Avion Gold options 75% of Tabakoto from Great Quest
Avion Gold Corp (C:AVR)
Shares Issued 220,512,693
Last Close 10/30/2009 $0.30
Monday November 02 2009 - News Release
Also Great Quest Metals Ltd (C:GQ) News Release
Mr. John Begeman of Avion reports
AVION ACQUIRES OPTION TO EARN 75% INTEREST IN AN INFERRED GOLD RESOURCE OF 324,000 OUNCES
Avion Gold Corp. and Great Quest Metals Ltd. have executed a definitive agreement in relation to their previously announced letter of intent (see Avion news in Stockwatch dated April 21, 2009) to acquire 75 per cent of Great Quest's interest in three mineral concessions located adjacent to the south and west sides of the Tabakoto property. Great Quest previously spent approximately US$3.0 million in expenditures to explore the properties.
The Great Quest properties comprise the Kenieba (Sansanto), Kenieba Est and Comifa concessions totaling approximately 32 km2, which increases Avion's local property package by approximately 30 per cent. The Kenieba concession hosts a 43-101 compliant inferred resource in the Djambaye 2 gold zone of 324,000 ounces (Carl Verley (P. Geo.), January 28, 2008 Great Quest news release). This equates to 2,574,000 tonnes grading 3.92 grams per tonne gold.
Commenting on the proposed acquisition, Avion's President and CEO, Mr. John Begeman stated, "As stated before this disciplined acquisition represents an exciting opportunity for Avion to acquire nearby prospective gold projects that could provide additional feed for the Tabakoto mill and support Avion's stated growth and West African consolidation goals."
To acquire 75 per cent of Great Quest's interest in the three mining concessions Avion is required to make cash payments of CDN$ 2,360,000 and work commitments of CDN$ 1,890,000 both over five years. On signing of the Option Agreement Avion made a cash payment of CDN$ 350,000 and is required to complete at least CDN$ 150,000 of exploration expenditures in year 1. Great Quest's interest in the properties varies from 95 per cent to 100 per cent subject to a carried interest to the Government of Mali ranging between 10 per cent and 20 per cent.
"Avion plans to build upon Great Quest's work that has defined a series of northerly trending intrusion-hosted gold zones and gold mineralized, sediment- and intrusion-hosted cross-structures that are similar in character to those on the Avion concessions. A program of soil sampling and magnetic surveys will be carried out in early 2010 to provide a large scale property view prior to the selection of new and follow-up drill targets." comments Don Dudek, Vice President Exploration for Avion.
Don Dudek, P.Geo., the Senior Vice President, Exploration of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release.
