Avino to acquire interest in Nevada silver mine

In order to earn a 50% interest in the mine project, Avino will make two $30,000(US) payments to a third party to satisfy an existing Belmont agreement. The deal also calls for Avino to upgrade the present mining and milling facilities, continue development drilling in 1989 (initially to total at least 10,000 ft), and complete leaching of ore currently on two pads at the mine site.

Avino also has a 49% interest in a producing silver mine near Durango, Mexico, which has been operated by its joint venture partner since 1979. This year the mine is expected to exceed last year’s production of about 470,000 oz of silver.

For the Wonder mine project, Avino expects to draw on the services of the technical group that successfully developed Coral Gold Corp.’s (VSE) Robertson heap leach gold mine now in operation near Battle Mountain, Nev. Lou Wolfin is president of both Avino and Coral Gold.

Belmont said engineering studies show inferred reserves at the Wonder mine total 11.0 million tons grading between 1.0 and 2.5 oz silver per ton and 0.01 5 oz gold per ton. Gross metal production from the mine in fiscal 1987 (Feb. 1 to Jan. 31) totalled $555,000(US), and $417,000(US) for the period Feb. 1 to Sept. 30, 1988.

Belmont will not have to make cash contributions to the venture during the earn-in period, but at its completion the two companies will share equally in cash contributions and project expenditures. Avino is to receive 80% of mine proceeds until it has recovered its entire investment made in the project during the earn-in period. Thereafter, proceeds will be distributed on a 50/50 basis.

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