Issue link: http://resourceworld.uberflip.com/i/937377
F E B R U A R Y / M A R C H 2 0 1 8 www.resourceworld.com 65 unsupported areas. The sublevel, longhole retreat mining was originally designed for large orebodies however, over time, it has also been used for narrower vein deposits including narrow gold-bearing veins. The proposed new mine plan is designed for complete mechanization to replace the small track development in the old mines. This will include a new tunnel at the 800 level and ramp system to access all the veins which will be large enough for 30 to 40-ton trucks to haul ore and waste. Near the ore and the development in the ore Avino will use smaller mecha- nized equipment to minimize the dilution in the narrow veins. With sufficient resources for three or four years, expected initial production will be at 100 tpd ramping up to an expected 400 tpd. An 8,000-metre surface drilling program is now underway to define more resources and build more confidence in the known resources contained in nine gold- bearing veins. The drilling is designed to delineate additional resources above the 800 level near previously reported gold resources. Some 50 to 60 veins are already known to exist in the mineralized system and there is no geological reason why there wouldn't be ore between the three past-producing mines, along strike and to depth. Underground operations at the King, Bralorne and Pioneer mines stopped in ore before reaching their claim boundar- ies and leaving unexplored gaps between the mines. Sveinson pointed out that there hasn't been much surface exploration on the Bralorne claim package, partly due to the extensive overburden. Acknowledging the extensive gold-bearing vein system in the area, Avino has also acquired another big land package called the BRX claims that are contiguous to its holdings that will be explored in due time. Avino has made other improvements at Bralorne such as raising the tailings dam by 2.4 metres and building a new water treatment plant. Bralorne is currently permitted for a 100 tpd operation that will eventually be amended for a larger operation. The old ore and waste bins have been demolished and all older equipment related to a 100 tpd operation has been removed. Initial engineering for a larger mill has been completed and could be operating within an eight-month construc- tion period "Currently our focus is on the drilling and once that has been completed and the confidence level in the resource is confirmed, we will consider the options to bring the mine into production," said Sveinson. "If the mine operates at 100 tpd, we are looking at 60 to 70 employees and if the anticipated expansion takes place we would require double that." Regarding First Nations relations, the company in conjunction with North Island College and the BC government, has completed two educational programs to provide basic mining training to 24 members of the St'at'imc First Nation in Lillooet. A third training program is now underway. Malcolm Davidson, Avino CFO, said the company has been building a good working relationship with local First Nations. Discussions have included mine closure, a reclamation plan, water quality and regional economic develop- ment. Avino has had its reclamation plan accepted by the BC Ministry of Energy and Mines. Avino has also signed a non-binding Letter of Intent with St'at'imc Eco- Resources Ltd. that recognizes the opportunity for collaboration and cre- ation of joint ventures to provide the opportunity for the First Nation band to participate in the development and ongo- ing operations of the Bralorne gold mine project with its own company. Notably, Avino Silver & Gold has been in business for 50 years. For 2016, the company's two mines in Durango State, Mexico – the Gonzalo and Avino – pro- duced 2,679,334 silver equivalent ounces (silver, gold, copper). The company, which employs about 500 people, has 52,700,000 shares outstanding. n