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Avocet Mining PLC (AVM)

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Monday 07 February, 2011

Avocet Mining PLC

Drilling Results from Inata N

RNS Number : 7420A
Avocet Mining PLC
07 February 2011
 



 

 

 

 

 

 

 

Avocet Mining PLC ("Avocet" or "the Company"

 

POSITIVE DRILLING RESULTS FROM INATA NORTH

 

Avocet Mining PLC ("Avocet" or "the Company") announces positive results from the ongoing drilling campaign at its flagship Inata gold mine in Burkina Faso. Initial results are from the first 123 reverse circulation drill holes (28,579 metres) that have tested the northern extensions of the resource at Inata North and Sayouba (refer to Figure 1), as well as targeting ore at depth beneath mineralisation that is already included in the existing 1.84 million ounce resource at Inata (excluding Souma). The results show that the resource extends along strike and at depth, and support the Company's target of doubling reserves at Inata by the third quarter of 2011. Highlights are summarised in Table 1 and include:

 


Inata North

·    39m @ 3.01 g/t Au from 93m

(incl. 10m @ 5.41 g/t Au);

·    28m @ 3.13 g/t Au from 146m

(incl. 8m @ 4.30 g/t Au

and  8m @ 4.61 g/t Au);

·    7m @ 3.23 g/t Au from 150m; and

·    7m @ 3.22 g/t Au from 173m

(incl. 3m @ 6.98 g/t Au)

 

Sayouba

·    3m @ 18.5 g/t Au from 31m;

·    17m @ 1.60 g/t Au from 81m;

·    18m @ 1.29 g/t Au from 158m

(incl. 5m @ 2.81 g/t Au);

·    7m @ 2.83 g/t Au from 135m

(incl. 3m @ 5.86 g/t Au); and

·    12m @ 1.64 g/t Au from 152m

(incl. 5m @ 3.03 g/t Au).

 

 

Avocet is currently undertaking a 200,000 metre reverse circulation and diamond drilling programme designed to define the full scale of the Inata deposit and the mineralised systems close to Inata. The initial focus is on the Inata mine lease where the Company has completed 55,500 metres of the planned 110,000 metres. Further drilling assays are expected in the coming weeks and months.

 

The results from this programme confirm the down-dip and strike continuity of gold mineralisation at Inata North and Sayouba. The near surface intercepts in this area are broader than indicated by previous wide-spaced exploration drill holes and of similar gold grade.  This suggests an increase in the resource tonnage in the near surface zone to the north of Inata North. Drilling results from Sayouba suggest that both an expansion of the resource tonnage and an increase in gold grades is likely.

 

Avocet will release regular updates on assay results throughout the coming months and is anticipating a mineral resource update in respect of Inata in April, with a reserve update expected in the third quarter of 2011.

 

An updated company presentation, including the following financial figures: cash balance of US$51.7 million and net debt of US$26.3 million as at 31 January 2011, is being made available today at the Mining Indaba in Cape Town and can be accessed both on our website at www.avocet.co.uk and the following link: http://www.rns-pdf.londonstockexchange.com/rns/7420A_1-2011-2-4.pdf 

 

Commenting on the initial drilling results at Inata, Brett Richards, Chief Executive Officer for Avocet, stated:

 

"These positive results indicate that we are on track to achieve our target of doubling our reserves at Inata, highlighting the significant mineralisation at Inata and in the Bélahouro district.  Drilling is also progressing at our Tri-K project in Guinea and we look forward to announcing results of this drilling in the coming months".

 

 

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 east at an average depth of 150m with the deepest at 500m. Samples were submitted to SGS Laboratory in Ouagadougou and Intertek Mineral Services in Tarkwa, Ghana 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

Niklas Kloepfer          

Arne Wenger

 

+44  20 7766 7676

 

+44 20 7466 5000

+44 7872 604783

 

+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

 

 

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 12,000 ounces per month. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced being the Souma trend at Bélahouro with a Mineral Resource of 560,000 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 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.

 

 

Figure 1 - Inata Mining Permit 

 

http://www.rns-pdf.londonstockexchange.com/rns/7420A_-2011-2-4.pdf 

 

 

 

 

TABLE 1 - SUMMARY OF DRILLHOLE INTERCEPTS AT INATA NORTH AND SAYOUBA

 

Hole ID

East

North

RL

Az

Dip

EOH

(m)

From

(m)

To

(m)

Width

(m)

Grade

(g/t Au)

Including

Prospect

INRC1590

683,023

1,589,652

353

90

-60

204

187

190

3

0.77


Inata North








193

199

6

1.05


Inata North

INRC1594

683,044

1,589,752

346

90

-60

166

163

166

3

0.56


Inata North

INRC1600

683,193

1,589,800

341

90

-60

198

119

123

4

0.37


Inata North

INRC1603

683,246

1,589,851

341

90

-60

202

38

43

5

0.41


Inata North

INRC1606

683,295

1,590,052

339

90

-60

200

138

143

5

1.49


Inata North

INRC1700

683,246

1,589,103

343

90

-60

198

118

126

8

1.55

3m @ 2.28 g/t Au

Sayouba

INRC1701

683,248

1,589,051

343

90

-60

177

92

97

5

0.49


Sayouba








100

103

3

1.36


Sayouba








113

120

7

1.11


Sayouba








132

138

6

1.00


Sayouba








144

150

6

0.75


Sayouba

INRC1702

683,196

1,589,051

342

90

-60

201

155

161

6

1.51

3m @ 2.47 g/t Au

Sayouba

INRC1703

683,247

1,589,000

342

90

-60

199

97

100

3

2.86


Sayouba








131

135

4

0.43


Sayouba

INRC1704

683,261

1,588,951

341

90

-60

202

119

123

4

0.42


Sayouba








143

149

6

0.64


Sayouba








152

164

12

1.64

5m @ 3.03 g/t Au

Sayouba








179

183

4

3.38


Sayouba

INRC1706

683,249

1,588,903

340

90

-60

199

158

176

18

1.29

5m @ 2.81 g/t Au

Sayouba

INRC1707

683,073

1,588,903

341

90

-60

186

149

153

4

1.62


Sayouba

INRC1709

683,267

1,588,849

339

90

-60

169

135

142

7

2.83

3m @ 5.86 g/t Au

Sayouba

INRC1710

683,444

1,590,250

344

90

-60

198

69

74

5

1.56


Inata North

INRC1712

683,358

1,589,102

340

90

-60

176

1

4

3

4.79


Sayouba








31

34

3

18.5


Sayouba

INRC1713

683,544

1,590,650

344

90

-60

200

86

89

3

0.55


Inata North








178

181

3

1.65


Inata North

INRC1715

683,219

1,589,200

344

90

-60

192

158

164

6

1.23


Sayouba








167

174

7

2.40

5m @ 3.23 g/t Au

Sayouba

INRC1716

683,286

1,589,200

342

90

-60

176

85

89

4

1.30


Sayouba








100

107

7

1.02


Sayouba

INRC1719

683,209

1,589,250

341

90

-60

192

70

75

5

1.75


Sayouba








173

184

11

0.94


Sayouba








187

192

5

0.77


Sayouba

INRC1720

683,278

1,589,251

344

90

-60

175

81

98

17

1.60


Sayouba








105

108

3

1.11


Inata North

INRC1722

683,961

1,589,302

350

90

-60

204

75

78

3

1.51


Inata North








119

126

7

0.84


Inata North








118

125

7

0.56


Inata North

INRC1730

682,921

1,589,478

347

90

-60

204

72

75

3

0.85


Inata North








108

114

6

0.45


Inata North








127

136

9

1.12


Inata North








145

149

4

0.79


Inata North

INRC1731

683,042

1,589,475

349

90

-60

168

20

28

8

0.64


Inata North








112

116

4

0.79


Inata North








157

162

5

0.73


Inata North

INRC1732

682,973

1,589,552

348

90

-60

200

118

137

19

0.57


Inata North








141

147

6

1.71


Inata North

INRC1733

683,054

1,589,552

349

90

-60

204

32

37

5

1.27


Inata North








44

67

23

0.69


Inata North








91

96

5

1.55


Inata North

INRC1747

682,998

1,589,752

344

90

-60

312

218

222

4

1.33


Inata North








234

238

4

0.82


Inata North








281

285

4

1.17


Inata North






















































































































Hole ID

East

North

RL

Az

Dip

EOH

(m)

From

(m)

To

(m)

Width

(m)

Grade

(g/t Au)

Including

Prospect

INRC1748

683,049

1,589,801

344

90

-60

240

195

198

3

0.72


Inata North

INRC1750

683,025

1,589,852

345

90

-60

270

216

219

3

2.96


Inata North








222

225

3

0.43


Inata North

INRC1751

683,149

1,589,853

343

90

-60

246

132

135

3

2.69


Inata North








178

181

3

1.00


Inata North

INRC1752

682,990

1,589,452

348

90

-60

275

141

150

9

0.60


Inata North

INRC1752







249

253

4

1.04


Inata North

INRC1753

682,915

1,589,452

347

90

-60

345

99

108

9

0.92


Inata North








134

138

4

0.54


Inata North








164

170

6

0.71


Inata North

INRC1754

682,732

1,588,326

287

90

-60

210

173

180

7

3.22

3m @ 6.98 g/t Au

Inata North

INRC1755

682,915

1,589,425

350

90

-60

258

98

106

8

0.79


Inata North








125

135

10

1.65


Inata North








207

215

8

1.28


Inata North








218

224

6

1.55


Inata North








246

251

5

0.78


Inata North

INRC1756

682,744

1,588,301

288

90

-60

240

110

113

3

0.88


Inata North








150

157

7

3.23


Inata North








160

167

7

0.85


Inata North

INRC1757

682,777

1,588,254

288

90

-60

150

89

92

3

0.86


Inata North

INRC1758

683,027

1,589,400

349

90

-60

264

43

46

3

0.82


Inata North








93

132

39

3.01

10m @ 5.41 g/t Au
7m @ 4.42 g/t Au

Inata North








154

159

5

1.34


Inata North

INRC1759

682,973

1,589,400

348

90

-60

228

7

12

5

3.52

4m @ 4.21 g/t Au

Inata North








49

54

5

1.80


Inata North








59

62

3

1.54


Inata North








136

143

7

2.44

6m @ 2.71 g/t Au

Inata North








146

174

28

3.13

8m @ 4.30 g/t Au

8m @ 4.61 g/t Au

Inata North








184

200

16

1.37

7m @ 2.50 g/t Au

Inata North

INRC1760

682,886

1,589,400

346

90

-60

276

130

137

7

1.26


Inata North








147

155

8

0.82


Inata North








205

209

4

0.72


Inata North








220

227

7

2.49


Inata North

INRD0062

682,910

1,589,351

347

90

-60

90

85

89

4

0.67


Inata North

INRD0063

682,828

1,589,400

345

90

-60

180

78

81

3

1.01


Inata North














Note:

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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