Avino Silver
By: David N. Vaughn, Gold Letter, Inc.
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Silver stocks remain hot & it continues to be our goal to find silver companies with potential that have not yet climbed to the sky.
Avino Silver presently represents an exceptional silver play that has had significant production in the past & represents excellent further exploration potential.
Avino Silver (ASM.V)
Avino Silver & Gold Mines Ltd. was formed in 1968 with the mandate of exploring for precious metals in Canada, the United States and Mexico.
Since 1969, the Company has owned 49% of Cia Minera Mexicana de Avino, owner and operator of the Avino silver, gold and copper mine located near Durango in central Mexico.
The mine operated continuously for 28 years before low metals prices forced a temporary closure in 2001.
http://www.avino.com/profile.html
So the mine closed because of low precious metals prices & right before gold started its move. But is there still silver in the ground?
Coneto mine
In late 1996, Cia Minera Mexicana de Avino acquired the 1500 hectare Coneto silver and gold project. This historic site is located 100 kilometers northwest of the Avino mine in Durango State, Mexico
The Coneto mine has a history of high grade production dating back over 400 years. Recent surveys suggest over 90% of the area's potential has yet to be identified. Broad estimates of the mineral resource in 17 veins indicate a number of excellent targets to be explored further.
More than 20 kilometers of vein systems have been uncovered at Coneto, but a preliminary survey suggests that less than 10% of the area's potential has been identified. Grades amongst four principal veins range between 4.95 and 8.8 ounces of silver per ton, with gold grades averaging approximately .06 ounces per ton. http://playstocks.net/May22asm.htm
The company has a 300 ton per day plant & is ready to begin production.
I think it is a good idea to remind ourselves to look at management. Avino is run by real miners who have been about the business of gold & silver mining for many years.
The President of Avino is Lou Wolfin, whose experience in mining goes back to the 1950's. In the past 30 years, he has concluded many successful mining deals and partnerships… He always focuses on practical, attainable, mining goals and is very cautious of anything that would be dilutive to shareholders. This is easily seen in the fact that Avino after all these years has just 4.5 million shares out. http://playstocks.net/May22asm.htm
And what are Avino Silver’s present goals?
“Our key goals now is to bring the Coneto silver & gold mine to production. This is a very attractive asset with exceptional exploration potential for mining of silver, gold & fluorite,” Lou Wolfin.
The Coneto mine has a history of high grade production dating back over 400 years. … Broad estimates of the mineral resource in 17 veins indicate a number of excellent targets that will be explored further. We are currently examining the extent of the resource and the facilities needed to bring the project to production. http://www.avino.com/company/message97.html
David Wolfin, CEO, Avino Silver, 9-19-2003:
Let look at the potential of the Avino Mine.
Studies show a very large potential & further exploration is planned.
Also, keep in mind we have progressed from an open pit mining operation to underground mining in the early 1990's & our recovery rate improved from 55% recovery to 87%. The tailings pond has between 6-8 million ounces of silver contained within it & studies to process are being made.
Let's look at Silver Standard, Pan American Silver & Apex Silver Mines.
Silver Standard has "Zero" production and is trading $10.46 CDN. Pan American has production and is trading at $14.33 CDN and Apex is at $14.90 US. Fidelity is a major shareholder of Silver Standard. Bill Gates' private company has invested in Pan American and George Soros helped start Apex.
Let's not forget Warren Buffet buying all that silver a few years ago. These are three of the smartest investors of our time!
It's easier for silver to double from $5 - 10 than gold $375 - 750.
Also, there are far less pure silver companies than gold. Avino is considered the cheapest of the Pure Silver Companies.
Silver Standard has 40 million shares issued, multiplied by $10.00 or $418 million market cap.
Pan American has 51 million shares issued, multiplies by $14.33 or $730 million market cap.
Apex 36 million shares issued at $14.90 US or a US$537 million market cap. (The shares issued were taken off Canada-Stockwatch and might be less than actually issued).
Avino has 7 million shares issued and is trading at $0.85 Canadian or a litle over 4 million us!
I ask you David, which company has the best upside Potential?
Our plan is to acquire silver properties and build our silver resource.
When you buy a share in Avino you are buying a “Call on Silver.”
If Silver goes up we go up.
