The Timok Gold Project comprises several targets including Bigar Hill, Korkan and Kraku Pester. The Kraku Pester resource estimate is the last of three scheduled initial resource estimates.
Infill drilling at 40 meter by 40 meter spacing has now been completed at Korkan and Bigar Hill. Once all assay and QAQC data for the 40 meter by 40 meter drilling over the deposits has been received, the resource estimates will be updated with the aim of upgrading the estimates to Indicated Resources. The databases are expected to be completed and 'closed off' during February 2013 with revised resource estimates planned for completion in Q2 2013.
Avala controls 100% of this newly identified sediment-hosted gold belt which totals approximately 250 square kilometers.
1. HIGHLIGHTS-- Independent resource estimation has been completed by Chris Arnold MAusIMM CP(Geo) of AMC.-- The Kraku Pester resource estimate is based on 139 drill holes (38 diamond drill holes and 94 reverse circulation drill holes, including 7 RC holes with diamond drill core 'tails'). Details of the drilling and sampling program are summarised in the table below.----------------------------------------------------------------------------Item DD RC Total----------------------------------------------------------------------------HOLES 45 94 139METERS DRILLED 10,713 14,962 25,675SAMPLES 10,007 14,962 24,969AVERAGE RECOVERY 96% 86% 90%PRIMARY ASSAYS (Au) 10,007 14,962 24,969BULK DENSITIES 1,482TWIN DRILL PAIRS 7TWIN DRILL METERS 1,11140m x 40m (%) 86%------------------------------------------------------------------------------ A very large amount of check sampling and assaying has been completed, as part of Avala's standard QAQC procedures.-- Block model preparation and resource estimation has been completed using Datamine and Isatis. One-meter composites (the standard Avala sampling unit) were used to define geological boundaries and mineralized wireframes, whilst three-meter down hole composites were used for statistical analysis, variography and resource estimation.-- Resource estimation has been completed using the geostatistical technique, Local Multiple Indicator Kriging ("Local MIK"). Local MIK is a form of Multiple Indicator Kriging ("MIK") where the grades are 'mapped' directly into selective mining unit ("SMU") sized blocks from a MIK estimate. Bulk density has been estimated into the block model using inverse distance weighting. One main mineralized zone was defined; predominantly within the main sediment package with part of the mineralization being hosted in monzonite. A total of 11 indicator cut offs were used to define the metal distribution within the model cells. Statistical analysis of the composite grade distribution confirmed that the application of an upper cut was not required prior to grade estimation.-- The mineral resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The in-situ resource estimate is within the defined mineralized wireframes and is reported at a wide range of lower cut off grades. An initial, comprehensive, phase of metallurgical test work has been completed.2. ADDITIONAL INFORMATION
