gold Bobby Yip/Reuters

(REUTERS) -- Avion Gold Corp lowered its production forecast for the year after it halted mill expansion plans at its Tabakoto mine in Mali due to a military coup.

West Africa-focused Avion now expects 2012 production of 90,000 to 100,000 ounces of gold, down from 140,000 to 150,000 ounces.

The company warned on Tuesday production could be cut for the year if the 4,000-tonne-per-day mill expansion project remains on hold for the rest of the year.

Avion, which holds 80 percent of the Tabakoto and Segala gold projects in Mali, said measured and indicated resources at the Tabakoto project rose 95 percent to 292,100 ounces of gold.

Measured and indicated resources are an initial estimate of a resource's size and serve as a basis for feasibility studies.

Resource grade rose 35 percent, the company said in a statement.

Avion Gold shares closed at 59 Canadian cents on Wednesday on the Toronto Stock Exchange. The stock has fallen nearly 64 percent in the past six months.