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Avocet Mining PLC (AVM)

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Tuesday 10 August, 2010

Avocet Mining PLC

Positive Gold Grades In Drill

RNS Number : 7603Q
Avocet Mining PLC
10 August 2010
 



AVOCET MINING PLC

POSITIVE GOLD GRADES IN DRILLING

AT THE SOUMA TREND IN BURKINA FASO

Avocet Mining PLC ("Avocet" or "the Company") announces positive results from the first phase of drilling at the Souma Trend, Bélahouro district, Burkina Faso. Highlights are summarised in Table 1 and include:

 

·    13 metres down hole @ 4.09 g/t Au from 8 metres depth,

·    18m @ 2.60 g/t Au from 16 metres,

·    3m @ 11.2 g/t Au from 3 metres,

·    3m @ 11.0 g/t Au from 82 metres,

·    13m @ 2.48 g/t Au from 14 metres, and

·    3m @ 10.7 g/t Au from 45 metres.

 

Figure 1 shows the drill hole plan.

 

http://www.rns-pdf.londonstockexchange.com/rns/7603Q_-2010-8-9.pdf

 

 

These first phase results represent drilling at the Dynamite prospect, one of several gold prospects that occur within the 16 kilometre long gold-in-soil anomaly known as the Souma Trend, and the first to be tested by drilling over the coming months. The Souma Trend is located approximately 20 kilometres east-north-east of Avocet's Inata gold mine ("Inata"), which currently has Proven and Probable Ore Reserves of 0.9 million ounces and Mineral Resources of 1.7 million ounces. Avocet controls eight exploration permits in the Bélahouro District surrounding Inata that cover a combined area of 1,660 square kilometres.

 

Avocet initiated a 22,000-metre drill programme in May 2010 to follow up on encouraging results reported from scout drilling at Souma in 2005 (that included 6m @ 13.0 g/t Au and 30m @ 3.06 g/t Au).  As part of this programme, Avocet has completed 55 RC drill holes (5,562 metres) on the Dynamite prospect. The average drill hole depth is 100 metres with the deepest hole being 162 metres. All holes are angled at -60 degrees towards the east. Samples have been submitted for gold analysis by fire assay using a 50-gram charge at the SGS laboratory in Ouagadougou. Avocet has implemented industry-standard QAQC procedures.

 

The results from this drilling programme indicate that the Dynamite mineralisation is located within two sub-parallel, steeply west-dipping structures with a strike length of at least 600 metres. Mineralisation is hosted within sheared and altered gabbro and is associated with minor quartz veining. There are indications that some supergene enrichment of gold has taken place, as the better intersections are all located within the weathered zone. The top of fresh rock is located at about 45 metres depth. This programme has produced encouraging results and indicates that potentially economic ore grades are located close to surface and may be amenable to open pit mining.

 

The recently completed airborne electro-magnetic (VTEM) survey has shown that the Souma Trend is part of a larger 30 kilometre long and 3 kilometre wide structural zone that separates a major granitic batholith in the east from the volcano-sedimentary terrane in the west. The latter hosts the Inata gold mine. Numerous other gold prospects are located on the Souma Trend, including the narrow high grade quartz veins at Miilam that have been targeted by artisanal miners.

 

The results from the entire 22,000 metre drilling programme will enable the calculation of an Inferred Mineral Resource reportable under the Australian JORC Code (2004) and Canadian NI 43-101 code. This is scheduled to be completed in October.

 

Commenting on the drilling results from Dynamite, Brett Richards, Chief Executive Officer for Avocet, stated:

"The initial drilling results at Dynamite have proven that the Souma Trend hosts significant gold mineralisation in widths and grades that may generate an attractive satellite or independent mining operation to the Inata gold mine. I look forward to the results of the remaining drill programme that will be reported in September."

 

All references to resources and exploration results have been reviewed and approved for release by Mr Peter Flindell, BSc (Hons) MAusIMM, Executive Vice President of Exploration for Avocet, who has more than 20 years experience in the field of activity concerned and is a Competent Person as defined by the JORC Code (2004). He has consented to the inclusion of the technical information in this announcement in the form and context in which it appears.

 

 

For further information please contact:

Avocet Mining PLC
Buchanan Communications
Ambrian Partners Limited
J.P. Morgan Cazenove
Arctic Securities
First Securities
 
Financial PR Consultants
NOMAD and Joint Broker
Lead Broker
Financial Adviser
Financial Adviser
Brett Richards, CEO
Mike Norris, FD

Hans-Arne L'orange, EVP Business Development & Investor Relations

Bobby Morse

Katharine Sutton

Richard Brown

Richard Greenfield

Michael Wentworth-Stanley
Anish Patel

Arne Wenger

 

Stein Hansen

Eirik Lilledahl

 

+44 20 7766 7676

+44 20 7466 5000

+44 7802 875227

+44 20 7634 4700

+44 20 7588 2828

+47 21013100

+47 2323 8000

www.avocet.co.uk

www.buchanan.uk.com

www.ambrian.com

www.jpmorgancazenove.com

www.arcticsec.no

www.first.no

 

 

Notes to Editors

 

Avocet Mining PLC ("Avocet" or "the Company") is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country's largest gold producer) and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).

 

The Company recently announced that it had initiated exploration within the Inata Mining Licence area and in the surrounding Bélahouro district with the objective of significantly increasing Inata's resource and reserve base as well as investigating the highly prospective Souma Trend, located 20 km from the Inata mill.  The Company has a number of other advanced exploration projects in West Africa and South East Asia.

 

Background to operations

 

Inata has a resource of 1.7 million ounces and reserves of 932,000 ounces.  Inata poured first gold in December 2009 and has now reached a production rate in excess of 11,000 ounces per month. Other assets in West Africa include exploration licences in Burkina Faso, Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a resource of 666,500 ounces).

 

Penjom is Malaysia's largest gold mine and was developed by Avocet in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur.

 

North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004.  North Lanut is located within a Contract of Work, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold.  Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.

 



TABLE 1 - SUMMARY OF DRILLHOLE INTERCEPTS AT DYNAMITE, SOUMA TREND

 

Hole

ID

Easting

(m)

Northing

(m)

RL

(m)

Azimuth

(deg)

Dip

(deg)

Hole Depth (m)

From

(m)

To

(m)

Interval

(m)

Grade

(g/t Au)

SRC0098

701,625

1,596,560

286

90

-60

50

1

17

16

1.53

SRC0099

701,600

1,596,560

286

90

-60

100

10

22

12

0.75

SRC0100

701,575

1,596,560

286

90

-60

130

53

60

7

0.95

SRC0101

701,550

1,596,560

286

90

-60

162

no significant intercepts

SRC0102

701,630

1,596,500

285

90

-60

50

8

21

13

4.09

SRC0103

701,583

1,596,500

285

90

-60

125

68

70

2

3.97








8

12

4

0.90

SRC0104

701,530

1,596,500

286

90

-60

100

45

48

3

10.7








66

71

5

0.79

SRC0105

701,640

1,596,425

284

90

-60

52

no significant intercepts

SRC0106

701,575

1,596,425

284

90

-60

150

42

46

4

1.09








86

89

3

2.93








112

122

10

0.81








128

131

3

4.30

SRC0107

701,700

1,596,400

285

90

-60

100

no significant intercepts

SRC0108

701,650

1,596,400

284

90

-60

100

3

6

3

11.2

SRC0109

701,600

1,596,400

284

90

-60

100

no significant intercepts

SRC0110

701,550

1,596,400

284

90

-60

100

41

47

6

0.82








92

95

3

1.52








99

100

1

12.2

SRC0111

701,500

1,596,400

284

90

-60

108

no significant intercepts

SRC0112

701,655

1,596,400

284

270

-60

100

16

34

18

2.60








82

85

3

11.0

SRC0113

701,575

1,596,360

284

90

-60

100

7

11

4

1.39








32

38

6

1.28

SRC0114

701,525

1,596,360

284

90

-60

100

31

33

2

1.56

SRC0115

701,650

1,596,300

284

90

-60

100

4

9

5

0.90








12

18

6

0.94








21

26

5

1.19

SRC0116

701,595

1,596,300

284

90

-60

100

14

27

13

2.48








33

35

2

3.46








92

100

8

2.42

SRC0117

701,545

1,596,300

283

90

-60

110

29

42

13

2.21








47

52

5

0.89








68

73

5

1.47

SRC0118

701,500

1,596,300

284

90

-60

100

49

53

4

2.27








73

84

11

0.45








88

99

11

1.96

SRC0119

701,630

1,596,230

283

90

-60

120

no significant intercepts

SRC0120

701,540

1,596,230

283

90

-60

105

81

86

5

2.47

SRC0121

701,625

1,596,180

283

90

-60

54

no significant intercepts

SRC0122

701,595

1,596,180

283

90

-60

90

9

24

15

1.68

SRC0123

701,545

1,596,180

283

90

-60

118

6

8

2

1.81








66

74

8

1.11

SRC0124

701,500

1,596,180

284

90

-60

100

no significant intercepts

SRC0125

701,610

1,596,130

284

90

-60

100

9

10

1

3.11








81

85

4

2.23

SRC0126

701,550

1,596,130

284

90

-60

83

no significant intercepts

SRC0127

701,500

1,596,130

284

90

-60

100

no significant intercepts

SRC0128

701,700

1,596,060

284

90

-60

100

49

56

7

1.34

SRC0129

701,650

1,596,060

284

90

-60

88

no significant intercepts

SRC0130

701,600

1,596,060

285

90

-60

100

no significant intercepts

SRC0131

701,550

1,596,060

285

90

-60

100

no significant intercepts

SRC0132

701,700

1,596,000

284

270

-60

100

no significant intercepts

SRC0133

701,650

1,596,000

284

90

-60

100

no significant intercepts

SRC0134

701,600

1,596,000

285

90

-60

74

27

29

2

3.94

SRC0135

701,750

1,595,900

284

90

-60

102

32

38

6

1.96








7

15

8

0.53

SRC0136

701,700

1,595,900

284

90

-60

100

no significant intercepts

SRC0137

701,650

1,595,900

285

90

-60

102

no significant intercepts

SRC0138

701,600

1,595,900

285

90

-60

100

35

36

1

5.76

SRC0139

701,750

1,595,850

284

90

-60

75

14

18

4

1.10

SRC0140

701,725

1,595,850

284

90

-60

100

30

33

3

1.40

SRC0141

701,675

1,595,850

284

90

-60

150

no significant intercepts

SRC0142

701,750

1,595,800

284

90

-60

102

65

74

9

0.52

SRC0143

701,720

1,595,800

284

90

-60

100

59

65

6

1.01

Hole

ID

Easting

(m)

Northing

(m)

RL

(m)

Azimuth

(deg)

Dip

(deg)

Hole Depth (m)

From

(m)

To

(m)

Interval

(m)

Grade

(g/t Au)

SRC0144

701,663

1,595,800

284

90

-60

125

58

65

7

0.55








112

114

2

1.65

SRC0145

701,600

1,595,800

284

90

-60

92

45

46

1

5.59

SRC0146

705,080

1,590,700

296

90

-60

84

58

65

7

0.73








69

77

8

0.49

SRC0147

701,650

1,596,700

296

90

-60

111

no significant intercepts

SRC0148

701,595

1,596,700

296

90

-60

108

no significant intercepts

SRC0149

701,550

1,596,700

296

90

-60

102

22

24

2

1.92

SRC0150

701,625

1,596,600

296

90

-60

100

0

3

3

2.95








22

26

4

0.99

SRC0151

701,575

1,596,600

296

90

-60

100

22

24

2

3.01








51

56

5

0.93








63

65

2

8.30

SRC0152

701,525

1,596,604

296

90

-60

102

35

38

3

9.07








63

72

9

1.09








75

77

2

1.86

SRC0153

701,475

1,596,600

296

90

-60

122

32

36

4

1.26








42

44

2

15.2








110

120

10

0.42



















 

Notes:

Individual gold assays have a top cut of 30 g/t Au and a lower cut of 0.5 g/t Au for intercept calculations.


Maximum internal waste allowed is 2m and minimum mineralised interval is 1m




All holes are drilled from surface using conventional reverse circulation drilling techniques and conducted by West African Drilling Services, a recognised

independent drilling contractor.


All samples have been prepared and analysed by SGS Laboratories in Ouagadougou, Burkina Faso. Gold has been analysed by fire assay using a 50-gram charge.


All sample batches have passed Avocet's QAQC protocols

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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