Gold Exploration in West Africa

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NEW IPO: Avnel Gold (reopening Kalana in Mali)

Below is an article, plus stock IPO information on Avnel Gold Mining Ltd.

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Kalana gold mine reopening in Mali

MINING REVIEW-AFRICA May 11, 2005

Dowding, Reynard and Associates (DRA) has almost completed phase 1 of the reopening of Kalana Mine, some 300 km south of Bamako in Mali. This plant, much of which is housed in enclosed buildings, was originally built in 1985 with the assistance of the former Soviet Union. It operated until 1991 and at its peak produced 500 kg of gold annually. The mine has measured, indicated and inferred underground resources of 944,070 ounces (2.9 million tonnes at 10 g/t). Kalana is owned by Avnel Gold (80%) and the Malian Government (20%).

Phase 1 of the project involved the reconstruction of the plant using, at the client’s request, as much of the original equipment as possible to recover gravity gold. Fabrication began in April 2003 and at that time the orders for long lead items including the cone crusher, Knelson concentrator, MCCs, screens and winder equipment were placed. All electricals on the mine will be refurbished to South African standards and DRA Technical Services will upgrade the winders on both shafts. Infrastructure, built by the Russians, was still in good condition.

The new Knelson concentrator will recover gold from the ground ore. Coarse tails will be stockpiled for re-processing and fine tails will be pumped through to the thickener and on to the original tailings dam also for future reprocessing.

Procurement and fabrication were completed in South Africa in August and shipped to site in Mali where DRA crews are proceeding with construction. The plant will be commissioned at the end of November at a feed rate of 5,000 tpm through the existing mill.

It is envisaged that phase 2 of the Kalana project will be the construction of a full carbon-in-leach (CIL) plant with a designed throughput of 200,000 tpm of ROM ore. During 2004 a feasibility study will be completed by Avnel.

DRA specialises in providing technologically advanced mineral processing plants and engineering services and undertakes all aspect of plant design from initial testing and piloting to final commissioning, plant extensions, upgrades and operations.
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For a picture of the plant, see:
http://www.transportandconstruction.co.za/press/press200070.html
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Stock IPO Information from:
http://ipo.investcom.com/cgi-bin/ipodetails.cgi?ID=1&string=Avnel+Gold+Mining+Ltd&exact=yes&...

AVNEL GOLD
Underwriters : Credifinance Securities Ltd.
Issuer's Law Firm : Blake, Cassels & Graydon LLP
Underwriter's Law Firm : Heenan Blaikie
Auditor : Moore Stephens
Transfer Agent : Computershare Trust Company of Canada

Company profile:

Company Name : Avnel Gold Mining Ltd.
Address : 7 New Street, St. Peter Port, Guernsey, GY1 4BZ

Date of Formation : February 18, 2005

Management & Directors :
Roy Meade - Chief Executive Of?cer and Executive Director
William J. Smith - Chief Financial Officer
Anthony M. Bousfield - Director
Ibrahim Kantao - Director
John Kearney - Director
Derek Kyle - Director
Howard B. Miller - Director and Chairman of the Board of Directors
Catherine Paul-Reynaud - Director
Jonathan D. Pollock - Director
Jonas U. Rydell - Director

Business Description :
Avnel Gold Mining Limited was incorporated under The Companies (Guernsey) Laws 1994 to 2001, on February 18, 2005 for the purpose of becoming the holding company for, and to carry on the business of, Avnel Gold, Limited, a company incorporated under the laws of the Cayman Islands. Avnel Cayman is a gold company whose principal asset is an 80% interest in Société d'Exploitation des Mines d'Or de Kalana ("SOMIKA"). SOMIKA is the owner and operator of the Kalana Gold Mine located in the southwest of Mali, West Africa and is the holder of the Kalana exploration and exploitation permit. SOMIKA recommissioned the Kalana Gold Mine at the end of 2003 and achieved commercial gold production in March 2004.

Company Financials :
Fiscal Year-End : December 31
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From Ontario Securities Commission Bulletin Issue 28/09 - March 04, 2005
IPOs, New Issues and Secondary Financings

Issuer Name:
Avnel Gold Mining Limited

Type and Date:
Preliminary Prospectus dated February 23, 2005
Receipted on February 24, 2005

Offering Price and Description:
$ * - * Common Shares Price: $ * per Common Share

Underwriter(s) or Distributor(s):
Credifinance Securities Limited

Promoter(s):
Elloitt Associates L.P.
Hamelon Inc.
Merlin Group Securities Limited

Project #741575

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