IAMGOLD INVESTIGATES AND RE-ASSAYS KALANA EXPLORATION DRILL SAMPLES
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
ST. PETER PORT, GUERNSEY, Oct. 18 /CNW Telbec/ - Avnel Gold Mining Limited (TSX: AVK) ("Avnel" or the "Company") reports that it has been informed by IAMGOLD, the Company's joint venture partner for the Kalana exploration programme, that sample preparation protocols have not been consistently followed by SGS, the independent laboratory engaged in the programme, during parts of 2010. The issue is being intensively investigated by SGS and IAMGOLD and remedial action has been initiated.
The SGS laboratory at Kalana has been closed temporarily and will be re-commissioned when more experienced SGS personnel are seconded to the laboratory and additional equipment installed. All reverse circulation and diamond drilling samples analysed to date will be re-analysed at SGS's sample preparation laboratory in Bamako and analytical laboratory in Kayes. It is IAMGOLD's objective that all the re-assaying is completed before the end of 2010.
Preliminary investigations indicate that some sample material for pulverisation was lost during the sample preparation phase, and that drill samples were found discarded on the project site. IAMGOLD report that they believe the QA/QC protocols were properly applied to pulverised samples, but that the loss of sample material may have distorted the representivity of those samples. IAMGOLD has reported to Avnel that there is a reasonable possibility that SGS's failure to apply appropriate sample preparation laboratory protocols occurred at an early stage of the initial drill campaign in 2010 and, accordingly, errors may have been introduced into the assay results reported in the "Kalana Project Update" press release of June 21, 2010. IAMGOLD reports that the underground grab sample assays reported in the Kalana Project Update are unaffected and that the geological observations therein remain valid. Additional observations since Kalana Project Update have further refined the geological model, and continue to serve as a sound technical framework for the ongoing exploration programme being conducted by IAMGOLD.
To date 9,821 metres of diamond drilling and 11,646 metres of reverse circulation drilling have been completed at the Kalana mine and its environs and assays in respect of 7,821 metres have been received from SGS.
A drill campaign commenced on October 10, 2010 with 6,500 metres diamond drilling and 10,000 metres reverse circulation drilling planned at both Kalana and the Kalanako satellite target. This programme is scheduled for completion by year end.
Mike Donnelly, Senior VP Exploration IAMGOLD, is quoted as saying "We view the sampling and assay shortcomings as unfortunate and are taking the necessary steps to verify the integrity of the data related to the samples that we have collected to date, and that appropriate processes are in place to prevent anything like this from re-occurring. We continue to be enthusiastic about the potential of Kalana. Our exploration plans have not changed, and two drills arrived on site in October following the rainy season and are currently working."
Howard Miller, CEO of Avnel says, "Avnel is concerned that there has been an operational issue in the sample preparation laboratory. We will give close attention to the remedial steps being taken and the company will cooperate with the implementation of those steps and all aspects of the programme. We look forward to reporting re-assayed results to shareholders as soon as they become available".
About the Company:
Avnel is a gold mining producing company operating the Kalana gold mine and is engaged in the exploration of its 80% interest in Société d'Exploitation des Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the holder of a 30 year exploitation permit encompassing 387.4 sq. km. around and to the south of the operating Kalana gold mine in South West Mali. Avnel also holds the Fougadian exploration permit covering an area of 75 sq. km. which lies to the South of the main Kalana exploitation permit.
Technical Information and Qualified Person/Quality Control Notes.
Information in this release 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, qualification and procedures which are not fully described herein.
About the Company:
Avnel is a gold mining producing company operating the Kalana gold mine. Avnel's principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the holder of a 30 year exploitation permit encompassing 387.4 sq. km. around and to the south of the operating Kalana gold mine in South West Mali. Avnel also holds the Fougadian exploration permit covering an area of 150 sq. km. which lies to the South of the main Kalana exploitation permit.
Forward-Looking Information
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.
For further information: For further information:
Howard Miller
Chief Executive Officer
Phone +44 207 589 9082; Fax +44 207 589 8507
UK Mobile: +44 7768 696129
Canadian Mobile: +1 416 726 8174
Email: [email protected]
www.avnelgold.com
Ari Todd
President
FronTier Consulting
1 King Street West - Suite 1411
Toronto, Canada
M5H 1A1
Direct 416.800.9156
Mobile 647.999.9734
E-Mail [email protected]
www.frontierconsultingltd.com
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