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Aggressive exploration drill program continues with 60,000 metres of
diamond drilling and RC drilling completed to date
Expenditure to date totals $13.4 million
2011 drill programme has been achieved and drilling continues
2011 exploration investment will exceed original budget of $8million as
drilling and field activities continue
ST. PETER PORT, GUERNSEY, Oct. 11, 2011 /CNW/ - Avnel Gold Mining
Limited (TSX: AVK) - Avnel Gold Mining Ltd. ("Avnel") is pleased to
provide a project update for the work programme on its 80% owned 387.4
km2 Kalana exploitation permit in Mali conducted by its joint venture
partner IAMGOLD Corporation ("IAMGOLD") as operator of the exploration
venture. The Option Agreement dated August 11, 2009 provides IAMGOLD
with the option to earn an initial 51% interest in Avnel's share of the
Kalana project by spending a minimum US$11,000,000 on exploration
activities over a three year period and by delivering a NI-43-101
resource estimate of at least 2 million ounces of gold as well as
proceeding with a feasibility study.
PROJECT MILESTONES ACHIEVED
Over 60,000 metres of diamond and RC drilling has been completed to
date. The 2011 work program aimed to complete 35,000 metres of diamond
and RC drilling with a total budget of $8.0million. This has been
achieved by end September and IAMGOLD plans to aggressively advance the
project in the 4th quarter.
Location/Drill hole type
Project Total To Date
Kalana Diamond drilling
Kalana RC drilling
Kalanako Diamond drilling
Kalanako RC drilling
7,000,000 (end Aug)
All drill hole assay results for 2010 drill campaign have been received.
19,000 assays have been received from the 35,000 metres drilled to
The main objective is to complete lines of drill holes spaced between
50m and 100m apart 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 during third quarter
2012. One diamond drill rig and one reverse circulation drill rig are
on site and commenced drilling in mid September after the rains.
Preliminary geological cross sections have been generated for Kalana 1
North (one cross section) and Kalana 1 South (five cross sections).
Results to September 30, 2011
Avnel issued press releases on January 31, 2011, February 22, 2011 and
May 26, 2011 and this update should be referenced to those documents.
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, located east of
the current mine operations (See Figure 1). Within these domains, the
predominant strike and direction of quartz vein packages are shown. In
Kalana 1 North veins are dipping predominately south. This is repeated
in the Kalana II domain. In the Kalana I South domain the predominant
dip direction is east.
The results in this release should be read in conjunction with Figures 1
- 9 as well as Table 1 (Assay Results) and Table 2 (Drill Collar
coordinates) posted on Avnel's website www.avnelgold.com. All results are expressed in g/t Au.
KALANA I NORTH
Assay results from thirty five diamond drill holes reported show that a
mineralised zone, running 400m north of No 2 Shaft and extending over
an east west strike of 278 metres, has significant mineralised packages
suitable for bulk mining.
Kalana 1 North has been drilled systematically over six north-south
sections and two east-west sections. Fifty five diamond drill holes
have intersected mineralised zones of varying width and grade. Forty
six 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 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).
Assay results have been received for thirty five holes with results for
20 diamond drill holes outstanding. Recent assay results are shown in
Table 1. Figure 2 and Figure 2A is a plan showing all assay results to
First interpretations (Kalana I North) are reported on the cross-section
Figure 7 from Section W412. This is a North-South section looking to
the East (see Figure 2 to localize the section). This section is
provisional as it is based on data received from ten of the eleven
diamond drill holes on this section line.
On the eastern boundary of Kalana 1 North, the potential for steep,
vertical vein packages is being tested during the second half of 2011.
This area is shown on Figure 3 where RC drilling is in progress.
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 300m and with a strike of at least 200m to a depth of
During the second half of 2011 infill RC drilling will increase the
density of data to enable a mineral resource to be estimated in 2012.
There is potential to extend the mineralisation to the north by 150m
towards the existing mine infrastructure. It is planned to commence RC
drilling in between the existing infrastructure during the fourth
Kalana 1 South has been drilled systematically over five east-west
sections and four north-south sections. Forty one diamond drill holes
have intersected mineralised zones of varying width and grade. Thirty
three holes were drilled at a sixty degree angle from east to west at
fifty metres between drill hole collars to intersect the predominantly
west-east plunging vein structures. Eight diamond drill holes were
drilled at sixty degree angle from south to north at approximately 100m
between drill hole collars.
Assay results have been received for forty diamond drill holes with
results for one diamond drill hole outstanding. Recent assay results
are shown in Table 1 and Figure 4 is a plan showing all assay results
Eighteen RC drill holes have been drilled over two east-west sections
and assay results have been received for eighteen holes. The RC drill
holes are drilled at between fifty five and sixty degrees angle from
east to west to a depth of 100m along the drill hole. Drill collars are
approximately 50m between holes. Assay results are shown in Figure 4
and reported in previous press releases (see www.avnelgold.com).
The surface area covered by the drill sections is 540m (east-west) by
Geological modelling has progressed well with 5 cross sections partially
complete. First interpretations (Kalana I South) are reported on the
cross-section Figure 8 from Section S100. This is an East-West section
looking to the North (see Figure 3 to localize the section). This
section is provisional as it is based on data received from twelve of
the thirteen diamond drill holes on this section line.
Two RC drill holes (RC133 and RC134) were drilled to a hole depth of
sixty metres at sixty degrees from west to east to provide
metallurgical samples from the oxide zone (see Figure 2A). RC133 was
drilled sub vertical to the vein 3 mineralised package that dips from
west to east. The hole showed two mineralised composites as shown
From 11m to 28m, 17m at a grade of 1.88g/t and from 34m to 53m, 19m a
grade of 3.12g/t
This drill hole demonstrates the continuity of the vein 3 package in the
RC134 was drilled sub vertical to the vein 10 mineralised package that
dips from west to east. The hole showed two mineralised composites as
From 20m to 26m, 6m at a grade of 1.84g/t and from 33m to 52m, 19m at a
grade of 6.25g/t
These drill holes demonstrate the continuity of the vein 3 and vein 10
mineralised package in the oxide zone. These intersections are not a
true width of the mineralised package.
The results confirm the existence of an extensive mineralised zone down
to 100m below surface over a surface area of 300m by 400m. Additional
drilling planned in 2011 will enable the mineralisation to be modelled.
Kalana II has been drilled systematically over seven east-west sections
and five north-south sections. Eleven diamond drill holes have
intersected mineralised zones of varying width and grade. Five holes
were drilled at a sixty degree angle from east to west at 100 metres
between drill hole collars to intersect the predominantly west-east
plunging vein structures. Six diamond drill holes were drilled at
sixty degree angle from south to north at approximately 100m between
drill hole collars.
Assay results have been received for nine of the eleven diamond drill
Forty seven RC drill holes have been drilled over seven east-west
sections and assay results have been received for forty one drill
holes. The RC drill holes are drilled at between fifty five and sixty
degrees angle from east to west to a depth of 100m to 130m along the
drill hole. Drill collars are approximately 100m between holes. Forty
three RC drill holes have been drilled over four north-south sections
and assay results have been received for thirty five drill holes. The
RC drill holes are drilled at between fifty five and sixty degrees
angle from south to north to a depth of 100m to 130m along the drill
hole. Drill collars are approximately 100m between holes.
The surface area covered by the drill sections is 300m (east-west) by
Geological interpretation and modelling is in progress. Preliminary
interpretation indicates two mineralised domains (named Savana and
Superette) dipping from surface to the east. During the second half of
2011 several diamond drill holes and RC drill holes are planned to
provide additional geological and assay information. Based on an
increased density of data geological modelling will proceed.
Recent assay results are reported in Table 1. Figure 5 and Figure 5A are
plans showing all drill holes and assay results to date.
Kalanako is located five kilometres north east of Kalana. Two
mineralised trends, one over a distance of 500m and the other over
250m, have been detected from the RC drill assay results.
Mineralisation remains open at depth
During 2010 138 RC drill holes were completed at Kalanako. A total of
14,460m were drilled. 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
As at end July 2011 fourteen diamond drill holes were completed at
Kalanako. A total of 3,384 metres were completed in DD001to DD014.
Holes are drilled from east to west at an inclination of sixty
degrees. Diamond drilling continued in September 2011.
The diamond drill holes will provide geological information to assist
the interpretation of the mineralised zones identified by the 2010 RC
drill hole program. No diamond drill assay results have been received.
The depth of saprolite and saprock is approximately 150 metres, much
deeper than that observed at Kalana. 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 dioritic intrusives.
Figure 6 is a plan showing all drill holes and assay results to date.
The assay turnaround is slower than planned due to work backlog and due
to the sampling protocol that requires the full half core to be sample
prepped. Approximately 16,000 samples from the 2011 drill program
(35,000 metres) that have been sent to SGS laboratory in Bamako are
outstanding. IAMGOLD is investigating how to improve the speed of the
The program to date has made significant progress in constructing a
detailed and predictive geological model. The drilling to be completed
in 2011 is designed to provide information for IAMGOLD to generate a
resource estimate. Assay data from this program should be available by
end Quarter 1, 2012 and the resource study complete by Quarter 3, 2012.
Historically diamond drilling at the Kalana Mine has underestimated the
grades of the mineralised packages actually mined. This under
evaluation is common to high grade quartz vein mines where the nugget
effect is very significant. Recent underground development by Avnel of
Vein 20 has again shown that drill hole results underestimate gold
grades mined. As part of the resource study it is planned to study the
nugget effect at the Kalana Mine using historic data and assess what
additional methodology can be applied to the sample and assaying
protocols. Approximately 1,000 samples are being prepared to be sent to
SGS Laboratory in Ouagadougou, Burkina Faso, for assaying using the
Leachwell assay methodology. These one kilogram samples are from
mineralised drill hole sample rejects that have been already fire
assayed using a 50 gram aliquot sample.
Metallurgical test work has commenced with 7 samples from two RC holes
and underground samples (weighing 50-70kgs per sample) to Lakefield
Laboratories in Canada. Test results are expected during Quarter 4,
Avnel continues to operate the underground mine exploiting exposed
quartz veins by narrow stope mining and gravity gold recovery. This
continues to produce data that is helpful to evaluate the nugget
effect. In addition Avnel is mining exploration raises (including
twinning diamond drill holes) and drifts (a total of 600 metres for
2011) for and at IAMGOLD's cost.
Sample protocol entailed the splitting of the core by diamond core saw
by IAMGOLD staff at the Kalana mine site. Half of the sample preserved
at the Kalana mine site and the other half separated by the metre and
dispatched to the SGS analytical facilities in Bamako, a well
recognized assay lab in West Africa. Each meter sample was dried,
crushed, 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 stored by IAMGOLD staff.
As part of the QAQC program, control samples are added. These control
samples include standards, blanks and duplicates.
IAMGOLD expects to complete the drill programs at Kalana and Kalanako in
the first quarter 2012 to generate the data for the NI 43-101 Resource
Study to be complete in Quarter 3, 2012. The objective is to define a
minimum resource of 2 million ounces and submit a work program for a
During 2012 IAMGOLD is also planning to possibly commence testing the
gold anomaly targets identified by the termite samples and ground
geophysics program completed in 2011. Targets include Djirila
(previously drilled in 2006/07), Tenintoumanina, Sanekourou, Dabaran
(previously drilled in 2007), Sananfarani, Solomanina and Tonda (see
Technical information regarding the Kalana Gold Mine and the Kalana
Permit is provided by Avnel management under the supervision of Roy
Meade, a Company director, who is a non-independent "Qualified Person"
as such term is defined in National Instrument 43-101.
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. 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 Corporation have entered into a joint venture arrangements
agreement whereby IAMGOLD has the option to acquire up to an initial
51% interest 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 been granted an
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
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