NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, Jan. 23, 2017 /PRNewswire/ - Avino Silver & Gold Mines Ltd. (ASM: TSX.V,
ASM: NYSE – MKT, GV6: FSE, "Avino" or "the Company") is pleased
to provide the following 2016 year end summary and outlook for 2017
for the Avino and San Gonzalo Mines, and the Bralorne Gold
Mine.
Avino and San Gonzalo Mines
2016 Production Highlights
- Silver equivalent production – 2,679,334 oz*
- Silver production – 1,612,060 oz
- Gold production – 7,119 oz
- Copper production – 4,206,585 lbs
AgEq was calculated using metals prices of US$17.10 oz Ag, US$1,248 oz Au and US$2.21 lb Cu.
2016 Operational Highlights
- Commercial production was declared at the Avino Mine on
April 1, 2016
- A new power line to the mine site was completed and is now
fully functional, providing sufficient energy to power our existing
operations, as well as the future oxide tailings resource operation
and mill expansion
- Construction of the new Tailings Storage Facility
commenced
- An updated NI 43-101 resource estimate was completed for the
Avino and San Gonzalo Mines as well as for the Oxide Tailings
Resource
During the year, capital expenditures at Avino totaled
USD$7.4 million for the continuation
of exploration, new and refurbished equipment, commencement of the
new tailings storage facility (TSF), infrastructure and sustaining
capital.
"We are very pleased with our production and operational
achievements at the Avino and San Gonzalo Mines in 2016. Solid
future cash flow from Avino and San Gonzalo, and proceeds of the
recent bought deal financing will provide the Company with the
flexibility to fund capital and exploration projects while
maintaining a solid financial position. Providing further
flexibility within our budgets is our ability to finance new
equipment together with the zero penalty deferral of the Samsung
payback. Another productive year is expected in 2017, with plans
including a plant and mine expansion to increase throughput
capacity at the processing plant by an estimated 70%, advancement
of the Oxide Tailings Resource project, continued construction and
consideration of new initiatives regarding tailings storage, as
well as a three-phased expansion program at Bralorne. The estimated
capital expenditure costs for these important plans in 2017 will be
an estimated USD$16.3 million, all of
which will help the company develop and continue to create
shareholder value."
David Wolfin,
President and Chief Executive Officer
In 2017, capital expenditures at Avino and San Gonzalo are
estimated to total USD$12.2 million,
as a result of the following capital projects: mill expansion,
planned exploration, and continued refurbishment and replacement of
mobile equipment.
The Company's estimated capital expenditures in 2017 include the
following: (USD in millions)
Mill expansion to add
Circuit 4
|
$7.1
|
Mining
equipment
|
$2.5
|
Tailings Storage
Facility
|
$1.7
|
Planned
exploration
|
$0.9
|
Estimated
Total
|
$12.2
|
Users of this forward-looking information are cautioned that
actual results may vary materially from the estimates disclosed.
Readers are cautioned against placing undue reliance on these
estimates.
In 2017, capital expenditures at Avino and San Gonzalo will
include a significant investment of USD$7.1
million for mill expansion to increase throughput capacity
to 2,500 tonnes per day "TPD". The addition of Circuit 4, which
will be an exact duplication of Mill Circuit 3, commenced in
January, 2017, and will take approximately one year to complete.
This expansion will further develop and maintain a solid production
profile going forward.
In addition, we are continually testing to improve payables, and
are focused on the optimization of the mill and plant with full
automation to improve efficiencies and potentially increase
recovery rates.
Additionally, USD$2.5 million is
budgeted for new mining equipment and fleet expansion, although we
will utilize good used equipment when available, and with the
long-term business relationships we have with our suppliers it is
estimated that a significant portion of the budgeted expenditures
could potentially be financed.
An estimated further USD$1.7million will be invested in the continued
construction of the new tailings storage facility, allowing us to
advance the Oxide Tailings Resource project. We are also evaluating
paste thickening that would be used for backfilling old stopes and
the large open pit which would add extensive tailings storage
capacity and advance reclamation at same time.
We are also investing approximately USD$0.9 million for additional exploration of the
Avino Vein system between the San
Luis and Elena Tolosa
(current area of production) workings, where the Avino vein remains
open at depth. Our exploration drilling program, which commenced in
September, 2016, has thus far been comprised of 18 holes totalling
2,955 metres, with positive results from the first 8 holes which
were released in December, with the results from the remaining ten
holes still pending. The drill results support the continuation of
the extensive Avino vein system.
This new area is close to surface and accessible from the
existing Avino Mine underground workings. The area was identified
as a target of interest as it may have been overlooked in the past,
given that on surface and at shallow depths, the Avino Vein system
splits into hanging wall and foot wall structures.
BRALORNE GOLD MINE
"Since acquiring the Bralorne Gold mine in 2014, we have been
focused on our long-term commitment to bringing this historical
gold mine into production and working on the steps to achieve this
goal. We are dedicated to this project and the community in
which it is situated."
David Wolfin,
President & CEO Avino Silver
& Gold Mines Ltd.
2016 Highlights
- Completion of an updated NI 43-101 Resource estimate based on a
limited exploration program, which increased tonnage and gold
ounces
- Submission of permit applications to resume mining and
processing
- Increase of the capacity of the tailings storage facility in
2015,and the addition of buttresses in 2016 for additional
stability
- New phased mine plan in development
- Cost effective long hole mining will be tested
- Modernizing the mining fleet, with the addition of 2 new scoop
trams, jumbo drill and a rock breaker
- Significantly increased water treatment capability with the
deployment of a new state-of-the-art microfiltration water
treatment
- First aid facility constructed
- Woman's dry facility constructed
- Deposit on new larger ball mill, and refurbishments made to
other areas of the mill
- Purchase of a new portable crushing plant to free up space
inside the mill building
- Made significant investment in education and training for local
First Nations communities to further our CSR objectives
The updated NI 43-101 resource estimate for the property marked
a major milestone and validated the development strategy in
reopening the mine.
EXPANSION PROGRAM
A Three Phased Approach
The company's strategic development plan for future profitable
production involves a three-phased, multi-year expansion program
which offers a favourable route to Bralorne's growth potential with
manageable capital expenditures and a sequenced approach. The
foregoing is expected to leverage existing infrastructure while
maintaining low execution risk and offer the flexibility to proceed
with all phases with little or no production downtime.
The Company's objective is to re-open the mine after the
completion of Phase One at 100 TPD, which is anticipated to cost
US$4.1 million. With improvements
highlighted below, we believe the process plant could exceed the
100 TPD capacity.
The company engaged independent engineering professionals to
assist in developing a project execution plan to enable production
start-up at 100 TPD with eventual expansion to 300 TPD.
Independent mining engineers were also engaged to develop a long
term mine plan which includes a change to narrow vein long hole
mining wherever possible, to replace the historic labour intensive
shrinkage mining method. Together with their input, the
Company has established a three-phased and disciplined approach to
the Bralorne project development.
Advancing Phase One
Engineering and Construction
Preparations for Phase One, which will commence immediately,
will include the following work:
- Demolition of existing coarse and fine ore bin
- Simplification of the crushing circuit with a larger primary
and secondary crushing plant, which has the potential for future
expansion to 500 TPD
- Construction of new fine ore bin
- Removal of retired equipment (crushing plant, ball mill
foundations and pedestals)
- Exchange of one bank of float cells with new ones
- Construction of new tailings pumping system
- Upgrading of existing electrical systems
- Construction of a new assay lab
Phase Two Objectives (2018 – 2019)
- Larger Ball Mill installation
- Electrical upgrades and new electrical feed for larger Ball
Mill
- Relocation and upgrade of existing Classifying circuit
- Upgrade of Phase 1 MCC (Mobile Crushing Circuit)
installation
Phase Three Objectives (2018 – 2019)
- Upgrades of existing Flotation Circuit, Concentrate Filtration
Circuit, Reagent Circuit, Refinery,
- New Process Control system installation
- Upgrade of surface infrastructure, including camp
- Begin processing at 300 TPD
The Company's long-term plan is to reach 500 TPD.
Historically, the Bralorne camp consisted of a number of
separate mines with combined capacity of more than 500 TPD at a
head grade of approximately 0.5 oz/ton. Avino now owns all of
the old mines of any significance. The recent updated
NI-43-101 resource is shown in the following table. Please also
note that the updated NI 43-101 resource is available on SEDAR and
on our website at
http://www.avino.com/i/pdf/reports/2016_Bralorne_Tech_Report_Final.pdf.
Class
|
Measured
|
Indicated
|
Measured and
Indicated
|
Inferred
|
|
Tons
|
Au opt
|
Au Ounces
|
Tons
|
Au opt
|
Au Ounces
|
Tons
|
Au opt
|
Au Ounces
|
Tons
|
Au opt
|
Au Ounces
|
51b FW
|
8,294
|
0.26
|
2,176
|
33,466
|
0.2
|
6,596
|
41,760
|
0.21
|
8,772
|
147,691
|
0.19
|
28,785
|
51bFW/HW
|
15,713
|
0.27
|
4,313
|
26,717
|
0.62
|
16,639
|
42,430
|
0.49
|
20,953
|
39,072
|
0.38
|
14,828
|
Alhambra
|
21,915
|
0.46
|
10,153
|
16,462
|
0.26
|
4,259
|
38,377
|
0.38
|
14,412
|
10,454
|
0.19
|
2,001
|
BK
|
|
|
|
50,501
|
0.33
|
16,822
|
50,501
|
0.33
|
16,822
|
50,430
|
0.16
|
8,064
|
BK-9870
|
|
|
|
5,754
|
0.53
|
3,058
|
5,754
|
0.53
|
3,058
|
7,327
|
0.27
|
1,986
|
BKN
|
|
|
|
37,546
|
0.36
|
13,569
|
37,546
|
0.36
|
13,569
|
46,972
|
0.3
|
14,007
|
Prince
|
|
|
|
|
|
|
|
|
|
12,790
|
0.17
|
2,138
|
Shaft
|
|
|
|
41,300
|
0.28
|
11,432
|
41,300
|
0.28
|
11,432
|
25,781
|
0.27
|
6,994
|
Taylor
|
|
|
|
15,455
|
0.16
|
2,510
|
15,455
|
0.16
|
2,510
|
23,010
|
0.22
|
5,097
|
Total
|
45,922
|
0.36
|
16,643
|
227,201
|
0.32
|
91,528
|
273,123
|
0.33
|
91,528
|
363,527
|
0.22
|
83,900
|
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 0.1 ounces per ton
gold.
|
|
Under National
Instrument 43-101, the Company is required to disclose that it has
not based its production decisions on NI 43- 101 reserve estimates,
preliminary economic assessments, or feasibility studies, and
historically projects without such reports have increased
uncertainty and risk of economic viability. The Company's decision
to place a mine into operation at levels intended by management,
expand a mine, make other production-related decisions, or
otherwise carry out mining and processing operations is largely
based on internal non-public Company data, and on reports based on
exploration and mining work by the Company and by geologists and
engineers engaged by the Company
|
The Company's current plan is based on a resource head grade of
approximately 0.25 oz/ton. Once Bralorne is operating again, the
Company will carry out exploration underground and on surface aimed
at adding to the current resource and discovering further high
grade zones similar to what was mined in the past.
FIRST NATIONS EDUCATION, TRAINING AN ENGAGEMENT
In 2016, in conjunction with North Island College and St'at'imc
Government Services, Avino completed a four-month underground
mining training educational cohort for 12 members of the St'at'imc
communities. All 12 students graduated from the program and
received a number of industry certification tickets. The
program, funded largely by the provincial government, involved
three months of classroom instruction in Lillooet followed by two weeks of hands on
training at the Bralorne Gold Mine. To view the video on the
training program please click here
https://vimeo.com/172272150.
A second similar program commenced in November, 2016, and will
include a state-of-the-art simulator from Sandvik for advanced
training on underground mining equipment. This program will
conclude in February, 2017; Avino is eager to hire graduates from
the programs once the mine re-opens.
Avino expects to release the 2016 year-end financial results in
early March 2017, and will hold a
conference call to discuss the results. Details of the call,
including times and contact numbers, will be announced closer to
the date.
Qualified Person(s)
Avino's 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 technical
data in this news release.
About Avino
Avino's is a silver and gold producer with a diversified
pipeline of gold, silver and base metals properties in Mexico and Canada employing approximately 500
people. Avino produces from its wholly owned Avino and San
Gonzalo Mines near Durango,
Mexico, and is currently ramping up for future production at
the Bralorne Gold Mine in British
Columbia, Canada. The Company's gold and silver production
remains unhedged. The Company's mission and strategy is to create
shareholder value through its focus on profitable organic growth at
the historic Avino Property near Durango,
Mexico, and the strategic acquisition of mineral exploration
and mining properties. 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 & 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, and exploration results, the
potential tonnage, grades and content of deposits, timing and
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 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 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.