Aviva Corporation on track for maiden gold resource at Kakamega in West Kenya in first half of 2012

Aviva Corporation (ASX: AVA) continues to return encouraging gold hits in West Kenya with follow up drilling on the Bushiangala and Kimingini Prospects returning highlights of 7 metres at 8.29 grams per tonne (g/t) of gold from 98 metres and 9 metres at 12.71g/t from 139 metres, respectively.

Other highlights from Bushiangala include 17 metres at 7.20g/t gold from 25 metres.

The results support and build on the previous positive gold strikes of 5.6 metres at 3.73g/t gold from 44.4 metres at the Bushiangala Prospect announced by Aviva in August.

These latest intercepts are particularly encouraging as they suggest at least a 350 metre strike length of high grade intercepts in a sub vertical north to north-west trending corridor. The system appears open along strike and at depth.

The company has also received promising initial reconnaissance drilling results from the Bukura and Shitole prospects in the Kakamega Gold Camp.

Significant intersections include 57 metres at 0.67g/t gold from 49 metres at Bukura and 7 metres at 2.23g/t from 53 metres at Shitole.

Results have now been received from 32 of the 37 reverse circulation holes and 22 of the 31 diamond holes drilled in Kakamega Camp.

A total of 4,400 metres has been drilled in the Kakamega area. Total metres drilled to date on the joint venture area as a whole stands at 10,799 metres.

Reverse circulation drilling proved technically challenging in the Kakamega area where variable, deep weathering and deeper than expected mine workings led to a number of holes being abandoned prior to reaching targeted depth.

While this is encouraging for the gold endowment at Kakamega the reverse circulation rig was moved to the Lake Zone and drilling continues at Kakamega with two diamond drill rigs.

The bulk of the reverse circulation drilling campaign in the Lake Zone has now been completed for the year and the final results of the drilling, auger surveys and ground geophysics will be compiled to target further work next year.

A small reverse circulation/diamond drilling program will test down dip, along strike extensions to the Masumbi prospect.

An initial resource from the Kakamega Camp remains on target for the first half of 2012.


West Kenya JV

In July 2010 Aviva and AfriOre International, a Lonmin (LSE: LMI) subsidiary, signed a joint venture agreement under which Aviva can earn up to 75% of the West Kenya project through expenditure and completion of a Prefeasibility Study on any project on the licences demonstrating a pre-tax net present value of A$50 million.

Late last month Aviva announced it had earned a 51% interest in the joint venture in just over a year by meeting its obligation to spend US$3 million over three years.

Chief executive Lindsay Reed said at the time, “To achieve the expenditure in a little over 12 months is indicative of the outstanding results achieved to date and the prospectivity of the licenses.”

Reed told Proactive Investors the earn-in was achieved quickly because there are so many prospects on the license area ready for drill testing.

The company continues to meet milestones at pace on the project. In early September, within just eight months of the commencement of drilling, Aviva announced an initial Inferred JORC Resource of 1.68 million tonnes at 4% copper equivalent at the Bumbo base metal deposit.

Results are coming through for the most recent drilling campaign at Bumbo and an update will be released next week.

Metallurgical test work on two diamond cores is underway and will form the basis of a high level Scoping Study.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21538/aviva-corporation-on-track-for-maiden-gold-resource-at-kakamega-in-west-kenya-in-first-half-of-2012--21538.html