Toronto-based Avion Resources, which started producing its first gold this year from operations in Mali, sees itself as a potential consolidator of gold assets in West Africa, and is aiming to reach annual production of half a million gold ounces within four or five years, chairperson Stan Bharti said last week.

Avion bought the then shuttered Tabakoto mine and the nearby Segala deposit last year from fellow Canadian Nevsun Resources, and declared commercial production at the now combined operation earlier this month.

The company expects to produce 66 000 oz this year, and 100 000 oz in 2010, but is already studying a potential expansion to double the processing capacity at Tabakoto, which would bump production up to 200 000 oz/y, as early as 2011.

Last week, Avion published new openpit and underground resource figures for Tabakoto and Segala, which now total 10,82-million tons, grading 3,48 g/t gold and totalling 1,21-million ounces of gold.

Inferred resources stand at 10-million tons, grading 3,5 g/t gold and totalling 1,39-million ounces of gold.

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.

The big challenge with the Mali assets was “proving they could work”, particularly as investors  could not help but be reminded of Nevsun’s experience with the operations, Bharti commented.

“But I think we are now pretty confi- dent that this asset works. The recoveries are good, the grades are as forecast, the mill is working fine and there have been no negative surprises so far.”

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