Avion Gold drills 35.8 m of 3.62 g/t Au at Segala Main

2009-11-16 10:13 ET - News Release

Mr. Don Dudek reports

AVION EXPECTS 4TH QUARTER GOLD PRODUCTION OF JUST OVER 20,000 OZS

Avion Gold Corp. has fourth-quarter production guidance of just over 20,000 ounces of gold and has released the results of the final nine holes that tested the Segala Main zone and the initiation of exploration on the newly acquired Djambaye 2 zone.

Segala Main Drill Holes:

Results for the final nine of 25 holes continue to demonstrate the continuity of the gold mineralization along a 250 to 300 metre strike length (see figure). These holes were drilled to support a longer term underground mine plan and the objective of upgrading a significant portion of 452,600 ounces of inferred resources (4,072,000 tonnes grading 3.46 g/t Au) to measured and indicated resources. The final set of holes returned a best intercept of 5.17 g/t Au over 27.9 metres core length (19.0 metres true width). Additional drill holes are still required along the east side of the deposit where the edge of the high grade gold mineralization is still not defined.

The remaining Segala main holes returned the following significant intercepts with all significant intercepts presented at the end of the release:

- S-09-19 - 3.62 g/t Au over 35.8 metres (23.8 metres true width)

- S-09-20B - 2.01 g/t Au over 33.0 metres (22.0 metres true width)

- S-09-21 - 5.17 g/t Au over 27.9 metres (19.0 metres true width)

- S-09-29A - 3.22 g/t Au over 34.5 metres (20.0 metres true width)

- S-09-30B - 0.79 g/t Au over 13.8 metres (9.0 metres true width) West edge of deposit

- S-09-31 - 2.01 g/t Au over 11.6 metres (6.8 metres true width) West edge of deposit

- S-09-32B - 3.39 g/t Au over 36.7 metres (23.0 metres true width)

- S-09-33A- 1.29 g/t Au over 18.7 metres (13.0 metres true width) East edge of deposit

- S-09-34 - 1.96 g/t Au over 15.0 metres (12.0 metres true width)

The Segala Main zone comprises an approximately 60 metre wide, steep south plunging zone of gold-bearing, sulphide, sericite, carbonate, aluminous and silica alteration that has been defined along strike for 1.4 kilometres and to a depth of approximately 600 metres. Open pit grades of approximately 3.5 g/t Au (1.2 g/t Au cut-off) over mineable widths have been encountered along a 250 to 300 metre strike length. This central core of higher grade gold mineralization is flanked by numerous, parallel mineralized structures. With the completion of most of the Segala Main in-fill drilling, Avion now intends to focus more attention on testing the Segala Main horizon along strike and to further test the four other mineralized structures in the Segala area.

Djambaye 2 zone:

The Djambaye 2 gold zone hosts a National Instrument 43-101 compliant estimated inferred resource of 324,000 ounces (Carl Verley (P. Geo.), January 28, 2008 Great Quest news release). This equates to 2,574,000 tonnes grading 3.92 g/t Au to a drilled depth up to 150 metres. The Djambaye 2 zone, which is open in three directions, has been traced for 1,800 metres along strike by drilling. Avion's sampling of artisanal workings returned from 0.7 to 10.09 g/t Au which Avion believes indicates that the zone can be extended for an additional 350 metres along strike to the north. All holes drilled into the Djambaye 2a zone intersected gold mineralization with values ranging from 0.63 g/t Au over 6.3 metres core length to 16.35 g/t Au over 5.2 metres core length. The Djambaye 2b zone, located 15 to 30 metres to the west, also displays consistent gold bearing intercepts ranging from 1.33 g/t Au over 1.85 metres core length to 8.82 g/t Au over 4.45 metres core length. True widths are expected to be in the order of 70% or more of core length. The bulk of the mineralization at the Djambaye 2 zone is hosted by pyrite-, stockwork silicified-, albite- and carbonate-altered felsic intrusion and greywacke. This mineralization style differs from that at Avion's Tabakoto and Segala mines with the predominance of pyrite over arsenopyrite a feature more in common with Randgold's Loulo deposits and the more extensive stockwork-type silicification. The Djambaye 2 zone lies on a property optioned from Great Quest Metals Ltd. where Avion has the right to earn 75% of Great Quest's interest in the property for a combination of work and cash payments (November 2, 2009, Avion news release).

To mid October 19, 2009, Avion's 2009 exploration program has completed 111 drill holes totaling approximately 21,700 metres of drilling. More than 50% of this drilling has focused on the Segala area to support long term mine planning. With the exception of drill holes near the Tabakoto mine and the Dar Salam and Dioulafoundou prospects, the bulk of the remaining drill holes tested exploration concepts. Results for most of these holes are still outstanding.

Don Dudek, Senior Vice President, Exploration commented: "The results of the in-fill program exceeded expectations with the definition of a steep-south-plunging zone containing more than 5 g/t Au over widths of approximately 20 metres true width. In addition we were quite pleased to see a new type of gold mineralization and alteration on the Great Quest Option as well as the northern continuity of the Djambaye 2 zone."

Studies to support a longer term Segala and Tabakoto mine plan are underway with underground mining studies in progress including possible mill expansion, efficiency improvements and heap leach testing. This work is being completed by both consultants and company staff and the bulk of it is expected to be completed before year end. Leach test studies have been broadened to include a review of the economics of crushing and gravity concentrating free gold. While initial leach test work suggests that recoveries of 85% of the gold is possible by leaching, all samples tested to date displayed the presence of gravity-recoverable coarse gold. Gravity recoveries for both the Tabakoto and Segala mines have ranged from 55 to 85% of the total gold content. Avion's current National Instrument 43-101 compliant Measured and Indicated Mineral Resource is 1.21 million ounces of gold grading 3.48 g/t Au. In addition, Avion's Inferred Mineral Resource is 1.14 million ounces of gold grading 3.50 g/t Au (Avion, May 19, 2009 news release).

Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release. Avion Gold Corporation has not completed a feasibility study on the Mali gold projects.

Avion's procedures for handling drill core are consistent with industry practice and described in more detail in previous news releases. Avion continues to present assay composites with high grade samples capped at 27.5 g/t Au, which is the capping level deemed appropriate for the Segala Main Deposit and 37.5 g/t Au for the Tabakoto Deposit (Avion: December 12th, 2008 news release).

Avion plans to release its 3rd quarter financial results on November 19th with a conference call to present and discuss the results at 11:00 am central time on November 19th. Stan Bharti, Excutive Chairman, will chair the call, with a company update from John Begeman, President and CEO, a financial update by Greg Duras, CFO, followed by Operational an update from Andrew Bradfield, COO. Don Dudek, VP Exploration will provide an exploration update. There will be a question and answer period following the update. Interested parties are welcome to call in using the information provided below.

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Summary of Exploration Drill Assay Results for the current release

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                                                         Capped        True
Hole          From (m)   To (m)    Width (m)   Au ppm    Au ppm   Width (m)
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S-09-19         244.00   254.00       10.00      0.88                   8.5
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S-09-19         248.10   284.00       35.90      3.62      3.36        23.8
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  incl.         254.00   261.80        7.80      3.34                   4.5
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  incl.         265.00   284.00       19.00      5.11      4.61        13.0
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S-09-19         284.00   298.00       14.00      0.73                  10.0
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S-09-20B        245.00   245.90        0.90      3.04                   0.6
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S-09-20B        254.00   255.00        1.00      1.43                   0.8
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S-09-20B        264.80   266.00        1.20      2.48                   0.9
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S-09-20B        278.60   281.00        2.40      1.53                   1.5
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                287.00   320.00       33.00      2.01                  22.0
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  incl.         287.00   290.95        3.95      0.99                   3.0
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  incl.         290.95   296.70        5.75      3.99                   4.5
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  incl.         300.85   304.70        3.85      0.68                   2.5
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  incl.         304.70   320.00       15.30      2.32                  10.5
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S-09-20B        323.00   338.00       15.00      1.08                  10.5
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S-09-20B        340.60   345.90        5.30      0.68                   3.8
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S-09-21         114.50   116.00        1.50      5.64                   1.0
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S-09-21         284.00   311.90       27.90      5.17      5.02        19.0
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S-09-21         327.40   328.50        1.10      4.34                   0.7
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S-09-21         315.75   323.00        7.25      1.15                   5.5
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S-09-29A        215.50   250.00       34.50      3.22      2.78        20.0
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S-09-30B        198.50   210.90        1.40     12.40                   1.0
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S-09-30B        226.50   230.00        3.50      2.71                   2.8
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S-09-30B        242.00   243.50        1.50      4.76                   1.0
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S-09-30B        254.00   267.80       13.80      0.79                   9.0
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  incl.         266.60   267.80        1.20      3.19                   0.5
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S-09-31         280.95   292.50       11.55      2.01                   6.8
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  incl.         280.95   285.80        4.85      3.71                   3.0
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  incl.         288.80   292.50        3.70      1.29                   2.8
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S-09-31         314.00   326.00       12.00      0.92                   7.0
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S-09-32B        240.60   242.00        1.40      1.62                   0.9
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  incl.         285.30   286.60        1.30      3.14                   1.0
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S-09-32B        297.80   334.50       36.70      3.39      3.15        23.0
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  incl.         302.50   310.40        7.90      6.18      5.30         6.0
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  incl.         321.45   329.20        7.75      6.51      6.27         5.5
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S-09-33A        148.15   152.35        4.20      0.55                   3.5
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S-09-33A        183.95   202.60       18.65      1.29                  13.0
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S-09-33A        231.10   237.10        6.00      6.82      6.53         4.0
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S-09-34           1.50     3.00        1.50      2.14                   1.1
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S-09-34         253.00   269.00       16.00      1.05                  11.5
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  incl.         260.40   261.40        1.00     13.10                   0.8
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S-09-34         308.00   323.00       15.00      1.96                  12.0
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S-09-34         338.00   401.50       63.50      0.55                  48.0
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