LONGUEUIL, QUEBEC -- (Marketwire) -- 01/14/13 -- Avala Resources Ltd. (TSX VENTURE: AVZ) (the "Company" or "Avala") is pleased to announce the initial resource estimate for the Kraku Pester project area, part of its Timok Gold Project, a new gold discovery in an emerging sediment-hosted gold belt located in Eastern Serbia.
The Kraku Pester National Instrument 43-101 compliant mineral resource, prepared by AMC Consultants Limited (UK) ("AMC"), an independent mining consulting firm, has been estimated, using a 0.6g/t gold cut off, at 6,320,000 tonnes grading an average of 1.31 g/t gold in the indicated resource category for 266,000 ounces of gold and 2,200,000 tonnes grading an average of 1.0 g/t gold in the inferred resource category for 68,000 ounces of gold. The combined inferred resources for Kraku Pester, Korkan and Bigar Hill have been estimated at 48,664,000 tonnes at an average grade of 1.5 g/t gold in the inferred resource category for 2,397,000 ounces of gold, using a 0.6 g/t gold cut off.
A summary of the Kraku Pester mineral resource estimate using various cut-offs is tabulated below:
---------------------------------------------------------------------------- KRAKU PESTER RESOURCE ESTIMATE(1,2,3,4,5) Combined Mineralized Zones In Situ Resources Local Multiple Indicator Kriging 5m x 5m x 5m Selective Mining UnitCut Off Grade Million Au Thousand(Au g/t) Tonnes (g/t) Ounces (Au)---------------------------------------------------------------------------- INDICATED RESOURCES----------------------------------------------------------------------------0.2 11.37 0.91 3320.4 8.93 1.07 3080.6 6.32 1.31 2660.8 4.63 1.54 2291.0 3.62 1.72 200---------------------------------------------------------------------------- INFERRED RESOURCES----------------------------------------------------------------------------0.2 8.1 0.5 1400.4 4.4 0.7 1040.6 2.2 1.0 680.8 1.3 1.2 491.0 0.7 1.4 32----------------------------------------------------------------------------1. The effective date of the Kraku Pester mineral resource estimate is 9th January 2013.2. The gold price used in this estimate was the mean gold price for 2010, 2011 and 2012 of US$1490/oz. First phase, extensive metallurgical test work has been completed and, based on information to date, along with possible projected throughput rates for the entire Timok Gold Project, typical mining costs and a range of processing costs and indicative processing suitable gold cut off grades are considered to lie in the range of 0.4g/t to 0.8g/t.3. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.4. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as indicated or measured mineral resources.5. Totals and average grades are subject to rounding to the appropriate precision.
