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Avino Silver & Gold Mines Ltd
Symbol ASM
Shares Issued 89,568,682
Close 2021-01-13 C$ 1.56
Recent Sedar Documents

Avino Silver pegs Avino at 75.9M oz AgEq M+I

2021-01-13 07:48 ET - News Release

Mr. David Wolfin reports

AVINO REPORTS 60% INCREASE IN MEASURED AND INDICATED MINERAL RESOURCES TO 75.9 MILLION OUNCES SILVER EQUIVALENT AT THE AVINO PROPERTY

Avino Silver & Gold Mines Ltd. has provided an updated mineral resource estimate for the company's Avino property located near Durango in west-central Mexico. The updated estimate includes the property's Avino mine (Elena Tolosa -- ET) vein systems, the San Gonzalo mine and the property's oxide tailings. The mineral resources estimate has been included in an updated technical report prepared by Tetra Tech Inc. under National Instrument 43-101, which will be available on SEDAR under the company's profile and filed on Form 6-K with the SEC (Securities and Exchange Commission) within 45 days.

Highlights (compared with Feb. 21, 2018)

Measured and indicated mineral resources

  • Increase of 60 per cent in silver equivalent ounces, up to 75.9 million ounces;
  • Increase in gold and copper grades by 6 per cent and 11 per cent, up to 0.67 gram per tonne and 0.41 per cent;
  • Increase in silver grade at ET by 3 per cent, up to 63 g/t;
  • Decrease in consolidated silver grades by 10 per cent, to 69 g/t, as a result of depletion at San Gonzalo;
  • Increase in tonnage of 90 per cent overall, totalling 20.3 million metric tonnes.

Inferred mineral resources

  • Decrease of 6 per cent in silver equivalent ounces, down to 21.8 million ounces.

  
                            AVINO MINE MINERAL RESOURCES SUMMARY AS AT OCT. 31, 2020
                                    Measured and indicated mineral resources
                                                                                            Grade
                                                 Cut-off
                                                   (AgEq         Metric      AgEq        Ag        Au        Cu
Resource category          Deposit                   g/t)        tonnes      (g/t)     (g/t)     (g/t)       (%)

Measured                   Avino -- ET                60      4,760,000       120        74      0.63      0.55
Measured                   San Gonzalo system        130        267,000       356       263      1.36      0.00
Total measured             All deposits                       5,027,000       133        84      0.67      0.52
Indicated                  Avino -- ET                60     13,890,000       107        59      0.68      0.41
Indicated                  San Gonzalo system        130        216,000       304       230      1.09      0.00
Indicated                  Oxide tailings             50      1,120,000       124        89      0.42      0.00
Total indicated            All deposits                      15,226,000       111        64      0.67      0.37
Total measured
and indicated              All deposits                      20,253,000       117        69      0.67      0.41


                            AVINO MINE MINERAL RESOURCES SUMMARY AS AT OCT. 31, 2020
                                    Measured and indicated mineral resources

                                                                                 Metal contents

                                           Cut-off                       AgEq          Ag          Au
                                             (AgEq         Metric    (million    (million   (thousand          Cu
Resource category  Deposit                     g/t)        tonnes       tr oz)      tr oz)      tr oz)     tonnes

Measured           Avino -- ET                  60      4,760,000        18.4        11.3          97      26,300
Measured           San Gonzalo system          130        267,000         3.1         2.3          12           0
Total measured     All deposits                         5,027,000        21.5        13.6         109      26,300
Indicated          Avino -- ET                  60     13,890,000        47.9        26.5         304      56,700
Indicated          San Gonzalo system          130        216,000         2.1         1.6           8           0
Indicated          Oxide tailings               50      1,120,000         4.5         3.2          15           0
Total indicated    All deposits                        15,226,000        54.5        31.3         327      56,700
Total measured
and indicated      All deposits                        20,253,000        75.9        44.9         436      83,000

                     AVINO MINE MINERAL RESOURCES SUMMARY AS AT OCT. 31, 2020
                                   Inferred mineral resources

                                                                          Grade
                                          Cut-off                                
                                            (AgEq       Metric     AgEq      Ag      Au        Cu
Resource category  Deposit                    g/t)      tonnes     (g/t)   (g/t)   (g/t)       (%)

Inferred           Avino -- ET                 60    5,230,000       95      51    0.64      0.34
Inferred           San Gonzalo system         130       85,000      298     233    0.96      0.00
Inferred           Oxide tailings              50    1,230,000      125      85    0.47      0.00
Total inferred     All deposits                      6,545,000      103      59    0.61      0.27

                     AVINO MINE MINERAL RESOURCES SUMMARY AS AT OCT. 31, 2020
                                   Inferred mineral resources

                                                                     Metal contents

                                          Cut-off                    AgEq          Ag           Au
                                            (AgEq       Metric    (million    (million    (thousand        Cu
Resource category  Deposit                    g/t)      tonnes       tr oz)      tr oz)       tr oz)   tonnes

Inferred           Avino -- ET                 60    5,230,000        16.0         8.5          108    17,700
Inferred           San Gonzalo system         130       85,000         0.8         0.6            3         0
Inferred           Oxide tailings              50    1,230,000         5.0         3.4           19         0
Total inferred     All deposits                      6,545,000        21.8        12.5        129.0    17,700

Notes
  
(1) Figures may not add to totals shown due to rounding. 

(2) Mineral resources that are not mineral reserves do not have demonstrated economic viability. 

(3) The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy 
    and Petroleum's (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by 
    reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects. 

(4) Cut-off grades were calculated using the following consensus metal price assumptions: gold price of $1,875
    (U.S.) per ounce, silver price of $24 (U.S.)/oz and copper price of $3.10 (U.S.) per pound. 

(5) Silver equivalent (AgEQ) ounces are notional, based on the combined value of metals expressed as silver 
    ounces. 

(6) Metal recovery based on operational results and column tests. 

(7) The silver equivalent was calculated using the following assumptions: 
   
    (a) For ET using the formula: AgEq is equal to one multiplied by Ag grade plus 65.1 multiplied by Au grade 
        plus 8.66 multiplied by Cu grade.

    (b) For San Gonzalo using the formula: AgEq is equal to one multiplied by Ag grade plus 72.54 multiplied by 
        Au grade.
 
    (c) For oxide tailings using the formula: AgEq is equal to one multiplied by Ag grade plus 84.55 multiplied
        by Au grade.
   
  

Avino president and chief executive officer David Wolfin commented: "We are thrilled to have successfully gone over and above replacing mining depletion since the previous report, by adding significant additional measured and indicated resources at the Avino property. The updated mineral resource estimate provides us with a robust long-term outlook. With several areas on the property that have yet to be explored, there is a strong in situ potential for further potential resource extension. Many thanks to our hard-working operation team in Mexico for their hard work over the years to more fully understand the extent of mineralization at Avino. The drills will be active again during the first quarter and the 2021 exploration program will continue to build on the success of our past operations."

The indicated mineral resource at Avino's Elena Tolosa (ET) deposit has been significantly increased. As of the date of the previous mineral resource estimate in 2018, the mineralization was estimated to consist of a 10-metre to 30-metre-wide footwall zone with a sporadic development of hangingwall stockwork.

Subsequently, the Avino vein has been fully exposed and sampled in underground development below elevations of 360 metres to 470 metres below surface, and it has been discovered to be consistently and continuously mineralized between the hangingwall and footwall veins over a thickness of up to 45 metres. This broad zone has been proven by underground development and channel sampling down to an elevation of 1,849 metres.

This mineralization was sampled and partially mined before the recent hiatus in operations, and it is included in the current mineral resource.

Detailed depletion models for the ET deposit and San Gonzalo have been applied, based on updated 3-D models of underground development and stoping excavations.

The western portion of the inferred oxide tailings resource has been reduced, due to:

  • Uncertainty of the bedrock topographic profiles under the tailings;
  • The increased depth of sulphide tailings that was placed above the western portion of the inferred oxide tailings resource.

The total measured and indicated mineral resource tonnage in all deposits totals 20.3 million metric tonnes containing 75.9 million troy ounces of silver equivalent, comprising 44.9 million troy ounces of silver, 436,000 troy ounces of gold and 83,000 metric tonnes of copper.

The total inferred mineral resource tonnage in all deposits totals 6.6 million metric tonnes, of 21.8 million troy ounces of silver equivalent comprising 12.5 million troy ounces of silver, 129,000 troy ounces of gold and 17,700 metric tonnes of copper.

The mineral resource estimates were prepared by Michael O'Brien, PGeo, PrSciNat, of Red Pennant Geoscience, who is a qualified person within the meaning of National Instrument 43-101 and independent of Avino, as defined by Section 1.5 of NI 43-101.

Oxide tailings

The oxide tailings resource has been re-estimated using the same model and data as the previous mineral resource update, however a more conservative approach has been utilized in extrapolating the inferred material.

Method of calculation

The definitive estimation methods used were substantially the same for all three deposits (ordinary kriging), providing a consistent baseline for strategic planning.

Mineral resources were estimated by ordinary kriging, optimized using kriging neighbourhood analysis and verified by means of nearest neighbour and inverse distance methods, swathplot comparisons of estimates and visual inspections. Block models were created for the San Gonzalo and Avino vein systems and the oxide tailings deposit and estimates were made utilizing blocks of sizes 20 m long by five m wide by 10 m high for Avino (ET Mine), sizes 10 m long by five m wide by 10 m high for San Gonzalo and 40 m long by 40 m wide by two m high for oxide tailings.

Fundamental changes since the previous mineral resource estimates are (1) depletion due to mining (over 800,000 tonnes milled since the beginning of 2018), (2) significant new sampling information, (3) changes to cut-off calculations and (4) reclassification of mineral resources in the light of improved confidence in the understanding of the deposits at distances from the underground channel samples and drill hole samples.

More sampling information does not always lead to direct increases in resource tonnages and contained metal. In some cases, the new information provides improved understanding (developed by variogram modelling and kriging neighborhood analysis) that may demote some portions of mineral resource from high confidence measured and indicated categories, to a lower confidence inferred category.

Currently, for the San Gonzalo and Avino vein systems, estimated blocks more than 35 metres from samples are not included in the indicated category resources and have been classified as inferred resources.

For the oxide tailings, estimated blocks more than 50 metres from samples are not included in the indicated category resources.

Qualified person(s)

Avino's projects in Durango, Mexico, are under the geoscientific oversight of Michael O'Brien, PGeo, senior principal consultant, Red Pennant Geoscience, and under the supervision of Peter Latta, PEng, Avino's vice-president, technical services, who are both qualified persons within the context of NI 43-101. Both have reviewed and approved the technical data in this news release.

About Avino Silver & Gold Mines Ltd.

Avino is primarily a silver producer with a diversified pipeline of silver, gold and base metal properties in Mexico. Avino produces from its wholly owned Avino mine near Durango, Mexico. The company's silver and gold production remains unhedged. The company's mission and strategy are to create shareholder value through its focus on profitable organic growth at the historic Avino property and the strategic acquisition of mineral exploration and mining properties. The company is committed to managing all business activities in a safe, environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which it operates.

We seek Safe Harbor.

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