In the news release, Avino Announces Q4 and Full Year 2018
Production Results, issued 17-Jan-2019 by Avino
Silver & Gold Mines Ltd. over Cision, we are advised by
the company that this press release corrects and replaces certain
typographical errors. The complete, corrected release follows:
Avino Announces Q4 and Full Year 2018 Production Results
VANCOUVER, Jan. 17, 2019 /PRNewswire/ - Avino Silver & Gold Mines Ltd. (ASM:
TSX/NYSE American, GV6: FSE, "Avino" or "the Company") is
pleased to announce its fourth quarter and full year 2018
production results from its Avino property near Durango, Mexico.
Consolidated Production Highlights for 2018 (Compared to
2017)
- Silver equivalent production increased by 6% to 2,863,753
oz*
- Gold production increased by 2% to 8,092 oz
- Silver production decreased by 8% to 1,286,382 oz
- Copper production increased by 10% to 4,819,022 lbs
Consolidated Production Highlights for Fourth Quarter, 2018
(Compared to Fourth Quarter, 2017)
- Silver equivalent production increased by 13% to720,187
oz*
- Gold production increased by 34% to 1,973 oz
- Silver production decreased by 10% to 288,600 oz
- Copper production increased by 24% to 1,375,758 lbs
*
|
In 2018, AgEq was
calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and
$2.96 lb Cu. In 2017, AgEq was calculated
using metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu
|
|
|
*
|
In Q4, 2018, AgEq was
calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and
$2.80 Cu. In Q4, 2017, AgEq was calculated
using metals prices of $16.70 oz Ag, $1,276 Au and $3.09
Cu.
|
"We had another year of consistent production at the Avino
property, producing 2,863,753 silver equivalent ounces, which was
in line with our internal projections." said David Wolfin, President and CEO. "The completion
of Mill Circuit 4 contributed to an increase of 6% in silver
equivalent ounce production over 2017, and also helped offset
decreasing grades at the San Gonzalo Mine which is nearing the end
of its mine life. The underground development at San Luis was temporarily reduced to save costs
in the third and fourth quarters of 2018, therefore we are
positioned to increase the throughput and the rate of development
of the San Luis area during the
latter part of 2019. We expect 2019 production to be similar to
2018. We continue to be mindful of costs Company-wide and are
taking a pragmatic approach to expanding our operations.
Finally, I wish to thank the operations team in Mexico for all their hard work and
dedication."
Consolidated Production Tables
2018
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
426,794
|
614,361
|
4,625
|
4,546,952
|
1,847,303
|
San
Gonzalo
|
79,140
|
456,709
|
2,070
|
-
|
635,684
|
Historic Above Ground
Stockpiles
|
202,830
|
215,312
|
1,397
|
272,070
|
380,766
|
Consolidated
|
708,764
|
1,286,382
|
8,092
|
4,819,022
|
2,863,753
|
2018
|
Grade &
Recovery by Mine
|
Tonnes
Processed
|
Grade
Ag g/t
|
Grade
Au g/t
|
Grade
Cu %
|
Recovery
Ag %
|
Recovery
Au %
|
Recovery
Cu %
|
Avino
|
426,794
|
53
|
0.49
|
0.55
|
84%
|
69%
|
87%
|
San
Gonzalo
|
79,140
|
222
|
1.03
|
-
|
77%
|
75%
|
-
|
Historic Above Ground
Stockpiles
|
202,830
|
58
|
0.41
|
0.16
|
57%
|
52%
|
38%
|
Consolidated
|
708,764
|
73
|
0.53
|
0.43
|
76%
|
65%
|
72%
|
Q4
2018
|
Production by
Mine
|
Tonnes
Processed
|
Silver
Oz
|
Gold
Oz
|
Copper
Lbs
|
AgEq
|
Avino
|
101,104
|
132,092
|
1,078
|
1,256,347
|
465,139
|
San
Gonzalo
|
19,437
|
81,684
|
414
|
-
|
116,599
|
Historic Above Ground
Stockpiles
|
69,033
|
74,824
|
481
|
119,411
|
138,449
|
Consolidated
|
189,574
|
288,600
|
1,973
|
1,375,758
|
720,187
|
Q4
2018
|
Grade &
Recovery by Mine
|
Tonnes
Processed
|
Grade
Ag g/t
|
Grade
Au g/t
|
Grade
Cu %
|
Recovery
Ag %
|
Recovery
Au %
|
Recovery
Cu %
|
Avino
|
101,104
|
47
|
0.47
|
0.62
|
87%
|
71%
|
91%
|
San
Gonzalo
|
19,437
|
172
|
0.89
|
-
|
76%
|
75%
|
-
|
Historic Above Ground
Stockpiles
|
69,033
|
60
|
0.43
|
0.18
|
56%
|
51%
|
44%
|
Consolidated
|
189,574
|
64
|
0.50
|
0.44
|
75%
|
64%
|
72%
|
Although the focus is on our overall consolidated results, there
are some noteworthy points for each of our mines, as well as our
above ground historical stockpiles, which can be determined from
the tables below.
During 2018, material mined from the Avino Mine (Elena Tolosa ("ET") area was processed using
Mill Circuit 3, as well as Mill Circuit 2 through mid-July. In the
latter portion of July, Mill Circuit 2 transitioned to processing
Avino Historic Above Ground ("AHAG") Stockpiles, and on
September 24th, Mill Circuit 2 began
processing mined material from the newly-developed San Luis area of the Avino Mine. Mill Circuit
4 was commissioned on the AHAG Stockpiles and continued to process
this material through all of 2018. Through 2018, Mill Circuit 1
continued to process San Gonzalo ore.
Avino Mine Production Highlights
|
Q4
2018
|
Q4
2017
|
Quarterly
Change
%
|
2018
|
2017
|
Yearly
Change
%
|
Total Mill Feed (dry
tonnes)
|
101,104
|
109,088
|
-7%
|
426,794
|
460,890
|
-7%
|
Feed Grade Silver
(g/t)
|
47
|
50
|
-7%
|
53
|
64
|
-17%
|
Feed Grade Gold
(g/t)
|
0.47
|
0.32
|
45%
|
0.49
|
0.52
|
-5%
|
Feed Grade Copper
(%)
|
0.62
|
0.52
|
19%
|
0.55
|
0.48
|
14%
|
Recovery Silver
(%)
|
87%
|
87%
|
0%
|
84%
|
85%
|
-1%
|
Recovery Gold
(%)
|
71%
|
69%
|
3%
|
69%
|
69%
|
0%
|
Recovery Copper
(%)
|
91%
|
88%
|
3%
|
87%
|
89%
|
-2%
|
Total Silver Produced
(Kg)
|
4,109
|
4,756
|
-14%
|
19,109
|
24,990
|
-24%
|
Total Gold Produced
(g)
|
33,534
|
24,161
|
39%
|
143,843
|
163,582
|
-12%
|
Total Copper Produced
(Lbs)
|
1,256,347
|
1,108,800
|
13%
|
4,546,952
|
4,373,166
|
4%
|
Total Silver
Equivalent Produced (oz)*
|
465,139
|
417,182
|
11%
|
1,847,303
|
1,911,428
|
-3%
|
|
|
*
|
In 2018, AgEq was
calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and
$2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu
|
|
|
*
|
In Q4, 2018, AgEq was
calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and
$2.80 Cu. In Q4, 2017, AgEq was calculated
using metals prices of $16.70 oz Ag, $1,276 Au and $3.09
Cu.
|
Mill throughput was down 7% on a quarterly basis due to
switching Mill Circuit 2 to San
Luis material from AHAG Stockpiles. Copper and gold grades
increased 19% and 45%, respectively, compared to Q4 2017, with only
a slight 7% decrease in silver grade.
When examined on a yearly basis, overall mill throughput and
calculated silver ounces are lower, as a result of Mill Circuit 2
processing historic stockpile material during Q3, 2018, as we have
mentioned above and in previous press releases. The lower tonnage
processed combined with the variations in feed grades resulted in
an increase in copper production by 4% and silver and gold
production decreased by 24% and 12%, respectively, for the year
compared to 2017.
The copper feed grade increased by 14% while the silver and gold
grades decreased by 17% and 5%, respectively. The change in grades
was mainly due to the areas being mined at the ET and San Luis areas.
Despite the lower throughput from the Avino Mine, the
consolidated production numbers show an increase in overall
production as we varied our feed mix to each mill circuit
throughout the year to maximize profitability.
Finally, underground development was also up 31% on a yearly
basis as we continue to develop both the ET and San Luis underground areas at the Avino
Mine.
San Gonzalo Production Highlights
|
Q4
2018
|
Q4
2017
|
Quarterly
Change
%
|
2018
|
2017
|
Yearly
Change%
|
Total Mill Feed (dry
tonnes)
|
19,437
|
20,467
|
-5%
|
79,140
|
81,045
|
-2%
|
Feed Grade Silver
(g/t)
|
172
|
290
|
-41%
|
222
|
269
|
-17%
|
Feed Grade Gold
(g/t)
|
0.89
|
1.36
|
-35%
|
1.03
|
1.32
|
-22%
|
Recovery Silver
(%)
|
76%
|
87%
|
-12%
|
77%
|
84%
|
-8%
|
Recovery Gold
(%)
|
75%
|
77%
|
-3%
|
75%
|
78%
|
-4%
|
Total Silver Produced
(Kg)
|
2,541
|
5,187
|
-51%
|
13,500
|
18,375
|
-27%
|
Total Gold Produced
(g)
|
12,867
|
21,612
|
-40%
|
60,800
|
83,215
|
-27%
|
Total Silver
Equivalent Produced (oz)*
|
116,599
|
219,830
|
-47%
|
592,098
|
789,157
|
-25%
|
|
|
*
|
In 2018, AgEq was
calculated using metals prices of $15.71 oz Ag and $1,270 oz Au. In
2017, AgEq was calculated using metals prices of
$17.05 oz Ag and $1,258 oz Au
|
|
|
*
|
In Q4, 2018, AgEq
was calculated using metals prices of $14.55 oz Ag and $1,229 oz
Au. In Q4, 2017, AgEq was calculated using metals
prices of $16.70 oz Ag and $1,276 Au.
|
|
|
*
|
An additional
43,586 silver equivalent ounces were produced in 2018 from the zinc
circuit, however as noted below, there was no production from this
test circuit in the fourth quarter 2018.
|
At San Gonzalo, the mine is approaching its end of life and the
grades, recoveries and production have started to tail off. This is
in line with our internal expectations.
During the fourth quarter, 2018, silver and gold feed grades
declined by 41% and 35%, respectively, compared to the fourth
quarter, 2017, along with a decrease in both silver recovery, and
to a much lesser extent gold recovery. Combined with a 5% decrease
in mill feed tonnes, there was a resulting 47% decrease in silver
equivalent ounces produced.
On an annual basis the silver and gold feed grades declined by
17% and 22%, respectively, compared to year end 2017. This combined
together with a slight decrease in both silver and gold recovery
lead to San Gonzalo producing 25% fewer ounces on a year over year
comparison basis.
These lost ounces were more than offset through the addition of
Mill Circuit 4 and the processing of the AHAG Stockpiles as
discussed below.
Historic Above Ground Stockpiles Production
Highlights
|
Q4
2018
|
2018
|
Total Mill Feed (dry
tonnes)
|
69,033
|
202,830
|
Feed Grade Silver
(g/t)
|
60
|
58
|
Feed Grade Gold
(g/t)
|
0.43
|
0.41
|
Feed Grade Copper
(%)
|
0.18
|
0.16
|
Recovery Silver
(%)
|
56%
|
57%
|
Recovery Gold
(%)
|
51%
|
52%
|
Recovery Copper
(%)
|
44%
|
38%
|
Total Silver Produced
(Kg)
|
2,327
|
6,697
|
Total Gold Produced
(g)
|
14,964
|
43,454
|
Total Copper Produced
(Lbs)
|
119,411
|
272,070
|
Total Silver
Equivalent Produced (oz) calculated*
|
138,449
|
380,766
|
|
|
*
|
In 2018, AgEq was
calculated using metals prices of $15.71 oz Ag, $1,270 oz Au and
$2.96 lb Cu. In 2017, AgEq was calculated using
metals prices of $17.05 oz Ag, $1,258 oz Au and $2.80 lb
Cu.
|
|
|
*
|
In Q4, 2018, AgEq was
calculated using metals prices of $14.55 oz Ag, $1,229 oz Au and
$2.80 Cu. In Q4, 2017, AgEq was calculated
using metals prices of $16.70 oz Ag, $1,276 Au and $3.09
Cu.
|
In the fourth quarter, 2018, Mill Circuit 4 processed 69,033
tonnes of the AHAG Stockpiles, producing 138,449 silver equivalent
ounces. As per our July 18th press
release, Mill Circuit 4 started processing material in May 2018; therefore, the 2018 figures reflect
that start-up date, including the initial commissioning phases,
where the mill was not running at its 1,000 tpd capacity. In
keeping with the Company cost reduction initiatives, which were
announced in the third quarter 2018, Mill Circuit 2 also processed
the AHAG Stockpiles material to allow reduced underground work at
the ET area of the Avino Mine. A total of 202,830 dry tonnes
of AHAG Stockpiles was processed through the mill circuits, which
added a total of 380,766 silver equivalent ounces to our overall
consolidated silver equivalent production.
Avino Mine Expansion (San Luis
Area)
The San Luis area of the Avino
Mine is accessed through a separate portal located approximately
2 km from the main entrance of the Avino Mine (Elena Tolosa area). Current resources at
San Luis were included in the most
recent resource estimate on the Avino property, which can be found
in Avino's news release dated February 21,
2018 on Avino's website and under the company's profile on
the SEDAR system. The news release was also filed with the SEC on
Form 6-K.
San Luis material is currently
being processed in Mill Circuit 2 until sufficient underground
development has been done to transition to processing this material
to the larger Mill Circuit 4.
Zinc Circuit
During the fourth quarter, 2018, the Company did not continue
its testing program for recovery of precious metals and zinc from
the San Gonzalo tailings, due to lower grades. The Company will
evaluate the zinc circuit on a quarterly basis and may resume its
testing program in the future.
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. 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 and Canada employing close to 500 people. Avino
produces from its wholly owned Avino and San Gonzalo Mines near
Durango, Mexico, and is currently
planning for future production at the Bralorne Gold Mine in
British Columbia, Canada. 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.
ON BEHALF OF THE BOARD
"David Wolfin"
David
Wolfin
President & Chief Executive
Officer
Safe Harbor Statement - This news release contains
"forward-looking information" and "forward-looking statements"
(together, the "forward looking statements") within the meaning of
applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995, including the updated mineral
resource estimate for the Company's Avino Property located near
Durango in west-central Mexico
(the "Property") with an effective date of February 21, 2018, and amended on December 19, 2018, prepared for the Company, and
reference to Measured, Indicated, Inferred Resources referred to in
this press release. These forward-looking statements are made
as of the date of this news release and the dates of technical
reports, as applicable. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the future circumstances, outcomes or results
anticipated in or implied by such forward-looking statements will
occur or that plans, intentions or expectations upon which the
forward-looking statements are based will occur. While we have
based these forward-looking statements on our expectations about
future events as at the date that such statements were prepared,
the statements are not a guarantee that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward-looking
statements. No assurance can be given that the Company's Property
does not have the amount of the mineral resources indicated in the
updated report or that such mineral resources may be economically
extracted.
Such factors and assumptions include, among others, the effects
of general economic conditions, the price of gold, silver and
copper, changing foreign exchange rates and actions by government
authorities, uncertainties associated with legal proceedings and
negotiations and misjudgments in the course of preparing
forward-looking information. In addition, there are known and
unknown risk factors which could cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with project development; the need for additional
financing; operational risks associated with mining and mineral
processing; fluctuations in metal prices; title matters;
uncertainties and risks related to carrying on business in foreign
countries; environmental liability claims and insurance; reliance
on key personnel; the potential for conflicts of interest among
certain of our officers, directors or promoters with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of the our common share price
and volume; tax consequences to U.S. investors; and other risks and
uncertainties. Although we have attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. We are under no obligation to update or alter any
forward-looking statements except as required under applicable
securities laws.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
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content:http://www.prnewswire.com/news-releases/avino-announces-q4-and-full-year-2018-production-results-300780586.html
SOURCE Avino Silver & Gold
Mines Ltd.