Avala Resources Extends Korkan Discovery With Wide-Spaced Diamond Drilling-Intersects 20 Meters at 2.63g/t and 38 Meters at 1.09
December 07 2010 - 9:12AM
Marketwired Canada
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.
"These initial drill results from the wide-spaced drilling program on the
Korkan-Bigar target area are very much in line with our expectations from this
style of sediment-hosted gold mineralization," said James Crombie, President and
CEO of Avala. "We will continue to aggressively drill test this large gold
mineralized area which represents one of the multiple target areas within the 20
kilometer long sediment-hosted gold belt defined to date".
1. HIGHLIGHTS
-- Wide-spaced 'step out' 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.
-- Drilling of the Korkan target area returned the following wide, medium
grade gold intercepts (0.4g/t cut-off grade):
-- KODD002 (located 160 meters south from discovery drill hole
KODD001):
-- 20m @ 2.63g/t (from 132m)
-- Including: 17m @ 3.00g/t (from 132m)
-- KODD007 (located approximately 440 meters southeast from discovery
drill hole KODD001):
-- 38m @ 1.09g/t (from 233m)
-- Including: 20m @ 1.76g/t (from 241m)
-- Geological mapping and surface soil geochemistry suggests that the
Korkan and Bigar target areas are part of one contiguous zone, obscured
in the center by a barren overlying clastic sediment and marl unit.
Recent trenching at Bigar North, some 1.5 kilometers to the south of the
Korkan discovery trenches, has intersected gold mineralization within a
conglomerate and sandstone unit and has returned the following (0.4g/t
cut-off grade):
-- BITR060: 82m @ 0.74 g/t
-- The combined Korkan-Bigar target area is over 10 kilometres long and 2.5
kilometers wide.
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.
-- The Korkan-Bigar target area is underlain by massive Jurassic limestone,
unconformably 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 KODD001 which
returned 52 meters at 4.30g/t gold (previously reported in a news
release dated Nov. 10, 2010). The polymict conglomerate is overlain by
calcareous sediments (conglomerate, mudstone and sandstone) which do not
contain gold, along with an unmineralized overlying marl unit. Avala
believes that these overlying sedimentary units represent a barren
'cover sequence'. The polymict conglomerate and sandstone unit, which is
host to the gold mineralization intersected to date, appears to have
been very gently folded under the 'cover sequence' and 'daylights' again
at the northern part of the Bigar target area.
-- The Korkan-Bigar target area represents possible stratabound sediment-
hosted gold mineralization within a favourable sedimentary unit; the
polymict conglomerate and sandstone.
-- Figure 1 shows the key target areas within the 20 kilometer long
sediment-hosted gold belt, defined in this image by anomalous gold soil
geochemistry.
-- Figure 2 displays the geological map of the central Korkan-Bigar target
area; with the Korkan discovery trenches at the extreme north of the
figure and trench BITR060 located 1.5 kilometers directly south.
3. DRILLING AT KORKAN
-- Following initial diamond drilling (KODD001) on the Korkan target area a
program of step out drilling, on a nominal 160 meter by 160 meter
spacing, has been started. The results of diamond drill holes KODD002 to
KODD007 are discussed in this release.
-- Diamond drill hole KODD002, located 160 meters south of KODD001 (52m @
4.30g/t) has returned (0.4g/t cut-off grade):
-- 20m @ 2.63g/t Au (from 132m)
-- Including 17m @ 3.00g/t Au (from 132m)
-- Diamond drill hole KODD005, located 320 meters south of KODD001 has
returned (0.4g/t cut-off grade):
-- 13m @ 0.52g/t Au (from 229m)
-- 1m @ 22.4g/t Au (open) (from 256m; end of hole = 257m)
-- Diamond drill hole KODD007, located approximately 440 meters southeast
of KODD001 has returned (0.4g/t cut-off grade):
-- 5m @ 0.43g/t (from 50m)
-- 38m @ 1.09g/t Au (from 233m)
-- Including 20m @ 1.76g/t Au (from 241m)
-- Figure 3 shows a cross section through the Korkan discovery trenches and
diamond drill holes KODD001, KODD002 and KODD005. The section is
oriented north-south, looking west. Strong gold mineralization has been
intercepted in variably decarbonatized clastic sediments.
-- Drill holes KODD003, KODD004 and KODD006 have intersected low grade gold
mineralization within the clastic sediments located immediately above
the footwall, massive Jurassic limestone, see Table 1. The low grade
gold intercepts intersected at shallower levels within KODD007 show the
potential for 'stacked' mineralization within the target stratigraphy.
-- Strong gold mineralization is hosted within polymict conglomerate and
sandstone intervals which have been strongly decarbonatized with
intense, sooty, fine grained pyrite matrix infill. The target
stratigraphy unconformably overlies massive Jurassic limestones. To date
gold mineralization within the footwall, massive limestones has been of
a low tenor, however, recent results from KODD005 indicate the potential
for higher gold grades.
4. TRENCHING AT BIGAR
-- The recently completed trench program at Bigar consisted of 2,684 meters
for 1,336 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. The trench
program was also designed to help refine geological contact
relationships due to the poor exposure in the area.
-- Recent highlights from the Bigar target area include the following
trench gold intercept (0.4g/t Au cut-off grade and see also Table 2):
-- BITR060: 82m @ 0.74g/t
-- In particular, trench BITR060 (together with previously reported
trenches BITR057 & BITR058, Nov. 10, 2010) have returned wide, low grade
gold intervals from the sandstone-dominated sedimentary unit which is
believed by Avala to represent a continuation of the 'target
stratigraphy', which was intersected in diamond drill hole KODD001,
southwards from the Korkan target area which was intersected in diamond
drill hole KODD001 - a distance of approximately 2 kilometers.
-- Table 2 details trench intercepts at a range of cut-off grades for the
Bigar target area and Figure 2 shows trench locations together with
geology.
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 and at Bigar, trenching, have
outlined significant gold mineralization over a north-south length in
excess of 4 kilometers, associated with polymict conglomerate and
sandstone which have been variably decarbonatized and mineralized with
sooty, fine grained pyrite which contains significant gold values.
-- 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 lithological and stratigraphic unit has significant
implications for the gold potential of the Korkan-Bigar area and the
entire sediment-hosted gold belt.
-- Drill testing of the Korkan-Bigar 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 addition, the Jurassic limestone package has strongly anomalous gold
in soil geochemistry where it is exposed in the Korkan-Bigar target area
and numerous gold mineralized trench intercepts have been returned to
date, hosted in limestone, which require drill follow-up in due course.
-- Avala controls 100% of the newly identified sediment hosted gold belt
which totals approximately 250 sq km and intends to systematically drill
test all currently defined priority target areas.
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
quality assurance 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 146,419,357 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, the potential of the project, the
similarities suggested 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.
To view the maps and tables associated with this release, please visit the
following link: http://media3.marketwire.com/docs/Avz1207.pdf