Avino Files Technical Report on SEDAR

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 24, 2013) - Avino Silver & Gold Mines Ltd. (TSX VENTURE:ASM)(NYSE MKT:ASM)(FRANKFURT:GV6) ("Avino" or the "Company") is pleased to announce it has filed the Technical Report on the Avino Property, Durango Mexico on the SEDAR system. Findings from the report were initially disclosed in the Company's news release dated June 10 2013. The report has an effective date of July 19, 2013 and includes resource estimates from the San Gonzalo and Avino mine systems as well as the tailings resource; all of which are located on Avino's property near Durango in west-central Mexico. The technical report was prepared by Tetra Tech, an independent engineering consultant commissioned by Avino.

Below is a summary of current mineral resources at the San Gonzalo and Avino Mines as well as the oxide tailings resource (as reported in the July 2012 Technical Report on the Avino Property) grouped into the measured, indicated and inferred categories. The Avino and San Gonzalo mineral resource estimates were prepared by Robert Morrison, Ph.D., P.Geo., while the oxide tailings resource was prepared by Mike O'Brien, M.Sc., P.Geo. Dr. Morrison and Mr. O'Brien are both employees of Tetra Tech, and independent of the Company, as defined by Section 1.5 of NI 43-101.

Resource Category Deposit Cut-off Ag Eq* Tonnes Contained Metal Grade
Ag_Eq Ag Au Cu Ag_Eq Ag Au Cu
(oz) (oz) (oz) (t) (g/t) (g/t) (g/t) (%)
Measured San Gonzalo System 150 71,416 914,791 759,801 3,288 N/A 398 331 1.432 N/A
Total Measured - All Deposits   71,416 914,791 759,801 3,288 N/A        
                       
Indicated Avino System 100 4,253,968 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727
Indicated San Gonzalo System 150 222,407 2,763,069 2,043,514 15,263 N/A 386 286 2.134 N/A
Total Indicated - All Deposits   4,476,375 26,601,698 12,878,852 87,470 30,914        
Total Measured & Indicated - All Deposits   4,547,791 27,516,489 13,638,653 90,758 30,914        
                       
Inferred Avino System 100 3,220,896 16,262,944 7,068,831 75,858 17,719 157 68.3 0.733 0.55
Inferred San Gonzalo System 150 1,085,276 10,494,843 8,158,834 49,549 N/A 300.8 233.8 1.42 N/A
Inferred Oxide Tailings 50* 2,340,000 N/A 6,660,000 39,530 N/A N/A 91.3 0.54 N/A
Total Inferred - All Deposits   6,646,172 26,757,787 21,887,665 164,937 17,719        

*Ag Eq not calculated for the oxide tailings resource; cut-off in g/t Ag.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.

"We are very pleased with the results of this study. We've substantially increased the resource at San Gonzalo and have the first ever mineral resource estimate on the main Avino Mine. The Avino property has an extensive mining history; with this new resource estimate and our improving exploration capabilities, Avino is poised to continue that legacy into the foreseeable future."

David Wolfin, President, CEO and director of Avino Silver and Gold

Highlights of the San Gonzalo Mine Resource include:

  • A measured and indicated silver resource of 293,823 tonnes at an average grade of 297 g/t silver and 1.98 g/t gold totaling 2,803,315 troy ounces of silver and 18,551 troy ounces of gold using a base case cut-off grade of 150 g/t silver equivalent.
  • An inferred silver resource of 1,085,276 tonnes at an average grade of 233.8 g/t silver and 1.42 g/t gold totaling 8,158,834 troy ounces of silver and 49,549 troy ounces of gold using a base case cut-off grade of 150 g/t for silver equivalent.

Highlights of the Avino Mine Resource include:

  • An indicated silver resource of 4,253,968 tonnes at an average grade of 79.2 g/t silver, 0.528 g/t gold and 0.727% copper totaling 10,835,338 troy ounces of silver, 72,207 troy ounces of gold and 30,914 tonnes copper using a base case cut-off grade of 100 g/t silver equivalent.
  • An inferred silver resource of 3,220,896 tonnes at an average grade of 68.3 g/t silver, 0.733 g/t gold and 0.55% copper totaling 7,068,831 troy ounces of silver, 75,858 troy ounces of gold and 17,719 tonnes of copper using a base case cut-off grade of 100 g/t silver equivalent.

San Gonzalo Mine System:

The San Gonzalo Mine estimate was based on data from surface diamond drill programs between 2007 and 2011 (64 holes and 14,624 metres of drilling) and underground development sampling data from levels 1, 2, 3 and 4. Modelling of this data also shows the presence of mineralization for the nearby Angelica vein and its resource estimate has been added to those of the San Gonzalo vein.

The base case scenario used in the estimation assumes a silver price of $US20 which translates into a cut-off grade of 150 g/t silver equivalent at San Gonzalo. The current silver price analysis using US$24.50 per ounce establishes a cut-off grade of 120 g/t for silver equivalent. Since commercial production began in October 2012, Avino has been using a cut-off grade of 120 g/t for silver equivalent.

A summary of the resource at the San Gonzalo mine using different cut off grades is presented below:

Resource
Category
Ag_Eq
Cut-off
Volume
(m
3)
Tonnes Density Metal Grade
Ag_Eq
(oz)
Ag
(oz)
Au
(oz)
Ag_Eq
(g/t)
Ag
(g/t)
Au
(g/t)
Measured and Indicated 50 163,400 425,764 2.606 4,076,578 3,124,273 20,199 297.8 228.2 1.476
100 134,112 349,348 2.605 3,901,468 2,987,063 19,396 347.4 265.9 1.727
120 126,688 329,323 2.599 3,830,639 2,927,804 19,150 361.8 276.5 1.809
150 113,264 293,822 2.594 3,677,861 2,803,315 18,550 389.3 296.8 1.964
200 89,704 231,583 2.582 3,325,495 2,528,182 16,912 446.6 339.6 2.271
250 76,672 197,530 2.576 3,079,688 2,339,140 15,708 484.9 368.3 2.473
Inferred 50 560,128 1,476,184 2.635 11,899,790 9,281,947 55,527 250.7 195.6 1.170
100 512,920 1,352,355 2.637 11,615,072 9,055,601 54,289 267.1 208.3 1.249
120 488,944 1,289,240 2.637 11,391,021 8,880,117 53,259 274.8 214.2 1.285
150 412,200 1,085,276 2.633 10,494,843 8,158,834 49,549 300.8 233.8 1.420
200 296,232 779,484 2.631 8,811,481 6,824,184 42,153 351.6 272.3 1.682
250 209,536 551,401 2.632 7,148,532 5,508,613 34,785 403.2 310.7 1.962

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.

Avino Mine System:

The Avino Mine estimate was based on data from surface diamond drill programs between 2006 and 2012 (34 holes and 11,523 metres of drilling). Historic mining information was also provided to assist with the modelling of the deposit for the mined out open pit and underground areas as well as to project the shape of the deposit below the 12th level. The 3D wire frame model shows the presence of another mineralization zone called the "Hanging Wall Breccia" or "Cross Cutting Vein". Its resource estimate has been included in the Avino Mine system.

A summary of the resource at the Avino mine using different cut off grades is presented below:

Resource
Category
Cut-off
Ag Eq
Volume
(m
3)
Tonnes Density Metal Grade
Ag_Eq
(oz)
Ag
(oz)
Au
(oz)
Cu
(t)
Ag_Eq
(g/t)
Ag
(g/t)
Au
(g/t)
Cu
(%)
Indicated 50 3,156,176 8,485,813 2.689 33,698,095 14,645,088 105,279 45,384 123.5 53.7 0.386 0.535
80 2,113,760 5,673,771 2.684 27,938,365 12,390,900 86,867 36,874 153.2 67.9 0.476 0.650
100 1,584,648 4,253,968 2.684 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727
150 863,528 2,327,430 2.695 16,205,941 7,697,377 46,408 20,369 216.6 102.9 0.620 0.875
200 405,792 1,105,097 2.723 9,474,178 4,522,283 27,828 11,718 266.7 127.3 0.783 1.060
250 218,048 596,569 2.736 5,820,374 2,792,304 16,552 7,243 303.5 145.6 0.863 1.214
Inferred 50 3,316,272 8,982,925 2.709 29,258,352 12,407,216 130,031 33,978 101.3 43.0 0.450 0.378
80 1,742,616 4,710,633 2.703 20,488,097 8,718,189 97,196 22,668 135.3 57.6 0.642 0.481
100 1,193,320 3,220,896 2.699 16,262,944 7,068,831 75,858 17,719 157.0 68.3 0.733 0.550
150 519,704 1,399,366 2.693 8,967,681 4,229,254 29,878 10,670 199.3 94.0 0.664 0.763
200 204,560 552,562 2.701 4,338,265 2,289,307 7,375 5,539 244.2 128.9 0.415 1.002
250 71,344 195,258 2.737 1,802,917 1,022,743 2,284 2,197 287.2 162.9 0.364 1.125

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.

Method of Mineral Resource Calculation

The Avino system and San Gonzalo system mineral resources were modelled and estimated using Datamine™ software version 3.20.6140.0. The reported mineral resource was interpolated using ordinary kriging (OK) and capped grades. Avino mineralization included the interpolation of silver, gold and copper, while San Gonzalo mineralization included the interpolation of silver and gold. Where sufficient data was available, specific gravity (SG) was estimated using OK, otherwise the average estimated value was assigned.

Reported cut-offs utilize a silver equivalent (Ag_Eq) calculation where the total metal value is converted into an in situ silver resource. For reporting purposes, a base-case Ag_Eq cut-off of 100 g/t is used for the Avino system and an Ag_Eq cut-off of 150 g/t is used for the San Gonzalo system. Current cut-offs used for financial projections by Avino, based on recent market prices, include 80 g/t for the Avino system and 120 g/t for the San Gonzalo system.

To calculate the above silver equivalent grades, Avino has assumed a price of silver of US $20 per oz., a price of copper of US $3.66 per lb. with a recovery rate of 85% for copper, and a price of gold of US $1,507 per oz., with 75% recovery rate for gold at the Avino Mine and 70% recovery rate for gold at the San Gonzalo Mine.

The oxide tailings mineral resource was estimated using Geovariance Isatis™ software and OK interpolation with uncapped grades. The assay values for this estimate are based on 28 drill holes which were completed on the tailings by CMMA in 1990, and include 407.75 m of drilling and 383 assays of both gold and silver. A specific gravity of 1.605 was used based on the global average for the oxide tailings reported by Slim (2005d). For reporting purposes, a silver cut-off of 50 g/t was used; an Ag Eq value was not calculated for the oxide tailings. This mineral resource was estimated by Mr. Mike O'Brien, and has an effective date of July 24, 2012. It was originally disclosed by Tetra Tech (2012), but is considered current.

Qualified Person(s)

Avino's projects are under the supervision of Chris Sampson, P.Eng., B.Sc., ARSM Avino Consultant and Mr. Jasman Yee, P.Eng., Avino director, who are both qualified persons within the context of National Instrument 43-101. Both have reviewed and approved the technical data in this news release.

About Avino

Founded in 1968, Avino's mission is to create shareholder value through profitable organic growth at the historic Avino property near Durango, Mexico. We are committed to managing all business activities in an environmentally responsible and cost-effective manner while contributing to the well-being of the community in which we operate.

ON BEHALF OF THE BOARD

David Wolfin, President & CEO

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, 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.

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 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.

Contact:
Avino Silver & Gold Mines Ltd.
David Wolfin
President & CEO
604.682.3600
604.682.3701
ir@avino.com
www.avino.com

Rates

View Comments (0)