EMERGING JUNIOR GOLD EXPLORATION AND PRODUCER
ABOUT THE COMPANY
The Kalana Mine and Permit was historically owned by a Malian State company (Sogemork) with exploration and mine construction supported by Russian financial and technical aid. The mine operated for a few years until it was put on care and maintenance on the break up of the Soviet Union in 1991. The Kalana Mine and Permit was privatised by international tender and awarded to Avnel in December 2002, and in 2005 a NI 43-101 compliant technical report by Snowdens (“The Snowden Technical Report”) classified 1,020,000 oz gold as a measured and indicated resource and 249,000 oz gold as an inferred resource. Gold hosted within shallow dipping veins comprised 80% of the mineral resource estimates. The tender conditions required the small Russian built gravity recovery mine be put into immediate production, precluding a re-evaluation of the deposit for bulk mineable potential at that time. The Mine, which continues to operate, is located in the northwest corner of the Permit and is accessible to a depth of 180 metres below surface. The underground access is extremely valuable in the exploration program to test the bulk mineable potential which was undertaken by IAMGOLD.
Kalana Permit Exploration
Avnel has received an extensive geological database after the completion of 127,000 metres of drill holes at the Kalana Mine that has added value to the future development of a bulk mineable deposit. At the Kalanako prospect, IAMGOLD completed 27,000 metres of drilling. IAMGOLD reported that 14 gold anomaly targets were identified on the Kalana Permit that are worthy of additional exploration.
Avnel has been working with its consultants Roscoe Postle Associates (“RPA”) and Snowden in analysing the database arising from the exploration program conducted by IAMGOLD. The final drill assay results (15,340 assays or 12% of the total assays) and the geological logging were received from IAMGOLD during the first quarter. RPA updated the data base with the new data and reviewed their geological model. RPA have recommended that higher grade assays from the 2010-2012 drill program might benefit from re-assaying by a more exhaustive assay method. RPA recommend that a screens metallic assay on a 1kg sample be implemented.