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ST. PETER PORT, Guernsey, Dec. 31, 2012 /CNW/ - Avnel Gold Mining Limited
(TSX: AVK) -
Avnel reports that it and IAMGOLD Corporation have agreed to extend the
Exploration Phase under the Option Agreement between Avnel and IAMGOLD to
enter into joint venture arrangements. Under the original Kalana Option
Agreement IAMGOLD was scheduled to deliver a Resource Study during the third
quarter of 2012 (subject to IAMGOLD's rights to extend the Exploration Phase
for a maximum period of 12 months in specified circumstances). On May 15,
2012, Avnel announced its agreement with IAMGOLD to extend the Exploration
Phase to December 31, 2012. Avnel and IAMGOLD have now agreed to a further
extension of the Exploration Phase to January 31, 2013.
ABOUT THE COMPANY
Avnel is a producing gold mining company operating the Kalana Mine in
south-west Mali and is engaged in the exploration of the 30-year Kalana
Exploitation Permit encompassing 387.4 sq km around and to the south of the
Kalana Mine as well as on Avnel's abutting Fougadian Exploration Permit.
Avnel's principal asset is an 80% interest in Société d'Exploitation des
Mines d'Or de Kalana ("SOMIKA") which is the holder of the Kalana Exploitation
Permit. The Kalana Project is situate in south west Mali. The 387.4 sq km
exploitation permit has a NI-43-101 compliant resource of 1,020,000 oz (at an
average grade of 10.4 g/t) in the measured and indicated category, and 249,000
oz (at an average grade of 3.4 g/t) in the inferred category.
Avnel also holds the Fougadian Exploration Permit covering an area of 75 sq.
km. to the south of the main Kalana Exploitation Permit area and abutting it.
Avnel and IAMGOLD Corporation have entered into a joint venture arrangements
agreement whereby IAMGOLD has the option to acquire up to an initial 51% in
Avnel's interest in the Kalana Exploitation Permit as well as in Avnel's
interest in the Fougadian Exploration Permit and in an additional 75 sq kms to
the south of Avnel's Fougadian Exploration Permit area for which IAMGOLD has
applied for an exploration permit.
Technical Information and Qualified Person/Quality Control Notes
Information in this release arising subsequent to the date of the 2005 Snowden
Technical Report regarding the Kalana Gold Mine and exploration activity is
provided by Avnel management under the supervision of Roy Meade (a director of
the Company) who is a non-independent "Qualified Person" as such term is
defined in National Instrument 43-101. Portions of the information are based
on assumptions, qualifications and procedures which are not fully described
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.
Chief Executive Officer Phone: +44 207 589 9082; Fax +44 207 589 8507 UK
Mobile: +44 07768 696129 Canadian Mobile: +1 416 726 8174
Executive Director, Technical and Operations Phone : +223 6674 7679
Public Relations Consultant: Ari Todd
President FronTier Consulting 1 King Street West - Suite 1411 Toronto, Canada
M5H 1A1 Direct: +1 416 800 9156 Mobile: +1 647 999 9734
SOURCE: AVNEL GOLD MINING LTD.
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-0- Dec/31/2012 12:30 GMT
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