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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. (ASM: TSX/NYSE American, GV6: FSE, “Avino” or “the Company”) is pleased to announce an updated mineral resource estimate for the Company’s Avino Property located near Durango in west-central Mexico (the “Property”). 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 (“NI-43-101”), which will be available on SEDAR (www.sedar.com) under the Company’s profile and filed on Form 6-K with the SEC within 45 days.

Highlights (compared to February 21, 2018)

Measured and Indicated Mineral Resources:

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

Inferred Mineral Resources:

  • Decrease of 6% in silver equivalent ounces, down to 21.8 million ounces
Avino Mine
Mineral Resources Summary
as at October 31, 2020
Measured & Indicated Mineral Resources Grade Metal Contents
Resource Category Deposit Cut-off
(AgEQ
g/t)
Metric
Tonnes
AgEQ
(g/t)
Ag
(g/t)
Au
(g/t)
Cu
(%)
AgEQ
(million
tr oz)
Ag
(million
tr oz)
Au
(thousand
tr oz)
Cu
Tonnes
Measured Avino – ET 60 4,760,000 120 74 0.63 0.55 18.4 11.3 97 26,300
Measured San
Gonzalo
System
130 267,000 356 263 1.36 0.00 3.1 2.3 12 0
Total
Measured
All Deposits 5,027,000 133 84 0.67 0.52 21.5 13.6 109 26,300
Indicated Avino – ET 60 13,890,000 107 59 0.68 0.41 47.9 26.5 304 56,700
Indicated San Gonzalo System 130 216,000 304 230 1.09 0.00 2.1 1.6 8 0
Indicated Oxide
Tailings
50 1,120,000 124 89 0.42 0.00 4.5 3.2 15 0
Total
Indicated
All
Deposits
15,226,000 111 64 0.67 0.37 54.5 31.3 327 56,700
Total
Measured &
Indicated
All
Deposits
20,253,000 117 69 0.67 0.41 75.9 44.9 436 83,000
Inferred Mineral Resources Grade Metal Contents
Resource
Category
Deposit Cut-off
(AgEQ g/t)
Metric Tonnes AgEQ
(g/t)
Ag
(g/t)
Au
(g/t)
Cu
(%)
AgEQ
(million
tr oz)
Ag
(million
tr oz)
Au
(thousand
tr oz)
Cu
Tonnes
Inferred Avino – ET 60 5,230,000 95 51 0.64 0.34 16.0 8.5 108 17,700
Inferred San
Gonzalo
System
130 85,000 298 233 0.96 0.00 0.8 0.6 3 0
Inferred Oxide
Tailings
50 1,230,000 125 85 0.47 0.00 5.0 3.4 19 0
Total Inferred All
Deposits
6,545,000 103 59 0.61 0.27 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 US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb.
  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:
    1. For ET using the formula: AgEQ = 1 x Ag grade + 65.1 x Au grade + 8.66 x Cu grade
    2. For San Gonzalo using the formula: AgEQ = 1 x Ag grade + 72.54 x Au grade
    3. For Oxide Tailings using the formula: AgEQ = 1 x Ag grade + 84.55 x Au grade

Avino President and CEO, 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 hanging wall 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 mineralised between the hanging wall 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 3D 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 and
  • 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, comprised of 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 comprised of 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 P.Geo., Pr.Sci.Nat., of Red Pennant Geoscience who is a “Qualified Person” within the meaning of NI 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 x 5 m wide x 10 m high for Avino (ET Mine), sizes 10 m long x 5 m wide x 10 m high for San Gonzalo and 40 m long x 40 m wide x 2 m high for Oxide Tailings.

Fundamental changes since the previous mineral resource estimates are (1) depletion due to mining (over 800 thousand 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 thirty-five 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 fifty 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, P.Geo., Senior Principal Consultant, Red Pennant Geoscience, and under the supervision of Peter Latta, P.Eng, Avino’s VP, 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

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 is 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. We are 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 we operate.

On Behalf of the Board

“David Wolfin”
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines Ltd.

IBF4

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