Avino Silver & GOLD Mines Provides Update ON Its Avino Property
NYSE - MKT: ASM
TSX-V: ASM
May 8, 2017 FSE: GV6
AVINO SILVER & GOLD MINES PROVIDES UPDATE ON ITS AVINO PROPERTY
Avino Silver & Gold Mines Ltd. (ASM: TSX.V, ASM: NYSE – MKT, GV6: FSE, “Avino” or “the Company”)
announces the following updates from its Avino property in Durango, Mexico.
Avino is pleased to announce that the plans which were discussed in January, 2017 are progressing very
well. The updates below from its Avino and San Gonzalo Mines include the ongoing plant and mine
expansion to increase throughput capacity at the processing plant by approximately 70% , as well as the
advancement of the Oxide Tailings Resource project with the recently announced positive Preliminary
Economic Assessment. Additionally, an optimization review of our internal operating plan was carried
out which prompted discussions and studies on Tailings Storage Facility (“TSF”) alternatives. The
foregoing resulted in a recommendation to use tailings as backfill, which led to a temporary halt in
construction of the new TSF in order to gain a further understanding of this possible alternative.
"We are extremely pleased with the progress being made with respect to our 2017 plans . As I stated in
January, these significant plans will support the company’s growth efforts, further develop and maintain
a solid production profile going forward, and continue to create long-term shareholder value. I am very
proud of the dedication and efforts of o ur team at the Avino mine site who are working very hard to
ensure the planned work is progressing on schedule."
David Wolfin – President & CEO Avino Silver & Gold Mines Ltd.
Plant and Mine Expansion Updates
Mill Expansion – Circuit #4
The addition of Circuit #4 which will have an identical throughput capacity as Circuit #3, with the same
size ball mill, flotation cells, concentrate thickener and filter press, is on schedule and on budget.
The civil work for the ball mill foundation, feed conveyor and the reclaim tunnel has commenced and
the forming and rebar work has started with the ball mill pedestals. The pad for the flotation cells, as
well as the thickener foundations, has been poured. In addition, the electrical substation has been
installed and wiring of the electrical components is well underway. Please click on the attached link
http://www.avino.com/s/photos.asp?ReportID=789007 to view photos showing 1) the rebar of the ball mill
pedestals, 2) the thickener foundations, and 3) the pad for the flotation cells.
The company acquired a previously used ball mill in excellent condition which has arrived on site and is
currently being prepped for installation. The company has also ordered the long lead items which
included new flotation cells, thickener and filter press ; accordingly, the delivery dates will dictate the
completion schedule. The ball mill bearing surfaces are currently being cleaned and prepared for
installation once the mill foundations have been poured.
The existing crushing plant will be upgraded to accommodate the higher throughput with a new larger
Sandvik tertiary cone crusher, which has been ordered.
The company has obtained the services of a local Durango company to fabricate the structural steel
components and conveyors that will be shipped to the site in accordance with the construction
schedule.
AVINO SILVER &
GOLD MINES LTD.
T 604.682.3701 Suite 900, 570 Granville Street [email protected]
F 604.682.3600 Vancouver, BC V6C 3P1 www.avino.com
Avino Silver & Gold Mines Ltd. – News Release – May 8, 2017
Avino Silver & Gold Mines Provides Update On Its Avino Property
Page 2
The Initial mill feed for Circuit #4 will come from existing surface stock piles while the mine is being
developed in the gap zone between San Luis and Elena Tolosa.
The only additional mine equipment that will be required for the above mentioned development will be
a new jumbo drill and a scooptram, which are currently on order.
Oxide Tailings Preliminary Economic Assessment (PEA)
The company announced a positive PEA of re -treating the Avino mine tailings on April 11, 2017, which
included the results from the Company's recent 2016 Resource Estimate (see news release dated
September 26, 2016) for the Avino property which included the San Gonzalo Mine, the main Avino Mine
system, and the property's Oxide Tailings. The full news release announcing the PEA is on our website at
the following link: (click here to view http://www.avino.com/s/news.asp?ReportID=785546, and the full
report will be filed on SEDAR and with the U.S. Securities Commission on or before May 26, 2017.
Alternative Tailings Disposal
Management retained the services of SRK Consulting (Canada) Inc. a nd MPL Mine Paste Ltd. to review
the mine operating plan and alternatives for tailings disposal. Additionally, an optimization review of
our internal operating plan was carried out resulting in discussions on alternatives to conventional
tailings storage and a recommendation to use tailings as backfill. Their recommendation is contingent on
a revised internal operating plan, which is underway and is based on using the thickened tails as backfill
for ground support underground for the mined out stopes , and tailings disposal into the existing open
pit as preferred alternatives to the conventional tailings storage facility (TSF). A revised internal
operating plan will b e submitted for our consideration; however, in the meantime management felt it
prudent to temporarily halt construction of the new TSF to further understand this possible new route,
and if the plan is agreed to by the company, a follow up site visit will be planned to implement it.
The advantages to this alternative method of tailings disposal include limited ground disturbance, a
reduced footprint on surface from future mining, increased tailings storage capacity, minimal
permitting, minimization of social, and community issues, and lower estimated capital expenditures.
Drilling and Exploration Update
The current infill drill program of 3,000 metres and 18 holes in the gap zone between San Luis and Elena
Tolosa has recently been expanded to include a further 20 holes as announced in our news release
dated April 25 , 2017, which can be viewed on our website at the following link
http://www.avino.com/s/news.asp?ReportID=787740.
The company has retained Michael O’Brien P.Geo., Pr.Sci.Nat., who is an employee of QG Australia Pty
Ltd (an ARANZ Geo Company) , and independent of Avino, to update the category of th e resource in the
gap zone with results of this drilling, as well as to verify the size of the new high grade mineralized zone
on Level 4 to the west on San Gonzalo and the results to the west of San Luis, as well as to
independently verify the size of the new zones.
The new high grade zone on Level 4 at San Gonzalo has been extensively sampled and those samples
have been sent to an independent lab for verification.
Furthermore, a new core storage facility has been erected on site and is being stocked.
Bismuth Removal Testwork
The company has planned a small scale pilot project to test the reduction or removal of bismuth content
from the Elena Tolosa concentrate. The process consists of a roasting step followed by leaching of the
calcines to remove the Bismuth. Bismuth content can accrue steep penalties at the smelter and removal
of it can result in significant revenue gains if successful.
Avino Silver & Gold Mines Ltd. – News Release – May 8, 2017
Avino Silver & Gold Mines Provides Update On Its Avino Property
Page 3
Zinc Circuit
Testing of the zinc circuit has been ongoing in an effort to improve the San Gonzalo gold and silver
recoveries. To date the results of the testing have been varied due to fluctuating zinc feed grades,
therefore, more work will be done to establish a marketable product.
Qualified Person(s)
Avino's Mexico projects are under the supervision of Chris Sampson, P.Eng, Avino Consultant and
Jasman Yee P.Eng, Avino Director, who are both qualified persons within the context of National
Instrument 43-101. Both have reviewed and approved this news release.
About Avino
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in
Mexico and Canada employing approximately 500 people. Avino produces from its wholly owned Avino
and San Gonzalo Mines near Durango, Mexico, and is currently planning for future production at the
Bralorne Gold Mine in British Columbia, Canada. The Company’s gold and silver production remains
unhedged. The Company’s mission and strategy is to create shareholder value through its focus on
profitable organic growth at the historic Avino Property near Durango, Mexico, and the strategic
acquisition of mineral exploration and mining properties. We are committed to managing all business
activities in an environmentally responsible and cost -effective manner, while contributing to the well -
being of the communities in which we operate.
ON BEHALF OF THE BOARD
“David Wolfin”
________________________________
David Wolfin
President & CEO
Avino Silver & Gold Mines Ltd.
Safe Harbor Statement - This news release contains "forward -looking information" and "forward -looking statements" (together, the "forward looking statements")
within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, incl uding our belief as to the extent and
timing of various studies, and exploration results, the potential tonnage, grades and content of deposits, timing and establi shment and extent of resource estimates.
These forward-looking statements are made as of the d ate of this news release and the dates of technical reports, as applicable. Readers are cautioned not to place
undue reliance on forward -looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or i mplied by such
forward-looking statements will occur or that plans, intentions or expectations upon which the forward -looking statements are based will occur. While we have
based these forward -looking statements on our expectations about future events as a t the date that such statements were prepared, the statements are not a
guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which cou ld cause events or outcomes to differ
materially from those expressed or implied by such forward-looking statements.
Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign exchange
rates and actions by government autho rities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing
forward-looking information. In addition, there are known and unknown risk factors which could cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements expressed or implied by the forward -looking statements. Known risk factors include risks
associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal
prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key
personnel; the potential for conflicts of interest among certain of our officers, directors or promoters with certain other projects; the abse nce of dividends; currency
fluctuations; competition; dilution; the volatility of the our common share price and volume; tax conseq uences to U.S. investors; and other risks and uncertainties.
Although we have attempted to identify important factors that could cause actual actions, events or results to differ materia lly from those described in forward -
looking statements, there may be o ther factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward -looking statements. We are under no obligation to update or alter any forward -looking statements
except as required under applicable securities laws.
Avino Silver & Gold Mines Ltd. – News Release – May 8, 2017
Avino Silver & Gold Mines Provides Update On Its Avino Property
Page 4
Cautionary Note to United States Investors - The information contained herein and incorporated by reference herein has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the requirements of United States securities laws . In particular, the term "resource" does not equate to
the term "reserve". The Securities Exchange Commission's (the "SEC") disclosure standards normally do not permit the inclusio n of information concerning
"measured mineral resources", "indicated minera l resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral
deposits that do not constitute "reserves" by SEC standards, unless such information is required to be disclosed by the law o f the Company's juris diction of
incorporation or of a jurisdiction in which its securities are traded. U.S. investors should also understand that "inferred m ineral resources" have a great amount of
uncertainty as to their existence and great uncertainty as to their economic an d legal feasibility. Disclosure of "contained ounces" is permitted disclosure under
Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reser ves" by SEC standards as in place
tonnage and grade without reference to unit measures.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture Exchange) accepts responsibility for
the adequacy or accuracy of this release.