Avion Gold adds heft to gold resource base

With two updated resources in as many months from its main exploration projects, Avion Gold (TSX: AVR), a West Africa-focused miner, boosted gold resources by some 1.1 million indicated ounces and 500,000 inferred ounces.

First, this past December, Avion updated the Hounde project in Burkina Faso, growing indicated resources by leaps and bounds to 893,000 ounces gold @ 2.07 g/t, from 63,000 ounces gold @ 2.33 g/t. Avion also added 165,000 ounces to the inferred category bringing it to 712,000 ounces gold @ 2.07 g/t.

Then, as outlined in a press release earlier this morning, Avion updated resources at the Kofi project in Mali. Avion added 299,407 ounces gold to the indicated category, which now stands at 499,700 ounces gold @ 2.25 g/t, and 334,000 ounces gold to the inferred category for 702,000 ounces gold @ 1.77 g/t.

The chart below shows the growth in gold ounces over Avion’s resource base as it stood in late 2011 before the latest resource updates. Back then Avion had outlined 913,100 ounces gold in proven and probable reserves, 486,800 ounces gold in measured and indicated resources, and 1.9 million ounces gold in inferred resources, at a cut-off between 1 and 2 g/t gold.

The updated resources have clearly elevated Avion’s resource base both adding new ounces and increasing confidence in the modeling of others. This could bode well for Avion’s long term goal to expand production beyond its Tabakoto and Segala mines in Mali, where it plans to double production over the next couple years to around 200,000 ounces. – Mineweb

Tags: Avion Gold, Gold, Gold mining, Gold mining companies, Gold mining industry

Posted by admin on Jan 17 2012. Filed under Gold mining. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry