AVM.L Regulatory News (AVM)

9 Feb 2007 07:00

Avocet Mining PLC09 February 2007 AVOCET MINING PLC HIGH GRADES AT BAKAN, INDONESIA, ADD TO THE PROJECT'S MOMENTUM Avocet Mining PLC ("Avocet" or "the Company") is pleased to announce ongoingresults of its infill drilling programmes at Durian and Osela in the BakanDistrict in the Company's 80% owned Mongondow Contract of Work ("CoW") inIndonesia. The results to date from the latest drilling programme of over 12,300metres in the two deposits have yielded intercepts that include bonanza gradesthe best of which is 173 g/t Au over a 3 metre zone. The Bakan District isapproximately 25km west of the Company's North Lanut mining operation and is themain new exploration initiative for the Company in the CoW. Avocet reported initial drilling results for Durian and Osela on 29 March 2006and 20 June 2006 respectively. These formed the basis of a JORC-compliant533,000-ounce Inferred Resource announced on 7 July 2006. Since mid-2006, theCompany has conducted infill drilling on 25-metre centres to confirm thehigh-grade zones within the deposits and evaluate the extent of low-gradeeconomic mineralisation along their margins. Up to four diamond drilling rigshave completed 54 holes (7,875 metres) at Durian and 41 holes (4,575 metres) atOsela to date. Drilling is continuing. The Company is pleased to report significant intercepts (cut to 100 g/t Au) fromthe majority of these infill drillholes (Tables 1 and 2). At Durian, theseinclude: 138m @ 2.60 g/t Au (including 26m @ 6.95 g/t Au), 90m @ 2.27 g/t Au(including 21.5m @ 4.64 g/t Au) and 57.5m @ 1.78 g/t Au. The Osela drillholesinclude 24m @ 13.7 g/t Au (including 6.3m @ 46.4 g/t Au), 71m @ 2.08 g/t Au, 58m@ 2.00 g/t Au, 47m @ 2.25 g/t Au and 14m @ 6.99 g/t Au (including 6m @ 15.2 g/tAu). The first high-grade interval includes an uncut intercept of 3m @ 173 g/tAu associated with visible gold mineralisation, which confirms a zone ofexceptional grades at North Osela. A full version of this release includingmaps with drill hole locations can be found on the Company's website(www.avocet.co.uk). These drillholes have identified a second zone of mineralisation at depth atDurian within the already defined extents of 600 metres along strike and 100-150metres width. Durian has been tested to a depth of up to 150 metres. Drilling atOsela has confirmed two main zones of mineralisation over a strike length of1,000 metres. The most significantly mineralised North Osela zone has a strikelength of 400 metres, width a 40-100 metres and has been tested to a depth of100 metres. This programme has confirmed the nature of the oxidised, replacement-style,high-sulphidation epithermal mineralisation. This is similar to the Company'sRiska deposit, currently being mined at North Lanut. Both Durian and Oselaconsist of NNW-striking zones of massive silica-alunite alteration fed bynarrow, sub-vertical feeder zones. There are significant zones of near-surface,high-grade supergene mineralisation in both deposits, but especially at NorthOsela where the Company has defined a 170-metre long zone of high grademineralisation. The occurrence of near-surface high-grade ore zones in both Durian and Osela islikely to have a positive impact on the economic viability of the goldresources. Both deposits are situated on a ridge, which will further enhance theproject economics by minimising the potential waste to ore stripping ratios. Metallurgical test work, including coarse particle column leach tests, isunderway to confirm preliminary results that show the ore is amenable to thelow-cost dump leaching process employed at North Lanut. Drilling will continue throughout the year as the Company tests extensions toDurian and Osela, sterilises infrastructure sites, and assesses othermineralised prospects in the Bakan District. An RC drilling rig is expected onsite in February to accelerate this programme. Formal grade modelling will commence shortly. The Board anticipates reportingMeasured, Indicated and Inferred Resources in April 2007. This will form thebasis of open pit optimisation studies, mine design work and feasibilitystudies, which are all on the critical path to production planned for 2008. Jonathan Henry, Chief Executive Officer, commented: "Bakan continues to show considerable potential to become a viable commercialmine - the positive drilling results have confirmed our view that Bakan has thepotential to be at least a 50,000 ounce per year producer from 2009. Morerecent bonanza grade intercepts have increased our confidence in the orebody andare likely to improve the economics of the project." 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 PLC Buchanan Communications Grant Thornton Corporate Finance Jonathan Henry, Chief Executive Officer Bobby Morse, Director Fiona Kindness 020 7907 9000 Ben Willey, Associate Director 020 7383 5100 www.avocet.co.uk 020 7466 5000 www.grant-thornton.co.uk www.buchanan.uk.com Notes to Editors Avocet is a mining company listed on the AIM market of the London Stock Exchange(Ticker: AVM). The Company's principal activities are gold mining andexploration in Malaysia (as 100% owner of the Penjom mine, the country's largestgold producer), Tajikistan (as 75% owner and operator of 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 26% of Dynasty Gold Corporation, a Canadian listedexploration company active in Western China. Table 1: Recent significant drillhole intersections from the Durian Prospect Hole East North RL Azimuth Dip Depth From To Interval Grade Comments ID (m) (m) (m) (degrees) (degrees) (m) (m) (m) (m) (g/t Au)BKD102 645115 62183 759 267 -61 192.00 23.00 68.00 45.00 1.70 incl. 14m @ 4.18 g/t Au from 48m BKD105 645106 62134 764 270 -60 199.50 24.00 162.00 138.00 2.60 incl. 26m @ 6.95 g/t Au from 32m; and 23m @ 4.40 g/t Au from 88m BKD106 645138 62234 758 270 -60 184.50 48.00 68.00 20.00 0.82 BKD108 645255 62559 751 235 -60 199.60 0.00 42.50 42.50 1.77 incl. 16m @ 3.34 g/t Au from 18m 46.50 77.00 30.50 0.89 BKD109 645109 62061 774 40 -60 190.00 66.30 97.50 31.20 0.99 BKD110 645152 62358 745 235 -60 150.90 32.50 75.00 42.50 1.34 incl. 4.5m @ 3.88 g/t Au from 52.5m 79.00 102.00 23.00 0.63 BKD112 644994 62166 744 40 -60 200.00 14.00 29.30 15.30 1.19 94.00 112.00 18.00 0.57 125.00 135.00 10.00 3.11 incl. 2m @ 12.5 g/t Au from 125m BKD113 645223 62332 746 235 -60 200.00 35.00 45.00 10.00 1.30 53.00 98.00 45.00 1.31 102.00 193.00 91.00 0.76 incl. 4m @ 3.86 g/t Au from 108m; and 3m @ 3.39 g/t Au from 120m BKD114 645223 62606 756 235 -60 200.00 10.00 57.00 47.00 0.98 BKD116 645270 62455 739 230 -60 150.30 14.00 40.00 26.00 0.65 BKD119 645177 62081 757 70 -60 135.20 82.00 107.00 25.00 0.52 BKD128 645182 62226 744 270 -60 184.70 75.00 100.00 25.00 0.57 BKD130 645234 62634 752 264 -60 136.70 35.00 62.80 27.80 1.97 incl. 4m @ 5.02 g/t Au from 46m; and 4.5m @ 2.33 g/t Au from 54m BKD132 645142 62213 755 90 -55 167.35 80.00 128.00 48.00 1.28 incl. 10m @ 2.07 g/t Au from 86m; and 7m @ 1.49 g/t Au from 104m BKD135 644972 62209 746 40 -60 180.00 5.00 14.00 9.00 1.50 54.00 71.90 17.90 1.10 incl. 4m @ 2.61 g/t Au from 64m 74.00 109.00 35.00 1.02 BKD137 645206 62433 753 90 -65 108.90 9.00 29.00 20.00 0.77 BKD139 645173 62434 747 270 -60 144.20 19.00 45.00 26.00 0.77 99.00 131.00 32.00 0.83 BKD143 645181 62456 743 270 -60 183.20 7.90 39.00 31.10 2.08 incl. 4m @ 9.92 g/t Au from 29m 107.00 135.50 28.50 2.60 incl. 1.5m @ 22.9 g/t Au from 117m; and 2.2m @ 5.1 g/t Au from 133.3m BKD144 644995 62112 740 90 -60 199.70 42.00 65.50 23.50 1.93 incl. 7.2m @ 3.50 g/t Au from 52.5m 94.50 144.50 50.00 0.63 BKD147 645169 62410 737 270 -60 133.20 16.50 37.00 20.50 0.55 87.50 104.00 16.50 2.54 incl. 9m @ 3.68 g/t Au from 95m 109.50 121.50 12.00 1.28 BKD148 645259 62356 737 270 -60 155.00 12.00 29.50 17.50 0.99 124.00 155.00 31.00 0.51 BKD150 645195 62383 746 90 -60 108.20 30.50 44.50 14.00 0.99 BKD152 645262 62331 735 270 -60 199.10 108.60 132.50 23.90 0.69 154.50 190.50 36.00 0.46 BKD153 645228 62582 758 270 -65 156.70 17.50 55.50 38.00 1.04 BKD157 645250 62581 753 270 -65 140.20 6.00 39.00 33.00 0.81 54.00 114.00 60.00 0.94 incl. 6.9m @ 2.39 g/t Au from 68.6m BKD158 645221 62332 746 270.5 -62 178.10 33.00 56.00 23.00 0.95 76.00 102.00 26.00 0.80 133.00 166.00 33.00 0.72 BKD161 645148 62184 757 90 -60 146.60 110.00 119.00 9.00 2.78 incl. 5m @ 4.23 g/t Au from 110m 131.00 142.00 11.00 2.55 incl. 4m @ 5.72 g/t Au from 135m BKD166 645158 62234 757 90 -60 169.40 8.50 31.00 22.50 0.47 75.00 103.00 28.00 0.79 107.00 129.00 22.00 0.66 BKD167 645053 62155 750 135 -60 200.00 19.00 109.00 90.00 2.27 incl. 21.5m @ 4.64 g/t Au from 24.5m; and 5.2m @ 3.05 g/t Au from 64m; and 4m @ 4.24 g/t Au from 73m; and 6m @ 2.56 g/t Au from 87m 132.00 153.00 21.00 1.18 incl. 2m @ 5.12 g/t Au from 142m BKD169 645127 62134 765 235 -60 159.70 40.00 71.50 31.50 0.99 incl. 4m @ 2.8 g/t Au from 50m BKD171 645054 62155 750 90 -60 193.60 18.00 75.50 57.50 1.78 incl. 12m @ 4.30 g/t Au from 23m; and 8m @ 2.95 g/t Au from 41m 108.00 132.00 24.00 0.51 Note: Individual gold assays have a top cut of 100 g/t Au for intercept calculations. Intercepts are reported above a lower cut-off of 0.3 g/t Au and include a maximum of 2m of internal waste Only intercepts exceeding a grade x thickness of 10 are shown All holes are drilled from surface using conventional triple-tube diamond drilling techniques. Core recoveries exceed 90% for all mineralised intervals reported. Table 2: Recent significant drillhole intersections from the Osela Prospect Hole East North RL Azimuth Dip Depth From To Interval Grade Comments ID (m) (m) (m) (degrees) (degrees) (m) (m) (m) (m) (g/t Au)OSD094 646793 64420 773 90 -65 94.80 35.00 54.00 19.00 1.11 incl. 2m @ 5.32 g/t Au from 48m OSD115 646911 64487 784 270 -60 163.60 5.00 10.00 5.00 2.90 incl. 3m @ 3.97 g/t Au from 7m 22.00 69.00 47.00 2.25 incl. 2m @ 12.8 g/t Au from 33m; and 8m @ 4.12 g/t Au from 51m; and 2m @ 5.06 g/t Au from 63m OSD118 646947 64489 778 310 -60 120.10 18.00 68.00 50.00 1.29 incl. 6m @ 2.28 g/t Au from 26m OSD121 647007 64546 781 270 -60 131.60 0.00 71.00 71.00 2.08 incl. 14m @ 3.56 g/t Au from 3m; and 6m @ 7.1 g/t Au from 53m 109.00 128.00 19.00 0.93 OSD122 647028 64586 786 270 -60 130.00 0.00 43.00 43.00 1.49 incl. 10m @ 4.19 g/t Au from 8m OSD125 647028 64587 786 310 -60 126.10 4.00 45.00 41.00 1.23 incl. 7.2m @ 3.37 g/t Au from 12m 87.00 106.00 19.00 0.85 OSD127 647055 64684 781 270 -65 100.00 13.00 71.00 58.00 2.00 incl. 4m @ 3.45 g/t Au from 25m; and 4m @ 15.0 g/t Au from 57m 89.50 94.00 4.50 2.84 incl. 2m @ 5.77 g/t Au from 92m OSD129 647061 64739 788 270 -60 133.70 45.00 74.80 29.80 1.22 incl. 4m @ 3.79 g/t Au from 62m OSD131 647090 64738 780 270 -60 139.00 9.00 37.40 28.40 0.75 62.00 71.00 9.00 2.67 incl. 2m @ 9.52 g/t Au from 63.5m 102.00 115.00 13.00 1.36 incl. 4m @ 3.08 g/t Au from 111m OSD133 647113 64765 779 315 -60 106.70 50.30 57.40 7.10 2.78 incl. 4m @ 4.57 g/t Au from 52.3m OSD136 647132 64809 777 270 -60 100.00 30.00 43.00 13.00 0.91 OSD141 647094 64686 773 270 -60 106.00 31.00 45.00 14.00 6.99 incl. 6m @ 15.2 g/t Au from 39m OSD145 647055 64661 782 270 -60 120.10 3.50 67.00 63.50 0.97 incl. 2m @ 7.22 g/t Au from 25m OSD146 647037 64660 789 270 -70 123.00 0.00 37.00 37.00 1.09 OSD149 647021 64688 786 270 -65 106.20 20.70 35.50 14.80 1.43 65.50 89.50 24.00 13.7 incl. 6.3m @ 49.4 g/t Au from 68.7m OSD151 647031 64612 788 270 -55 98.80 10.00 32.25 22.25 0.77 75.00 91.60 16.60 0.86 OSD154 647050 64635 786 270 -60 116.00 8.00 51.00 43.00 0.80 OSD155 646905 64460 783 270 -60 158.50 67.30 71.00 3.70 2.72 104.20 117.50 13.30 1.41 OSD160 647025 64636 791 270 -60 129.20 14.00 33.80 19.80 1.00 60.90 77.90 17.00 0.97 99.20 110.00 10.80 1.06 OSD163 647098 64636 762 270 -60 114.20 40.00 61.00 21.00 1.07 OSD165 647077 64610 769 270 -60 102.30 48.00 69.90 21.90 1.54 incl. 2m @ 7.32 g/t Au from 61m OSD168 647046 64561 771 270 -70 104.20 4.50 22.30 17.80 1.41 incl. 2.5m @ 5.10 g/t Au from 12.5m Note: Individual gold assays have a top cut of 100 g/t Au for intercept calculations. Intercepts are reported above a lower cut-off of 0.3 g/t Au and include a maximum of 2m of internal waste Only intercepts exceeding a grade x thickness of 10 are shown All holes are drilled from surface using conventional triple-tube diamond drilling techniques. Core recoveries exceed 90% for all mineralised intervals reported. This information is provided by RNS The company news service from the London Stock Exchange