Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala")
is pleased to present an update on the Korkan target area, part of
the sediment hosted gold belt within the Cretaceous magmatic arc
bordering the Timok Magmatic Complex ("TMC") in Eastern Serbia.
1. HIGHLIGHTS
-- Surface trenches on the Korkan target area have outlined an erosional
window into the strongly gold mineralised target stratigraphy.
-- The Korkan target area, as currently defined by gold surface
geochemistry, is approximately 4.5 km in length and up to 1 km wide and
is underlain by Jurassic limestone, conglomerates and sandstone with
varying carbonate content.
-- Trench sampling of the Korkan target area returned the following wide,
high-grade gold intercept (0.4g/t cut-off grade):
-- 140m @ 2.67g/t
-- Including: 74m @ 4.27g/t
-- The trench sampling follows up and confirms the initial 'discovery'
trench (JASTR009), excavated in 2008 which returned the following
intersections:
-- 59m at 2.50g/t and
-- 58m at 2.61g/t.
-- Avala controls 100% of the newly identified sediment hosted gold belt
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 and 2 at the end of this release
for additional detail.
GEOLOGY AND MINERALIZATION STYLE
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.
Geological mapping of the sediment hosted gold belt suggests
mineralization is associated with a complex lithological 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, conglomerates, sandstones and tuffaceous sedimentary
rocks.
The belt is extensively faulted and intruded by numerous diorite
and monzonite complexes with associated thermal metamorphic
aureoles, indicating the potential for sufficient permeability and
rheologic contrast for fluid movement and hydrothermal
deposition.
The Korkan target area is underlain by massive Jurassic
limestone, overlain by a quartz pebble conglomerate and sandstone
sequence with a carbonate matrix component which is the host to the
strongly mineralised interval intersected by the surface trenches.
The quartz pebble conglomerate is overlain by a carbonate-clast
conglomerate which is not mineralized. Avala currently believes
that this 'cover sequence' may postdate the gold mineralising event
(a similar 'cover sequence' unit is present between the Umka and
Strnjak target areas; see Figure 1). The quartz pebble conglomerate
and sandstone unit appears to dip moderately (approx.40 degrees )
towards the south-south west under the 'cover sequence' and towards
the Bigar target area.
The Korkan target area represents possible stratabound sediment
hosted gold mineralization within a favourable sedimentary unit;
the quartz pebble conglomerate.
The strongly mineralised interval cut in surface trench KOTR033
is generally oxidised and the effects of supergene processes are
currently not known.
Figure 1 shows the Korkan target area within the larger sediment
hosted gold belt together with the locations of the newly defined
'cover sequence'.
3. TRENCH
-- The recently completed trench program at Korkan consisted of 1,658
meters for 829 samples and was designed to follow up a previous high
grade trench (JASTR009) defined during the initial wide spaced (nominal
800m spacing) trench program and to help refine geological contact
relationships due to the poor exposure in the area.
-- KOTR033 was designed orthogonal to the high-grade (JASTR009) trench due
to the recognition that the initial trench was not favourably located to
be representative of the true width of the quartz pebble conglomerate
unit.
-- Table 1 details trench intercepts at a range of cut-off grades for the
Korkan sediment hosted gold target area.
-- Figure 2 displays the location of trench sampling to date and shows the
recently completed program together with the geology in the Korkan
target area.
-- Highlights from the Korkan target area include the following trench
intercepts (0.4g/t Au cut-off grade):
-- KOTR033: 140m @ 2.67g/t
-- Including:
-- 74m @ 4.27g/t
-- 18m @ 1.19g/t
-- 6m @ 2.10g/t
-- 6m @ 1.38g/t
4. DISCUSSION
-- A major sediment hosted gold belt bordering the western boundary of the
Timok Magmatic Complex identified by soil and trench samples extends
over 20 km along strike and is approximately 8 km wide.
-- 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.
-- At Korkan, recently completed trenches have outlined significant gold
associated with quartz pebble conglomerates and sandstone with a
carbonate matrix component. The outcropping area of gold mineralisation
is a small (170 meter x 120 meter) erosional window into the target
stratigraphy.
-- The recognition that the Korkan and Bigar target areas are separated by
a 'cover sequence', which appears to be post-mineral has significant
implications for the gold potential of the sediment hosted gold belt.
-- Initial drill testing of the Korkan stratabound sediment hosted gold
target area should commence in the first week of November 2010.
-- Trenching programs will continue on multiple target areas within the
sediment hosted gold belt in order to define the extents of the
anomalous gold and to further define priority target areas to be drilled
as soon as the results of the current trench programs are received and
interpreted.
-- Further geophysical modelling along with detailed geological mapping are
underway.
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. Trench samples were prepared at the SGS managed laboratory
facility at Bor, Eastern Serbia and the samples have been assayed
at the SGS managed laboratory at Chelopech in Bulgaria or the SGS
managed laboratory facility at Bor, Eastern Serbia. 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.
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 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 in this news release
includes statements regarding the nature of the mineralization of
the project, the results of the exploration activities and
interpretation of such results, and timing and location of future
work programs. 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.
Maps and table are available at the following address:
http://media3.marketwire.com/docs/avala.pdf
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.
Contacts: Avala Resources Ltd. James Crombie President and Chief
Executive Officer 450-640-0810 jcrombie@avalaresources.com
www.avalaresources.com