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News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | April 27, 2017
Site: globenewswire.com

Supervisory board of Nordecon AS decided on its meeting held on 26 April 2017 to appoint two new management board members as of 01 May 2017: Maret Tambek will be responsible for financial management and support services of the group and Priit Luman’s responsibility will be the group’s activities in the export markets. Maret Tambek started working for Nordecon Infra AS as a financial manager in 2007. She assumed the position of head accountant of the group in spring 2010 and as of July 2014, Maret Tambek acts as a financial director of Nordecon AS. Previously, Maret worked for KPMG Baltics AS as an auditor for eleven years. She worked as a specialist for the Bank of Estonia from 1992 to 1996. Maret graduated from Tallinn University of Technology in the field of Management and Planning of Manufacturing in 1989. Maret is certified public accountant and member of the Estonian Auditors’ Association. Maret Tambek does not own the shares of Nordecon AS. Priit Luman has held different construction management related positions in Nordecon AS since 2006. Starting from 2013 he is the head of the buildings construction division. Priit graduated from Tallinn University of Technology in Civil and Building Engineering in 2010, obtaining a cum laude Master’s degree in Science in Engineering. Starting from 2017 Priit studies in the EMBA program of Aalto University. Priit Luman has been issued a Level V Diploma Civil Engineer by the Estonian Association of Civil Engineers. Priit Luman owns 200 shares of Nordecon AS. Nordecon (www.nordecon.com) is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine, Finland and Sweden. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The consolidated revenue of the Group in 2016 was 183 million euros. Currently Nordecon Group employs close to 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ Tallinn Stock Exchange.


News Article | April 27, 2017
Site: globenewswire.com

Supervisory board of Nordecon AS decided on its meeting held on 26 April 2017 to appoint two new management board members as of 01 May 2017: Maret Tambek will be responsible for financial management and support services of the group and Priit Luman’s responsibility will be the group’s activities in the export markets. Maret Tambek started working for Nordecon Infra AS as a financial manager in 2007. She assumed the position of head accountant of the group in spring 2010 and as of July 2014, Maret Tambek acts as a financial director of Nordecon AS. Previously, Maret worked for KPMG Baltics AS as an auditor for eleven years. She worked as a specialist for the Bank of Estonia from 1992 to 1996. Maret graduated from Tallinn University of Technology in the field of Management and Planning of Manufacturing in 1989. Maret is certified public accountant and member of the Estonian Auditors’ Association. Maret Tambek does not own the shares of Nordecon AS. Priit Luman has held different construction management related positions in Nordecon AS since 2006. Starting from 2013 he is the head of the buildings construction division. Priit graduated from Tallinn University of Technology in Civil and Building Engineering in 2010, obtaining a cum laude Master’s degree in Science in Engineering. Starting from 2017 Priit studies in the EMBA program of Aalto University. Priit Luman has been issued a Level V Diploma Civil Engineer by the Estonian Association of Civil Engineers. Priit Luman owns 200 shares of Nordecon AS. Nordecon (www.nordecon.com) is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine, Finland and Sweden. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The consolidated revenue of the Group in 2016 was 183 million euros. Currently Nordecon Group employs close to 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ Tallinn Stock Exchange.


News Article | April 27, 2017
Site: globenewswire.com

Supervisory board of Nordecon AS decided on its meeting held on 26 April 2017 to appoint two new management board members as of 01 May 2017: Maret Tambek will be responsible for financial management and support services of the group and Priit Luman’s responsibility will be the group’s activities in the export markets. Maret Tambek started working for Nordecon Infra AS as a financial manager in 2007. She assumed the position of head accountant of the group in spring 2010 and as of July 2014, Maret Tambek acts as a financial director of Nordecon AS. Previously, Maret worked for KPMG Baltics AS as an auditor for eleven years. She worked as a specialist for the Bank of Estonia from 1992 to 1996. Maret graduated from Tallinn University of Technology in the field of Management and Planning of Manufacturing in 1989. Maret is certified public accountant and member of the Estonian Auditors’ Association. Maret Tambek does not own the shares of Nordecon AS. Priit Luman has held different construction management related positions in Nordecon AS since 2006. Starting from 2013 he is the head of the buildings construction division. Priit graduated from Tallinn University of Technology in Civil and Building Engineering in 2010, obtaining a cum laude Master’s degree in Science in Engineering. Starting from 2017 Priit studies in the EMBA program of Aalto University. Priit Luman has been issued a Level V Diploma Civil Engineer by the Estonian Association of Civil Engineers. Priit Luman owns 200 shares of Nordecon AS. Nordecon (www.nordecon.com) is a group of construction companies whose core business is construction project management and general contracting in the buildings and infrastructures segment. Geographically the Group operates in Estonia, Ukraine, Finland and Sweden. The parent of the Group is Nordecon AS, a company registered and located in Tallinn, Estonia. In addition to the parent company, there are more than 10 subsidiaries in the Group. The consolidated revenue of the Group in 2016 was 183 million euros. Currently Nordecon Group employs close to 700 people. Since 18 May 2006 the company's shares have been quoted in the main list of the NASDAQ Tallinn Stock Exchange.


News Article | February 16, 2017
Site: www.businesswire.com

SAN DIEGO--(BUSINESS WIRE)--California and Hawaii American Water have named Richard Svindland their new president, effective March 1, 2017. Svindland replaces Robert MacLean, who has served as president of California American Water since 2009. MacLean will now become senior vice president of American Water’s Eastern Division, which is comprised of New Jersey, New York, Virginia and Maryland. MacLean also will serve as president of New Jersey American Water. “We are so pleased to promote both Rob and Rich. It is well-deserved,” said Walter Lynch, chief operating officer at American Water. “I know Rich will take over where Rob left off, ensuring our customers in California and Hawaii receive the best service possible, while continuing to focus on the successful completion of the Monterey Peninsula water supply project. His deep utility experience makes him well-suited for this new role.” Svindland has more than 25 years of experience in the water and wastewater fields, most recently serving as California American Water’s vice president of operations. Prior to that role, he led Engineering at California American Water, where he managed all of the company's capital projects to ensure timely and cost-efficient delivery. He also developed capital planning strategies and provided an operational review of existing infrastructure to ensure California American Water’s systems met both the current and future water needs. Prior to his roles in California, Svindland worked extensively in American Water's southeast region on various projects and was named 2003 Civil Engineer of the Year in Industry by the Kentucky section of the American Society of Civil Engineers. He earned a bachelor's degree in civil engineering from the Georgia Institute of Technology and a master's degree in civil engineering from the University of Kentucky. California American Water, a subsidiary of American Water (NYSE: AWK), provides high-quality and reliable water and/or wastewater services to more than 660,000 people. Hawaii American Water provides quality wastewater services to approximately 28,000 people. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,700 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found by visiting www.amwater.com.


RYE, N.Y.--(BUSINESS WIRE)--Gabelli & Company is pleased to announce that Mark W. Woodson, P.E., L.S., D.WRE, F.ASCE, the 2016 American Society of Civil Engineers President, will deliver a keynote address on America’s critical infrastructure spending needs at its 27th Annual Pump, Valve & Water Systems Symposium on March 1 in New York City. The American Society of Civil Engineers (ASCE) represents more than 150,000 members of the civil engineering profession in 177 countries. Founded in 1852, ASCE is the nation’s oldest engineering society. ASCE stands at the forefront of a profession that plans, designs, constructs, and operates society’s economic and social engine – the built environment – while protecting and restoring the natural environment. Mr. Woodson’s keynote will cover the facts behind the Report Card for America’s Infrastructure (infrastructurereportcard.org). The Report Card gave a GPA of “D+” to the nation’s infrastructure in 2013. The next Report Card will be released on March 9, 2017. Mr. Woodson will address the economic case for America’s infrastructure and the solutions that can close our infrastructure competitiveness gap compared to other nations. Mr. Woodson received his Bachelor of Science in Civil Engineering in 1979 and an MBA in 1985 from the University of Arizona in Tucson. Mark is a licensed civil engineer and surveyor in California and Arizona. In 1994, Mr. Woodson received the Arizona Civil Engineer Distinguished Service award from the Arizona Section of ASCE. In 2002, he was awarded the John C. Park Outstanding Engineering award by the Arizona Section of ASCE. In 2002, he was elected as a Fellow in the American Society of Civil Engineers. In 2013 he became a Diplomate of Water Resources Engineering. In 2014, Mr. Woodson was elected to become the 2016 ASCE President. Institutional investors should contact their Gabelli & Company sales representative to register.


FORT WORTH, Texas--(BUSINESS WIRE)--Peloton Land Solutions, Inc. (Peloton), has moved their corporate headquarters and Fort Worth office to Alliance Town Center, Hillwood Commons I, a Class A office complex, to manage continued company growth. The company leased more than 11,000 square feet to house approximately 60 employees and employs more than 100 team members at its three Texas locations. “Our goal was to begin 2017 in our new office space, so we’re pleased to have the move behind us and start the new year at Hillwood Commons I,” said Peloton President and CEO Aric Head. “We are also pleased to announce numerous promotions across our Texas offices for many of our hard working, well-deserving team members.” Fort Worth: Principal – Business Development Manager Travis Clegg, P.E.; Associate Principal - ISA Certified Arborist/Environmental Manager Chris Hamilton, CWB® Associates – Civil Engineer Kyle Kattner; Project Manager Logan McWhorter; Project Manager Denny Peters; Project Manager Nick Powell; Civil Engineer Matt Schneider; Civil Engineer Casey Stevenson and Civil Engineer Kole Weber; Austin: Associates - Operations Manager/Senior Project Manager Stephanie Stanford, P.E. and Project Manager Jeff Scott; Frisco: Associates - Project Manager Chuck Lamping, P.E.; and Senior Project Manager Nathan Thompson, P.E. Currently one of the fastest growing consulting firms in Texas, Peloton Land Solutions, Inc. was founded in Fort Worth in 2010 and has grown to more than 100 professional engineers, planners, surveyors, scientists, landscape architects and support personnel. With offices in Fort Worth, Austin and Frisco, Peloton provides comprehensive land development services for residential, commercial, industrial, municipal and energy sector clients. Their land development and energy services expertise includes: planning, civil engineering, surveying, landscape architecture and environmental science. An active supporter of the communities in which they operate, Peloton was named Emerging Small Business of the Year by the Fort Worth Chamber of Commerce in 2013 and was selected as the engineering firm of record for Facebook’s new billion-dollar Data Center in North Fort Worth, among other noteworthy projects. Peloton is a registered engineering firm in the state of Texas and is also registered as a Texas Board of Professional Land Surveying Firm. More information can be found on their website at www.pelotonland.com. TBPLS FIRM NO. 10177700 (FORT WORTH) TBPLS FIRM NO. 10193958 (FRISCO) TBPLS FIRM NO. 10194108 (AUSTIN) TBPE FIRM NO. 12207


SAINT PETER PORT, GUERNSEY--(Marketwired - Feb. 13, 2017) - Avnel Gold Mining Limited ("Avnel" or the "Company") (TSX:AVK) is pleased to report the first results of the 2016 Kalanako drilling programme with the receipt of the first batch of assays. The drill programme objective is to provide additional information in support of an updated Mineral Resource Estimate for its Kalanako prospect in south-western Mali, West Africa. Howard Miller, Avnel's Chairman and CEO stated, "I am pleased to report that we have received the first batches of assays from the 2016 drilling programme successfully concluded at the Kalanako deposit. The Kalanako current maiden mineral resource is based on a wide drill spacing (75m x 25m). The RC infill drilling campaign has been designed to improve the grade/tonnage continuity inside and outside the March 2015 resource pit shells. Inside the South-East Resource pits, the first results received are encouraging and should support the conversion of a meaningful portion of our Inferred Resource into the Measured and Indicated categories. Outside the existing resource pits, although not all of the extension drilling was fruitful, the first batch results show high grade mineralisation has been intercepted in the Central and Central-South zones. These results have been obtained in a portion of the previous block models that reported no economic resource," said Mr. Miller. The results reported in this news release reflect the first batch of assays from 21 holes over 2,173m, from a total programme of 82 holes over 8,635m. This first batch represents nearly one-quarter of the total drill programme (holes RC204 to RC225). Maps of the general layout of the drill programme, the location of individual drill holes and significant intersections is provided in figures 1 and 2 near the end of this news release. Drill holes for the entire historical drill programme, including IAMGOLD's 2010 to 2012 and Avnel's 2016 drill programmes, and geophysical gradient IP are respectively presented in figures 2 and 3. Select composite assays and related drill hole information from this first batch is presented in the tables at the end of this news release. The majority of the assays reported in this news release are from the South-East and Central-South zones of the deposit. Results reported in the existing MRE pit shells are encouraging and should support the conversion of a large part of the Inferred Resource into Measured or Indicated categories. High grade results reported outside the existing MRE pit shells provide a significant opportunity to improve known mineralisation into large portions of the bock model that were not classified as resources. Significant intervals (>25g/t.m) from the South-East zone (inside the 2015 resources pit shells): Significant intervals (>25g/t.m) from the South-East zone (outside the 2015 resources pit shells): A summary of select composite assays and drill hole information from the 2016 drilling campaign are presented in tables 1 and 2, respectively. Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS-DFS, the Kalanako prospect is an old area of traditional mining activity (Figure 2). Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain (Figure 3). The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. The Kalanako Mineral Resource Statement completed by Denny Jones (Pty) Limited, has been reported above a cut-off grade of 0.9 g/t Au, and is summarised as follow: An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). Targets of the Kalanako drilling campaign: A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako located at the central part of a 5 km long geophysical structure (figure 3) defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. In addition to the resource defined at Kalana, we see significant potential to add satellite deposits on our existing permit. A potential opportunity exists that would allow us to increase the production profile outlined in the DFS-OFS. The mill proposed in our DFS-OFS can process 25% more saprolite ore than fresh rock due to the relative ease of processing saprolite through the crushing and grinding circuit. In keeping with our corporate strategy, as we progress into construction we plan on continuing to add to the quantity and quality our mineral inventory through exploration work focusing on the soft saprolite high grade ore with the aim to increase planned gold production and reduce our total cash cost per ounce using satellite targets to supplement Kalana. The high-grade and close proximity makes Kalanako our highest priority advanced stage exploration target. It has the potential to become a high-grade open-pit satellite deposit delivering additional ore to the operation proposed in the DFS-OFS. As a supplemental deposit to Kalana Main, Kalanako could help extend the mine life or increase average gold production. As Avnel commences construction on Kalana Main we will be accelerating our regional geology programme to progress our portfolio of exploration targets. To date, only 3 of our 30 targets have been partially drill tested. Exploration work is being conducted to evaluate and rank our premier targets. Exploration programmes are conducted under the supervision of Dr. Olivier Féménias, EurGeol 1115, Avnel's Vice-President, Geology. Dr. Féménias, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Strict sampling and QA/QC protocol are followed, including the insertion of standards, blanks, and duplicates on a regular basis as well as laboratory visit by senior geologists. Sample intervals are usually 1.0 m. Samples are prepared on site and collected by BIGS Global Burkina SARL ("BIGS Global") and transported to Ouagadougou in Burkina Faso for analysis. Analytical method is a 2-kilogram bottle-roll cyanidation using a LeachWELL catalyst. The leach residues from all samples with a grade in excess of 0.1 g/t Au were prepared by BIGS Global and split to 50 grams and then analysed by standard Fire Assay. Composites presented in the assay results tables include intervals with a grade x thickness equal or greater than 5 grams of gold per tonne x metre ("g/t.m") with a minimum grade of 0.65 g/t Au over a 1 m minimum width with a maximum internal dilution of 3 m. No assays results were capped. Due to the exploratory nature of this programme the true width of the mineralisation has not been reported. The intersections presented herein may not represent the true width of mineralisation. Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company's focus is to develop its 80%-owned Kalana Main Project from a small underground mine into a low-cost, open pit mining operation. The Company is also advancing exploration on several nearby satellite deposits on the 387 km2 30-year Kalana Exploitation Permit. On January 9, 2017, the Company reported the results of an Optimized Feasibility Study ("OFS") prepared by Snowden Mining Industry Consultants. The OFS outlines an 18-year open-pit mine life at the Kalana Main Project recovering 1.82 million ounces of gold at an average "all-in sustaining cost" of $561 per ounce over the first five years of steady state production and $730 per ounce over the life of mine with an initial capital cost of $171 million. Utilising a gold price of $1,200 per ounce and a 5% discount rate, the DFS reported a net present value ("NPV") of $321 million after-tax and imputed interest, and an internal rate of return ("IRR") of 50% on a 100% project basis. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold's expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Avnel Gold's most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 - Standards of Disclosure for Mineral Projects("NI43-101") compliant technical report titled "NI43-101 Technical Report on Kalana Main Project", dated effective 30 March 2016 (the "Kalana Technical Report"), prepared by Snowden Mining Industry Consultants (Pty) Ltd. ("Snowden"), Denny Jones Ltd ("Denny Jones"), DRA Projects SA (Pty) Ltd ("DRA") and Epoch Resources (Pty) Ltd ("Epoch Resources"). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant - Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant - Applied Geosciences of Denny Jones (Pty) Limited), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant -Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant -Environmental and Social of Epoch Resources), all of whom are independent "Qualified Persons" as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Table 1: Kalanako Drilling - Select Composite Intervals Includes intervals >5 g/t.m, cut-of grade of 0.65 g/t Au, maximum 3m of internal dilution, no assay are capped To view Figure 1: Kalanako mineralisations, 2016 campaign drilling pattern and batch 1 significant intercepts (>5g/t.m), please visit the following link: http://media3.marketwire.com/docs/Significant%20intersections.jpg To view Figure 2: Kalanako mineralisations, drilling pattern, maiden resource pit shells and Historical Traditional mining footprint, please visit the following link: http://media3.marketwire.com/docs/Historical%20traditional.jpg To view Figure 3: Induced Polarisation (IP) gradient map highlighting the structural location of the Kalanako prospect and the area drilled to date, please visit the following link: http://media3.marketwire.com/docs/IP%20gradient.jpg

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