Vancouver, British Columbia--(Newsfile Corp. - June 12, 2013) - Vancouver based Avino Silver and Gold (TSXV: ASM) (NYSE MKT: ASM) announced the completion of the resource estimates from the company's Avino property, located 80 kilometres northeast of Durango, Mexico, in the heart of the Sierra Madre Silver Belt. The new estimates are from the San Gonzalo and Avino mine systems.
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When combined with the existing oxide tailings resource the Avino property now hosts a total measured and indicated resource of 27.5 million ounces of silver equivalent along with 26.7 million ounces of silver equivalent in the inferred category.
At the San Gonzalo Mine, the company reported a measured and indicated resource of 3.6 million ounces of silver equivalent, along with an inferred resource of 10.5 million ounces of silver equivalent, using a base case cut-off grade of 150 grams per tonne silver equivalent.
At the Avino Mine, the company reported 23.8 million ounces of silver equivalent in the indicated category and 16.3 million ounces of silver equivalent in the inferred category, using a base case cut-off grade of 100 grams per tonne silver equivalent.
The base case used for both studies assumed a silver price of $US20. The current silver price analysis using US$24.50 per ounce establishes a cut-off grade of 120 grams per tonne for silver equivalent. Since commercial production at San Gonzalo began in October 2012, Avino has been profitably using a cut-off grade of 120 grams per tonne for silver equivalent. For more complete details on these calculations, including the tonnage and grades, please refer to the company's latest news release (http://www.avino.com/s/news.asp?ReportID=587344).
David Wolfin, President and CEO stated, "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."
The Avino Mine was founded by the Spaniards in 1558, and by the end of the 18th Century was the largest open cut mine in the world. Avino acquired the project in 1974 and produced silver, gold, copper and lead for 27 years, before ceasing production in 2001 due to low metal prices.
Avino started commercial production at the San Gonzalo mine in October 2012 at the rate of 250 tonnes per day. The operation generated revenues of $2,255,000 for the quarter ending December 31, 2012 and $3.5 million during the first quarter of 2013. Cash cost per silver equivalent ounce during Q1 2013 was $14.74 with production totaling 191,107 ounces of silver equivalent.
In April 2013, the company opened a 2nd 250 tonne per day mill circuit, and reported production of 14,023 ounces of silver equivalent during May. Feed for the second circuit is currently being drawn from historic surface stockpiles left from the previous operation meaning it is processed without incurring any mining costs.
The company anticipates additional production by re-opening the main Avino Mine during 2014 at the rate of 1,000 tonnes per day. Prior to the mines shut down in 2001, production averaged 1.7 million ounces of silver equivalent annually during the final 3 full years of production. Avino is also continuing to examine options to process a large tailings resource left from previous operations.
The oxide tailings resource contains an additional 6.7 million ounces of silver in the inferred category and was the subject of a preliminary economic assessment in 2012.
The company recently designed its own silver coin which can be purchased by contacting the company directly.
Avino shares currently trade at $1.10, and with 27.4 million shares outstanding, the company is capitalized at $30 million.
For more information, please visit Avino's website at www.avino.com, phone 604-682-3701 or email ir@avino.com.
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.
Avino's projects are under the supervision of Chris Sampson, P.Eng, BSc, 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.
Disclaimer
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.
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