
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 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.
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