VANCOUVER, BC, Jan. 13, 2021 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM:
TSX/NYSE American, GV6: FSE, "Avino" or "the Company") is pleased
to announce an updated mineral resource estimate for the Company's
Avino Property located near Durango in west-central Mexico (the "Property"). The updated estimate
includes the Property's Avino Mine (Elena
Tolosa – "ET") vein systems, the San Gonzalo Mine, and the
Property's Oxide Tailings. The mineral resources estimate has been
included in an updated technical report prepared by Tetra Tech Inc.
under National Instrument 43-101 ("NI-43-101"), which will be
available on SEDAR (www.sedar.com) under the Company's profile and
filed on Form 6-K with the SEC within 45 days.
Highlights (compared to February 21, 2018)
Measured and Indicated Mineral Resources:
- Increase of 60% in silver equivalent ounces, up to 75.9 million
ounces
- Increase in gold and copper grades by 6% and 11%, up to 0.67
g/t and 0.41%
- Increase in silver grade at ET by 3%, up to 63 g/t
- Decrease in consolidated silver grades by 10%, to 69 g/t, as a
result of depletion at San Gonzalo
- Increase in tonnage of 90% overall, totaling 20.3 million
metric tonnes
Inferred Mineral Resources:
- Decrease of 6% in silver equivalent ounces, down to 21.8
million ounces
Avino Mine
Mineral Resources Summary
as at October 31, 2020
|
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
(%)
|
AgEQ (million
tr oz)
|
Ag
(million
tr oz)
|
Au
(thousand
tr oz)
|
Cu
Tonnes
|
Measured
|
Avino - ET
|
60
|
4,760,000
|
120
|
74
|
0.63
|
0.55
|
18.4
|
11.3
|
97
|
26,300
|
Measured
|
San Gonzalo
System
|
130
|
267,000
|
356
|
263
|
1.36
|
0.00
|
3.1
|
2.3
|
12
|
0
|
Total
Measured
|
All
Deposits
|
|
5,027,000
|
133
|
84
|
0.67
|
0.52
|
21.5
|
13.6
|
109
|
26,300
|
Indicated
|
Avino - ET
|
60
|
13,890,000
|
107
|
59
|
0.68
|
0.41
|
47.9
|
26.5
|
304
|
56,700
|
Indicated
|
San Gonzalo
System
|
130
|
216,000
|
304
|
230
|
1.09
|
0.00
|
2.1
|
1.6
|
8
|
0
|
Indicated
|
Oxide
Tailings
|
50
|
1,120,000
|
124
|
89
|
0.42
|
0.00
|
4.5
|
3.2
|
15
|
0
|
Total
Indicated
|
All
Deposits
|
|
15,226,000
|
111
|
64
|
0.67
|
0.37
|
54.5
|
31.3
|
327
|
56,700
|
Total Measured
& Indicated
|
All
Deposits
|
|
20,253,000
|
117
|
69
|
0.67
|
0.41
|
75.9
|
44.9
|
436
|
83,000
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(%)
|
AgEQ (million
tr oz)
|
Ag
(million
tr oz)
|
Au
(thousand
tr oz)
|
Cu
Tonnes
|
Inferred
|
Avino – ET
|
60
|
5,230,000
|
95
|
51
|
0.64
|
0.34
|
16.0
|
8.5
|
108
|
17,700
|
Inferred
|
San Gonzalo
System
|
130
|
85,000
|
298
|
233
|
0.96
|
0.00
|
0.8
|
0.6
|
3
|
0
|
Inferred
|
Oxide
Tailings
|
50
|
1,230,000
|
125
|
85
|
0.47
|
0.00
|
5.0
|
3.4
|
19
|
0
|
Total
Inferred
|
All
Deposits
|
|
6,545,000
|
103
|
59
|
0.61
|
0.27
|
21.8
|
12.5
|
129.0
|
17,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
- Figures may not add to totals shown due to rounding.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- 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 (NI
43-101) Standards of Disclosure for Mineral Projects.
- Cut-off grades were calculated using the following consensus
metal price assumptions: gold price of US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb.
- Silver equivalent (AgEQ) ounces are notional, based on the
combined value of metals expressed as silver ounces.
- Metal Recovery based on operational results and column
tests.
- The silver equivalent was calculated using the following
assumptions:
- For ET using the formula: AgEQ = 1 x Ag grade + 65.1 x Au grade
+ 8.66 x Cu grade
- For San Gonzalo using the formula: AgEQ = 1 x Ag grade + 72.54
x Au grade
- For Oxide Tailings using the formula: AgEQ = 1 x Ag grade +
84.55 x Au grade
Avino President and CEO,
David Wolfin commented: "We are
thrilled to have successfully gone over and above replacing mining
depletion since the previous report, by adding significant
additional measured and indicated resources at the Avino property.
The updated mineral resource estimate provides us with a robust
long-term outlook. With several areas on the property that have yet
to be explored, there is a strong in-situ potential for further
potential resource extension. Many thanks to our hard-working
operation team in Mexico for their
hard work over the years to more fully understand the extent of
mineralization at Avino. The drills will be active again during the
first quarter and the 2021 exploration program will continue to
build on the success of our past operations."
The indicated mineral resource at Avino's Elena Tolosa ("ET") deposit has been
significantly increased. As of the date of the previous mineral
resource estimate in 2018, the mineralization was estimated to
consist of a 10 metre to 30 metre wide footwall zone with a
sporadic development of hanging wall stockwork.
Subsequently, the Avino Vein has been fully exposed and sampled
in underground development below elevations of 360 metres to 470
metres below surface, and it has been discovered to be consistently
and continuously mineralised between the hanging wall and footwall
veins over a thickness of up to 45 metres. This broad zone has been
proven by underground development and channel sampling down to an
elevation of 1,849 metres.
This mineralization was sampled and partially mined before the
recent hiatus in operations and it is included in the current
mineral resource.
Detailed depletion models for the ET deposit and San Gonzalo
have been applied, based on updated 3D models of underground
development and stoping excavations.
The western portion of the inferred oxide tailings resource has
been reduced, due to
- uncertainty of the bedrock topographic profiles under the
tailings and
- the increased depth of sulphide tailings that was placed above
the western portion of the inferred oxide tailings resource.
The total measured and indicated mineral resource tonnage in all
deposits totals 20.3 million metric tonnes containing
75.9 million troy ounces of silver equivalent, comprised of 44.9
million troy ounces of silver, 436,000 troy ounces of gold, and
83,000 metric tonnes of copper.
The total inferred mineral resource tonnage in all deposits
totals 6.6 million metric tonnes, of 21.8 million troy ounces of
silver equivalent comprised of 12.5 million troy ounces of silver,
129,000 troy ounces of gold, and 17,700 metric tonnes of
copper.
The mineral resource estimates were prepared by Michael O'Brien P.Geo., Pr.Sci.Nat., of Red
Pennant Geoscience who is a "Qualified Person" within the meaning
of NI 43-101 and independent of Avino, as defined by Section 1.5 of
NI 43-101.
Oxide Tailings
The Oxide Tailings resource has been re-estimated using the same
model and data as the previous mineral resource update, however a
more conservative approach has been utilized in extrapolating the
inferred material.
Method of Calculation
The definitive estimation methods used were substantially the
same for all three deposits (Ordinary Kriging), providing a
consistent baseline for strategic planning.
Mineral resources were estimated by ordinary kriging, optimized
using kriging neighbourhood analysis and verified by means of
nearest neighbour 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 utilizing blocks of sizes
20 m long x 5
m wide x 10 m high for Avino
(ET Mine), sizes 10 m long x
5 m wide x 10
m high for San Gonzalo and 40
m long x 40 m wide x
2 m high for Oxide Tailings.
Fundamental changes since the previous mineral resource
estimates are (1) depletion due to mining (over 800 thousand tonnes
milled since the beginning of 2018), (2) significant new sampling
information (3) changes to cut-off calculations and (4)
reclassification of mineral resources in the light of improved
confidence in the understanding of 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 contained 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
measured and indicated categories, to a lower confidence inferred
category.
Currently, for the San Gonzalo and Avino Vein Systems, estimated
blocks more than thirty-five metres from samples are not included
in the indicated category resources and have been classified as
inferred resources.
For the Oxide Tailings, estimated blocks more than fifty metres
from samples are not included in the indicated category
resources.
Qualified Person(s)
Avino's projects in Durango,
Mexico are under the geoscientific oversight of Michael O'Brien, P.Geo., Senior Principal
Consultant, Red Pennant Geoscience, and under the supervision of
Peter Latta, P.Eng, Avino's VP,
Technical Services, who are both qualified persons within the
context of NI 43-101. Both have reviewed and approved the technical
data in this news release.
About Avino
Avino is primarily a silver producer with a diversified pipeline
of silver, gold, and base metal properties in Mexico. Avino produces 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 its focus on profitable 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.
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 the updated mineral
resource estimate for the Company's Avino Property located near
Durango in west-central Mexico
(the "Property") with an effective date of January 13, 2021 prepared for the Company, and
reference to Measured, Indicated, Inferred Resources 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 Property
has the amount of the mineral resources indicated in the updated
report or that such mineral resources may be economically
extracted.
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.
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SOURCE Avino Silver & Gold
Mines Ltd.