Avino hits bonanza silver at La Preciosa in Mexico

[Redator]

Avino Silver & Gold Mines (TSX, NYSE-A: ASM) reported exceptionally rich-grade twin-hole assays from the La Gloria and Abundancia veins at its La Preciosa project in Durango, Mexico.

The best intercept was from hole PMLP-25-03, beginning at 106.4 metres downhole, Avino said Monday. It cut 7.9 metres true width, grading 1,638 grams silver per tonne and 1.92 grams gold. This included 0.37 metre at 15,352 grams silver. A second hole, PMLP-25-04, returned 6.42 metres true width grading 544 grams silver and 0.46 gram gold from 183.83 metres, including 0.66 metre at 1,739 grams silver.

“The intercept grades are significantly higher than the average grades outlined in our current resource,” President and CEO David Wolfin said in a news release.

The results boost company plans to source near-term underground feed as it advances the 360‑metre San Fernando decline ramp towards the Gloria and Abundancia structures. The four-hole program for 1,100 metres twinned historical drilling to validate vein geometry and grades, Avino said. The company’s balance sheet has strengthened this year on higher throughput and lower unit costs, giving it room to advance the project while drilling.

More drilling

The team plans drilling more step-out holes on the La Gloria vein and will fold the results into the mine model as ramp development continues.

Despite the strong exploration results and 12-month growth of 278%, Avino’s Toronto-traded shares were at C$5.29, down C$0.11 or 2% apiece on Monday afternoon. It has a market capitalization of C$755.3 million.

Avino finalized the acquisition of the property from Coeur Mining (NYSE: CDE) in March 2022 and has since been working on bringing La Preciosa into production to feed into the Avino mill19 km away. The project offers a potential low‑capital path to add silver‑rich feed.

Avino gets community ok to develop La Preciosa

Coeur completed a feasibility study on La Preciosa in 2014, but that open-pit plan doesn’t represent Avino’s current development concept. The company has a plan to grow from one to three producing assets by the end of the decade.

As part of the most recent drill program, four HQ (about 63.5 mm- or 2.5 inch-diameter) core holes intersected La Gloria (all four holes), Abundancia (three holes) and several unnamed veins, the company reported.

Resource base

La Preciosa hosts a 2023 indicated resource of 17.4 million tonnes grading 176 grams silver per tonne and 0.34 gram gold per tonne for a silver-equivalent grade of 202 grams per tonne. The deposit holds 99 million oz. silver and 189,000 oz. gold, or 24 million silver-equivalent ounces.

It holds another 4.4 million tonnes inferred at 151 grams silver and 0.25 gram gold for 170 grams per tonne silver-equivalent, for 21 million oz. silver and 35,000 oz. gold, or 24 million oz. silver-equivalent.

Including the Avino mine and its planned oxide leach expansion, the company has global measured and indicated resources of 53.1 million tonnes grading 100 grams silver per tonne and 0.47 gram gold per tonne (162 grams per tonne silver-equivalent) for 171 million oz. silver and 799 million oz. gold, or 277 million oz. silver-equivalent.