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Avino Silver & Gold Mines Ltd
Symbol ASM
Shares Issued 89,638,682
Close 2021-02-12 C$ 1.78
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Avino starts 12,000 m drill program at Avino

2021-02-16 06:51 ET - News Release

Mr. David Wolfin reports

AVINO KICKS OFF 2021 DRILL PROGRAM. A BUSY YEAR AHEAD

Avino Silver & Gold Mines Ltd. has commenced its 2021 drill program and has provided details on a number of important programs that are planned for the year ahead.

"We are excited to commence the 2021 drill campaign at the Avino property with a 12,000-metre program. After a period of compiling data, we are now ready to drill the first phase of promising targets that we believe will help us expand the mineralized footprint at Avino," said David Wolfin, president and chief executive officer. "Our current priorities are to focus on confirming continuity of mineralized trends in veins on the property, and test areas with known historic high grade zones that could add to Avino's future production profile."

2021 drill program

The Avino property comprises 1,104 hectares (2,728 acres) with significant underexplored areas remaining. The two-fold objectives of the drill program are to locate new mineralized zones within the property and to confirm continuity of mineralization in the current Avino ET production area.

Phase 1 of the drill program will be focused on the El Trompo vein, the Santiago vein, the Avino ET area (below level 17) and Avino West (below levels 9 and 17).

Proposed drilling:

  • El Trompo vein -- 2,000 metres;
  • Santiago vein -- 3,000 metres;
  • Avino ET area (below level 17) -- 2,500 metres;
  • Avino West (below levels 9 and 17) -- 4,500 metres.

The El Trompo

The El Trompo vein is a priority target as it is an offshoot of the Avino vein, which has been one of the feeder veins for the company's milling complex. Historical data indicate there are high-grade areas within the vein over considerable widths, and there is underground infrastructure adjacent to the vein, which would allow easy access for mining. The structure has already been exposed and developed on the upper levels in the ET area of the Avino vein. Drilling on this vein will be from surface in order to confirm continuity of the mineralization at depth.

Avino vein -- ET area (below level 17) and Avino West (below levels 9 and 17)

The Avino vein is open on strike to the west as well as at depth, and the planned drilling is designed to follow the continuity of mineralization in both directions.

Furthermore, production data from previous mine development show that the copper grade increases at depth.

Avino has not tested the area to the west of the current mining area, as it sits below the active tailing dam and mining would be prohibitive. However, once the dry stack tailing project is operational, the current tailings storage facility would be decommissioned, allowing for mining in this new area in the near to medium term.

Santiago vein

The Santiago vein sits in the Avino mining district and intersects the San Gonzalo vein in an area of narrow veins that average one to two metres in width with mineralization that appears consistent with the high-grade San Gonzalo silver-gold mineralization. The San Gonzalo mine previously produced six million ounces of silver equivalent until closing in 2019. The company will be testing the continuity of the Santiago vein as the current thinking suggests a displacement due to the San Gonzalo fault. This target will be drilled from surface. Because of the close proximity to San Gonzalo underground infrastructure, mining access would be relatively easy assuming significant resources are found.

The company owns two drills that have been refurbished over the past two months and are now mobilized to begin drilling. The benefit of owning its own drills is that the company can drill at a lower cost compared with hiring outside contractors. Such savings provide for a larger drill program.

COVID-19 protocols

The company continues to implement its COVID-19 safety protocol plan at site to ensure the safety of employees and the communities surrounding the Avino mine property. The company's drill program is utilizing employees who live locally and require minimal travel to and from the mine site.

Avino mine -- a busy year ahead

Exploration budget

During the year, the company plans to allocate significant resources toward a multiphased drilling program, with approximately 12,000 metres planned in phase 1 of drilling at the Avino property. Phase 1 will target several areas of the Avino property including the Avino vein, the Santiago vein and the El Trompo vein. Future exploration targets may not be limited to these three areas, and during the year the company's priority targets may change if geological interpretations on other areas present enhanced opportunity. The company is currently working on increasing the exploration program with details to be released once an increase in budget is approved.

In addition to the exploration budget, Avino has allocated capital for the following areas.

Dry stack tailings

The dry stack tailings project is well under way for its permitted tailings storage facility, which the company refers to as TSF No. 2. The company expects this project to be completed during the third quarter of 2021 and it will add an additional eight to 10 years of tailings capacity based on the current mill throughput rate. The company chose dry stack tailings for its environmental, safety and economic advantages with the high solids content. This significantly improves safety and stability and reduces the need to extract water from local sources by recycling the water removed from tailings. In addition it requires less land, which in turn results in a smaller environmental footprint.

Circuit 4 improvements

Avino made various metallurgical improvements in circuit 3 during 2019, which significantly improved gold and silver recovery through the use of a new piece of equipment. The company will look to make the same improvements in circuit 4 in 2021. The required equipment has been delivered to site, and the company aims to have it operational during Q2 2021. In addition, a comprehensive automation package to modernize data collection and analysis is also planned and will be rolled out in phases with the first phase consisting of adding hardware to various areas in the mill.

Capital expenditures

It is expected that capital expenditures for 2021 will be between $6-million (U.S.) and $8-million (U.S.), with additional capital to be allocated based on the success of phase 1 of the drilling program.

Avino's longevity demonstrates a commitment to maintaining its mission, vision and values. As it enters its 53rd year, the company remains diligent in its efforts across its operations with respect to COVID-19 and is working together to keep its employees and communities healthy. The company looks forward to a positive and productive 2021 together with the potential of continued strengthening of the market and of commodity prices.

Additional information

Avino expects to release the 2020 year-end financial results in late February, 2021, and will hold a conference call to discuss the results. Details of the call, including times and contact numbers, will be announced closer to the release date.

Qualified person(s)

Peter Latta, PEng, MBA, vice-president, technical services, who is a qualified person within the context of National Instrument 43-101, has 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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