LONGUEUIL, QUEBEC — (Marketwired) — 10/16/13 — Avala Resources Ltd. (TSX VENTURE: AVZ) (the „Company“ or „Avala“) is pleased to announce updated Canadian National Instrument 43-101 („NI 43-101“) resource estimates for the Bigar Hill and Korkan deposits, part of its Timok Gold Project, a recent gold discovery in an emerging sediment-hosted gold belt located in Eastern Serbia.
In 2012 and early 2013, the Company announced initial resource estimates for the Bigar Hill, Korkan and Kraku Pester areas. The combined mineral resources at a cut-off grade of 0.6 Au g/t included 0.27 million ounces in the indicated category (6.32 million tonnes at 1.3 Au g/t) and 2.4 million ounces in the inferred category (48.7 million tonnes at 1.5 Au g/t).
The main objective of the Company-s drilling since the announcement of the initial resource estimates was to convert inferred resources to indicated category. This was successfully done based on 75,724 meters of infill drilling, A notional infill drill spacing of 40 meters by 40 meters was used for the drilling program.
Based on a 0.6g/t gold cut off, the Timok Gold Project contains in situ resources of 46.3 million tonnes grading an average of 1.56 g/t gold in the indicated resource category for 2,318,000 ounces of gold and 8.7 million tonnes grading an average of 1.3 g/t gold in the inferred resource category for 360,000 ounces of gold.
As a result of the infill drilling 94% of the Bigar Hill resources are now classified as indicated resources, along with 75% of Korkan and 74% of Kraku Pester.
A summary of the mineral resource estimates using various cut offs is presented below:
(1) See notes under the table above.
It should be noted that the lower, eastern sector of Korkan, termed Korkan East, has been excluded from the resource estimates. Korkan East, in part, comprises a polymetallic style of mineralization, containing elevated levels of gold, silver, lead, zinc and arsenic. All drill holes within the Korkan East volume have been re-assayed for silver, lead, zinc, arsenic and sulphur and the sector will be the subject of a separate resource estimate, currently being prepared by AMC. A press release detailing drilling results from the Korkan East sector is in preparation. Initial phases of metallurgical testwork on Korkan East have also been carried out.
The Bigar Hill component of the combined resource estimate includes a contribution for a newly discovered, small fault-bounded block, termed Bigar North West, which is located approximately 500 meters from the northern boundary of the Bigar Hill mineralization and which has been classified as an inferred resource.
Introduction
Drilling and Sampling
Density Measurements
Resource estimation
Metallurgical Testwork
Please see the following link to view all Korkan, Bigar Hill and Kraku Pester drill holes located spatially in three dimensions:
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.
The Bigar Hill and Korkan updated resource estimates were undertaken by independent qualified person Chris Arnold MAusIMM CP(Geo) of AMC. Mr. Arnold has reviewed and approved the contents of this press release insofar as mineral resource estimates are 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.
Figures 1 to 5 are available at this address: .
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 the Korkan, Bigar Hill and Kraku Pester deposits. Avala controls 100% of this recently 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 $4.5 million in its treasury at September 30, 2013. Avala-s issued and outstanding share capital totals 254,492,223 common shares, of which approximately 53.1% 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 „believe“, „plan“, „expect“, „intend“, „estimate“, „project“, „schedule“, „may“, „will“, „could“, „might“, „should“ or variations of such words or similar words or expressions. Forward looking information in this press release includes information about mineral resource estimates, the timing of announcement of results of additional drilling and metallurgical testwork, 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, and the potential for further discoveries. Since forward-looking information are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for gold; legislative, environmental and other regulatory, political and competitive developments; operational difficulties encountered in connection with the activities of the Company; the Company-s financial condition, and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company-s forward-looking information. These and other factors made in public disclosures and filings by the Company should be considered carefully and readers should not place undue reliance on the Company-s forward-looking information. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. „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. U.S. persons are advised that while mineral resources are recognized under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.
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 +1.450.640.0810
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