Following several years of redevelopment, in Q4 2014 the Company completed its Avino Mine and mill expansion. On January 1, 2015, full scale operations commenced and commercial production was declared effective April 1, 2016 following a 19 month advancement and test period. Operations are ongoing, comparative figures are presented below:
|Feed Grade Silver (g/t)||65||68|
|Feed Grade Gold (g/t)||0.29||0.33|
|Feed Grade Copper (%)||0.62||0.53|
|Recovery Silver (%)||87%||85%|
|Recovery Gold (%)||75%||61%|
|Recovery Copper (%)||87%||89%|
|Total Silver Produced (oz)||717,901||609,836|
|Total Gold Produced (oz)||2,757||2,152|
|Total Copper Produced (Lbs)||4,743,691||3,450,940|
|Total Silver Equivalent¹ Produced (oz)||1,801,997||1,226,105|
|All in Sustaining Cash Cost² per oz Ag Eq.($CAD)||N/A||$14.78|
|All in Sustaining Cash Cost² per oz Ag Eq.($USD)||N/A||$11.18|
1Metal Production is expressed in terms of silver equivalent ounces, (oz Ag Eq.), the formula for which depends on the gold and silver metal prices used in each year and hence are only indicative.
Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company's discovery of the San Gonzalo resource, and in the Company's record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012. This approach is being applied for the advancement of the Avino Mine project, for which similar risks and uncertainties have been identified.
Samsung Term Facility
In July 2015, Avino entered into a term facility to sell Avino Mine concentrates exclusively to Samsung C&T U.K. Limited. Concentrate sales to Samsung began in August 2015 and will continue under the agreement until July 2018, at which time the agreement will be re-evaluated. In return, Samsung made a payment of US$10,000,000 for purchase of new equipment and other mine improvements.Qualified Person(s)
Avino's projects are under the supervision of Chris Sampson, P.Eng, BSc, ARSM Avino Consultant and Mr. Jasman Yee P.Eng, Avino director, who are both qualified persons within the context of National Instrument 43-101. Both have reviewed and approved the technical data herein.