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Avocet Mining PLC (AVM)

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Thursday 24 March, 2011

Avocet Mining PLC

Positive Drilling Results From Inata

RNS Number : 5192D
Avocet Mining PLC
24 March 2011
 



 

 

Avocet Mining PLC

POSITIVE DRILLING RESULTS FROM INATA, BURKINA FASO

 

Avocet Mining PLC ("Avocet" or "the Company") announces positive results from the ongoing drilling campaign at its flagship Inata gold mine ("Inata") in northern Burkina Faso. The latest drilling results are from the Minfo deposit ("Minfo"), which is the southernmost of five open pits in the current mine plan that are distributed along a 6 kilometre segment of the 18 kilometre long mineralised structure that hosts Inata (refer to Figure 1).

 

Assays have been received for 54 reverse circulation ("RC") drill holes (5,583 metres) and 7 RC with diamond tail ("RD") drill holes (1,396 metres) from a total programme of 62 RC drill holes (6,600 metres), 11 RD holes (2,100 metres) and 5 diamond ("DD") drill holes (1,300 metres). These holes have tested mineralisation beneath and along strike from Minfo, which is part of the expanded Inata Mineral Resource of 1.84 million ounces, announced on 7 September 2010. The results received to date indicate that the resource at Minfo extends along strike and at depth. Highlights are summarised in Table 1 and include:

 

·    21 m @ 4.72 g/t Au from 5 m (incl. 14 m @ 6.25 g/t Au)

·    29 m @ 2.20 g/t Au from 89 m (incl. 7 m @ 5.65 g/t Au)

·    13 m @ 2.88 g/t Au from 80 m (incl. 6 m @ 4.16 g/t Au)

·    14 m @ 2.46 g/t Au from 50 m (incl. 2 m @ 7.06 g/t Au)

·    24 m @ 1.38 g/t Au from 13 m (incl. 5 m @ 2.03 g/t Au and 3 m @ 3.16 g/t Au)

·      8 m @ 3.23 g/t Au from 48 m (incl. 4 m @ 5.91 g/t Au)

·      6 m @ 4.13 g/t Au from 90 m (incl. 3 m @ 7.44 g/t Au)

 

Mineralisation at Minfo is associated with sheared quartz veins that strike east-west for 700 metres and dip steeply to the south. The identified mineralised structure correlates with a conductivity anomaly mapped by last year's heliborne geophysical (VTEM) survey that continues to the east for 4.5 kilometres through several known prospects and artisanal workings, including the Ouzeni and Filio prospects.

 

Drilling has been conducted on 50 metre spaced, north-south oriented lines over the main Minfo deposit. The recognition of the larger structure and nearby prospects in the results of the VTEM survey encouraged the Company to drill two step-out fences at 700 metres and 900 metres to the east of Minfo. One hole on each section (INRC1643 and INRC1648) returned broad, high-grade mineralised intervals that are wider and higher grade than at Minfo itself. This new discovery suggests potential for an additional open pit or an extension to the planned Minfo open pit.

 

Following these encouraging results the Company is currently conducting follow up infill and deepening holes drilling to the east of Minfo to connect Minfo with the newly discovered zone. The results of these remaining 17 drill holes in the current programme are awaited and will be reported separately.

 

Avocet is currently undertaking a 200,000 metre RC and DD programme designed to define the full extents of the Inata deposit and test the potential of the known mineralised systems close to Inata. The initial focus is on the Inata mining lease where the Company has completed 83,445 metres of the planned 110,000 metres. Further drilling results will be reported on a regular basis as they become available.

 

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

 

"Inata continues to return positive drilling results that encourage us to believe that it is a much larger ore body than originally delineated where the extension along strike and down dip remain open.  Avocet looks forward to reporting further results from the ongoing drilling programmes at Inata, Bélahouro and in Guinea, as we believe these will underpin significant resource and reserve growth for the Company over the coming years."

 

The information in this announcement that relates to Exploration Results is based on information reviewed and audited by Mr Peter Flindell (MAusIMM), Executive Vice President of Exploration for Avocet. Mr Flindell has sufficient experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101) and as a Competent Person as defined by the Australian JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Flindell consents to the inclusion of the technical information in this announcement in the form and context in which it appears.

All holes were angled at -60 degrees towards the north at an average depth of 100 metres with the deepest at 192metres. Samples were submitted to SGS Laboratory in Ouagadougou, Burkina Faso for Fire Assay using a 50 gram charge.

 

 

 

 

 

For further information please contact:

 




Avocet Mining PLC

Buchanan Communications  

Ambrian Partners Limited

J.P. Morgan Cazenove

Arctic Securities


Financial PR Consultants         

NOMAD and Joint Broker

Lead Broker

Financial Adviser

Brett Richards, CEO

Mike Norris, FD

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

Bobby Morse

Katharine Sutton

Samantha Harrison

Jen Boorer

 

Michael Wentworth-Stanley

Neil J Passmore        

Arne Wenger

Petter Bakken

 

+44  20 7766 7676

 

+44 20 7466 5000

 

 

+44 20 7634 4700

 

+44 20 7588 2828

 

+47 2101 3100

www.avocet.co.uk

www.buchanan.uk.com

www.ambrian.com

www.jpmorgancazenove.com

www.arcticsec.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).

 

In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P, a private company, for US$200 million. The transaction with J&Partners will leave Avocet as a West African gold producer with a clear strategy for growth in that region. Further details can be found in the press release dated 24 December 2010 and in the Company's preliminary results statement for 2010, dated 22 February 2011.

 

Background to operations

 

The Inata deposit presently comprises a Mineral Resource of 1.84 million ounces and a Mineral Reserve of 1.08 million ounces. Inata poured its first gold in December 2009 and has now reached a production rate in excess of 13,500 ounces per month. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced being the Souma trend at Bélahouro, some 20 kilometres from Inata, with a Mineral Resource of 561,100 ounces), Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a Mineral 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.  The mine 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.



Figure 1 -MINFO Drilling Summary

 

 

http://www.rns-pdf.londonstockexchange.com/rns/5192D_-2011-3-23.pdf

 

 

 TABLE 1 - SUMMARY OF DRILLHOLE INTERCEPTS AT MINFO, INATA, BURKINA FASO

 

Hole ID

East

North

RL

Az

Dip

EOH (m)

From (m)

To

(m)

Width (m)

Grade (g/t Au)

Including

INRC1598

681,509

1,583,851

331

90

-60

75

30

31

1

0.54


INRC1601

682,061

1,583,110

325

0

-60

165

144

153

9

1.56

1m @ 2.90 g/t Au








156

157

1

5.52









164

165

1

0.51


INRC1602

682,103

1,583,139

326

0

-60

162

68

72

4

1.61

1m @ 3.89 g/t Au








85

86

1

3.54









89

93

4

2.21

1m @ 6.63 g/t Au








96

99

3

0.69









102

107

5

0.60









110

114

4

0.90









119

120

1

0.52









123

124

1

0.50


INRC1604

682,156

1,583,116

325

0

-60

165

107

111

4

1.52

1m @ 4.18 g/t Au








116

124

8

1.47

1m @ 2.41 g/t Au








138

153

15

1.12

2m @ 3.43 g/t Au








160

161

1

1.01


INRC1605

682,157

1,583,066

325

0

-60

137

90

96

6

4.13

3m @ 7.44 g/t Au

INRC1607

682,203

1,583,183

327

0

-60

158

2

5

3

0.82









32

33

1

1.01









38

39

1

0.62


INRC1608

682,203

1,583,115

325

0

-60

191

99

101

2

1.06









108

111

3

0.75


INRC1610

682,203

1,583,068

325

0

-60

95

91

92

1

0.52


INRC1616

682,450

1,583,130

325

0

-60

114

23

24

1

0.66


INRC1621

681,510

1,583,799

331

0

-60

75

19

20

1

0.68


INRC1629

681,510

1,583,402

329

0

-60

75

8

9

1

2.82


INRC1630

681,510

1,583,348

329

0

-60

78

63

64

1

0.68


INRC1632

681,510

1,583,250

327

0

-60

75

5

6

1

0.51


INRC1642

683,005

1,583,000

322

0

-60

75

29

30

1

1.12


INRC1643

683,005

1,582,951

321

0

-60

75

5

26

21

4.72

14m @ 6.25 g/t Au








31

33

2

5.32









40

42

2

1.38









48

56

8

3.23

4m @ 5.91 g/t Au








60

62

2

1.23









69

74

5

1.49

1m @ 3.00 g/t Au

INRC1647

683,206

1,582,949

319

0

-60

75

1

2

1

0.50









15

16

1

1.21









48

49

1

1.09









59

60

1

0.60


INRC1648

683,206

1,582,900

318

0

-60

75

36

46

10

2.40

4m @ 4.57 g/t Au








50

64

14

2.46

2m @ 7.06 g/t Au

INRC1650

683,206

1,582,800

318

0

-60

75

60

61

1

7.93


INRC1653

682,404

1,583,183

325

0

-60

138

26

28

2

0.61


INRC1654

682,354

1,583,181

326

0

-60

138

0

4

4

1.74

1m @ 4.12 g/t Au








13

14

1

0.60









43

44

1

1.59









47

48

1

0.86









64

65

1

1.95


INRC1655

682,311

1,583,183

326

0

-60

141

7

8

1

0.57









27

28

1

0.57









34

35

1

0.76









40

41

1

0.52









52

54

2

1.30


INRC1656

682,311

1,583,157

326

0

-60

150

32

36

4

1.72









60

61

1

0.74









67

68

1

0.88


INRC1657

682,203

1,583,232

327

0

-60

112

17

20

3

0.86


INRC1659

682,154

1,583,182

327

0

-60

128

0

1

1

0.86









11

21

10

1.06

1m @ 2.88 g/t Au








24

26

2

0.59









32

43

11

0.85









51

52

1

0.50









55

67

12

1.11

1m @ 2.60 g/t Au & 1m @ 4.75 g/t Au








 

 





Hole ID

East

North

RL

Az

Dip

EOH (m)

From (m)

To

(m)

Width (m)

Grade (g/t Au)

Including

INRC1660

682,104

1,583,166

327

0

-60

116

40

46

6

1.93

1m @ 5.65 g/t Au








59

62

3

2.85









65

77

12

0.78









80

83

3

0.79









92

93

1

0.65









100

101

1

0.56


INRC1661

682,353

1,584,453

320

90

-60

168

134

135

1

1.41









142

146

4

0.57


INRC1723

681,953

1,583,168

326

0

-60

141

95

104

9

2.42

1m @ 3.31 g/t Au &2m @ 6.78 g/t Au








107

117

10

1.43

4m @ 2.81 g/t Au








130

135

5

1.17

1m @ 2.89 g/t Au

INRC1724

681,903

1,583,223

328

0

-60

158

89

118

29

2.20

2m @ 2.38 g/t Au & 7m @ 5.65 g/t Au








157

158

1

0.56


INRC1725

681,953

1,583,220

327

0

-60

128

70

71

1

0.66









83

93

10

1.18

1m @ 2.01 g/t Au & 1m @ 2.54 g/t Au








109

113

4

2.14

1m @ 5.86 g/t Au








118

125

7

0.56


INRC1727

682,005

1,583,187

326

0

-60

120

51

52

1

1.20









60

73

13

0.98

2m @ 2.56 g/t Au








79

90

11

1.90

4m @ 3.53 g/t Au








96

99

3

0.76









104

107

3

0.87


INRC1729

682,061

1,583,156

326

0

-60

192

72

83

11

1.63

2m @ 4.66 g/t Au & 1m @ 2.22 g/t Au








87

104

17

0.82

1m @ 2.61 g/t Au








118

119

1

1.55


INRC1800

682,002

1,583,250

331

0

-60

120

13

37

24

1.38

5m @ 2.03 g/t Au & 3m @ 3.16 g/t Au

INRC1802

681,953

1,583,292

331

0

-60

130

4

5

1

0.82









13

15

2

0.55









18

19

1

0.56









90

92

2

1.96

1m @ 2.42 g/t Au








95

96

1

0.56


INRC1803

681,903

1,583,234

328

0

-60

111

26

27

1

0.60









80

93

13

2.88

6m @ 4.16 g/t Au

INRD1721

681,902

1,583,195

327

0

-60

146.95

81

82

1

1.18









116

124

8

1.17

1m @ 3.46 g/t Au

 

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. INRD001 is a diamond tail drilled by conventional triple tube wireline diamond drilling by Boart Longyear.

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

 

 


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