AVM.L Regulatory News (AVM)

30 Aug 2006 07:00

Avocet Mining PLC30 August 2006 Avocet Mining Plc 30 August 2006 AVOCET RECEIVES SIGNIFICANT TRENCH ASSAYS FROM NEW INDONESIAN PROJECT Avocet Mining PLC ("Avocet" or "the Company"), the Central and South East Asiangold production and exploration company, is pleased to announce positivetrenching results from a recent exploration campaign over the Mangkalukuprospect in South Sulawesi, Indonesia. The South Sulawesi project is a grassroots exploration initiative designed to identify drilling targets within aknown belt of orogenic gold mineralisation. This is an area with poor rockoutcrops therefore requiring extensive trenching to investigate geochemicalanomalies. Avocet has identified the potential for at least two orogenic quartz lodesystems similar to the mineralisation at the Company's Penjom gold mine inMalaysia. These are Mangkaluku and Tarra-Siguntu. The main target, Mangkaluku, has been the focus of exploration in 2006. A gridsoil sampling programme has identified an 800 x 1,000 metre gold anomaly (> 50ppb Au in soil) encompassing three main ENE-striking fault zones. Trenchingacross the main zone has identified two main sheeted vein sets, which strike ENEand NNE, hosted by a phyllic-altered metamorphosed monzodiorite intrusion.Trenching in a NW direction has been favoured to cut across the mineralised veinsets, although one trench (MLT030) does trend ENE to cut a predominantNNE-striking vein set. Table 1 summarises the significant trench intersections from the first part ofthe programme. The highlights include 33.2m @ 8.20 g/t Au (including 12.1m @17.3 g/t Au), 18.0m @ 6.81 g/t Au, 10.4m @ 5.90 g/t Au (incl. 2.4m @ 16.3 g/tAu), 2.5m @ 18.4 g/t Au, 14.5m @ 2.91 g/t Au and 7.6m @ 5.47 g/t Au. Trench locations are laid out on a map in the full version of the press releasewhich can be found on the Company's website (www.avocet.co.uk). All trenchsamples are chipped channels with every effort made to collect an even sampleacross the strike of the vein sets. Trenching will continue within the main zone, as well as in the parallel faultzones, in order to investigate the full scale of the vein system and itsinternal fabric in preparation for drilling in 2007. While the trenchingprogramme has proven the existence of high-grade gold mineralisation oversignificant widths, drilling is required to prove up the continuity ofmineralisation. Exploration at Mangkaluku will take priority over additionalwork at Tarra-Siguntu. Avocet currently controls the project through a temporary exploration permit,which is a pre-cursor to the old Contract of Work tenement system. TheIndonesian Government is currently drafting a new Mining Law that will form theframework for exploration and mining tenements in the future. In the meantime,Avocet intends to use the Kuasa Pertambangan (KP) tenement structure to maintaincontrol over the South Sulawesi 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 Jonathan Henry (Chief Executive) Bobby Morse, Director 020 7907 9000 Ben Willey, Associate Director www.avocet.co.uk Tel: 020 7466 5000 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 Trench East North RL Trend Dip Length From To IntervalGrade CommentsID (m) (m) (m) (degrees) (degrees) (m) (m) (m) (m) (g/t Au) MLT006 182085 9665997 276 360 -35 75.0 68.3 69.0 0.7 10.3MLT007 182085 9665997 276 290 -5 63.0 57.0 61.0 4.0 2.42MLT011 181719 9666305 309 300 -5 24.0 21.0 24.0 3.0 1.82MLT016 181906 9665845 262 280 36.0 20.5 23.5 3.0 3.18 27.0 30.0 3.0 3.02MLT017 182046 9665820 249 210 -7 7.5 1.5 7.5 6.0 2.17MLT019 182073 9666029 303 330 -17 81.0 63.0 66.0 3.0 5.80 78.0 81.0 3.0 2.79MLT021 182214 9666031 258 120 -5 18.0 14.5 18.0 3.5 1.58MLT023 181935 9665853 256 180 -13 20.0 14.5 20.0 5.5 3.34 incl. 2.5m @ 6.62 g/t Au from 17.5mMLT024 181918 9665869 263 190 -20 49.3 0.0 7.6 7.6 5.47 incl. 1.1m @ 31.4 g/t Au from 0m 13.1 18.8 5.7 1.33MLT027 181897 9665780 289 320 -5 4.8 0.0 1.7 1.7 5.40MLT028 181952 9665743 271 50 -11 5.5 0.0 2.5 2.5 18.4MLT029 182066 9666048 338 135 20 229.5 18.4 20.5 2.1 2.90 50.0 54.0 4.0 1.88 66.0 69.0 3.0 3.35 83.0 90.6 7.6 2.17 118.0 151.2 33.2 8.20 incl. 12.1m @ 17.3 g/t Au from 139.1m 153.5 168.0 14.5 2.91 189.0 194.5 5.5 2.10 203.0 213.4 10.4 5.90 incl. 2.4m @ 16.3 g/t Au from 203mMLT030 181811 9665824 295 75 15 125.1 2.0 7.1 5.1 4.71 incl. 2.1m @ 10.6 g/t Au from 2m 44.6 52.7 8.1 2.66 55.7 58.1 2.4 2.19 69.9 78.3 8.4 0.94 87.5 93.7 6.2 4.74 98.9 101.9 3.0 2.72MLT031 181987 9665925 256 355 -20 5.8 0.0 5.8 5.8 2.45 incl. 2.4m @ 4.72 g/t Au from 0mMLT033 181521 9665920 310 322 -25 43.7 25.7 43.7 18.0 6.81 incl. 15m @ 7.83 g/t Au from 43.7mMLT034 181618 9666416 363 135 20 203.7 11.6 18.9 7.3 2.64 60.9 66.9 6.0 1.19 85.0 88.9 3.9 2.41 91.9 103.9 12.0 2.00 112.2 120.2 8.0 3.75 incl. 3m @ 6.03 g/t Au from 117.2m 156.9 158.9 2.0 2.67 192.0 195.1 3.1 2.34MLT035 181706 9666160 308 300 -20 38.4 7.0 10.3 3.3 1.83 34.0 38.4 4.4 1.92MLT036 182058 9665925 258 320 -22 48.9 0.0 7.7 7.7 1.13 35.8 43.0 7.2 1.04MLT037 182052 9665949 274 300 -20 101.5 6.0 9.0 3.0 4.66 42.7 48.2 5.5 1.58 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 0.5 g/t Au and include a maximum of 2m of internal waste "Collar" positions represent the start of each trench The trend/dip direction is main trend/dip of each trench, which are themselves of variable strike and dip This information is provided by RNS The company news service from the London Stock Exchange