Current Projects
Avion Resources Ltd. (“Avion”) acquired the Tabakoto and Segala gold properties, located in Mali, West Africa, from Nevsun Africa Ltd. (a subsidiary of Nevsun Resources Ltd.) (“Nevsun”) in May 2008. In consideration for an 80 percent interest in the past producing gold mine (Tabakoto) and a land package (approximately 101 square km.), Avion paid US$20 million and granted a one percent net smelter return royalty that is buyable. The Government of Mali owns the remaining 20 percent interest.
Mali is the second largest gold producing country in Africa, with two million ounces of gold produced in 2007. Gold projects account for approximately 80 percent of mining activity in Mali.
The Tabakoto and Segala properties, approximately 200 kms south of the city Kayes, are situated in a major gold mining district. Anglogold Ashanti/IAMGOLD (Sadiola Mine) and Randgold (Loulo Mine) operate in the area. Operational mining infrastructure and processing facilities constructed by Nevsun in 2005 and 2006 give Avion the ability to target near-term production for the Tabakoto gold project.
A 15,000-plus metre drill program currently underway has been designed to confirm previously estimated life-of-mine resources for the Tabakoto and Segala projects and to test other targets identified on the property. Avion has secured the services of a team of geoscientists to support the drilling, compilation and on-going verification efforts, and the ALS Chemex laboratory in Mali has indicated that Avion can expect quick assay turn-around. Management believes that there should be a steady stream of drill results once results are compiled. Results from the program are expected to provide a better understanding of the gold mineralization on the properties and provide the information required for a production restart study to be initiated later in 2008.
Avion has also undertaken a review of work previously carried out on the Tabakoto and Segala properties by Nevsun. Avion re-sampled select mineralized intercepts to verify the previous gold assays and to focus on the controls for the gold mineralization. In one example of this work Avion believes that four intercepts, located 250 metres south of the Tabakoto pit, form a coherent zone (Dabo Zone) of higher grade gold mineralization located along the margin of a larger porphyritic felsic intrusion. This zone, which has returned assay results of up to 22.3 g/t Au over 4.2 metres, has been traced for 180 metres down-dip and 35 metres along strike, is open down dip and along strike. Avion believes that results demonstrate the potential to convert the initial open-pit targets to (high-grade) underground mines.
To download a recent NI43-101 technical report on the geology and exploration potential of the Tabakoto and Segala properties, click here or visit the SEDAR website at www.sedar.com . The report also presents historic information on the properties, including past production statistics.
Avion Resources Corp. has agreed to purchase exploration assets in north and west regions of Ethiopia from Aberdeen International Inc. Avion has purchased the rights of a 100% undivided interest in exploration licenses in Ethiopia. The area covers approximately 3,582 km in the Northern Regional State of Tigray and 1,693 km in the Western regional State of Asosa.
The low-grade metamorphic volcano-sedimentary belts of the Arabian-Nubian Shield in Ethiopia are known hosts to orogenic gold and volcanogenic massive sulphide (VMS) deposits both within the country (Lega Dembi gold deposit, southern Ethiopia) and in surrounding countries (Asmara and Bisha VMS deposits, Eritrea).
Regional-scale exploration has commenced on both the northern and western properties. In the north, Avion has conducted heliborn magnetic, radiometric and local electromagnetic (EM) surveys and satellite interpretation. The EM survey has identified over 750 anomalies. Reconnaissance grids have been established over several of the airborne anomalies, with over 950 rock samples collected. Initial results indicate several samples contain anomalous gold values, which have yet to be followed-up. In addition, Avion has collected over 1200 silt samples. Additional assay results are expected in the near term. In the west, exploration has consisted of heliborn magnetic, radiometric survey, satellite interpretation, mapping and grab samples. Avion expects to define drill targets by late 2008 and commence a drill program on specific targets in 2009.