Avala Resources Completes the Initial Korkan Resource Definition Drilling Program, Serbia
07 Agosto 2012 - 7:01AM
Marketwired Canada
Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
present an update on progress and drill results from the Korkan project area,
part of the Timok Gold Project, a new gold discovery in an emerging
sediment-hosted gold belt located in Eastern Serbia.
1. HIGHLIGHTS
-- The recently completed Korkan resource definition program was focused on
establishing continuity of mineralization. The drilling program has used
a nominal 80 meter by 80 meter grid spacing, together with a subset of
the target area at a nominal 40 meter by 40 meter grid spacing. The
drill holes are located within the Korkan mineralized 'footprint' that
was outlined by Avala during the earlier, 160 meter by 160 meter diamond
drilling program, which started in November, 2010.
-- Recently completed resource definition reverse circulation (RC) and
diamond (DD) drilling at Korkan has returned the following strong to
moderate gold intercepts (0.4g/t Au cut-off grade):
----------------------------------------------------------------------------
Hole ID From (m) To (m) Interval (m) Au (g/t) Gram-meters
----------------------------------------------------------------------------
KORC080(i) 2 35 33 1.49 49
KORC085 18 52 34 1.17 40
KORC090 126 210 84 2.08 175
KORC097 3 28 25 0.91 23
KORC097 36 58 22 1.32 29
KORC097 65 70 5 2.06 10
KORC099 52 68 16 2.85 46
KORC099 76 116 40 1.28 51
KORC099 146 161 15 1.10 17
KORC100 8 66 58 3.41 198
KORC102 52 116 64 1.24 79
KORC104 3 44 41 0.84 34
KORC104 79 86 7 2.23 16
KORC109(i) 41 118 77 1.27 98
KORC120(i) 3 13 10 1.70 17
KORC120(i) 20 80 60 1.76 106
KORC123(i) 35 65 30 1.11 33
KORC123(i) 72 94 22 1.07 24
KORC126(i) 43 105 62 1.46 91
KORC131(i) 5 36 31 1.10 34
KORC140(i) 63 126 63 1.06 67
KORC140(i) 219 274 55 1.04 57
KODD114 148 166 18 2.6 47
KODD140(i) 29 48 19 3.93 75
KODD144 296 305 9 6.83 61
KODD144 372 387 15 1.81 27
KODD145(i) 12.8 49 36.2 0.97 35
KODT075 179 240 61 4.16 254
----------------------------------------------------------------------------
Note: Intersections calculated using 5 meter minimum thickness, 5 meter
maximum included waste.
Note: The listing does not include 'twin' diamond drill hole intersections
of drilled RC holes.
The prefix 'KODTxxx' represents a diamond tail of the corresponding RC drill
hole number for drill hole completion.
((i)) Denotes a nominal 40 meter by 40 meter infill drill hole.
-- The Timok Gold Project comprises several targets including Bigar Hill,
Korkan and Kraku Pestar. Avala controls 100% of this newly identified
sediment-hosted gold belt which totals approximately 250 square
kilometres (Figure 1).
-- The Bigar Hill resource estimate was the first of three scheduled
resource estimates, with Korkan and Kraku Pestar to follow. The initial
Korkan resource definition drilling program was recently completed and
the database has been closed off, with the data forwarded to AMC
Consultants Limited (UK) ("AMC"). The Kraku Pestar drilling database is
due to follow as soon as selected 40 meter by 40 meter drilling is
completed.
-- The Company reported an initial resource estimate for Bigar Hill on July
6, 2012. The Bigar Hill mineral resource prepared by AMC has been
estimated at 38,000,000 tonnes grading an average of 1.3 g/t gold in the
inferred resource category for 1,500,000 ounces of gold, using a 0.4 g/t
gold cut-off.
-- Infill drilling at 40 meter by 40 meter spacing has re-started at Bigar
Hill.
-- Exploration diamond drilling continues to test new targets within the
Project area.
-- Avala currently has five diamond drill rigs and two RC drill rigs
operating on the Timok Gold Project.
2. DRILLING AT KORKAN
Resource Definition Drilling:
-- Avala commenced RC drilling at Korkan on the 9th January, 2012. Drilling
was completed in July, 2012 for a total of 77,115.1 meters (47,634.1
meters of diamond drilling and 29,481 meters of reverse circulation
drilling). 'Twin' diamond drilling of reverse circulation drill holes
represented approximately 10% of total RC drilling.
-- The Korkan project, covering an area of approximately 0.5 square
kilometers, has been drilled on a nominal 80 meter by 80 meter grid
spacing. In addition, a portion of the target area has been drilled on a
nominal 40 meter by 40 meter grid spacing to provide geostatistical
support for resource estimation purposes.
-- Refer to Table 1 for a summary of all intersections at a 0.4g/t Au cut-
off grade for all Korkan reverse circulation and diamond drill holes.
Figure 2 shows a gram-meter total metal contour plot (intervals greater
than 0.4g/t Au x thickness), of all Korkan drilling to date,
superimposed on topographic contours. Figure 3 shows representative
cross-sections through Korkan.
-- The routine reverse circulation-diamond 'twin' drilling program
continues to confirm that the majority of mineralized intercepts and
hence the deposit style, are dominated by layer-parallel,
lithology/fault-controlled gold mineralization.
-- The reverse circulation-diamond 'twin' drill holes suggest that there
can be close spaced variation in gold grade, as is typical for gold
deposits.
Korkan East:
-- Additional multi-element assays have now been received for diamond drill
holes within the Korkan East area within the Korkan project. Results
have confirmed that the higher gold grade intersections in Korkan East
are associated with elevated levels of lead, zinc, silver and arsenic,
as supported by the geological logging of galena, sphalerite and
arsenopyrite in the core. Selected intersections are tabulated below
(0.4g/t Au cut-off grade):
----------------------------------------------------------------------------
Interval
Hole ID From (m) To (m) (m) Au (g/t) Pb (%) Zn (%) Ag (g/t) As (%)
KODD037(i) 96 103 7 1.17 0.26 0.34 29 0.21
KODD037(i) 121 130 9 0.68 0.12 0.17 15.7 0.03
KODD058(i) 210 222 12 5.43 0.41 0.43 95.7 0.27
KODD061(i) 189.2 196 6.8 0.87 0.05 0.48 4.4 0.03
KODD061(i) 207 219 12 0.41 0.01 0.01 1.7 0.01
KODD061(i) 276 311 35 0.62 0.10 0.10 6 0.15
KODD084(i) 258 283 25 0.42 0.04 0.07 2 0.01
KODD084(i) 303 311 8 0.67 0.01 0.01 1.2 0.01
KODD084(i) 399 414 15 1.46 0.22 0.10 4.4 0.40
KODD084(i) 421 447 26 10.01 4.12 3.64 92.2 0.85
KODD100 265 271 6 0.79 0.09 0.09 6 0.33
KODD100 279 286 7 0.67 - 0.01 1.9 0.08
KODD100 297 346 49 4.23 2.41 2.55 137.8 3.38
----------------------------------------------------------------------------
Note: Intersections calculated using 5 meter minimum thickness, 5 meter
maximum included waste.
((i)) Previously released drill hole.
-- The gold and base metal mineralized rocks at Korkan East show
characteristic features of carbonate replacement deposits; the link with
the nearby lower temperature sediment-hosted gold is unclear at this
time.
-- Multiple gold mineralized intercepts per hole are a common feature of
the gold mineralization outlined to date in the Bigar Hill and Korkan
target areas.
3. CANADIAN NATIONAL INSTRUMENT 43-101 COMPLIANT RESOURCE ESTIMATION
-- Following site visits by international consultants AMC Consultants (UK),
the Korkan exploration database has been delivered to AMC in order to
undertake independent resource estimation.
-- It is planned to complete the initial Canadian National Instrument 43-
101 compliant resource estimate on Korkan by the end of Q3, 2012.
-- The current Korkan database is based on 29,481 meters of RC drilling and
47,634.1 meters of diamond drilling for a total of 77,115.1 meters in
315 drill holes. The database includes over 190,000 analyses (gold,
silver and sulfur) including 104,559 gold assays, of which approximately
26% are internationally accredited standards, blanks and routine QAQC
duplicate and replicate check assays. All drill holes have been down-
hole surveyed at regular intervals; with drill collars surveyed using
DGPS or total station surveying methods. The topographic surface is
based on detailed DGPS and total station surveying methods, with an
average survey station spacing of approximately 15 meters by 15 meters.
Over 6,385 bulk density measurements have been collected, using standard
wax-sealed immersion methods. Over 18 diamond/RC drill pairs have been
completed to date.
-- All drill hole assaying and bulk density measurements have been carried
out independently by SGS.
4. GEOLOGY, MINERALIZATION STYLE AND DISCUSSION
-- Sediment-hosted gold, located along the western margin of the Timok
Magmatic Complex, represents a previously unrecognized style of gold
mineralization within the Timok region.
-- Within the Timok Gold Project, stratabound, fault-controlled breccia
together with minor karst-infill breccia represent the styles of
sediment-hosted gold mineralization recognized to date.
-- Gold mineralization appears to be associated with fine-grained pyrite
(sulfidation reaction) and a number of alteration styles including
kaolinitization, decarbonatization of calcareous sedimentary rock
adjacent to the gold mineralization and occasionally, silicification.
-- Gold mineralization is predominantly hosted within a favourable
sedimentary package - the 'target stratigraphy' - which is underlain by
Jurassic and Lower Cretaceous limestones and consists predominantly of
calcareous sandstones and conglomerates. Mineralization is also hosted
in the underlying carbonate sequence, dominantly within tectonized
structures.
-- The upper portion of the target stratigraphy consists of 'red'
sandstones and volcanic-lithic clastic sediments, which are in turn,
overlain by calcareous marls, andesitic volcanic and volcaniclastic
rocks, representing the youngest portion of the target stratigraphy.
-- Figure 1 shows the location of the Korkan-Bigar trend and the Kraku
Pestar target area within the greater sediment-hosted gold belt, as
defined in this image by mapped 'target stratigraphy'. Figure 1 also
shows anomalous gold soil geochemistry, on which the total metal contour
plots, based on drill intersections, are superimposed. The significant
potential of the belt can be clearly seen when the surface area of the
mineralized 'footprints' of the currently drilled target areas within
the Korkan-Bigar trend are compared to the overall extent of the
presently defined gold soil anomalies.
-- A major sediment-hosted gold belt bordering the western boundary of the
Timok Magmatic Complex, identified by soil and trench samples, extends
over 30 kilometers along strike and is up to 8 kilometers wide.
-- Soil sampling has been completed to the south of the currently defined
30 kilometer strike in order to attempt to determine the overall extent
of the belt which, based on the extent of mapped 'target stratigraphy',
has the potential to be approximately 70 kilometers in length.
-- The geology, geochemistry and available drill intersections suggest a
strong similarity to the style of gold mineralization typified by the
North Carlin Trend, Nevada, USA.
-- The recognition that the majority of the significant trench and diamond
drill intercepts returned to date occur within the same flat lying or
shallow dipping sedimentary package has significant implications for the
gold potential of the Korkan-Bigar trend and the entire sediment-hosted
gold belt.
-- Avala intends to systematically explore all currently defined priority
target areas on the belt.
-- Please see the following link to view all Korkan-Bigar and Kraku Pestar
drill holes located spatially in three dimensions:
http://www.corebox.net/properties/timok-gold-project
5. SAMPLING AND ANALYSIS
The majority of soil samples have been assayed at the ALS Chemex laboratory,
Perth, Australia. More recent programs have been assayed at the SGS managed
laboratory at Chelopech in Bulgaria using a combination of ICP-OES and ICP-MS;
whereas, gold has been assayed by low level detection fire assay method with an
AAS finish. The Company has established a laboratory facility at Bor, Eastern
Serbia which is independently managed by SGS. Trench samples were prepared at
the laboratory facility at Bor and the samples have been assayed at the SGS
managed laboratory at Chelopech in Bulgaria or the laboratory facility at Bor.
Diamond drill core has been prepared at the laboratory facility at Bor and
assayed at either the SGS managed laboratory at Chelopech in Bulgaria or the
assay laboratory at Bor. A one metre sampling interval has been used where
possible for the Sediment-Hosted Gold project diamond drilling program. Half
core is routinely submitted to the laboratory for analysis. Reverse circulation
drill samples have been prepared at the laboratory facility at Bor and assayed
at the laboratory at Bor. A one metre sampling interval has been used for the
Sediment-Hosted Gold project reverse circulation drilling program. Following
Avala standard quality assurance procedures, a full suite of field and
laboratory duplicates and replicates along with internationally accredited
standards and blanks, have been submitted with each batch of samples.
Trench sampling was carried out as channels in the wall just above the trench
floor on 2m intervals. Except where extensive soil cover is encountered,
trenches were sampled in their entirety. The samples were routinely weighed
prior to final bagging to maintain an even sample size and to avoid sampling
bias in harder rock types. An average channel sample weight was maintained at
3kg/m, which produces a consistent sample weight approximating half HQ core
samples. Field duplicate samples were taken every 20 samples and known standards
were inserted into the sample stream after every 20th sample. A geological and
structural log was completed as for diamond drilling. All data collected in the
field was routinely entered into geology and structural geology spread sheets
using Field Marshal software for subsequent entry to an acQuire database and
validation.
Dr Julian F. H. Barnes, a qualified person under National Instrument 43-101, a
Director and the Company's Special Consultant, has supervised the preparation of
the technical data in this press release.
Previously released data refers to data included in the "Potoj Cuka Gold
Project, Serbia National Instrument 43-101 Technical Report" by Paul Mazzoni
dated March 10, 2010 (the "Technical Report"), filed on SEDAR at www.sedar.com.
Further information in respect of results, investigations, interpretations,
quality assurance and quality control measures, along with geology, mineralogy,
sampling, and analytical procedures is included in the Technical Report.
About Avala Resources Ltd.: Avala Resources is a mineral exploration company
focused on the exploration and development of the Timok Gold Project in Eastern
Serbia. The Timok Gold Project comprises several targets, including Bigar Hill,
Korkan, and Kraku Pestar. Avala controls 100% of this newly identified
sediment-hosted gold belt which totals approximately 250 square kilometers. The
common shares of Avala trade on the TSX Venture Exchange under the symbol AVZ.
Avala is well-capitalized, with approximately $16 million in its treasury at
June 30, 2012, which it plans to use for the exploration and development of its
mineral projects in Serbia. Avala's issued and outstanding share capital totals
214,492,223 common shares, of which approximately 51.4% is held by Dundee
Precious Metals Inc. (TSX:DPM).
Cautionary Statement
This press release contains 'forward-looking information' within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
information can be identified by the use of forward-looking terminology such as
"anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast",
"project", "budget", "schedule", "may", "will", "could", "might", "should" or
variations of such words or similar words or expressions. Forward-looking
information is based on reasonable assumptions that have been made by the
Company as at the date of the information and is subject to known and unknown
risks, uncertainties, and other factors that may cause actual results or events
to differ materially from those anticipated in the forward-looking information.
Forward looking information in this news release includes information with
respect to the Bigar Hill mineral resource estimate and its potential expansion,
the Company's plans to complete resource estimates on the Korkan and Kraku
Pestar project areas, the timing and location of future work programs, the
results and interpretation of studies and exploration activities, the nature of
the mineralization of the project, the potential size of the sediment-hosted
gold system, the possibility that the Timok Gold Project will prove to be
economic, and the suggested similarity to the style of gold mineralization of
the North Carlin Trend project.
Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be factors that cause results to be other
than as anticipated, estimated or intended. There can be no assurance that the
forward looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information contained herein, except in accordance with
applicable securities laws.
Figures 1, 2 and 3 and Table 1 are available at the following address:
http://media3.marketwire.com/docs/avala0807.pdf
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