Avala Resources Ltd. (TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to
announce the initial resource estimate for the Korkan project area, part of its
Timok Gold Project, a new gold discovery in an emerging sediment-hosted gold
belt located in Eastern Serbia.
The Korkan mineral resource, prepared by AMC Consultants Limited (UK) ("AMC"),
an independent mining consulting firm, has been estimated at 20,100,000 tonnes
grading an average of 1.5 g/t gold in the inferred resource category for
1,000,000 ounces of gold, using a 0.6 g/t gold cut-off.
The combined inferred resource for Korkan and Bigar Hill has been estimated at
46,500,000 tonnes at an average grade of 1.6 g/t gold in the inferred resource
category for 2,300,000 ounces of gold, using a 0.6 g/t gold cut off.
A summary of the Korkan mineral resource estimate using various cut-offs is
tabulated below:
----------------------------------------------------------------------------
KORKAN
INFERRED RESOURCE ESTIMATE (1,2,3,4,5)
Combined Mineralized Zones
In Situ Resources
Local Multiple Indicator Kriging
5m x 5m x 5m Selective Mining Unit
----------------------------------------------------------------------------
Cut Off Grade Million Au Million
(Au g/t) Tonnes (g/t) Ounces (Au)
----------------------------------------------------------------------------
0.2 49.5 0.8 1.3
0.4 31.0 1.2 1.2
0.6 20.1 1.5 1.0
0.8 13.5 1.9 0.8
1.0 10.0 2.3 0.7
----------------------------------------------------------------------------
1. The effective date of the mineral resource estimate is 30th October
2012.
2. The gold price used in this estimate was the mean gold price for 2010
and 2011 of US$1350/oz. First phase, extensive metallurgical test work
is nearing completion and, based on information to date, along with
possible projected throughput rates for the entire Timok Gold Project,
typical mining costs and a range of processing costs and indicative
ranges of processing recoveries it is, at this stage, believed that
possible cut off grades lie in the range of 0.4g/t to 0.8g/t.
3. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
4. The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as indicated or measured mineral
resources.
5. Totals and average grades are subject to rounding to the appropriate
precision.
A summary of the Korkan and Bigar Hill resource estimates is tabulated below:
----------------------------------------------------------------------------
TIMOK GOLD PROJECT
INFERRED RESOURCE ESTIMATE (1,2,3,4,5)
Combined Mineralized Zones
In Situ Resources
Local Multiple Indicator Kriging
5m x 5m x 5m Selective Mining Unit
----------------------------------------------------------------------------
Cut Off Grade Million Au Million
(Au g/t) Tonnes (g/t) Ounces (Au)
----------------------------------------------------------------------------
KORKAN
----------------------------------------------------------------------------
0.2 49.5 0.8 1.3
0.4 31.0 1.2 1.2
0.6 20.1 1.5 1.0
0.8 13.5 1.9 0.8
1.0 10.0 2.3 0.7
----------------------------------------------------------------------------
BIGAR HILL
----------------------------------------------------------------------------
0.2 63.9 0.9 1.8
0.4 38.0 1.3 1.5
0.6 26.4 1.6 1.4
0.8 20.4 1.9 1.3
1.0 16.5 2.1 1.1
----------------------------------------------------------------------------
TOTAL
----------------------------------------------------------------------------
0.2 113.4 0.8 3.1
0.4 69.0 1.2 2.7
0.6 46.5 1.6 2.3
0.8 33.9 1.9 2.0
1.0 26.5 2.2 1.8
----------------------------------------------------------------------------
1. The effective date of the mineral resource estimate is 30th October
2012.
2. The gold price used in this estimate was the mean gold price for 2010
and 2011 of US$1350/oz. First phase, extensive metallurgical test work
is nearing completion and, based on information to date, along with
possible projected throughput rates for the entire Timok Gold Project,
typical mining costs and a range of processing costs and indicative
ranges of processing recoveries it is, at this stage, believed that
possible cut off grades lie in the range of 0.4g/t to 0.8g/t.
3. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.
4. The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as indicated or measured mineral
resources.
5. Totals and average grades are subject to rounding to the appropriate
precision, and the numbers may not correlate exactly due to rounding.
The Timok Gold Project comprises several targets including Bigar Hill, Korkan
and Kraku Pester. The Korkan resource estimate is the second of three scheduled
resource estimates, with Kraku Pester to follow.
The Kraku Pester drilling database has been closed off and resource estimation
by AMC is currently underway. Infill drilling at 40 meter by 40 meter spacing is
being completed at Korkan, Bigar Hill and Kraku Pester. At the time of closing
off the Korkan database for the Korkan resource estimate, approximately 25% of
the deposit has been drilled to 40 meter by 40 meter spacing. Once all assay and
QAQC data for the 40 meter by 40 meter drilling over the deposits has been
received, the resource estimates will be updated with the aim of upgrading the
estimates to Indicated Resources. The databases are expected to be completed and
'closed off' during January 2013 with revised resource estimates planned for
completion in Q2 2013.
Avala controls 100% of this newly identified sediment-hosted gold belt which
totals approximately 250 square kilometres.
1. HIGHLIGHTS
-- Independent resource estimation has been completed by AMC on the Korkan
deposit.
-- The Korkan resource estimate is based on 306 drill holes (145 diamond
drill holes and 161 reverse circulation drill holes, including 10 RC
holes with diamond drill core 'tails'). Details of the drilling and
sampling program are summarised in the table below.
-------------------------------------------------------------------
Item DD RC Total
-------------------------------------------------------------------
HOLES 145 161 306
METERS DRILLED 46,825 29,481 77,306
SAMPLES 47,754 29,481 77,235
AVERAGE RECOVERY 98% 88% 94%
ASSAYS (Au) 77,235
BULK DENSITIES 9,543
TWIN DRILL PAIRS 18
TWIN DRILL METERS 2,952
40m x 40m (%) 25
-------------------------------------------------------------------
-- A very large amount of check sampling and assaying has been completed,
as part of Avala's standard QAQC procedures, which is summarized below
for the gold data.
-------------------------------------------------------------------
Item DD RC Total
-------------------------------------------------------------------
FIELD DUPLICATES 1,454 1,454
LAB DUPLICATES 2,282 1,462 3,744
LAB REPEATS 10,527 5,985 16,512
LAB SPLITS 2,759 1,765 4,524
REFEREE GENALYSIS (Au) 939
REFEREE ALS VANCOUVER
(Au) 2,478
BLANKS 1,778
INTERNATIONAL STANDARDS 3,956
-------------------------------------------------------------------
-- Block model preparation and resource estimation has been completed using
Datamine and Isatis. One-meter composites (the standard Avala sampling
unit) were used to define geological boundaries and mineralized
wireframes, whilst three-meter down hole composites were used for
statistical analysis, variography and resource estimation. The table
below summarizes the block model parameters.
-------------------------------------------------------------------
Item EAST NORTH RL
-------------------------------------------------------------------
LENGTH (METERS) 1,780 2,380 670
PARENT CELL (METERS) 20 20 10
SUB-CELL (METERS) 5 5 5
SELECTIVE MINING UNIT 5 5 5
-------------------------------------------------------------------
-- Resource estimation has been completed using the geostatistical
technique, Local Multiple Indicator Kriging ("Local MIK"). Local MIK is
a form of Multiple Indicator Kriging ("MIK") where the grades are
'mapped' directly into selective mining unit ("SMU") sized blocks from a
MIK estimate. Bulk density has been estimated into the block model using
inverse distance weighting. Three main mineralized zones were defined;
within the overlying volcanics ("Volcanics"), surrounding the boundary
of the S1/S2 sedimentary units ("MSSS") and surrounding the
S1/underlying limestone boundary ("MSSL", two zones). A total of 11
indicator cut offs were used to define the metal distribution within the
model cells. Upper limits were used in the top 'bin' of the indicator
cut offs whilst an upper cut of 20.0g/t was used for each of the MSSL
mineralization zones.
-- The mineral resource was estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council.
The in-situ resource estimate is within the defined mineralized
wireframes and is reported at a wide range of lower cut off grades. The
initial, comprehensive, phase of metallurgical test work is being
completed and will be used, along with the Preliminary Economic
Assessment, which has been initiated and is being managed by G Mining
Services Inc. of Montreal, to define the appropriate cut off grade for
the complete Timok Gold Project (Bigar Hill, Korkan and Kraku Pester).
The Korkan grade-tonnage report is summarised in the table below
(reported to the appropriate level of precision).
----------------------------------------------------------------------------
KORKAN
INFERRED RESOURCE ESTIMATE (1)
Combined Mineralized Zones
Local Multiple Indicator Kriging
5m x 5m x 5m Selective Mining Unit
----------------------------------------------------------------------------
Cut Off Grade Million Au Million
(Au g/t) Tonnes (g/t) Ounces (Au)
----------------------------------------------------------------------------
0.2 49.5 0.8 1.3
0.4 31.0 1.2 1.2
0.6 20.1 1.5 1.0
0.8 13.5 1.9 0.8
1.0 10.0 2.3 0.7
----------------------------------------------------------------------------
(1) See notes on page 1.
2. ADDITIONAL INFORMATION
Drilling and Sampling
-- Figure 1 shows the location of the Korkan deposit within the Timok Gold
Project, whilst Figure 2 displays the drilling carried out to date at
Korkan along with a gram-meter map of mineralization. Figure 3 shows
typical cross sections through the Korkan deposit, illustrating the
shallow dipping nature of gold mineralization.
-- Diamond drilling has been carried out such that drill holes are always
started using PQ core and then reduced to HQ triple tube (HQ3) once
competent rock has been intersected. The diamond drill core size is kept
as HQ or HQ3 for as long as possible. Drill core is carefully packed for
transport to the sample preparation facility in Bor.
-- Reverse circulation (RC") drilling is carried out with specialized
custom drill rigs, which include separate, very high capacity compressed
air boosters in order to ensure sampling is under dry conditions. 'Blow
backs' are routinely used for every meter of advance (all the material
within the drill stem for the relevant meter of advance is displaced
into the sample bag prior to advancing to the next meter). The cyclone
is cleaned thoroughly at every rod change and the hole is thoroughly
conditioned (completely dried if any moisture has entered the drill
hole) before drilling is re-initiated. If sampling cannot be carried out
under dry conditions, the drill hole is abandoned and is then re-entered
as a diamond core 'tail'. Each meter sample is weighed using electric
scales and the data is recorded using data loggers in order to compare
with the theoretical sample mass for the particular drill bit diameter
and the lithology being drilled.
-- The average core recovery is 98% and the average RC sample recovery is
88%, with an average one-meter RC sample bag weight of 36.5kg.
-- Drill hole collars were surveyed by differential GPS (DGPS) by Avala
surveyors (registered independent surveyors regularly audit Avala's
survey control and procedures). Two drill holes required surveying with
Total Station equipment as dense forest cover rendered the use of DGPS
impracticable.
-- The diamond drill holes were down hole surveyed, on average, every 35
meters using electronic survey equipment, whilst an average 37 metre
spacing was used for the down hole surveying of RC holes.
-- Korkan has been drilled on a nominal 80 meter by 80 meter grid spacing
with approximately 25% of the surface area of the Korkan deposit drilled
at 40 meters by 40 meters, on database 'close-off'. Further infill
drilling at Korkan has been re-started now that the Korkan first-pass
resource drilling program is complete.
-- Diamond 'twin' drilling of the RC drill holes will continue across the
target area at a nominal rate of 15% of total RC drilling.
-- RC and diamond core sampling has been carried out using Avala's detailed
protocols throughout the entire drilling program.
Density Measurements
-- Density measurements are routinely taken every three meters down hole
from diamond drill core. The bulk density of the core billets is
measured at the SGS managed laboratory at Bor using the industry
standard wax-seal immersion method. The table below summarises the large
number of density measurements for each rock type in the Korkan drill
hole data set that have been collected and measured to date.
------------------------------------------------------------------------
Mean Density
Lithology (tonnes/M3) Total
------------------------------------------------------------------------
Volcanics/Andesite 2.60 1,633
Marl 2.67 683
S1 sediment 2.64 2,951
S2 sediment 2.63 494
Limestone 2.68 3,493
Other (basement, karst etc) 2.68 289
Total 9,543
------------------------------------------------------------------------
Twin Drilling
-- Twin drilling has been routinely performed with some 10% of all RC holes
being twinned with diamond drilling.
-- At Korkan 18 DD 'twin holes' have been completed, for 2,952 metres, out
of a total of 29,481 RC metres.
-- The routine reverse circulation-diamond 'twin' drilling program
continues to confirm that the majority of mineralized intercepts and
hence the deposit style, is dominated by layer-parallel, lithology-
controlled gold mineralization and that there can be close spaced
variation in gold grade, as is typical for gold deposits.
Assaying
-- All Korkan, drilling has been routinely assayed for gold (Au), silver
(Ag) and sulphur (S). The number of samples in the Korkan resource
estimation database, at the time of the database 'close-off', is
summarized below. In a future resource update, including the 40 meter by
40 meter drilling that has been re-started, the resource model will be
updated for these additional elements.
-- The table below summarizes the primary and referee assaying that
comprises the Korkan resource estimation database, at the time of the
database 'close off' and handover to AMC, along with the assay methods
that have been used. Each drilled interval for the Timok Gold Project
will have a gold, silver and sulphur assay. When the 40 meter by 40
meter drilling has been completed and the full databases have been
'closed off' and validated, the revised resource estimates, planned for
Q1 2013, will incorporate all three elements.
----------------------------------------------------------------------------
Item Au Ag S
----------------------------------------------------------------------------
ASSAY METHOD 50g Fire assay/AAS Aqua regia/AAS Eltra furnace
PRIMARY ASSAYS 77,235 17,768 77,731
REFEREE GENALYSIS 939 788 1,188
REFEREE ALS
VANCOUVER 2,478 698 1,467
----------------------------------------------------------------------------
Variography
-- Detailed variography has been carried out for the 11 indicator cut offs
that have been used in the Local MIK grade estimation.
-- The table below summarises the modelled gold variography.
----------------------------------------------------------
Structure Structure Structure
Nugget 1 Sill 2 Sill 3 Sill
Item Value Value Value Value
----------------------------------------------------------
Andesite 0.03 0.03 0.02
MSSS (S1/S2) 0.13 0.17 0.06
MSSL1
(S1/LMST) 0.19 0.41 0.04 0.05
----------------------------------------------------------
MSSL2
(S1/LMST) 0.80 0.81 0.59
----------------------------------------------------------
----------------------------------------------------------------------------
Structure Structure Structure
1 Range 2 Range 3 Range Dip
Item (m) (m) (m) Dip Direction
X Y Z X Y Z X Y Z
----------------------------------------------------------------------------
Andesite 12 12 12 50 50 50 -30 N060E
MSSS (S1/S2) 20 25 20 90 120 100 -20 N230E
MSSL1
(S1/LMST) 35 35 20 80 70 60 120 120 120 -25 N170E
----------------------------------------------------------------------------
MSSL2
(S1/LMST) 60 40 10 70 110 45 -20 N070E
----------------------------------------------------------------------------
Resource and Grade Modelling
-- Detailed interpretation of the geological and grade data has resulted in
the modelling of 4 main zones of gold mineralization, which have been
termed MSVO (andesite), MSSS (straddling the boundary and including the
S1 and S2 sedimentary units) and MSSL (straddling the boundary and
including the S1 and limestone units, two zones). The interpreted
mineralized zones are in contact for much of the deposit.
-- One-meter composites were used to define lithological boundaries,
geological boundaries and the mineralized zone outlines. Three-meter
down hole composites were used for statistical analysis, variography and
grade estimation. The table below summarizes the number of 3 meter
composites within the various domains.
----------------------------------------------------------------
Item Number
----------------------------------------------------------------
Andesite Wireframe (MMVO) 169
MSSS Wireframe (S1/S2) 1,640
MSSL1 Wireframe (S1/S2) 5,393
MSSL2 Wireframe (S1/S2) 1,056
Background 17,950
----------------------------------------------------------------
-- The block model closely matches the volumes of the mineralized zone
wireframes as shown in the table below.
---------------------------------------------------------------------
Block Model
Wireframe Volume Volume (million cubic
Item (million cubic meters) meters)
---------------------------------------------------------------------
Andesite Wireframe
(MMVO) 1.3 1.3
MSSS Wireframe (S1/S2) 9.2 9.1
MSSL Wireframe
(S1/LMST) 46.3 45.6
---------------------------------------------------------------------
Grade-Tonnage Reporting
-- The Korkan resource model has been categorized as Inferred Resources
using the CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines. While the grade estimate has been classified as Inferred
Resource, Avala believes that higher confidence resources should be
defined once all the 40m x 40m infill drilling over the deposits is
incorporated into the future resource estimate. The current resource
estimate has 25% of the entire drilling area defined by 40m x 40m spaced
drilling that confirms the mineralization zone continuity noted in the
80m x 80m spaced drilling. The table below summarizes the grade-tonnage
data, subdivided by the three main interpreted mineralized zones.
-- In the table below the reported tonnes, grade and contained gold have
been rounded to the appropriate level of precision for the reporting of
an Inferred Resource, and the numbers may not correlate exactly due to
rounding.
-- A series of significant gold deposits has been defined at Korkan and
Bigar Hill and Avala considers the potential for further discoveries in
the Timok Gold Project to be very high.
-------------------------------------------------------------------------
KORKAN AND BIGAR HILL
INFERRED RESOURCE ESTIMATE(1)Subdivided By Mineralized Zone Domain
Local Multiple Indicator Kriging
5m x 5m x 5m Selective Mining Unit
-------------------------------------------------------------------------
Andesite S1/LMST S1/S2
MMVO MSSL MSSS TOTAL
Cut Off
Grade Au Au Au Au
(Au g/t) Mt(g/t) Moz Mt(g/t) Moz Mt(g/t) Moz Mt(g/t) Moz
-------------------------------------------------------------------------
KORKAN
-------------------------------------------------------------------------
0.2 1.5 0.4 0.0 41.6 0.9 1.2 6.4 0.6 0.1 49.5 0.8 1.3
0.4 0.7 0.6 0.0 27.3 1.2 1.0 2.9 1.0 0.1 31.0 1.2 1.2
0.6 0.2 0.7 0.0 18.3 1.5 0.9 1.6 1.3 0.1 20.1 1.5 1.0
0.8 0.0 0.9 0.0 12.5 1.9 0.8 1.0 1.8 0.0 13.5 1.9 0.8
1.0 9.4 2.3 0.7 0.6 2.3 0.0 10.0 2.3 0.7
-------------------------------------------------------------------------
BIGAR HILL
-------------------------------------------------------------------------
0.2 4.1 0.6 0.1 25.2 0.6 0.5 34.6 1.0 1.2 63.9 0.9 1.8
0.4 2.2 1.0 0.1 13.2 1.0 0.4 22.7 1.4 1.1 38.0 1.3 1.5
0.6 1.4 1.2 0.1 8.0 1.3 0.3 17.0 1.8 1.0 26.4 1.6 1.4
0.8 1.0 1.4 0.0 5.5 1.6 0.3 14.0 2.0 0.9 20.5 1.9 1.2
1.0 0.7 1.7 0.0 4.0 1.8 0.2 11.9 2.2 0.8 16.5 2.1 1.1
-------------------------------------------------------------------------
TOTAL
-------------------------------------------------------------------------
0.2 5.6 0.6 0.1 66.7 0.8 1.7 41.0 1.0 1.3113.4 0.8 3.1
0.4 2.9 0.9 0.1 40.5 1.1 1.5 25.6 1.4 1.1 69.0 1.2 2.7
0.6 1.6 1.2 0.1 26.2 1.5 1.2 18.7 1.7 1.0 46.5 1.6 2.3
0.8 1.0 1.4 0.0 17.9 1.8 1.1 15.0 2.0 0.9 34.0 1.9 2.0
1.0 0.7 1.7 0.0 13.3 2.1 0.9 12.5 2.2 0.9 26.5 2.2 1.8
-------------------------------------------------------------------------
(1) See notes on page 2.
Please see the following link to view all Korkan-Bigar and Kraku Pestar drill
holes located spatially in three dimensions:
http://www.corebox.net/properties/timok-gold-project
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. 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 meter sampling interval has been used where
possible for the Timok Gold Project diamond drilling program. Half core is
routinely submitted to the laboratory for analysis. Reverse circulation drill
samples have been prepared at the laboratory facility at Bor and assayed at the
laboratory at Bor. A one meter sampling interval has been used for the Timok
Gold Project reverse circulation 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 are 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 is routinely entered into geology and structural geology spread sheets
using Field Marshal software for subsequent inclusion in an acQuire database and
validation.
4. QUALIFIED PERSONS
The Korkan resource estimate was undertaken by independent qualified person
Chris Arnold MAusIMM CP(Geo) of AMC. Mr. Arnold of AMC has reviewed and approved
the contents of this press release insofar as the Korkan mineral resource
estimate is concerned.
AMC is completing a technical report for the mineral resource estimate in
compliance with NI 43-101 to be filed on SEDAR within 45 days of this press
release.
The other technical information contained in this press release was prepared and
approved by Dr Julian F. H. Barnes, FAusIMM, MAIG, a director of the Company and
special consultant. Dr. Barnes is a 'qualified person' within the meaning of
that term under NI 43-101.
About Avala Resources Ltd.: Avala Resources is a mineral exploration company
focused on the exploration and development of the Timok Gold Project in Eastern
Serbia. The Timok Gold Project comprises several targets, including Korkan,
Korkan, and Kraku Pestar. Avala controls 100% of this newly identified
sediment-hosted gold belt which totals approximately 250 square kilometers. The
common shares of Avala trade on the TSX Venture Exchange under the symbol AVZ.
Avala had approximately $7.7 million in its treasury at September 30, 2012.
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).
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
information can be identified by the use of forward-looking terminology such as
"anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast",
"project", "budget", "schedule", "may", "will", "could", "might", "should" or
variations of such words or similar words or expressions. Forward-looking
information is based on reasonable assumptions that have been made by the
Company as at the date of the information and is subject to known and unknown
risks, uncertainties, and other factors that may cause actual results or events
to differ materially from those anticipated in the forward-looking information.
"Inferred Resources" have a great amount of uncertainty as to their existence,
and economic and legal feasibility. Investors are cautioned not to assume that
all or any part of an Inferred Mineral Resource reported in this news release
will ever be upgraded to a higher category or to reserves.
Forward looking information in this news release includes information with
respect to the mineral resource estimate and its potential expansion and upgrade
to a higher level of confidence, the Company's plans to complete resource
estimates on the Kraku Pestar project area and to complete a preliminary
economic assessment, the timing and location of future work programs, the
results and interpretation of studies and exploration activities, the nature of
the mineralization of the project, the potential size of the sediment-hosted
gold system, and the possibility that the Timok Gold Project will prove to be
economic.
Although the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be factors that cause results to be other
than as anticipated, estimated or intended. There can be no assurance that the
forward looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information contained herein, except in accordance with
applicable securities laws.
Figure 1: Location of the Korkan-Bigar trend and the Kraku Pester target area
within the greater sediment-hosted gold belt, as defined in this image by mapped
'target stratigraphy' (yellow) and anomalous gold soil geochemistry within the
Timok Gold Project. The total metal contour plots for Korkan, Bigar Hill and
Kraku Pester have been superimposed on the sediment-hosted gold belt, as defined
to date by drilling.
http://file.marketwire.com/release/avzfig1.pdf
Figure 2: Final Gram-meter (intervals greater than 0.4g/t Au x thickness) plot
following the completion of initial Korkan resource definition drilling program,
total metal contour plot of all drilling to date superimposed on topography. The
section lines A-A' and B-B' relates to Figure 3.
http://file.marketwire.com/release/avzfig2.pdf
Figure 3: Cross-sections through the Korkan target area showing detailed
stratigraphy and gold mineralized drill intersections to date. The A-A' section
is looking east and the B-B' section is looking northwest.
http://file.marketwire.com/release/avzfig3.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Avala Resources Ltd.
James Crombie
President and Chief Executive Officer
+1.450.640.0810
info@avalaresources.com
www.avalaresources.com
(TSXV:MIK)
Historical Stock Chart
From May 2024 to Jun 2024
(TSXV:MIK)
Historical Stock Chart
From Jun 2023 to Jun 2024
