Sunday 18th November 2018

Resource Clips

Avala reports Serbia Gold Assays up to 4.24 g/t over 47m

Resource Clips - essential news on junior gold mining and junior silver miningAvala Resources Ltd TSXV:AVZ announced drill results from its Korkan-Bigar trend in eastern Serbia. Highlights include

9.46 g/t gold over 5 metres
1.21 g/t over 68 metres
2.01 g/t over 38 metres
1.6 g/t over 60 metres
1.88 g/t over 32 metres
1.27 g/t over 38 metres
4.24 g/t over 47 metres
1.79 g/t over 71 metres
1.24 g/t over 43 metres
1.46 g/t over 69 metres
2.27 g/t over 35 metres
1.72 g/t over 50 metres
1.71 g/t over 53 metres
1.64 g/t over 35 metres
1.27 g/t over 51 metres
2.21 g/t over 44 metres
4.84 g/t over 39 metres
2.87 g/t over 42 metres

President/CEO Jim Crombie tells, “It’s a relatively new discovery and Avala’s a relatively new company. We took the project from Dundee Precious Metals TSX:DPM who had done some work in this part of Serbia. It’s essentially a from-first-principles discovery on the west side of the Timok Magmatic Complex, which is home to a number of very larger copper mines. We’re just outside the town of Bor, which is the big Serbian copper mining and smelting area.

Bigar Hill’s been a tremendous success. We’re calculating a resource there that will be complete, I’m guessing, by the end of April—Jim Crombie

“The west side of the Timok Magmatic Complex abuts into limestones and sediments. There was about a 20-kilometre long continuous gold anomaly which was discovered in about 2007-2008 that was followed up with trenching. We started drilling it last year. We started in an area called Kraku Pestar, then we got a very good trench in the Korkan area, so we moved up there. That was followed by Bigar Hill. Essentially what we did was wide-spaced footprint drilling on 160-metre centres. Then we started the infill program, and these are part of the results on the infill program. It’s very much as we expected, and we are now in the course of doing a resource calculation for Bigar Hill. At the same time we are doing exactly the same process on Korkan and Kraku Pestar.

“There are a number of high-grade zones,” Crombie continues. “There’s a lot of very good results. Bigar Hill’s been a tremendous success. We’re calculating a resource there that will be complete, I’m guessing, by the end of April.

“We’re confident that this will all be inferred. We’ve done enough of the geostats and the variography and that sort of stuff on it to know that it will be inferred. Some of it might creep into indicated, but we’re not worried about that. Then we’ll obviously have to drill it all out to get it to indicated, and that process is ongoing. The drilling at Korkan and Kraku Pestar will be finished in April, so I guess it will be mid-year by the time we get the resource out. That’ll give us the three areas in inferred. Also, we’ve got a number of exploration areas like Bigar East and Korkan East. So the idea is to continue the process of bringing the project up to measured and indicated and expanding it through the other zones.

“The infrastructure is terrific. We’re 25 kilometres outside of Bor, which is a major copper mining and smelting town. Power lines run adjacent to all of these properties, and there’s a road that runs alongside them. This is as good as it gets.”

Crombie reports that the Avala has roughly $34 million cash on hand, which will see the company through the year.

“We’ve been very pleasantly surprised,” he concludes. “We found Bigar Hill a year ago and have drilled it to a resource stage. This is going to be a significant resource in the area—several million ounces between Bigar Hill, Korkan and Kraku Pestar. Not everyone does that in the space of 18 months.”

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James Crombie

by Ted Niles

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