TORONTO (miningweekly.com) – Precious metals producer Avino Silver & Gold Mines has reported a 148% increase in its consolidated silver-equivalent output, as its Avino mine, in Mexico, gathers momentum.
Silver-equivalent output during the third quarter ended September 30 rose to 770 004 oz, calculated using metal prices of $16/oz of silver, $1 150/oz of gold and $3/lb of copper.
Quarter-on-quarter silver output rose 84% to 399 836 oz and gold output increased by 49% to 1 644 oz. Copper output was up 9% to 1.34-million pounds over the second quarter’s output of 1.24-million pounds.
“We delivered strong operating results and are well positioned to meet management's production expectations going forward. Refinements in the mill are under way to reduce deleterious minerals and improve payables, exploration drilling has started at the San Gonzalo mine and deliveries to Samsung are under way. We have positioned the company for great success for the remainder of the year and years to come,” president and CEO David Wolfin stated.
Avino achieved a 12% increase in tonnes mined during the quarter, as well as a 27% increase in underground development metres. The improvements could be attributed to more mining equipment bought during the year.
Tonnage processed during the quarter rose by 12% to 106 589 t, owing to Avino using Circuit 2 to process Avino material in addition to Circuit 3 during July and August.
The increased throughput resulted in 9% more concentrate being produced at 2 408 t, accounting for an added 21% silver, 9% copper and 2% gold.
Avino had late in September announced that it had started shipping concentrates produced from the Avino mine, near Durango, to Samsung Construction & Trading (C&T) UK, on schedule.
Under the terms of the $10-million concentrates prepayment agreement with Samsung that had closed in August, Avino used the prepayment to acquire mining equipment, improve the efficiency of its project developments for increased productivity, upgrade its tailings impoundment facilities and for general working capital requirements.
The prepayment agreement with Samsung covered the sale of concentrates produced from the Avino mine only and did not include concentrates produced from the nearby San Gonzalo mine. Under the prepayment agreement, Avino would ship 800 wet metric tons of concentrate a month over the next 24 months.
Samsung would pay for the concentrates at the prevailing metals prices for their silver, copper and gold content around the time of delivery, less treatment, refining, shipping and insurance charges. Interest would be charged on the prepayment amount owing to Samsung from time to time, at a rate of London interbank offered rate plus 4.75%, excluding a fee for Samsung's due diligence costs of $125 000.
The mill operated on three separate circuits processing feed from the San Gonzalo and Avino mines, as well as stockpiles left from past mining of the Avino vein.