Avino Operational Update & Q3 Production Report
October 24 2012 - 8:00AM
Marketwired Canada
Avino Silver & Gold Mines Ltd. (TSX VENTURE:ASM)(NYSE
MKT:ASM)(BERLIN:GV6)(FRANKFURT:GV6) ("Avino" or "the Company") is pleased to
announce the following operational update and third quarter production results
from its Avino's mine operation located near Durango, Mexico.
San Gonzalo Mine
On October 1st, Avino began processing high grade San Gonzalo material using the
250 tonne per day ("TPD") circuit at the Avino milling complex. This development
represents a significant milestone for the Company and is the successful outcome
of five years of hard work and planning. It's anticipated that in the coming
years, mining and milling of San Gonzalo material will be ongoing.
Exploration began at San Gonzalo in 2007. Promising drill results and
preliminary metallurgical test work prompted Avino to begin underground
development and configuration changes to the mill in 2008. In 2011, Avino
completed at 10,000 tonne bulk sample program to confirm grades and recoveries.
Material for the bulk sample was extracted from level two of the mine. Feed
grades for the bulk sample were 261 g/t silver, 0.9 g/t gold with recoveries of
76% and 59% respectively. Following the bulk sample, a positive production
decision was made and underground development and mining continued. Sufficient
material to support an ongoing operation of 250 TPD was stock piled at the
surface by the end of September.
The grade at San Gonzalo is significantly higher than that of the ET stock piles
reported in the production figures below. Avino expects that grades and
recoveries will improve at lower levels of the mine as the vein extends below
the oxidized zone near the surface. Silver assay results from 2007 drilling
around the fourth and fifth levels of the mine produced a number of core
intercepts (down hole) greater than 1,000 g/t Ag, some reaching as high as 5,265
g/t Ag, over 0.65 m; independently verified metallurgical test work on the core
from the deeper levels yielded recoveries of 89-90% for silver and 92-93% for
gold.
Mine development during September focused on the ramp from level 4 to level 5 as
well as drifting along the vein in level 4 to the East and West. Total
development for the month was 209.8 metres. Of this total, 109.4 metres was for
the advance on the ramp and the balance for the work on level 4.
Historical ET Stockpiles
With San Gonzalo now online, the milling of ET stockpiles will be put on hold
until the 1,000 tpd milling circuit is brought online in 2013. Production
results from the ET stockpiles during the 3rd quarter ended September 30, 2012
are as follows:
Selected Monthly Production figures for quarter 3 ended September 30, 2012
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Total/
July August September Average(i)
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Total mill feed - tonnes (dry) 6,052 6,528 7,435 20,015
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Feed grade Silver - g/t 71.74 77.37 71.74 73.58(i)
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Feed grade Gold - g/t 1.36 1.06 0.86 1.08(i)
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Feed content Silver - kg. 434.19 505.10 533.38 1,472.7
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Feed content Gold - g. 8,242 6,922 6,404 21,569.0
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Bulk concentrate - tonnes (dry) 84.90 115.44 123.62 323.96
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Bulk Concentrate grade Silver - g/t 2,991 3,015 2,983 2,997(i)
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Bulk Concentrate grade Gold- g/t 49.47 33.79 30.85 36.82(i)
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Recovery Silver - % 58.50% 68.90% 67.70% 65.4%(i)
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Recovery Gold - % 51.00% 56.40% 58.50% 54.9%(i)
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Mill availability - % 95.03% 97.03% 97.57% 96.5%(i)
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Total silver ounces produced 8,164 11,189 11,671 31,024
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Total gold ounces produced 135 125 121 381
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Total Silver Equivalent oz's produced 14,914 17,439 17,721 50,074
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(Silver equivalent calculated using a 50:1 ratio for silver to gold, Q3
figures have been rounded for clarity)
-- Tonnes milled in September increased by 907 tonnes over August due to a
finer crush to the ball mill. Average tonnes milled per day in
September were 248 compared to 211 in August and 195 in July.
-- Feed grade for gold decreased over the third quarter.
-- Gold and Silver recoveries improved in August and September compared to
the July results.
-- Silver production in August and September increased over July while the
gold production decreased due to the lower feed grade.
-- Concentrate produced in September was shipped in the first week of
October. The weight of this shipment totalled 148.33 wet metric tonnes.
Assays of this shipment will be available shortly.
ET (Avino)
Avino is pleased to report it has received the environmental permit to allow the
Company to restart underground operations and run the 1,000 tpd circuit in the
mill. The permit has conditions to which the Company will comply and is valid
for 13 years.
Construction of the water treatment plant has been completed and water testing
has commenced with the goal of increasing the pH to meet agricultural standards.
Once the water has been treated it will be pumped to the El Caricol dam on the
property and used for milling as well as for irrigation of local farms.
Technical Report
Avino has commissioned an independent engineering firm to assemble a new
property wide technical report that will include new resources estimate for San
Gonzalo and Elena Tolosa. At the time of this release, Avino had provided the
engineering firm with all of the relevant data to proceed with the report. The
Company is hopeful that the completed report will be received by the end of
2012.
QA/QP
Mill assays are performed at the lab onsite at the mine. Check samples are
verified by SGS labs in Durango, Mexico. Avino's projects are under the
supervision of Chris Sampson, P.Eng., B.Sc., ARSM Avino Consultant and Mr.
Jasman Yee, P.Eng., Avino director, who are both qualified persons within the
context of National Instrument 43-101. Both have reviewed and approved the
technical data in this news release
About Avino
Founded in 1968, Avino's mission is to create shareholder value through
profitable organic growth at the historic Avino property near Durango, Mexico.
We are committed to managing all business activities in an environmentally
responsible and cost-effective manner, while contributing to the well-being of
the community in which we operate.
Our primary goal is to become a significant low cost primary silver producer.
Our specific objectives are to achieve full time commercial production as soon
as possible, expand resources, reserves and the mines output as well as to
identify, explore and develop new targets on the property.
ON BEHALF OF THE BOARD
David Wolfin, President & CEO
Safe Harbor Statement - This news release contains "forward-looking information"
and "forward-looking statements" (together, the "forward looking statements")
within the meaning of applicable securities laws and the United States Private
Securities Litigation Reform Act of 1995, including our belief as to the extent
and timing of various studies including the PEA, and exploration results, the
potential tonnage, grades and content of deposits, timing and establishment and
extent of resources estimates. These forward-looking statements are made as of
the date of this news release and the dates of technical reports, as applicable.
Readers are cautioned not to place undue reliance on forward-looking statements,
as there can be no assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will occur or that
plans, intentions or expectations upon which the forward-looking statements are
based will occur. While we have based these forward-looking statements on our
expectations about future events as at the date that such statements were
prepared, the statements are not a guarantee that such future events will occur
and are subject to risks, uncertainties, assumptions and other factors which
could cause events or outcomes to differ materially from those expressed or
implied by such forward-looking statements.
Such factors and assumptions include, among others, the effects of general
economic conditions, the price of gold, silver and copper, changing foreign
exchange rates and actions by government authorities, uncertainties associated
with legal proceedings and negotiations and misjudgments in the course of
preparing forward-looking information. In addition, there are known and unknown
risk factors which could cause our actual results, performance or achievements
to differ materially from any future results, performance or achievements
expressed or implied by the forward-looking statements. Known risk factors
include risks associated with project development; the need for additional
financing; operational risks associated with mining and mineral processing;
fluctuations in metal prices; title matters; uncertainties and risks related to
carrying on business in foreign countries; environmental liability claims and
insurance; reliance on key personnel; the potential for conflicts of interest
among certain of our officers, directors or promoters of with certain other
projects; the absence of dividends; currency fluctuations; competition;
dilution; the volatility of the our common share price and volume; tax
consequences to U.S. investors; and other risks and uncertainties. Although we
have attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results not
to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. We are under no obligation to update or alter any forward-looking
statements except as required under applicable securities laws.
Cautionary Note to United States Investors - The information contained herein
and incorporated by reference herein has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the requirements of
United States securities laws. In particular, the term "resource" does not
equate to the term "reserve". The Securities Exchange Commission's (the "SEC")
disclosure standards normally do not permit the inclusion of information
concerning "measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute "reserves" by SEC
standards, unless such information is required to be disclosed by the law of the
Company's jurisdiction of incorporation or of a jurisdiction in which its
securities are traded. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their existence and
great uncertainty as to their economic and legal feasibility. Disclosure of
"contained ounces" is permitted disclosure under Canadian regulations; however,
the SEC normally only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and grade without
reference to unit measures.
FOR FURTHER INFORMATION PLEASE CONTACT:
Avino Silver & Gold Mines Ltd.
David Wolfin
President & CEO
604-682-3701
604-682-3600 (FAX)
ir@avino.com
www.avino.com
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