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Avion holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with approximately 51,290 ounces produced. 2010 production was 87,630 ounces of gold.

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Message: Re: Avion completes first gold pour from Segala/Tabakoto

Feb 26, 2009 02:32AM

2009-03-09 07:52 EST - News Release

Mr. Chris Bradbrook reports

AVION RESOURCES POURS FIRST GOLD ON SCHEDULE!; SEGALA PROJECT ON TARGET TO PRODUCE 66,000 OZ AU IN 2009

Avion Resources Corp.'s first gold has been poured from its operations at the Segala/Tabakoto property, Mali, West Africa. The bar produced from this pour weighed 21 kilograms (equivalent to approximately 560 ounces of refined gold). The gold was recovered in the processing plant's gravity circuit. Recovery of gold from the carbon-in-leach circuit has commenced, and the total amount of gold recovered for the month of February, 2009, is expected to be according to the previously forecasted 1,050 ounces.

The company restarted the mill on Feb. 16, and has been successfully running at an average of 1,420 tonnes of ore per day. Production to date for March has increased to an average of 1,820 tonnes per day, which is higher than the 1,720 tonnes per day planned. Avion continues to expect that it will meet its targeted 2009 production of 66,000 ounces of gold.

The company also recently updated its mine plan, which resulted in additional savings of $1.0-million (U.S.) in start-up capital expenditures, in addition to a lower cost per ounce and increased revenues from production.

Andrew Bradfield, PEng, the chief operating officer of the company, states: "The project start-up has gone extremely well. Completing the first production gold pour on schedule and on plan is an excellent indication of the capability of the operations team".

As previously (see news issued in Stockwatch) announced on Feb. 9, 2009, Avion has also recently signed a letter of agreement to acquire all of the outstanding common shares of Dynamite Resources (TSX-V: DNR) in exchange for common shares of Avion. Upon completion of the transaction, the combined company will have approximately $13-million in cash and cash equivalents, as well as full ownership of the Segala and Tabakoto projects, subject to the Government of Mali's 20-per-cent interest. The transaction will also allow Avion to take advantage of the substantial exploration opportunities on its property and possible expansion of production capability.

John Begeman, chief executive officer and president, comments: "This gold pour is the first from newly processed ore since Avion took over the site. We are pleased that our team delivered the restart of the mill and plant on schedule and look forward to the further development of the Segala Pit for future ore deliveries."

Andrew Bradfield, PEng, the chief operating officer of the company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release. Avion has not completed a feasibility study on the Mali gold projects and there is no certainty the proposed operations will be economically viable. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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