|Location||Yukon Territory, Canada|
|Minerals||Silver, Gold, Indium|
Eagle Property Option Agreement
An option agreement dated July 18, 2017 between Avino and Alexco Resource Corp. ("Alexco") has granted Alexco the right to acquire a 65% interest in 14 quartz mining leases located in the Mayo District, Yukon Territory, Canada, known as the "Eagle Property". To exercise the option, Alexco must pay Avino a total of $70,000 in instalments over 4 years, issue Avino a total of 70,000 Alexco common shares in instalments over 4 years, incur $550,000 in exploration work by the second anniversary of the option agreement date, and a further $2.2 million in exploration work on the Eagle Property by the fourth anniversary of the option agreement date.
In the event that Alexco earns its 65% interest in the Eagle Property, Alexco and Avino will form a joint venture for the future exploration and development of the Eagle Property, and may contribute towards expenditures in proportion to their interests (65% Alexco / 35% Avino). If either company elects to not contribute its share of costs, then its interest will be diluted. If either company's joint venture interest is diluted to less than 10%, its interest will convert to a 5.0% net smelter returns royalty, subject to the other's right to buy-down the royalty to 2.0% for $2.5 million. The Eagle Property was previously inactive and held by Avino as a non-essential asset to its current operations.
Located in the Keno Hill mining camp north of Whitehorse, the Eagle Property continues to offer exciting potential. In 2009, through an option agreement with Avino, Mega Silver Inc. drilled six holes over 1900 meters. The program successfully identified strong silver, gold, enriched zinc and lead mineralization hosted in the Eagle vein fault (0.3g/t Au, 284.3 g/t Ag, 3.16%Pb, 7.11% Zn. over 1.3m).
The work also established that the rare earth metal indium, used in plasma screens, is present in significant concentrations of up to 285.4 g/t indium (In) over 1.8m. Despite the strong results, Mega Silver returned the property to Avino so it could focus on its Red Lake project in Ontario. Avino is excited about future exploration at the Eagle property, as more work is needed to fully expose the potential for both silver and indium.
Highlights from 2009 drilling include:
|Hole Number||Intercept||Analytical Results*|
|No significant results.|
* Analytical results reported in ppb (Au) and ppm (Pb, Zn) and g/t (In) unless otherwise indicated.Down hole intersection lengths are reported, true widths are unknown
The property has produced very high assays for silver since exploration first occurred there in the 1950s. In 1950-51, the vein was exposed by bulldozer trenching. In 1963-64, Jersey Consolidated Mines Ltd. exposed over 120 metres of the vein. An 11.6 metre section, based on 9 chip samples at 1-to-2 metre intervals, reportedly averaged 442.3 g/t silver, 6.5% lead and 3.9% zinc across an average width of 0.46 metres (including a 1.2 metre section averaging 1,570.3 g/t silver across 0.55 metres; cited by: Archer, 1979).
Eagle Vein - Historic Reported Drilling (Ytg Minfile 105M 021)
|1964||Jersey Yukon Mines Ltd.||Branch Vein||2.1||1,885.7||12.8||4.2|
|1978/79||Teck Corporation||Main Vein
Part of the Historic Keno Hill Mining Camp
The Keno Hill mining camp is one of Canada's most productive for silver, lead and zinc. According to the Yukon government's Minfile database, between 1913 and 1989 the Keno Hill Silver District produced more than 217 million ounces of silver from over 5.3 million tons of ore with average grades of 40.52 ounces per ton (oz/ton) of silver, 5.62% lead and 3.14% zinc, making it the second-largest historical silver producer in Canada. In 1989, with falling metal prices and increased environmental standards, United Keno Hill Mines Limited terminated its mining activity in the District. Today, the District continues to boast significant mineral resources at grades far in excess of most of the world's primary silver producers.
Parallel to Structures of the Historic Hector-Calumet Mine
The Eagle Vein is located roughly 1.5 kilometres south of, and parallel to, the vein structures of the Hector-Calumet Mine, which generated almost half of all metal produced in the Keno Hill camp from 1935 to 1972. The Eagle vein varies from 0.6 to 4.9 metres in width with mineralized lenses of silver-rich galena, sphalerite and tetrahedrite in a siderite, pyrite and quartz gangue.
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.