Avala Resources Announces 2011 Exploration Program: Aggressive Focus on the Emerging Sediment-Hosted Gold Belt With +80,000 Mete
February 22 2011 - 12:23PM
Marketwired
Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala")
is pleased to outline the objectives of the Company's 2011
exploration program and budget for its sediment-hosted gold belt
located adjacent to the Cretaceous magmatic arc bordering the Timok
Magmatic Complex ("TMC") in Eastern Serbia and additional Timok
target areas located within the TMC.
"Avala recognizes the tremendous potential of the recently
identified sediment-hosted gold belt in eastern Serbia, which has
been identified across an area of over 20 kilometers by 5
kilometers," said James Crombie, President and CEO of Avala. "We
will continue to aggressively drill test this large, 100%-owned,
gold mineralized belt throughout 2011 on a systematic basis with
the objective of generating an initial mineral resource estimate,
in accordance with Canadian National Instrument 43-101 ("NI
43-101") guidelines for mineral projects, later in the year. We are
looking forward to our first full 12-month exploration period as
Avala Resources."
1. HIGHLIGHTS
-- Avala has commenced 2011 with a solid cash position of $31 million in
its treasury as at January, 31. The Company plans to spend approximately
$20 million on its exploration programs during 2011, of which 77% are
projected to be 'in the ground' direct costs.
-- Approximately 84% of Avala's budget will be directed toward the newly
emerging sediment-hosted gold belt where at least 80,000 drill meters
have been planned:
-- Wide-spaced diamond drilling (nominal 160 meters by 160 meters) will
continue on the Korkan-Bigar target area which has been currently
outlined over an area of 3.5km2 and approximately 33,000 meters has
been allocated to the target area in order to establish the size of
the overall mineralized system.
-- Additionally, 36,000 meters of reverse circulation drilling has been
planned for the Korkan-Bigar target area. The RC drilling program
will result in approximately 40% of the target area being defined
with a drill grid spacing on a nominal 80 meters by 80 meters. The
Company believes that the completion of such a program should
provide the necessary additional data required to undertake an
initial mineral resource estimate to NI 43-101 guidelines.
-- Approximately 19,500 meters of wide-spaced diamond drilling (nominal
1,000 meters by 320 meters) has been designed to effectively test
the favorable target stratigraphy located within the southern
portion of the belt. This target area, known as the Umka-Strnjak
trend, has an approximate surface expression of 20km2 and is
characterized by its extensive volumes of Fe-rich, calcareous,
volcano-sedimentary units in a favorable structural setting
associated with an extensive Au-As-Sb-Tl-Hg geochemical halo.
-- Additionally, 20,000 meters of trenching and 8,000 soil samples have
been allocated to expanding the overall footprint of the sediment-
hosted gold belt which the Company has outlined with stream sediment
sampling over a larger area of approximately 250km2.
-- See Figures 1 & 2 for the location of Avala's principal target areas
within the sediment-hosted gold belt.
-- Approximately 10% of Avala's budget has been allocated to the Company's
Timok Project pipeline. The majority of drill meters have been allocated
to the Kuruga Deep Porphyry target located beneath an extensive lithocap
(4km2) where Avala defined a strongly potassic altered diorite porphyry
during 2010, commencing 450 meters down hole. Additional drill meterage
has also been assigned to the Southern Timok target areas where various
early stage targets are located.
-- The remaining 6% of Avala's budget will be directed towards the Timok
Diorite Au-Cu Porphyry cluster, principally to the Coka Rakita Au
porphyry target area. The Company's objective will be to determine the
footprint of the Coka Rakita Au porphyry, mineralization style and
structural controls together with an initial assessment of economic
viability.
2. DISCUSSION
-- A major sediment-hosted gold belt bordering the western boundary of the
Timok Magmatic Complex, identified by soil and trench samples together
with limited diamond drill holes, extends over 20 kilometers along
strike and is approximately 5 kilometers wide on average.
-- 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 'target stratigraphy' has significant implications for
the gold potential of the Korkan-Bigar target area and the entire
sediment-hosted gold belt.
-- Exploration during 2010 has highlighted the potential of the Umka-
Strnjak target area, which comprises the majority of the southern
portion of the belt, to host sediment-hosted gold. This area is bounded
to the north by the Kraku Pestar target area (previously reported in a
news release dated Oct. 7, 2010) and continues southwards to the Umka
target area where Avala has recently commenced diamond drilling. The
favorable target stratigraphy covers an approximate area of
approximately 20km2 and is bounded to the east by the large pre-mineral
monzonite stock and to the west by a major through-going fault structure
which separates it from a sequence of Jurassic and Lower Cretaceous
limestones.
-- In addition, the Jurassic limestone package has strongly anomalous gold
in soil geochemistry where it is exposed in the Korkan-Bigar and Umka-
Strnjak target areas 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 square kilometers and intends to
systematically drill test all currently defined priority target areas.
-- See Tables 1 & 2 for a full summary of previously reported drill hole
results from the Korkan-Bigar and Kraku Pestar target areas at various
cut-off grades.
3. 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 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 was 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 $31 million in its
treasury at January 31, 2011, which it plans to use for the
exploration and development of its mineral projects in Serbia.
Avala's issued and outstanding share capital totals 180,202,044
common shares, of which approximately 42.1% is held by Dundee
Precious Metals Inc.
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 completion of a mineral
resource estimate, the gold potential of the project, the potential
size of the sediment-hosted gold system, the suggested similarity
to the style of gold mineralization of the North Carlin Trend
project and the timing, location and amounts to be spent under the
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 consult the maps and tables associated with this release,
please visit the following link:
http://media3.marketwire.com/docs/avza0222.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 info@avalaresources.com
www.avalaresources.com