Avino Announces Q2 2019 Production Results
July 17, 2019
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American, GV6: FSE, “Avino” or “the Company”) is pleased to announce its second quarter 2019 production results from its Avino property near Durango, Mexico.
Consolidated Production Highlights for Q2, 2019 (Compared to Q2, 2018)
- Silver equivalent production decreased by 19% to 599,593 oz*
- Gold production decreased by 7% to 1,609 oz
- Silver production decreased by 24% to 246,129 oz
- Copper production decreased by 21% to 1,136,113 lbs
*In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. In Q2, 2018, AgEq was calculated using metals prices of $16.53 oz Ag, $1,307 oz Au and $3.12 lb Cu. Calculated figures may not add up due to rounding.
The silver equivalent production in Q2, 2019 decreased by 19% compared to Q2, 2018. The decrease was due to the following reasons:
- Unplanned downtime of 5 days due to labour negotiations with respect to the closure of the San Gonzalo Mine.
- Expected decline in feed grade at San Gonzalo as the mine approaches the end of its current economic life.
- Change of product feed mix to maximize profitable production ounces.
Due to the upcoming closure of the San Gonzalo mine, Avino had previously announced that there would be a transition of some workers from San Gonzalo to the San Luis area of the Avino Mine. The depleting mine material and grades at San Gonzalo have occurred at a time where silver prices remain low, which in turn affects the entire Company and its contractors.
“We have been committed to Avino for over 50 years and treat our workers fairly and in accordance with Mexican labour laws. The Company had to make some difficult decisions with respect to our underground labour force given the upcoming closure at San Gonzalo. The Company remains committed to maintaining a dialogue in good-faith with the unionized workers and we are pleased that agreements were reached, and that no further interruptions have occurred. In addition, we are continuing our focus on cost reduction measures to reduce corporate overhead, as well as a focus on optimizing our internal mine plan to maximize profitability. We are still on track to meet our internal production guidance for 2019 and are proud of our dedicated and loyal workforce who are integral to the ongoing success of the Company.”
– David Wolfin, President & CEO, Avino Silver & Gold Mines Ltd.
Consolidated Production Tables
| Q2 2019 | |||||
| Production by Mine | Tonnes Processed | Silver Oz |
Gold Oz |
Copper Lbs |
AgEq |
| Avino | 96,707 | 104,893 | 800 | 1,003,995 | 362,445 |
| San Gonzalo | 17,570 | 47,387 | 164 | – | 61,905 |
| Historic Above Ground Stockpiles | 86,596 | 93,849 | 645 | 132,118 | 175,143 |
| Consolidated | 200,873 | 246,129 | 1,609 | 1,136,113 | 599,493 |
| YTD 2019 | |||||
| Production by Mine | Tonnes Processed | Silver Oz |
Gold Oz |
Copper Lbs |
AgEq |
| Avino | 197,629 | 217,207 | 1,897 | 1,962,066 | 742,243 |
| San Gonzalo | 35,471 | 118,146 | 351 | – | 148,311 |
| Historic Above Ground Stockpiles | 165,460 | 179,174 | 1,174 | 236,750 | 323,958 |
| Consolidated | 398,560 | 514,527 | 3,422 | 2,198,816 | 1,214,512 |
| Q2 2019 | ||||||
| Grade & Recovery by Mine | Grade Ag g/t |
Grade Au g/t |
Grade Cu % |
Recovery Ag % |
Recovery Au % |
Recovery Cu % |
| Avino | 41 | 0.38 | 0.56 | 81% | 69% | 84% |
| San Gonzalo | 122 | 0.46 | – | 69% | 63% | – |
| Historic Above Ground Stockpiles | 61 | 0.44 | 0.17 | 55% | 52% | 40% |
| Consolidated | 57 | 0.41 | 0.38 | 69% | 61% | 63% |
| YTD 2019 | ||||||
| Grade & Recovery by Mine | Grade Ag g/t |
Grade Au g/t |
Grade Cu % |
Recovery Ag % |
Recovery Au % |
Recovery Cu % |
| Avino | 41 | 0.43 | 0.52 | 83% | 70% | 86% |
| San Gonzalo | 155 | 0.49 | – | 67% | 62% | – |
| Historic Above Ground Stockpiles | 61 | 0.42 | 0.19 | 55% | 52% | 35% |
| Consolidated | 60 | 0.43 | 0.37 | 70% | 62% | 63% |
Avino Mine Production Highlights
| Q2 2019 |
Q2 2018 |
Quarterly Change |
YTD 2019 |
|
| Total Mill Feed (dry tonnes) | 96,707 | 119,839 | -19% | 197,629 |
| Feed Grade Silver (g/t) | 41 | 53 | -23% | 41 |
| Feed Grade Gold (g/t) | 0.38 | 0.36 | 6% | 0.43 |
| Feed Grade Copper (%) | 0.56 | 0.61 | -8% | 0.52 |
| Recovery Silver (%) | 81% | 86% | -5% | 83% |
| Recovery Gold (%) | 69% | 73% | -6% | 70% |
| Recovery Copper (%) | 84% | 90% | -6% | 86% |
| Total Silver Produced (oz) | 104,893 | 177,101 | -41% | 217,207 |
| Total Gold Produced (oz) | 800 | 1,020 | -22% | 1,897 |
| Total Copper Produced (Lbs) | 1,003,995 | 1,441,012 | -30% | 1,962,066 |
| Total Silver Equivalent Produced (oz)* | 362,445 | 529,247 | -32% | 742,243 |
*In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. In Q2, 2018, AgEq was calculated using metals prices of $16.53 oz Ag, $1,307 oz Au and $3.12 lb Cu. Calculated figures may not add up due to rounding.
Gold grades increased by 6%, compared to Q2, 2018, and silver and copper grades decreased 23% and 8% respectively. The change in grades is due to variability in the deposit.
San Gonzalo Production Highlights
| Q2 2019 |
Q2 2018 |
Quarterly Change |
YTD 2019 |
|
| Total Mill Feed (dry tonnes) | 17,570 | 19,824 | -11% | 35,471 |
| Feed Grade Silver (g/t) | 122 | 224 | -45% | 155 |
| Feed Grade Gold (g/t) | 0.46 | 1.01 | -54% | 0.49 |
| Recovery Silver (%) | 69% | 74% | -8% | 67% |
| Recovery Gold (%) | 63% | 73% | -14% | 62% |
| Total Silver Produced (oz) | 47,387 | 105,970 | -55% | 118,146 |
| Total Gold Produced (oz) | 164 | 471 | -65% | 351 |
| Total Silver Equivalent Produced (oz)* | 61,905 | 143,124 | -57% | 148,311 |
*In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. In Q2, 2018, AgEq was calculated using metals prices of $16.53 oz Ag, $1,307 oz Au and $3.12 lb Cu. Calculated figures may not add up due to rounding.
At San Gonzalo, the mine is approaching its end of life and the grades, recoveries and production have started to tail off. This is in line with our internal expectations.
Historic Above Ground Stockpiles Production Highlights
| Q2 2019 |
YTD 2019 |
|
| Total Mill Feed (dry tonnes) | 86,596 | 165,460 |
| Feed Grade Silver (g/t) | 61 | 61 |
| Feed Grade Gold (g/t) | 0.44 | 0.42 |
| Feed Grade Copper (%) | 0.17 | 0.19 |
| Recovery Silver (%) | 55% | 55% |
| Recovery Gold (%) | 52% | 52% |
| Recovery Copper (%) | 40% | 35% |
| Total Silver Produced (oz) | 93,849 | 179,174 |
| Total Gold Produced (oz) | 645 | 1,174 |
| Total Copper Produced (Lbs) | 132,118 | 236,750 |
| Total Silver Equivalent Produced (oz) calculated* | 175,143 | 323,958 |
*In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. In Q2, 2018, AgEq was calculated using metals prices of $16.53 oz Ag, $1,307 oz Au and $3.12 lb Cu. Calculated figures may not add up due to rounding.
Although recovery numbers look less favorable; due to the negligible cost of mining, the profit margin on this material is quite positive. We will continue to evaluate our feed and product mix to maximize profitability during the current metal price environment.
Quality Assurance/Quality Control
Mill assays are performed at the Avino property’s on-site lab. Check samples are sent to SGS Labs in Durango, Mexico for verification. All concentrate shipments are assayed by one of the following independent third party labs: AHK, and Inspectorate in the UK and LSI in the Netherlands.
Qualified Person(s)
Peter Latta, P.Eng, MBA, Senior Technical Advisor, Avino and Jasman Yee P.Eng, Avino director, both of whom are qualified persons within the context of National Instrument 43-101 have reviewed and approved the technical data in 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 close to 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. Avino is 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 & Chief Executive Officer
IBF4
