Avnel Intersects 29.7 g/t Au over 11 m and 22.6 g/t over 15 m in drilling at Kalanako

Share Email this page  |  Print page  |  Share Share this page
 

SAINT PETER PORT, GUERNSEY--(Marketwired - March 9, 2017) - Avnel Gold Mining Limited ("Avnel" or the "Company") (TSX:AVK) is pleased to report new results of the 2016 Kalanako drilling programme with the receipt of the remainder of outstanding assays. The drill programme objective is to provide additional information in support of an updated Mineral Resource Estimate for its Kalanako prospect in south-western Mali, West Africa.

Located less than 3 km northeast of the Kalana Main Project proposed in the Kalana OFS-DFS, the Kalanako prospect is an old area of traditional mining activity with a March 2015 Mineral Resource Estimate of an Inferred in-situ resource of 0.07 Moz (0.38 Mt grading 5.55 g/t Au). The high-grade and close proximity makes Kalanako our highest priority advanced stage exploration target with the potential to become a high-grade open-pit supplemental satellite deposit delivering additional ore to the Kalana Main operation, which could help increase average gold production or extend the mine life.

Kalanako Drill Programme Highlights:

  • All assay have been received, updated geological model is in progress.
  • Infill drilling continues to deliver high grades over long intersections in the South-East and in the North-West Zones
  • New High-grade gold mineralization intersected in the Central and Central South and Central North Zones outside the main resource pit shells

Howard Miller, Avnel's Chairman and CEO said, "I am pleased to report that we have now received all the assays from the 2016 drilling programme successfully concluded at the Kalanako deposit. These new results from the remainder of our 2016 drill program at Kalanako are very encouraging as being essentially located outside the existing resource pits. Infill results in the North West should support the conversion of a large part of this inferred resource into Measured and indicated categories. The geological model is being updated and we are now looking forward to a new Mineral Resource Estimate in mid-April."

New Exploration Results from Kalanako Deliver Positive Results

The results reported in this news release reflect the second and third batches of assays from 60 holes over 6,447m from a total programme of 82 holes over 8,635m. These second and third batches represent nearly three-quarter of the total drill programme (holes RC226 to RC285). Maps of the general layout of the drill program, the location of individual drill holes and significant intersections is provided in figures 1 (A & B) and 2 near the end of this news release. Drill hole locations for the entire drill program, IAMGOLD's 2010 to 2012 and Avnel's 2016 drill programmes, and geophysical gradient IP are respectively presented in figures 2 and 3. Select composite assays and related drill hole information is presented in the tables at the end of this news release.

Results reported in the existing MRE pit shells (North West and South East Zones) are encouraging and should support the conversion of a large part of the Inferred Resource into Measured or Indicated categories. High grade results reported outside the existing MRE pit shells (Central and Central South and Central North Zones) provide a significant opportunity to improve known mineralisation into large portions of the bock model that were not classified as resources.

Significant intervals (>25g/t.m) from the South-East Zone (inside the main 2015 resources pit shells):

  • KO-SOM-RC230: 6.7 g/t Au over 13 m
    Including: 73.8 g/t Au over 1 m
    and: 2.4 g/t Au over 29 m
    Including: 11.6 g/t Au over 1 m and 13.9 g/t Au over 1 m
  • KO-SOM-RC231: 1.2 g/t Au over 39 m
    and: 7.3 g/t Au over 4 m
    Including: 20.6 g/t Au over 1 m
  • KO-SOM-RC232: 2.3 g/t Au over 11 m

Significant intervals (>25g/t.m) from the Central South and Central Zones (outside the main 2015 resources pit shells):

  • KO-SOM-RC236: 14.6 g/t Au over 2 m
  • KO-SOM-RC239: 4.5 g/t Au over 6 m
    Including: 20.6 g/t Au over 1 m
  • KO-SOM-RC240: 29.7 g/t Au over 11 m
    Including: 154 g/t Au over 2 m

Significant intervals (>25g/t.m) from the Central North Zone (outside the main 2015 resources pit shells):

  • KO-SOM-RC253: 22.6 g/t Au over 15 m
    Including: 155 g/t Au over 2 m
  • KO-SOM-RC254: 1.6 g/t Au over 20 m
    Including: 12.1 g/t Au over 1 m

Significant intervals (>25g/t.m) from the North West Zone (inside the main 2015 resources pit shells):

  • KO-SOM-RC261: 3.7 g/t Au over 25 m
    Including: 30.7 g/t Au over 2 m
  • KO-SOM-RC262: 3.9 g/t Au over 15 m
    Including: 12.4 g/t Au over 1 m
    and: 15.4 g/t Au over 6 m
    Including: 38.0 g/t Au over 2 m
  • KO-SOM-RC264: 6.0 g/t Au over 27 m
    Including: 15.6 g/t Au over 8 m
  • KO-SOM-RC265: 2.0 g/t Au over 15 m
    Including: 13.4 g/t Au over 1 m

Significant intervals (>25g/t.m) from the South Zone (outside the main 2015 resources pit shells):

  • KO-SOM-RC272: 1.1 g/t Au over 25 m

A summary of select composite assays and drill hole information from the 2016 drilling campaign are presented in tables 1 and 2, respectively.

Regional Exploration:

As Avnel commences construction on Kalana Main we will be accelerating our regional geology programme to progress our portfolio of exploration targets. To date, only 3 of our 30 targets have been partially drill tested, all successful. Exploration work is being conducted to evaluate and rank our premier targets.

A first group of 4 prospects (Solomanina, Tonda, Bandiala, Kodialani which is the NW extension of Kalanako) have been selected for an advanced geochemical survey. Sampling grids (5 x 5 or 10 x 10m) have been implemented to sample the rejected quartz and tailing domes produced by historical and traditional mining activities in order to localise the ore shoot inside these large prospects. 1,100 grab samples and 3,500 tailing dome samples have been collected at Solomanina, Tonda and Bandiala; 320 grab samples and 1,070 tailing dome samples from Solomanina have been assayed and QAQC validated. First results are encouraging.

Exploration and QA/QC Programmes

Exploration programmes 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 as well as laboratory visit by senior geologists. Sample intervals are usually 1.0 m. Samples are prepared on site and collected by BIGS Global Burkina SARL ("BIGS Global") and transported to Ouagadougou in 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 0.1 g/t Au were prepared by BIGS Global and split to 50 grams and then analysed by standard Fire Assay. Composites presented in the assay results tables include intervals with a grade x thickness equal or greater than 5 grams of gold per tonne x metre ("g/t.m") with a minimum grade of 0.65 g/t Au over a 1 m minimum width with a maximum internal dilution of 3 m. No assay result was capped. Due to the exploratory nature of this programme the true width of the mineralisation has not been reported. The intersections presented herein may not represent the true width of mineralisation.

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, high-grade, open pit mining operation. The Company is also advancing exploration on several nearby satellite deposits on the 387 km2 30-year Kalana Exploitation Permit.

On January 9, 2017, the Company reported the results of an Optimized Feasibility Study ("OFS") prepared by Snowden Mining Industry Consultants. The OFS outlines an 18-year open-pit mine life at the Kalana Main Project recovering 1.82 million ounces of gold at an average "all-in sustaining cost" of $561 per ounce over the first five years of steady state production and $730 per ounce over the life of mine with an initial capital cost of $171 million. Utilising a gold price of $1,200 per ounce and a 5% discount rate, the DFS reported a net present value ("NPV") of $321 million after-tax and imputed interest, and an internal rate of return ("IRR") of 50% on a 100% project basis.

On March 30, 2016, the Company reported a Mineral Reserve estimate and the results of a Definitive Feasibility Study ("DFS") prepared by Snowden Mining Industry Consultants. The DFS outlines an 18-year open-pit mine life at the Kalana Main Project recovering 1.82 million ounces of gold at an average "all-in sustaining cost" of $595 per ounce over the first five years of steady state production and $784 per ounce over the life of mine with an initial capital cost of $196 million. Utilising a gold price of $1,200 per ounce and a 5% discount rate, the DFS reported a net present value ("NPV") of $257 million after-tax and imputed interest, and an internal rate of return ("IRR") of 38% on a 100% project basis

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 most recently completed 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.

Technical Information

Except where indicated, the disclosure contained or incorporated into this news 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("NI43-101") compliant technical report titled "NI43-101 Technical Report on Kalana Main Project", dated effective 30 March 2016 (the "Kalana Technical Report"), prepared by Snowden Mining Industry Consultants (Pty) Ltd. ("Snowden"), Denny Jones Ltd ("Denny Jones"), DRA Projects SA (Pty) Ltd ("DRA") and Epoch Resources (Pty) Ltd ("Epoch Resources"). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant - Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant - Applied Geosciences of Denny Jones (Pty) Limited), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant -Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant -Environmental and Social of Epoch Resources), all of whom 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, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016.

Table 1A: Kalanako Drilling (batch 2) - Select Composite Intervals
Includes intervals >5 g/t.m, cut-off of 0.65 g/t Au, maximum 3m of internal dilution, no assay are capped

Drill Hole ID From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
Metal
(g/t.m)
Comment Zone
KO-SOM-RC226 No significant interval Central S
KO-SOM-RC227 No significant interval Central S
KO-SOM-RC228 88 92 4 2.41 9.7 Central S
KO-SOM-RC229 37 44 7 3.15 22.0 inc 1m@15.1g/t SE
KO-SOM-RC230 79 92 13 6.73 87.5 inc 1m@73.8g/t SE
KO-SOM-RC230 97 126 29 2.36 68.4 inc 1m@11.6g/t and 1m@13.9g/t SE
- 58 71 13 1.70 22.1 SE
KO-SOM-RC231 35 74 39 1.24 48.5 SE
- 80 84 4 7.34 29.3 inc 1m@20.6g/t SE
- 12 13 1 7.99 8.0 SE
KO-SOM-RC232 94 105 11 2.26 24.9 inc 1m@12.1g/t SE
- 38 47 9 0.78 7.0 SE
KO-SOM-RC233 74 78 4 3.52 14.1 inc 1m@10.1g/t SE
KO-SOM-RC234 41 50 9 0.79 7.1 inc 4m@0.27g/t SE
- 7 17 10 0.63 6.3 inc 4m@0.31g/t SE
KO-SOM-RC235 6 9 3 2.73 8.2 SE
KO-SOM-RC236 46 48 2 14.62 29.2 Central S
KO-SOM-RC237 No significant interval Central
KO-SOM-RC238 76 80 4 1.41 5.6 Central
KO-SOM-RC239 37 43 6 4.49 26.9 inc 1m@20.6g/t Central
- 23 30 7 1.93 13.5 Central
KO-SOM-RC240 5 16 11 29.73 327.0 inc 2m@154g/t Central
KO-SOM-RC241 No significant interval Central
KO-SOM-RC242 96 106 10 1.37 13.7 Central
KO-SOM-RC242 110 120 10 0.64 6.4 Central
KO-SOM-RC243 53 77 24 0.75 17.9 Central
KO-SOM-RC244 No significant interval Central
KO-SOM-RC245 No significant interval Central
KO-SOM-RC246 64 74 10 1.16 11.6 Central
- 95 96 1 5.22 5.2 Central
KO-SOM-RC247 No significant interval Central
KO-SOM-RC248 No significant interval Central
KO-SOM-RC249 No significant interval Central
KO-SOM-RC250 No significant interval Central
KO-SOM-RC251 No significant interval Central N
(1) Due to the exploratory nature of this programme the true width of the mineralisation has not been reported, the intersections presented herein may not represent the true width of mineralisation.
(2) Numbers in bold represent intervals greater than 30 grams/tonne x metres (25 g/t.m)
(3) "BOH" denotes that the hole began in mineralisation
(4) "EOH" denotes that the hole ended in mineralisation

Table 1B: Kalanako Drilling (batch 3) - Select Composite Intervals
Includes intervals >5 g/t.m, cut-off of 0.65 g/t Au, maximum 3m of internal dilution, no assay are capped

Drill Hole ID From
(m)
To
(m)
Interval
(m)
Grade
(g/t Au)
Metal
(g/t.m)
Comment Zone
KO-SOM-RC252 No significant interval Central N
KO-SOM-RC253 59 74 15 22.57 338.6 inc 2m@155.4g/t Central N
KO-SOM-RC254 6 26 20 1.61 32.1 inc 1m@12.1g/t Central N
- 51 62 11 1.82 20.0 Central N
KO-SOM-RC255 46 51 5 2.14 10.7 Central N
KO-SOM-RC256 No significant interval Central N
KO-SOM-RC257 96 107 11 1.23 13.6 Central N
KO-SOM-RC258 45 56 11 1.11 12.2 Central N
KO-SOM-RC259 No significant interval Central N
KO-SOM-RC260 No significant interval Central N
KO-SOM-RC261 98 123 25 3.72 92.9 inc 2m@30.7g/t NW
KO-SOM-RC262 9 24 15 3.94 59.0 inc 1m@12.4g/t NW
- 39 45 6 15.40 92.4 inc 2m@38.0g/t NW
KO-SOM-RC263 115 124 9 1.39 12.5 NW
KO-SOM-RC264 23 50 27 5.99 161.6 inc 8m@15.6g/t NW
KO-SOM-RC265 115 130 15 1.96 29.3 inc 1m@13.4g/t NW
KO-SOM-RC266 No significant interval NW
KO-SOM-RC267 No significant interval NW
KO-SOM-RC268 No significant interval NW
KO-SOM-RC269 73 80 7 0.84 5.9 South
KO-SOM-RC270 20 25 5 4.74 23.7 inc 1m@18.6g/t South
KO-SOM-RC271 No significant interval South
KO-SOM-RC272 35 60 25 1.13 28.3 South
KO-SOM-RC273 No significant interval South
KO-SOM-RC274 No significant interval South
KO-SOM-RC275 No significant interval SE
KO-SOM-RC276 No significant interval SE
KO-SOM-RC277 No significant interval SE
KO-SOM-RC278 No significant interval SE
KO-SOM-RC279 No significant interval SE
KO-SOM-RC280 No significant interval SE
KO-SOM-RC281 No significant interval SE
KO-SOM-RC282 80 85 5 1.22 6.1 SE
KO-SOM-RC283 No significant interval SE
KO-SOM-RC284 No significant interval SE
KO-SOM-RC285 No significant interval SE
(1) Due to the exploratory nature of this programme the true width of the mineralisation has not been reported, the intersections presented herein may not represent the true width of mineralisation.
(2) Numbers in bold represent intervals greater than 30 grams/tonne x metres (25 g/t.m)
(3) "BOH" denotes that the hole began in mineralisation
(4) "EOH" denotes that the hole ended in mineralisation

Table 2A: Kalanako (batch 2) - Drill Hole Collar

Hole ID Easting (1) Northing (1) Length (m) Dip (°) Azimuth (°) Type (2) Line
KO-SOM-RC226 589714 1194950 67 -55 265 RCH 4950
KO-SOM-RC227 589754 1194950 75 -55 265 RCH 4950
KO-SOM-RC228 589779 1194904 103 -55 265 RCH 4900
KO-SOM-RC229 589825 1194950 145 -55 265 RCH 4950
KO-SOM-RC230 589949 1194925 130 -55 265 RCH 4925
KO-SOM-RC231 589923 1194925 97 -55 265 RCH 4925
KO-SOM-RC232 589900 1194932 140 -55 263 RCH 4925
KO-SOM-RC233 589874 1194934 115 -55 260 RCH 4925
KO-SOM-RC234 589847 1194931 135 -55 263 RCH 4925
KO-SOM-RC235 589833 1194933 115 -55 265 RCH 4925
KO-SOM-RC236 589699 1194975 78 -55 265 RCH 4975
KO-SOM-RC237 589650 1194975 145 -55 265 RCH 4975
KO-SOM-RC238 589624 1194975 105 -55 265 RCH 4975
KO-SOM-RC239 589599 1194988 60 -55 244 RCH 5000
KO-SOM-RC240 589579 1194999 93 -55 265 RCH 5000
KO-SOM-RC241 589626 1195025 99 -55 265 RCH 5025
KO-SOM-RC242 589599 1195024 160 -55 265 RCH 5025
KO-SOM-RC243 589574 1195025 120 -55 265 RCH 5025
KO-SOM-RC244 589549 1195025 81 -55 265 RCH 5025
KO-SOM-RC245 589524 1195024 50 -55 265 RCH 5025
KO-SOM-RC246 589550 1195049 117 -55 265 RCH 5050
KO-SOM-RC247 589524 1195077 130 -55 265 RCH 5075
KO-SOM-RC248 589502 1195081 93 -55 265 RCH 5075
KO-SOM-RC249 589499 1195082 63 -51 265 RCH 5075
KO-SOM-RC250 589485 1195049 69 -55 265 RCH 5050
KO-SOM-RC251 589433 1195049 91 -55 265 RCH 5050
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RCH = reverse circulation drill hole

Table 2B: Kalanako (batch 3) - Drill Hole Collar

Hole ID Easting (1) Northing (1) Length (m) Dip (°) Azimuth (°) Type (2) Line
KO-SOM-RC252 589450 1195074 129 -55 265 RCH 5075
KO-SOM-RC253 589421 1195073 111 -55 265 RCH 5075
KO-SOM-RC254 589399 1195075 91 -59 265 RCH 5075
KO-SOM-RC255 589349 1195125 103 -55 265 RCH 5125
KO-SOM-RC256 589329 1195150 81 -59 265 RCH 5150
KO-SOM-RC257 589348 1195175 117 -55 265 RCH 5175
KO-SOM-RC258 589298 1195175 69 -55 265 RCH 5175
KO-SOM-RC259 589254 1195175 105 -55 265 RCH 5175
KO-SOM-RC260 589231 1195176 111 -55 265 RCH 5175
KO-SOM-RC261 589225 1195225 175 -55 265 RCH 5225
KO-SOM-RC262 589174 1195225 105 -55 265 RCH 5225
KO-SOM-RC263 589175 1195275 165 -55 265 RCH 5275
KO-SOM-RC264 589124 1195275 105 -55 265 RCH 5275
KO-SOM-RC265 589114 1195325 141 -55 265 RCH 5325
KO-SOM-RC266 589073 1195325 105 -55 265 RCH 5325
KO-SOM-RC267 589035 1195376 105 -55 265 RCH 5375
KO-SOM-RC268 589010 1195373 81 -55 265 RCH 5375
KO-SOM-RC269 589750 1194825 111 -55 265 RCH 4825
KO-SOM-RC270 589725 1194825 75 -55 265 RCH 4825
KO-SOM-RC271 589790 1194775 105 -55 265 RCH 4775
KO-SOM-RC272 589764 1194775 91 -55 265 RCH 4775
KO-SOM-RC273 589824 1194725 126 -55 265 RCH 4725
KO-SOM-RC274 589849 1194701 129 -55 265 RCH 4700
KO-SOM-RC275 590218 1194675 159 -55 265 RCH 4675
KO-SOM-RC276 590193 1194675 138 -55 265 RCH 4675
KO-SOM-RC277 590174 1194724 105 -55 265 RCH 4725
KO-SOM-RC278 590148 1194728 135 -55 265 RCH 4725
KO-SOM-RC279 590099 1194725 75 -55 265 RCH 4725
KO-SOM-RC280 590074 1194750 93 -55 265 RCH 4750
KO-SOM-RC281 589805 1194975 75 -55 265 RCH 4975
KO-SOM-RC282 589829 1194975 111 -55 265 RCH 4975
KO-SOM-RC283 589855 1194975 146 -55 265 RCH 4975
KO-SOM-RC284 589904 1194975 147 -55 265 RCH 4975
KO-SOM-RC285 589775 1195000 51 -55 265 RCH 5000
(1) Collar coordinates in UTM Zone 29 WGS84 surveyed using a DGPS
(2) RCH = reverse circulation drill hole

To view Figure 1A: Kalanako mineralisations, 2016 campaign and batch 2 significant intercepts (>5g/t.m), please visit the following link: http://media3.marketwire.com/docs/1088302_Fig1A.pdf

To view Figure 1B: Kalanako mineralisations, 2016 campaign and batch 2 significant intercepts (>5g/t.m), please visit the following link: http://media3.marketwire.com/docs/1088302_Fig1B.pdf

To view Figure 2: Kalanako mineralisations, drilling pattern, maiden resource pit shells and Historical Traditional mining footprint, please visit the following link: http://media3.marketwire.com/docs/1088302_Fig2.pdf

To view Figure 3: Induced Polarisation (IP) gradient map highlighting the structural location of the Kalanako prospect and the area drilled to date, please visit the following link: http://media3.marketwire.com/docs/1088302_Fig3.pdf



Avnel Gold Mining Limited
Howard Miller
Chairman and CEO
+44 207 589 9082 or UK Mobile: +44 7768 696129
Canadian Mobile: +1 (416) 726 8174
howard@hbmiller.co.uk

Avnel Gold Mining Limited
Ian McDonald
Vice-President, Corporate Development
+1 647 407 2515
imcdonald@avnelgold.com
www.avnelgold.com