If you believe this is another Carlin trend, then think eventually 25-100 mm ounces AU. last call on this one:
Avala Resources Makes Significant New Discovery: Intersects 52 Meters of 4.30g/t Gold From a Depth of 17 Meters at Korkan inSerbiaNE
CCNMatthews
11:18 AM (GMT-05:00) Eastern Time (US & Canada) Nov 10, 2010
WS RELEASE TRANSMITTED BY Marketwire
FOR: AVALA RESOURCES LTD.
TSX VENTURE SYMBOL: AVZ
NOVEMBER 10, 2010
Avala Resources Makes Significant New Discovery: Intersects 52
Meters of 4.30g/t Gold From a Depth of 17 Meters at Korkan in
Serbia
LONGUEUIL, QUEBEC--(Marketwire - Nov. 10, 2010) - Avala Resources Ltd. (TSX
VENTURE:AVZ) (the "Company" or "Avala") is pleased to present an update on
drill and trench results from the Korkan-Bigar target area, part of the
sediment hosted gold belt within the Cretaceous magmatic arc bordering the
Timok Magmatic Complex ("TMC") in Eastern Serbia.
/T/
. HIGHLIGHTS
-- Initial drilling on the Korkan target area has confirmed strong gold
mineralization within the target stratigraphy, a sequence of intensely
altered and decarbonatized conglomerates and sandstones.
-- The Korkan target area, as currently defined by gold in soil surface
geochemistry, is approximately 4.5 km in length and up to 1 km wide and
is underlain by Jurassic limestone, conglomerates and sandstones with
varying carbonate content.
-- Drilling of the Korkan target area returned the following wide, high-
grade gold intercept (1g/t cut-off grade):
-- 52m @ 4.30g/t (from 17m)
-- Including: 18m @ 9.05g/t (from 48m)
-- The initial drill hole follows up and confirms the 'discovery' trenches
(JASTR009, KOTR033), excavated in 2008 and 2010, which returned the
following intersections and have been previously reported:
-- 140m @ 2.67g/t
-- 59m @ 2.50g/t
-- 58m @ 2.61g/t
-- Additional trench sampling on the Bigar target area during 2010 has
returned the following wide, low-moderate grade gold intercepts (0.4g/t
cut-off grade):
-- 32m @ 1.08g/t
-- 22m @ 1.27g/t
-- 54m @ 0.47g/t
-- 32m @ 0.66g/t
-- Avala controls 100% of the newly identified sediment hosted gold belt
which totals approximately 250 sq km.
-- Gold deposits in the Republic of Serbia are subject to a 3% NSR.
-- Avala intends to systematically drill test all currently defined
priority target areas. See Figures 1-3 and Tables 1 & 2 at the end of
this release for additional detail.
2. GEOLOGY AND MINERALIZATION STYLE
/T/
Sediment hosted gold, located along the western margin of the Timok Magmatic
Complex, represents a previously unrecognized style of gold mineralization
within the Timok region.
Geological mapping of the sediment hosted gold belt suggests mineralization
is associated with a complex lithological and structural sequence of
limestone/marble, calc-silicate hornfels, biotite-magnetite hornfels,
monzonite (pre-ore Potoj Cuka stock), diorite dykes, andesitic volcanic and
volcaniclastic rocks, schists, conglomerates, sandstones and tuffaceous
sedimentary rocks.
The belt is extensively faulted and intruded by numerous diorite and
monzonite complexes with associated thermal metamorphic aureoles, indicating
the potential for sufficient permeability and rheologic contrast for fluid
movement and hydrothermal deposition.
Detailed multi-element analysis of soil samples has indicated that the
anomalous 'pathfinder' geochemistry shows very similar characteristics to
the North Carlin Trend style sediment hosted gold mineralisation in Nevada,
USA; namely a strong Au-As-Sb-Tl-Hg pathfinder association. Mineralogical
studies on drill core have confirmed other key aspects of this style.
The Korkan target area is underlain by massive Jurassic limestone, overlain
by a polymict conglomerate and sandstone sequence with a carbonate matrix
component which is the host to the strongly mineralized interval intersected
by the initial drill hole. The polymict conglomerate is overlain by
calcareous sandstone which does not contain gold. Avala now believes that
this overlying calcareous sandstone may represent a later mineralizing
event, which included hydrothermal pyrite deposition without gold and now
effectively represents a 'cover sequence'. The polymict conglomerate and
sandstone unit appears to dip moderately (approx.30 degrees ) towards the
south-south west under the 'cover sequence' and towards the Bigar target
area; further drilling will confirm the orientation of the target
stratigraphy.
The Korkan target area represents possible stratabound sediment hosted gold
mineralization within a favourable sedimentary unit; the polymict
conglomerate and sandstone.
Figure 1 shows the Korkan-Bigar target area within the larger sediment
hosted gold belt together with the locations of the newly recognized 'cover
sequence'. There may be additional windows through the 'cover sequence',
however historic mapping was unable to differentiate between the various
sedimentary units due to a distinct lack of surface exposure.
/T/
. DRILLING AT KORKAN
-- Initial diamond drilling (KODD001) on the Korkan target area was
designed to test the down dip continuity of the previously reported
surface trench (KOTR033).
-- Figure 2 displays an interpretive cross section through the Korkan
target area. Strong gold mineralization has been intercepted in variably
decarbonatized clastic sediments. Significant intercepts from the Korkan
target area are detailed in Table 1 at a range of gold cut-off grades
and include the following (1g/t Au cut-off grade):
-- KODD001:
-- 52m @ 4.30g/t (from 17m)
-- Including 18m @ 9.05g/t (from 48m)
-- A brief description of the initial drill hole is outlined here:
-- 0m-17m: 'cover sequence' which is represented by calcareous
sandstones with zones of soft-sediment deformation. The interval is
oxidized down to 7m after which it contains disseminated, sooty,
fine grained pyrite but does not contain gold.
-- 17m-36m: polymictic conglomerate dominated by limestone clasts but
also containing quartz pebble, marl and sandstone clasts. The
interval contains sooty, fine grained pyrite within the sedimentary
matrix and has a gold tenor of approximately 1g/t.
-- 36m-48m: coarse calcareous sandstone with lesser conglomerate
layers. The interval is moderately decarbonatized, sooty, fine
grained pyrite dominates within the sedimentary matrix and has a
gold tenor of approximately 3g/t.
-- 48m-66m: polymict conglomerate with occasional graded sandstone
intervals. The interval is strongly decarbonatized with intense,
sooty, fine grained pyrite matrix infill and has a gold tenor of
approximately 9g/t.
-- 66m-End of Hole: erosional contact with the underlying massive
limestone which contains minor karst features in the upper horizon
which is associated with low tenor gold mineralization.
-- The current drilling program is targeting stratabound gold
mineralisation in receptive sedimentary units within the target
stratigraphy.
4. TRENCHING AT BIGAR
-- The recently completed trench program at Bigar consisted of 2,352 meters
for 1,151 samples (2 meter standard sample interval) and was designed to
follow up previous trench sample assay results obtained during the
initial wide spaced (nominal 800m spacing) trench program and to help
refine geological contact relationships due to the poor exposure in the
area.
-- Table 2 details trench intercepts at a range of cut-off grades for the
Bigar target area.
-- Figure 3 displays the location of trench sampling to date and shows the
recently completed program together with the geology in the Bigar target
area.
-- Highlights from the Bigar target area include the following trench
intercepts (0.4g/t Au cut-off grade):
-- BITR049: 32m @ 1.08g/t
-- BITR053: 22m @ 1.27g/t
-- BITR057: 54m @ 0.47g/t
-- BITR058: 32m @ 0.66g/t
-- Trench results from the 2010 program have returned gold mineralization
from sandstones, conglomerates, limestones and andesitic tuffs and
agglomerates.
-- In particular, trenches BITR057 & BITR058 have returned wide, low grade
gold intervals from a sandstone-dominated sedimentary unit which is
believed by Avala to represent a continuation of the 'target
stratigraphy' southwards from the Korkan target area which was
intersected in diamond drill hole KODD001.
5. DISCUSSION
-- A major sediment hosted gold belt bordering the western boundary of the
Timok Magmatic Complex identified by soil and trench samples extends
over 20 km along strike and is approximately 8 km wide.
-- The geology, geochemistry and available drill intersections suggest a
strong similarity to the style of gold mineralization typified by the
North Carlin Trend, Nevada, USA.
-- At Korkan, initial diamond drilling has outlined significant gold
mineralization associated with polymict conglomerate and sandstone which
have been variably decarbonatized and mineralized with sooty, fine
grained pyrite which contains significant gold values. The outcropping
area of gold mineralization is a small (170 meter x 120 meter) erosional
window into the target stratigraphy.
-- The recognition that the Korkan and Bigar target areas are separated by
a 'cover sequence', which appears to be post-mineral has significant
implications for the gold potential of the sediment hosted gold belt.
-- Drill testing of the Korkan stratabound sediment hosted gold target area
will continue with wide spaced (nominal 160 meter x 160 meter) diamond
drill holes to allow Avala to effectively scale the potential size of
the sediment hosted gold system in the Korkan-Bigar target area.
-- Trenching programs continue on multiple target areas within the sediment
hosted gold belt in order to assist in defining the extents of the
anomalous gold mineralization and to further define priority target
areas to be drilled as soon as the results of the current trench
programs are received and interpreted.
-- Further geophysical modelling along with detailed geological mapping,
focusing on stratigraphic relationships, together with a detailed
structural analysis of the sediment hosted gold belt is underway.
6. SAMPLING AND ANALYSIS
/T/
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. Trench samples were prepared at the SGS managed
laboratory facility at Bor, Eastern Serbia and the samples have been assayed
at the SGS managed laboratory at Chelopech in Bulgaria or the SGS managed
laboratory facility at Bor, Eastern Serbia. Diamond drill core has been
prepared at the SGS managed laboratory facility at Bor, Eastern Serbia and
assayed at either the SGS managed laboratory at Chelopech in Bulgaria or the
SGS managed assay laboratory at Bor, Eastern Serbia. A one metre sampling
interval has been used where possible for the Sediment Hosted Gold Belt
diamond drilling program. Following Avala standard procedures, a full suite
of field and laboratory duplicates and replicates along with internationally
accredited standards 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 were 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 was routinely entered into
geology and structural geology spread sheets using Field Marshal software
for subsequent entry to an acQuire database and validation.
Dr. Julian F. H. Barnes, a qualified person under National Instrument
43-101, a Director and the Company's Special Consultant, has supervised the
preparation of the technical data in this press release.
Previously released data refers to data included in the "Potoj Cuka Gold
Project, Serbia National Instrument 43-101 Technical Report" by Paul Mazzoni
dated March 10, 2010 (the "Technical Report"), filed on SEDAR at
www.sedar.com. Further information in respect of results, investigations,
interpretations, quality assurance and quality control measures, along with
geology, mineralogy, sampling, and analytical procedures is included in the
Technical Report."
About Avala Resources Ltd.: Avala is a recently-formed company focused on
the exploration and development of the Potoj Cuka sediment hosted gold
project and the Timok gold-copper project in Serbia. The common shares of
Avala trade on the TSX Venture Exchange under the symbol AVZ.
Avala is well-capitalized, with approximately $17.9 million in its treasury
at September 30, 2010, which it plans to use for the exploration and
development of its mineral projects in Serbia. Avala's issued and
outstanding share capital totals 146,284,237 common shares, of which
approximately 50.2% is held by Dundee Precious Metals Inc. (TSX: DPM).
This press release contains forward-looking information. Although the
Company believes in light of the experience of its officers and directors,
current conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in this
forward-looking information are reasonable, undue reliance should not be
placed on them because the Company can give no assurance that they will
prove to be correct. Forward looking information in this news release
includes statements regarding the nature of the mineralization of the
project, the results of the exploration activities and interpretation of
such results, and timing and location of future work programs.
Forward-looking information involves known and unknown risks, uncertainties,
assumptions and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking
information. The forward-looking statements contained in this press release
are made as of the date hereof and the Company undertakes no obligations to
update publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise, unless
so required by applicable securities laws.
Figures 1, 2, 3 and Tables 1, 2 are available at the following link:
media3.marketwire.com
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Avala Resources Ltd.
James Crombie,
President and Chief Executive Officer
450-640-0810
jcrombie@avalaresources.com
www.avalaresources.com |
