drill program was focused on the Avnel-1 target. The anomaly is
defined by an area where values generally exceed 32ppb Au and attain a
maximum of 1731ppb Au. It extends for almost 4 kilometres in a
north-south direction and for 1.5 km in an east-west direction.
Two diamond drill holes were completed to a depth of 190 metres in order
to provide information on the bedrock structure that can be used to
optimise the orientation of the RC drilling programme. 48 inclined RC
drill holes totalling 5,422 metres were completed on a grid pattern
during the second quarter, covering only a small portion of the Avnel-1
anomaly. The holes were drilled in a heel-to-toe fashion to ensure
complete coverage across the width of the anomaly. As the budget was
inadequate to fully test this large anomaly, the holes were drilled
along pairs of lines spaced 200m apart, one pair in the north and a
second pair 800m further to the south. Because of encouraging
geological indications, an additional three holes were drilled to the
south of the latter set of lines.
In summary, out of the 50 holes drilled, 15 (30%) intersected values
above 1g/t Au.
An airborne geophysics study was completed by IAMGOLD in the fourth
quarter 2009. The study covered the total Fougadian Exploration
Permit. The study generated new information on magnetic, radiometric
and topographic data. The study improved the quality of previous
surveys as the line spacing (50m) and height flown (25m) is superior to previous work. The interpretation
of the results is ongoing. The IAMGOLD geophysics confirmed the
coincident potassium and magnetic anomalies along the shear zone with
two well-defined north striking corridors.
Under the terms of the Joint Venture Arrangements Agreement, IAMGOLD
will fully fund and satisfy the expenditure requirements of the
Fougadian Exploration Permit and, upon establishing a qualifying
mineral resource of not less than 250,000 oz of gold, may earn a 51%
interest (of Avnel's 90% interest) in the permit. Upon delivery of a
pre-feasibility study, IAMGOLD will be entitled to increase its
interest to 65%. After delivery of a feasibility study, IAMGOLD will
undertake to procure or provide project financing to develop a mining
The results of IAMGOLD's on-going work programme at the Kalana gold mine
(the "Kalana Mine") and its environs in the north-west of Avnel's large
Kalana Exploitation Permit are very encouraging with the work focused
on delineating a bulk mineable resource around the Kalana Mine.
IAMGOLD have also carried out regional work on the remainder of the
Kalana Exploitation Permit, geophysics over the Fougadian Exploration
Permit and reviewed the database from Avnel's prior work on the
Fougadian Exploration Permit. IAMGOLD considers this 550 sq. km. land
package with its significant resources in the well mineralized system
at the Kalana Mine and the high prospectivity potential of the
remainder of the package to be of significant value.
The terrain of the Kalana Exploitation Permit and the abutting Fougadian
Exploration Permit is relatively flat, conducive to trucking ore to a
centralized processing facility.
Howard Miller, CEO of Avnel, welcomes the opportunity of consolidating
Avnel's large land package traversed by a significant arceate shear
zone with an abundance of geochemical anomalies and favourable
structures and welcomes IAMGOLD's participation in the Fougadian
Exploration Permit area and the promising potential IAMGOLD is
beginning to identify and define.
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.
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. 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. 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.
Technical Information and Qualified Person/Quality Control Notes
The mineral resource estimates contained in this news release have been
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101").
The mineral resource estimates contained in this news release have been
based on the 2005 Snowden Technical Report prepared by G.M. Greenway,
Principal Resource Geologist, and D.H. Kullmann, Principal Consultant
Mining Engineer, of Snowden Mining Industry Consultants (Pty) Ltd.
("Snowden"), each of whom is a "Qualified Person" in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("National Instrument 43-101"). The authors of the 2005
Snowden Technical Report are independent of Avnel within the meaning of
National Instrument 43-101.
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: For further information:
Chief Executive Officer
Phone +44 207 589 9082; Fax +44 207 589 8507
UK Mobile: +44 7768 696129
Canadian Mobile: +1 416 726 8174
1 King Street West - Suite 1411
Direct: +1 416.800.9156
Mobile: +1 647.999.9734