Avion Gold continues success in Mali

Drilling to test northwest- and northeast-trending structures at Avion Gold‘s (AVR-T, AVGCF-O) Tabakoto deposit in Mali has returned some significant intercepts including 20.88 grams gold over 5.7 metres, 36.04 grams over 3 metres, and 29.04 grams gold over 2 metres.

Other highlights from 25 core and reverse circulation holes, or about 5,220 metres of drilling, in the first four months of the year include 9.17 grams gold over 3 metres, 15.68 grams over 4.9 metres, and 17.50 grams gold over 1.6 metres. High-grade intercepts also included 12.16 grams gold over 6 metres, 9.95 grams gold over 6.1 metres and 6.69 grams over 9 metres.

The drilling was designed to convert inferred resources to measured and indicated resources and test the continuity of the mineralized cross-structures below and near the Tabakoto pit.

The high grades and multiple intersections “are consistent with what we find in the Tabakoto pit area,” the company stated in a press release.

“What is striking about these and many of the holes drilled in the Tabakoto pit area, are the abundance of, as of yet un-modeled, gold-bearing zones,” the company’s vice president of exploration, Don Dudek, said.

Avion is moving the Tabakoto mine to full underground production in early 2012 and has completed more than 3,500 metres of development so far.

It is also preparing to mine underground at its Segala deposit in the country. 

The junior holds an 80% stake in both projects and expects to release its maiden reserve estimate before the end of June.

A US$13 million exploration program spread across its properties in West Africa this year will involve about 75,000 metres of drilling.

The company’s latest drill results sent Avion’s share price up 12¢ or 7.32% to $1.76 on a trading volume of 3.49 million shares.

At presstime in Toronto Avion was trading at $1.78 per share within a 52-week trading range of 42¢ (July 29, 2010) and $2.08 (Dec. 29 2010). The company has about 406.2 million shares outstanding.