Record gold and silver production is reported by Avino Mines & Resources (VSE) for the Avino mine near Durango in central Mexico. Silver production reached 873,000 oz. in 1989, a 56% increase over the previous year, while gold production totalled 3,900 oz., an increase of 69% over the previous year.
The Avino silver mine is owned and operated by Cia Minera Mexicana de Abino. Avino owns 49% of the operating company.
The company attributed the jump in production to investment in plant and equipment plus an improved water supply. In 1988 the Mexican operating company received a US$1.14-million loan from the Mexican Mining Promotion Commission for the upgrade and repair of the mine’s aging heavy equipment and milling facilities. Most importantly, the company rehabilitated a nearby water reservoir to solve its chronic shortage of water for milling purposes.
Another problem which seems to be behind the company is the Mexican government’s closed-door policy on foreign investment. In 1988, taxes on dividends paid to foreign companies were dropped from 50% to a less onerous 10%.
Mining on the property is by open pit at a rate expected to reach 300,000 tons per year in 1990. Despite a mining history dating back to the 16th century, reserves are estimated to exceed 30 million tons. Open pit reserves are currently estimated at five million tons grading 5.50 oz. silver per ton and 0.015 oz. gold.
Because of continuing discoveries, the open pit reserve has remained much the same since 1979. Other reserves on the property include two categories below the pit; the one termed “reasonably assured” measures 12.6 million tons grading 3.97 oz. silver per ton, plus preliminary estimates of a further 12.6 million tons grading 2.08 oz. silver.
There is also a large reserve of tailings on the property which, due to historic recoveries in the 57% range, is estimated to contain in excess of seven million ounces. Because of a lack of capital, however, the company has been unable to construct a recovery facility. Management is considering the development of the tailings reserve in 1990. Milling recoveries are running at about 62%.
Avino expects silver production to reach one million ounces in 1990. With one of the lowest operating costs in the industry at about US$3.50 per oz., the steady erosion of silver prices has yet to push the company into the red.
Avino has 8.27 million shares outstanding, working capital of $1.78 million and no debt.
Be the first to comment on "Avino production sharply higher"