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Drilling and Sampling
-- Figure 1 shows the location of the Kraku Pester deposit within the Timok Gold Project, whilst Figure 2 displays the drilling carried out to date at Kraku Pester along with a gram-meter map of mineralization. Figure 3 shows a typical cross section through the Kraku Pester deposit, illustrating the near-surface, shallow dipping nature of gold mineralization. Drilling and sampling of the Kraku Pester deposit has utilised Avala's full set of detailed and extensive procedures.
Density Measurements
-- Density measurements are routinely taken every three meters down hole from diamond drill core. The bulk density of the core billets is measured at the SGS managed laboratory at Bor using the industry standard wax-seal immersion method.
Twin Drilling
-- Twin drilling has been routinely performed with some 7.4% of all RC holes being twinned with diamond drilling.-- At Kraku Pester 7 DD 'twin holes' have been completed, for 1,111 meters.-- The routine reverse circulation-diamond 'twin' drilling program continues to confirm that the majority of mineralized intercepts and hence the deposit style, is dominated by layer-parallel, lithology- controlled gold mineralization and that there can be close spaced variation in gold grade, as is typical for gold deposits.
Variography
-- Detailed variography has been carried out for six of the 11 indicator cut offs that have been used in the Local MIK grade estimation.
Grade-Tonnage Reporting
-- The Kraku Pester resource model has been categorized as Indicated and Inferred Resources using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines. The table below summarizes the grade-tonnage data for the Bigar Hill, Korkan and Kraku Pester deposits, subdivided by the principal interpreted mineralized zones.-- In the table below, the reported tonnes, grade and contained gold have been rounded to the appropriate level of precision for the reporting of Indicated and Inferred Resources, and the numbers may not correlate exactly due to rounding errors.-- A series of significant gold deposits has been defined at Kraku Pester, Korkan and Bigar Hill and Avala considers the potential for further discoveries in the Timok Gold Project to be very high.---------------------------------------------------------------------------- KORKAN, BIGAR HILL AND KRAKU PESTER INDICATED AND INFERRED RESOURCE ESTIMATE (1) Subdivided By Mineralized Zone Domain Local Multiple Indicator Kriging 5m x 5m x 5m Selective Mining Unit---------------------------------------------------------------------------- Andesite/Mozonite S1/LMST S1/S2 MMVO(2) MSSL MSSS(3) TOTALCut Off Grade Au Au Au Au(Au g/t) Mt (g/t) Moz Mt(g/t) Moz Mt (g/t) Moz Mt(g/t) Moz---------------------------------------------------------------------------- INDICATED RESOURCES---------------------------------------------------------------------------- KRAKU PESTER----------------------------------------------------------------------------0.2 4.17 0.87 0.12 7.20 0.93 0.22 11.37 0.91 0.330.4 3.16 1.05 0.11 5.77 1.09 0.20 8.93 1.07 0.310.6 2.27 1.26 0.09 4.05 1.34 0.17 6.32 1.31 0.270.8 1.68 1.46 0.08 2.96 1.58 0.15 4.63 1.54 0.231.0 1.29 1.64 0.07 2.33 1.76 0.13 3.62 1.72 0.20---------------------------------------------------------------------------- INFERRED RESOURCES---------------------------------------------------------------------------- KRAKU PESTER----------------------------------------------------------------------------0.2 5.7 0.5 0.1 2.4 0.5 0.0 8.1 0.5 0.10.4 3.1 0.7 0.1 1.3 0.7 0.0 4.4 0.7 0.10.6 1.6 0.9 0.0 0.6 1.0 0.0 2.2 1.0 0.00.8 0.9 1.2 0.0 0.4 1.2 0.0 1.3 1.2 0.01.0 0.5 1.4 0.0 0.2 1.5 0.0 0.7 1.4 0.0---------------------------------------------------------------------------- KORKAN----------------------------------------------------------------------------0.2 1.5 0.4 0.0 41.6 0.9 1.2 6.4 0.6 0.1 49.5 0.8 1.30.4 0.7 0.6 0.0 27.3 1.2 1.0 2.9 1.0 0.1 31.0 1.2 1.20.6 0.2 0.7 0.0 18.3 1.5 0.9 1.6 1.3 0.1 20.1 1.5 1.00.8 0.0 0.9 0.0 12.5 1.9 0.8 1.0 1.8 0.0 13.5 1.9 0.81.0 9.4 2.3 0.7 0.6 2.3 0.0 10.0 2.3 0.7---------------------------------------------------------------------------- BIGAR HILL----------------------------------------------------------------------------0.2 4.1 0.6 0.1 25.2 0.6 0.5 34.6 1.0 1.2 63.9 0.9 1.80.4 2.2 1.0 0.1 13.2 1.0 0.4 22.7 1.4 1.1 38.0 1.3 1.50.6 1.4 1.2 0.1 8.0 1.3 0.3 17.0 1.8 1.0 26.4 1.6 1.40.8 1.0 1.4 0.0 5.5 1.6 0.3 14.0 2.0 0.9 20.5 1.9 1.21.0 0.7 1.7 0.0 4.0 1.8 0.2 11.9 2.2 0.8 16.5 2.1 1.1---------------------------------------------------------------------------- TOTAL INFERRED RESOURCES----------------------------------------------------------------------------0.2 11.3 0.6 0.2 66.7 0.8 1.7 43.5 0.9 1.3 121.5 0.8 3.20.4 6.0 0.8 0.2 40.5 1.1 1.5 26.9 1.4 1.2 73.4 1.2 2.80.6 3.2 1.1 0.1 26.2 1.5 1.2 19.2 1.7 1.1 48.7 1.5 2.40.8 1.9 1.3 0.0 17.9 1.8 1.1 15.3 2.0 1.0 35.2 1.9 2.11.0 1.2 1.6 0.0 13.3 2.1 0.9 12.7 2.2 0.9 27.2 2.1 1.9----------------------------------------------------------------------------1. See notes on page 1-2.2. For Kraku Pester the proportion of the resource that is hosted in monzonite is reported here.3. For Kraku Pester, the remainder of the deposit (dominantly sediments with minor volcanics) is reported here.
