TIDMAVM
RNS Number : 0041D
Avocet Mining PLC
16 March 2011
Avocet Mining PLC
AVOCET INTERSECTS 59 METRES @ 4.95 G/T AU
AT KOULEKOUN, GUINEA
Avocet Mining PLC ("Avocet" or "the Company") announces
significant results from the initial follow-up two holes drilled at
the Koulekoun gold deposit ("Koulekoun"), in the 100 per cent owned
Tri-K Block of permits that cover 986 square kilometres in
northeast Guinea. The Tri-K Block of permits comprises the
Kodieran, Koulekoun and Kodiafaran prospects. Initial drilling
results from over 4,000 metres of drilling were reported for the
Kodieran prospect, approximately 20 kilometres south of Koulekoun,
on 28 February 2011.
The results and observations below will add to the existing
Koulekoun Mineral Resource of 666,500 ounces.
Avocet has completed 27 reverse circulation ("RC") drill holes
(2,831 metres) and 24 RC holes with diamond tails ("RD") (5,535
metres) on the Koulekoun deposit since the fourth quarter of 2010.
Drilling is expected to continue until late April. To date, the
Company has received results for the first two drill holes (Table
1), which have been drilled beneath the core of the presently
defined mineralised zone, with the remaining results not expected
until the second quarter. The highlights include:
-- KLRD0001: 34 m @ 2.57 g/t Au from 94 m (incl. 24 m @ 3.38 g/t
Au) in wall rock strata
-- KLRD0001: 59 m @ 4.95 g/t Au from 277 m (incl. 38 m @ 7.22
g/t Au) in porphyry
-- KLRD0002: 91 m @ 2.75 g/t Au from 194 m (incl. 5 m @ 3.98 g/t
Au, 4 m @ 5.46 g/t Au, 2 m @ 13.7 g/t Au, 2 m @ 18.0 g/t Au, 6.1 m
@ 5.12 g/t Au & 11 m @ 3.32 g/t Au) in porphyry
Koulekoun has Indicated Mineral Resources of 12.7 Mt @ 1.55 g/t
Au (632,000 ounces gold) and Inferred Mineral Resources of 0.7 Mt @
1.49 g/t Au (34,500 ounces gold) at a 0.5 g/t Au cut off based on
19,208 metres of close-spaced RC and diamond drilling conducted by
the previous owner, Wega Mining, during 2006, 2007 and 2008. The
Mineral Resource is hosted in a 40-80 metre thick, steeply dipping
zone of north-northwest striking porphyry dykes that has been
tested over a strike length of 600 metres and to a vertical depth
of 175 metres (refer to Figure 1). The core of the presently
defined mineralised zone occurs where a northeast striking
structure intersects the porphyry dykes. Avocet is drilling on 50
metre spaced east-west oriented fences to test the continuity of
the resource over a strike length of 1,300 metres and to a vertical
extent of 250 metres below surface.
The results from the first two holes are significant as they
confirm that the main zone of porphyry-hosted gold mineralisation
continues as a broad body to depth and that the general tenor of
mineralisation remains in the 2 to 5 g/t Au range. Furthermore, the
intersection of significantly mineralised wall rock strata in the
hanging wall to the main zone along the northeast-striking
structure adds a new zone of previously unrecognised
mineralisation. To date, the drilling has also shown that there are
several mineralised porphyry intrusions that are parallel to the
main zone.
A review of the drill chips and core has shown that gold
mineralisation is associated with
quartz-carbonate-pyrite-arsenopyrite veins and veinlets within
broad zones of pervasive silica-carbonate altered porphyry. The
mineralised rock is massive and relatively unfractured. The wall
rock sequence of turbidites also hosts zones of disseminated
arsenopyrite with some visible gold in quartz-carbonate veins in
the hanging wall and footwall of the mineralized porphyry
dykes.
Avocet is expecting to receive additional drilling results in
the coming weeks and plans to announce an updated Mineral Resource
estimate for Koulekoun in Q2 2011.
Commenting on the initial drilling results at Koulekoun, Brett
Richards, Chief Executive Officer for Avocet, stated:
"These early results indicate that Koulekoun is an even more
promising prospect than suggested by the historic drilling data.
Avocet looks forward to publishing further drilling results and the
resource update, due in the second quarter, which should show that
we are well on the way to advancing this prospect towards the
feasibility stage. Our drilling programmes in both Guinea and
Burkina Faso have so far provided us with greater confidence that
we have multiple gold targets with significant potential in West
Africa, which we will continue to explore over the coming
months."
The information in this announcement that relates to Exploration
Results is based on information reviewed and audited by Mr Peter
Flindell (MAusIMM), Executive Vice President of Exploration for
Avocet. Mr Flindell has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration to
qualify as a Qualified Person as defined by the Canadian National
Instrument 43-101 for the reporting of Exploration Results, Mineral
Resources and Mineral Reserves (NI 43-101) and as a Competent
Person as defined by the Australian JORC Code (2004) for the
reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Flindell consents to the inclusion of the technical
information in this announcement in the form and context in which
it appears.
All holes were angled at -55 degrees towards the west at an
average depth of 350 metres with the deepest at 386 metres. Samples
were submitted to SGS Laboratory in Siguiri, Guinea for Fire Assay
using a 50 gram charge.
For further information please
contact:
Ambrian
Avocet Buchanan Partners J.P. Morgan Arctic
Mining PLC Communications Limited Cazenove Securities
NOMAD and
Financial PR Joint Financial
Consultants Broker Lead Broker Adviser
Brett
Richards,
CEO Mike
Norris, FD
Hans-Arne
L'orange,
EVP Business Arne
Development Bobby Morse Samantha Michael Wenger
& Investor Katharine Harrison Wentworth-Stanley Petter
Relations Sutton Jen Boorer Neil J Passmore Bakken
+44 20 7766 +44 20 7466 +44 20 7634 +47 2101
7676 5000 4700 +44 20 7588 2828 3100
www.avocet. www.buchanan.u www.ambria www.jpmorgancazen www.arctic
co.uk k.com n.com ove.com sec.no
Notes to Editors
Avocet Mining PLC ("Avocet" or "the Company") is a gold mining
company listed on the AIM market of the London Stock Exchange
(Ticker: AVM.L) and the Oslo Bors (Ticker: AVM.OL). The Company's
principal activities are gold mining and exploration in Burkina
Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as
100 per cent owner of the Penjom gold mine, the country's largest
gold producer) and Indonesia (as 80 per cent owner of the North
Lanut gold mine and Bakan project in North Sulawesi).
In December 2010 Avocet announced that it had signed a binding
agreement for the conditional sale of its South East Asian assets
to J&Partners L.P, a private company, for US$200 million. The
transaction with J&Partners will leave Avocet as a West African
gold producer with a clear strategy for growth in that region.
Further details can be found in the press release dated 24 December
2010 and in the Company's preliminary results statement for 2010,
dated 22 February 2011.
Background to operations
The Inata deposit presently comprises a Mineral Resource of 1.84
million ounces and a Mineral Reserve of 1.08 million ounces. Inata
poured its first gold in December 2009 and has now reached a
production rate in excess of 13,500 ounces per month. Other assets
in West Africa include exploration permits in Burkina Faso (the
most advanced being the Souma trend at Belahouro, some 20
kilometres from Inata, with a Mineral Resource of 561,100 ounces),
Guinea and Mali (the most advanced being the Tri-K group of permits
in Guinea with a Mineral Resource of 666,500 ounces).
Penjom is Malaysia's largest gold mine and was developed by
Avocet in an area of historic alluvial mining. The mine is located
in Pahang State, approximately 120 km north of the country's
capital, Kuala Lumpur.
North Lanut in North Sulawesi, Indonesia, was developed by
Avocet from the exploration stage. The mine is located within a
Contract of Work, which includes exploration and mining rights over
approximately 50,000 hectares in an area highly prospective for
gold. Avocet holds an 80 per cent interest and an Indonesian
company, PT Lebong Tandai, owns the remaining 20 per cent.
Figure 1 -Koulekoun Drill SECTION
http://www.rns-pdf.londonstockexchange.com/rns/0041D_-2011-3-15.pdf
TABLE 1 - SUMMARY OF DRILLHOLE INTERCEPTS AT KOULEKOUN,
GUINEA
Grade
Hole EOH From To Width (g/t
ID East North RL Az Dip (m) (m) (m) (m) Au) Including
---------- -------- ---------- ---- ---- ---- ------ ------ ------ ------ ------ ------------------
KLRD0001 508,935 1,190,652 405 270 -55 385.8 6 9 3 0.55
16 19 3 0.86
23 31 8 1.93 1m @ 10.5 g/t Au
50 52 2 1.04
57 58 1 4.67
69 73 4 0.82
76 82 6 3.90 1m @ 18.8 g/t Au
86 88 2 1.63
94 128.0 34.0 2.57 24m @ 3.38 g/t Au
131.0 165.0 34.0 1.03 1m @ 9.97 g/t Au
172.0 178.0 6.0 0.48
181.0 182.0 1.0 19.1
189.0 190.0 1.0 0.77
196.0 198.0 2.0 1.16
1m @ 2.80 g/t Au
& 3m @ 2.88 g/t
206.0 219.0 13.0 1.30 Au
229.0 239.0 10.0 0.56
257.0 261.0 4.0 0.66
264.0 265.0 1.0 0.58
270.0 274.0 4.0 0.70
277.0 336.0 59.0 4.95 38m @ 7.22 g/t Au
340.0 355.0 15.0 0.94 3m @ 1.93 g/t Au
372.0 373.0 1.0 0.58
KLRD0002 508,941 1,190,605 403 270 -55 333.4 7 8 1 1.63
11 12 1 0.71
28 29 1 0.70
55 58 3 0.95
62 65 3 0.55
71 76 5 0.37
79 83 4 1.04 1m @ 2.08 g/t Au
94 96 2 0.78
99.0 102.6 3.6 0.87
111.4 115.0 3.6 0.62
124.0 126.0 2.0 0.78
142.0 144.0 2.0 0.70
157.0 158.0 1.0 0.55
174.0 177.0 3.0 0.89
180.3 182.0 1.7 0.65
5m @ 3.98 g/t Au,
4m @ 5.46 g/t Au,
2m @ 13.7 g/t Au,
2m @ 18.0 g/t Au,
6.1m @ 5.12 g/t
Au & 11m @ 3.32
194.0 285.0 91.0 2.75 g/t Au
1m @ 2.02 g/t Au
&1m @ 2.51 g/t
289.0 302.0 13.0 0.95 Au
310.0 311.0 1.0 2.57
330.0 331.0 1.0 2.17
Notes: Individual gold assays have a top cut of 30 g/t Au and a
lower cut of 0.5 g/t Au for intercept calculations
Maximum internal waste allowed is 2m and minimum mineralised
interval is 1m
All holes are drilled from surface using conventional reverse
circulation drilling techniques with diamond tails drilled by
triple tube wireline diamond drilling.
All holes are drilled by AMCO Drilling, a recognised independent
drilling contractor.
All samples have been prepared and analysed by SGS Laboratories
in Siguiri, Guinea
Gold has been analysed by fire assay using a 50 gram charge
All sample batches have passed Avocet's QAQC protocols
This information is provided by RNS
The company news service from the London Stock Exchange
END
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