Shallow gold in Serbia for Avala

VANCOUVER — Recently restructured Avala Resources (AVZ-V) has released a significant shallow gold hit from its Korkan-Bigar target in eastern Serbia as it works to advance several prospects in the area.

The latest drill result targeted a roughly 4.5-km by 1-km area defined by gold-in-soil surface geochemistry in the Korkan-Bigar area. The hole returned 52 metres grading 4.3 grams gold per tonne from 17 metres downhole, including 18 metres averaging 9.05 grams gold from 48 metres.

Surface trenching on the Korkan target earlier returned 140 metres grading 2.67 grams gold, including 74 metres averaging 4.27 grams gold. That trenching was a follow-up on 2008 trenching that returned 59 metres carrying 2.5 grams gold and 58 metres averaging 2.61 grams gold.

Avala changed its name from Rodeo Capital in August after completing its qualifying transaction of merging with privately-held PJV Resources and Dundee Precious Metals (DPM-T).

Through the deal, Avala secured 815 sq. km of exploration properties in Serbia’s Cretaceous Timok magmatic complex from Dundee, while Dundee now holds 50.2% of Avala’s 146.3 million shares.

Avala also received $23 million from PJV that had been held in escrow after an April financing.

The companies moved drill rigs to the Timok and Potoj Cuka gold projects in mid-July in anticipation of the deal closing, with a third moved onsite in October. The four main areas Avala is exploring are Korkan, Bigar, Kraku Pestar and Umka.

Avala released initial drill results on Kraku Pestar in early October, including 83.5 metres grading 1.28 grams gold from 2.5 metres, 49 metres grading 1.23 grams gold from 144 metres, and 35 metres averaging 2.08 grams gold from 2 metres.

Gold mineralization is sediment- hosted in a previously unrecognized style of gold mineralization in the Timok region.

The company describes mineralization as being associated with a complex geological and structural sequence of limestone/marble, calc-silicate hornfels, biotite-magnetite hornfels, monzonite, diorite dykes, andesitic volcanic and volcaniclastic rocks, schists, and tuffaceous sedimentary rocks.

Serbia has a 3% net smelter return royalty on gold deposits.

Avala’s share price went from around 35¢ in early August to more than 80¢ in early November. Over the Nov. 8-12 week, the share price then climbed 72¢ or 86.8% to $1.55 on a total of 2.2 million shares traded.