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Gold rush in Zagubica – Avala Resources from Canada invests additional USD 20 million by end of 2011

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Canadian company Avala Resources, which has found significant gold reserves on an area of 700 x 300 meters on the territory of the municipality of Zagubica, at the place called Korkan in Jasikovo exploration field, is going to invest additional USD 20 million in geological researches by the end of this year.

As the daily paper Novosti learns, the aim is that the reserves of this precious metal be definitely confirmed, that the size of the ore deposit be precisely defined and, finally, that the decision be made on whether it is profitable to open a mine in that location.

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– Avala Resources has already achieved positive results in its previous search for gold on this territory – says James Crombie, the President of the Canadian company.

– We will resume geological research this year.

According to the plan, Canadians will this year drill almost 80 km of exploration wells, most of which (69 km) in vicinity of Zagubica where six drilling sets will be used.

Let us remind that, by analyzing the contents of a well 220 meters deep in early November 2010, the Canadian company discovered that one ton of ore contained 4.3 g of gold. Drilling in the vicinity of the first well, the company then discovered that one ton of ore from the depth of 256 meters contained 22.4g of gold.

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In early February, working in another location that is not far away from the first well, the company discovered that one ton of ore from the depth of between 16 and 26 meters contained 3.22g of gold. By the way, the deposits with 2g of gold per ton of ore are considered as cost-efficient.


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