Overview

Location

The Avino mine is located in the Durango region of North Central Mexico in the heart of the Sierra Madre Silver Belt. The property covers 1,104 hectares, is easily accessible by road and has access to water and grid power. The mine is an important part of the local community which has enabled the Company to attract skilled workers at competitive wages.

Property

Property Locator

The Avino mine was once described by the Spaniards as "a mountain of silver." The mine first opened in the 1500s and reportedly supplied considerable wealth to Spain for hundreds of years (click here for more info on Avino's history). It has operated intermittently ever since, including for 27 years under Avino Silver & Gold Mines beginning in 1974. During the 3 decades that the mine was in production under Avino, silver grades averaged from 3 to 7 ounces per ton with more than 16 Moz of silver, 96,000 oz of gold and 24Mlb of copper produced through both open pit and underground mining. The mine shut down in 2001 due to low silver prices and the closure of a key smelter.

With metals prices once again favorable, Avino has successfully resumed production on the property through exploration and development of high potential zones close in proximity to its 1,500 tpd mill.

Operations

Avino's current operation consists of the Avino and San Gonzalo Mines. The San Gonzalo Mine entered commercial production in October 2012 followed by the Avino Mine in April 2016. The two mines feed a conventional flotation mill that has 3 separate circuits and a capacity of 1,500 tonnes per day. Avino is also assessing the potential for processing the oxide tailings resource from previous milling operations as well as exploring other known mineralized systems on the property.

  2012 2013 2014 2015 YTD 2016

Tonnes Milled

71,054 132,551 201,751 517,887 409,760

Total Silver Produced (oz)

191,635 698,076 969,525 1,625,285 1,192,704

Total Gold Produced (oz)

1,236 3,243 5,180 7,083 4,538

Total Copper Produced (Lbs)

N/A N/A 305,417 4,743,691 3,450,940

Total Silver Equivalent¹ Produced (oz)

253,450 895,240 1,342,150 3,020,348 1,986,965

All in Sustaining Cash Cost² per oz Ag Eq.($CAD)

N/A $14.39 $12.24 $12.14 $13.83

All in Sustaining Cash Cost² per oz Ag Eq.($USD)

N/A N/A $11.08 $9.49 $10.60

1Metal Production is expressed in terms of silver equivalent ounces, (oz Ag Eq.), the formula for which depends on the gold and silver metal prices used in each year and hence are only indicative.

2The Company reports non-IFRS measures which include cash cost per silver equivalent ounce, all-in sustaining cash cost per ounce, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures.

Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company's discovery of the San Gonzalo resource, and in the Company's record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012. This approach is being applied for the advancement of the Avino Mine project, for which similar risks and uncertainties have been identified.