Avnel Drills 174.0 g/t over 3 m, 6.0 g/t over 15 m, and 7.8 g/t over 11 m at Kalana Main

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SAINT PETER PORT, GUERNSEY--(Marketwired - July 16, 2015) - Avnel Gold Mining Limited ("Avnel" or the "Company") (TSX:AVK) is pleased to report additional assays from its recently completed drill program that is in support of a Definitive Feasibility Study ("DFS") for its Kalana Main project in south-western Mali, West Africa.

Kalana Main Drill Program Highlights:

  • Significant high-grade mineralisation intersected beneath Vein 1
  • Drilling continues to encounter mineralisation over long intersections
  • Drilling continues to define the up-dip extension of Vein 1 near the western limits of the deposit
  • Assays from the eastern extension and south-eastern extension and infill drilling are pending
  • Updated mineral resource estimate expected in late September 2015

"I am pleased to report that assays from extension, infill, and gap drilling from the western, northern, and central portions of the deposit continue to define the extents of the deposit and reinforce our confidence in our geological model. We remain confident that this drilling will support the conversion of a meaningful portion of our Inferred Resource into the measured plus indicated category and delineate new mineral resources," stated Howard Miller, Avnel's Chairman and CEO.

"We completed the drill program in early July and are eagerly awaiting assays from extension and infill drilling near the eastern and south-eastern limits of the deposit. This drilling represents nearly one-third of our program and presents a significant opportunity to extend zones of known mineralisation. We continue to expect the completion of an updated Mineral Resource estimate in late September, which will form the basis for a Definitive Feasibility Study that is scheduled to be completed in the first quarter of next year."

Exploration at Kalana Main Continues to Deliver Positive Results

The Company drilled 181 holes over 30,131 metres ("m") in this drill program, which is now complete. The results reported in this news release reflect assays from 50 holes over 8,209 m of drilling assayed (122 holes over 19,108 m drilling reported to date). Select composite assays and related drill hole information is presented in the tables at the end of this news release. Additional assays from the remainder of the drill program are pending, mostly from the eastern and south-eastern portions of the deposit, and will be reported in due course.

For maps of the general layout of the drill program, the location of drill lines, and the location of individual drill holes, please refer to figures 1 through 3 near the end of this news release, respectively.

As detailed in the Company's March 26, 2015 news release, the current Mineral Resource for the Kalana Main deposit consists of an Indicated Resource of 2.11 million ounces of gold (14.5 million tonnes grading 4.52 grams of gold per tonne ("g/t Au") at a 0.9 g/t Au cut-off) and an Inferred Resource of 0.31 million ounces of gold (1.8 million ounces grading 5.28 g/t Au) at a 0.9 g/t Au cut-off). Also reported was an Exploration Target of 0.7 to 1.0 million ounces (between 5.3 and 6.6 million tonnes grading between 3.9 and 4.7 g/t Au), which is outside the Kalana Main Mineral Resource estimate, but contained within a conceptual pit shell.

The aforementioned assessment of potential quantity and grade is conceptual in nature and there has not been sufficient exploration to define a mineral resource and the preliminary economics are not sufficient to support a reasonable expectation for economic extraction. The Exploration Target is largely based on a wide spacing of drill holes. As a result, confidence in this part of the model is not sufficient to define a mineral resource and therefore is currently defined as an Exploration Target rather than as part of the Mineral Resource for the Kalana Main deposit. It is uncertain if further exploration will result in any portion of the Exploration Target being delineated as a mineral resource.

Significant High-Grade Mineralisation Intersected Beneath Vein 1

Deeper infill and gap drilling along lines N000 and S050 has intersected significant high-grade gold mineralisation within the central and west-central portions of the deposit. The gold mineralisation is interpreted to include Vein 1, the most significant vein at Kalana Main, and several veins beneath it. This mineralisation typically consists of the primary, shallow dipping, high-grade quartz vein packages.

Significant composite intervals from beneath Vein 1 include:
KA-SOM-RCDD007 7.8 g/t Au over 11 m
including 53.1 g/t Au over 1 m
including 19.8 g/t Au over 1 m
and 2.1 g/t Au over 16 m
KA-SOM-RCDD008B 5.0 g/t Au over 6 m
KA-SOM-RCDD006 10.3 g/t Au over 6 m
including 54.1 g/t Au over 1 m

This drilling continues to confirm the geological model and is expected to improve grade continuity in the block model and result in an increase to the Mineral Resource. This drilling has also better defined the western limits of the deposit.

A summary of select composite assay and drill hole information from this drilling is presented in tables 1 and 2, respectively. Additional assays from this zone are pending.

Drilling Continues to Encounter Mineralisation over Long Intervals

Infill and gap drilling along lines W280, W340, W386, and W445 has encountered long intersections of gold mineralisation in the central and west-central portions of the deposit in saprolite, transitional, and fresh rock material. The gold mineralisation across this complex portion of the deposit typically consists of the primary, shallow dipping, high-grade quartz vein packages that have been locally overprinted by abundant sub-vertical lower grade veins within north-south trending structural corridors.

Significant intervals from these lines include:
KA-SOM-RC583 6.0 g/t Au over 15 m
including 21.8 g/t Au over 1 m
including 55.9 g/t Au over 1 m
KA-SOM-RC638 2.6 g/t Au over 12 m
including 12.4 g/t Au over 1 m
and 2.4 g/t Au over 17 m

This drilling is expected to improve grade continuity in the block model for both the high-grade vein packages and the corridors of lower grade sub-vertical veins and result in an increase to the Mineral Resource in this portion of the deposit.

The overprinting of the sub-vertical veins on the vein packages is significant because it has resulted in longer composites of mineralisation, albeit at a lower grade, compared to other portions of the deposit. Consequently, the Company will examine the potential for lower cost bulk mining in these portions of the deposit relative to the selective mining approach previously envisioned. The reassessment of portions of the deposit as bulk tonnage targets and better definition of unmineralised material has the potential to positively impact the waste-to-ore ratio and other key performance indicators in the DFS.

Furthermore, the presence of mineralisation within the oxidised saprolite horizon is significant because it typically exhibits higher metallurgical recoveries and lower mining and processing costs relative to deeper transitional and fresh rock material. The shallow nature of this mineralisation is also significant as it may be available for mining in the early years of the mine plan and thus has the potential to positively impact a number of key performance indicators in the upcoming DFS.

A summary of select composite assay and drill hole information from this drilling is presented in tables 3 and 4, respectively.

Similarly, assays from infill and extension drilling along lines W280, W312, W340, W360, and W510 continue to delineate primary, shallow dipping, high-grade quartz vein packages that have been locally overprinted by abundant sub-vertical lower grade veins contained within north-south trending structural corridors. This mineralisation is typically within the favourable saprolite horizon and in close proximity to the northern limits of the pit shell.

Significant composite intervals from this drilling includes:
KA-SOM-RC542 2.5 g/t Au over 28 m
and 2.4 g/t Au over 20 m
KA-SOM-RC649B 10.4 g/t Au over 5 m
including 41.2 g/t Au over 1 m
KA-SOM-RC648 5.2 g/t Au over 7 m
including 26.6 g/t Au over 1 m

This drilling is expected to result in localised northern extensions to in-pit portions of the Mineral Resource, which is highly encouraging as this portion of the block model does not contain any mineralisation. The delineation of new in-pit mineralisation has the potential to positively impact the waste-to-ore ratio and other key performance indicators for the DFS.

The preliminary analysis of this drilling indicates that the extents of mineralisation in close proximity to the north-western, northern, and north-eastern limits of the deposit has been generally defined.

A summary of select composite assay and drill hole information from this drilling is presented in tables 5 and 6, respectively.

Western Extension Drilling Continues to Define High-Grade Vein 1 Mineralisation

The Company has also received additional assays from lines W600 and W650 that continue to delineate the up-dip extension of Vein 1 and the western limits of the deposit.

Significant composite intervals from the western extension drilling include:
KA-SOM-DD165 8.7 g/t Au over 4 m
including 31.4 g/t Au over 1 m
KA-SOM-RCDD001 7.8 g/t Au over 8 m
including 56.3 g/t Au over 1 m

The continued delineation of the up-dip extension of Vein 1 in the favourable saprolite horizon is highly encouraging as it is expected to support the conversion of a meaningful portion of the Inferred Resource to the measured plus indicated category. The shallow nature of this mineralisation is also significant as it may be available for mining in the early years of the mine plan and is thus likely to positively impact a number of key performance indicators in the upcoming DFS.

The preliminary analysis of this drilling indicates that the mineralisation in close proximity to the western limits of the deposit has been generally defined.

A summary of the select composite assay results and drill hole information from this drilling is presented in tables 7 and 8, respectively. Additional assays from line W600 are pending.

Assays from Eastern Infill and Extension Drilling Pending

The drill program was completed on July 5 and assays from 70 drill are pending, mostly from extension drilling to east of the deposit plus infill and extension drilling in south-east, as shown in Figure 1. This drilling represents nearly one-third of the total drill program and presents an opportunity to extend areas of known mineralisation into portions of the block model that does not contain any mineralisation.

The Company has received assays from extension drilling on the eastern portion of the deposit from a limited number of holes, which have yielded modest results so far, with the most significant composite interval being:

KA-SOM-DD175 174.0 g/t Au over 3 m
including 518.4 g/t Au over 1 m

The implications of the initial results from eastern extension drilling are uncertain as these holes are outside of the eastern limits of the pit shell at depth. Additional assays from the eastern extension drilling are pending. No assays from infill and gap drilling in the south-eastern portion of the deposit have been received.

A summary of select composite assays and drill hole information from eastern extension drilling is presented in tables 9 and 10, respectively.

Updated Mineral Resource to Lay the Foundation for the Definitive Feasibility Study

The Company continues to expect to complete the next revision to the Mineral Resource estimate in late September 2015. This Mineral Resource is expected to form the basis for a Definitive Feasibility Study that is scheduled to be completed in the first quarter of 2016.

QA/QC Programs

Exploration programs are conducted under the supervision of Dr. Olivier Féménias, EurGeol 1115, Avnel's Vice-President, Geology. Dr. Féménias, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 1.0 m. Samples are prepared on site and sent to BIGS Global Burkina SARL ("BIGS Global") in Ouagadougou, Burkina Faso for analysis. Analytical method is a 2-kilogram bottle-roll cyanidation using a LeachWELL catalyst. The leach residues from all samples with a grade in excess of 0.3 g/t Au were prepared by BIGS Global and split to 50 grams and then analyzed by standard fire assay. Composites presented in the assay results tables include intervals with a grade - thickness equal or greater than 10 grams of gold per tonne - metre ("g/t.m") with a minimum grade of 0.8 g/t Au over a 1 m minimum width with a maximum internal dilution of 2 m. No assays results were capped.

About Avnel Gold

Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company's focus is to develop its 80%-owned Kalana Main Project from a small underground mine into a low-cost, open pit mining operation. The Company is also advancing several nearby satellite deposits on the 387 km2 30-year Kalana Exploitation Permit.

On March 31, 2014, the Company reported a Mineral Resource estimate and the results of a Preliminary Economic Assessment ("PEA") prepared by Snowden Mining Industry Consultants. The PEA outlines a 14-year open-pit mine life at the Kalana Main Project recovering 1.46 million ounces of gold at an average "all-in sustaining cost" of $577 per ounce with an initial capital cost of $149 million. Utilising a gold price of $1,110 per ounce and a 10% discount rate, the PEA reported a net present value ("NPV") of $194 million after-tax and imputed interest, and an internal rate of return ("IRR") of 53% on a 100% project basis. The Company is now advancing the project to Definitive Feasibility, which is scheduled to be completed in the first quarter of 2016.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

CAUTIONARY STATEMENTS

Forward-Looking Statements

This news release includes certain "forward-looking statements". All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Avnel Gold's Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Preliminary Economic Assessment

The Kalana Main Preliminary Economic Assessment ("PEA") is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves; thus, there is no certainty that the economic benefits indicated in the PEA will be realised. The PEA is subject to a number of assumptions, including, among others that an Environmental and Social Impact Assessment ("ESIA") will be completed within the required timeline, all required permits will be obtained in a timely manner, the company will continue to have the support of local community, a constant regulatory environment and no material increase occurs to the estimated costs. The Kalana Main PEA is based upon an 8.54 million tonne Indicated Mineral Resource grading 4.53 g/t Au containing 1.25 million ounces and a 2.09 million tonne Inferred Mineral Resource grading 3.76 g/t Au containing 0.25 million ounces utilising a cut-off grade of 0.9 g/t Au. The PEA also includes 0.66 million tonnes of tailings grading 1.80 g/t Au that are classified as an Indicated Mineral Resource. Investors are cautioned not to assume that all or any portion of the Mineral Resource will ever be converted into a Proven and Probable Mineral Reserve. The NI 43-101-compliant technical report for the PEA and the Mineral Resource Estimate was prepared by Allan Earl, Executive Consultant, and Ivor Jones, Executive Consultant, of Snowden Mining Industry Consultants, each of whom are independent Qualified Persons, as defined in NI 43-101. The PEA was filed on SEDAR (www.sedar.com) on March 31, 2014.

TECHNICAL INFORMATION

Except where indicated, the disclosure contained or incorporated into this press release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101)" compliant technical report titled "Kalana Mineral Resource Estimate and Preliminary Economic Assessment - Mali, NI 43-101 Technical Report" dated effective 31 March 2014 (the "Kalana Technical Report"), prepared by Snowden Mining Industry Consultants Pty Ltd. ("Snowden"). The Kalana Technical Report was prepared by Mr. Allan Earl, Executive Consultant, and Mr. Ivor W.O. Jones, Executive Consultant, both of Snowden at that time. Both Mr. Allan Earl and Mr. Ivor W.O. Jones are independent "Qualified Persons" as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, the Kalana Main Project, and the underground Kalana Gold Mine. The Kalana Technical Report, which constitutes the current technical report for the Kalana Main Project, was filed on SEDAR on March 31, 2014 and is available for review at www.sedar.com.

Information of an economic, scientific, or technical nature in this press release regarding the March 2015 Mineral Resource estimates (the "March 2015 MRE"), as defined above, is summarised or extracted from reports prepared by Denny Jones Pty Ltd ("Denny Jones"). The March 2015 MRE has an effective date of March 19, 2015 and was prepared by Ivor W.O. Jones, Principal Consultant, at Denny Jones.

The Mineral Resources reported in this press release have been classified as Indicated or Inferred Mineral Resources within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. The Mineral Resources may be affected by further infill and exploration drilling that may result in increases or decreases in subsequent resource estimates. The Mineral Resource may also be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic, and other factors. Grade has been estimated using Multiple Indicator Kriging ("MIK"). Actual recoveries of mineral products may differ from reported Mineral Reserves and Mineral Resources estimates due to inherent uncertainties in acceptable estimating techniques. In particular, Inferred Mineral Resources have a great amount of uncertainty as to their existence, economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category of Mineral Resource. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of the mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.

Information of a scientific or technical nature in this press release arising since the date of the Kalana Technical Report, excluding the September 2014 MRE (as defined in the Company's news release dated October 15, 2014) and March 2015 MRE, has been prepared under the supervision of Mr. Roy Meade, the Company's President, and Dr. Olivier Féménias, the Company's Vice-President, Geology, both of whom are non-independent "Qualified Persons" as such term is defined in NI 43-101.

NON-IFRS MEASURES

"Cash Operating Costs" is a non-GAAP and non-IFRS measure that does not have a standardised meaning prescribed by GAAP or IFRS and there may be some variation in the method of computation to other similarly titled measures of other gold mining companies. "Cash Operating Costs" is calculated as reported Production Costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces sold to arrive at "Operating Cash Costs Per Ounce Sold".

"All-in Sustaining Cost Per Ounce" is a non-GAAP and non-IFRS measure that does not have a standardised meaning prescribed by GAAP or IFRS and there may be some variation in the method of computation to other similarly titled measures of other gold mining companies. In the PEA, Snowden calculates "All-in Sustaining Cost" is defined as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community and environmental costs, plus closure costs. These costs are then divided by the number of ounces produced to arrive at "All-in Sustaining Cost Per Ounce".

To view FIGURES 1, 2, and 3, please visit the following link: http://avnelgold.com/wp-content/uploads/News/2015/20150714-AVK-Figures-01-03.pdf.

Table 1: Kalana Main Drilling Lines N000 and S050 - Select Composite Intervals
Includes intervals >10 g/t-m, cut-off of 0.8 g/t Au, maximum 2m of internal dilution, no assays are capped
Hole
ID
From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
g/t-m Comment Line
KA-SOM-RCDD003 Abandoned N000
KA-SOM-RCDD003A 24 32 8 1.5 11.8 N000
KA-SOM-RCDD005 112 118 6 2.6 15.4 S050
274 278 4 2.9 11.7
KA-SOM-RCDD006 0 5 5 4.6 22.9 inc 1m@20.1g/t S050
79 85 6 2.6 15.6
282 285 3 5.4 16.2 inc 1m@10.4g/t
379 385 6 10.3 61.9 inc 1m@54.1g/t
KA-SOM-RCDD007* 211 222 11 7.8 85.5 inc 1m@53.1g/t N000
227 243 16 2.1 34.0 and 1m@19.8g/t
258 266 8 2.0 15.9
318 321 3 5.3 15.9 inc 1m@10.4g/t
KA-SOM-RCDD008 Abandoned N000
KA-SOM-RCDD008A Abandoned N000
KA-SOM-RCDD008B* 316 317 1 16.1 16.1 N000
349 355 6 5.0 30.3 inc 1m@18.1g/t
KA-SOM-RCDD009* No intervals N000
(1) Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
(2) Numbers in bold represent intervals greater than 30 grams/tonne-metres (30 g/t-m)
(3) "*" denotes that additional assays from these holes are pending
Table 2: Kalana Main Drilling Lines N000 and S050 - Drill Hole Data
Hole ID Easting Northing Length Dip Azimuth Type Section
KA-SOM-RCDD003 587187 1193091 21 -60 344 RC-DD N000
KA-SOM-RCDD003A 587188 1193092 291 -60 344 RC-DD N000
KA-SOM-RCDD005 587305 1193080 354 -60 254 RC-DD S050
KA-SOM-RCDD006 587387 1193104 429 -60 254 RC-DD S050
KA-SOM-RCDD007 587289 1193117 342 -60 254 RC-DD N000
KA-SOM-RCDD008 587378 1193141 15 -60 254 RC-DD N000
KA-SOM-RCDD008A 587377 1193138 2 -60 254 RC-DD N000
KA-SOM-RCDD009 587476 1193175 444 -60 254 RCDD N000
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RC = reverse circulation drill hole, DD = diamond drill hole
Table 3: Kalana Main Central Infill Drilling - Select Composite Intervals
Includes intervals >10 g/t-m, cut-off of 0.8 g/t Au, maximum 2m of internal dilution, no assays are capped
Hole
ID
From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
g/t-m Comment Line
KA-SOM-RC583 5
22
64
13
33
79
8
11
15
3.3
1.5
6.0
26.4
16.7
90.6
inc 1m@15.4g/t

inc 1m@21.8g/t &
1m@55.9g/t
W445
KA-SOM-RC638 9 14 5 3.1 15.3 inc 1m@10.2g/t W340
26 27 1 16.3 16.3
31 43 12 2.6 31.1 inc 1m@12.4g/t
52 53 1 21.8 21.8
121 122 1 14.8 14.8
47 164 17 2.4 40.1
KA-SOM-RC639 149 161 12 1.8 21.7 inc 1m@10.2g/t W340
KA-SOM-RC641 No intervals
KA-SOM-RC642 0
39
5
44
5
5
3.7
2.1
18.3
10.7
W280
KA-SOM-RC645 2
24
15
39
13
15
0.8
1.7
10.9
26.2
W386
KA-SOM-RC646 24
72
133
31
76
142
7
4
9
3.2
4.1
1.4
22.6
16.4
12.2
Inc 1m@12.7g/t W386
KA-SOM-RC647 47 49 2 6.7 13.3 inc 1m@12.35g/t W600
(1) Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
(2) Numbers in bold represent intervals greater than 30 grams/tonne-metres (30 g/t-m)
Table 4: Kalana Main Central Infill Drilling- Drill Hole Data
Hole ID Easting Northing Length Dip Azimuth Type Section
KA-SOM-RC583 587163 1193191 200 -60 344 RC W445
KA-SOM-RC638 587256 1193236 172 -60 344 RC W340
KA-SOM-RC639 587245 1193259 168 -60 344 RC W340
KA-SOM-RC641 587305 1193253 145 -60 344 RC W280
KA-SOM-RC642 587299 1193276 142 -60 344 RC W280
KA-SOM-RC645 587217 1193218 170 -60 344 RC W386
KA-SOM-RC646 587203 1193236 160 -60 344 RC W386
KA-SOM-RC647 587197 1193259 150 -60 344 RC W386
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RC = reverse circulation drill hole, DD = diamond drill hole
Table 5: Kalana Main North Central Infill and Extension Drilling - Select Composite Intervals
Includes intervals >10 g/t-m, cut-off of 0.8 g/t Au, maximum 2m of internal dilution, no assays are capped
Hole
ID
From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
g/t-m Comment Line
KA-SOM-DD173 No intervals W340
KA-SOM-DD174 No intervals W340
KA-SOM-RC541 No intervals W312
KA-SOM-RC542 3 11 8 1.6 13.2 W360
96 106 10 1.6 16.3 comp 74m@2.0g/t
110 138 28 2.5 68.9
141 161 20 2.4 49.0
165 170 5 2.4 11.8 End of Hole
KA-SOM-RC543 No intervals W360
KA-SOM-RC634 5 31 26 1.1 29.4 W510
36 45 9 1.4 12.2 W510
KA-SOM-RC648 51 58 7 5.2 36.6 inc 1m@26.6g/t W340
142 143 1 17.3 17.3
KA-SOM-RC649 Abandoned W340
KA-SOM-RC649A Abandoned W340
KA-SOM-RC649B 28 33 5 10.4 51.8 inc 1m@41.2g/t W340
142 157 15 1.4 20.6
KA-SOM-RC650 No intervals W340
KA-SOM-RC651 96 104 8 1.8 14.1 W340
119 126 7 1.7 12.1
KA-SOM-RC652 No intervals W280
KA-SOM-RC653 No intervals W280
KA-SOM-RC654 174 180 6 1.7 10.2 W280
KA-SOM-RC655 No intervals W280
KA-SOM-RC655A 154 161 7 1.4 10.1 W280
(1) Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
(2) Numbers in bold represent intervals greater than 30 grams/tonne-metres (30 g/t-m)
Table 6: Kalana Main North Central Infill and Extension Drilling - Drill Hole Data
Hole ID Easting Northing Length Dip Azimuth Type Section
KA-SOM-DD173 587139 1193720 111 -60 344 DD W310
KA-SOM-DD174 587154 1193669 120 -60 344 DD W310
KA-SOM-RC541 587164 1193647 170 -60 344 RC W312
KA-SOM-RC542 587138 1193551 170 -60 344 RC W360
KA-SOM-RC543 587168 1193486 190 -60 344 RC W360
KA-SOM-RC634 587013 1193473 162 -60 344 RC W510
KA-SOM-RC648 587179 1193506 200 -60 344 RC W340
KA-SOM-RC649 587172 1193524 12 -60 344 RC W340
KA-SOM-RC649A 587172 1193525 18 -60 344 RC W340
KA-SOM-RC649B 587171 1193527 193 -60 344 RC W340
KA-SOM-RC650 587166 1193548 170 -60 344 RC W340
KA-SOM-RC651 587158 1193563 150 -60 344 RC W340
KA-SOM-RC652 587247 1193481 210 -60 344 RC W280
KA-SOM-RC653 587228 1193517 210 -60 344 RC W280
KA-SOM-RC654 587222 1193539 195 -60 344 RC W280
KA-SOM-RC655 587216 1193562 30 -60 344 RC W280
KA-SOM-RC655A 587215 1193564 180 -60 344 RC W280
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RC = reverse circulation drill hole, DD = diamond drill hole
Table 7: Kalana Main Western Extension Drilling - Select Composite Intervals
Includes intervals >10 g/t-m, cut-off of 0.8 g/t Au, maximum 2m of internal dilution, no assays are capped
Hole
ID
From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
g/t-m Comment Line
KA-SOM-DD165 40 44 4 8.7 34.8 inc 1m@31.4g/t W600
KA-SOM-DD167 46 47 1 12.5 12.5 W600
KA-SOM-DD168 No Intervals W600
KA-SOM-DD169 No Intervals W600
KA-SOM-RCDD001 10 18 8 7.8 62.6 inc 1m@56.3g/t W600
39 50 11 1.9 21.2 W600
KA-SOM-RCDD002 No Intervals W650
(1) Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
Table 8: Kalana Main Western Extension Drilling - Drill Hole Data
Hole ID Easting Northing Length Dip Azimuth Type Section
KA-SOM-DD165 587004 1193155 213 -60 344 DD W600
KA-SOM-DD167 586983 1193252 154 -60 344 DD W600
KA-SOM-DD168 586963 1193362 84 -60 344 DD W600
KA-SOM-DD169 586944 1193400 64 -60 344 DD W600
KA-SOM-RCDD001 587031 1193102 195 -60 344 RC-DD W600
KA-SOM-RCDD002 586978 1193091 111 -60 344 RC-DD W650
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RC = reverse circulation drill hole, DD = diamond drill hole
Table 9: Kalana Main Eastern Extension Drilling - Select Composite Intervals
Includes intervals >10 g/t-m, cut-off of 0.8 g/t Au, maximum 2m of internal dilution, no assays are capped
Hole
ID
From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
g/t-m Comment Line
KA-SOM-DD172 No intervals N400
KA-SOM-DD175 271 274 3 174.0 522.1 inc 1m@518.4g/t N100
134 139 5 2.6 12.8 N100
KA-SOM-DD176 No intervals S150
KA-SOM-DD177 No intervals S200
KA-SOM-RC556 229 237 8 4.1 33.2 inc 1m@11.71g/t N175
KA-SOM-RC564 No intervals N200
KA-SOM-RC566 No intervals N200
KA-SOM-RC580 67 68 1 27.1 27.1 N100
KA-SOM-RC582 No intervals N100
KA-SOM-RCDD010* No intervals N350
KA-SOM-RCDD011 254 256 2 10.7 21.4 N140
(1) Due to the exploratory nature of this program and the variable orientations of the high-grade mineralized zones, the intersections presented herein may not necessarily represent the true width of mineralization
(2) "*" denotes that additional assays from these holes are pending
Table 10: Kalana Main Eastern Extension Drilling - Drill Hole Data
Hole ID Easting Northing Length Dip Azimuth Type Section
KA-SOM-DD172 587275 1193552 121 -60 254 DDTT N400
KA-SOM-DD175 587649 1193341 309 -60 254 DDTT N100
KA-SOM-DD176 588078 1193208 243 -60 254 DDTT S150
KA-SOM-DD177 588115 1193172 261 -60 254 DD S200
KA-SOM-RC556 587510 1193386 260 -60 254 RC N175
KA-SOM-RC564 587592 1193448 139 -60 254 RC N200
KA-SOM-RC566 587541 1193432 120 -60 254 RC N200
KA-SOM-RC580 587793 1193384 228 -60 254 RC N100
KA-SOM-RC582 587697 1193356 187 -60 254 RC N100
KA-SOM-RCDD010 587439 1193540 297 -60 254 RCDD N350
KA-SOM-RCDD011 587605 1193381 300 -60 254 RCDD N140
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RC = reverse circulation drill hole, DD = diamond drill hole


Avnel Gold Mining Limited
Howard Miller
Chairman and CEO
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howard@hbmiller.co.uk

Avnel Gold Mining Limited
Jeremy Link
Vice-President, Corporate Development
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jlink@avnelgold.com
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