NYSE MKT: ASM
TSX-V: ASM
Berlin & FSE: GV6
VANCOUVER, Sept. 26, 2016 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX-V,
ASM: NYSE-MKT; "Avino" or "the Company") is pleased to announce
the completion of an updated NI 43-101 compliant resource estimate
from the Company's Avino Property located near Durango in
west-central Mexico. The new
estimate encompasses the property's San Gonzalo Mine, the main
Avino Mine system, and the property's oxide tailings. The estimates
have been included in an updated NI 43-101 compliant technical
report prepared by QG Australia Pty Ltd., and this report will be
available on SEDAR within 45 days.
"This new resource estimate highlights the important progress
we've made since the last resource estimate" said Avino President and CEO, David Wolfin. "During the past ten years, our
mine site exploration efforts have been successful, consistently
identifying new resources."
Mr. Wolfin noted that the Company's investment in resource
expansion will continue to grow. "Exploration and development
spending at Avino's Mexico
operations has averaged $4.6 million
annually since 2006," he said. "Going forward, we will continue our
efforts to expand and further define resources at the Avino mine
while conducting exploration on strategically located targets
through the entire Avino property."
The following is a summary of current resources at the San
Gonzalo and Avino Mines, as well as
the updated oxide tailings resource, grouped into the measured,
indicated and inferred categories. The effective date of the
resource estimates is August 31,
2016.
The resource estimates were prepared by Michael O'Brien P.Geo., Pr.Sci.Nat., who is a
"Qualified Person" within the meaning of National Instrument 43-101
and who is an employee of QG Australia Pty Ltd (an ARANZ Geo
Company) and independent of Avino, as defined by Section 1.5 of NI
43-101.
Table 1 – Summary of Resources for the Avino Property,
Durango, Mexico
Measured &
Indicated Mineral Resources
|
Grade
|
Metal
Contents
|
Resource
Category
|
Deposit
|
Cut-off
(AgEQ
g/t)
|
Metric
Tonnes
|
AgEQ
g/t
|
Ag
g/t
|
Au
g/t
|
Cu%
|
Ag
Million
Tr Oz
|
Au
Thousand
Tr Oz
|
Cu T
|
Measured
|
Avino
System
|
55
|
950,000
|
143
|
74
|
0.33
|
0.69
|
2.3
|
10.0
|
6,550
|
Measured
|
San
Gonzalo
System
|
125
|
170,000
|
357
|
272
|
1.50
|
0.00
|
1.5
|
8.2
|
0
|
Total
Measured
|
All
Deposits
|
|
1,120,000
|
176
|
105
|
0.51
|
0.58
|
3.8
|
18.2
|
6,550
|
Indicated
|
Avino
System
|
55
|
500,000
|
129
|
68
|
0.36
|
0.56
|
1.1
|
5.7
|
2,800
|
Indicated
|
San
Gonzalo
System
|
125
|
320,000
|
310
|
237
|
1.30
|
0.00
|
2.4
|
13.3
|
0
|
Indicated
|
Oxide
Tailings
|
50
|
1,330,000
|
124
|
98
|
0.46
|
0.00
|
4.2
|
19.8
|
0
|
Total
Indicated
|
All
Deposits
|
|
2,150,000
|
152
|
111
|
0.56
|
0.13
|
7.7
|
38.8
|
2,800
|
Total
Measured &
Indicated
|
All
Deposits
|
|
3,270,000
|
160
|
109
|
0.54
|
0.29
|
11.5
|
57.0
|
9,350
|
|
Inferred Mineral
Resources
|
Grade
|
Metal
Contents
|
Resource
Category
|
Deposit
|
Cut-off
(AgEQ
g/t)
|
Metric
Tonnes
|
AgEQ
g/t
|
Ag
g/t
|
Au
g/t
|
Cu%
|
Ag
Million
Tr Oz
|
Au
Thousand
Tr Oz
|
Cu T
|
Inferred
|
Avino
System
|
55
|
5,790,000
|
155
|
81
|
0.57
|
0.58
|
15.1
|
105.8
|
33,550
|
Inferred
|
San
Gonzalo
System
|
125
|
540,000
|
403
|
314
|
1.58
|
0.00
|
5.5
|
27.5
|
0
|
Inferred
|
Oxide
Tailings
|
50
|
1,810,000
|
113
|
88
|
0.44
|
0.00
|
5.1
|
25.6
|
0
|
Total
Inferred
|
All
Deposits
|
|
8,140,000
|
162
|
98
|
0.61
|
0.41
|
25.6
|
158.9
|
33,550
|
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant
issues. The quantity and grade of reported Inferred resources in
this estimation are uncertain in nature and there has been
insufficient exploration to define these Inferred resources as an
Indicated or Measured mineral resource and it is uncertain if
further exploration will result in upgrading them to the Indicated
or Measured mineral resource category.
Figures in the table may not add to the totals shown due to
rounding.
The mineral resource estimate is classified in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum's
"CIM Definition Standards - For Mineral Resources and Mineral
Reserves" incorporated by reference into National Instrument 43-101
"Standards of Disclosure for Mineral Projects".
Mineral Resources are reported at cut-off grades 55, 125 and
50 g/t silver equivalent grade for the Avino, San Gonzalo and oxide
tailings respectively as indicated in the table.
Following are highlights for each deposit:
San Gonzalo Mine
- A measured and indicated resource of 490,000 tonnes at an
average grade of 250 g/t silver and 1.37 g/t gold totaling 5.1
million troy ounces of silver and 21.6 thousand troy ounces of gold
using a cut-off grade of 125 g/t silver equivalent.
- An inferred resource of 540,000 tonnes at an average grade of
314 g/t silver and 1.58 g/t gold totaling 5.4 million troy ounces
of silver and 27.3 thousand troy ounces of gold using a cut-off
grade of 125 g/t for silver equivalent.
Measured and indicated tonnage at San Gonzalo has increased by
about 67%, while the inferred tonnage has decreased by 50% from the
previous estimate. The lower inferred figure takes into account
resource depletion from the mine's operations since 2012.
The San Gonzalo Vein System is comparatively high-grade and
provides flexibility during times of uncertain metal prices.
The Avino Mine
- A measured and indicated resource of 1,450,000 tonnes at an
average grade of 72 g/t silver, 0.34 g/t gold and 0.64% copper
totaling 3.4 million troy ounces of silver, 18,551 troy ounces of
gold and 9,350 tonnes copper using a cut-off grade of 55 g/t silver
equivalent.
- An inferred resource of 5,790,000 tonnes at an average grade of
81 g/t silver, 0.57 g/t gold and 0.58% copper totaling 15.1 million
troy ounces of silver, 106 thousand troy ounces of gold and 33,600
tonnes of copper using a cut-off grade of 55 g/t silver
equivalent
The Avino Vein System contains the most tonnage on the Avino
property and includes significant copper grades. Development
drifting on the Avino Mine totalled 2855 metres in 2015 and 1108
metres in the first half of 2016.
Mr. Wolfin noted that the previous resource estimate included no
measured resources, with the estimate prepared using mainly drill
hole information providing indicated and inferred categories only.
"With the additional underground sampling and more up-to-date
geological information, we've been able to better refine the
categories to include the measured category," said Mr. Wolfin.
Oxide Tailings
- An indicated silver resource of 1,330,000 tonnes at an average
grade of 98 g/t silver and 0.46 g/t gold totaling 4.2 million troy
ounces of silver and 19.8 thousand troy ounces of gold using a
cut-off grade of 50 g/t silver equivalent.
- An inferred resource of 1,810,000 tonnes at an average grade of
88 g/t silver and 0.44 g/t gold totaling 5.1 million troy ounces of
silver and 25.6 thousand troy ounces of gold using a cut-off grade
of 50 g/t for silver equivalent.
"We're also very excited about advancing the evaluation of the
oxide tailings," Mr. Wolfin added. "The drilling we've conducted
over the past year has increased resources significantly and helped
us better define the deposit."
This new estimate includes data from 57 holes drilled during the
last two years. Due to closer drill hole spacing, there is
sufficient information to justify elevating 1,330,000 tonnes of the
previous 2,340,000 tonnes of inferred resources to the indicated
category. However, there is still an additional inferred resource
of 1,810,000 tonnes in the new estimate.
Further studies are planned to advance the Tailings Resource
towards a production decision for an agglomerated heap leach
Merrill-Crowe precipitation operation.
The oxide tailings resource is accessible on surface and
contains significant gold and silver grades.
Method of Calculation
The estimation methods used were substantially the same for all
three deposits, providing a consistent baseline for strategic
planning.
Mineral resources were estimated by ordinary kriging, optimized
using kriging neighborhood analysis and verification by means of
nearest neighbor and inverse distance methods, swathplot
comparisons of estimates and visual inspections. Block models were
created for the San Gonzalo and Avino Vein Systems and the oxide
Tailings deposit and estimates were made into blocks of sizes 10m
easting x 5m northing x10m elevation (San Gonzalo and Avino) and
40m easting x 40m northing x 2m elevation (oxide Tailings).
Classification of the mineral resource was based on kriging
variance as a measure of uncertainty with adjustment to practical
geometries using geological knowledge of the deposit.
Silver equivalent cut-off grades were applied to satisfy the
condition of reasonable prospects for eventual economic extraction
and were calculated using conversion formulas AgEQ = Ag + 55.9 * Au
+ 72.99 * Cu for Avino Vein, AgEQ =
Ag + 69.37 * Au for oxide tailings and AgEQ = Ag + 56.38 * Au for
San Gonzalo vein System.
Cut-off grades were calculated using current costs, silver price
of US$19.50/oz, gold price of
US$1,250/oz and copper price of
US$2.10/lb.
Since 2013, Avino has drilled 57 new holes on the oxide tailings
deposit, nearly three thousand channel samples representing 14,470
metres of vein material have been obtained on the Avino and San
Gonzalo Veins, and 46 surface drill holes, (totaling 7,960 m) have
been drilled on the San Gonzalo and Avino vein systems. This
investment has significantly increased the amount of information
available for resource estimation.
Fundamental changes since the previous mineral resource
estimates are (1) depletion due to mining (over 1 million tonnes
milled since the beginning of 2013), significant new sampling
information (almost double in the case of the Oxide Tailings) (3)
changes to silver equivalent calculation and cut-offs and (4)
reclassification of mineral resources in the light of improved
understanding of confidence in the deposits at distances from the
underground channel samples and drill hole samples. More
sampling information does not always lead to direct increases in
resource tonnages and metal. In some cases, the new information
provides improved understanding (developed by variogram modelling
and kriging neighborhood analysis) that may demote some portions of
mineral resource from high confidence categories such as measured
and indicated to a lower confidence category such as
inferred. Currently, for the San Gonzalo and Avino Vein
Systems, estimated blocks more than thirty metres from sampling are
not considered to be of sufficient confidence to be indicated
category resources and have been classified as inferred resources.
Consequently, the total indicated resources for the Avino Property
are significantly less than those were reported previously. For the
Oxide Tailings, estimated blocks more than fifty metres from
sampling are not considered to be of sufficient confidence to be
indicated category resources.
Qualified Person(s)
Avino's projects are under the supervision of Chris Sampson, P.Eng, BSc, 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 except for the quotes.
About 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.
For more information, please visit Avino's website at
www.avino.com
On Behalf of the Board
"David
Wolfin"
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines
Ltd.
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, and timing, establishment, and extent of resource
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 with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of 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 the 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.