Avala Resources Announces Initial Metallurgical Testwork Results for
the Timok Gold Project, Serbia
LONGUEUIL, QUEBEC -- (Marketwire) -- 11/13/12 -- Avala Resources Ltd.
(TSX VENTURE:AVZ) (the "Company" or "Avala") is pleased to announce
an initial summary of ongoing metallurgical testwork on the Bigar
Hill, Korkan and Kraku Pester deposits, which form part of the Timok
Gold Project (TGP), an emerging sediment-hosted gold belt located in
-- Testwork shows that a significant proportion of the TGP mineralization,
including the primary material in all three deposits, is free milling,
with an average CIL recovery of 61% for the Korkan, Bigar Hill and Kraku
-- Bigar Hill oxidized material returns 95% CIL recovery.
-- A conceptual flowsheet involving flotation, pressure oxidation followed
by intense leaching of the POX residue, and CIL leaching of the
flotation tailings has achieved 77% recovery and overall gold extraction
can be improved significantly with optimization of the flotation
process, with a target recovery in excess of 80%.
To date, some 315kg of quarter PQ and HQ core, representing 218
meters of drill intersection, have been collected from the Korkan,
Bigar Hill and Kraku Pester deposits. Metallurgical samples have been
carefully chosen to be representative of the proportion of different
lithologies, oxidation state, gold and sulphur grade ranges.
In addition, over 11,800 five-meter mineralized composites have been
collected from the three deposits, using the Avala sample pulp
library, for a major variability sampling program, to be completed in
Q1 2013. The mineralized composites, collected using a notional
0.1g/t cut off grade, will be tested using a bottle roll cyanidation
extraction followed by duplicate residue assays, in order to map the
inherent 'in situ' recovery, based on a particle size of p80 75
microns, in three dimensions as part of the development of a
comprehensive geometallurgical model.
Metallurgical testwork has been designed and carried out by SGS
Mineral Services UK in Cornwall, UK and SGS Lakefield (SGS), and by
Resource Development Inc (RDI) of Denver, Colorado.
Complete details of testwork carried out and the generation of the
ptual flowsheets are given in Appendix 1.
Based on the results of the work to date, the conceptual flowsheet
comprises grinding, flotation, pressure oxidation (POX) of the
flotation concentrate, followed by intensive cyanidation of the POX
residue, along with carbon-in-leach (CIL) of the flotation tailings.
A diagram summarizing the conceptual flowsheet is available at the
following address: http://media3.marketwire.com/docs/avz11113.jpg
Overall gold extraction using the conceptual flowsheet can be
projected to be at least 80% as the various component parameters are
optimized. Gold extraction of POX material ranged from 87% to 93%
with leaching of the flotation tailings returning 50% to 67%
recoveries, for overall gold recoveries of 68% to 77%. Overall gold
extraction can be improved significantly by optimization of the
flotation process. Further testwork to optimize the flowsheet and
test alternative methods are planned for 2013.
PLANNED ADDITIONAL METALLURGICAL TESTWORK
An extensive program of additional metallurgical testwork is planned
during 2013. Planned activities include the following:
-- Bottle roll analysis and residue assaying of the +11,800 five meter
-- Additional pulp resampling to expand the bottle roll composite database.
-- Development of 3D geometallurgical models of Bigar Hill, Korkan and
-- Extensive variability sampling and metallurgical testwork.
-- Flotation parameter optimization.
-- Determination of the optimal oxidation process, including bacterial
-- Additional studies on optimizing leaching of the flotation tailings and
-- Additional mineralogical studies.
-- Further refinement of the optimal metallurgical flowsheet.
-- Additional comminution studies, including separation of barren
Commenting on the results of the metallurgical testwork, James
Crombie, President and CEO of Avala said, "We are extremely pleased
with the results of the testwork so far. Further work to optimize
this process and additional work on alternative methods such as
bacterial leach should further improve the overall recoveries."
The metallurgical testwork has been managed and reviewed by
independent qualified person Dr. Deepak Malhotra SME of Resource
Development Inc. Dr. Malhotra of RDI has reviewed and approved the
contents of this press release.
The other technical information contained in this press release was
prepared and approved by Dr. Julian F. H. Barnes, FAusIMM, MAIG, a
director of the Company and special consultant. Dr. Barnes is a
'qualified person' within the meaning of that term under NI 43-101.
An updated technical report in compliance with NI 43-101 is being
compiled and will be filed on SEDAR within 45 days of this press
About Avala Resources Ltd.: Avala Resources is a mineral exploration
company focused on the exploration and development of the Timok Gold
Project in Eastern Serbia. The Timok Gold Project comprises several
targets, including Bigar Hill, Korkan, and Kraku Pestar. Avala
controls 100% of this newly identified sediment-hosted gold belt
which totals approximately 250 square kilometers.
Please see the following link to view all Korkan-Bigar and Kraku
Pestar drill holes located spatially in three dimensions:
Avala had approximately $7.7 million in its treasury at September 30,
2012. Avala's issued and outstanding share capital totals 214,492,223
common shares, of which approximately 51.4% is held by Dundee
Precious Metals Inc. (TSX:DPM). The common shares of Avala trade on
the TSX Venture Exchange under the symbol AVZ.
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "anticipate", "believe", "plan",
"expect", "intend", "estimate", "forecast", "project", "budget",
"schedule", "may", "will", "could", "might", "should" or variations
of such words or similar words or expressions. Forward-looking
information is based on reasonable assumptions that have been made by
the Company as at the date of the information and is subject to known
and unknown risks, uncertainties, and other factors that may cause
actual results or events to differ materially from those anticipated
in the forward-looking information.
Forward looking information in this news release includes information
with respect to potential gold recoveries as well as the potential
improvement of such recoveries with optimization of the flotation
process, the target recovery in excess of 80%, the Company's plans to
complete additional test work, the timing and location of future work
programs, the results and interpretation of studies and exploration
activities, the nature of the mineralization of the project, the
potential size of the sediment-hosted gold system, and the
possibility that the Timok Gold Project will prove to be economic.
Company has attempted to identify important factors that
could cause actual results to differ materially from those contained
in forward-looking information, there may be factors that cause
results to be other than as anticipated, estimated or intended. There
can be no assurance that the forward looking information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking
information contained herein, except in accordance with applicable
The Company has reported "Inferred Resources" on its Timok Project.
Inferred Resources have a great amount of uncertainty as to their
existence, and economic and legal feasibility. Mineral resources that
are not mineral reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that all or any part of the
inferred mineral resource estimates reported by the Company will ever
be upgraded to a higher category or to reserves.
An appendix is available at the following address:
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this press
Avala Resources Ltd.
James Crombie, President and Chief Executive Officer
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