NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, June 13, 2016 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX.V,
ASM: NYSE - MKT; "Avino" or "the Company") announces the
following updates from its Avino property in Durango, Mexico.
Avino is pleased to report that the newly constructed dedicated
power line to the mine site was energized and tested on
June 8th during management's visit.
The test was successful and the line is now fully functional at the
design capacity of 5 megawatts ("MW"). Current power consumption at
the mine is approximately 2MW, leaving sufficient additional power
for near-term expansion projects that are currently being
organized, such as the Oxide Tailings Heap Leach/Merril-Crowe
Precipitation Project (which would require 1 MW) and a possible
expansion of the processing plant, which would require a further 1
MW. Additionally, the existing power line will be left in place to
service local communities and provide backup power for the
mine.
"We are thrilled to have the ability to continue expanding our
operations in these rising metals markets. The new powerline
provides enough energy to power our existing operations, the future
oxide tailings resource operation, as well as another near-term
expansion at the mill, leaving 1 MW of excess capacity for further
expansion".
- David Wolfin,
President, CEO & Director
In addition, the Company has received all necessary permits to
build the new tailings storage facility ("TSF"), and construction
planning with the contractor is underway. A new tailings storage
facility is necessary to allow the existing TSF to be
decommissioned, which will enable Avino to begin assessing the
upper sulphide bench as well as the lower oxide bench in areas that
are currently being used to store tailings from our active
operations.
The assessment work is part of the recommendations contained in
the 2013 Tetra Tech Preliminary Economic Assessment ("A
Technical Report on the Avino Property") intended to advance
the tailings resource towards a production decision for a
Merrill-Crowe precipitation heap leach operation. The 2013
Preliminary Economic Assessment suggests that the operation could
have an IRR and NPV of 54% and $38.6
million, respectively, using US$20.38 per ounce for
silver and US$1,256 per ounce for
gold; and could add an additional 1.4 million ounces of silver
equivalent to Avino's consolidated annual production for a period
of 5 years.
In order to get a head start on the assessment work, in
November, 2015, Avino began a program of sampling the lower oxide
bench in areas not currently in use. The program consisted of using
a hydraulic drill with a two metre split spoon auger to drill
vertical holes to a depth of 20 to 30 metres; 12 holes were drilled
by the end of 2015 totaling 227 metres. By the end of February,
2016, a further 40 holes had been drilled totaling over 650 metres;
assays have been received and are currently being compiled.
Once the new TSF is completed, Avino will decommission the
current TSF, then begin installing wells which will be used to pump
out the retained water in the dam. This will speed up the sonic
drilling program planned for the upper benches, provide samples for
the metallurgical program, and increase confidence in the oxide
resource located below the sulphide tailings.
A preliminary economic assessment should not be considered to
be a prefeasibility or feasibility study, as the economics and
technical viability of the Project have not been demonstrated at
this time. The preliminary economic assessment is preliminary in
nature and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. Furthermore, there is no certainty that the preliminary
economic assessment will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic
viability
Data disclosed in the 2013 technical report by Tetra Tech: A
Technical Report on the Avino Property. Michael O'Brian, M.Sc.,Pr.Sci.Nat, FGSSA,
FAusIIM, FSAIIM,Hassan Ghaffari, P.Eng., JacquesOuellet, P.Eng.,
Ph.D., Monica Danon-Schaffer, Ph.D,
P.Eng., Sabry Abdel Hafex, Ph.D., P.Eng and Wayne Stoyko, P.Eng., are the Qualified Persons,
as defined under National Instrument 43-101, who supervised and are
responsible for the Technical Report on the Avino Property
Qualified Person(s)
Avino's Mexican projects are under the supervision of
Chris Sampson, P.Eng, Avino
consultant, and 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
production data in this news release.
Avino
Avino is a top-tier, low-cost junior producer. Avino's mission is
to create shareholder value through profitable organic growth at
the historic Avino property near Durango,
Mexico, and the Bralorne property in southwestern
British Columbia, Canada. We are
committed to managing all business activities in an environmentally
responsible and cost-effective manner while contributing to the
well-being of the communities in which we operate.
On Behalf of the Board
"David
Wolfin"
________________________________
David Wolfin
President & Chief Executive Officer
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Avino Silver & Gold
Mines Ltd.