Avion finds deep gold at Segala

Avion Gold (AVR-V) has found higher grades at its Segala mine in Mali.

The company reported results from two holes that show greater grade at depth of the Segala Main zone than had been anticipated.

Hole S-09-01A intersected 3.62 grams gold over 17.9 metres true width roughly 330 metres from surface. The intercept included higher grade core that returned 5.12 grams gold over 10.7 metres true width.

The second hole S-09-02, located 160 metres to the east, returned 5.37 grams gold over 18 metres true width at a depth of roughly 320 metres.

“We believe that these two holes reward our belief that the Segala Main
zone exhibits good depth continuity and as such further supports extending the mine life at Segala and expanding the processing facilities” John Begeman, the company’s president and chief executive said in a statement.

So far Avion has drilled roughly 6,000 metres of its planned 15,000 metre drill program.

While part of the purpose behind the drill program is to increase confidence in existing resources Avion says it is also looking for new mineralized zones.

The company is also studying the possibility of upgrading the Segala mine to a 200,000 oz. per year project. It expects to make a decision on the upgrade before year-end.

The company says it is currently reviewing its guidance of 66,000 oz of production for 2009 at a cash cost of US$505.

Avion holds 80% of Tabakoto and Segala gold projects in Mali.

In Toronto on July 9 Avion’s shares were off 2% to 26.5¢ on 580,000 shares traded.