Overview:
Avino Silver & Gold Mines Ltd. (CVE: ASM) is an experienced resource development company that was incorporated in 1968, and is focused on silver and gold exploration and production. The Companys main property is the Avino Mine in Durango Mexico, which it previously operated from 1974 to 2001. The Company is working to resume mining on the property in the early part of 2011.
Avino also owns three silver and gold projects in British Columbia and one in the Yukon. All of the Companys properties are 100%-owned, with the exception of the Avino Mine, which is 99.28%-owned. In December 2010, Avino in partnership with Sprott Asset Management and Sprott Private Wealth Management announced and closed two private placements totaling $8.1M.
What We Like About Avino:
- Very near term silver producer
- Aggressively exploring
- Value, low market cap and relatively few shares outstanding
- Qualified team with 30+ years experience operating the mine
- Recently completed two financings with Sprott associates
Chief Properties:
Avino Silver and Gold Mine Mexico
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The Avino Mine, located in the Durango Region of Mexico, was operated by Avino between 1974 and 2001. During that period more than 16M oz of silver, 96,000 oz of gold and 24M lbs of copper were produced through both open pit and underground mining. Due to low silver prices ($4 per ounce) and the closure of a key smelter, the mine shut down in 2001. With the recent rise in metals prices, Avino is working to start mining again as soon as possible.
Avinos current focus is the San Gonzalo Zone which is located 2km from the original mine and beneath a shallow mine from centuries ago. After considerable development over the last few years, a 10,000 tonne bulk sample is currently underway with production expected to follow. The bulk sample will confirm grades and recoveries from a 2008 NI 43-101 resource calculation for San Gonzalo which estimated that the currently explored portion of the zone contains 4.75M oz of silver and 37,300 oz of gold in 444,250 tonnes grading 332 g/t silver, 2.61 g/t gold, with silver recoveries greater than 90%. To date, much of the San Gonazlo zone remains under or unexplored and is not included in the resource estimate.
Along with the development of the San Gonzalo zone, Avino has also modernized its 1250 tpd mill which now has a seperate 250 tpd circuit to accommodate the high-grade San Gonzalo ore. Throughout the second half of 2010, Avino fine-tuned its facility using stock piled ore left from previous operations. Avino had sold three shipments of the concentrate to MRI Trading AG by year end. Avinos milling projections for the San Gonzalo ore, roughly 85,000 tonnes annually (the capacity for mills current configuration), translate into an annual net revenue close to $15 million or $0.57 annual revenue per share based on $1200/oz gold and $25/oz silver.
Avino is also exploring other high potential targets on the property with plans provide the mill with enough ore to run at full capacity. The company has conducted more than 80 km of Induced Polarization (IP) geophysics, taken over 1,500 soil samples and used satellite imagery identify new targets. In 2011 Avino plans to drill over 7,000 meters through 250 holes to both expand the San Gonzalo zone and explore other high potential zones on the 3,215 acre property.
The property also contains an NI 43-101 compliant oxide and sulphide tailings resource that contains close to 10 million oz of silver and 70 thousand oz of gold grading 95.5 g/t silver and 0.53 g/t gold, with recoveries of 73% for silver and 79% for gold in the oxide tailings. The company is considering options to conduct a heap leach operation that would provide an estimated net revenue of $31.4 million based on $8/oz silver and $500/oz gold; with current metals prices, the net revenue would likely be much higher.
Eagle Property Yukon Territory
The Avino Mine, located in the Durango Region of Mexico, was operated by Avino between 1974 and 2001. During that period more than 16M oz of silver, 96,000 oz of gold and 24M lbs of copper were produced through both open pit and underground mining. Due to low silver prices ($4 per ounce) and the closure of a key smelter, the mine shut down in 2001. With the recent rise in metals prices, Avino is working to start mining again as soon as possible.
Avinos current focus is the San Gonzalo Zone which is located 2km from the original mine and beneath a shallow mine from centuries ago. After considerable development over the last few years, a 10,000 tonne bulk sample is currently underway with production expected to follow. The bulk sample will confirm grades and recoveries from a 2008 NI 43-101 resource calculation for San Gonzalo which estimated that the currently explored portion of the zone contains 4.75M oz of silver and 37,300 oz of gold in 444,250 tonnes grading 332 g/t silver, 2.61 g/t gold, with silver recoveries greater than 90%. To date, much of the San Gonazlo zone remains under or unexplored and is not included in the resource estimate.
Along with the development of the San Gonzalo zone, Avino has also modernized its 1250 tpd mill which now has a seperate 250 tpd circuit to accommodate the high-grade San Gonzalo ore. Throughout the second half of 2010, Avino fine-tuned its facility using stock piled ore left from previous operations. Avino had sold three shipments of the concentrate to MRI Trading AG by year end. Avinos milling projections for the San Gonzalo ore, roughly 85,000 tonnes annually (the capacity for mills current configuration), translate into an annual net revenue close to $15 million or $0.57 annual revenue per share based on $1200/oz gold and $25/oz silver.
Avino is also exploring other high potential targets on the property with plans provide the mill with enough ore to run at full capacity. The company has conducted more than 80 km of Induced Polarization (IP) geophysics, taken over 1,500 soil samples and used satellite imagery identify new targets. In 2011 Avino plans to drill over 7,000 meters through 250 holes to both expand the San Gonzalo zone and explore other high potential zones on the 3,215 acre property.
The property also contains an NI 43-101 compliant oxide and sulphide tailings resource that contains close to 10 million oz of silver and 70 thousand oz of gold grading 95.5 g/t silver and 0.53 g/t gold, with recoveries of 73% for silver and 79% for gold in the oxide tailings. The company is considering options to conduct a heap leach operation that would provide an estimated net revenue of $31.4 million based on $8/oz silver and $500/oz gold; with current metals prices, the net revenue would likely be much higher.
Minto/Aumax/Olympic Properties British Columbia, Canada
Avinos assets include four prospects for silver, gold and zinc in the Historic Bralorne Mining district in South-West British Columbia. The Bralorne Mining region is the largest historic gold producer in the Canadian Cordillera having produced more than 4.1 million ounces of gold and is similar to the well-known Timmins, Kirkland Lake, Red Lake, Yellowknife, Motherlode and Kalgoorlie districts. High grade gold and silver assays have been produced through sampling and drilling over the past decade. Avino is currently evaluating all of its Canadian projects for further development.
Management
David Wolfin, President and CEO
Mr. Wolfin brings 24 years experience in mining and finance to Avinos team. He learned the business from the ground up, starting as a geologists assistant in Nevada, a metallurgists assistant at the Avino mine in Mexico and later in a number of mining and exploration-related capacities. In the late 1980s, Mr. Wolfin worked on the floor of the Vancouver Stock Exchange and also for several brokerage houses, gaining a solid foundation in the finance side of the industry. Mr. Wolfin studied Business and Geology at Colorado State University. Since 1990, Mr. Wolfin has worked for the Resource Group of companies, including Avino Silver & Gold Mines Ltd. (President & Director), Bralorne Gold Mines Ltd. (Vice-President Finance & Director), Coral Gold Resources Ltd. (President & Director), Levon Resources Ltd. (Director), Berkley Resources Inc. (Director), Mill Bay Ventures Inc. (Director), Cresval Capital Corp. (Director) and Gray Rock Resources Ltd. (Director). In his various roles with these firms, he has helped raise over C$60 million.
Jasman Yee (P.Eng), Director
Mr. Yee, BASc, P.Eng (BC) recently joined the board and is a 1970 graduate of the University of British Columbia with a degree in chemical engineering, economics from Torontos Ryerson Polytechnical Institute. He has over 35 years of operational, managerial, engineering and consulting experience in the processing of precious and complex polymetallic base metals ores within North America and abroad.
Mr. Yee is currently the managing director of his own consulting firm and has held senior positions with H A. Simons, Bateman Engineering and Bacon Donaldson & Associates. He has commissioned and started up mines for Falconbridge Copper in Ontario, Canada Wide in Gays River, Nova Scotia, Erickson Gold Mines in Cassiar, BC and the autoclave restart for the Con Mine in Yellowknife, NWT. In addition, he has provided operational assistance and guidance at the Campbell Mine during their switchover from roasting to autoclaving for their gold flotation concentrates.
Chris Sampson (P.Geo), Consultant
Mr. Sampson is a Professional Geologist who, in his 30+ years in the mining industry, has worked on hundreds of mineral projects worldwide.
Lisa Sharp, CFO
Lisa Sharp is a Certified General Accountant with over 15 years of senior management experience working with both private and public companies in a variety of industries. Ms. Sharps experience encompasses financial and regulatory compliance, private placement financings and U.S. Filings. Most recently Ms. Sharp has been the Chief Financial Officer of a technology company listed on the TSX Venture Exchange.
Michael Baybak, Director
Mr. Baybak has been in public relations for more than 25 years and specializes in financial and market development activities.
Gary Robertson, Director
Mr. Robertson is a Certified Financial Planner. He has worked in the financial industry for the past twenty years, and presently serves on the board of several private companies as well as on the board of 5 Canadian junior gold mining companies, including Bralorne Gold Mines Ltd., Avino Silver & Gold Mines Ltd., Coral Gold Resources Ltd., Mill Bay Ventures Inc. and Sage Gold Inc.
