Mr. David Wolfin reports
AVINO ANNOUNCES Q2 2018 PRODUCTION RESULTS
Avino Silver & Gold Mines Ltd. has released its second quarter 2018 production results from its Avino property near Durango, Mexico.
Silver equivalent production in the second quarter of 2018 increased by 6 per cent compared with the second quarter of 2017 due to extra production from the commissioning of mill circuit 4. Copper production in the second quarter of 2018 increased by 31 per cent compared with the second quarter of 2017, and silver and gold production decreased by 16 per cent and 11 per cent, respectively; the latter are due to lower silver and gold feed grades from the Avino and San Gonzalo mines.
Consolidated production highlights for the second quarter of 2018 (compared with the second quarter of 2017):
Silver equivalent production increased by 6 per cent to 738,853 ounces (1); Gold production decreased by 11 per cent to 1,734 ounces; Silver production decreased by 16 per cent to 323,014 ounces; Copper production increased by 31 per cent to 1,480,830 pounds.
(1) For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $16.53per ounceAg, $1,307 per ounce Au and $3.12 per pound Cu.Mill production figures have not been reconciled and are subject to adjustment with concentrate sales.Calculated figures may not add up due to rounding.
"We are pleased with our second quarter production results, our silver equivalent production increased by 6 per cent, because our copper production increased by 31 per cent," said David Wolfin, president and chief executive officer. "We will continue to process historic stockpile material through mill circuit 4 until the end of the year, and then we anticipate transitioning to processing newly mined mill feed from the San Luis area of the Avino mine."
Production tables for the second quarter of 2018
Comparative production results from the second quarter of 2018 and the second quarter of 2017 are presented in the associated table.
Q2 2018 Q2 2017Total silver eq. produced (oz) calculated*738,853 698,174Total gold produced (oz) calculated 1,734 1,954Total silver produced (oz) calculated 323,014 386,002Total copper produced (lb) calculated 1,480,830 1,133,161 PRODUCTION TABLE FOR SECOND QUARTER 2018 Conc.Recovery Recovery RecoveryProduction Tonnes tonnesGrade Ag Grade Au Grade CuAg Au CuSilverGoldCopperAgEqby mine processed produced (g/t)(g/t)(%) (%)(%)(%)(oz)(oz)(lb)Avino 118,8392,74353 0.36 0.6186 73 90 177,101 1,020 1,441,012 529,247San Gonzalo19,824679 224 1.01N/A74 73n/a 105,970 471 n/a 143,124Historicabovegroundstockpiles 45,06336347 0.30 0.1458 86 2839,943 24339,81866,482Consolidated184,7263,78570 0.42 0.4581 75 90 323,014 1,734 1,480,830 738,853* For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $16.53 per ounce Ag, $1,307 per ounce Au and $3.12 per pound Cu.Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.
Avino mine second quarter 2018 production results
Comparative figures for the second quarter of 2018 and the second quarter of 2017 for the Avino mine are shown in the associated table; production figures for the second quarter of 2018 include production from mill circuit 2 and mill circuit 3.
Q2 2018Q2 2017Total mill feed (dry tonnes)119,839117,386Feed grade silver (g/t)53 76Feed grade gold (g/t)0.36 0.53Feed grade copper (%)0.61 0.49Recovery silver (%) 86%84%Recovery gold (%) 73%69%Recovery copper (%) 90%89%Total silver produced (kg)5,5087,517Total gold produced (g)31,741 43,037Total copper produced (kg)653,633513,994Total silver equivalent produced (oz) calculated* 529,247512,237* For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $16.53 per ounce Ag, $1,307 per ounce Au and $3.12 per pound Cu. Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.
At the Avino mine, underground advancement totalled 844 metres and 102,512 tonnes of material were broken. Haulage of mill feed totalled 123,478 tonnes.
Mining took place at levels 16 and 16.5 where the copper grades were higher and the silver and gold grades were lower due to variability in the mineralization within the deposit.
San Gonzalo mine second quarter 2018 production highlights
Comparative figures for the second quarter of 2018 and the second quarter of 2017 for the San Gonzalo mine are shown in the associated table.
Q2 2018Q2 2017Total mill feed (dry tonnes) 19,824 20,107Feed grade silver (g/t) 224277Feed grade gold (g/t)1.01 1.19Recovery silver (%) 74%81%Recovery gold (%) 73%74%Total silver produced (kg)3,2964,489Total gold produced (g)14,642 17,724Total silver equivalent produced (oz) calculated* 143,124185,937* For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $16.53 per ounce Ag, $1,307 per ounce Au and $3.12 per pounc Cu. Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.
The silver grade at San Gonzalo for the second quarter of 2018 decreased by 19 per cent, and the gold grade decreased by 15 per cent compared with the second quarter of 2017, due to lower grades of the areas being mined during the quarter. Mill feed came from levels 3-020, 4-020, 5-010, 6-020 and 6.5-100. Silver and gold recoveries were also lower because of a change in mineralization within the material from stope 020 at different levels. The additional recoveries of silver and gold from the zinc circuit did not result in additional overall improvement. Samples of these materials have been sent for mineralogy testwork.
Tonnage broken for the quarter was 14,178 tonnes and underground development totalled 777 metres. Plant availability for the second quarter 2018 was 95 per cent, and there were no shutdowns other than normal scheduled maintenance.
Mill circuit 4 -- historic aboveground stockpiles
Following the installation of the milling, flotation and thickening components, mill circuit 4's 1,000-tonne-per-day ball mill turned over in February, 2018, for its initial test. The charged ball mill start-up went very well with only minor issues with the lube system which were resolved quickly. Commissioning of the complete circuit resumed in May, 2018, with the introduction of mill feed, followed by testing of the classification, flotation, thickening and filtering components.
During the start-up, testing and commissioning phase, which is expected to last through the end of 2018, feed to mill circuit 4 will come from historic aboveground Avino mine stockpiles. Once development is complete, mill circuit 4 will transition to processing newly mined mill feed from the San Luis area of the Avino mine.
Output from mill circuit 4 during the second quarter of 2018 is shown in the associated table.
Q2 2018Total mill feed (dry tonnes)45,063Feed grade silver (g/t) 47Feed grade gold (g/t) 0.30Recovery silver (%)58%Recovery gold (%)56%Total silver produced (kg) 1,242Total gold produced (g)7,588Total silver equivalent produced (oz) calculated* 66,482* For comparison purposes, the silver equivalent ratio has been calculated using metal prices of $16.53 per ounce Ag,$1,307 per ounce Au and $3.12 per pound Cu. Mill production figures have not been reconciled and are subject to adjustment with concentrate sales. Calculated figures may not add up due to rounding.
Avino mine expansion (San Luis area)
The San Luis area of the Avino vein is accessed through a separate portal located approximately two km from the main entrance of the Avino mine (Elena Tolosa area). Current resources at San Luis were included in the most recent resource estimate on the Avino property, which can be found in Avino's news release dated Feb. 21, 2018, on Avino's website and under the company's profile on the SEDAR system. The news release was also filed with the Securities and Exchange Commission on Form 6-K.
Work at San Luis is currently focused on restoration of the main haulage ramp, which was near completion at the end of the second quarter 2018. When the haulage ramp is complete, plans are to begin development and drifting on levels 6 and 6.5, followed by levels 7, 7.5, 8, 8.5 and 9. Most of these areas were partially developed during the 1980s and 1990s prior to the mine's closure.
Zinc circuit
The company continued its testing program for recovery of precious metals and zinc from the San Gonzalo tailings. In the second quarter of 2018, the company produced 199 dry tonnes of low-grade zinc concentrate with content of 1,094 g/t silver, 6.31 g/t gold and 7.65 per cent zinc, for an additional 13,032 AgEq ounces. As this product has been marketed and sold, the testing program will continue.
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 United Kingdom and LSI in the Netherlands.
Qualified person(s)
Avino's Mexican projects are under the supervision of Jasman Yee, PEng, Avino director, who is a qualified person within the context of National Instrument 43-101. He has reviewed and approved the technical data in this news release.
About Avino Silver & Gold Mines Ltd.
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and Canada employing approximately 600 people. Avino produces from its wholly owned Avino and San Gonzalo mines near Durango, Mexico, and is currently evaluating the potential economics of possible future production at the Bralorne gold mine in British Columbia, Canada. The company's gold and silver production remains unhedged.
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