Wednesday, October 13, 2010

Silver in Mexico: Avino starts bulk sampling program at San Gonzalo ASM.v, FVI.to, EPZ.v, KTN.v, KS.v, MGN, RVM.to, TNR.v, GRC.to, GBN.v, NGQ.to, SGC.v, AMM.to, GG, BVN, SSRI, SLW, SLV




   The best store of value is Gold and Silver - the best safe is the mother earth: question is how much do they have exactly and whether management finally has waken up with these silver prices. We have history on our side here: replacement value of the recently modified Mill is more than the market cap of all this junior Silver mining company.

  "Gold will be go much higher from here, it will not be the straight line, but every set back will provide an investment opportunity in Gold and Silver space. We will share with our thoughts and companies we like and you will be cautioned to make your own DD as usual.
  Next stage will be fight for the resources and M&A activity at all stages of investing in Gold mining cycle. With rising Gold price and inflated paper Majors will shop for juniors to buy time and gold in the ground. Jim Puplava will be a very good narrator to all our travel maps and reports about our journey. With rising gold, price price of physical gold will become even more prohibitive, we do agree with Jim that people will start to buy gold mining shares again with their easy to run discount brokerage accounts".
 
     "We know Avino Silver for years and we have only one problem with this company - their goal "Resume production as quickly as possible" is in the market for the last five years at least. So far progress was very slow at least. But it is a junior mining silver play, even with sleeping management silver will not be able to slip from the company's property. Question is how much do they actually have? In the beginning of Silver boom years ago they had some kind of a huge bogus number posted of historical resources, which have disappeared with more strict reporting. Now we think with resent silver prices everything with the word silver could fly and Avino Silver definitely has some goods. The most important is that its Mill could justify market value of the company alone. We are pleased to see, finally, good results from ongoing exploration program."

 




2010-10-13 08:13 ET - News Release

Mr. David Wolfin reports

AVINO STARTS BULK SAMPLE PROGRAM AT SAN GONZALO



Avino Silver & Gold Mines Ltd. has started its bulk sampling program at the San Gonzalo mine northeast of Durango, Mexico.



Avino's contractor DMG had been developing two raises to connect the lower level 2 (elevation, 2,260 metres) with the upper level 1 (elevation, 2,306 m). The first raise connected Oct. 6 allowing the start of stoping (cut and fill) for the bulk sample. Within four days an initial 731 tonnes had been produced from the block of ground (see map and section on Avino's website) which is estimated to contain approximately 11,000 tonnes.



The rock will be stockpiled for approximately six to eight weeks while the mill completes its present program of flotation concentration of the stockpiled ore from the ET zone of the main Avino vein. Milling operations commenced May 22, 2010, and to Sept. 30, Avino has milled approximately 18,000 tonnes of material to produce an estimated 400 tonnes of concentrate according to the daily mill reports and the on-site lab assays. Of the estimated production, 359 wet tonnes have been trucked to Manzanillo and sold to MRI Trading AG.



The mineral at San Gonzalo is silver, gold, lead and zinc; while ET on the main vein is silver, copper and gold. The rock from ET is harder than the San Gonzalo material and has numerous boulders necessitating additional breakage with a rock breaker ahead of the jaw crusher in the plant.



A planned two-week maintenance schedule has been planned prior to the switchover from stockpiled ET ore with the San Gonzalo material. Maintenance would include changes to all worn and torn conveyor belts and a complete relining of the eight-by-six ball mill.



We seek Safe Harbor."


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