VANCOUVER, BC, Feb. 16, 2021 /CNW/ - Avino Silver & Gold Mines Ltd. (TSX:
ASM) (NYSE: ASM) (FSE: GV6) ("Avino" or "the
Company") has commenced its 2021 drill program and
is pleased to provide details on a number of important programs
that are planned for the year ahead.
"We are excited to commence the 2021 drill campaign at the
Avino property with a 12,000 metre program. After a period of
compiling data, we are now ready to drill the first phase of
promising targets that we believe will help us expand the
mineralized footprint at Avino", said David
Wolfin, President and CEO. "Our current priorities are to
focus on confirming continuity of mineralized trends in veins on
the property, and test areas with known historic high grade zones
that could add to Avino's future production profile."
2021 DRILL PROGRAM
The Avino property comprises 1,104 hectares (2,728 acres) with
significant underexplored areas remaining. The two-fold
objectives of the drill program are to locate new mineralized zones
within the property and to confirm continuity of mineralization in
the current Avino ET production area.
Phase 1 of the drill program will be focused on the El Trompo
Vein, the Santiago Vein, the Avino ET Area (below Level 17), and
Avino West (below Levels 9 &
17).
Proposed Drilling:
- El Trompo Vein – 2,000 metres
- Santiago Vein – 3,000 metres
- Avino ET Area (below Level 17) – 2,500 metres
- Avino West (below Levels 9 &
17) – 4,500 metres
The El Trompo
The El Trompo Vein is a priority target as it is an offshoot of
the Avino Vein, which has been one of the feeder veins for the
Company's milling complex. Historical data indicates there are high
grade areas within the vein over considerable widths, and there is
underground infrastructure adjacent to the vein, which would allow
easy access for mining. The structure has already been exposed and
developed on the upper levels in the ET Area of the Avino Vein.
Drilling on this vein will be from surface in order to confirm
continuity of the mineralization at depth.
Avino Vein – ET Area (Below Level 17) and Avino West (Below Levels 9 & 17)
The Avino Vein is open on strike to the west, as well as at
depth, and the planned drilling is designed to follow the
continuity of mineralization in both directions.
Furthermore, production data from previous mine development
shows that the copper grade increases at depth.
Avino has not tested the area to the west of the current mining
area, as it sits below the active tailing dam and mining would be
prohibitive. However, once the dry stack tailing project is
operational, the current tailings storage facility would be
decommissioned, allowing for mining in this new area in the near to
medium term.
Santiago Vein
The Santiago vein sits in the
Avino mining district and intersects the San Gonzalo vein in an
area of narrow veins that average 1 to 2 metres in width with
mineralization that appears consistent with the high grade San
Gonzalo silver-gold mineralization. The San Gonzalo mine previously
produced 6 million ounces of silver equivalent until closing in
2019. We will be testing the continuity of the Santiago vein as the current thinking suggests
a displacement due to the San Gonzalo fault. This target will be
drilled from surface. Because of the close proximity to San Gonzalo
underground infrastructure, mining access would be relatively easy
assuming significant resources are found.
The Company owns two drills that have been refurbished over the
last two months and are now mobilized to begin drilling. The
benefit of owning our own drills is that we can drill at a lower
cost compared to hiring outside contractors. Such savings provide
for a larger drill program.
COVID-19 Protocols
The Company continues to implement its COVID-19 safety protocol
plan at site to ensure the safety of employees and the communities
surrounding the Avino mine property. Our drill program is utilizing
employees who live locally and require minimal travel to and from
the mine site.
AVINO MINE - A Busy Year Ahead
Exploration Budget
During the year, we plan to allocate significant resources
towards a multi-phased drilling program, with approximately 12,000
metres planned in Phase 1 of drilling at the Avino property. Phase
1 will target several areas of the Avino property including the
Avino Vein, the Santiago Vein and the El Trompo Vein. Future
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. We are
currently working on increasing the exploration program with
details to be released once an increase in budget is approved.
In addition to the exploration budget, Avino has allocated
capital for the following areas:
Dry Stack Tailings
The dry stack tailings project is well underway for its
permitted tailings storage facility which we refer to as TSF #2. We
expect this project to be completed during Q3 2021 and it will add
an additional 8-10 years of tailings capacity based on the current
mill throughput rate. We chose dry stack tailings for its
environmental, safety and economic advantages with the high solids
content. This significantly improves safety and stability and
reduces the need to extract water from local sources by recycling
the water removed from tailings. In addition it requires less land
which in turn results in a smaller environmental footprint.
Circuit 4 Improvements
Avino made various metallurgical improvements in Circuit 3
during 2019 which significantly improved gold and silver recovery
through the use of a new piece of equipment. We will look to make
the same improvements in Circuit 4 in 2021. The required equipment
has been delivered to site, and we aim to have it operational
during Q2 2021. In addition, a comprehensive automation package to
modernize data collection and analysis is also planned and will be
rolled out in phases with the first phase consisting of adding
hardware to various areas in the mill.
Capital Expenditures
It is expected that capital expenditures for 2021 will be
between US$6 and $8 million, with additional capital to be
allocated based on the success of Phase 1 of the drilling
program.
Avino's longevity demonstrates a commitment to maintaining our
mission, vision and values. As we enter our 53rd year,
we remain diligent in our efforts across our operations with
respect to COVID-19 and are working together to keep our employees
and communities healthy. We look forward to a positive and
productive 2021 together with the potential of continued
strengthening of the market and of commodity prices.
ADDITIONAL INFORMATION
Avino expects to release the 2020 year-end financial results in
late February 2021 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 release date.
Qualified Person(s)
Peter Latta, P.Eng, MBA, VP
Technical Services, who is a qualified persons within the context
of National Instrument 43-101 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
referenced 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 its files with the U.S. Securities and Exchange
Commission.
On October 31, 2018, the US
Securities and Exchange Commission adopted Item 1300 of Regulation
S-K ("Regulation SK-1300") to modernize the property disclosure
requirements for mining registrants, and related guidance, under
the Securities Act of 1933 and the Securities Exchange Act of
1934. All registrants are required to comply with Regulation
SK-1300 for fiscal years ending after January 1, 2021. Accordingly, the Company
must comply with Regulation SK-1300 for its fiscal year ending
December 31, 2021, and thereafter,
and the Company will no longer utilized Industry Guide 7.
Regulation SK-1300 uses the Committee for Mineral Reserves
International Reporting Standards ("CRIRSCO") based classification
scheme for mineral resources and mineral reserves, that includes
definitions for inferred, indicated, and measured mineral
resources. U.S. Investors are cautioned not to assume that
any part of the mineral resources in these categories will ever be
converted into probable or proven mineral reserves within the
meaning of Regulation S-K 1300.
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SOURCE Avino Silver & Gold
Mines Ltd.