Avino Silver & Gold Mines Ltd.
| Report date | May 25, 2008 |
|---|---|
| Symbol | ASM, Toronto Venture |
| Symbol | GV6, Frankfurt |
| Symbol | ASGMT, US OTC |
The Melman Report - Avino Silver & Gold Mines Ltd.
One of the more common stories in mining lore is how a producing mine shuts down, the owners abandon the project and it is eventually sold to new owner/operators who attempt to bring it back to life. However, for one Canadian junior, Vancouver-based Avino Silver & Gold Mines Ltd., that story has taken an unusual turn as Avino itself is in the process of bringing back into production its flagship Avino Mine in Durango State, Mexico.
The company operated the Avino Mine as either an open pit operation or an underground mine on a limited basis from 1970 until 1974 and then continuously until production ceased in 2001 due primarily to declining metals prices. A fully-operational, on-site mill was constructed and maintained during those years of operation. During its lifetime, the Avino Mine produced about 17 million ounces of silver, close to 150,000 ounces of gold, plus 11,000 tonnes of copper and significant amounts of lead.
During the years of operation, an immense tailings area was built up, primarily as a result of processing open-pit, oxide ores. The open cut left behind from those operations also provides access to underground workings for future exploration and development.
Thanks to increasing prices for both precious and base metals, the company came to the decision that it was possible to reopen the mine and bring it back into active production. Company management and geologists developed a multi-stage program involving:
Development of the ET zone in the area to the south of the open pit,
Refurbishment of equipment left idle since the close of previous operations,
Exploration and development of reserves in other property areas,
Eventual recovery of values from several million tonnes of tailings.
Part of the process of reopening the Avino Mine has been the completion of extensive metallurgical testing of ores, particularly those coming from the San Gonzalo zone. In late April, 2008, the company was able to report that testing at SGS Mineral Services of Durango, Mexico showed flotation recoveries of gold at 89 to 90% and silver 92 to 93%. Base metals recoveries varied from 71 to 90%.
Company President David Wolfin commented, “With the positive results from the testing of San Gonzalo ore we are moving ahead with the necessary permits to commence a 10,000 tonne bulk sample. While we wait for the permits we have been assembling a 250 tonne per day mill. The majority of the equipment is already on site.”
Infrastructure in the area is excellent with paved roads, abundant power, sufficient water and a full spectrum of mining services available in Durango City, just 80 km distant from the mine. Manpower is available from neighboring towns and the company owns and operates a 40-person dormitory facility adjacent to the project.