NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, July 10, 2017 /CNW/ - Avino Silver & Gold Mines Ltd. (ASM: TSX.V,
ASM: NYSE – MKT, GV6: FSE, "Avino" or "the Company") is pleased
to provide the following update on the Bralorne Gold Mine located
near Gold Bridge, British
Columbia.
"Since acquiring the Bralorne Gold Mine in 2014, the
Company has been focussed on returning this historical gold mine to
production while building long term relationships with the First
Nations and local communities towards this common goal. Instead of
taking a phased approach to the future re-opening of the mine, the
Company is evaluating the possibility of combining the phases and
potentially start the mine at a higher operating rate. A diamond
drill program is being planned for the fall to define the resources
for mining purposes and potentially expand the
resources."
David Wolfin –
President & CEO Avino Silver
& Gold Mines Ltd.
Readers are cautioned that the following discussion
concerning proposed operations and any decision by Avino to place
the Bralorne Gold Mine into production are not based on a
feasibility study or mineral reserves demonstrating economic and
technical viability, and as a result there is increased uncertainty
and there are multiple technical and economic risks of failure,
which are associated with any production decision. These
risks, among others, include areas that would be analyzed in more
detail in a feasibility study, such as applying economic analysis
to resources and reserves, more detailed metallurgy, and a number
of specialized studies in areas such as mining and recovery
methods, market analysis, and environmental and community
impacts.
Progress Update
The Company has reviewed three different potential scenarios for
developing an operating plan. The original phased plan was
for the future start-up of a small tonnage operation, and during
the course of work being completed, our onsite consultants have
identified ground and safety issues in the existing 800 level
tunnel. It was determined that the 800 level needed
rehabilitative work, and consultants were engaged to review and
develop a plan for the repairs. In view of the proposed
repairs, which would have restricted mine throughput, the
construction of a new tunnel on the 800 level, which was originally
included in a later phase, is now being evaluated. The consultant's
recommendations are to construct a new tunnel on the 800 level, due
to the age and limiting size of the original main access
tunnel, which also has issues with difficult ground
conditions. The future construction of a new 800 tunnel
should allow earlier access to the resources below the 800
level.
The recommended new 800 level tunnel would be sized for
mechanized equipment (4.5 metres x 4.5 metres) for the long term
development of the mine to depth. It would be near the mill,
and replace the old 800 tunnel (2.5 metres x 2.5 metres) which was
only accessible by small track equipment. The old tunnel
would be made safe and would still be used for ventilation,
secondary egress, and mine water drainage.
The proposed new mine plan also contemplates testing a different
mining method, sub level long hole retreat mining on veins where
the hanging wall, foot wall and mineralization are conducive to
this method, which should be safer and more productive than the
shrinkage and cut & fill mining methods used in the past.
Combined with the larger new tunnel, the mining operation should be
more mechanized and efficient than in the past.
Underground Drill Program and Surface Exploration
An underground drill program will be carried out this year to
better define the resources above and below the 800 level.
Garth Kirkham, P. Geo., the
Company's independent geological consultant for Bralorne, is
designing a drill program. The Company also plans to carry
out a surface exploration program this year, consisting of mapping
and trenching and possibly some drilling on its expanded ground
position that now incorporates the contiguous BRX claims. The
program will be aimed at finding near surface veins that could
provide early mill feed.
Environmental & Permitting Progress
The Company is in discussions with the Ministry of Mines and
Energy ("MEM") and Ministry of the Environment ("MOE") to receive
an amended Mine Permit which would be updated to modern
environmental and permitting standards that would allow the Company
to operate the mine at 100 tonnes per day. Permitting has
taken longer than expected, and is partly a result of the
government taking a more rigorous approach to environmental
requirements and having many projects at the permitting stage in
British Columbia. If amended as expected, we would be in
receipt of a modern permit, which should take less time to amend
for modest future expansions. The Company's senior management
and site personnel continue to work closely with the MEM and MOE,
and recently met with the Chief Inspector and Deputy Chief
Inspector to discuss environmental and permitting. It was a
very productive meeting, and a follow up meeting is planned for the
fall.
The Company is pleased to have achieved the following key
milestones since acquiring the Bralorne Gold Mine in 2014 and
closed the mill in December due to the Tailings Storage
Facility ("TSF") being at capacity
- Doubled the size of the original Water Treatment Plant ("WTP")
from 3.5 litres per second to 7 litres per second in 2015 as the
mine water runoff during freshet increased significantly;
- Constructed a new state of the art WTP in 2016 capable of
treating 35 litres per second;
- Raised the dam for the TSF by 2.4 metres in 2015;
- Constructed a buttress at the toe of the dam for the TSF in
2016 and received approval to use the TSF in September, 2016;
- An Interim Closure and Reclamation Plan was submitted in 2015
as part of the Amendment to the Mining Permit, which was reviewed
by all proponents including the First Nations with extensive
discussion and feedback, and is now waiting final consultation with
First Nations and approval by MEM and MOE;
- Resources, which were updated in an NI-43-101 report dated
October 20, 2016, were incorporated
into the proposed internal mine plan;
- An independent consulting engineering firm was engaged in 2016
to review the mill and surface infrastructure to determine the best
way to upgrade these facilities, and a plan is now in place that
has been accepted by the Company;
- In 2016, Bralorne, North Island College, the BC Government and
First Nations completed two educational cohorts to provide basic
mining training to 24 members of the St'at'imc First Nations in
Lillooet; and
- A Letter of Intent ("LOI") was signed with the First Nations in
May of 2017 to work together to form partnerships that will be
beneficial to the First Nations, the communities and the Company in
the development and operation of the Bralorne Gold Mine.
Mill and Infrastructure
During this past year, an independent consulting engineering
firm has reviewed the mill and infrastructure to determine which
buildings and equipment should be replaced. Unfortunately,
most of the equipment is too small for the anticipated higher mill
operating rate, and some of the buildings no longer meet the BC
building code, due to their age. Accordingly, new or
refurbished equipment is being proposed for the mill. A separate
crushing building is being considered for the mill, with separate
fine ore storage, which will provide more space in the current mill
building for the larger equipment being considered. The
buildings that do not meet code will be upgraded to meet the code,
or removed / demolished and then replaced.
The Company is pleased to report that the following work has
been completed or is underway:
- Demolition of existing coarse and fine ore bin -
Completed
- Simplification of the crushing circuit with a larger primary
and secondary crushing plant, which has the potential for future
expansion– Conceptual engineering completed
- Removal of retired equipment (crushing plant, ball mill
foundations and pedestals) – Partly completed
- Construction of new tailings pumping system – Engineering
underway
- Upgrading of existing electrical systems –
Completed
- High Voltage Overhead Line Re-route – Plans are in
progress
- BC Hydro Upgrade Activities – Plans in
progress
- Mill and surface lighting – Lighting upgrades in all
surface buildings to be installed
- Assay lab demolition – Completed
Mining Day at the Legislature
Mining Day at the Legislature was attended by senior management
and executives of most of the operating mines in British
Columbia. Approximately 25 attendees were divided into
smaller groups who then had the opportunity to meet with MLA's,
Ministers, Deputies and members of the opposition to present
industry issues such as permitting time lines and the inspection
process. Mining company representatives were well received, and the
government representatives of all parties are all supportive of
mining.
First Nations and Surrounding Communities
First Nations
We are very pleased with the Company's evolving relationship
with the First Nations in the area who have proven to be supportive
and collaborative; and instrumental in assisting in interactions
with provincial regulators.
Recently there have been a number of important factors that have
contributed to the development of the project, firstly the signing
of the LOI with St'át'imc Eco Resources which recognizes the
opportunity for collaboration and the establishment of joint
ventures to allow the St'át'imc First Nations (the "St'át'imc") to
economically participate in the development and ongoing operations
of the Bralorne Gold Mine project. St'át'imc Eco-Resources
Ltd. represents ten of the eleven St'át'imc communities and is
owned and operated by members of the St'át'imc. Please see
the Avino news release dated May 1 on
our website at
http://www.avino.com/s/news.asp?ReportID=788396. Click
here or on the link below to view a video from the 2017 Underground
Mining Training program graduation ceremony.
https://vimeo.com/213378917
Hiring and Training
During the past month, the Company hired a Metallurgist, Lead
Electrician, Apprentice Electrician, Senior Mining Engineer, Senior
Mine Geologist, and Junior Geologist; all of which are important
and strategic hires to support existing staff and strengthen the
team. Additionally, the Company, together with North Island
College, St'át'imc Government Services and the BC and Federal
Governments, participated in two educational cohorts to provide
basic mining training to 24 members of the St'át'imc First Nation
in Lillooet, two graduates have
been hired thus far and we expect to hire more. Avino is also
working in conjunction with Thompson Rivers University, the Center
for Training Excellence in Mining and a number of other mining
companies within the province to develop a provincially recognized,
accredited underground mining training program.
Community Engagement
Recognizing the need for improved infrastructure and more
amenities to make the Bralorne area an attractive location for
future employees, Avino has begun working with the
Squamish-Lillooet Regional District, St'át'imc Eco-Resources,
Bralorne Community Advisory Committee, Bridge River Economic
Development Committee, and Thompson Rivers University to develop a
plan to rejuvenate the surrounding communities, provide housing
options for employees and their families as well as to protect
existing facilities crucial to the community's future
growth.
Qualified Person(s)
The Bralorne Project in BC is under the supervision of
Jasman Yee P. Eng, an Avino
Director, and Fred Sveinson, P.
Eng., who are both qualified persons within the context of National
Instrument 43-101.
About Avino
Avino is a silver and gold producer with a diversified pipeline
of gold, silver and base metals properties in Mexico and Canada employing approximately 500
people. Avino produces from its wholly owned Avino and San
Gonzalo Mines near Durango,
Mexico, and is currently planning for future production at
the Bralorne Gold Mine in British
Columbia, Canada. The Company's gold and silver 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 near Durango,
Mexico, and the strategic acquisition of mineral exploration
and mining properties. 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 & 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 our belief as to the
extent and timing of various studies, and exploration results, the
potential tonnage, grades and content of deposits, timing and
establishment and extent of resource 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, 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 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.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian securities
laws, which differ from the requirements of United States securities laws. In particular,
the term "resource" does not equate to the term "reserve". The
Securities Exchange Commission's (the "SEC") disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by SEC standards, unless such information is required to
be disclosed by the law of the Company's jurisdiction of
incorporation or of a jurisdiction in which its securities are
traded. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. Disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Neither the 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.