NYSE - MKT: ASM
TSX-V: ASM
FSE: GV6
VANCOUVER, June 6, 2016 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX.V,
ASM: NYSE - MKT; "Avino" or "the Company") is pleased to
announce that commercial production at the Avino 'ET' Mine on the
Avino Property in Durango, Mexico
has been declared effective April 1,
2016.
"I am pleased to announce that Avino has declared commercial
production at its second, and largest mine on the Avino property.
We have continued to build our first class mining operation over
the last 19 months and declaring commercial production at the Avino
Mine marks the achievement of another milestone for the Company. We
are fortunate to have a strong and dedicated team of professionals
who have been instrumental in making the transition to commercial
production; I personally thank them for their significant
contributions.
The mining sector has seen its share of global challenges,
however, Avino has continued to advance and expand its projects
during this difficult period by keeping its production and overhead
costs low and staying focussed on its key objectives. Avino
believes this declaration of commercial production will not only
improve our financial performance, but will demonstrate to our
shareholders that we continue to build value while we expand our
operations and execute our long term objectives.
The Company's Management team has carefully analyzed the
technical and financial results of the Avino Mine during the
advancement and test period and concluded the results are
consistent with expectations.
Going forward, our Consolidated Financial Statements will
reflect the revenues and related production costs from the Avino
Mine, and therefore, we will no longer capitalize transactions
related to production mining. Our Statement of Comprehensive Income
will reflect the economics consistent with our production results,
which we are confident will enhance the value of the Company and,
if so, we believe Shareholder Value. We look forward to disclosing
the financial results from production at the Avino Mine in the Q2
Condensed Consolidated Interim Financial Statements, which will be
released in August.
I personally, on behalf of all of us at Avino, would like to
thank all Shareholders for your confidence.
- David Wolfin,
President, CEO & Director
Commercial Production
Commercial production at the Avino Mine was declared by the
Company's management following an advancement and test period of 19
months. On April 1, 2016, underground
mining commenced on upper level 11.5 using the long-hole retreat
sub-level caving method. The advancement and test period
established that mineral recoveries were at, or above, levels
necessary for positive cash flows and profitability, which among
other critical factors, were significant in concluding that a
production decision could be made. Further, the Company's
management has carefully considered the following factors and
concluded that its objectives have been met:
- All critical capital components have been acquired and
installed to achieve desired mining and processing results;
- The necessary labor force, including production and development
mining contractors, has been secured to mine and process at planned
levels of output;
- The mill has consistently processed at levels above design
capacity and budgeted production levels of 1,250 tpd with
consistent recoveries and grades; and
- As previously disclosed, the Company has entered into a long
term sales agreement with Samsung C&T U.K. Limited ('Samsung").
Further, Samsung has provided Avino with a term facility which has
provided capital to facilitate further expansion and development of
the Avino Mine.
Advancement and Test Period
Following eighteen months of dewatering and rehabilitation, on
September 1, 2014, the Avino Mine
entered the advancement and test period. During this period, Avino
was fortunate that most of the advancement occurred within
mineralized material which had been previously outlined in the 2013
technical report by Tetra Tech.
During the fourth quarter of 2014, development material was
processed on a limited scale using the 250 tpd Mill Circuit 2. Full
scale processing operations began in January
2015 at the rated throughput of 1,000 tpd using Mill Circuit
3. With the arrival of more underground mining equipment during
2015, additional mined tonnage is now also processed using Mill
Circuit 2. Additionally, Mill Circuit 3 has been optimized to
process 1,150 tpd for a combined throughput of approximately 1,400
tpd.
Since full scale processing began in January 2015, the Avino Mine has produced 944,165
oz Ag, 3,444 oz Au and 6,094,603 lbs Cu or 2,276,203 oz AgEq.
During this period, proceeds from the sale of Avino Mine
concentrates totaled CDN$26.7 million
but were classified as a recovery of exploration and evaluation
expenses rather than revenue. Starting in the second quarter of
2016 Avino will report the proceeds as revenue and will also report
on production costs.
Qualified Person(s)
Avino's Mexican projects are under the supervision of Mr.
Chris Sampson, P.Eng, BSc, Avino
consultant and Mr. Jasman Yee,
P.Eng, Avino director. These individuals are qualified persons
("QP") within the context of National Instrument 43-101 and have
reviewed and approved all the applicable technical data in this
press release.
Avino
Avino is a top-tier, low-cost junior producer. Avino's mission
is to create shareholder value through profitable organic growth at
the historic Avino property near Durango,
Mexico, and the Bralorne property in southwestern
British Columbia, Canada. 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 & Chief Executive Officer
Under National Instrument 43-101, the Company is required to
disclose that it has not based its production decisions on NI
43-101-compliant reserve estimates, preliminary economic
assessments, or feasibility studies, and historically production
decisions made without such reports have increased uncertainty and
higher technical and economic risks of failure. These risks
include, among others, areas that are analyzed in more detail in a
feasibility study or preliminary economic assessment, such as the
application of economic analysis to mineral resources, more
detailed metallurgical and other specialized studies in areas such
as mining and recovery methods, market analysis, and environmental,
social, and community impacts. 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 results of this work are
evident in the Company's discovery of the San Gonzalo resource, and
in the Company's record of mineral production and financial returns
since operations at levels intended by management commenced at the
San Gonzalo Mine in 2012. This approach was applied for the
advancement of the Avino Mine project, for which similar risks and
uncertainties were identified.
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 including the PEA, and
exploration results, the potential tonnage, grades and content of
deposits, timing and establishment and extent of resources
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, our ability to continue commercial production at the
Avino mine, 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 of 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.
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.
SOURCE Avino Silver & Gold
Mines Ltd.