Emerging Junior Gold Exploration and Producer
|ABOUT THE COMPANY
Avnel is a gold mining producing company operating the Kalana gold mine(West Africa Gold Exploration ) and is engaged in the exploration of the Kalana Exploitation Permit and Fougadian exploration permit. Avnel's principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de Kalana (“SOMIKA”). SOMIKA is the holder of a 30 year exploitation permit encompassing 387.4 sq. km. around and to the south of the operating Kalana gold mine in south west Mali. Avnel also holds the Fougadian exploration permit covering an area of 150 sq. km. which lies to the south of the main Kalana exploitation permit.
The Kalana exploitation permit in Mali is being actively explored by joint venture partner IAMGOLD Corporation (“IAMGOLD”). The Option Agreement dated August 11, 2009 provides IAMGOLD with the option to earn an initial 51% interest in Avnel’s share of the Kalana project by spending US$11,000,000 on exploration activities over a three year period and by delivering a NI-43-101 resource calculation of at least 2 million ounces of gold as well as proceeding with a feasibility study.
THE KALANA MINE AND PERMIT BACKGROUND AND EXISTING RESOURCES
The Kalana Mine and Permit was historically owned by a Malian State company (Sogemork) with exploration and mine construction supported by Russian financial and technical aid. The mine operated for a few years until it was put on care and maintenance on the break up of the Soviet Union in 1991. The Kalana Mine and Permit was privatized by international tender and awarded to Avnel in December 2002, and in 2005 a NI 43-101 compliant technical report by Snowdens (“The Snowden Technical Report”) classified 1,020,000 oz gold as a measured and indicated resource and 249,000 oz gold as an inferred resource. Gold hosted within shallow dipping veins comprised 80% of the mineral resource estimates. The tender conditions required the small Russian built gravity recovery mine be put into immediate production, precluding a re-evaluation of the deposit for bulk mineable potential at that time. The Mine, which continues to operate, is located in the northwest corner of the Permit and is accessible to a depth of 180 metres below surface. The underground access is extremely valuable in the exploration programme to test the bulk mineable potential which is now undertaken by IAMGOLD.
RECENT PROJECT MILESTONES ACHIEVED
Establishment of an IAMGOLD exploration team at the Kalana Mine, enhancing Avnel’s existing West Africa Gold Exploration infrastructure including the expansion of the SGS assay laboratory on site and a new sample preparation facility.
Geophysical data collection over the whole Kalana Permit, as well as the 150 km² Fougadian Permit contiguous with the southern boundary of the Kalana Permit.
Completion of the digital capture of the very large historical geological and exploration database resulting from the previous Russian exploration program.
Collection of over 3,700 grab samples from the underground workings in the Kalana Mine and first pass assaying of these samples.
Completion of 9,800 metres of diamond drilling in 40 drill holes in a program designed to test potential mineralised structures outside the known mineral resource. 2
Logging and interpreting of 5,000 of diamond drill core.
First pass assaying of 2,851 metres of diamond drill core.
Commencement of a 12,000 metres RC drill programme designed to: 1) extend the Kalana Mine zone 2) evaluate the Kalanako Prospect (previously drilled by the Russians), located 3 km to the north east of the Kalana Mine 3) test the Dadjan zone, a coincident geophysical and geochemical target located southeast of the Kalana Mine
Termite mound geochemical sampling over the northern 60 km² priority zone in proximity to the mine is completed and is well advanced over the remainder of the Kalana Permit.
On-going assessment of sampling techniques and assay protocols to better quantify the coarse gold mineralisation in the Kalana deposit.
West Africa Gold Exploration Permit Area, Southern Mali” dated April 18, 2006. The report is available on the Avnel Gold web site....
Kalana Phase 3 Exploration Drill Program, West Africa Gold Exploitation Permit, South Mali, West Africa, September 2nd, 2005.....
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