AVM.L Regulatory News (AVM)

28 Aug 2007 07:03

Avocet Mining PLC28 August 2007 AVOCET RECEIVES SIGNIFICANT DRILLING RESULTS FROM NORTH LANUT, INDONESIA Avocet Mining PLC ("Avocet" or "the Company") announces positive results fromrecent infill drilling at the Riska pit and nearby Effendi deposit at the NorthLanut gold mine in Indonesia. The drill programme was aimed at upgradingInferred Resources to Measured and Indicated status and evaluating areas notextensively drilled in the past, with the immediate goal of expanding reservesand extending the mine life. Tables 1 and 2 summarise the significant drilling intersections from the infillprogramme. The highlights include 53m @ 8.04 g/t Au (RSP277) and 119m @ 3.74 g/tAu (RSP274) at Riska and 111m @ 3.56 g/t Au (EFP295) and 25m @ 9.06 g/t Au(EFP315) at Effendi. Jonathan Henry, Chief Executive Officer, commented: "These drilling results will allow us to extend the mine life at North Lanut.This, combined with the ongoing feasibility work and further drilling at thenearby Bakan project and the recently acquired Banda exploration portfolio, giveAvocet an excellent platform for further organic growth in the South East Asiaregion and more particularly in Indonesia". The Company is currently refining the geological models in light of these newdrilling results and will produce revised resource models in the coming months.A revised reserve will be defined before the end of the year. ____________________________________________________________________________________________________________________ For further information please contact: Avocet Mining PLC Buchanan Communication Grant Thornton Corporate FinanceJonathan Henry, Chief Executive Officer Bobby Morse, Partner Fiona KindnessMike Norris, Finance Director Ben Willey, Director 020 7728 3414020 7907 9000 020 7466 5000www.avocet.co.uk www.buchanan.uk.com www.grant-thornton.co.uk Drillhole locations are shown in figures attached to the release on Company'swebsite. All holes were drilled using conventional reverse-circulation (RC)techniques with sample chips collected at one metre intervals and split into 5kgsub-samples for analysis at SGS Laboratories in Balikpapan, Indonesia. The Company completed 29 RC drillholes (3,584 metres) at Riska. While the highergrade intercepts noted above have confirmed the model and expanded the volume ofhigh-grade gold feeder zones, the more significant results are the broad low- tomedium-grade intercepts around the deposit core. These intercepts haveeffectively joined the northern section of the deposit to the main core andupgraded previously low-grade Inferred Resources and waste areas, particularlyalong the eastern flank of the deposit. We anticipate that these upgraded areaswill allow the Company to expand the reserves at Riska. At Effendi, Avocet completed 43 RC drillholes (3,694 metres). This programme hasexpanded the size of medium- to high-grade zones previously categorised asInferred Resources and excluded from the current reserve. This expansionincludes a deeper zone in the eastern part of Effendi that can now be upgradedto Measured and Indicated Resources and which should allow an expansion of thereserve. 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), and Indonesia (as 80% owner of the North Lanut gold mine andBakan project in North Sulawesi). The Company has a number of advanced miningand exploration projects in South East Asia and owns significant interests inDynasty Gold and Monument Mining, both Toronto Venture Exchange listed companieswith interests in Western China and Malaysia, respectively. 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. Table 1: Significant drillhole intercepts at Riska, North Lanut 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)RSP247 662540 74877 700 135 -60 100 13 99 86 1.44 Incl. 4m @ 7.64 g/t Au from 25m; and 11m @ 3.32 g/t Au from 49mRSP248 662516 74851 700 135 -60 90 10 25 15 0.95RSP249 662559 74859 701 135 -70 100 28 80 52 2.76 Incl. 4m @ 3.47 g/t Au from 31m; and 10m @ 10.2 g/t Au from 47mRSP250 662516 74816 699 135 -60 87 67 81 14 0.88RSP251 662475 74809 700 135 -60 105 61 82 21 0.61RSP252 662569 74834 701 135 -65 102 37 48 11 1.85 51 79 28 0.53RSP253 662596 74827 705 135 -60 85 54 73 19 0.60RSP254 662587 74851 701 135 -65 110 34 64 30 0.61RSP255 662609 74840 704 135 -60 90 38 68 30 0.65RSP256 662580 75021 713 135 -70 100 38 72 34 0.64 77 91 14 0.80RSP257 662520 74995 710 135 -70 117 12 38 26 0.66 61 98 37 0.69RSP258 662488 74993 710 135 -70 110 13 29 16 0.77 33 54 21 0.47RSP260 662439 74984 712 315 -60 105 0 35 35 1.84 Incl. 14m @ 3.72 g/t Au from 2m 53 74 21 0.65RSP261 662543 74982 710 135 -70 87 20 47 27 0.44RSP262 662573 74979 710 135 -75 105 9 19 10 2.01 Incl. 2m @ 7.17 g/t Au from 11m 31 88 57 0.71RSP263 662569 74905 701 135 -65 105 9 17 8 2.58 68 98 30 1.76 Incl. 4m @ 9.11 g/t Au from 94mRSP264 662498 74869 700 135 -60 87 0 32 32 1.45 Incl. 7m @ 2.06 g/t Au from 3mRSP265 662406 74897 705 135 -70 102 0 24 24 0.62 74 98 24 0.48RSP267 662573 74944 705 315 -60 111 0 16 16 3.18 Incl. 6m @ 7.94 g/t Au from 0m 68 103 35 0.62RSP268 662572 74944 705 135 -60 120 0 22 22 1.36 33 50 17 0.58 74 114 40 2.41 Incl. 3m @ 15.1 g/t Au from 75mRSP269 662539 74941 705 135 -60 117 0 106 106 4.06 Incl. 7m @ 5.67 g/t Au from 41m; and 25m @ 8.88 g/t Au from 74mRSP270 662534 74805 700 135 -65 75 0 20 20 0.54RSP272 662469 74920 705 135 -75 150 0 57 57 3.25 Incl. 27m @ 4.73 g/t Au from 0m; and 10m @ 3.49 g /t Au from 33m 60 114 54 1.56 Incl. 16m @ 3.10 g/t Au from 71mRSP273 662475 74926 705 315 -70 150 0 101 101 1.28 Incl. 11m @ 2.67 g/t Au from 2m; and 3m @ 3.68 g/ t Au from 73mRSP274 662446 74874 700 315 -65 150 0 119 119 3.74 123 131 8 2.09RSP275 662597 74806 696 135 -70 90 9 46 37 0.56RSP277 662404 74917 705 315 -70 129 0 73 73 1.21 Incl. 4m @ 3.22 g/t Au from 24m; and 7m @ 2.12 g /t Au from 49m 76 129 53 8.04RSP279 662371 74975 710 135 -65 87 40 57 17 2.43 Incl. 10m @ 3.38 g/t Au from 44mRSP280 662371 74976 710 315 -65 117 34 60 26 0.53 85 116 31 2.51 Incl. 10m @ 4.00 g/t Au from 103m Note: Individual gold assays have a top cut of 40 g/t Au for intercept calculations. All holes are drilled from surface using conventional reverse circulation drilling techniques. Table 2: Significant drillhole intercepts at Effendi, North Lanut 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)EFP284 662075 74337 738 315 -80 105 14 46 32 1.19EFP285 662100 74322 736 315 -70 117 18 63 45 1.20EFP289 662058 74281 708 309 -60 75 17 39 22 1.90 Incl. 8m @ 3.29 g/t Au from 28mEFP290 662087 74272 704 315 -59 80 3 61 58 2.51 Incl. 29m @ 4.05 g/t Au from 27mEFP291 662074 74268 705 315 -65 65 11 44 33 1.77 Incl. 8m @ 2.13 g/t from 14m; and 7m @ 3.79 g/t Au from 34mEFP292 662067 74261 703 315 -65 90 0 40 40 1.96 Incl. 12m @ 5.08 g/t Au from 25mEFP293 662115 74265 700 315 -60 95 12 51 39 0.62EFP295 662159 74299 696 315 -75 111 0 111 111 3.05 Incl. 40m @ 4.17 g/t Au from 31m; and 20m @ 5.22 g/t Au from 79mEFP296 662177 74314 693 225 -60 90 21 90 69 3.47 Incl. 31m @ 5.58 g/t Au from 39mEFP299 662032 74353 744 180 -65 129 28 56 28 0.68EFP300 661723 74397 770 135 -70 114 13 15 2 6.94 35 92 57 0.97EFP301 661740 74363 760 135 -65 81 3 12 9 2.13 28 55 27 0.85EFP304 661687 74372 765 135 -60 99 11 28 17 2.41 60 77 17 1.17EFP305 661682 74388 765 135 -70 77 7 19 12 1.54 Incl. 4m @ 2.62 g/t Au from 12m 48 76 28 1.49EFP306 661660 74374 757 135 -60 87 7 27 20 0.79 30 78 48 1.36 Incl. 7m @ 2.73 g/t Au from 71mEFP307 661653 74401 759 135 -60 87 45 78 33 2.57 Incl. 8m @ 8.72 g/t Au from 67mEFP308 661602 74384 746 178 -52 61 5 15 10 1.41 20 52 32 3.90 Incl. 13m @ 7.65 g/t Au from 39mEFP309 661621 74365 748 135 -65 61 38 53 15 3.14 Incl. 12m @ 3.83 g/t Au from 40mEFP311 661645 74353 747 135 -70 75 12 20 8 1.89 23 71 48 3.95 Incl. 36m @ 5.04 g/t Au from 29mEFP312 661560 74351 739 135 -60 35 14 24 10 2.46 Incl. 8m @ 2.85 g/t Au from 14mEFP313 661657 74301 735 135 -60 40 0 23 23 1.18EFP314 661656 74304 736 360 -60 63 0 19 19 2.96 Incl. 10m @ 4.18 g/t Au from 1m 32 63 31 4.75 Incl. 22m @ 6.30 g/t Au from 36mEFP315 661593 74317 736 135 -60 28 0 25 25 8.52 Incl. 18m @ 11.6 g/t Au from 4mEFP316 661622 74325 736 135 -70 45 7 41 34 3.18 Incl. 15m @ 4.74 g/t Au from 19mEFP317 661612 74349 743 135 -65 45 4 42 38 3.05 Incl. 31m @ 3.6 g/t Au from 9mEFP319 661694 74314 751 135 -60 60 0 40 40 0.81EFP320 662192 74261 684 315 -60 93 84 93 9 1.31EFP321 662169 74333 701 225 -60 111 15 111 96 2.03 Incl. 18m @ 3.33 g/t Au from 48m; and 12m @ 5.69 g/t Au from 88mEFP323 662145 74340 714 225 -60 108 56 106 50 0.91 Incl. 6m @ 3.26 g/t Au from 95mEFP326 662164 74362 710 225 -60 134 69 126 57 1.16 Incl. 11m @ 2.95 g/t Au from 90m Note: Individual gold assays have a top cut of 25 g/t Au for intercept calculations. All holes are drilled from surface using conventional reverse circulation drilling techniques. This information is provided by RNS The company news service from the London Stock Exchange