On April 11, 2017, Avino announced that it had completed an updated Preliminary Economic Assessment (“PEA”) for re-treatment of the Avino mine tailings in Durango, Mexico, which includes 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 PEA was prepared in accordance with National Instrument 43-101, and a compliant Technical Report was completed by Tetra Tech Canada Inc. (“Tetra Tech”), and filed on SEDAR and with the U.S. Securities and Exchange Commission. All currency values below are presented in US$.
Highlights of the Oxide Tailings Preliminary Economic Assessment
- Significant pre-tax NPV8% of US$40.5 million
- Strong pre-tax IRR of 48.4%
- 2 year pay-back period
- Total capital expenditures of US$28.5 million
- 7 year mine life with LOM of 3.12 million tonnes of oxide tailings materials
The April 11 Technical Report can be viewed here.
The Oxide Tailings deposit comprises historic recovery plant residue material deposited during the earlier period of open pit mining of the Avino Vein, when there were poor process plant recoveries for silver and gold. The oxide tailings are partially covered by younger unconsolidated sulphide tailings on the northwest side of the property. For more information see Avino’s news release dated April 11, 2017.
The Company cautions that the PEA is preliminary in nature in that it is based on Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Avino’s projects are under the supervision of Jasman Yee P.Eng, Avino Director, who is a qualified person within the context of National Instrument 43-101.