Shares in Avalon Minerals spike 20% on exploration news
Avalon Minerals (ASX:AVI) has identified a significant gold system at its Satulinmaki prospect in Finland. AVI’s chief executive, Malcolm Norris was buoyed by assay results from a recent drilling campaign, saying, “We have identified a large mineralised system that comprises both thick, near surface, lower grade intervals and narrower, at and near surface, high grade intervals”.
The following highlights the key drilling data:
Promising results given early stage nature of exploration
While acknowledging the company’s exploration initiatives are at an early stage, Norris said that even after drilling only seven holes there is evidence of the potential for a large mineralised body. Of particular note was the fact that the rocks are very altered, containing sulphides that can be mapped using geophysics.
As stated, exploration is still in its early stages and as such anything can happen. If you are considering this stock for your portfolio, seek professional financial advice.
Providing further confidence regarding the potential for a larger system is the fact that mineralisation delineated to date is open in all directions with the geophysical anomaly at least 750 metres in length.
There is the potential for further positive news flow from AVI with management having sourced historical government drilling data at the prospect. The company has subsequently relogged several holes and sampled a number of intervals that were previously not sampled and those assays are also pending.
Norris said that follow-up drilling is expected to commence in December. In the interim, mineralisation from three drill holes completed at the company’s Riukka prospect, located 4 kilometres to the south-east of Satulinmaki (as seen below) is currently being logged and sampled.
Those holes intersected quartz veins down dip from quartz vein hosted gold mineralised intervals drilled by the Finnish Geological Survey which contained up to 2 metres grading 16.6 grams per tonne gold.