Re: Avion produces 15,716 ounces of gold during Q1 2010
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Apr 22, 2010 02:47PM
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.
Avion produces 15,716 ounces of gold during Q1 2010
Avion Gold Corp (C:AVR)
Shares Issued 300,319,344
Last Close 4/21/2010 $0.71
Thursday April 22 2010 - News Release
Mr. John Begeman reports
AVION GOLD PRODUCES 15,700 OUNCES IN THE FIRST QUARTER OF 2010
Avion Gold Corp. had first quarter 2010 production of 15,716 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa.
During the first quarter of 2010 the Company milled 156,140 tonnes of ore at an average grade of 3.26 g/t Au, with a 96.5% mill recovery, compared to first quarter of 2009 production of 76,000 tonnes of ore milled at an average grade of 2.74 g/t Au with a 92.8% mill recovery.
Commenting on the production results, Mr. John Begeman, Avion's President and CEO, stated: "A series of events impaired first quarter production, and we are confident that these have subsequently been resolved. Looking forward, surface infrastructure construction in preparation for underground mining is well advanced."
Stan Bharti, Chairman of Avion, stated that, "After the start up of the Segala Mine in 2009, we continue to expand Segala and accelerate plans for underground development at Tabakoto in 2010. We are also expanding our exploration program in the region, have completed an important property acquisition and entered into agreements regarding two other promising projects. We are confident that Avion's assets provide the basis for Avion to be a significant gold producer in Western Africa."
Production was lower than anticipated because of mining lower grade ore due to a minor wall slump in an area that was planned to access the high grade portion of the Segala pit, the cone crushers requiring repairs and the ball mill liners being replaced. The Company is confident that these issues have been remedied.
Avion continues to accelerate its plans for underground development of the Tabakoto Mine this year. The difficulty in sourcing equipment and mine contractors for underground mining in Mali has resulted in Avion looking abroad to bring in a contractor. The Company expects that underground production will likely be delayed to the fourth quarter of 2010. As a result of this delay, Avion now expects to produce between 75,000 and 85,000 ounces of gold in 2010.
Over the longer term, Avion is confident that it can achieve its stated goal of being a 200,000 ounce producer by 2012. The Company believes that its recent exploration results and property acquisitions provide substantial evidence of progress towards this goal.
Andrew Bradfield P.Eng., 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.