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AVOCET MINING - NEW INATA RESOURCE OF 1.84 MILLION OUNCES GOLD, 16% INCREASE AFTER ALLOWING FOR MINING DEPLETION AVOCET MINING PLC

Pressemelding   •   sep 07, 2010 09:10 CEST

NEW INATA RESOURCE OF 1.84 MILLION OUNCES GOLD, 16%
INCREASE AFTER ALLOWING FOR MINING DEPLETION

Avocet Mining PLC ("Avocet" or "the Company")
announces a new Mineral Resource of 1.84 million
ounces at Inata. The new Mineral Resource represents
a 8% increase over the previously published Mineral
Resource as at 31 December 2009, and an increase of
250,200 ounces or 16% in the global gold Mineral
Resource at Inata, after allowing for mining
depletion in the first half of 2010.

The new Mineral Resource is the result of relogging
and remodelling of previous drilling. Further
drilling of the deposit, which is planned to commence
later in September, is targeted at growing the
resource more significantly. The Company has a goal
to double Inata Ore Reserves by mid-2011 through a
major drilling campaign.

The new Mineral Resource represents an improvement in
the distribution of gold throughout the Inata
deposit, which is reflected in a slight increase in
the average gold grade, as suggested by mining to
date. This is also reflected in the increase in the
amount of Measured Mineral Resources reported. This
new Mineral Resource is expected to result in an
increase to the Ore Reserves, which remain under
review and will be reported in September. A positive
effect is also anticipated in the new life of mine
plan.

The table below reports the Mineral Resource above a
cut off of 0.5 g/t Au and beneath the 30 June 2010
topographic surface. The Mineral Resource announced
today is a rise of 143,000 ounces or 8% above the
previously announced resource as at 31 December 2009
of 32.1Mt @ 1.64 g/t Au for 1.69 million ounces (1.52
million ounces attributable). When cut by the 30 June
2010 surface, the previous resource becomes 30.8Mt @
1.60 g/t Au for 1.59 million ounces (1.43 million
ounces attributable), compared with which the Mineral
Resource reported today is 250,200 ounces or 16%
higher. The Mineral Resource has been estimated and
reported following the principles of the JORC Code
(2004).

Metric Grade Gold Attributable
tonnes (g/t Au) ounces ounces(1)

Measured 12,520,000 1.74 701,900 631,710
Indicated 12,820,000 1.48 608,800 547,920

Measured
+Indicated 25,350,000 1.61 1,310,700 1,179,630

Inferred 8,820,000 1.86 527,100 474,390

Total 34,170,000 1.67 1,837,900 1,654,110

(1) The Company owns 90% of Société des Mines de
Bélahouro, owner of the Inata Gold Mine.
Note: rounding errors may occur

The resource upgrade follows an extensive campaign of
re-logging of historic drill holes, detailed
geological modelling on site, and careful gold grade
estimation in conjunction with CSA Global Pty Ltd
(CSA Global) at their office in Perth, Australia.

The new Mineral Resource is constrained by several
carefully constructed wireframes based on the
geological controls on the deposit that have been
generated from the results of the re-logging
programme, grade control RC drilling and in-pit
mapping. Gold grades have been estimated by Ordinary
Kriging, while the previous Mineral Resource estimate
carried out in 2007 used Multiple Indicator Kriging.
Ordinary Kriging within the recently updated three
dimensional geological boundaries was chosen as the
preferred interpolation method by CSA Global because
it appears to match well with the geostatistical
behaviour of gold in the deposit, based on actual
mining and the data distribution in drill holes.

The new model has highlighted several areas where
further drilling has the potential to grow the
Mineral Resource and Ore Reserve more significantly.
Avocet is currently tendering for a 200,000-metre
drilling programme that will evaluate immediate
extensions to the Inata Mineral Resource, as well as
satellite deposits within 5 kilometres of the Inata
mill. This drilling programme will start in September
and is expected to be completed by June 2011. It will
form the basis for a resource upgrade that will be
reported in the third quarter of 2011.

Commenting on the Mineral Resource upgrade at Inata,
Brett Richards, Chief Executive Officer for Avocet,
stated:
"Further to the recently announced exploration
programme and mineralised drill intercepts at the
Souma Trend, where a maiden resource is expected in
October 2010, the increase in the Inata Mineral
Resource announced today confirms our belief that the
Wega Mining transaction would deliver more resource
ounces than reported at the time of its acquisition
in June 2009. It also shows the benefit of
comprehensive geological and geostatistical
modelling. We expect this to be the first in a series
of major resource increases in the coming years, as
we step up our drilling programmes."

The information in this announcement that relates to
Exploration Results is based on information reviewed
and audited by Mr Peter Flindel, (MAusIMM), Executive
Vice President of Exploration for Avocet, and the
information in this announcement that relates to
Mineral Resources is based on information compiled by
Mr David Williams (MAusIMM, MAIG), Principal
Consultant, CSA Global. Both Mr Flindell and Mr
Williams have sufficient experience which is relevant
to the style of mineralisation and type of deposit
under consideration to qualify as Competent Persons
as defined by the Australasian Code for the reporting
of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code 2004 Edition). Mr Williams
and Mr Flindell consent to the inclusion of the
technical information in this announcement in the
form and context in which it appears.

Source: Millistream