TORONTO (miningweekly.com) – Toronto-based Avion Resources has completed an updated mine plan for its Segala/Tabakoto mine and mill complex, which it believes will result in lower operating costs and improved revenue, compared with an earlier plan.

Avion, which bought the Tabakoto mine and nearby Segala deposit last year from fellow Canadian Nevsun Resources, aims to produce 66 000 oz of gold this year.

Nevsun began production at Tabakoto in June 2006, but failed to turn a profit at the mine, and finally placed it on care and maintenance in 2007, to allow the company to focus on its lucrative Bisha project, in Eritrea.

Avion restarted the crusher and mill earlier this month, processing stockpiles, which will be followed by openpit ore from Segala.

In the updated mine plan, the Segala open pits have been redesigned to reduce stripping ratios and increase the resource tonnage to be mined.

Different ramp designs and wall configurations have been engineered and the open pit production schedule has been refined with detailed pushback designs.

Altogether, the changes to the mine plan will reduce start-up capital expenditures by around $1-million, Avion sid.

The plans for underground mining remain essentially unchanged, although there has been a slight reduction in mineral resources owing to the increased tonnage mined by openpit.

Two consulting firms have been hired to further study underground mining and geotechnical aspects at Segala, and a new resource model, which will focus on developing the underground mining potential, is being developed for the Tabakoto deposit.

“Exploration drilling at Tabakoto has intersected numerous gold mineralized zones that display sufficient grades and widths to potentially support an underground mining operation,” the company said.

“Avion is optimistic that this opportunity will provide future growth for the company.”

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