Avala Resources Confirms Strong Gold Mineralization Over Two Kilometers on the Korkan-Bigar Target Area: Intersects 26 Meters at
April 11 2011 - 7:30AM
Marketwired Canada
Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
present an update on drill 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
-- Wide-spaced 'step out' drilling on the Korkan-Bigar target area
continues to intersect gold mineralization within the target
stratigraphy, a sequence of strongly altered and decarbonatized
conglomerates and sandstones with interbedded fine grained sandstone and
clay-rich siltstones.
-- Drilling of the Korkan-Bigar target area (Bigar Hill) returned the
following wide gold intercepts (0.4g/t cut-off grade):
-- BHDD005:
-- 5m @ 2.40g/t (from 118m)
-- 26m @ 2.26g/t (from 133m)
-- Including: 20m @ 2.82g/t (from 134m)
-- 8m @ 1.37g/t (from 178m)
-- 20m @ 0.76g/t (from 258m)
-- BHDD007:
-- 11m @ 0.69g/t (from 180m)
-- 15m @ 2.82g/t (from 227m)
-- Including: 9m @ 4.44g/t (from 233m)
-- Trenching of the Korkan-Bigar target area (Bigar Hill) returned the
following wide, gold intercept (0.4g/t cut-off grade):
-- BITR064
-- 148m @ 1.74g/t
-- Including: 38m @ 3.75g/t & 30m @ 2.35g/t (from 270m & 320m)
-- To date Avala has outlined gold mineralization at Korkan over an area of
approximately 700 meters by 300 meters surrounding the original
discovery hole (KODD001) and an area of 500 meters by 300 meters in the
Bigar Hill area (open in all directions) . Avala intends to continue the
wide-spaced drilling program to test the prospective 'target
stratigraphy' within an initial area of over 3.5 square kilometers in
the Korkan-Bigar target area, in order to outline the size of the newly
defined sediment-hosted gold system.
-- The combined Korkan-Bigar target area is over 10 kilometres long and 2.5
kilometers wide and represents the northern portion of the sediment-
hosted gold belt.
-- Avala currently has six diamond drill rigs operating on the Korkan-Bigar
target area. One diamond drill rig has been allocated to the southern
portion of the sediment-hosted gold belt on the Umka-Strnjak target area
where scout drill holes are being drilled on nominal 1,000 meter centers
within the target stratigraphy.
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.
-- In the Korkan-Bigar target area, stratabound and fault-controlled
sediment-hosted gold mineralization is hosted within a favourable
sedimentary unit; a polymict conglomerate and sandstone with a carbonate
matrix component which is the host to the strongly mineralized interval
intersected by the initial drill hole KODD001 that returned 52 meters at
4.30g/t gold (previously reported in a news release dated Nov. 10,
2010). This target unit is underlain by massive Jurassic limestone.
-- Overlying the 'target' sequence is a barren interbedded fine grained
sandstone and clay-rich siltstone unit which is considered to have acted
as a 'capping' unit to the gold mineralization. This unit outcrops in
the Korkan-Bigar target area and, along with overlying unmineralized
marls and andesitic volcanics and volcaniclastics, is responsible for
the lack of a gold geochemical response from soil sampling over the
target area.
-- The 'target stratigraphy' appears to have been very gently folded under
the cover sequence and 'daylights' again at the northern part of the
Bigar target area.
-- Figure 1 shows the location of the Korkan-Bigar target area within the
20 kilometer long sediment-hosted gold belt, defined in this image by
anomalous gold soil geochemistry together with drill hole collar
locations.
3. DRILLING & TRENCHING AT KORKAN-BIGAR
-- Bigar Hill: Avala is continuing the 'step out' drilling program at the
Korkan-Bigar target area, on a nominal 160 meter by 160 meter spacing.
The results of diamond drill holes BHDD001 to BHDD007 are discussed
below. See Tables 1 for a summary of all intersections at various cut-
off grades.
-- Figure 2 shows a plan view of the current drilling program annotated
with significant intervals. Figure 3 shows a gram-meter (intervals
greater than 0.4g/t Au) x thickness metal contour plot of all Korkan-
Bigar drilling to date superimposed on mapped geology.
-- Strong gold mineralization is hosted within polymict conglomerate and
sandstone intervals which have been strongly decarbonatized with
intense, sooty, fine grained pyrite matrix infill. To date gold
mineralization within the footwall Jurassic massive limestone at Korkan-
Bigar has been of an overall low tenor and is generally associated with
brittle deformation i.e. brecciation.
-- Additional drilling was completed within the Korkan target area and
results have been returned for the following eight drill holes: KODD017,
KODD019 to KODD021 and KODD023 to KODD026; no significant intervals were
returned from these holes using a 0.4g/t cut-off. Generally, the 'target
stratigraphy' was intersected but was only sporadically mineralized. See
Figure 2 & Table 2.
----------------------------------------------------------------------------
From Interv Au
Hole ID Target Area (m)To (m)al (m) (g/t) Comments
Intersected minor volume of
clastic sediments prior to
BHDD001 Bigar Hill 75 80 5 0.44 the footwall limestone.
Intersected minor volume of
clastic sediments prior to
BHDD002 Bigar Hill 48 68 20 0.57 the footwall limestone.
Intersected unmineralized
BHDD003 Bigar Hill NSR target stratigraphy.
Multiple mineralized
BHDD004 Bigar Hill 49 92 43 0.67 horizons within calcareous
52 63 11 1.28 sandstones.
Including 121 145 24 1.05
125 139 14 1.47
Including 195 200 5 0.90
Multiple mineralized
BHDD005 Bigar Hill 118 123 5 2.40 horizons within calcareous
133 159 26 2.26 sandstones.
Including 134 154 20 2.82
178 186 8 1.37
258 278 20 0.76
Including 265 271 6 1.41
Mineralized calcareous
sandstones.
BHDD006 Bigar Hill 86 98 12 1.32
including 86 95 9 1.51
Strongly mineralized
calcareous sandstones
BHDD007 180 191 11 0.69 immediately above the
227 242 15 2.82 footwall limestone.
Including Bigar Hill 233 242 9 4.44
Mineralized coarse
BITR064 Bigar Hill 270 418 148 1.74 calcareous sandstones.
Including (Trench) 270 308 38 3.75
and 320 350 30 2.35
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 kilometers along strike and is up to 8 kilometers 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.
-- 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 target area and
the entire sediment-hosted gold belt.
-- Drill testing of the Korkan-Bigar sediment-hosted gold target area will
continue with wide spaced (nominal 160 meter by 160 meter) diamond drill
holes to allow Avala to outline the potential size of the sediment-
hosted gold system within an initial area of approximately 3.5 square
kilometers.
-- 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 square kilometers and intends to
systematically drill test all currently defined priority target areas.
5. 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. The Company has established a laboratory facility at Bor, Eastern
Serbia which is independently managed by SGS. Trench samples were prepared at
the laboratory facility at Bor and the samples have been assayed at the SGS
managed laboratory at Chelopech in Bulgaria or the laboratory facility at Bor.
Diamond drill core has been prepared at the laboratory facility at Bor and
assayed at either the SGS managed laboratory at Chelopech in Bulgaria or the
assay laboratory at Bor. 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 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 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 $47 million in its treasury at
March 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
214,492,223 common shares, of which approximately 51.4% 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 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 similarities suggested and with 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 tables associated with this release are available at the following
address: http://file.marketwire.com/release/avz.pdf
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