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Overview
The Avino mine was once described by Spaniards as "a mountain of silver." The mine first opened in the 1500s and reportedly supplied considerable wealth to Spain for hundreds of years. It has operated intermittently ever since, including for 27 years under Avino Silver & Gold Mines beginning in 1974. During the three decades that the mine was in production under Avino, silver grades averaged from 3 to 7 ounces per ton with more than 16 Moz of silver, 96,000 oz of gold and 24Mlb of copper produced through both open pit and underground mining. The mine shut down in 2001 due to low silver prices and closure of a key smelter. As metals prices are once again favorable, Avino is working to re-open the mine through exploration and development of high potential zones close in proximity to its 1250 tpd mill.
San Gonzalo zone
The San Gonzalo zone is located 2 km from the original Avino mine and beneath the shallow workings of an old mine from the colonial period. In 2007-08 Avino conducted a 42-hole, 9,204 meter drill program that produced very encouraging results, including 3908 g/t silver and 13.71 g/t gold over 1.45m. In late 2008, Orequest Consultants completed an NI 43-101 resource calculation for San Gonzalo, and estimated the zone contained 4.75 million ounces of silver and 37,300 ounces of gold.
The Inferred resource was calculated as follows:
|
|
Ag |
Au |
Zinc |
Lead |
| Tonnes |
g/t |
g/t |
% |
% |
| 444,250 |
332 |
2.61 |
1.5 |
1.0 |
Based on the results, Avino is proceeding with a 10,000-tonne bulk sample of San Gonzalo ore. The bulk sample will allow us to assess the economics of the zone and confirm mineral grades obtained through diamond drilling.
With all necessary permits in place, Avino has engaged the mining contractor DMG for development work and extraction of the bulk sample. DMG began driving a decline to access the vein in December 2009.
Avino Vein and the Elena Tolosa Zone
The Avino vein served as Avino's primary source of ore during the 27 years of production. The vein is 1.6km long and 60M wide on the surface and has yet to be mined at depth. To date, the deepest level mined was at the 2,070m level (330m below surface). Currently, the company is exploring an area of the Avino Vein called the Elena Tolosa or ET zone that has a target potential of 2Mt with grades historically averaging over 100 g/t silver.
The Mill
Since operations were halted in 2001, the plant has remained in a state of temporary closure. Prior to 2001, the mill was configured to operate at 1000 tonnes per day. To accommodate ore from the high-grade San Gonzalo zone, a new 250 tonne per day circuit has been added along with extensive upgrading and rehabilitation of the mill. We are presently testing the processing circuit with stockpiled material from earlier operations to prepare the mill for material from the San Gonzalo zone. Avino is committed to making the facility modern and efficient, as our vision extends well beyond the bulk sampling phase towards many years of production.
Tailings Resource
We continue to explore options for exploiting the mine's large tailings resource. This asset includes both oxide and sulphide tailings, with each requiring separate treatment methods. In a 2006 study, Wardrop Engineering concluded the oxide tailings held a silver and gold resource with an implied value of US43.7 million and estimated net revenue of $31.4 million. These values were calculated using a silver price of US$8.00 per ounce for silver and $500 per ounce for gold, so today's values will likely be higher. However, our priority at this time is to take a more long-term perspective by first expanding reserves and re-opening the mine.
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