TORONTO, ONTARIO -- (Marketwire) -- 02/26/09 -- Avion Resources Corp. (TSX VENTURE: AVR) ("Avion" or the "Company") is pleased to announce that an updated Segala Mine plan demonstrates reduced costs and increased savings and results in a projected more profitable four year mine plan for the Company's Tabakoto project in Mali, West Africa. Measured and Indicated mineral resources remain the same as per the recent 43-101 report, however, the plan has been further studied and optimized to reduce operating costs and increase revenue and net cash flow as compared to the conservative plan presented in the January, 2009 scoping study.
In addition, Avion is pleased to announce that it is on track to meet its targeted 2009 production of 66,000 ounces of gold at its Tabakoto/Segala mine and mill complex. Highlights of the updated mine plan include:
- Redesign of the Segala open pits to reduce waste stripping ratios, and increase the resource tonnage mined. Different ramp designs and wall configurations have been engineered. The open pit production schedule has been refined with detailed pushback designs.
- Reduction in the amount of lower grade stockpile resource scheduled to the process plant.
- Lower open pit mining contracted operating costs and equipment mobilization costs.
- Reduction in explosives costs.
- USD1.0 million savings in start-up capital expenditures.
Underground mining as contemplated in the recent 43-101 report remains essentially the same with the exception of a slight reduction in mineral resources due to increased tonnage mined by open pit. Two consulting firms have been hired to further study underground mining and geotechnical aspects at Segala. A new resource model, which will focus on developing the underground mining potential, is being developed for the Tabakoto deposit. Exploration drilling at Tabakoto has intersected numerous gold mineralized zones that display sufficient grades and widths to potentially support an underground mining operation. Avion is optimistic that this opportunity will provide future growth for the company.
A table that compares key aspects of the updated plan completed in February, 2009, versus the plan in the NI43-101 report dated January, 2009, is presented below. Both plans are based on a gold price of USD750/oz.
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2009 2010 2011 2012 TOTAL
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Recovered Oz oz Jan. Plan 66,000 72,000 96,000 86,000 320,000
Au Feb. Plan 66,000 79,000 87,000 101,000 333,000
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Operating Cost USD/oz Jan.
