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Avino Announces Q4 and Full Year 2019 Production Results

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Avino Announces Q4 and Full Year 2019 Production Results

 

 

 

 

 

Avino Silver & Gold Mines Ltd. (TSX: ASM) (NYSE American:ASM) (GV6: FSE) announces its fourth quarter and full year 2019 production results from its Avino property near Durango, Mexico.

 

Consolidated Production Highlights for Q4, 2019 (Compared to Q4, 2018)

 

  • Silver equivalent production decreased by 15% to 608,640 oz*
  • Gold production increased by 3% to 2,032 oz
  • Silver production decreased by 23% to 220,804 oz
  • Copper production increased by 1% to 1,389,515 lbs

 

Consolidated Production Highlights for 2019 (Compared to 2018)

 

  • Silver equivalent production decreased by 16% to 2,397,042 oz*
  • Gold production decreased by 15% to 6,912 oz
  • Silver production decreased by 25% to 958,811 oz
  • Copper production increased by 3% to 4,970,254 lbs
* In Q4, 2019, AgEq was calculated using metals prices of $17.31 oz Ag, $1,482 oz Au and $2.73 lb Cu. In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 lb Cu. Calculated figures may not add up due to rounding.
* In 2019, AgEq was calculated using metals prices of $16.20 oz Ag, $1,393 oz Au and $2.96 lb Cu. In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu.

 

 

The silver equivalent production in Q4 2019 decreased by 15% compared to Q4 2018 and directly corresponds to the marginal amount of production San Gonzalo contributed due to the mine’s planned stoppage. However, overall production results were higher compared to Q3 2019 due to the Avino mine performing well from a grade, throughput and mill availability perspective. The Avino Historic Above Ground (“AHAG”) material also performed well throughout the quarter.

 

In lockstep, the decrease in silver production and consolidated silver grade in 2019, compared to 2018, can also be attributed to the decreasing grade and planned shutdown at San Gonzalo.

 

The Mexican mining industry has not been immune to the civil unrest, labour disputes and uncertain economic conditions that has been seen across Latin America, but Avino continues to work closely with all stakeholders and communities surrounding the Avino mine, to avoid any disruptions and ensure continuous efficient operation. Avino continues to value its employees, contractors, suppliers and managers for the professional and fair conduct.

 

“During Q4 2019 we achieved higher production compared to Q3 2019, due to the higher grades at the Avino Mine achieved during the month of November as a result of a mine sequence that included a significant portion of a geological gold lens within the Avino mine resulting in higher gold grades sent to the mill and ultimately, recovered,” said David Wolfin, President and CEO. “In addition, some metallurgical improvements made earlier in the year have improved gold recovery. Although Avino’s full year 2019 production results were lower compared to 2018, they were within our internal expectations of between 2.4 million and 2.6 million silver equivalent ounces. I’m very proud of all the work we were able to accomplish in 2019 and I want to personally thank all the Avino personnel for their efforts. We look forward to a prosperous 2020 and a more expansive exploration program across our property in and around the Avino mine.”

 

2020 Production

 

As discussed last quarter, Avino is expected to transition full production from the Avino mine as San Gonzalo is now exhausted and only a small amount of AHAG material remains. In developing the underground connection between the two portals, required for efficient underground traffic and an increased rate of material being brought to the surface, Avino has experienced some delays due to some training shortages for certain equipment. This connection is planned to be completed in the first quarter of 2020 so that full production from the Avino mine can be achieved.

 

Consolidated Production Tables

 

 

Q4 2019
Production by Mine Tonnes Processed Silver
Oz
Gold
Oz
Copper
Lbs
AgEq
Avino 107,310 153,644 1,676 1,293,508 495,496
San Gonzalo 2,908 4,106 26 6,964
Historic Above Ground Stockpiles 78,218 63,054 330 96,007 106,180
Consolidated 188,436 220,804 2,032 1,389,515 608,640
YTD 2019
Production by Mine Tonnes Processed Silver
Oz
Gold
Oz
Copper
Lbs
AgEq
Avino 427,147 510,270 4,473 4,563,195 1,656,091
San Gonzalo 56,179 153,372 580 215,148
Historic Above Ground Stockpiles 306,334 295,169 1,859 407,059 525,803
Consolidated 789,660 958,811 6,912 4,970,254 2,397,042

 

 
*During the three months and year ended December 31, 2019, the Company produced 958 and 20,412 AgEq oz, respectively, of zinc by-product concentrate which has been included in the “San Gonzalo” production category above.
 
* In Q4, 2019, AgEq was calculated using metals prices of $17.31 oz Ag, $1,482 oz Au and $2.73 lb Cu. In Q4, 2018, AgEq was calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and $2.80 lb Cu. Calculated figures may not add up due to rounding.
*In 2019, AgEq was calculated using metals prices of $16.20 oz Ag, $1,393 oz Au and $2.96 lb Cu. In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu.

 

 

 

Q4 2019
Grade & Recovery by Mine Grade
Ag g/t
Grade
Au g/t
Grade
Cu %
Recovery
Ag %
Recovery
Au %
Recovery
Cu %
Avino 51 0.64 0.62 87% 76% 89%
San Gonzalo 53 0.38 78% 72%
Historic Above Ground Stockpiles 51 0.25 0.18 50% 53% 31%
Consolidated 51 0.47 0.43 71% 67% 64%
YTD 2019
Grade & Recovery by Mine Grade
Ag g/t
Grade
Au g/t
Grade
Cu %
Recovery
Ag %
Recovery
Au %
Recovery
Cu %
Avino 44 0.45 0.56 85% 73% 86%
San Gonzalo 118 0.46 69% 66%
Historic Above Ground Stockpiles 55 0.36 0.18 54% 53% 35%
Consolidated 54 0.41 0.40 72% 65% 64%

 

 

Avino Mine Production Highlights

 

 

  Q4
2019
Q4**
2018
Quarterly
Change
 

2019

 

2018

 

Change

Total Mill Feed (dry tonnes) 107,310 101,104 6% 427,147 426,794 0%
Feed Grade Silver (g/t) 51 47 10% 44 53 -18%
Feed Grade Gold (g/t) 0.64 0.47 37% 0.45 0.49 -8%
Feed Grade Copper (%) 0.62 0.62 0% 0.56 0.55 2%
Recovery Silver (%) 87% 87% 0% 85% 84% 1%
Recovery Gold (%) 76% 71% 7% 73% 69% 6%
Recovery Copper (%) 89% 91% -2% 86% 87% -2%
Total Silver Produced (oz) 153,644 132,092 16% 510,270 614,361 7%
Total Gold Produced (oz) 1,676 1,078 55% 4,473 4,625 -3%
Total Copper Produced (Lbs) 1,293,508 1,256,347 3% 4,563,195 4,546,952 0%
Total Silver Equivalent Produced (oz)* 495,496 465,139 7% 1,656,091 1,847,303 -10%
 
*In Q4, 2019, AgEq was calculated using metals prices of $17.32 oz Ag, $1,482 oz Au and $2.67 lb Cu. In Q4, 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. Calculated figures may not add up due to rounding.
*In 2019, AgEq was calculated using metals prices of $16.20 oz Ag, $1,393 oz Au and $2.96 lb Cu. In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu.
 
**The figures for Q4 2018 include San Luis processed material that was not included in the previously released Q4 2018 production table however it was reflected in the consolidated figures.

 

 

Overall, silver equivalent production at Avino increased by 7% compared to Q4, 2018, as a result of increased gold and silver grades during the quarter as well as the increase in gold recovery. Mill feed at Avino increased by 6%, which helped maintain the mill throughput at maximum capacity despite the drop off from San Gonzalo.

 

San Gonzalo Production Highlights

 

 

  Q4

2019

Q4

2018

Quarterly

Change

 

2019

 

2018

 

Change

Total Mill Feed (dry tonnes) 2,908 19,437 -85% 56,179 79,140 -29%
Feed Grade Silver (g/t) 53 172 -69% 118 222 -47%
Feed Grade Gold (g/t) 0.38 0.89 -58% 0.46 1.03 -55%
Recovery Silver (%) 78% 76% 2% 69% 77% -10%
Recovery Gold (%) 72% 75% -3% 66% 75% -12%
Total Silver Produced (oz) 4,106 81,864 -95% 153,372 456,709 -66%
Total Gold Produced (oz) 26 414 -94% 581 2,070 -72%
Total Silver Equivalent Produced (oz)* 6,964 116,599 -95% 215,148 635,684 -66%

 

*In Q4, 2019, AgEq was calculated using metals prices of $17.32 oz Ag, $1,482 oz Au and $2.67 lb Cu. In Q4, 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. Calculated figures may not add up due to rounding.
 
*In 2019, AgEq was calculated using metals prices of $16.20 oz Ag, $1,393 oz Au and $2.96 lb Cu. In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu.
 
*For the year ended December 31, 2019, the Company produced 958 and 20,412 AgEq oz, respectively, of zinc by-product concentrate which has been included in the “San Gonzalo” production category above

 

 

As noted above, San Gonzalo reached the end of its current resources in Q4 and mining was stopped. As mentioned previously, it will remain open for continued exploration at different underground levels.

 

Avino Historic Above Ground (AHAG) Stockpiles Production Highlights

 

 

  Q4
2019
Q4
2018
Quarterly
Change
 

2019

 

2018

 

Change

Total Mill Feed (dry tonnes) 78,218 69,033 13% 306,334 202,830 51%
Feed Grade Silver (g/t) 51 60 -16% 55 58 -4%
Feed Grade Gold (g/t) 0.25 0.43 -42% 0.36 0.41 -12%
Feed Grade Copper (%) 0.18 0.18 0% 0.18 0.16 12%
Recovery Silver (%) 50% 56% -11% 54% 57% -5%
Recovery Gold (%) 53% 51% 5% 53% 52% 1%
Recovery Copper (%) 31% 44% -31% 35% 38% -10%
Total Silver Produced (oz) 63,054 74,824 -16% 295,169 215,312 37%
Total Gold Produced (oz) 330 481 -31% 1,859 1,397 33%
Total Copper Produced (Lbs) 96,007 119,411 -20% 407,059 272,070 50%
Total Silver Equivalent Produced (oz) calculated* 106,180 138,449 -23% 525,803 380,766 38%
 
*In Q4, 2019, AgEq was calculated using metals prices of $17.32 oz Ag, $1,482 oz Au and $2.67 lb Cu. In Q4, 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu. Calculated figures may not add up due to rounding.
*In 2019, AgEq was calculated using metals prices of $16.20 oz Ag, $1,393 oz Au and $2.96 lb Cu. In 2018, AgEq was calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and $2.96 lb Cu.

 

 

AHAG material throughput was up 13% this quarter compared to Q4 2018, helping to offset the decreased throughput from San Gonzalo. The decreasing silver and gold grades, however, indicate that Avino is reaching the end of this material as we transition to full production at the Avino mine.

 

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 the gravimetric finish for the concentrates and the AAS methods for copper, lead, zinc and silver for the feed grade samples. All concentrate shipments are assayed by one of the following independent third-party labs: AHK, and Inspectorate in the UK and LSI in the Netherlands.

 

Qualified Person(s)

 

Peter Latta, P.Eng, MBA, Senior Technical Advisor, Avino and Jasman Yee P.Eng, Avino director, both of whom are qualified persons within the context of National Instrument 43-101 have reviewed and approved the technical data in this news release.

 

About Avino

 

Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico employing close to 350 people. Avino produces from its wholly owned Avino Mine near Durango, Mexico. The Company’s gold and silver 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 near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. Avino is committed to managing all business activities in an environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which we operate.

 

Posted January 16, 2020

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