Avnel Gold Boosts Indicated Mineral Resource at Kalana Main Deposit

- March 26th, 2015

Avnel Gold Mining Ltd. (TSX:AVK) released an updated mineral resource statement for its 80-percent-owned Kalana project, located in Mali. It also said that it’s set to start a 141-hole, 23,500-meter program at the Kalana Main deposit.

Avnel Gold Mining Ltd. (TSX:AVK) released an updated mineral resource statement for its 80-percent-owned Kalana project, located in Mali. It also said that it’s set to start a 141-hole, 23,500-meter program at the Kalana Main deposit.

Press release highlights include:

  • Diluted Indicated Mineral Resource of 2.17 million ounces at the Kalana Main deposit (22.1 million diluted tonnes at a diluted grade of 3.06 g/t Au at a 0.9 g/t Au cut-off)
  • Total Indicated Mineral Resources increased 67% to 2.15 million ounces since the PEA (15.2 million tonnes grading 4.40 g/t Au at a 0.9 g/t Au cut-off)
  • Total Inferred Mineral Resource increased 24% to 0.38 million ounces since the PEA (2.18 million tonnes grading 5.33 g/t Au at a 0.9 g/t Au cut-off)
  • An Exploration Target of 0.7 to 1.0 million ounces at the Kalana Main deposit (5.3 to 6.6 million tonnes grading between 3.9 and 4.7 g/t Au)
  • Initial Inferred Mineral Resource of 70,000 ounces at the Kalanako satellite deposit (380,000 tonnes grading 5.55 g/t Au at a 0.9 g/t Au cut-off)
  • 141-hole drill program to expand and infill zones of known mineralisation
  • DFS completion date extended to Q1 2016 to design a larger open-pit mining operation

Howard Miller, chairman and CEO of Avnel, commented:

I am pleased to report that since last year’s PEA that pit-constrained diluted Indicated Resources at the Kalana Main deposit have increased to 2.17 million ounces at an average diluted grade of 3.06 grams per tonne at a gold price of $1,100 per ounce. On a related note, pit-constrained undiluted Inferred Resources have increased 52% to 380,000 ounces since the PEA, which is inclusive of the an initial Mineral Resource for the nearby Kalanako satellite deposit. We are also reporting an updated Exploration Target that suggests the potential to define up to a million ounces within a Conceptual Pit outside the Mineral Resource for the Kalana Main deposit.

I am also pleased to announce that our 141-hole, 23,500-m drill program at Kalana Main is about to commence. The drill program is designed to expand zones of known mineralisation, better define mineralisation in key areas, and convert Inferred Mineral Resources to Indicated Mineral Resources. This drilling is expected to lead to the optimisation of the overall potential economics of the project and improve key performance indicators.

Click here to read the full Avnel Gold Mining Ltd. (TSX:AVK) press release.

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