Avnel Reports that Diluted Pit-Constrained Indicated Resources Increase to 2.17 Million Ounces Grading 3.06 g/t Au at Kalana Main Deposit at $1,100/oz Gold
ST. PETER PORT, GUERNSEY, March 26, 2015 - Avnel Gold Mining Limited ("Avnel" or the "Company") (TSX:AVK) is announcing an updated Mineral Resource Statement for the Company's 80%-owned Kalana Project in south-western Mali. The Company is also announcing that a 141-hole, 23,500-metre ("m") drill program at the Kalana Main deposit is about to commence that is expected to provide for a steady flow of assay result related news in the coming months.
Highlights:
• Diluted Indicated Mineral Resource of 2.17 million ounces at the Kalana Main deposit (22.1 million diluted tonnes at a diluted grade of 3.06 g/t Au at a 0.9 g/t Au cut-off)
• Total Indicated Mineral Resources increased 67% to 2.15 million ounces since the PEA (15.2 million tonnes grading 4.40 g/t Au at a 0.9 g/t Au cut-off)
• Total Inferred Mineral Resource increased 24% to 0.38 million ounces since the PEA (2.18 million tonnes grading 5.33 g/t Au at a 0.9 g/t Au cut-off)
• An Exploration Target of 0.7 to 1.0 million ounces at the Kalana Main deposit (5.3 to 6.6 million tonnes grading between 3.9 and 4.7 g/t Au)
• Initial Inferred Mineral Resource of 70,000 ounces at the Kalanako satellite deposit (380,000 tonnes grading 5.55 g/t Au at a 0.9 g/t Au cut-off)
• 141-hole drill program to expand and infill zones of known mineralisation
• DFS completion date extended to Q1 2016 to design a larger open-pit mining operation
"I am pleased to report that since last year's PEA that pit-constrained diluted Indicated Resources at the Kalana Main deposit have increased to 2.17 million ounces at an average diluted grade of 3.06 grams per tonne at a gold price of $1,100 per ounce. On a related note, pit-constrained undiluted Inferred Resources have increased 52% to 380,000 ounces since the PEA, which is inclusive of the an initial Mineral Resource for the nearby Kalanako satellite deposit. We are also reporting an updated Exploration Target that suggests the potential to define up to a million ounces within a Conceptual Pit outside the Mineral Resource for the Kalana Main deposit," stated Howard Miller, Avnel's Chairman and CEO.
"I am also pleased to announce that our 141-hole, 23,500-m drill program at Kalana Main is about to commence. The drill program is designed to expand zones of known mineralisation, better define mineralisation in key areas, and convert Inferred Mineral Resources to Indicated Mineral Resources. This drilling is expected to lead to the optimisation of the overall potential economics of the project and improve key performance indicators ."
"As a result of the larger Mineral Resource at Kalana Main, combined with our expectations from our current drill program, it has become clear that the DFS for Kalana Main should assess a larger operation than the 3,000 tonnes per day envisioned in the PEA. Accordingly, we are extending our timeline to complete the DFS into the first quarter of 2016, from late 2015, to account for the additional engineering required. We feel strongly that this is a positive development that is likely to increase expected average annual production and optimise NPV, IRR, stripping ratio, and other key performance indicators."
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