NYSE - MKT: ASM
TSX-V: ASM
FSE:
GV6
VANCOUVER, May 8, 2017
/CNW/ - Avino Silver &
Gold Mines Ltd. (ASM: TSX.V, ASM: NYSE – MKT, GV6: FSE, "Avino" or
"the Company") announces the following updates from its Avino
property in Durango, Mexico.
Avino is pleased to announce that the plans which were discussed
in January, 2017 are progressing very well. The updates below from
its Avino and San Gonzalo Mines include the ongoing plant and mine
expansion to increase throughput capacity at the processing plant
by approximately 70%, as well as the advancement of the Oxide
Tailings Resource project with the recently announced positive
Preliminary Economic Assessment. Additionally, an
optimization review of our internal operating plan was carried out
which prompted discussions and studies on Tailings Storage Facility
("TSF") alternatives. The foregoing resulted in a recommendation to
use tailings as backfill, which led to a temporary halt in
construction of the new TSF in order to gain a further
understanding of this possible alternative.
"We are extremely pleased with the progress being made with
respect to our 2017 plans. As I stated in January, these
significant plans will support the company's growth efforts,
further develop and maintain a solid production profile going
forward, and continue to create long-term shareholder value. I am
very proud of the dedication and efforts of our team at the Avino
mine site who are working very hard to ensure the planned work is
progressing on schedule."
David Wolfin –
President & CEO Avino Silver
& Gold Mines Ltd.
Plant and Mine Expansion Updates
Mill Expansion – Circuit #4
The addition of Circuit #4 which will have an identical
throughput capacity as Circuit #3, with the same size ball mill,
flotation cells, concentrate thickener and filter press, is on
schedule and on budget.
The civil work for the ball mill foundation, feed conveyor and
the reclaim tunnel has commenced and the forming and rebar work has
started with the ball mill pedestals. The pad for the flotation
cells, as well as the thickener foundations, has been poured. In
addition, the electrical substation has been installed and wiring
of the electrical components is well underway. Please click on the
attached link http://www.avino.com/s/photos.asp?ReportID=789007 to
view photos showing 1) the rebar of the ball mill pedestals, 2) the
thickener foundations, and 3) the pad for the flotation cells.
The company acquired a previously used ball mill in excellent
condition which has arrived on site and is currently being prepped
for installation. The company has also ordered the long lead items
which included new flotation cells, thickener and filter press;
accordingly, the delivery dates will dictate the completion
schedule. The ball mill bearing surfaces are currently being
cleaned and prepared for installation once the mill foundations
have been poured.
The existing crushing plant will be upgraded to accommodate the
higher throughput with a new larger Sandvik tertiary cone crusher,
which has been ordered.
The company has obtained the services of a local Durango company
to fabricate the structural steel components and conveyors that
will be shipped to the site in accordance with the construction
schedule.
The Initial mill feed for Circuit #4 will come from existing
surface stock piles while the mine is being developed in the gap
zone between San Luis and Elena
Tolosa.
The only additional mine equipment that will be required for the
above mentioned development will be a new jumbo drill and a
scooptram, which are currently on order.
Oxide Tailings Preliminary Economic Assessment (PEA)
The company announced a positive PEA of re-treating the Avino
mine tailings on April 11, 2017,
which included the results from the Company's recent 2016 Resource
Estimate (see news release dated September
26, 2016) for the Avino property which included the San
Gonzalo Mine, the main Avino Mine system, and the property's Oxide
Tailings. The full news release announcing the PEA is on our
website at the following link: (click here to view
http://www.avino.com/s/news.asp?ReportID=785546, and the full
report will be filed on SEDAR and with the U.S. Securities
Commission on or before May 26,
2017.
Alternative Tailings Disposal
Management retained the services of SRK Consulting (Canada) Inc. and MPL Mine Paste Ltd. to review
the mine operating plan and alternatives for tailings
disposal. Additionally, an optimization review of our
internal operating plan was carried out resulting in discussions on
alternatives to conventional tailings storage and a recommendation
to use tailings as backfill. Their recommendation is contingent on
a revised internal operating plan, which is underway and is based
on using the thickened tails as backfill for ground support
underground for the mined out stopes, and tailings disposal into
the existing open pit as preferred alternatives to the conventional
tailings storage facility (TSF). A revised internal operating plan
will be submitted for our consideration; however, in the meantime
management felt it prudent to temporarily halt construction of the
new TSF to further understand this possible new route, and if the
plan is agreed to by the company, a follow up site visit will be
planned to implement it.
The advantages to this alternative method of tailings disposal
include limited ground disturbance, a reduced footprint on surface
from future mining, increased tailings storage capacity, minimal
permitting, minimization of social, and community issues, and lower
estimated capital expenditures.
Drilling and Exploration Update
The current infill drill program of 3,000 metres and 18 holes in
the gap zone between San Luis and
Elena Tolosa has recently been expanded to include a further
20 holes as announced in our news release dated April 25, 2017, which can be viewed on our
website at the following link
http://www.avino.com/s/news.asp?ReportID=787740.
The company has retained Michael O'Brien
P.Geo., Pr.Sci.Nat., who is an employee of QG Australia Pty
Ltd (an ARANZ Geo Company), and independent of Avino, to update the
category of the resource in the gap zone with results of this
drilling, as well as to verify the size of the new high grade
mineralized zone on Level 4 to the west on San Gonzalo and the
results to the west of San Luis,
as well as to independently verify the size of the new zones.
The new high grade zone on Level 4 at San Gonzalo has been
extensively sampled and those samples have been sent to an
independent lab for verification.
Furthermore, a new core storage facility has been erected on
site and is being stocked.
Bismuth Removal Testwork
The company has planned a small scale pilot project to test the
reduction or removal of bismuth content from the Elena Tolosa
concentrate. The process consists of a roasting step followed
by leaching of the calcines to remove the Bismuth. Bismuth content
can accrue steep penalties at the smelter and removal of it can
result in significant revenue gains if successful.
Zinc Circuit
Testing of the zinc circuit has been ongoing in an effort to
improve the San Gonzalo gold and silver recoveries. To date the
results of the testing have been varied due to fluctuating zinc
feed grades, therefore, more work will be done to establish a
marketable product.
Qualified Person(s)
Avino's Mexico projects are
under the supervision of Chris
Sampson, P.Eng, Avino Consultant and Jasman Yee P.Eng, Avino Director, who are both
qualified persons within the context of National Instrument
43-101. Both have reviewed and approved this news
release.
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.