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Avocet Mining PLC (AVM)

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Monday 20 September, 2010

Avocet Mining PLC

Additional Positive Drilling

RNS Number : 9319S
Avocet Mining PLC
20 September 2010
 



ADDITIONAL POSITIVE DRILLING RESULTS AT SOUMA

 

200,000m drill programme for next 9 months

 

Avocet Mining PLC ("Avocet" or "the Company") announces further positive results from scout drilling of several prospects on the Souma Trend in Bélahouro district, Burkina Faso.  Highlights of high grade mineralised zones are summarised below and detailed in Table 1:

 

·   8 metres down hole @ 9.42 g/t Au from 23 metres depth

·   3m @ 21.9 g/t Au from 87 metres

·   8m @ 9.42 g/t Au from 23 metres

·   9m @ 5.52 g/t Au from 39 metres

·   5m @ 8.48 g/t Au from 79 metres

·   8m @ 5.04 g/t Au from 89 metres

·   6m @ 8.07 g/t Au from 54 metres

·   6m @ 6.02 g/t Au from 83 metres

 

The Souma Trend is a 16 kilometre long gold-in-soil anomaly located approximately 20 kilometres east-north-east of Avocet's Inata Gold Mine ("Inata"), which currently has Mineral Resources of 1.84 million ounces of gold. The recently completed airborne geophysical survey has shown that the Souma Trend is part of a larger 30 kilometre long structural corridor. Avocet controls eight exploration permits in the Bélahouro District surrounding Inata that cover a combined area of 1,660 square kilometres, including the Souma Trend and 30 kilometre long corridor.

 

On 10 August 2010 Avocet announced positive results from 55 scout drill holes (5,562 metres) at Dynamite Prospect, representing the initial phase of drilling on the Souma Trend. The results announced today are from an additional 127 scout drill holes (12,773 metres), evaluating the southern ten-kilometre portion of the Souma Trend to the south of Dynamite Prospect. Drilling has been conducted on 100-200 metre centres to an average depth of 100 metres. The northern portion of the Souma Trend is yet to be drilled.

 

This drilling has tested vein zones at the Miilam and Boulili Prospects as well as northeast-striking structures that cross the Trend and appear to focus mineralisation. Figure 1 in the version of this announcement which appears on the Company's web site shows a plan of the drill collars, the location of the Prospects, and significant drilling intercepts.

 

These results indicate that quartz veins comprising the 9 kilometre long Miilam Prospect are mineralised in three distinct segments: Miilam North (1300 metres long averaging 6 metres wide), Miilam Central (1600 metres long averaging 12 metres wide) and Miilam South (1200 metres long averaging 10 metres wide). The Miilam Prospect comprises veins that strike north-south to northwest and dip at 60-70 degrees to the west. Gold mineralisation is associated with massive quartz veins up to 20 metres wide. Significant intercepts at Miilam include:

 

Miilam North

·   11m @ 1.36 g/t Au from 46 m depth in SRC0227;

 

Miilam Central

·   8m @ 9.42 g/t Au from 23 m plus 9m @ 5.52 g/t Au from 39 m in SRC0162;

·   5m @ 8.48 g/t Au from 79m in SRC0161;

·   8m @ 5.04 g/t Au from 89m in SRC158;

 

Miilam South

·   6m @ 8.07 g/t Au from 54m in SRC0263;

·   6m @ 6.02 g/t Au from 83m in SRC0264; and

·   7m @ 2.82 g/t Au from 69m in SRC0266.

 

The Boulili Prospect occurs in a parallel zone of quartz veining that occurs over a 5 kilometre strike length to the west of Miilam and south of Dynamite. In the south of Boulili gold mineralisation is hosted by narrow discontinuous quartz veins that become thicker and more continuous towards the north. Veining is focused along a sheared contact zone. Significant intercepts include 11m @ 2.29 g/t Au from 35 metres down hole depth in SRC0198 and 16m @ 1.33 g/t Au from 80m depth in SRC0202.

 

Drilling of the immediate granite contact did not intersect significant mineralisation. Drill testing of the north-east striking structures intersected 3m @ 21.9 g/t Au from 87 metres depth in SRC0283 suggesting that these structures focus high-grade mineralisation.

 

Avocet is currently reviewing the drilling results and will estimate an Inferred Mineral Resources compliant with NI43-101 and JORC Code (2004). The Company has awarded contracts for a 200,000 metres RC and diamond drilling programme that will focus on the targets in and around Inata that have been highlighted by the recent VTEM survey. Drill rigs are currently being mobilised to site and drilling is expected to commence by the end of September.

 

 

All references to Exploration Results have been reviewed and approved for release by Mr Peter Flindell (MAusIMM), Executive Vice President of Exploration for Avocet. Mr Flindell has more than 20 years experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2004 Edition). 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 announced in May 2010 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 1.84 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 SOUTHERN 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)

Prospect

SRC0157

705,219

1,590,200

238

90

-60

135

91

98

7

1.69

Miilam Central

SRC0158

705,303

1,590,094

218

90

-60

110

89

97

8

4.07

Miilam Central

SRC0159

705,319

1,590,043

220

90

-60

120

87

91

4

2.07

Miilam Central








95

98

3

2.49

Miilam Central

SRC0161

705,345

1,590,000

226

90

-60

90

79

84

5

8.48

Miilam Central

SRC0162

705,404

1,589,951

273

90

-60

57

23

31

8

9.42

Miilam Central








39

48

9

5.52

Miilam Central

SRC0164

705,526

1,589,700

285

90

-60

60

11

14

3

6.63

Miilam Central








31

35

4

0.29

Miilam Central








48

56

8

1.25

Miilam Central

SRC0170

705,635

1,589,400

273

90

-60

100

14

25

11

1.10

Miilam Central

SRC0171

705,624

1,589,395

210

90

-60

102

93

96

3

0.55

Miilam Central

SRC0191

701,897

1,593,608

282

270

-60

100

0

13

13

0.88

Boulili

SRC0198

701,570

1,594,450

245

90

-60

100

35

46

11

2.29

Boulili








52

55

3

0.73

Boulili








68

73

5

1.34

Boulili

SRC0202

701,391

1,594,702

204

90

-60

100

80

96

16

1.33

Boulili

SRC0216

703,944

1,593,400

250

90

-60

84

55

61

6

1.02

Miilam North

SRC0222

704,107

1,593,050

291

90

-60

100

12

15

3

0.98

Miilam North

SRC0227

704,188

1,592,899

256

90

-60

80

46

57

11

1.36

Miilam North

SRC0246

705,954

1,587,000

286

90

-60

100

6

9

3

1.51

Miilam South








47

50

3

1.31

Miilam South








54

58

4

0.70

Miilam South

SRC0247

705,947

1,586,996

216

90

-60

102

87

92

5

1.03

Miilam South

SRC0250

705,946

1,586,796

217

90

-60

100

87

91

4

1.06

Miilam South

SRC0252

705,838

1,586,798

218

90

-60

100

79

86

7

1.50

Miilam South

SRC0254

705,885

1,586,598

240

90

-60

100

61

66

5

2.37

Miilam South

SRC0255

706,024

1,586,295

255

90

-60

84

44

48

4

1.51

Miilam South

SRC0257

706,031

1,586,199

237

90

-60

84

60

63

3

0.65

Miilam South

SRC0258

706,013

1,586,195

228

90

-60

102

74

78

4

1.48

Miilam South

SRC0259

706,004

1,586,150

238

90

-60

84

61

64

3

0.64

Miilam South

SRC0260

705,983

1,586,149

223

90

-60

108

78

81

3

0.79

Miilam South

SRC0263

706,028

1,586,032

240

90

-60

100

54

60

6

8.07

Miilam South

SRC0264

706,011

1,586,031

213

90

-60

100

83

89

6

6.02

Miilam South

SRC0265

706,071

1,585,870

246

90

-60

108

49

52

3

0.60

Miilam South

SRC0266

706,053

1,585,871

227

90

-60

100

69

76

7

2.82

Miilam South

SRC0283

700,627

1,596,039

208

135

-60

100

87

90

3

21.9

Dynamite West

 

Notes:

Individual gold assays have a top cut of 10 g/t Au and a lower cut of 0.5 g/t Au for intercept calculations.


Maximum internal waste allowed is 3m and minimum mineralised interval is 1m




All holes are drilled from surface umising 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 industry standard QAQC protocols

 

 

 


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