Vancouver, British Columbia, July 12, 2011 - Avino Silver and Gold (TSXV:ASM) reports results from the recent sale of concentrate from the bulk sample program completed during the first quarter of 2011.
InvestmentPitch.com has produced a "video news alert (http://www.investmentpitch.com/media/948/Avino_Silver_amp;_Gold_Mines_Ltd.__TSXV:_ASM_-_News_Alert/)" about Avino Silver & Gold. If this link in not enabled, please visit www.investmentpitch.com (http://www.investmentpitch.com/) and enter "Avino948" in the search box.
With the completion of the bulk sample, Avino has achieved a major milestone in its goal to continue as a low cost silver producer.
The 10,000 tonne bulk sample came from the company's San Gonzalo deposit in Durango, Mexico. Avino acquired this project, once the largest open-cut mine in the world, in 1974 and produced gold, silver and copper until 2001.
The overall bulk sample feed grade was 261 grams per tonne silver and .9 grams per tonne gold. The silver and gold recoveries were 76% and 59% respectively, which produced 232 dry tonnes of flotation concentrate. 188 tonnes were sold for net revenues of US$1.83 million, resulting in a profit $1.2 million or $120 per tonne produced. The company is in discussions to sell the balance of 44 tonnes of concentrate that remains in inventory. Operating costs relating to the bulk sample program were US$567,000 or $7.62 per ounce silver equivalent. Included in these costs are development mining costs for the raises and stopes.
Avino' management were pleased with these positive results, which demonstrated the viability of the San Gonzalo Project.
The company is now proceeding with its mine plan to develop the 3rd, 4th and 5th levels and to provide mill feed at the rate of 250 tonnes per day on a sustained basis. On the basis of previous drill results and metallurigical testing, the company anticipates that recovery rates and metal grades will be higher than at the surface where the bulk sample material was more oxidized.
The company is looking into other available opportunities to further optimize the project, such as increasing the daily throughput, improving recoveries, and reducing operating costs. The company continues to acquire and refurbish its mining equipment which is resulting in an efficient mining process. Significant recent mining equipment acquisitions and refurbishments include a loader, dozer, and a 5 yard scoop and the refurbishing of a single boom jumbo respectively. The company is also in the process of acquiring an underground air compressor diamond drill and constructing a 2 kilometre power line to provide for efficient grid power to the San Gonzalo Mine.
The silver produced represents 90% of the total precious metal recovered, making Avino one of the purest silver producers in the industry.
For more information, please visit Avino's website at www.avino.com (http://www.avino.com/), phone 604-682-3701 or email ir@avino.com
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan@investmentpitch.com
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
