Gold

The setting of Avana’s Kenyan assets is the Proterozoic Lake Victoria Goldfield (within the eastern Congo Craton) of which the Kenyan section has been the least explored part of the goldfield – though Avana is now producing gold. Historically goldmines have operated in the area. The area is typical granite-greenstone terrain on the Tanzanian craton and is similar in age and style to Zimbabwe where over 6,000 gold discoveries were made over the past 150 years with some 20 mines with resources of over 1 million ounces.

CIP Plant and Identified Ores

Avana operates a carbon-in-pulp (CIP) gold processing plant on its mining license located in Sirongo, Siaya County, Kenya. The CIP pilot plant, which has a design capacity of 12 tonnes of ore per hour is producing doré gold, on average over 80% pure from the ore that Avana is recovering on its concession. The design capacity of the plant is 10 kg gold or over 320 ounces gold per month. Avana is intends to expand significantly ore extraction and doré production capacity in the near term.

Avana’s Kenya licenses include a range of gold-bearing ores. The vast majority is vein quartz. In addition there are colonial era tailings and colonial era waste sulphides.

Gold Appraisal and Exploration

Avana completed a 25 line km Induced Polarization (IP) survey over a large part of the Serawongo permit that identified 35 highly anamolous targets. This was complemented by a 3D dipole-dipole set up at 2 of the 35 highly anomalous targets identified as well as soil sampling, trenching, bulk sampling, spectral surveys using satellite imagery and laboratory analysis programs.

Work competed by the EY technical team on just 20% of the 35 anomalies, assuming 10 g/t gold, gives ~700,000 oz gold;  management estimates over 2 million oz

With the support of the IP survey, Avana has defined drill targets for its forthcoming 800m drill program which will help direct the Avana team in terms of its hard rock targets, allowing for the preparation of an up-to-date mine plan and completion of a resource statement as part of a CPR (competent person’s report) being put together by EY.