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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37450)	5/21/2009 4:42:23 PM
From: LoneClone	Read Replies (1) \| Respond to of 193711

Avnel Gold Announces Flooding of the 180 Level Pump Station at the Kalana Mine Thu May 21, 8:59 AM ca.news.finance.yahoo.com /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ ST. PETER PORT, Guernsey, May 21 /CNW Telbec/ - Avnel Gold Mining Limited ("Avnel" or the "Company") (TSX: AVK.TO) regrets to report that on the night shift of 20/21 May 2009 there was an electro mechanical problem with the pump sets at the 180 level pump station at the Kalana mine which resulted in that pump station having flooded. The 180 level is the Kalana mine's principal production level at present and in consequence of the flooding production has ceased for the time being. Endeavours are currently in hand to prevent the mine flooding above the 150 level. The 150 level does not have a pump station, with the next pump station being at the 100 level. Urgent measures are being taken to source submersible pumps for the de-watering of the 180 level. Submersible pumps are immediately available from South Africa and there is a possibility of there being suitable submersible pumps in Mali. The current time estimate for the de-watering and rehabilitation of the 180 level pump station is three weeks from delivery of submersible pumps to the Kalana mine site. A further announcement will be made in due course. About the Company: Avnel is a gold mining producing company operating the Kalana gold mine and is engaged in the exploration of the Kalana Exploitation Permit and Fougadian exploration permit. Avnel's principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the holder of a 30 year exploitation permit encompassing 387.4 sq. km. around and to the south of the operating Kalana gold mine in South West Mali. Avnel also holds the Fougadian exploration permit covering an area of 150 sq. km. which lies to the South of the main Kalana exploitation permit. Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts are forward-looking statements. Although Avnel believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Avnel does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. Contacts Howard Miller Chief Executive Officer +44 207 589 9082 Fax +44 207 589 8507 howard@hbmiller.co.uk www.avnelgold.com Renmark Financial Communications Inc.: Barry Mire bmire@renmarkfinancial.com Henri Perron hperron@renmarkfinancial.com Montreal: (514) 939-3989 Fax: (514) 939-3717 Toronto: (416) 644-2020 Fax: (416) 644-2021 www.renmarkfinancial.com