Avalon delivers further promising drilling results

By Trevor Hoey. Published at Nov 14, 2016, in Juniors

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.

As indicated below the thick intersection, near surface trend is evident in all seven holes drilled.

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.

tags

Gold

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn