SAN GONZALO BULK SAMPLING PROGRAM UPDATE
It is interesting to note during the advance of the decline, a small vein was intersected on February 4. Mineralization and rusty brown staining of the vein material were noted. This is encouraging and suggests that there could be other potential unknown parallel veins or structures that could be encountered while driving the ramp.
Construction of the mine surface facilities near the entrance to the decline is making good progress, the fuel storage tank with its containment is nearly complete and foundations for the mechanic shop and mine office have been poured with roof and cladding to be installed.
At the process plant, the issues with the power company (CFE) have been resolved and commissioning of the new jaw crusher has been completed with no major mechanical or electrical deficiencies. The 41/4ft Symons cone crusher with all new bushings and socket liner is slated for testing this week together with the 8x6 ball mill.
Laboratory supplies are currently being purchased in preparation for putting the mine laboratory facilities back into service with the hiring of the assayer. The new AA machine is now on site and commissioning, training and testing is scheduled to begin once a suitable date with the supplier can be arranged.
Metallurgical testing of stockpile material has been completed by SGS Labs in Durango. The results show a reasonable copper concentrate of about 18% copper can be generated with approximate recoveries of 78%, 72% and 60% for copper, silver and gold respectively.
Discussions are underway with potential buyers of this copper concentrate product together with the product expected from the San Gonzalo bulk sample. Economics can then be updated to confirm those used previously.
According to the mine records, there are approximately 30,000 tons of older stockpile materials grading 0.41% Cu, 90g Ag/t and 1.1g Au/t that are available for tuning up the refurbished 250tpd plant circuit.
Founded in 1968, Avino has established a long record of mining and exploration in Mexico. The Company's focus is to bring the property to production. Avino remains well funded.
ON BEHALF OF THE BOARD
"David Wolfin"
______________________________
David Wolfin
President
San Gonzalo -- Bulk Sampling Update
Testing all the processing equipment on a dry run basis will commence shortly to test all electrical and mechanical equipment for deficiencies and assess and correct as necessary the mills operation prior to testing with actual feed. The plan is to process stockpiled ore from past years for commissioning. Flotation tests on sample material is currently taking place at lab facilities of SGS in Durango; results are pending.
DMG, the mining contractor, has made good progress to date on the ramp and decline to intersect the San Gonzalo vein. As of January 25th, an advance of 58 meters from the portal entrance has been completed with approximately 204 meters to go. At the current rate we expect to reach our target by approximately the end of March.
Construction of the mine office, mechanical shop, the fuel storage and the related containment structure near the entrance to the decline were started last month and should be completed within the next two weeks.
Key personnel hired since our last news release includes a Mining Engineer whose responsibility will be to monitor the ongoing development of the mine and the Mining Contractor. We expect to have a Plant Manager and assayer within the next two months.
ON BEHALF OF THE BOARD
"David Wolfin"
______________________________
David Wolfin
President
Grant of Stock Options
The options are subject to a stock option plan.
ON BEHALF OF THE BOARD
"David Wolfin"
______________________________
David Wolfin
President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
Avino Prepares for 10,000 Tonne Bulk Sample
Mobilization of equipment has been initiated with the arrival of a diesel generator, scoop tram and 2 air compressors. Explosives have been ordered and will be arriving on site later this week.
The mining contract will include collaring of the portal, driving about 1,000 meters of development consisting of a decline, crosscuts and raises and the extraction of 10,000 tonnes of mineralized vein material. It is expected this contract will be extended with mining operations to continue in the event the bulk sampling program results in positive cash flow.
Discussions with the power authority (CFE) to have the required power for the 250 tpd operation reinstated have been positive. The required electrical repairs to meet the Mexican standards and code as recommended by CFE is close to completion. The reassembly of the cone crusher is the major outstanding item in the completion of the 250tpd circuit.
Key personnel are being sourced and recruited as the project advances from exploration to development of mining and milling operations.
ON BEHALF OF THE BOARD
"David Wolfin"
______________________________
David Wolfin
President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
Avino Reports On Progress Towards Bulk Sampling And Production
A major portion of the work and investment in 2009 centered on modernizing the existing mine and equipment. David Wolfin, president emphasized the steps required to make the facility production-ready. "From rebuilding crushers and ball mills to re-fitting the plant, we are committed to making this facility modern and efficient. We are looking well beyond the bulk sampling phase and preparing for many years of production."
The Avino mine operated continuously from 1974 to 2001, when low silver prices and the closure of a key smelter forced it to suspend operations. The eight-year shutdown meant practically every aspect of the facility had to be upgraded or replaced. "We've been fortunate to have a resourceful crew managing the project," Wolfin stated. "They have saved us a great deal of money and time by sourcing local parts and supplies and, when necessary, machining their own parts on site. While the scope of the work has been extensive, the total remaining cost of the upgrade has been projected at just over $1.5 million."
Wolfin also stated that a crucial element for the upcoming bulk sampling and production is now in place. "We have had positive discussions with a Mexican smelter to take all of our concentrate," said Wolfin. "This is something we have been working on for some time. We continue to source alternative buyers."
Avino's Project Engineer Jasman Yee, who is overseeing the project, outlined the following key milestones achieved at the mine in 2009:
- Secured all permits to operate the San Gonzalo deposit and the processing plant at the rate of 250 tons per day. These permits are valid for running the 10,000 ton bulk sample as well as full production. In addition, Avino has kept these permits in good standing with regular submissions to the regulatory authorities to maintain compliance.
- Held discussions with power supplier CFE with regards to increasing the supply of power to the plant. This step was necessary to operate the 250tpd circuit on a sustained basis and resulted in and electrical system upgrade.
- Finalizing selection of the mining contractor for development work and extraction of the 10,000-ton bulk sample. Objective is to have the collaring of the decline started in November of this year.
- Water supply system from the tailings pond completed and fully functional.
- Repairs to the assay lab completed. A new AAS unit was purchased to provide on-site control assays.
- The 250 tpd mill circuit is almost complete with all major pieces in place. Outstanding work includes the purchase of several pumps in the filter area and installation of the all the slurry, water and air pipelines.
- Crushing plant is being upgraded with major repairs to the cone crusher, vibrating screen and the conveyors.
ON BEHALF OF THE BOARD
"David Wolfin"
______________________________
David Wolfin
President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release contains statements that are forward-looking statements and are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.