BELLINGHAM, Wash., April 13, 2004 (PRIMEZONE) -- Avalon Gold Corporation (OTCBB:AVGC) reports an update relating to its 0.70% (.70 of 1%) proportionate, reducible, Gross Overriding Royalty interest in the LAK Ranch Oil Project located in Newcastle, Wyoming. This royalty interest equates to $0.21 per barrel based on a price of $30.00 per barrel for Avalon. Current estimates are that between 30 percent and 70 percent of the fields 100 million barrels of oil in place may be recovered using the thermal recovery techniques planned for the project. At current market prices the oil in place would generate between $USD840 million and $USD2 billion in gross revenue.
Ivanhoe Energy (USA) Inc. (Nasdaq:IVAN) who is the operator of the LAK Ranch Project has begun operations which include the installation and testing of the water disposal system (hydrocylones, walnut shell filter, piping etc.). Piping modifications, tank cleanout and lining out the electrical system are also being completed. A contractor has been retained by Ivanhoe to conduct a 3D seismic survey.
Ivanhoe's engineering staff is evaluating the usefulness of a real-time permanent tilt meter system to monitor the steam "chest" and return data with respect to natural fracturing and faulting; in addition to providing valuable engineering data, this leading-edge technology would act as an early warning system to prevent surface eruptions during steaming.
The plan is to steam and produce an existing horizontal well and drill five additional steam injection wells to provide continuous steam to the reservoir, which should allow more oil to be produced from the horizontal well. A hearing regarding the commencement of steaming is scheduled as required by the Wyoming Oil and Gas Conservative Commission in April.
Avalon Gold Corporation is an aggressive gold mining company focused on finding, exploring and developing exceptional gold properties internationally.
/s/ Robert Waters ---------------------- Robert Waters, President
For further information contact Joseph Beyrouti at: 1-888-488-6882 Visit our web site at www.avalongold.ws
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products and other risks detailed from time to time in Avalon's filings with the Securities & Exchange Commission.