Avocet Mining PLC (“Avocet” or “the Company”) announces significant results from the initial follow-up two holes drilled at the Koulékoun gold deposit (“Koulékoun”), in the 100 per cent owned Tri-K Block of permits that cover 986 square kilometres in northeast Guinea. The Tri-K Block of permits comprises the Kodiéran, Koulékoun and Kodiafaran prospects. Initial drilling results from over 4,000 metres of drilling were reported for the Kodiéran prospect, approximately 20 kilometres south of Koulékoun, on 28 February 2011.

The results and observations below will add to the existing Koulékoun Mineral Resource of 666,500 ounces.
Avocet has completed 27 reverse circulation (“RC”) drill holes (2,831 metres) and 24 RC holes with diamond tails (“RD”) (5,535 metres) on the Koulékoun deposit since the fourth quarter of 2010. Drilling is expected to continue until late April. To date, the Company has received results for the first two drill holes (Table 1 in attached press release), which have been drilled beneath the core of the presently defined mineralised zone, with the remaining results not expected until the second quarter. The highlights include:
·         KLRD0001: 34 m @ 2.57 g/t Au from 94 m (incl. 24 m @ 3.38 g/t Au) in wall rock strata
·         KLRD0001: 59 m @ 4.95 g/t Au from 277 m (incl. 38 m @ 7.22 g/t Au) in porphyry
·         KLRD0002: 91 m @ 2.75 g/t Au from 194 m (incl. 5 m @ 3.98 g/t Au, 4 m @ 5.46 g/t Au, 2 m @ 13.7 g/t Au, 2 m @ 18.0 g/t Au, 6.1 m @ 5.12 g/t Au & 11 m @ 3.32 g/t Au) in porphyry
Koulékoun has Indicated Mineral Resources of 12.7 Mt @ 1.55 g/t Au (632,000 ounces gold) and
Inferred Mineral Resources of 0.7 Mt @ 1.49 g/t Au (34,500 ounces gold) at a 0.5 g/t cut off based on 19,208 metres of closed-space RC and diamond drilling conducted by the previous owner, Wega Mining, during 2006, 2007 and 2008. The Mineral Resource is hosted in a 40-80 metre thick, steeply dipping zone of north-northwest striking porphyry dykes that has been tested over a strike length of 600 metres and to a vertical depth of 175 metres. The core of the presently defined mineralised zone occurs where a northeast striking structure intersects the porphyry dykes. Avocet is  drilling on 50 metre spaced east-west oriented fences to test the continuity of the resource over a strike length of 1,300 metres and to a vertical extent of 250 metres below surface.
The results from the first two holes are significant as they confirm that the main zone of porphyry-hosted gold mineralisation continues as a broad body to depth and that the general tenor of mineralisation remains in the 2 to 5 g/t Au range. Furthermore, the intersection of significantly mineralised wall rock strata in the hanging wall to the main zone along the northeast-striking structure adds a new zone of previously unrecognised mineralisation. To date, the drilling has also shown that there are several mineralised porphyry intrusions that are parallel to the main zone. 
A review of the drill chips and core has shown that gold mineralisation is associated with quartz-carbonate-pyrite-arsenopyrite veins and veinlets within broad zones of pervasive silicacarbonate altered porphyry. The mineralised rock is massive and relatively unfractured. The wall rock sequence of turbidites also hosts zones of disseminated arsenopyrite with some visible gold in quartz-carbonate veins in the hanging wall and footwall of the mineralized porphyry dykes.
Avocet is expecting to receive additional drilling  results in the coming weeks and plans to announce an updated Mineral Resource estimate for Koulékoun in Q2 2011.
Commenting on the initial drilling results at Koulékoun, Brett Richards, Chief Executive Officer for Avocet, stated:
“These early results indicate that Koulékoun is an  even more promising prospect than suggested by the historic drilling data. Avocet looks forward to publishing further drilling results and the resource update, due in the second quarter, which should show that we are well on the way to advancing this prospect towards the feasibility stage. Our drilling programmes in both Guinea and Burkina Faso have so far provided us with greater confidence that we have multiple gold targets with significant potential in West Africa, which we will continue to explore over the coming months.”
The information in this announcement that relates to Exploration Results is based on information reviewed and audited by Mr Peter Flindell (MAusIMM), Executive Vice President of Exploration for Avocet. Mr Flindell has sufficient experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Qualified Person as defined by the Canadian National Instrument 43-101 for the reporting of Exploration Results, Mineral Resources and Mineral Reserves (NI 43-101) and as a Competent Person as defined by the Australian  JORC Code (2004) for the reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Flindell consents to the inclusion of the technical information in this announcement in the form and context in which it appears.  All holes were angled at -55 degrees towards the west at an average depth of 350 metres with the deepest at 386 metres. Samples were submitted to SGS Laboratory in Siguiri, Guinea for Fire Assay using a 50 gram charge.
Notes
Avocet Mining PLC (“Avocet” or “the Company”) is a gold mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company’s principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine, the country’s largest gold producer) and Indonesia  (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).
In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P, a private company, for US$200 million. The transaction with J&Partners will leave Avocet as a West African gold producer with a clear strategy for growth in that region. Further details can be found in the press release dated 24 December 2010 and in the Company’s preliminary results statement for 2010, dated 22 February 2011.
Background to operations
The Inata deposit presently comprises a Mineral Resource of 1.84 million ounces and a Mineral Reserve of 1.08 million ounces. Inata poured its first gold in December 2009 and has now reached a production rate in excess of 13,500 ounces per month. Other assets in West Africa include exploration permits in Burkina Faso (the most advanced being the Souma trend at Bélahouro, some 20 kilometres from Inata, with a Mineral Resource of 561,100 ounces), Guinea and Mali (the most advanced being the Tri-K group of permits in Guinea with a Mineral Resource of 666,500 ounces).
Penjom is Malaysia’s largest gold mine and was developed by Avocet in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country’s capital, Kuala Lumpur.
North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage. The mine is located within a Contract of Work, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.    

Trading Idea: Firm to commence gold mining in Kenya

Stratex International Plc, the AIM-quoted gold exploration and development company focused on Turkey and East Africa, is pleased to announce its preliminary results for the year ended 31 December 2010.
Operational Overview

• Diverse portfolio of exploration and development projects across Turkey and East Africa
• Results from Feasibility Study at Inlice oxide gold project (‘Inlice’) in Turkey expected soon – indications are that the project is economically viable and near term production on track for 2012
• Revised resource from scoping study at Altintepe oxide gold project (‘Altintepe’) in Turkey expected Q2 2011
• Prospective portfolio of multi-stage exploration projects in Turkey with potential to offer significant value uplift
• Strong JV partners committed to developing licences further during 2011
• Formation of Stratex East Africa Limited (‘SEA’) to hold all Ethiopian and Djiboutian gold assets – David Hall to lead the development of SEA in new role as Executive Director East Africa
• Rapid expansion in East Africa – building land position in the Afar Depression straddling Ethiopia and Djibouti to 3,853 sq km – total East African land position increased to 7,018 sq km
• JV agreement with Thani Ashanti to fast-track 11 licences in the Afar Depression, the first move by a mining major into the region
• Results from 3,000m drilling programme at flagship Megenta discovery in Ethiopia anticipated mid 2011
• Encouraging results from initial exploration of Northern Ethiopian Arabian Nubian Shield prospects highlighting prospectivity of Tigray region

….read more HERE

Riverstone Resources Inc. (TSX-V: RVS) has received an independent resource estimate, which shows a substantial increase in the gold mineral resources at its flagship Karma project in Burkina Faso, West Africa. The NI 43-101 compliant resource estimate has increased the contained ounces of gold by 70% from the company’s initial estimate of May 2009. The total discovery cost of the increase in resources was less than $6 per ounce of gold.

HIGHLIGHTS

• Indicated gold resources are 810,600 ounces of gold in 22,845,000 tonnes at a grade of 1.10 g/t.
• In addition, the inferred gold resources are 1,119,100 ounces of gold in 44,110,000 tonnes at a grade of 0.79 g/t.
• The gold resources are at shallow depths and over 90% of the gold resource is within 150 metres from surface.
• Mineralization remains open at depth and along strike.
• The resource estimate only includes drill hole results received up to October 2010 and results of an additional 13,000 metres of drilling, completed since that time, are not included. Most of the newest drill results include significant mineralized intervals. Data from this and on-going drilling will be incorporated into the next resource estimate.
• The prospective Nami deposit drill results have not been included in this resource estimate.
• This is an interim estimate and will be updated again later in the year.Michael D. McInnis, President and CEO of Riverstone Resources commented “We are extremely pleased with the material increase in the gold resource at Karma. There is ample room to increase the gold resource and to establish Karma as one of the premier gold projects in West Africa. We are presently drilling with two rigs and plan to add up to three more rigs as they become available”.

The Karma project consists of four separate deposits, which are located close to each other. A summary of the resource estimates for each deposit is presented in the table HERE

Much more by Mining Journal special publication HERE

Gold’s continuous ten-year rise hasn’t sheltered it from controversy. Despite producing consistent returns in virtually all currencies year after year, some market pundits still question its validity as an asset class.