AVM.L Regulatory News (AVM)

29 Mar 2006 07:01

Avocet Mining PLC29 March 2006 Avocet Mining Plc 29 March 2006 DRILL RESULTS CONFIRM RESOURCE POTENTIAL AT BAKAN Avocet Mining PLC ("Avocet" or "the Company") is pleased to announce continuedexploration success from the Bakan District in the Company's 80% owned MongondowContract of Work (CoW) in Indonesia, on which the Company's North Lanut miningoperation is located. The Bakan District is approximately 25km from North Lanutand is the main new initiative in the Mongondow CoW with the potential for thediscovery of a significantly larger deposit than the Company's initial target of500,000 ounces. Following the results of scout drilling reported on 11 July and 16 November2005, Avocet has focused on defining the gold resource hosted by the Durian andOsela prospects in the Bakan District. The Company has recently completed a27-hole (3,511.2 metres) resource-definition diamond drilling programme atDurian. This programme, drilled on 50-metre centres, has confirmed continuous,oxidised, high-sulphidation epithermal mineralisation over a minimum strikelength of 600 metres, width of 100-150 metres and depth of up to 150 metres fromsurface. Table 1 summarises the significant intersections, including 78m at 2.47 g/t Au,58m at 1.88 g/t Au, 86m at 1.40 g/t Au, 79.3m at 1.56 g/t Au and 29m at 3.56 g/tAu. The higher grade intercepts occur where NW-striking faults intersect theNNE-trending ridge that hosts the deposit. There is also a zone of higher-grademineralisation (> 2 g/t Au) at 10-50 metres depth along the ridge. This willhave a positive impact on the economics of any resources. The style of mineralisation at Durian is similar to that at the Company's Riskadeposit, currently being mined at North Lanut. Metallurgical test work isunderway to confirm preliminary results that show the ore is amenable to the lowcost dump leaching process employed at North Lanut. Like Riska, Durian issituated on a ridge, which minimises the potential waste to ore stripping ratio. Drilling rigs are currently undertaking a similar first-phase, resourcedefinition programme at the nearby Osela prospect. This should be completed bythe end of May. Formal grade modelling in June will allow us to report indicatedand inferred resources in the summer of 2006. A second-phase drilling programmefor grade-infill, metallurgical and geotechnical purposes will follow in thesecond half of 2006. Avocet is targeting a minimum 500,000 ounce resource basefor the development of a new mine in the Bakan District by 2008. The BakanDistrict has the potential for the discovery of a significantly larger depositthan the Company's initial target of 500,000 ounces being discovered on accountof additional mineralisation already identified in the Camp and Main Ridge areas(see press release of 11 July 2005). Avocet is a mining company listed on the AIM market of the London StockExchange. The Company's principal activities are gold mining and exploration inMalaysia (as 100% owner of the Penjom mine, the country's largest goldproducer), Tajikistan (as 75% owner and operator of the ZGC, Tajikistan'sprincipal gold mine), and Indonesia (as 80% owner of the North Lanut gold minein North Sulawesi). The Company has a number of advanced mining and explorationprojects in Asia and owns 29% of Dynasty Gold Corporation, a Canadian listedexploration company active in Western China. All references to resources and exploration results have been approved forrelease by Mr Peter Flindell, BSc (Hons) MAusIMM, Chief Geologist for Avocet,who has more than 20 years experience in the field of activity concerned and isa Competent Person as defined by the JORC Code (2004). He has consented to theinclusion of the material in the form and context in which it appears. For further information please contact:Avocet Mining PLCJohn Catchpole (Chief Executive)Jonathan Henry (Finance Director)020 7907 9000www.avocet.co.uk Table 1: Recent significant drillhole intersections from the Durian Prospect Hole East North RL Azimuth Dip Depth From To Interval Grade CommentsID (m) (m) (m) (degrees) (degrees) (m) (m) (m) (m) (g/t Au) BKD038 645204 62452 750 270 -55 90.3 16.0 36.0 20.0 0.95 BKD039 645139 62402 754 270 -65 190.7 44.0 184.0 140.0 0.72 incl. 4m @ 4.13 g/t Au from 58m BKD040 645181 62501 752 270 -60 141.2 6.0 46.0 40.0 0.81 BKD041 645181 62550 750 270 -65 109.0 4.0 109.0 105.0 0.84 incl. 2m @ 5.85 g/t Au from 28m; and 6m @ 3.16 g/t Au from 54m BKD042 645190 62649 755 270 -65 148.2 12.0 50.0 38.0 0.61 84.0 122.0 38.0 0.76 BKD043 645006 62248 734 90 -55 160.4 10.0 32.0 22.0 0.88 BKD044 645071 62354 727 90 -60 139.3 1.4 12.0 10.6 1.28 34.0 68.0 34.0 1.06 74.0 122.0 48.0 0.54 BKD045 644915 62265 754 215 -60 91.7 11.0 22.0 11.0 0.77 BKD046 644922 62260 753 90 -60 140.0 2.0 22.0 20.0 1.51 82.0 102.0 20.0 0.78 BKD047 645163 62451 751 270 -60 90.0 18.0 48.0 30.0 0.53 BKD048 644980 62152 757 90 -65 136.6 3.0 32.0 29.0 0.49 58.0 124.0 66.0 0.77 BKD049 645218 62550 735 270 -55 182.5 41.0 57.0 16.0 0.73 80.0 99.0 19.0 1.03 BKD050 645006 62195 750 215 -55 95.0 0.0 78.0 78.0 2.47 incl. 35m @ 4.73 g/t Au from 12m BKD051 645058 62251 751 90 -55 145.0 58.0 64.0 6.0 1.70 74.0 120.0 46.0 0.53 BKD052 644949 62205 744 90 -55 171.6 11.0 38.0 27.0 1.08 44.0 63.0 19.0 0.43 BKD053 645222 62500 738 270 -50 99.1 13.0 56.0 43.0 1.24 incl. 6m @ 4.31 g/t Au from 47m BKD054 645036 62201 755 90 -70 153.6 12.0 70.0 58.0 1.88 incl. 16m @ 4.72 g/t Au from 38m 114.0 153.6 39.6 0.69 BKD055 645015 62150 769 90 -65 163.7 18.0 76.0 58.0 1.66 incl. 6m @ 2.29 g/t Au from 33m; and 12m @ 3.42 g/t Au from 53m 105.0 135.0 30.0 1.07 incl. 4m @ 2.88 g/t Au from 115m BKD056 645180 62605 758 270 -70 126.2 2.0 88.0 86.0 1.40 incl. 23m @ 3.53 g/t Au from 26m BKD057 645181 62401 747 270 -55 130.9 41.0 65.0 24.0 1.16 incl. 4m @ 2.76 g/t Au from 49m 101.0 125.0 24.0 0.78 BKD058 645005 62099 759 90 -55 72.0 41.0 67.0 26.0 0.42 BKD059 645090 62302 765 270 -65 107.0 18.0 65.0 47.0 0.48 78.0 90.0 12.0 1.37 incl. 4m @ 2.51 g/t Au from 84m BKD060 645233 62600 733 270 -55 79.2 64.0 79.2 15.2 0.45 BKD061 645117 62350 759 90 -65 121.3 42.0 121.3 79.3 1.56 BKD062 645221 62650 742 270 -60 142.6 2.0 42.0 40.0 0.77 123.0 129.0 6.0 2.77 incl. 3m @ 4.66 g/t Au from 124m BKD063 645103 62401 745 270 -70 137.0 30.0 59.0 29.0 3.56 incl. 13m @ 6.70 g/t Au from 44m 65.0 124.0 59.0 0.87 incl. 9m @ 2.84 g/t Au from 69m BKD067 645169 62307 750 270 -55 147.1 15.0 40.0 25.0 1.28 incl. 7m @ 2.43 g/t Au from 31m 62.0 81.0 19.0 0.53 Notes: Individual gold assays have a top cut of 100 g/t Au for intercept calculations. All holes are drilled from surface using conventional triple-tube diamond drilling techniques. Core recoveries exceed 95% for all mineralised intervals reported. Holes 064, 065 and 066 are drilled at Osela. This information is provided by RNS The company news service from the London Stock Exchange