Avino posts attractive tailings PFS
Strong economics from conventional process
Avino Silver & Gold Mines has reported the prefeasibility study (PFS) results for the oxide tailings project at its Avino mine operations near Durango, Mexico, to produce 1Moz of silver and 8445ozpa of gold for nine years.
The project would yield an after-tax net present value of US$61 million at a 5% discount rate and an internal rate of return of 26%, with a 3.5-year payback following a $49.1 million initial cost.
The company has identified reserves of 6.7Mt grading 55gpt of silver and 0.47gpt of gold, which would be processed through a 2,250tpd operation.
The tailings reprocessing project is located within the existing Avino mine operations. It would use a conventional flowsheet, including a tank leach and secondary dry stack tailings management facility, to store dewatered tailings in a geotechnically stable impoundment.
"The completion of the PFS is a key milestone in Avino's path to transformational growth. The economics of our oxide tailings project combined with the relatively low capital requirements has the potential to significantly enhance the current Avino operation and grow cash flow," Avino Gold & Silver Mines chief executive David Wolfin said.
The Avino mine produced 926,643oz of silver in 2023, 7335oz of gold and 5.3Blb of copper, or 2.4Moz of silver equivalent, down on the 2.7Moz it produced in 2022, as it mined lower-grade areas and saw lower recovery rates. These factors have pushed its all-in sustaining costs above the US$20/oz level, higher than the $17.91/oz achieved in 2022.
Shares in Avino Gold & Silver Mines are trading at 64c, valuing the company at C$81 million.
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