LAK Ranch Oil Project In Operation


                LAK Ranch Oil Project In Operation

BELLINGHAM, Wash., April 13, 2004 (PRIMEZONE) -- Avalon Gold
Corporation (OTCBB:AVGC) reports an update relating to its 0.70% (.70
of 1%) proportionate, reducible, Gross Overriding Royalty interest in
the LAK Ranch Oil Project located in Newcastle, Wyoming. This royalty
interest equates to $0.21 per barrel based on a price of $30.00 per
barrel for Avalon. Current estimates are that between 30 percent and 70
percent of the fields 100 million barrels of oil in place may be
recovered using the thermal recovery techniques planned for the
project. At current market prices the oil in place would generate
between $USD840 million and $USD2 billion in gross revenue. 
Ivanhoe Energy (USA) Inc. (Nasdaq:IVAN) who is the operator of the LAK
Ranch Project has begun operations which include the installation and
testing of the water disposal system (hydrocylones, walnut shell
filter, piping etc.). Piping modifications, tank cleanout and lining
out the electrical system are also being completed. A contractor has
been retained by Ivanhoe to conduct a 3D seismic survey. 
Ivanhoe's engineering staff is evaluating the usefulness of a real-time
permanent tilt meter system to monitor the steam "chest" and return
data with respect to natural fracturing and faulting; in addition to
providing valuable engineering data, this leading-edge technology would
act as an early warning system to prevent surface eruptions during
steaming. 
The plan is to steam and produce an existing horizontal well and drill
five additional steam injection wells to provide continuous steam to
the reservoir, which should allow more oil to be produced from the
horizontal well. A hearing regarding the commencement of steaming is
scheduled as required by the Wyoming Oil and Gas Conservative
Commission in April. 
Avalon Gold Corporation is an aggressive gold mining company focused on
finding, exploring and developing exceptional gold properties
internationally. 


 /s/ Robert Waters
 ----------------------
 Robert Waters, President

For further information contact Joseph Beyrouti at: 1-888-488-6882
Visit our web site at www.avalongold.ws 
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained herein which are not historical
fact are forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from
those expressed in the forward-looking statements, including, but not
limited to, certain delays in testing and evaluation of products and
other risks detailed from time to time in Avalon's filings with the
Securities & Exchange Commission. 


CONTACT:  Avalon Gold Corporation
          Joseph Beyrouti
          (888) 488-6882
          www.avalongold.ws

 Provider ID: 00055670
-0- Apr/13/2004 12:30 GMT
 
 
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