AVR: An Inexpensive Gold Producer

ERIC ZAUNSCHERB, Canaccord Genuity (01/29/2010)
"The attraction toward Avion Gold Corp. lies in management’s plans to upgrade production efficiency and throughput at its Segala and Tabakoto mines, thereby improving company value and reducing the considerable discount the company trades at relative to its peer group. Toward that end, the company recently increased its total Measured & Indicated mineral resources by 18%, to 1.43 million ounces at a grade of 3.71 g/t Au. Avion also completed the acquisition of an Inferred mineral resource, estimated at 324,000 oz Au, grading 3.92 g/t. These resources form the basis of the company’s goal to eventually increase production to 200,000 oz Au per year, which we have Avion doing by 2013. . .The 113% projected return continues to justify a SPECULATIVE BUY rating. Avion Gold remains one of the least expensive of the gold producers under our coverage. . ."

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