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Preliminary Economic Assessment - Oxide Tailings Resource
In July 2012, the Company filed an independent updated technical report on the Avino property focused on the oxide tailings resource. The report outlined a 1,370 tpd cyanide heap leach operation using two metal price scenarios. Details of a preliminary economic assessment are outlined below:
Metal Production
---------------------------------------------------Total Tonnes to Mill 2,340,000---------------------------------------------------Annual Tonnes to Mill 500,000---------------------------------------------------Mine Life 5 years---------------------------------------------------Average Silver Grade (g/t) 91.30 g/t---------------------------------------------------Average Gold Grade (g/t) 0.54 g/t---------------------------------------------------Total Silver Production (oz) 4,814,000---------------------------------------------------Total Gold Production (oz) 31,000---------------------------------------------------Average Annual Silver Production (oz) 1,028,860---------------------------------------------------Average Annual Gold Production (oz) 6,580---------------------------------------------------
Economics
---------------------------------------------------------------------------- Base Case Spot Price Case----------------------------------------------------------------------------Gold Value (US$) $ 1,256 $ 1,622----------------------------------------------------------------------------Silver Value (US$) $ 20.38 $ 28.36----------------------------------------------------------------------------IRR 54.4% 92%----------------------------------------------------------------------------Payback period 1.6 years 1.1 years----------------------------------------------------------------------------NPV (US$'000) 8% discount rate $ 38,647 $ 74,186----------------------------------------------------------------------------
A preliminary economic assessment should not be considered a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The above preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to apply economic considerations that would allow for categorization as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Data disclosed in July 25th, 2012 technical report by Tetra Tech: A Technical Report on the Avino Property. Michael O'Brian, M.Sc., Pr.Sci.Nat, FGSSA, FAusIIM, FSAIIM, Hassan Ghaffari, P.Eng., Jacques Ouellet, P.Eng., Ph.D., Monica Danon-Schaffer, Ph.D, P.Eng., Sabry Abdel Hafex, Ph.D., P.Eng and Wayne Stoyko, P.Eng., are the Qualified Persons, as defined under National Instrument 43-101, who supervised and are responsible for the Techncial Report on the Avino Property.
Management/Personnel
