Avalon delivers further promising drilling results
Approximately one month after releasing outstanding assay results from its Satulinmaki gold prospect in Finland, Avalon Minerals (ASX: AVI) has informed the market that it has identified multiple gold bearing structures within that region.
When news of earlier exploration success broke in mid-October the company’s shares surged 50%, and while the gold price fell sharply at the end of last week, these results could still draw a positive response.
It is worth noting that the company’s shares hit a high of 2.5 cents in the first half hour of trading, representing an increase of more than 4%. This compares with the circa 5% slide in the S&P/ASX All Ordinaries gold index (XGD).
Continuation of near surface intersections
One of the most impressive features of the first round of results was the fact that wide near surface intersections were identified including 83 metres grading 1.2 grams per tonne gold. Providing further confidence was the fact that the gold system was open in all directions, and as today’s data highlights this would appear to be part of a much larger gold system.
However, investors should note that AVI is a relatively early stage exploration company and investors considering this stock should seek professional financial advice and not base investment decisions on expectations regarding future exploration success alone.
The gold system remains open in all directions and management highlighted that highly anomalous results have been identified in historical drilling over an area of 700 metres x 500 metres.
Further drilling to occurring December/January
This has prompted the group to conduct a 3-D induced polarisation (IP) program followed by further drilling in December and January, providing the potential for further share price momentum.
Commenting on these recent developments, Avalon’s Chief Executive, Malcolm Norris said, “It is early days at Satulinmaki, but we are very encouraged by the multiple vein structures and the localised high grade intervals which indicate that we have a combination of thin north-east trending veins and thicker deeply plunging cigar shaped zones”.
It is worth noting that Geological Survey of Finland had previously identified high-grade intersections including 18 metres grading 4.1 grams per tonne from 50 metres downhole, including 3 metres grading 9.3 grams per tonne gold.
Consequently, there is significant evidence to support Norris’s belief that Satulinmaki could offer both near surface thick intersections, as well as high-grade ore in other parts of the deposit.