/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
STEADY PROGRESS ON THE KALANA PROJECT WITH A REVISED AND UPDATED
GEOLOGICAL MODEL AND ENCOURAGING INITIAL RESULTS FROM THE RE-ASSAY OF
ST. PETER PORT, GUERNSEY, Nov. 26, 2013 /CNW/ - Avnel Gold Mining
Limited ("Avnel") (TSX: AVK) is pleased to report on the status of
on-going work on its 387.4 sq km Kalana Exploitation Permit and its
abutting 150 sq km Fougadian Exploration Permit.
Kalana Exploitation Permit
Avnel and its consultants, Snowden Mining Consultants ("Snowden"), are
currently finalising a new geological model in respect of the Kalana
deposit and expects that model to be completed during Q4 of 2013. The
geological model is being updated using 25,000 metres of drill hole
data which was not available to IAMGOLD during Q4 of 2012 and was not
incorporated into their geological model. That data became available
in February 2013 enabling the re-interpretation and definition of a
geological model which will likely result in the increase of the
As previously announced Avnel, together with Snowden, have selected
20,000 samples to test and quantify the influence of the coarse nuggety
gold typical of the mineralisation at Kalana on grade. IAMGOLD used a
conventional 50g Fire Assay protocol for the treatment of its drill
samples. Snowden have advised that this protocol likely understates
gold values particularly where, as they concluded, the veins carry
course gold mineralisation, potentially >35% plus 100 micron based on
liberated gold study and up to 75% based on Screen Fire Assay ("SFA")
results. Snowden have recommended a re-assay programme using one of
metallic SFA, Leachwell cyanide extraction and/or laboratory-scale
gravity processing of bulk samples. The use of these protocols will
reduce the sampling error inherent in the previously applied IAMGOLD
20,000 samples have been selected for re-assay using Leachwell. In
October 2013, 901 samples were submitted to the Bigs Global Laboratory
in Burkina Faso for Leachwell assay. The weight of each of these
samples is approximately 2-4kg. The protocol requires 2kg of each
sample to be split after crushing, treated with 24 hour leaching
followed by a conventional fire assay of the leach tail.
The re-assay programme is now continuing on an on-going basis with the
full sample set anticipated to have been re-assayed by the end of
January 2014 so that the results can be incorporated into a new
database and used to undertake a mineral resource report in Q1 2014.
The initial results show the overall grade of the selected samples to
have increased by 52% (uncapped). The 901 samples in respect of which
results are available represent geographic and grade distribution in
the different mineralised rock types and weathering zones. The results
show there is a grade increase in the weathered saprolite and saprock,
particularly in the higher grades. As the weathering profile at Kalana
averages 70m, gold in the saprolite is an important contributor to a
potential mineral resource. Historically at Kalana the mining has been
limited to hard rock narrow stope vein mining with the historical
results demonstrating that drill hole assay grades (standard 50g FA)
underestimate the mine grades.
Management is encouraged by these early results and the programme is
In October 2013, 298 samples were submitted to SGS Metals and Mineralogy
Laboratory in Johannesburg to carry out gravity and cyanidation test
work. This is the same laboratory that conducted this test work with
positive results in 2012. The results of this programme are expected
during December 2013.
Potential grade is conceptual in nature. There has been insufficient
exploration and testing to define a mineral resource, and it is
uncertain if further exploration and testing will result in the target
being delineated as a mineral resource.
Fougadian Exploration Permit
IAMGOLD, who have an option to enter into a JV agreement with Avnel in
regard to the Fougadian Permit, is back in the field following the
rainy season. A report is awaited from IAMGOLD on the results of its
earlier programme and when this is obtained a press release will be
Avnel is, simultaneously with this press release, posting two
presentations on its website (www.avnelgold.com) which will be used in IR presentations to market participants. The
presentations posted are:
Kalana Geology and Strategy, November 2013.
Kalana Regional Exploration (2004 - 2012), November 2013.
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 at January 2005. There remains approximately
826,000 ounces in the measured and indicated category due to mining
depletion from 2005.
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
EurGeol Dr. Olivier Féménias, Vice President Geology and Mr. Roy Meade
(a director of the Company), both of whom are non-independent
"Qualified Persons" 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 the results
and timing of re-assaying the balance of the selected samples from the
Kalana deposit, 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 7768 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