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AVINO ACHIEVES A QUARTERLY RECORD 778,008 OZ OF SILVER EQUIVALENT PRODUCTION IN Q3 2022; A 20% INCREASE OVER Q2 2022

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AVINO ACHIEVES A QUARTERLY RECORD 778,008 OZ OF SILVER EQUIVALENT PRODUCTION IN Q3 2022; A 20% INCREASE OVER Q2 2022

 

 

 

 

 

Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6) is pleased to report its record third quarter 2022 production results from the Avino Mine property near Durango, Mexico.

 

“Our third quarter production was our strongest quarter from Avino in recent history, and results continue to exceed our expectations from the Avino Mine.” said David Wolfin, President and CEO of Avino. “With an unsettled market, Avino’s performance is a testament to our operations team in Mexico. We continue optimizing underground mining processes, growing and training a local workforce, and practicing sound financial responsibility at the mine site and corporate level. We believe that we will have strong production growth over the next 5 years. We also believe this should correspond with strong global industrial demand for silver and other metals that will be needed for the expanding green energy revolution. Despite a current downturn in metal prices, our concentrate continues to be sold at profitable levels.”

 

Production Highlights – Q3 2022 (Compared to Q2 20221)

  • Silver equivalent production increased 20% to 778,008 oz2
  • Silver production increased by 27% to 285,444 oz
  • Copper production increased by 28% to 2.1 million lbs
  • Gold production decreased by 11% to 1,201 oz
  • Mill throughput increased by 37% to 162,169 tonnes

 

Avino Mine Production – Three and Nine Months Ended September 30, 2022 (compared to Q2 2022 & 9M 20211)

 

Q3

2022

Q2

20221

Change1 YTD

2022

FY

20211

Change1
162,169 118,224 37 % Total Mill Feed (dry tonnes) 391,531 165,304 137 %
59 65 -9 % Feed Grade Silver (g/t) 58 53 9 %
0.31 0.46 -33 % Feed Grade Gold (g/t) 0.35 0.84 -61 %
0.66 0.69 -4 % Feed Grade Copper (%) 0.64 0.57 12 %
92 % 91 % 1 % Recovery Silver (%) 92 % 87 % 6 %
74 % 78 % -5 % Recovery Gold (%) 76 % 75 % 1 %
89 % 92 % -3 % Recovery Copper (%) 90 % 88 % 2 %
285,444 225,537 27 % Total Silver Produced (oz) 675,339 245,372 175 %
1,201 1,350 -11 % Total Gold Produced (oz) 3,352 3,386 -1 %
2,101,635 1,644,342 28 % Total Copper Produced (Lbs) 4,963,327 1,869,306 166 %
778,008 649,569 20 % Total Silver Equivalent Produced (oz)2 1,885,375 842,373 124 %

 

 

2022 Third Quarter Highlights

  • Steady Increase of Production at Avino: Mill throughput increased by 37% compared to Q2 2022, with over 160,000 tonnes milled. This represents the highest total tonnage milled from the Avino mine in recent history.
  • Announced ET Area Drilling Results: On October 11, 2022, Avino announced further drill results from the most recent six holes at the Avino Elena Tolosa (“ET”) area below our deepest Level 17 mining area. These drill results confirmed the downdip continuity of widths and grades of the Avino vein extending significant potential to a depth of at least 290 metres down dip below current development. Avino is advancing geological modelling to determine the potential geometry and controls of the mineralization. All three of Avino’s drills are currently turning with a focus on identifying the extent of the mineralization below the current production operations.
  • Exploration Update: At the end of Q3 2022, a total of 11,253 metres had been drilled. News releases on exploration released during the quarter are linked here: Avino ET Area – October 11, 2022

 

Dry Stack Tailings Facility Update

 

The installation and commissioning of the dry-stack tailings project has been completed. Avino is transitioning to full time operation of the pressure filters as site personnel fine tune the process. Avino chose dry-stack tailings for its environmental, safety and economic advantages. Dry-stack tailings improve the overall tailings facility safety and stability and reduces the need to extract water from local sources by recycling the water removed from tailings. In addition, dry-stack tailings require less land area which results in a smaller environmental footprint. Photos of the dry-stack facility can be viewed at this link.

 

La Preciosa Update

 

The Company is conducting community engagement in the nearby towns adjacent to the property and will provide further updates as plans develop. Avino is fully committed to moving this project forward as it factors prominently into the Company’s 5-year growth strategy.

 

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. Gold and silver assays are performed by the fire assay method with a gravimetric finish for concentrates and AAS (Atomic Absorption Spectrometry) methods for copper, lead, zinc and silver for the feed and tail grade samples. All concentrate shipments are assayed by one of the following independent third-party labs: Inspectorate in the UK, and LSI in the Netherlands and AHK.

 

Qualified Person(s)

 

Peter Latta, P. Eng, MBA, VP Technical Services, Avino who is a qualified person within the context of National Instrument 43-101 has reviewed and approved the technical data in this news release.

 

Corporate Update – Execution of Option & Royalty Agreement for the Olympic Claims with Endurance Gold

 

Further to the Company’s announcement on May 2, 2022, and in line with its strategic plans to become an intermediate producer in Mexico, an option and royalty agreement (together, the “Agreements”) for Endurance Gold (“Endurance”) to earn a 100% ownership in the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grants and mineral claims in BC (together, the “Olympic Claims”) has now been finalized.

 

The Olympic Claims are located on the north and south shores of BC Hydro’s Carpenter Lake Reservoir in the Bridge River Valley, east of the Royal Shear trend.

 

Under the terms of the Agreements, Endurance can earn a 100% interest in the Olympic Claims for:

  • A total cash consideration in the aggregate amount of $100,000 ($10,000 already paid);
  • The allotment and issuance of up to a total of 1,500,000 common shares (‘Shares’) of the Company (100,000 Shares already issued); and
  • Exploration expenditures in the aggregate amount of $300,000.
  • All to be incurred by December 31, 2024.
  • A payment of 100,000 Shares and $15,000 cash is due on or before December 31, 2022.

 

On vesting its ownership interest, the Olympic Claims will be subject to a 2% net smelter return royalty (“NSR”), of which 1% NSR can be purchased by Endurance for $750,000 and the remaining balance of the NSR can be purchased for $1,000,000.

 

As part of the final requirement to earn its interest, Endurance has agreed to grant to Avino 750,000 share purchase warrants by December 31, 2024, that offer Avino the option to purchase additional shares in the Company for a period of three years from the date of issuance. The exercise price of the Warrants will be set at a 25% premium to the 20-day Volume Weighted Average Price share price at the issuance date. During the Option, if Endurance is successful in defining a compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic Claims then Endurance will be obliged to pay Avino a $1,000,000 discovery bonus.

 

The original letter agreement was accepted by the TSX Venture Exchange in May 2022, and the terms accepted at the time remain unchanged. Any Shares or Warrants to be issued will be subject to a four-month hold period on issuance as per the policies of the TSX Venture Exchange. All dollar amounts in the Agreements refer to Canadian dollars.

 

About Avino

 

Avino is primarily a silver producer from its wholly owned Avino Mine near Durango, Mexico. The Company’s silver, gold and copper production remains unhedged. The Company’s mission and strategy is to create shareholder value through its focus on profitable organic growth at the historic Avino Property and the strategic acquisition of the La Preciosa property. Avino currently controls mineral resources, as per NI 43-101, that total 290 million silver equivalent ounces, within our district scaled land package. We are committed to managing all business activities in a safe, environmentally responsible, and cost-effective manner, while contributing to the well-being of the communities in which we operate.

 

Posted October 18, 2022

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