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Avnel Gold Mining Provides Exploration Update; Shares Up 22% Early Afternoon

Avnel Gold Mining Limited (AVK.TO) today reported on the status of its 387.4 sq km Kalana Exploitation Permit and its abutting 150 sq km Fougadian Exploration Permit in Mali.

Kalana Exploitation Permit

- 158,000 metres of diamond and RC drilling have been completed and fire assayed (using classical 50g fire assays)

- Well developed geological model demonstrates three main domains at the Kalana deposit which are potentially open pittable in a single pit to a depth of at least 150m (approximately 40-50% free digging)

- Expert consultant advice indicates that the assay protocol used by IAMGOLD underestimates the gold grade in the coarse nuggety gold deposit, and a limited assaying programme to optimize grade estimation is under review

- Prior to the automatic termination of its option agreement with Avnel in February 2013, IAMGOLD expended approximately $32 million generating a very extensive geological database significantly enhancing and progressing the potential for a bulk minable deposit

- Avnel has engaged Dundee Securities to assist in exploring all options available to maximize the value of the project

Fougadian Exploration Permit

Whilst work was suspended following the coup in Mali in March 2012 and with the onset of the rainy season, IAMGOLD has nearly completed a fully equipped exploration camp and infrastructure to commence an air core drilling programme.

Appointment of Dr. Olivier Femenias as Group Geology Manager

Avnel has appointed Dr. Olivier Femenias as Avnel's Group Geology Manager. Dr. Femenias was previously the IAMGOLD Project Geologist responsible for the exploration program at Kalana from 2009 to 2012.Â

Avnel is up 1 cents to 22.5 cents in early afternoon trade. Close to 70,000 shares have changed hands.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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