Drilling to test northwest- and northeast-trending structures at Avion Gold‘s (AVR-T, AVGCF-O) Tabakoto deposit in Mali has returned significant intercepts, including 20.88 grams gold over 5.7 metres, 36.04 grams gold over 3 metres and 29.04 grams gold over 2 metres.
Other highlights from 25 core and reverse-circulation holes in 5,220 metres of drilling during 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 gold 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 said 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 unmodelled gold-bearing zones,” the company’s vice president of exploration, Don Dudek, said in a statement.
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 property 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 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 Avion traded 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.
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