Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.
Method of Mineral Resource Calculation
The Avino system and San Gonzalo system mineral resources were modelled and estimated using Datamine software version 3.20.6140.0. The reported mineral resource was interpolated using ordinary kriging (OK) and capped grades. Avino mineralization included the interpolation of silver, gold and copper, while San Gonzalo mineralization included the interpolation of silver and gold. Where sufficient data was available, specific gravity (SG) was estimated using OK, otherwise the average estimated value was assigned.
Reported cut-offs utilize a silver equivalent (Ag_Eq) calculation where the total metal value is converted into an in situ silver resource. For reporting purposes, a base-case Ag_Eq cut-off of 100 g/t is used for the Avino system and an Ag_Eq cut-off of 150 g/t is used for the San Gonzalo system. Current cut-offs used for financial projections by Avino, based on recent market prices, include 80 g/t for the Avino system and 120 g/t for the San Gonzalo system.
To calculate the above silver equivalent grades, Avino has assumed a price of silver of US $20 per oz., a price of copper of US $3.66 per lb. with a recovery rate of 85% for copper, and a price of gold of US $1,507 per oz., with 75% recovery rate for gold at the Avino Mine and 70% recovery rate for gold at the San Gonzalo Mine.
The oxide tailings mineral resource was estimated using Geovariance Isatis software and OK interpolation with uncapped grades. The assay values for this estimate are based on 28 drill holes which were completed on the tailings by CMMA in 1990, and include 407.75 m of drilling and 383 assays of both gold and silver. A specific gravity of 1.605 was used based on the global average for the oxide tailings reported by Slim (2005d). For reporting purposes, a silver cut-off of 50 g/t was used; an Ag Eq value was not calculated for the oxide tailings. This mineral resource was estimated by Mr. Mike O'Brien, and has an effective date of July 24, 2012. It was originally disclosed by Tetra Tech (2012), but is considered current.
Improving Exploration Abilities
Avino recently purchased Gemcom 3D software and plans to import the new digital database compiled by Tetra Tech during the resource calculation process. This new software will allow Avino's 4 geologists to compile significant raw data---including 80 Kilometres of IP (Induced Polarization) Geophysics, 1,500 soil samples, topography, drill hole data and satellite imagery collected between 2006 and 2008 before the Company's priority shifted to San Gonzalo Mine development and mill refurbishment. Using this technology, management anticipates finding new significant drill targets. The Company owns two drill rigs (one surface and one underground) and has the capability to drill these new targets as well as existing targets once the 3D model is completed.
Most Popular Stories
- Adam Levine Wins Big as 'The Voice' Crowns Champ
- 'Beyonce' Tops the U.S. Album Chart
- Archer Daniels Midland Moving HQ to Chicago
- Target Security Breach May Affect 40 Million Cardholders
- Tyson Foods Charged With Civil Rights Violation
- Bernanke Lets Congress Have It in Final Press Conference
- Wall Street Falls a Day After Surge
- Existing Home Sales Drop for 3rd Month
- Demi Lovato Leaving 'X Factor' to Return to Music
- Jobless Claims Climb by 10,000 in Week