Avion ups resources at Tabakoto and Segala

Avion Resources (AVR-V) has increased measured and indicated resources by 169% at its Tabakoto and Segala gold projects in Mali.

Earlier this month, the company declared commercial production two months ahead of schedule at Segala, projecting it would produce about 66,000 oz. of gold this year

Measured and indicated resources in the Tabakoto open pit now stand at 4.1 million tonnes grading 3.3 grams gold per tonne, totaling 439,300 oz. at a 1 gram gold per tonne cutoff grade.

Inferred resources (in the same pit) are estimated at 2.5 million tonnes grading 3.52 grams gold per tonne totaling 285,900 oz. gold at a 1 gram gold per tonne cutoff.

Underground measured and indicated resources are now about 2.7 million tonnes grading 3.73 grams gold per tonne for 321,800 oz. gold cutoff grade of 2 grams gold per tonne.

Inferred resources underground are now 3.4 million tonnes grading 3.68 grams gold per tonne totaling 400,500 oz. gold at a 2 gram gold per tonne cutoff.

Avion says the pit areas resources, which form the bulk of the resource estimate, includes a series of mineralized structures along a 1.8-km long part of a northerly trending zone.

The company plans to upgrade resources and better define the mineralized structures in hopes of increasing capacity at the plant to 200,000 oz. per year from 100,000 oz.

Avion reports that total measured and indicated resources for the two projects now total 18.44 million tonnes grading 2.55 grams gold per tonne or about 1.51 million oz. gold – but this time at a 0.5 gram gold per tonne cutoff grade, which the company notes hasn’t been verified as economical.

The company bought the project, located 200 km south of the city of Kayes, from Nevsun Resources (NSU-T, NSU-X) a year ago for $20 million. It holds 80% while the Malian government holds 20%. The two projects are 6 km apart.

The crusher and mill are currently operating at 1,800 tonnes per day but are ramping up to 2,200 tonnes per day.

The company forecasts that cash costs will be US$509 per oz. though for the first quarter the company produced 6,211 oz. – 1,000 oz. ahead of plan – at a cash cost of US$423 per oz.