Avion Gold (AVR-T) had a busy second quarter expanding its West-African projects, increasing its ownership in its Burkina Faso asset, and preparing a maiden reserve estimate for its Tabakoto gold project in Mali.
At the end of the quarter, it posted a strong profit of $15.2 million compared to the $333,629 in the same period last year.
The miner, which also has the Kofi gold project in Mali and the Hounde gold project in Burkina Faso, sold nearly 25,000 oz. gold at an average realized price of $1,456 per oz., to generate $38 million. This is a 46% in revenue over 2010.
During the quarter, Avion milled 197,100 tonnes grading 4.21 grams gold per tonne for 25,823 oz. gold. Mill recovery averaged about 97%.
Most of the tonnes came from the Tabakoto project’s Dioulafoundou open pit, while the rest came from the Tabakoto South and Segala NW open pits, and underground development ore.
Tabakoto, which sits 200 km south of the city Kayes, comprises seven deposit groups and numerous ore stockpiles.
In early July, Avion released an initial reserve estimate for Tabakoto, which has open pit and stockpiled reserves of 243,600 oz. based on 2.6 million tonnes at 2.90 grams gold, plus underground reserves of 669,500 oz. from 4.6 million tonnes at 4.50 grams gold.
Avion is currently open pit mining at the Dioulafoundou, Tabakoto South and Segala NW deposits, while developing an underground mine at the Tabakoto deposit.
During the quarter it completed 1,600 metres of underground development at Tabakoto, and says it’s on track to start underground production in 2012.
Avion plans to start developing the Segala deposit from underground as well over the third quarter.
Another highlight for the three months ending June 30, was Avion upping its interest in the Kofi Nord and Netekoto-Kenieti concessions which form part of the Kofi gold project. The company paid $65,000 in cash and offered 200,000 shares to African Goldfields. It now owns 93.75% of Kofi Nord and all of Netekoto-Kenieti.
Also during the second quarter Avion secured a $35-million credit facility, available for three years with a 7% annual interest rate and no hedging.
Cash costs for the quarter came at $544 per oz. The company generated $21 million in operating cash flow before adjustments.
At the end of June, Avion had $9.8 million in cash and equivalents.
On Aug. 11, the same day it released its second-quarter results, it announced a $50-million financing to help repay debt, and to advance its exploration and development program. As part of the bought deal, the company will offer 24.2 million shares at $2.07 apiece to a syndicate of underwriters led by National Bank Financial.
On the same day, it released more promising results from the Vindaloo zone at the Hounde project. Highlights include 54.1 metres grading 2.9 grams gold and 41.5 metres of 3 grams gold.
Be the first to comment on "Avion gets busy in West Africa"