* working capital of $0.12 per share with no LT debt
* multiple light oil well drilling locations in Viewfield, SK
* carried interests with no drilling costs
* natural gas at Pembina – 10-12 additional locations identified
Good results from a possible open pit site very close to the mill. Should increase resource ounces and make the decision to increase to 200,000 oz capacity very easy this fall. Supposed to be at that capacity by 2012.
Avion Intersects 5.79 g\t Au Over 12.0 Metres at Djambaye II
Press Release Source: Avion Gold Corporation On Thursday June 3, 2010, 7:00 am EDT
TORONTO, ONTARIO--(Marketwire - June 3, 2010) - Avion Gold Corporation (TSX VENTURE:AVR - News; OTCQX:AVGCF)(PINK SHEETS:AVGCF - News; "Avion") is pleased to announce the results from core and reverse circulation drill holes that tested a 900 metre long portion of the Djambaye II zone located on the Kenieba Property (see Avion News Releases dated December 21, 2009 and January 8, 2010). The Kenieba Property lies 6.5 kilometres southwest of the Tabakoto Mine/Mill complex, adjacent to the south and southwestern boundary of Avion's Tabakoto Property (see attached figure 1). The property hosts the Djambaye II deposit (Inferred resources of 324,000 ounces of gold, in 2,574,000 tonnes grading 3.92 grams per tonne gold).
Highlights of this drilling, which tested the near-surface and depth extensions of the deposit comprise the following:
-- 5.79 g/t Au over 12.0 metres in drill hole G-10-07
-- 29.80 g/t Au over 2.3 metres in drill hole G-10-08
-- 7.77 g/t Au over 4.7 metres in drill hole G-10-17
-- 3.89 g/t Au over 11.6 metres in drill hole G-10-18
-- 4.89 g/t Au over 8.7 metres in drill hole G-10-23
-- 9.47 g/t Au over 3.9 metres in drill hole G-10-57
Results for a 900 metre long portion of the steep east dipping Djambaye II hangingwall (HW) zone are presented in this news release (see figure 2). Within this northern section of the Djambaye II zone, drilling has defined a 400 metre long, shallow-south-plunging zone of higher grade gold mineralization. This higher grade portion of the Djambaye II zone can be traced to 240 metres vertical depth along an open ended 640 metre plunge extent. One of the deepest holes on the zone returned 9.47 g/t Au over 3.9 metres core length; intercepts like this and others support the underground potential of this zone. The higher grade sections of this zone (above a grade times width of 11 gram(i)metres) returned a weighted grade of 5.3 g/t Au (4.92 g/t capped at 30 g/t Au) over an average true width of 6.0 metres. This compares favorably with the Company's Segala Deposit where overall mined gold grades average between 3.5 g/t Au to 4.0 g/t Au.
A second parallel zone of gold mineralization, Djambaye footwall (FW) zone, lies approximately 15 to 20 metres to the west. This zone has been intersected by 37 core and reverse circulation holes along a 540 metre strike length and to 240 metres depth (see figure 3). It appears to be open to depth and to the north. Hole GRC-10-11 returned the best results with an intercept of 10.66 g/t Au over 5.0 metres. The second best intercept of 6.3 g/t Au over 4.3 metres was returned from hole G-10-2, which represents a 160 metre step-out from the previous resource block; additional drilling will be carried out in this area. This zone has an average weighted grade, from all holes on the long section, of 2.47 g/t Au over an average true width of 2.8 metres.
This news release presents results for 24 reverse circulation and 53 diamond drill holes totaling 6,617.5 metres that were completed by Avion in 2010. Once all drill data and sectional interpretations have been completed the Company plans to update the historic resource with a goal to define additional open pittable resources.
John Begeman, Avion's President and CEO, stated, "These results support reasonable potential for the definition of good grade, shallow open pit mineable resources for Avion, which in turn has the potential to provide Avion with greater flexibility as we move to develop underground mines at Tabakoto and Segala. This zone also provides an opportunity to define gold mineralization with adequate grades and widths that could potentially support underground mine development and additional immediate open pit resources."
Avion's procedures for handling core and reverse circulation drill chips have been presented in previous news releases (See for e.g. Avion News Release dated May 13, 2010).
Don Dudek, P.Geo. the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West Africa that holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced; 2010 production is estimated at 75,000 to 85,000 ounces. Production sustainability is supported and enhanced by an aggressive 2010 drill program over an approximately 600 km2 exploration package that both surrounds and is near to our existing mine infrastructure. Additionally, a new, 1,670 km2 exploration property in Burkina Faso is expected to return good results from an ongoing drill program. These properties are the subject of a approx.US$ 12 million dollar, 60,000 metre plus, drill-focused exploration program in 2010, which is expected, based on results to date, to add new resources and future opportunities for Avion. Avion continues to progress towards its longer term goal of 200,000 ounces of gold per year and is evaluating an underground mine plan for the Segala and Tabakoto deposits. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Bobwins
Posted: Thu May 20 10:09:23 2010
AVR.v/AVGCF.pk -.02 to C$.56
Very disappointed in Q1. They had a slump in the pit that prevented them from reaching a higher grade pocket of ore and they had to work around the slump. HOWEVER!!! cash costs soared to $886/oz in Q1 and they are guiding for $650 for the rest of the year!!
This is horrendous because their corporate presentation prepared in April 2010 calls for $500 avg cash costs in 2010 ! How can you miss by that much. Q1 was over when you prepared the presentation. And the best you can do for the rest of the year is $650?
Needs more explanation. $150/oz is a huge discrepancy!
That's 12 million in cashflow that just disappeared! Poof!
How about an explanation! Overpromise/Underdeliver
Worst possible combination!
TORONTO, ONTARIO, May 20, 2010 (MARKETWIRE via COMTEX News Network) --
AVION GOLD CORPORATION ("Avion" or the "Company") (TSX VENTURE: AVR) (OTCQX: AVGCF)(PINK SHEETS: AVGCF)today announces its financial results for the 1st quarter of 2010.
Commenting on the Q1 2010 results, Avion's President and CEO, Mr. John Begeman stated, "The first quarter presented the Company with some unforeseen challenges and I am extremely proud of the efforts of our team in resolving them such that we can look forward to meeting our production guidance for 2010 of 75,000 - 85,000 ounces."
Complete interim financial statements and related Management's Discussion and Analysis are filed under the Company's profile on www.sedar.com. All amounts are in United States dollars unless otherwise indicated. The key facts are summarized below:
-- For the 1st quarter, the Company produced approximately 15,716 ounces at
a cash cost per ounce of $886. The cash costs were negatively affected
by a previously announced slump in the Segala pit which delayed access
to the planned higher grade ore. This situation was temporary and has
now been rectified. The Company is forecasting substantially lower costs
for the rest of the year and anticipates averaging $650 per ounce for
the remaining three quarters of the year. Cash costs do not include
royalties.
-- During the 1st quarter, the Company sold 17,298 ounces of gold at an
average realized price of $1,123 per ounce, which was higher than the
average London fix $1,109 over the period.
-- The Company reported a net loss of $545,740 ($0.00 per share - diluted)
for the quarter ended March 31, 2010 compared to a net loss of
$1,241,360 (loss of $0.01 per share) for the quarter ended March 31,
2009.
-- Gold revenue for the first quarter ended March 31, 2010 was $19.4
million compared to nil for the comparable quarter last year.
-- Operating cash flow before the working capital adjustment for the first
quarter ended March 31, 2010 was $5.6 million.
-- Net working capital as at March 31, 2009 was $20.5 million (including
cash and cash equivalents of $8.3 million).
-- Avion announced a 100% increase in the Measured and Indicated Resources
and a 38% increase in grade in the Segala Main deposit.
Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
Bobwins
Posted: Thu Apr 22 12:42:41 2010
misc problems lowered Q1 production and difficulty in obtaining underground equipment will delay start of underground mining(higher grade ozs) and lower 2010 total production below goal of 100,000oz. Not great news but that's mining. Still undervalued, lots of oz in the ground and decision to double production capacity to 200K oz will be made later this year. Would be extremely surprised if they don't go ahead.
Press Release Source: Avion Gold Corporation On Thursday April 22, 2010, 2:17 pm EDT
TORONTO, ONTARIO--(Marketwire - April 22, 2010) - Avion Gold Corporation (TSX VENTURE:AVR - News; OTCQX:AVGCF) ("Avion" or the "Company") announces first quarter 2010 production of 15,716 ounces of gold from its Tabakoto/Segala operations in Mali, West Africa.
During the first quarter of 2010 the Company milled 156,140 tonnes of ore at an average grade of 3.26 g/t Au, with a 96.5% mill recovery, compared to first quarter of 2009 production of 76,000 tonnes of ore milled at an average grade of 2.74 g/t Au with a 92.8% mill recovery.
Commenting on the production results, Mr. John Begeman, Avion's President and CEO, stated: "A series of events impaired first quarter production, and we are confident that these have subsequently been resolved. Looking forward, surface infrastructure construction in preparation for underground mining is well advanced."
Stan Bharti, Chairman of Avion, stated that, "After the start up of the Segala Mine in 2009, we continue to expand Segala and accelerate plans for underground development at Tabakoto in 2010. We are also expanding our exploration program in the region, have completed an important property acquisition and entered into agreements regarding two other promising projects. We are confident that Avion's assets provide the basis for Avion to be a significant gold producer in Western Africa."
Production was lower than anticipated because of mining lower grade ore due to a minor wall slump in an area that was planned to access the high grade portion of the Segala pit, the cone crushers requiring repairs and the ball mill liners being replaced. The Company is confident that these issues have been remedied.
Avion continues to accelerate its plans for underground development of the Tabakoto Mine this year. The difficulty in sourcing equipment and mine contractors for underground mining in Mali has resulted in Avion looking abroad to bring in a contractor. The Company expects that underground production will likely be delayed to the fourth quarter of 2010. As a result of this delay, Avion now expects to produce between 75,000 and 85,000 ounces of gold in 2010.
Over the longer term, Avion is confident that it can achieve its stated goal of being a 200,000 ounce producer by 2012. The Company believes that its recent exploration results and property acquisitions provide substantial evidence of progress towards this goal.
Andrew Bradfield P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. The longer term goal of the Company is to produce 200,000 ounces in 2012. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Bobwins
Posted: Thu Apr 15 8:13:46 2010
AVR.v/AVGCF.pk +.06 to C$.80
Avion hit a wide, high grade sample 2km south of their main mine at Tabokoto. Avion is scheduled to make a decision this fall on expanding mill capacity at Tabokoto to 200K oz/yr. Need to continue hitting good intersections to expand resource base and mine life so they can double production while still keeping mine life out beyond 6-10 years, so they can recover additional capex investment.
My goal for AVR.v is C$1.30 after they show cashflow from 2010 production forecast of 100K oz. Share price should be multiples of that if they continue building resources to their goal of 4 to 6 million oz and 200K production. Has been aggressively adding prospective land surrounding their current deposits. Avion is one of a group of companies run by Stan Bharti. Also hold AAA.v, which has been a big success.
Added more AVR today as price slipped even though this is good news for Avion. Mgmt has telegraphed their intent to build a multimillion oz thru both internal growth of their existing mines as well as acquisition of nearby properties. This is the second acquisition announced in 2010. This mine is within trucking distance of the Tabakoto mill. Could extend the life of the mine if the deposit proves economic and support increased mill capacity.
Avion has announced an updated resource report in the next few weeks. Some expect a BIG increase in ounces that should boost the stock price. Bobwins
Press Release Source: Avion Gold Corporation On Wednesday March 31, 2010, 10:36 am EDT
TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Avion Gold Corporation (TSX VENTURE:AVR - News; OTCQX:AVGCF) ("Avion" or the 'Company') is pleased to announce that it has executed a purchase agreement with AXMIN Inc. ("AXMIN") under which Avion has agreed to acquire AXMIN's interest in the Kofi Group concessions ("Kofi") in Mali for total consideration valued at approximately CDN$3.6 million.
The Kofi property is a large, 472 sq. km, property package situated, at its nearest point, within approximately 5 kilometres to the northwest of Avion's Tabakoto Project. The Kofi property wraps around the north side of Randgold's Loulo Mine (Measured and Indicated resources of 62.69 million tonnes grading 4.55 g/t Au) concessions (see Figure below). Four of the nine known mineralized zones on the Kofi property are located along two linear mineralization trends that are defined by the alignment of deposits within the nearby Randgold Property. These two trends, which intersect on the Kofi property, are associated with a magnetic feature that extends for another five kilometers to the north. Avion believes this magnetic feature represents an interesting exploration target.
The Kofi property contains nine mineralized zones with identified mineral resources. All of the estimated mineral resources lie in the Kofi Nord concession of which Avion's interest would be 81.25% with 12.5% held by African Mining Selection Corporation and 6.25% held by Societe Financiere d'Exploration d'Or au Mali. Accordingly, indicated mineral resources of 238,000 ounces and inferred mineral resources of 299,000 ounces would be credited to Avion upon completion of the acquisition. Total estimated Indicated Mineral Resources are approximately 3.6 million tonnes grading 2.5 g/t Au totaling 293,000 ounces Au (Roberts, 2008 43-101 compliant report). In addition, the Kofi property hosts total Inferred Mineral Resources of approximately 5.26 million tonnes grading 2.2 g/t Au totaling 368,000 ounces (Dec. 11, 2007 AXMIN news release, Roberts, 2008 43-101 compliant report) . Most of the zones are open along strike and to depth with zones only tested from 60 to 150 metres below surface. All of the zones are within 15 to 38 kilometers of Tabakoto's mine infrastructure, potentially placing these zones, including the estimated mineral resources, within trucking distance to Tabakoto. A summary of the main mineralized zones is as follows:
----------------------------------------------------------------------------
Zone Resource
Tonnes(i) g/t Au Ounces Category Comment
----------------------------------------------------------------------------
C Zone Tested to less than
873,000 3.5 99,000 Indicated -100 m depth
C Zone Tested to less than
913,000 3.7 109,000 Inferred -100 m depth
A zone 378,000 2.0 25,000 Inferred Tested to 150 m depth
A Zone Linear 675,000 1.7 36,000 Inferred Tested to -60 m depth
B Zone 1,216,000 2.1 83,000 Indicated Tested to -140 m depth
B Zone 160,000 1.7 9,000 Inferred Tested to -140 m depth
Blanaid 510,000 2.4 39,000 Inferred Tested to -85 m depth
Betea Central 1,154,000 2.3 111,000 Indicated Tested to -150 m depth
Betea Central 981,000 1.6 52,000 Inferred Tested to -150 m depth
Betea North 473,000 1.6 25,000 Inferred Tested to -150 m depth
Betea South 1,169,000 2.0 74,000 Inferred Tested to -150 m depth
----------------------------------------------------------------------------
(i) Mineral resources presented by AXMIN on December 11, 2007 and supported
by a 43-101 compliant technical report but Roberts, 2008.
John Begeman, Avion's President and CEO, stated, "The acquisition of the Kofi property, Avion's most recent cost-effective and accretive acquisition, allows the Company to take advantage of a resource that can potentially be trucked to our existing milling and processing facility. Randgold, through their exploration success, has demonstrated tremendous value in the area immediately to the south of the Kofi property. Avion believes that the potential exists for similar success on the Kofi property, which has proven stratigraphy that is rich in resources."
In consideration for acquiring AXMIN's interest in the Kofi Property, Avion, will, upon final closing of the definitive agreement and the receipt of any applicable regulatory approvals, have paid to AXMIN CDN$500,000 and issued to AXMIN 4,500,000 Avion common shares. AXMIN will begin to receive the consideration for the Kofi Property as soon as the Kofi Nord concession is transferred to Avion's Mali subsidiary and according to a payment schedule established in the definitive agreement. AXMIN's direct interest in the concessions that comprise the Kofi property varies from 81.25% to 100%. Completion of the proposed acquisition is subject to the receipt of standard closing documents, including a title opinion, approval of the TSX Venture Exchange and Government approval in Mali for the license transfers.
Upon completing the acquisition, Avion's intends to first re-log the core in order to update and validate the interpretation of the mineralized zones. Once completed, Avion plans to conduct a drill program commencing in late 2010 to test targets, developed through the re-interpretation, and existing targets that were developed by AXMIN.
Don Dudek, Senior Vice President, Exploration, commented "The Kofi C zone, which lies along the same trend as four of the Randgold deposits, is the highest grade zone on the Kofi property. We believe that it is a compelling near-term potentially open-pittable resource that appears to be open for expansion. Work by AXMIN and Randgold has demonstrated the prospective nature of this trend, which we believe bodes well for future discovery potential."
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101 has reviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production commenced at these projects in 2009 with just over 51,000 ounces produced last year. Avion continues to progress towards reaching its previously stated goal to achieve a production rate of 200,000 ounces of gold per year from its Tabakoto/ Segala operations with an aggressive exploration program, underground mine planning for the Segala and Tabakoto deposits and finalization of production upgrade studies in progress. Avion's 2010 production goal was initially estimated at 100,000 ounces of gold. Anticipated 2010 gold production of approximately 100,000 ounces is under review. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
About AXMIN
AXMIN is a Canadian exploration and development company with a strong focus on central and west Africa. AXMIN has projects in Central African Republic, Mali, Sierra Leone and Senegal. For more information regarding AXMIN visit our website at www.axmininc.com.
Bobwins
Posted: Sat Mar 13 10:29:02 2010
Sold AVR.v in January when I got negative on the markets. Rebought in February and early last week.
Still like AVR.v and think it has a chance to triple in 2010 as production and cashflow rampup. The company is guiding for 100K oz of gold in 2010. That should produce .22 cashflow and a share price over C$2.
Very cheap on a forward cashflow basis and has significant reserves for a junior with this market cap. Acquisition of nearby property should lead eventually to 4 to 6 million oz of reserves near their flagship property.
Bobwins
Posted: Mon Jan 18 7:34:11 2010
AVR.v/AVGCF.pk +.01 to C$.70
This is why Avion bought the adjacent property. New discovery that runs onto their existing property from the new land. Avion still has significant exploration opportunities to expand their resources. I think it will eventually reach 6+million oz for the combined land package.
Press Release Source: Avion Gold Corporation On Monday January 18, 2010, 8:08 am EST
TORONTO, ONTARIO--(Marketwire - Jan. 18, 2010) - Avion Gold Corporation ("Avion" or "the Company") (TSX VENTURE:AVR - News), today announced a new discovery, Fougala 1, and the results of a hole testing the Dioulafoundou zone. Highlights are as follows:
-- Fougala 1 Zone - The significant intersection of 8.02 g/t Au over 22.3
metres is located 2 kilometres north and parallel to the recently
acquired Djambaye II mineralization (Inferred resources of 324,000
ounces Au).
-- Mineralization is at the southern boundary of the Tabakoto property
-- The Fougala 1 Zone and the Djambaye I mineralization appear to be part
of a 10 kilometre long exploration target, which extends northward onto
the Tabakoto Property.
-- Dioulafoundou Zone - Additional high grade mineralization - 4.24 g/t Au
over 14.8 metres - was intersected in northwest-trending structures.
-- Mineralization in northwest-trending structures has now been outlined
over a 300 metre strike length to a vertical depth of 120 metres and
remains open at depth.
-- Avion believes this latest intersection confirms the geological model.
Don Dudek, Senior Vice President, Exploration commented: "The Fougala Zone highlights the importance and value of the acquisition of the Djambaye mineralization. In very short order we have been able to outline two, highly prospective, near surface, 10 kilometre exploration targets, with one of them already hosting an inferred resource of 324,000 ounces of gold. The results from Fougala and Dioulafoundou support Avion's goal to further increase the mineral resources with the 2010 exploration program. I am optimistic that Avion will define mineable resources outside of the known Tabakoto and Segala deposits in 2010."
Technical Details
Fougala Area
The Fougala 1 zone intercept, 8.02 g/t Au over 22.3 metres core length starting at 80.1 metres hole depth, lies in the southwest corner of the Tabakoto property near the recently acquired Kenieba Property (see Figure). The mineralization is along strike from, and 4 kilometres north of, the Djiambaye I mineralization and parallel to the Djambaye II mineralization which contains 324,000 ounces Au (Carl Verley (P. Geo. - January 28, 2008 Great Quest news release - 2,574,000 tonnes grading 3.92 grams per tonne gold) of near surface inferred resources. Mineralization in this new Fougala 1 zone is associated with a northerly-trending, pyrite-mineralized and quartz-veined felsic intrusion and host greywackes. This style of mineralization is different from that at the Tabakoto and Segala deposits and is believed to be identical to that associated with the Djambaye I and Djambaye II zones.
The Djambaye I and II zones cover a strike extent of approximately three kilometres and are open along strike and to depth. Avion is optimistic that the Fougala 1 zone and Djambaye I zones, are part of the same 4 km long mineralized trend that also appears to extend northward into the Tabakoto property where gold-in-soil anomalies extend the target horizon for an additional six kilometers. Several parallel trends and cross structures have not been tested yet. Drilling is planned to test this concept and extend the Djambaye II zone north towards the Tabakoto Property, starting in January.
Dioulafoundou Area
One hole, D-09-03, was drilled into the northwest-trending Dioulafoundou NW zone in 2009 to test the mineralization model. This hole not only validated the model but extended the zone 50 metres down-dip with an intercept of 4.24 g/t Au (3.91 g/t Au capped at 28 g/t) over 14.8 metres (12 metres true width) (see Figure). This zone trends parallel to the well mineralized, northwest-trending cross-structures observed in the Tabakoto Pit and several other untested lineaments in the project area.
The northwesterly trending mineralization intersects an 800+ metre long, northerly-trending zone of mineralization (Dioulafoundou North), which appears to be a southward extension of the same trend that hosts the Tabakoto pit mineralization, located 2.5 kilometres to the north. This northerly-trending zone is still open to depth below 125 metres, open to the south and north and has not been the subject to a formal resource study.
Avion's procedures for handling drill core are consistent with industry practice and described in more detail in previous news releases. Avion continues to present assay composites with high grade samples capped at 28.0 g/t Au, which is the capping level deemed appropriate for the Dioulafoudou Zone (Avion news release May 19, 2009).
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release. Avion Gold Corporation has not completed a feasibility study on the Mali gold projects.
About Avion Gold Corporation
Avion is a Canadian-based gold company focused in West Africa. The Company holds 80% of the Tabakoto and Segala gold projects in Mali. Gold production at these projects has commenced, with approximately 100,000 ounces of production forecast for 2010 with an expected cash cost of US$450 per ounce of gold. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Bobwins
Posted: Mon Jan 11 7:07:33 2010
AVR.v/avgcf.pk +.03 to C$.75
100K oz should produce .22 cashflow at $1100 gold. Normal multiple would be 10X cashflow or C$2.20 price target.
2009 ANNUAL PRODUCTION EXCEEDS TARGET - 51,300 OUNCES
100,000 OUNCES OF GOLD PLANNED FOR 2010
TORONTO, ONTARIO--(Marketwire - Jan. 11, 2010) - Avion Gold Corporation (TSX VENTURE:AVR - News; "Avion" or the "Company") announces record monthly production of approximately 8,100 ounces of gold in December 2009 from its Tabakoto/ S?gala operations in Mali, West Africa, and record quarterly production of approximately 21,300 ounces of gold in the fourth quarter of 2009 at a preliminary cash cost of less than US$495(1) per ounce of gold. The total annual production for 2009 was approximately 51,300 ounces of gold and exceeded the previous forecast (50,000 ounces), at a cash cost expected at less than US$530(1) per ounce of gold.
Since starting mining operations in the first quarter, the company has recorded the following production highlights (see table):
- Quarterly Gold Production has steadily increased
- Ore Grades have increased
- Mill Recoveries have improved
[pre]
------------------------------------------------------------------------
Q1(1) Q2(2) Q3(3) Q4 2009(4)
Partial Quarter Total
------------------------------------------------------------------------
Ore Milled (000 t) 76.0 182.6 125.1 179.1 562.8
------------------------------------------------------------------------
Head Grade (g/t Au) 2.74 1.99 3.25 3.83 2.95
------------------------------------------------------------------------
Recovery (%) 92.8 93.7 95.5 96.7 95.4
------------------------------------------------------------------------
Gold Production (oz) 6,958 10,992 12,517 21,307 51,291
------------------------------------------------------------------------[/pre]
(1) Mill was restarted on February 17, 2009. Gold production includes
747 oz recovered from plant clean-up work in 2009 prior to the mill
restart.
(2) Commercial production was declared May 1, 2009.
(3) Includes 2 weeks downtime due to heavy rainfall and road
transportation issues.
(4) 2009 Total adjusted by -483 oz to reconcile to refined ounces.
During the month of December the Company milled 67,500 tonnes of ore at an average grade of 3.87 g/t Au, with a 96.6% mill recovery.
Commenting on the 2009 production numbers, Avion's President and CEO, Mr. John Begeman, stated: "Avion's focus on this mine has resulted in a highly successful new start up, and has set the stage for Avion's continued growth in 2010 and beyond."
100,000 Ounce Production Planned in 2010
Plans for 2010 include open pit mining at the S?gala Main and NW deposits, and mining a small open pit at the Tabakoto deposit. Underground development of the Tabakoto deposit is planned to be well underway during the year. Gold production is estimated at approximately 23,000 ounces per quarter for the first three quarters, increasing to 32,000 ounces in the fourth quarter as the amount of development ore from Tabakoto underground increases.
Andrew Bradfield, P.Eng., the Chief Operating Officer of the Company, and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
About Avion Gold Corporation
Avion is a Canadian-based gold mining company focused in West Africa. The Company holds 80% of the Tabakoto and S?gala gold projects in Mali. Gold production is planned at approximately 100,000 ounces for 2010, with a longer term goal of achieving 200,000 ounces per year. Avion has a highly skilled management team, with a focus on growth and consolidation within West Africa.
Cautionary Notes
Bobwins
Posted: Tue Jan 5 12:24:12 2010
Avion has been hot. +.06 to C$.73 today on huge volume of 14.8million shares. Sprott is now the biggest shareholder of Avion and one of their analysts mentioned AVR.v as a buy due to a very low p/e ratio projected for 2010.
I bought AAB.to recently, instead of AVR.to, as a cheaper way to add exposure to AVR.v plus several other junior golds with good potential. I would have been slighty better off to stick with AVR.v directly. Up 29% on my most recent purchase of Avr.v while only up 21% on AAB.to. Still think it was a good decision. AAB.to has lots of CRK.to, AVR.v, AAA.v and SUE.to. and I like all those stocks.
Bobwins
Posted: Thu Dec 31 11:32:21 2009
Added some more AAB.to yesterday at .40. Aberdeen and Avion have been climbing together the last few days. AAB.to is at +.045 to C$.455 today. AVR.v is +.03 to C$.64
Gold is good!
Bobwins
Posted: Tue Dec 29 9:50:34 2009
AVR.v +.03 to C$.56
Added some more Avion Gold. This is part of a Bloomberg article interviewing Sprott. 2.9X 2010 eps is dirt cheap.
Since last year, Sprott’s firm has become the biggest shareholder of Avion Gold Corp., which mines in Africa, and East Asia Minerals Corp., which explores in Indonesia. Avion is undervalued for its projected 2010 production, he said. According to a Dec. 16 note from analyst Eric Zaunscherb of Canaccord Financial Inc., Avion was trading at 2.9 times its estimated 2010 earnings, compared with a multiple of 10.5 for its peers.
Regarding East Asia Minerals, Sprott said, “I just get the feeling that these guys could find a multi-double-digit-million- ounce property.”
East Asia completed a 2,000-meter, 14-hole drilling program at its largest Indonesian property that Canaccord analyst Wendell Zerb called “encouraging” and indicative of a large zone of gold mineralization. Over the next two quarters, East Asia is to drill 45 more holes at the site and begin drilling in four more locations in the country, Zerb said.
Outside of the gold industry, Sprott owns shares of Wavefront Technology Solutions Inc., a TSX Venture Exchange- listed company whose products are meant to increase oilfield production. Its technology could be used on at least two-thirds of the world’s oil wells, he said.
Sprott, 65, founded his current firm in 2001 after divesting Sprott Securities, now Cormark Securities Inc., to its employees.
Bobwins
Posted: Tue Dec 22 9:47:04 2009
added some more aab.to at C$.36 today. Hard to ignore the bargain when the portfolio has a NAV of 1.08 and climbing and the stock is selling for C$.36.
Bobwins
Posted: Mon Dec 21 12:41:57 2009
decided to add to Aberdeen International, AAB.to, instead of Avion Gold. Aberdeen is the investment/financing arm of Stan Bharti's group of companies. They hold over 5 million shares of AVR.v as well as Crocodile Gold, a recent Australian issue that is reopening old Australian mines.
Aberdeen also participates in private placements for early stage exporation companies that are still private.
Even though Aberdeen is up sharply this year from .10 to .355, the NAV of the portfolio is C$1.08 as of their last Q3 report.
Huge discount to the underlying value here so decided to buy more exposure to Avion and other junior explorers this way.
Aberdeen does have some small revs from 1%NSF agreements with First Uranium and Simmer and Jack gold mines. But basically you are buying a small mutual fund at a huge discount. Bobwins
Bobwins
Posted: Sun Dec 20 1:08:07 2009
I am trying to add to AVR.v. The last two PR's have been positive.
They found another high grade gold zone at their Tabakoto mine.
http://finance.yahoo.com/news/Avion-Discovers-Another-Gold-ccn-944742022.html?x=0&.v=1
They also are buying 100% of an adjacent property with interesting drill results. Apparently the gold runs off Avion's original Tabakoto land onto the new land. This could signal a big increase in Avion resources/reserves. Additional reserves would increase mine life and make it easier to justify production capacity increases to 200K oz.
