Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala")
is pleased to present an update on drill and trench results from
the Korkan-Bigar 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
-- Initial drilling on the Korkan target area has confirmed strong gold
mineralization within the target stratigraphy, a sequence of intensely
altered and decarbonatized conglomerates and sandstones.
-- The Korkan target area, as currently defined by gold in soil surface
geochemistry, is approximately 4.5 km in length and up to 1 km wide and
is underlain by Jurassic limestone, conglomerates and sandstones with
varying carbonate content.
-- Drilling of the Korkan target area returned the following wide, high-
grade gold intercept (1g/t cut-off grade):
-- 52m @ 4.30g/t (from 17m)
-- Including: 18m @ 9.05g/t (from 48m)
-- The initial drill hole follows up and confirms the 'discovery' trenches
(JASTR009, KOTR033), excavated in 2008 and 2010, which returned the
following intersections and have been previously reported:
-- 140m @ 2.67g/t
-- 59m @ 2.50g/t
-- 58m @ 2.61g/t
-- Additional trench sampling on the Bigar target area during 2010 has
returned the following wide, low-moderate grade gold intercepts (0.4g/t
cut-off grade):
-- 32m @ 1.08g/t
-- 22m @ 1.27g/t
-- 54m @ 0.47g/t
-- 32m @ 0.66g/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 1-3 and Tables 1 & 2 at the end of
this release for additional detail.
2. 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.
Detailed multi-element analysis of soil samples has indicated
that the anomalous 'pathfinder' geochemistry shows very similar
characteristics to the North Carlin Trend style sediment hosted
gold mineralisation in Nevada, USA; namely a strong Au-As-Sb-Tl-Hg
pathfinder association. Mineralogical studies on drill core have
confirmed other key aspects of this style.
The Korkan target area is underlain by massive Jurassic
limestone, overlain by a polymict conglomerate and sandstone
sequence with a carbonate matrix component which is the host to the
strongly mineralized interval intersected by the initial drill
hole. The polymict conglomerate is overlain by calcareous sandstone
which does not contain gold. Avala now believes that this overlying
calcareous sandstone may represent a later mineralizing event,
which included hydrothermal pyrite deposition without gold and now
effectively represents a 'cover sequence'. The polymict
conglomerate and sandstone unit appears to dip moderately
(approx.30 degrees ) towards the south-south west under the 'cover
sequence' and towards the Bigar target area; further drilling will
confirm the orientation of the target stratigraphy.
The Korkan target area represents possible stratabound sediment
hosted gold mineralization within a favourable sedimentary unit;
the polymict conglomerate and sandstone.
Figure 1 shows the Korkan-Bigar target area within the larger
sediment hosted gold belt together with the locations of the newly
recognized 'cover sequence'. There may be additional windows
through the 'cover sequence', however historic mapping was unable
to differentiate between the various sedimentary units due to a
distinct lack of surface exposure.
3. DRILLING AT KORKAN
-- Initial diamond drilling (KODD001) on the Korkan target area was
designed to test the down dip continuity of the previously reported
surface trench (KOTR033).
-- Figure 2 displays an interpretive cross section through the Korkan
target area. Strong gold mineralization has been intercepted in variably
decarbonatized clastic sediments. Significant intercepts from the Korkan
target area are detailed in Table 1 at a range of gold cut-off grades
and include the following (1g/t Au cut-off grade):
-- KODD001:
-- 52m @ 4.30g/t (from 17m)
-- Including 18m @ 9.05g/t (from 48m)
-- A brief description of the initial drill hole is outlined here:
-- 0m-17m: 'cover sequence' which is represented by calcareous
sandstones with zones of soft-sediment deformation. The interval is
oxidized down to 7m after which it contains disseminated, sooty,
fine grained pyrite but does not contain gold.
-- 17m-36m: polymictic conglomerate dominated by limestone clasts but
also containing quartz pebble, marl and sandstone clasts. The
interval contains sooty, fine grained pyrite within the sedimentary
matrix and has a gold tenor of approximately 1g/t.
-- 36m-48m: coarse calcareous sandstone with lesser conglomerate
layers. The interval is moderately decarbonatized, sooty, fine
grained pyrite dominates within the sedimentary matrix and has a
gold tenor of approximately 3g/t.
-- 48m-66m: polymict conglomerate with occasional graded sandstone
intervals. The interval is strongly decarbonatized with intense,
sooty, fine grained pyrite matrix infill and has a gold tenor of
approximately 9g/t.
-- 66m-End of Hole: erosional contact with the underlying massive
limestone which contains minor karst features in the upper horizon
which is associated with low tenor gold mineralization.
-- The current drilling program is targeting stratabound gold
mineralisation in receptive sedimentary units within the target
stratigraphy.
4. TRENCHING AT BIGAR
-- The recently completed trench program at Bigar consisted of 2,352 meters
for 1,151 samples (2 meter standard sample interval) and was designed to
follow up previous trench sample assay results obtained 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.
-- Table 2 details trench intercepts at a range of cut-off grades for the
Bigar target area.
-- Figure 3 displays the location of trench sampling to date and shows the
recently completed program together with the geology in the Bigar target
area.
-- Highlights from the Bigar target area include the following trench
intercepts (0.4g/t Au cut-off grade):
-- BITR049: 32m @ 1.08g/t
-- BITR053: 22m @ 1.27g/t
-- BITR057: 54m @ 0.47g/t
-- BITR058: 32m @ 0.66g/t
-- Trench results from the 2010 program have returned gold mineralization
from sandstones, conglomerates, limestones and andesitic tuffs and
agglomerates.
-- In particular, trenches BITR057 & BITR058 have returned wide, low grade
gold intervals from a sandstone-dominated sedimentary unit which is
believed by Avala to represent a continuation of the 'target
stratigraphy' southwards from the Korkan target area which was
intersected in diamond drill hole KODD001.
5. 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, initial diamond drilling has outlined significant gold
mineralization associated with polymict conglomerate and sandstone which
have been variably decarbonatized and mineralized with sooty, fine
grained pyrite which contains significant gold values. The outcropping
area of gold mineralization 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.
-- Drill testing of the Korkan stratabound sediment hosted gold target area
will continue with wide spaced (nominal 160 meter x 160 meter) diamond
drill holes to allow Avala to effectively scale the potential size of
the sediment hosted gold system in the Korkan-Bigar target area.
-- Trenching programs continue on multiple target areas within the sediment
hosted gold belt in order to assist in defining the extents of the
anomalous gold mineralization 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,
focusing on stratigraphic relationships, together with a detailed
structural analysis of the sediment hosted gold belt is underway.
6. 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. 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 Sediment Hosted Gold Belt
diamond drilling program. 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 $17.9 million in
its treasury at September 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.
Figures 1, 2, 3 and Tables 1, 2 are available at the following
link: http://media3.marketwire.com/docs/avala1110.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