Avala Resources Intersects 83.5 Meters of 1.28 g/t Gold From a Depth of 2.5 Meters at Kraku Pestar in Serbia
October 07 2010 - 8:30AM
Marketwired Canada
Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
present an update of the exciting sediment hosted gold district within the
Cretaceous magmatic arc bordering the Timok Magmatic Complex ("TMC") in Eastern
Serbia.
1. HIGHLIGHTS
-- Major sediment hosted gold district identified in Eastern Serbia.
-- The district, as currently defined, is at least 20 km in length and up
to 10 km wide and was identified by initial bulk leachable gold ("BLEG")
and 80 mesh stream sediment sampling which returned an anomalous Au-As-
Sb-Hg-Tl signature.
-- Follow-up soil sampling has identified 5 discrete 3-5 km long, north-
west trending gold-in-soil anomalies which have returned up to 5g/t Au
in soils.
-- Wide spaced trench sampling of the soil anomalies returned multiple,
wide, high grade gold intercepts, including (0.4g/t cut-off grade):
-- Korkan
-- 59m @ 2.50g/t
-- 58m @ 2.61g/t
-- Bigar
-- 36m @ 3.68g/t
-- 36m @ 1.07g/t
-- Kraku Pestar
-- 38m @ 2.58g/t
-- 28m @ 2.56g/t
-- Umka
-- 22m @ 1.08g/t
-- 24m @ 0.62g/t
-- Initial diamond drilling on the first targets tested returns multiple,
wide, near surface, medium grade gold intercepts including (0.4g/t cut-
off grade):
-- Kraku Pestar
-- PEDD001:
-- 83.5m @ 1.28g/t (from 2.5m)
-- Including 19m @ 3.07g/t (from 21m)
-- PEDD002:
-- 15m @ 0.57g/t Au (from 57m)
-- 25m @ 0.52g/t Au (from 91m)
-- 11m @ 0.96g/t Au (from 127m)
-- 49m @ 1.23g/t Au (from 144m)
-- Including 26m @ 1.83g/t (from 154m)
-- PEDD004:
-- 35m @ 2.08g/t Au (from 2m)
-- Including 9m @ 6.56g/t (from 13m)
-- A 'Carlin-style' signature for the mineralization has been interpreted
on the basis of:
-- The character of the sedimentary host.
-- The metal association (Au, As, Hg, Tl, S and Sb greater than base
metals).
-- The high Au:Ag ratio.
-- The fine grained nature of the gold mineralization and association
with pyrite.
-- The number of alteration styles including jasperoid and
decarbonation of calcareous sedimentary rocks adjacent to the gold
mineralization; including interbedded strongly faulted tuffaceous
rocks with high pyrite content.
-- Late stage stibnite, realgar and orpiment mineralization.
-- Multiple targets remain to be tested and additional soil sampling has
recently outlined a new zone, over 4.5 km in length, Strnjak, along
strike from Umka.
-- Avala controls 100% of the newly discovered sediment hosted gold
district which totals approximately 250 sq km. Gold deposits in the
Republic of Serbia are subject to a 3% NSR.
-- Avala intends to systematically drill test all currently defined
priority target areas. See Figures 1-6 at the end of this release for
additional detail.
2. GEOLOGY AND MINERALIZATION STYLE
Sediment hosted gold mineralization, located along the western margin of the
Timok Magmatic Complex, represents a previously unrecognized style of gold
mineralization within the Timok region.
Geological mapping of the sediment hosted gold district suggests mineralization
is associated with a complex geological and structural sequence of
limestone/marble, calc-silicate hornfels, biotite-magnetite hornfels, monzonite
(pre-ore Potoj Cuka stock), diorite dykes, andesitic volcanic and volcaniclastic
rocks, schists and tuffaceous sedimentary rocks.
The district is extensively faulted and intruded by numerous diorite and
monzonite complexes with associated thermally metamorphosed aureoles, indicating
the potential for sufficient permeability and rheologic contrast for fluid
movement and hydrothermal deposition.
At Kraku Pestar receptive calcareous rocks together with pre-mineral faults have
been identified to date. Elevated gold grades are associated with decarbonated
tuffaceous sediments which are interbedded with thermally metamorphosed marl
(calc-silicate hornfels) and in the footwall monzonite where it is localized
around brittle faults that cut the monzonite. The clastic rich sequence is
depositionally overlain by a clean limestone and at higher structural levels by
a thrust sheet of Jurassic limestone, each of which would have formed a
permeability barrier to the vertical flow of hydrothermal fluids.
At Bigar, anomalous gold appears to be concentrated along the fault contact
between Palaeozoic schist and Jurassic massive limestone with additional
anomalous gold found in clastic horizons interbedded within the massive
limestone.
At Umka, massive limestone dominates the surface outcrop, but what lies in the
subsurface is currently unknown. The stratigraphy and also the abundant diorite
porphyry occurrences suggest the possibility that the anomalous gold-in-soil
geochemistry may be associated with contact-type skarn or replacement
mineralization styles; however this possibility does not adequately explain the
presence of anomalous As-Sb-Hg-Tl soil geochemistry generally associated with
'Carlin-type' deposits and that are not generally associated with higher
temperature skarn or replacement systems.
Sedimentary rock hosted gold deposits, similar to the Carlin-type deposits in
the Great Basin (USA) depend upon having permeability such that fluids deposit
gold in fault rocks (Deep Star) or at rheologic boundaries such as at contacts
between hornfels and unmetamorphosed country rocks (Betze, Goldstrike), or flow
passively along reactive stratigraphy (West Leeville and Carlin) to form a
stratabound deposit. In the structurally controlled deposits the gold will be
focussed and the footprint generally small, whereas in the stratigraphically
controlled deposits, the footprint may be large but the gold distribution may be
somewhat erratic. Similar features, in particular potential stratigraphic
controls, have been interpreted within the Kraku Pestar target area within the
newly defined sediment hosted gold district.
Figure 1 (http://media3.marketwire.com/docs/Figure1a.pdf) shows the regional
geology of the TMC and the sediment hosted gold district together with the Avala
land position.
3. SOIL SAMPLING
-- Extensive soil sampling programs have been used to follow-up initial
BLEG and 80 mesh (0.18mm) stream sediment sampling.
-- An initial routine soil sampling spacing of 400m x 50m has been used
with follow-up infill sampling at 200m x 50m together with additional
100m x 50m spacing over selected areas.
-- Numerous, extensive, multi-element soil anomalies have been outlined
with individual gold values up to 5g/t.
-- Detailed geological mapping has shown that the multi-element soil
anomalies coincide with 'erosional windows' through the overthrusted,
massive Jurassic limestone sequence and their associated 'dispersion
haloes'.
-- The soil anomalies exhibit a typical Carlin-style geochemical response
with enhanced levels of Au-As-Sb-Hg-Tl.
-- Figure 2 (http://media3.marketwire.com/docs/Figure2a.pdf) shows the gold
geochemistry response and target area locations within the sediment
hosted gold district.
-- Key soil anomalies defined to date, include:
-- Korkan: 4.5 km x 1.0 km
-- Bigar: 3.7 km x 1.5 km
-- Kraku Pestar: 3.0 km x 1.0 km
-- Strnjak: 4.5 km x 1.0 km
-- Umka: 4.8 km x 1.0 km
4. TRENCHING
-- As previously reported, over 22,000m of trench sampling has been carried
out over the majority of the major soil anomalies (excluding Strnjak),
initially using a nominal 800m spacing along strike between trenches.
Given the wide spacing of the initial trenching program a very large
number of significant trench intercepts were returned from all the soil
anomalies tested.
-- Table 1 (http://media3.marketwire.com/docs/Table1a.pdf) details trench
intercepts at a range of cut-off grades for those anomalies which have
been tested to date.
-- Figure 3 (http://media3.marketwire.com/docs/Figure3a.pdf) displays the
location of the trench sampling to date and shows the widespread
distribution of gold mineralization.
-- Figure 4 (http://media3.marketwire.com/docs/Figure4a.pdf) shows the
Kraku Pestar area in detail with the location of trench sampling to
date.
-- Highlights from each area include the following trench intercepts (based
on a 0.4g/t Au cut-off grade and intercepts in italics representing
previously released data(i)):
-- Korkan
-- JASTR009: 59m @ 2.50g/t
-- JASTR009: 58m @ 2.61g/t
-- Bigar
-- BITR001: 8m @ 2.32g/t
-- BITR001: 24m @ 1.02g/t
-- BITR002 : 12m @ 1.09g/t
-- BITR002: 12m @ 2.79g/t
-- BITR002: 36m @ 1.07g/t
-- BITR004: 8m @ 1.26g/t
-- BITR021: 36m @ 3.68g/t
-- BITR026: 6m @ 2.37g/t
-- Kraku Pestar
-- PETR002: 18m @ 1.81g/t
-- PETR002: 38m @ 2.58g/t
-- PETR033: 26m @ 1.80g/t
-- PETR034: 10m @ 2.01g/t
-- PETR035: 16m @ 1.01g/t
-- PETR035: 28m @ 2.56g/t
-- Umka
-- UMTR011: 10m @ 1.49g/t
-- PCTTR010: 22m @ 1.08g/t
5. DRILLING
-- Two prospect areas were selected for initial drill testing: Kraku Pestar
and Bigar.
-- Figure 5 (http://media3.marketwire.com/docs/Figure5a.pdf) shows the
Kraku Pestar area and the location of diamond drill holes collared to
date. A number of drill holes were unsuccessful in reaching the target
zones and are currently being re-drilled.
-- Figure 6 (http://media3.marketwire.com/docs/Figure6a.pdf) displays a
cross section through the Kraku Pestar target with significant
intercepts returned to date. Strong gold mineralization has been
intercepted in decarbonated sediments and also within the footwall
monzonite intrusion. Significant intercepts from the Kraku Pestar
drilling are detailed in Table 2
(http://media3.marketwire.com/docs/Table2a.pdf) at a range of gold cut-
off grades and include the following (0.4g/t Au cut-off grade and
intercepts in italics representing previously released data(i)):
-- PEDD001:
-- 83.5m @ 1.28g/t (from 2.5m)
-- Including 19m @ 3.07g/t (from 21m)
-- PEDD002:
-- 15m @ 0.57g/t (from 57m)
-- 25m @ 0.52g/t (from 91m)
-- 11m @ 0.96g/t (from 127m)
-- 49m @ 1.23g/t (from 144m)
-- Including 26m @ 1.83g/t (from 154m)
-- PEDD003:
-- 9m @ 1.90g/t (from 32m)
-- 14m @ 0.70g/t (from 88m)
-- PEDD004:
-- 35m @ 2.08g/t (from 2m)
-- Including 9m @ 6.56g/t (from 13m)
-- PEDD008
-- 5m @ 0.66g/t (from 0m)
-- 11.6m @ 1.73g/t (from 21.8m)
-- Including 7.1m @ 2.64g/t (from 22.9m)
-- 14m @ 1.44g/t (from 88m)
-- PEDD010:
-- 8m @ 0.49g/t (from 19m)
-- 66m @ 1.05g/t (from 51m)
-- Including 5m @ 2.03g/t (from 53m)
-- Including 20.2m @ 1.82g/t (from 62m)
-- Elevated gold contents are associated with either (a) black, pyritic
fault rock (cataclasite) derived from decarbonated pyroxene-hornblende-
bearing tuffaceous sedimentary rock interbedded within the Cretaceous
host sedimentary sequence or (b) thin dark pyritic shears containing
gold which cut the footwall hornblende monzonite which has pyrite and
locally chalcopyrite replacing mafic minerals, which represents
disseminated alteration and mineralization.
-- The current drilling program is targeting stratabound gold
mineralisation in receptive sedimentary units within the target
stratigraphy, fault rocks associated with the 'edge' of the pre-ore
Potoj Cuka monzonite stock and also potential rheologic boundaries as at
the contact between hornfels and unmetamorphosed country rocks.
-- At Bigar two widely spaced (approx.800m) diamond drill holes were
drilled within the western portion of the gold-in-soil anomaly with the
following results (0.4g/t Au cut-off grade) and see also Table 2
(http://media3.marketwire.com/docs/Table2a.pdf):
-- BIDD001: 16m @ 0.68g/t (from 0m)
6. DISCUSSION
-- A major sediment hosted gold district has been discovered bordering the
western boundary of the Timok Magmatic Complex and has been shown by
soil sampling and trenching to extend over 20 km along strike and
approx.8 km wide.
-- Review of the geology and available drill intersections has confirmed
the strong similarity to the style of gold mineralization typified by
the North Carlin Trend, Nevada, USA.
-- At Kraku Pestar, the first target area to be drilled by widely spaced
drill holes, significant gold mineralization has been intersected for
over 250m along strike and 200m down dip with the mineralization open in
all directions. The results to date are considered to be extremely
encouraging as they represent the first systematic drilling into the
first of five target areas within the currently defined 20 km x 8 km
district.
-- Numerous additional priority targets have been identified within the
exposed target horizons of Lower Cretaceous impure calcareous and
volcanic derived sediments which are generally located adjacent to the
pre-ore Potoj Cuka monzonite stock. The recognition that the multi-
element soil anomalies defined to date define 'erosional windows' into
the underlying stratigraphy beneath barren Jurassic limestone has
reinforced the significant gold potential for the district.
-- The soil sampling and trenching program will be continued in order to
define the extents of the sediment hosted gold district and further
priority target areas are planned to be drilled as soon as the results
of the current trenching program have been received and interpreted.
-- Further geophysical modelling along with detailed geological mapping is
underway.
-- A metallurgical test work program has been initiated using the drill
core collected to date.
7. SAMPLING AND ANALYSIS
The stream sediment samples have been dispatched for multi-element analysis by
Inductively Coupled Plasma (ICP-MS) techniques using equipment at the ALS Chemex
laboratory, Perth, Australia. The BLEG samples have been sent to SGS Welshpool,
Perth, Australia for leach analysis by method BLL62N. 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 while gold has been assayed
by low level detection fire assay method. For the majority of the trench
sampling program a two metre sample interval has been used and the samples have
been prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and
have been assayed at the SGS managed laboratory at Chelopech in Bulgaria.
Following Avala standard procedures, a full suite of field and laboratory
duplicates and replicates along with internationally accredited standards have
been submitted with each batch of samples. Diamond drill core has been prepared
at the SGS managed laboratory facility at Bor, Eastern Serbia and assayed at
either the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed
assay laboratory at Bor, Eastern Serbia. A one metre sampling interval has been
used where possible for the Kraku Pestar and Bigar diamond drilling program.
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.
(i)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 is a recently-formed company focused on the
exploration and development of the Potoj Cuka sediment hosted gold project and
the Timok gold-copper project in Serbia. The common shares of Avala trade on the
TSX Venture Exchange under the symbol AVZ.
Avala is well-capitalized, with approximately $19.6 million in its treasury at
July 30, 2010, which it plans to use for the exploration and development of its
mineral projects in Serbia. Avala's issued and outstanding share capital totals
146,284,237 common shares, of which approximately 50.2% is held by Dundee
Precious Metals Inc. (TSX: DPM).
This press release contains forward-looking information. Although the Company
believes in light of the experience of its officers and directors, current
conditions and expected future developments and other factors that have been
considered appropriate that the expectations reflected in this forward-looking
information are reasonable, undue reliance should not be placed on them because
the Company can give no assurance that they will prove to be correct.
Forward-looking information involves known and unknown risks, uncertainties,
assumptions and other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking information. The
forward-looking statements contained in this press release are made as of the
date hereof and the Company undertakes no obligations to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this press release.
Figure 1: http://media3.marketwire.com/docs/Figure1a.pdf
Figure 2: http://media3.marketwire.com/docs/Figure2a.pdf
Figure 3: http://media3.marketwire.com/docs/Figure3a.pdf
Figure 4: http://media3.marketwire.com/docs/Figure4a.pdf
Figure 5: http://media3.marketwire.com/docs/Figure5a.pdf
Figure 6: http://media3.marketwire.com/docs/Figure6a.pdf
Table 1: http://media3.marketwire.com/docs/Table1a.pdf
Table 2: http://media3.marketwire.com/docs/Table2a.pdf