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Posts tagged ‘Avion Gold Corporation (AVR)’

Quarterly records

October 9th, 2012

Gold producers with higher ounces for Q3

by Greg Klein

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With third quarter results rolling in, some miners are competing with each other to announce record-high gold ounces for their companies. Here’s a look at five companies that released Q3 production numbers on October 9.

Q3 marked a record 32,137 gold ounces for Avion Gold’s TSX:AVR Tabakoto open-pit and underground operation in Mali. That’s an increase from 28,640 ounces in Q2 and the third consecutive quarterly record. The company now expects to exceed its 2012 guidance of 95,000 to 102,000 ounces. Avion produced 91,200 ounces in 2011.

Gold producers with higher ounces for Q3

Liquid gold pours from Nevsun Resources’ Bisha Mine, which produced 98,000 ounces in Q3 2012.

Avion holds an 80% interest in Tabakoto. The company emphasizes that its southern Mali operation had uninterrupted production despite the sectarian violence centred in the country’s north following a March 22 military coup.

The company closed October 9 at $0.88, two cents above the day’s opening price. With a market cap of $390.71 million, Avion’s 52-week high and low are $2.31 and $0.41.

Another Q3 record-setter, St Andrew Goldfields TSX:SAS reported 25,742 gold ounces from three mines in Ontario’s Timmins Mining District. The Q2 total was 23,106 ounces. Q3’s breakdown comes to 13,147 ounces from the Holt underground mine, 5,408 ounces from the Holloway underground mine and 7,187 ounces from the Hislop open pit. All three share the Holt Mill.

Last month the company re-filed documents on Sedar to correct an overstatement of the inferred category for Holt and Holloway. The corrected estimate for Holt shows 1.09 million ounces measured and indicated, and 229,000 ounces inferred. The measured and indicated numbers include proven and probable reserves of 415,000 ounces. Holloway’s corrected estimate shows 110,000 ounces measured and indicated, and 452,000 inferred. M&I includes proven and probable reserves of 31,000 ounces. These figures correct an overstatement of 665,000 inferred ounces for Holt and 44,000 inferred ounces for Holloway.

Nevertheless the company maintains it’s on track to meet 2012 guidance totalling between 90,000 and 100,000 ounces for all three mines.

St Andrew opened October 9 at $0.47 and closed on $0.465. SAS has a market cap of $171.23 million, a 52-week high of $0.65 and a low of $0.305.

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Burkina bulletins

September 18th, 2012

A steady stream of gold news flows from west Africa

By Greg Klein

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A poor country rich in gold. That contradiction might someday correct itself if mining can improve life for the people of Burkina Faso. Over the last six years several Canadian companies have explored its potential, among them Riverstone Resources TSXV:RVS. (Update: On February 25, 2013, Riverstone Resources Inc began trading as True Gold Mining Inc TSXV:TGM.) In what’s almost a weekly event, the company announced drill results September 17 from its Karma Gold Project.

Assay highlights from the Kao Deposit include

  • 9.5 grams per tonne gold over 12 metres
  • (including 33.6 g/t over 2 metres)
  • 2.02 g/t over 30 metres
  • (including 2.54 g/t over 18 metres)
  • 2.97 g/t over 14 metres
  • 13.45 g/t over 2 metres
  • 1.73 g/t over 12 metres
  • 3.21 g/t over 6 metres
  • 3.19 g/t over 4 metres
A steady stream of gold news flows from west Africa

Adversity notwithstanding, wide-ranging gold exploration
continues in Burkina Faso.

True widths are estimated between 90% and 100%. Depths extend to 260 metres, but most were less than 54 metres. The company states that its resource update, scheduled for release later this month, is expected to show an increase in more easily recoverable oxide resources.

Karma’s current estimate, issued last January, shows an indicated resource of 54.1 million tonnes grading 1.02 g/t gold for 1.77 million gold ounces and an inferred resource of 37.4 million tonnes grading 0.8 g/t for 959,000 ounces. Over 80% of the resource falls within five Whittle open pit shells. Over 85,000 metres of additional drilling will be incorporated into this month’s update.

On September 17 the company also filed the technical report for Karma’s PEA, which was announced last month. The study projects an initial capex of $125 million, which might be cut to $96 million through contract mining. The study also shows a pre-tax net present value of $271 million and a 47% internal rate of return, or an after-tax NPV of $192 million and a 37% IRR. Payback is estimated at two years.

The study examined three processing options, favouring a heap leach operation that would process three million tonnes of oxide and transition mineralization annually to produce 70,000 to 90,000 gold ounces a year over a 10-year life. Cash costs would come to $525 an ounce. Calculations are based on a gold price of $1,350 an ounce.

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Avion reports Burkina Faso Gold Assays up to 1.28 g/t over 132.5m, 1.82 g/t over 64.4m

August 8th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corp TSX:AVR reported results from the Vindaloo zone of its Houndé Project, Burkina Faso. Highlights include

4.4 grams per tonne gold over 3 metres
3.51 g/t gold over 4.3 metres
1.32 g/t gold over 66.6 metres
1.82 g/t gold over 64.4 metres
1.69 g/t gold over 30.5 metres
4.23 g/t gold over 9.1 metres
1.66 g/t gold over 9.3 metres
1.1 g/t gold over 11 metres
4.14 g/t gold over 8 metres
3.04 g/t gold over 7 metres
1.28 g/t gold over 132.5 metres
13.95 g/t gold over 6.1 metres
0.85 g/t gold over 26.1 metres
0.88 g/t gold over 44 metres

Avion Senior VP Exploration Don Dudek commented, “Management believes that Avion has completed sufficient wide-spaced drilling along the Vindaloo gold-bearing system and have demonstrated good potential at several other zones, within trucking distance, to now focus on the completion of an updated mineral resource estimate followed by a Preliminary Economic Assessment. This is quite an achievement, since Avion acquired the project area less than two years ago and, at that time, it did not contain any quantified mineral resources.”

View Company Profile

Michael McAllister
Manager, Investor Relations
416.309.2134

Read a feature story about Avion Gold

by Kevin Michael Grace

Avion reports Burkina Faso Gold Assays: 2.96 g/t over 87m, 3.59 g/t over 19m

May 24th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corp TSX:AVR reported results from the Vindaloo zone of its Houndé Project, Burkina Faso. Highlights include

1.5 grams per tonne gold over 32 metres
2.96 g/t gold over 87 metres
1.72 g/t gold over 45 metres
3.59 g/t gold over 19 metres
31.27 g/t gold over 4 metres
2.18 g/t gold over 31 metres
3.01 g/t gold over 21 metres
2.96 g/t gold over 87 metres
2.45 g/t gold over 20 metres
1.59 g/t gold over 57 metres
1.72 g/t gold over 45 metres
34.5 g/t gold over 2 metres

Avion President/CEO John Begeman commented, “Avion is pleased to report these new exploration results for the Houndé Project, which in management’s opinion, once again increases shareholder value. As well, the continued move towards a constitutionally acceptable transitional Malian government, with a goal of free elections within a year, is welcome news. Gold prices have remained strong and are expected to strengthen further and I believe that in a year from now the current delay in completing our Tabakoto mill upgrade will be a non-issue.”

View Company Profile

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Kevin Michael Grace

Avion updates Mali Tabakoto Gold Resource Estimate

May 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corporation TSX:AVR announced updated NI 43-101 mineral reserves and resources for its Tabakoto Project in Mali, West Africa. The project now has measured and indicated resources of 1.12 million ounces gold, containing proven and probable reserves of 827,100 ounces. The project also has inferred resources of 1.12 million ounces gold.

President/CEO John Begeman commented, “The gold resource grades we see at Tabakoto are some of the best in West Africa and again highlight why Avion has chosen to focus in this part of Mali and why we can continue to build value through the drill bit. The company has over three years of operating experience at the Tabakoto Project, and has demonstrated that the mine is profitable. Production from the Tabakoto underground mine and Djambaye open pit were both successfully started this year with underground production planned to commence at the Ségala deposit in 2013. Additionally, Avion is working toward defining initial reserves on the nearby Kofi property in 2012 where Avion has defined an indicated mineral resource of 500,000 ounces of gold, and an inferred mineral resource of 702,000 ounces of gold.”

View Company Profile

Read more about Avion Gold

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Ted Niles

Avion reports Mali Gold Assays as high as 13.38 g/t over 4.4m

March 12th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corporation TSX:AVR announced drill results from its Tabakoto project in Mali, West Africa. Highlights include

13.38 g/t gold over 4.4 metres
6.57 g/t over 6.9 metres
6.44 g/t over 8.8 metres
23.77 g/t over 5 metres
7.39 g/t over 5 metres
6.75 g/t over 9.5 metres
38.55 g/t over 4.5 metres

Senior VP Exploration Don Dudek said, “The Tabakoto exploration program further supports management’s belief that the known zones are open to expansion and that there is significant opportunity to define additional zones proximal to the current underground mine workings. This exploration data, in conjunction with data derived from underground mapping and drilling are providing an excellent database from which to refine the gold mineralization models at the Tabakoto Mine.”

View Company Profile

Read more about Avion Gold

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Ted Niles

Avion reports Burkina Faso Gold Assays as high as 51.63 g/t over 8m

February 7th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corporation TSX:AVR announced assays from the Vindaloo zone area of its Houndé project in Burkina Faso, West Africa. Results include

51.63 g/t gold over 8 metres
1.02 g/t over 9.8 metres
2.53 g/t over 1.1 metres
1.17 g/t over 7.5 metres
1.8 g/t over 1.5 metres
2.8 g/t over 3.2 metres
12.4 g/t over 6.5 metres
1.6 g/t over 2.8 metres

President/CEO John Begeman remarked, “Avion is in an exceptional position with the Houndé property, not only the resources defined to date, but also with the open-ended nature of the mineralized systems. As a result I have great confidence that the Houndé property will evolve into a world class project.”

View Company Profile

Read more about Avion Gold

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Ted Niles

Beyond 3Q

December 7th, 2011

Avion Mines, Finds West African Gold

By Greg Klein

Avion Gold TSX:AVR has its sights set high in West Africa. Open-pit gold mining underway, a new mill to be commissioned, underground production about to begin and continued drilling to build the resources. The plan is to more than double its annual output to 200,000 gold ounces by 2013 and then maintain that rate for a decade, reaching two million ounces. All that is projected to come from Avion’s Tabakoto and Segala mines and Kofi Property in Mali and its Houndé Project in Burkina Faso.

The market remains unimpressed, however. With the release of Avion’s 3Q results, which reported the production of 21,687 gold ounces at $925 per ounce, share prices plunged from $2.04 November 15 to $1.54 10 days later. Then began an unsteady rise to the December 7 open of $1.73. The plunge isn’t surprising, perhaps, since 3Q net profit fell to $US7.2 million or $0.02 a share, exactly half the amounts for the same quarter in 2010. So what happened?

Avion Mines, Finds West African Gold

The 3Q report attributes additional costs of $4.2 million for taxes related to employee benefits and other obligations from earlier periods. In addition, there were higher fuel costs, transportation delays for parts and equipment and unexpectedly low-grade ore that’s since been mined out.

Beyond 3Q, pessimism is far from universal. Among the analysts who came to Avion’s defence were Steven Butler of Canaccord Genuity, who pronounced the company oversold, and Tara Hassan of National Bank Financial, who set a target of $2.95 and an outperform rating.

Yes, the company is “a growth story,” declares IR Manager Michael McAllister. That growth is fed by revenue from Avion’s Mali project, Tabakoto, which includes the Segala zones less than five kilometres away. Avion holds an 80% interest in Tabakoto, with the Mali government holding the remainder.

At Tabakoto South, mining has just finished off the open pit, and underground production is about to begin. “We’ll probably start stoping there in early January,” McAllister reports. Tabakoto’s Djambaye II open pit is also nearing production.

At Segala, the Dioulafondu open pit will be joined by underground production, probably in 3Q 2012. “At that point we’ll have two undergrounds and several open-pit targets as well,” he adds.

Including Segala, the Tabakoto deposits host July 2011 proven and probable reserves of 913,100 gold ounces, a measured and indicated resource of 149,100 ounces and an inferred resource of 1.07 million ounces.

“That’s to an average drilling depth of maybe 225 metres,” points out Senior VP of Exploration Don Dudek. “Every single zone is open down-plunge and some are open along strike. There’s a likelihood that in the next 250 metres we’ll add another two million ounces of resource. So our 10-year plan is 200,000 ounces of production a year for 10 years, about two million ounces.”

Central to the expansion plan is Avion’s new SAG (semi-autogenous grinding) mill, which will take in 4,000 tonnes per day, up from the current 2,300 tpd to 2,500 tpd capacity. “We’ll commission that by the end of 1Q [2012],” McAllister says. “By the time we work out the bugs, we’ll be at a 200,000-ounce run rate probably around the middle to end of 2Q. We’re forecasting about 160,000 ounces [for 2012] and then 200,000 going forward.”

A convenient 38 kilometres away, Avion drills its 81.25%-owned Kofi Property. Back in 2007, AXMIN TSXV:AXM estimated its resource at 293,000 gold ounces indicated and 368,000 ounces inferred. “I’m hoping our resource update is released this year,” Dudek says. “Kofi’s a lot more complicated, and I’ve got consultants working on it.”

Assays released December 5 include

7.52 g/t gold over 40.8 metres
4.85 g/t over 5.7 metres
11.61 g/t over 21.3 metres
12.92 g/t over 6 metres
22.84 g/t over 2 metres
6.42 g/t over 15 metres
4.6 g/t over 12 metres

“What these new results indicate to me is that there’s still a significant opportunity to the north, with two intercepts specifically being open to the north,” Dudek explains. “When you step back and look at the broader geophysical response, in this case the IP conductivity, it’s obvious that the pattern continues and so we’re hoping, and expecting, that the mineralization will continue as well.”

Every single zone is open down-plunge, and some are open along strike. There’s a likelihood that in the next 250 metres we’ll add another two million ounces of resource. So our 10-year plan is 200,000 ounces of production a year for 10 years, about two million ounces —Don Dudek

Farther southeast, Avion’s drills its Houndé Project in Burkina Faso. Results released November 22 from the Vindaloo Zone include

3.74 g/t gold over 61 metres
4.86 g/t over 38.5 metres
3.75 g/t over 44.9 metres
2.52 g/t over 47 metres
(including 3.69 g/t over 23 metres)
3.03 g/t over 35.2 metres
2.2 g/t over 30.4 metres
2.31 g/t over 21.1 metres

“It’s been a very prolific zone,” McAllister says. “We’ve had a lot of success there. It’s just 60 kilometres south of SEMAFO’s TSX:SMF Mana Mine and we’re on the same trend. So we’re having some great success, and the infrastructure’s terrific… Our goal is to have a million-ounce resource released just before Christmas. If we can do that, we’re looking to do a PEA and hopefully feasibility. Our goal is to have that as a producing mine in three to four years’ time.”

Dudek says he’ll be asking Avion’s board for a 2012 exploration budget of $26 million, compared to 2011′s $16 million. “That’s quite a bit of money. But I’m hoping that we’ll substantially grow the corporate resources and also get a very clear indication of when we can bring on additional production.” As of September 30, the company had $49.2 million in cash and equivalents.

Apart from production revenue, Avion boasts strong institutional investment. “Eric Sprott owns about 16%,” McAllister says. “Sentry Investments about 14%. Fidelity Asset Management about 12%. Overall, we’re about 75% institutionally owned.”

He concludes, “We did have some setbacks in the last quarter, but we worked through them, so it’s a great time to get in right now. There’s a lot to look forward to with Avion.”

At press time, Avion had 440.2 million shares outstanding at $1.73 a share for a market cap of $761.6 million.

Avion Senior VP Don Dudek on Mali gold assays of 7.52 g/t over 40.8m

December 7th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corporation TSX:AVR announced results from its Kofi project in Mali, West Africa. Assays include

7.52 g/t gold over 40.8 metres
4.85 g/t over 5.7 metres
11.61 g/t over 21.3 metres
12.92 g/t over 6 metres
22.84 g/t over 2 metres
10.03 g/t over 3 metres
6.42 g/t over 15 metres
4.6 g/t over 12 metres

Senior VP of Exploration Don Dudek tells ResourceClips.com, “The Kofi Zone, Kofi C and Kofi C West in particular, is very complicated because of dyking and faulting. We spent a good part of the year trying to understand where the mineralization is and how to connect the different pieces. The interpretation has changed from the time when AXMIN TSXV:AXM had the project, but what these new results indicate to me is that there’s still a significant opportunity to the north, with two intercepts specifically being open to the north. When you step back and look at the broader geophysical response, in this case the IP conductivity, it’s obvious that the pattern continues and so we’re hoping, and expecting, that the mineralization will continue as well.”

I’m hoping that we’ll substantially grow the corporate resources and also get a very clear indication of when we can bring on additional production—Don Dudek

The Kofi C Zone has an historic NI 43-101 resource estimate of 873,000 tonnes grading 3.6 g/t gold for 99,000 gold ounces indicated and 913,000 tonnes grading 3.7 g/t for 109,000 ounces inferred. Avion considers this an historic resource because a qualified person has not carried out the work for Avion.

“I’m hoping our resource update is released this year,” Dudek says. “Kofi’s a lot more complicated, and I’ve got consultants working on it. The goal is to get it done by the end of the year, but I’m not 100% sure yet.”

Avion’s 2011 exploration budget totals $16 million for all its projects in Mali and Burkina Faso.

“For next year, I’m asking the board for an exploration budget of $26 million to spend within our current portfolio of projects,” Dudek points out. “With our capital expenditures and all the things we have to do, that’s quite a bit of money. But I’m hoping that we’ll substantially grow the corporate resources and also get a very clear indication of when we can bring on additional production.”

View Company Profile

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Greg Klein and Ted Niles

Avion reports Mali Gold Assays up to 7.52 g/t over 40.8m

December 6th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAvion Gold Corporation TSX:AVR announced results from its Kofi project in Mali, West Africa. Assays include

7.52 g/t gold over 40.8 metres
4.85 g/t over 5.7 metres
11.61 g/t over 21.3 metres
12.92 g/t over 6 metres
22.84 g/t over 2 metres
10.03 g/t over 3 metres
6.42 g/t over 15 metres
4.6 g/t over 12 metres

Senior VP of Exploration Don Dudek tells ResourceClips.com, “The Kofi Zone, Kofi C and Kofi C West in particular, is very complicated because of dyking and faulting. We spent a good part of the year trying to understand where the mineralization is and how to connect the different pieces. The interpretation has changed from the time when AXMIN TSXV:AXM had the project, but what these new results indicate to me is that there’s still a significant opportunity to the north, with two intercepts specifically being open to the north. When you step back and look at the broader geophysical response, in this case the IP conductivity, it’s obvious that the pattern continues and so we’re hoping, and expecting, that the mineralization will continue as well.”

I’m hoping that we’ll substantially grow the corporate resources and also get a very clear indication of when we can bring on additional production—Don Dudek

The Kofi C Zone has an historic NI 43-101 resource estimate of 873,000 tonnes grading 3.6 g/t gold for 99,000 gold ounces indicated and 913,000 tonnes grading 3.7 g/t for 109,000 ounces inferred. Avion considers this an historic resource because a qualified person has not carried out the work for Avion.

“I’m hoping our resource update is released this year,” Dudek says. “Kofi’s a lot more complicated, and I’ve got consultants working on it. The goal is to get it done by the end of the year, but I’m not 100% sure yet.”

Avion’s 2011 exploration budget totals $16 million for all its projects in Mali and Burkina Faso.

“For next year, I’m asking the board for an exploration budget of $26 million to spend within our current portfolio of projects,” Dudek points out. “With our capital expenditures and all the things we have to do, that’s quite a bit of money. But I’m hoping that we’ll substantially grow the corporate resources and also get a very clear indication of when we can bring on additional production.”

View Company Profile

Contact:
Michael McAllister
Manager, Investor Relations
416.309.2134

by Greg Klein and Ted Niles