AVINO REPORTS ON PROGRESS TOWARDS BULK SAMPLING
Avino Silver & Gold
Mines Ltd. (the "Company")
reports significant progress towards its goal of beginning a 10,000-tonne bulk
sample leading to production at the companys Avino silver mine in Mexico. Plant refurbishing is nearly complete, all
permits are in place and management expects to begin processing ore from the
high-grade San Gonzalo vein during the first quarter of 2010.
A
major portion of the work and investment in 2009 centered on modernizing the
existing mine and equipment. David
Wolfin, president emphasized the steps required to make the facility
production-ready.
From rebuilding crushers and ball mills to re-fitting the
plant, we are committed to making this facility modern and efficient.
We are
looking well beyond the bulk sampling phase and preparing for many years of
production.
The
Avino mine operated continuously from 1974 to 2001, when low silver prices and
the closure of a key smelter forced it to suspend operations.
The eight-year
shutdown meant practically every aspect of the facility had to be upgraded or
replaced.
Weve been fortunate to have a resourceful crew managing the
project, Wolfin stated. They have
saved us a great deal of money and time by sourcing local parts and supplies
and, when necessary, machining their own parts on site.
While the scope of the
work has been extensive, the total remaining cost of the upgrade has been
projected at just over $1.5 million.
Wolfin
also stated that a crucial element for the upcoming bulk sampling and
production is now in place.
We have had positive discussions with a Mexican
smelter to take all of our concentrate, said Wolfin.
This is something we
have been working on for some time. We
continue to source alternative buyers.
Avinos
Project Engineer Jasman Yee, who is overseeing the project, outlined the
following key milestones achieved at the mine in 2009:
- Secured all permits to operate
the San Gonzalo deposit and the processing plant at the rate of 250 tons per
day.
These permits are valid for running the 10,000 ton bulk sample as well as
full production.
In addition, Avino has kept these permits in good standing
with regular submissions to the regulatory authorities to maintain compliance.
- Held discussions with power
supplier CFE with regards to increasing the supply of power to the plant.
This
step was necessary to operate the 250tpd circuit on a sustained basis and
resulted in and electrical system upgrade.
- Finalizing selection of the
mining contractor for development work and extraction of the 10,000-ton bulk
sample.
Objective is to have the collaring of the decline started in November
of this year.
- Water supply system from the
tailings pond completed and fully functional.
- Repairs to the assay lab
completed.
A new AAS unit was purchased to provide on-site control assays.
- The 250
tpd mill circuit is almost complete with all major pieces in place.
Outstanding
work includes the purchase of several pumps in the filter area and installation
of the all the slurry, water and air pipelines.
- Crushing plant is being upgraded
with major repairs to the cone crusher, vibrating screen and the conveyors.
The
decline will descend into the San Gonzalo vein, where drilling over the past
two years has outlined a resource of 444,250 tonnes grading 332 g/t silver,
2.61 g/t gold, 1.5% zinc and 1.0% lead.
Exploration and development to expand the
resource will continue.
On Behalf of the Board
David Wolfin
______________________________
David Wolfin
President
This press release contains certain forward-looking statements.
Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors.
Such uncertainties include, among others, certain risks associated with the operation of the company described above.
The Companys actual results could differ materially from expected results. |