Jul 20 2015
Avnel Gold Mining Limited ("Avnel" or the "Company") is pleased to report additional assays from its recently completed drill program that is in support of a Definitive Feasibility Study ("DFS") for its Kalana Main project in south-western Mali, West Africa.
Kalana Main Drill Program Highlights:
- Significant high-grade mineralisation intersected beneath Vein 1
- Drilling continues to encounter mineralisation over long intersections
- Drilling continues to define the up-dip extension of Vein 1 near the western limits of the deposit
- Assays from the eastern extension and south-eastern extension and infill drilling are pending
- Updated mineral resource estimate expected in late September 2015
"I am pleased to report that assays from extension, infill, and gap drilling from the western, northern, and central portions of the deposit continue to define the extents of the deposit and reinforce our confidence in our geological model. We remain confident that this drilling will support the conversion of a meaningful portion of our Inferred Resource into the measured plus indicated category and delineate new mineral resources," stated Howard Miller, Avnel's Chairman and CEO.
"We completed the drill program in early July and are eagerly awaiting assays from extension and infill drilling near the eastern and south-eastern limits of the deposit. This drilling represents nearly one-third of our program and presents a significant opportunity to extend zones of known mineralisation. We continue to expect the completion of an updated Mineral Resource estimate in late September, which will form the basis for a Definitive Feasibility Study that is scheduled to be completed in the first quarter of next year."
Exploration at Kalana Main Continues to Deliver Positive Results
The Company drilled 181 holes over 30,131 metres ("m") in this drill program, which is now complete. The results reported in this news release reflect assays from 50 holes over 8,209 m of drilling assayed (122 holes over 19,108 m drilling reported to date). Select composite assays and related drill hole information is presented in the tables at the end of this news release. Additional assays from the remainder of the drill program are pending, mostly from the eastern and south-eastern portions of the deposit, and will be reported in due course.
For maps of the general layout of the drill program, the location of drill lines, and the location of individual drill holes, please refer to figures 1 through 3 near the end of this news release, respectively.
As detailed in the Company's March 26, 2015 news release, the current Mineral Resource for the Kalana Main deposit consists of an Indicated Resource of 2.11 million ounces of gold (14.5 million tonnes grading 4.52 grams of gold per tonne ("g/t Au") at a 0.9 g/t Au cut-off) and an Inferred Resource of 0.31 million ounces of gold (1.8 million ounces grading 5.28 g/t Au) at a 0.9 g/t Au cut-off). Also reported was an Exploration Target of 0.7 to 1.0 million ounces (between 5.3 and 6.6 million tonnes grading between 3.9 and 4.7 g/t Au), which is outside the Kalana Main Mineral Resource estimate, but contained within a conceptual pit shell.
The aforementioned assessment of potential quantity and grade is conceptual in nature and there has not been sufficient exploration to define a mineral resource and the preliminary economics are not sufficient to support a reasonable expectation for economic extraction. The Exploration Target is largely based on a wide spacing of drill holes. As a result, confidence in this part of the model is not sufficient to define a mineral resource and therefore is currently defined as an Exploration Target rather than as part of the Mineral Resource for the Kalana Main deposit. It is uncertain if further exploration will result in any portion of the Exploration Target being delineated as a mineral resource.
Significant High-Grade Mineralisation Intersected Beneath Vein 1
Deeper infill and gap drilling along lines N000 and S050 has intersected significant high-grade gold mineralisation within the central and west-central portions of the deposit. The gold mineralisation is interpreted to include Vein 1, the most significant vein at Kalana Main, and several veins beneath it. This mineralisation typically consists of the primary, shallow dipping, high-grade quartz vein packages.
Significant composite intervals from beneath Vein 1 include:
• KA-SOM-RCDD007 7.8 g/t Au over 11 m
including 53.1 g/t Au over 1 m
including 19.8 g/t Au over 1 m
and 2.1 g/t Au over 16 m
• KA-SOM-RCDD008B 5.0 g/t Au over 6 m
• KA-SOM-RCDD006 10.3 g/t Au over 6 m
including 54.1 g/t Au over 1 m
This drilling continues to confirm the geological model and is expected to improve grade continuity in the block model and result in an increase to the Mineral Resource. This drilling has also better defined the western limits of the deposit.
A summary of select composite assay and drill hole information from this drilling is presented in tables 1 and 2, respectively. Additional assays from this zone are pending.
Drilling Continues to Encounter Mineralisation over Long Intervals
Infill and gap drilling along lines W280, W340, W386, and W445 has encountered long intersections of gold mineralisation in the central and west-central portions of the deposit in saprolite, transitional, and fresh rock material. The gold mineralisation across this complex portion of the deposit typically consists of the primary, shallow dipping, high-grade quartz vein packages that have been locally overprinted by abundant sub-vertical lower grade veins within north-south trending structural corridors.
Significant intervals from these lines include:
• KA-SOM-RC583 6.0 g/t Au over 15 m
including 21.8 g/t Au over 1 m
including 55.9 g/t Au over 1 m
• KA-SOM-RC638 2.6 g/t Au over 12 m
including 12.4 g/t Au over 1 m
and 2.4 g/t Au over 17 m
This drilling is expected to improve grade continuity in the block model for both the high-grade vein packages and the corridors of lower grade sub-vertical veins and result in an increase to the Mineral Resource in this portion of the deposit.
The overprinting of the sub-vertical veins on the vein packages is significant because it has resulted in longer composites of mineralisation, albeit at a lower grade, compared to other portions of the deposit. Consequently, the Company will examine the potential for lower cost bulk mining in these portions of the deposit relative to the selective mining approach previously envisioned. The reassessment of portions of the deposit as bulk tonnage targets and better definition of unmineralised material has the potential to positively impact the waste-to-ore ratio and other key performance indicators in the DFS.
Furthermore, the presence of mineralisation within the oxidised saprolite horizon is significant because it typically exhibits higher metallurgical recoveries and lower mining and processing costs relative to deeper transitional and fresh rock material. The shallow nature of this mineralisation is also significant as it may be available for mining in the early years of the mine plan and thus has the potential to positively impact a number of key performance indicators in the upcoming DFS.
A summary of select composite assay and drill hole information from this drilling is presented in tables 3 and 4, respectively.
Similarly, assays from infill and extension drilling along lines W280, W312, W340, W360, and W510 continue to delineate primary, shallow dipping, high-grade quartz vein packages that have been locally overprinted by abundant sub-vertical lower grade veins contained within north-south trending structural corridors. This mineralisation is typically within the favourable saprolite horizon and in close proximity to the northern limits of the pit shell.
Significant composite intervals from this drilling includes:
• KA-SOM-RC542 2.5 g/t Au over 28 m
and 2.4 g/t Au over 20 m
• KA-SOM-RC649B 10.4 g/t Au over 5 m
including 41.2 g/t Au over 1 m
• KA-SOM-RC648 5.2 g/t Au over 7 m
including 26.6 g/t Au over 1 m
This drilling is expected to result in localised northern extensions to in-pit portions of the Mineral Resource, which is highly encouraging as this portion of the block model does not contain any mineralisation. The delineation of new in-pit mineralisation has the potential to positively impact the waste-to-ore ratio and other key performance indicators for the DFS.
The preliminary analysis of this drilling indicates that the extents of mineralisation in close proximity to the north-western, northern, and north-eastern limits of the deposit has been generally defined.
A summary of select composite assay and drill hole information from this drilling is presented in tables 5 and 6, respectively.
Western Extension Drilling Continues to Define High-Grade Vein 1 Mineralisation
The Company has also received additional assays from lines W600 and W650 that continue to delineate the up-dip extension of Vein 1 and the western limits of the deposit.
Significant composite intervals from the western extension drilling include:
• KA-SOM-DD165 8.7 g/t Au over 4 m
including 31.4 g/t Au over 1 m
• KA-SOM-RCDD001 7.8 g/t Au over 8 m
including 56.3 g/t Au over 1 m
The continued delineation of the up-dip extension of Vein 1 in the favourable saprolite horizon is highly encouraging as it is expected to support the conversion of a meaningful portion of the Inferred Resource to the measured plus indicated category. The shallow nature of this mineralisation is also significant as it may be available for mining in the early years of the mine plan and is thus likely to positively impact a number of key performance indicators in the upcoming DFS.
The preliminary analysis of this drilling indicates that the mineralisation in close proximity to the western limits of the deposit has been generally defined.
A summary of the select composite assay results and drill hole information from this drilling is presented in tables 7 and 8, respectively. Additional assays from line W600 are pending.
Assays from Eastern Infill and Extension Drilling Pending
The drill program was completed on July 5 and assays from 70 drill are pending, mostly from extension drilling to east of the deposit plus infill and extension drilling in south-east, as shown in Figure 1. This drilling represents nearly one-third of the total drill program and presents an opportunity to extend areas of known mineralisation into portions of the block model that does not contain any mineralisation.
The Company has received assays from extension drilling on the eastern portion of the deposit from a limited number of holes, which have yielded modest results so far, with the most significant composite interval being:
• KA-SOM-DD175 174.0 g/t Au over 3 m
including 518.4 g/t Au over 1 m
The implications of the initial results from eastern extension drilling are uncertain as these holes are outside of the eastern limits of the pit shell at depth. Additional assays from the eastern extension drilling are pending. No assays from infill and gap drilling in the south-eastern portion of the deposit have been received.
A summary of select composite assays and drill hole information from eastern extension drilling is presented in tables 9 and 10, respectively.
Updated Mineral Resource to Lay the Foundation for the Definitive Feasibility Study
The Company continues to expect to complete the next revision to the Mineral Resource estimate in late September 2015. This Mineral Resource is expected to form the basis for a Definitive Feasibility Study that is scheduled to be completed in the first quarter of 2016.
QA/QC Programs
Exploration programs are conducted under the supervision of Dr. Olivier Féménias, EurGeol 1115, Avnel's Vice-President, Geology. Dr. Féménias, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis. Sample intervals are usually 1.0 m. Samples are prepared on site and sent to BIGS Global Burkina SARL ("BIGS Global") in Ouagadougou, Burkina Faso for analysis. Analytical method is a 2-kilogram bottle-roll cyanidation using a LeachWELL catalyst. The leach residues from all samples with a grade in excess of 0.3 g/t Au were prepared by BIGS Global and split to 50 grams and then analyzed by standard fire assay. Composites presented in the assay results tables include intervals with a grade - thickness equal or greater than 10 grams of gold per tonne - metre ("g/t.m") with a minimum grade of 0.8 g/t Au over a 1 m minimum width with a maximum internal dilution of 2 m. No assays results were capped.