San Gonzalo Mine

The San Gonzalo Mine is located approximately 2 km from the original Avino mine and beneath the shallow workings of an old mine from the colonial period. It constitutes a strongly developed vein system over 25 m across, trending 300 to 325 degrees, dip 80 NE to 77 SW. The original underground workings extend over an area approximately 150 m along strike and 136 m in depth.


Operations

On October 1st 2012, Avino commenced mineral processing at levels intended by management at the San Gonzalo Mine. Operations are ongoing, comparative figures are presented below:

  2012 2013 2014 2015 YTD 2016
Tonnes Milled 19,539 78,415 70,525 121,774 81,537
Feed Grade Silver (g/t) 259 288 337 279 268
Feed Grade Gold (g/t) 1.04 1.34 1.88 1.48 1.29
Recovery Silver (%) 79 83 84 83 83
Recovery Gold (%) 70 73 78 75 71
Total Silver Produced (oz) 128,607 602,233 724,931 907,384 582,868
Total Gold Produced (oz) 455 2,473 3,740 4,326 2,386
Total Silver Equivalent¹ Produced (oz) 151,372 751,462 958,702 1,218,351 760,860
All in Sustaining Cash Cost² per oz Ag Eq.($CAD) N/A $14.15 $11.96 $12.15 $12.42
All in Sustaining Cash Cost² per oz Ag Eq.($CAD) N/A N/A N/A N/A $9.39

1 Metal 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.

2 The 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.



Mining

The San Gonzalo Mine is an underground operation that uses both shrinkage stoping and cut and fill mining methods to extract mineralized material. Once mineralized material has been broken from the stopes, it is transported to the surface and trucked 2 km to the mill where it waits to be processed.

A 250 tonne per day bulk flotation circuit at the processing plant is then used to produce a bulk concentrate that contains silver, gold, lead and zinc. The concentrate is then shipped to Manzanillo, Mexico on a monthly basis where it is sold to a trading company. For more information about the processing plant, please click here

Qualified Person(s)

Avino's projects are under the supervision of Chris Sampson, P.Eng, BSc, ARSM Avino Consultant and Mr. Jasman Yee P.Eng, Avino director, who are both qualified persons within the context of National Instrument 43-101. Both have reviewed and approved the technical data herein