Avino Provides Year End Summary and Outlook for 2011
December 23 2010 - 8:00AM
Marketwired
Avino Silver & Gold Mines Ltd. (TSX VENTURE: ASM)(OTCBB:
ASGMF)(BERLIN: GV6)(FRANKFURT: GV6) -
Dear Shareholder,
I am pleased to present a review of Avino's achievements in 2010
and outlook for 2011. With precious metals prices at all times
highs and continuing to climb, we are working aggressively to bring
the San Gonzalo property into production and capitalize on the
opportunities presented by the current markets.
Management remains focused on the following key objectives:
1. Complete the San Gonzalo bulk sample program
2. Continue developing the San Gonzalo resource
3. Resume production as quickly as possible
4. Expand resources, reserves and the mines output
5. Identify and explore new targets on Avino's property
Bulk Sampling to Confirm Grades and Recoveries
The ongoing 10,000 tonne bulk sample program on San Gonzalo will
allow Avino to assess the economics of the zone and confirm mineral
grades and metallurgical recoveries obtained from earlier diamond
drilling. With positive results from the bulk sample we will move
into full production.
Mill Rehabilitation Complete
In 2010 we completed a three year program that brought extensive
modernization to our mill. The upgrades include a new 250 t/day
circuit to accommodate high grade ore from the San Gonzalo zone.
This facility now has a new electrical system that meets the
electrical code, an upgraded crushing plant that included major
repairs to the cone crusher, vibrating screens and conveyors. In
addition, the on-site assay lab was put into service along with a
new AAS unit to provide on-site control assays. The water supply
system from the tailings pond and la Caricol were completed and are
now fully functional.
Milling Operations
In the second half of the year Avino tested the newly
re-furbished mill by processing stockpiled ore left behind from
previous mining of the ET Zone. This was done to fine tune the mill
for the San Gonzalo bulk sample. By the end of October the mill had
processed over 20,000 tonnes of material to produce approximately
600 tonnes of concentrate. This concentrate was shipped to
Manzanillo and sold to MRI trading AG. The mineral at San Gonzalo
is silver, gold, lead, and zinc; while the ET stockpile on the main
vein is silver, copper, and gold. The rock from ET, while harder
than the San Gonzalo material, served as a trial run for the bulk
sample.
Underground Mining
In January, our mining contractor, DMG began driving the first
decline at the 2260 m elevation for development work and extraction
of the bulk sample. The San Gonzalo vein was intersected in May. A
second decline was driven to the 2306m level. The two declines are
known as San Gonzalo vein 1 and San Gonzalo. By July both levels
had intersected the San Gonzalo vein. On October 13 the two levels
were connected with the completion of two raises allowing the start
of stoping (cut and fill) for the bulk sample. By mid-November,
approximately 2000 tonnes of mineralized vein rock had been broken
from the first stope and assays confirmed a calculated and average
grade of 1.9 g/t gold and 340 g/t silver. This compared well with
the original inferred resource, which estimated 444,250 tonnes at
San Gonzalo grading 2.61 g/t gold, 322 g/t silver, 1% lead and 1.5%
zinc. (Orequest August 31, 2009 NI 43-101 compliant report)
Financing
In late 2010, Sprott Asset Management LP completed two
financings to aid the company's ongoing development. The financings
raised more than $8 million for the company and helped elevate its
profile in the investment community. Sprott participated in the
financings on behalf of certain funds and managed accounts
including investors introduced by Sprott Private Wealth LP. Sprott
has been instrumental in the development of many successful mining
ventures and is a leading independent asset manager dedicated to
achieving long-term superior returns for its clients. Sprott
manages several billion dollars through multiple funds and has been
the winner of numerous prestigious distinctions that are awarded to
Funds providing superior returns.
Social Media
In order to make the company more accessible for investors, in
2010 Avino launched itself into the world of social networking.
Investors can now communicate and keep up to date with the company
on Facebook, Twitter and YouTube.
Outlook
Upon completion of the bulk sample we are pleased at the
prospect of bringing the San Gonzalo Zone into production full
time. Avino is also planning a significant drill program to
increase resources at San Gonzalo and explore new targets in other
areas of the property. We plan to drill over seven thousand meters
through 56 core holes in 2011.
About Avino
Avino has operated continuously in Mexico since 1968, including
a period in which the Avino Mine produced for 27 years. During our
long history, we have weathered a number of difficult economies and
are now poised to capitalize on record precious metal prices.
I would like to thank our loyal shareholders for remaining
patient through the difficult years and to thank our management and
staff for their excellent work in the office and in the field.
ON BEHALF OF THE BOARD
David Wolfin, President & Chief Executive Officer
This release contains statements that are forward-looking
statements and are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading "Risk
Factors" and elsewhere in the Company's periodic filings with
Canadian securities regulators. Such information contained herein
represents management's best judgment as of the date hereof based
on information currently available. The Company does not assume the
obligation to update any forward-looking statement.
Neither 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.
Contacts: Avino Silver & Gold Mines Ltd. David Wolfin
President & CEO 604.682.3701 604.682.3600 (FAX) ir@avino.com
www.avino.com
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