Avion’s Mali property keeps getting richer

Vancouver – Avion Gold (AVR-T) has hit short, high-grade, near-surface gold intercepts as the company explores south of its producing mine in Mali.

The company’s latest drill results come from the Djambaye II zone, which is about 6.5 km southwest of the company’s Tabakoto mine. Djambaye II is part of the 32-sq. km Kenieba concessions that Avion acquired earlier this year from Great Quest Metals (GQ-V).

The latest drill results, measured as true widths, include 31 reverse circulation holes cut in a north-south line over a 700-metre strike roughly 25 metres apart.

Hole 7 cut 1.8 metres grading 6.69 grams gold per tonne, starting at surface, as well as 1 metre grading 5.56 grams gold starting at 8 metres. Hole 9 hit 0.9 metre grading 8.08 grams gold starting 24 metres downhole and hole 11 returned 4.3 metres averaging 10.66 grams gold, starting at 20 metres depth.

Hole 13, drilled in what was likely once an artisanal pit, cut 2 metres grading approximately 10.84 grams gold starting at 2 metres, as well as 2.4 metres grading 11.34 grams gold starting at 25 metres. Hole 18, also drilled in an artisanal area, returned 6.1 metres grading 3.64 grams gold starting at 9 metres.

Further south, hole 30 intersected 11 metres grading 3.7 grams gold starting at 23 metres and hole 31 cut 5 metes grading 18.97 grams gold starting 44 metres downhole.

Great Quest established an inferred resource for the Djambaye zone of 2.57 million tonnes grading 3.92 grams gold from drill programs in 2006 and 2007. Avion drilled the latest holes as part of an infill exploration program in the area.

The Djambaye II zone has now been traced for approximately 4,400 metres and is still open to the north, south and to depth.

Avion also recently identified a new mineralized zone north of and parallel to the Djambaye II zone called the Fougala area. Located 2 km north of Djambaye II, Avion hit 22.3 metres grading 8.02 grams gold in the area starting 80.1 metres downhole.

East of Fougala, Avion has also identified the Dioulafoundou zone, hitting a 14.8-metre width grading 4.24 grams gold in a 2009 drill.

In the northwest corner of the project, the company continues to increase production at its open-pit Segala mine, which went online in early 2009. Between Segala and a small pit planned for Tabakoto, Avion expects to produce 100,000 oz. of gold in 2010.

The company’s total measured and indicated mineral resource now stands at 11.38 million tonnes grading 3.71 grams gold. Total inferred resources stand at 9.88 million tonnes grading 3.78 grams gold.

In 2010, Avion plans to spend $10 million on exploration, completing 60,000 metres of drilling.

Avion acquired an 80% interest in the Segala and Tabakoto properties in early 2008 from Nevsun Resources (NSU-T, NSU-X) for $20 million and a 1% net smelter return. The Government of Mali controls the remaining 20%.

The properties are located 200 km south of the city of Kayes, in the western portion of the country. Mali is the second largest gold producing country in Africa.

In Burkina Faso, Avion has plans to explore the Hounde group of concession that it recently acquired from Avocet Mining (AVM-L) in an all-share deal. Once the deal is finalized, the company plans to carry out an airborne geophysical magnetic and radiometric survey of the property and then proceed to drilling.

The company’s share price was up a penny to close at 72¢. Avion’s 52-week share price range is between 23¢ and 79¢; the company has 296.6 million shares outstanding.