Avino Silver tables Mexican production forecasts
Avino Silver & Gold Mines Ltd. [ASM-TSX] has released production targets for its two Mexican mines, the Avino operation near Durango and the adjacent La Preciosa property.
Based on current metal prices, the company anticipates producing between 2.5 million and 2.8 million silver equivalent ounces this year. That compares to 2.65 million silver equivalent ounces in 2024, which marked a 10% increase from 2023. This was despite an unscheduled production stoppage in June 2024, following the breakdown of the company’s primary crusher. If this stoppage had not occurred, production would have been closer to 2.8 million ounces, the company said.
For 2025, the company plans to process approximately 700,000 to 750,000 tonnes of material through the mill, sourced from both the Avino mine and La Preciosa. During the first half of the year, material will primarily come from the Avino mine, with processing of material from La Preciosa expected to arrive at the mill in the second half of the year.
“As we begin 2025, we are thrilled to continue developing on our growth plan by bringing La Preciosa into production,’’ said Avino President and CEO David Wolfin. Avino reached a significant milestone by signing a long-term-use agreement with a local community for the developing of La Preciosa, which served as a catalyst for further progress.
Avino had approximately $26 million in cash at the end of 2024 and remains debt free.
Avino shares advanced on the news, rising 1.05% or $0.02 to $1.92. The shares trade in a 52-week range of $2.15 and 59 cents.
In February, 2024, the company reported results of an oxide tailings project preliminary feasibility study (PFS) for its Avino mine operation.
The oxide tailings deposit consists of historic recovery plant residue material deposited during an 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.
The PFS for the oxide project envisages dore production of just over 9.07 million ounces of silver and 76,000 ounces of gold over the life of the project, including an average of just over 1.0 million ounces of silver and 8,445 ounces of gold annually.
The nominal processing rate over a 9.0-year lifespan is expected to be 2,2250 tonnes per day or 821,250 tonnes per year, with a 92% plant availability.
The initial capital cost is pegged at US$49.1 million, including a complete-on-site tailings leaching plant for silver and gold extraction and a contingency provision of US$5.3 million.
On site operating costs and all-in-sustaining costs (AISC) are estimated at US$9.71 and US$10.23 per ounce of silver equivalent respectively.
The PFS is based on proven and probable reserves of 6.70 million tonnes at a silver and gold grade of 55 g/t and 0.47 g/t respectively.