Feb. 10, 2022 /CNW/ -
Avino Silver & Gold Mines
Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) ("Avino" or
"the Company") is pleased to provide its outlook for 2022
and a recap of the highlights from 2021.
"We are very pleased with the 2021 production results, in
particular the Q4 numbers, as they exceeded our expectations. In
addition, there were many other positives for Avino in 2021," said
David Wolfin, President and CEO. "We
resumed operations at the mine in August, we embarked on a
comprehensive drill program, and the construction of the dry stack
tailings facility with its environmental and safety advantages, is
progressing well. Finally, in October, we announced the acquisition
of La Preciosa property. I've commented previously about how this
transaction could be transformational for Avino, and when the
proposed transaction is closed, the increase to NI 43-101 mineral
resources will be significant. We have much to look forward to in
2022 and beyond, production is steadily increasing, and we are
ready to continue moving on a strategic path to future growth."
It is expected that at current metal prices capital expenditures
will be paid for by operating cash flows generated from mining
operations during Q4 2021 & throughout 2022.
$3.5 - $4.0
$4.0 - $4.5
$1.5 - $2.0
$1.5 - $2.0
$1.0 – $1.5
$1.0 – $1.5
$0.5 - $1.0
$0.5 - $1.0
The Company will continue with the completion of the Dry Stack
Tailing Storage Facility, as well as the infrastructure associated
with transporting the dry tailings. Outstanding costs for this
project represent approximately $1.0
million for 2022. This project is expected to be fully
operational in H2 2022 and brings the Company towards achieving the
guidelines with the Global Industry Standard on tailings
Other budgeted growth capital expenditures include underground
communications systems for increased haulage rates, new conveyor
systems for concentrate transportation, new underground equipment,
as well as new geological buildings and new community outreach
buildings to promote social engagement with the local
The Company will be performing the recommended metallurgical
testwork on the Oxide Tailings Resource. Once completed and
assuming results are conclusive, the existing PEA will be used as
the framework for an updated study, either at the Pre-Feasibility
Study ("PFS") level or at the Feasibility Study ("FS") level. The
previous PEA was released in 2017, with the details Here. The
Company will provide further updates on the Oxide Tailings Resource
as the final assays come in, as well as any progress on the
commencement of further economic studies such as a PFS or FS.
For 2022, approximately 600,000 tonnes have been budgeted for
processing at the Avino mine. Based on current metal prices, the
Company expects to produce between 2.2M and 2.6M
silver equivalent ounces*. The potential for reaching full capacity
of 2,500 tpd, seven days per week, remains strong and the Company's
goals are to exceed the budgeted plans for 2022.
The production estimate
does not constitute guidance as the estimate is based on mineral
resources, not mineral reserves. Mineral resources do not have
demonstrated economic viability.
Exploration & Evaluation
During the year, the Company plans to drill approximately 15,000
metres on the Avino property and will target the areas below the
current mining area at Avino (ET Area), the Bart vein located
very close to the Avino workings as well as La Potosina.
Exploration targets may not be limited to these three areas, and
during the year our priority targets may change if geological
interpretations on other areas present enhanced opportunity.
Additional holes may also be drilled on the Oxide Tailings Resource
to determine if additional tonnage could be added to the existing
3.12 million tonnes.
Development work is underway to increase haulage capacity
through the connection to existing workings West of the ET Area.
This connection will allow for one-way traffic closer to surface
and reduce haulage bottlenecks.
In addition to the exploration budget, plant improvements have
been approved for the previously mentioned dry stack tailings
project as well. Additional plant improvements include upgrades to
the digital infrastructure to allow for streamlined plant data
capture and analysis and installation of conveyors from the filter
area to the concentrate storage area.
Sustaining capital for 2022 consists primarily of costs to
perform overhauls of the existing mining fleet, as well as minor
improvements to increase underground mine stability.
The capital expenditures above do not include the $15 million acquisition cost associated with the
Company's announced acquisition of La Preciosa from Coeur Mining
Inc. Once the transaction is closed and formal studies are
completed, we will discuss our plans to integrating La Preciosa
into Avino's production profile.
2021 MILESTONES ACHIEVED
The capital expenditures for 2021 were expected to total
between US$9 and US$11 million
and included a drill program targeting areas and veins on the
property, including the recommended drilling on the Oxide tailings,
the construction of the dry stack tailings facility and
metallurgical projects to help improve recovery rates.
We are pleased that the following objectives for 2021 were
- Restart of Operations – Avino announced a successful
return to mining operations after an extended Covid and labour
related operational closure. Production results exceeded the
Company's expectations, laying the groundwork for a strong 2022.
The closure did allow time for the Company to perform a number of
important upgrades at the mill to improve metal recoveries.
- 2021 Production highlights:
- Silver equivalent production – 842,373 oz*
- Silver production – 245,372 oz
- Gold production – 3,386 oz
- Copper production – 1,869,306 lbs
In Q4 2021, AgEq was
calculated using metals prices of $23.32 oz Ag, $1,783 oz Au and
$4.40 lb Cu. In Q3 2021, AgEq was calculated using metals prices of
$24.36 oz Ag, $1,790 oz Au and $4.25 lb Cu. Calculated figures may
not add up due to rounding.
- Increased Avino Mine underground operations: Underground
mining operations continue to increase capacity. In 2021, 154,498
tonnes were processed.
- Increase in feed grades from the Avino Mine: The silver
grade remained flat year over year; however, gold grade and copper
grade increased by 110% and 3%, respectively, when compared to
- Recovery rates: Silver, gold and copper recovery rates
were 89%, 76% and 91% respectively.
- Acquisition of La Preciosa Project – This Advances
Avino's long term goal of expanding operations by adding a
development-stage mineral property to our growth profile. La
Preciosa hosts one of the largest undeveloped primary silver
resources in Mexico and is located
adjacent to Avino's existing operations. Click Here to read the
full news release from October 2021.
The transaction is expected to close during Q1 2022.
- Debt-Free – Final repayment of term facility made in
September 2021. The $10 million prepayment was provided in 2015 by
Avino's strategic partner, Samsung C&T, for the construction of
the 1,000 tpd Mill Circuit #3. This final repayment is a
significant milestone for Avino.
- Cash & Working Capital Increase – Cash and working
capital at December 31, 2021, doubled
over the year. The Company leveraged increased market activity
through the strategic use of its At The Market sales offering and
raised gross proceeds of $19M by way
of issuing 10.5 million shares, representing a significant premium
at US$1.81 per share.
- Exploration Drilling – The Company focused on Phase 1
and exploring a number of targets on the property which resulted in
encouraging results. Over 15,500 metres were drilled, above the
original 2021 budget of 12,000 metres. Click Here to review our
July 2021 drilling update. Click Here
to review our January 2022 news
release announcing further results from the 2021 program.
- Dry Stack Tailings – Conversion to dry stack tailings is
on track for completion in 2022 with the filter building nearing
completion. We chose this method for its environmental, safety and
economic advantages. Readers can view the progress by clicking
- Workforce Training – Avino is dedicated to building and
maintaining a local workforce. Training programs that started in
2021 remain ongoing with the Company providing inclusive
opportunities, with several female being trained in surface and
underground production jobs.
- Digital Transformation – During the year, the Company
began to digitally transform certain areas at the mine to enhance
efficiencies including mill automation and underground vehicle
- Oxide Tailings Resource – The Company performed all the
recommended drilling from the 2017 Preliminary Economic Assessment
("PEA") during 2021, with final assays pending. Once the assays are
completed and the data has been confirmed, the Company will provide
further updates on the Oxide Tailings Resource.
Peter Latta, P.Eng, MBA, VP
Technical Services, Avino who is a qualified person within the
context of National Instrument 43-101 has reviewed and approved the
technical data in this news release.
Avino will release 2021 year-end financial results in early
March 2022 and will hold a conference
call to discuss the results.
Avino is primarily a silver producer from its wholly owned Avino
Mine near Durango, Mexico. The
Company's silver and gold production remains unhedged. The
Company's mission and strategy is to create shareholder value
through organic growth at the historic Avino Property and the
strategic acquisition of mineral exploration and mining properties.
We are committed to managing all business activities in a safe,
environmentally responsible, and cost-effective manner, while
contributing to the well-being of the communities in which we
operate. We encourage you to connect with us
on Twitter at @Avino_ASM and
on LinkedIn at Avino
Silver & Gold Mines. To view the Avino Mine VRIFY tour,
please click here.
On Behalf of the
President & CEO
Avino Silver & Gold Mines
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 the amended mineral resource estimate for the Company's
Avino Property located near Durango in west-central Mexico (the "Avino Property") with an
effective date of January 13, 2021,
prepared for the Company, La Preciosa's updated October 27, 2021 resource estimate and references
to Measured, Indicated, Inferred Resources and anticipated
production and Capital Expenditures referred to in this press
release. 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. No
assurance can be given that the Company's Avino Property nor the La
Preciosa Property have the amount of the mineral resources
indicated in their reports, that such mineral resources may be
economically extracted, that the Company will be able to produce
between 2.2M and 2.6M silver equivalent ounces, and that the
Company will expend that anticipate Capital Expenditures indicated.
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; the COVID-19 pandemic; volatility in the global
financial markets; 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. For more detailed information regarding the
Company including its risk factors, investors are directed to the
Company's Annual Report on Form 20-F and other periodic reports
that it files with the U.S. Securities and Exchange Commission.
References to Measured & Indicated Mineral Resources and
Inferred Mineral Resources in this press release are terms that are
defined under Canadian rules by National Instrument 43-101 ("NI
43-101"). U.S. Investors are cautioned not to assume that any part
of the mineral resources in these categories will ever be converted
into Reserves as defined under SEC Industry Guide 7.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Avino Silver & Gold