Significant Production Expansion At Avino Property

 

VANCOUVER, Avino Silver & Gold Mines Ltd. reported significant production expansion at the Avino Property in 2014. During the year, the Company's consolidated silver equivalent production increased by 49% for a total of 1,342,150 ounces.

The high-grade San Gonzalo Mine increased its production over 2013 by 27% for a total of 958,702 ounces of silver equivalent. The increase was a result of better grades for silver and gold which showed an improvement of 17% and 40% respectively.

The Avino Mine, which came online in September, contributed to the increase in silver production. During the four months that new underground material from the Avino Mine was being processed using the 250 tonne per day (TPD) mill Circuit 2, 119,738 ounces of silver equivalent were produced.

The Avino Mine Historical Stockpile operation also contributed significantly to the 2014 production growth due to an 83% increase in silver equivalent production from the stockpiles.

Avino expects a similar percentage increase in total silver-equivalent production in 2015 with the Avino Mine now online and running at the full capacity of 1,000 TPD.

Mine exploration and development at San Gonzalo had a successful year and included the discovery of significant additional mineralization along strike to the Southeast of levels 3 thru 6. These areas had not previously been considered for mining. In 2015, we look forward to another year of consistent production from San Gonzalo as we continue to explore the surrounding area.

Following several years of redevelopment, in Q4 2014 the Company completed its Avino Mine and mill expansion. This significant milestone represents the first mining activity since the mine closed in 2001 due to low metals prices. Initially, new material from underground at Avino was processed on a limited scale using the existing 250 TPD mill Circuit 2. By year end, rehabilitation of the 1,000 TPD mill Circuit 3 had been completed and sufficient material had been stockpiled; on January 1, 2015, full scale operations commenced. To service the mine a new jumbo and scoop along with a generator, shotcrete machine and air compressor were acquired in 2014. In 2015, we expect to finalize plans to build a new tailings storage facility and complete the new 20 km power line to service both mines and all three mill circuits.

While the Avino Mine expansion was the primary focus during the year, the search for new ounces was also a high priority. The 2014 drill program, which included both surface and underground drilling, was focused on the area around the San Gonzalo mine and totaled 1,257 meters through 15 holes.

Many of the known veins on the property splay from the southeast corner of the claim block and trend in a northwesterly direction. The area that appears to be the focal point of the mineralization is known as Cerro San Jose and will be explored extensively in the future. The near term objective for exploration is to add mill feed near existing mine workings at the San Gonzalo and Avino Mines. Two such targets are the Guadelupe and Aguila Mexicana vein systems, which have been successfully intersected in the past and could theoretically be, accessed underground through the existing San Gonzalo Mine workings. Plans for 2015 drilling will be released once the budget is complete.