Avino Silver & Gold Mines Ltd. (“Avino” or “theCompany”), is pleased to announce that it has entered into an option andjoint venture agreement with Endeavour Silver Corp. (“Endeavour”), wherebyEndeavour was granted the option to acquire up to a 75% interest in theLaberinto Property (“the Property”), Durango State, Mexico, consisting ofapproximately 91.7 hectares. In order to exercise the option, Endeavour mustpay up to US $200,000 in annual installments over 4 years to Avino in optionpayments, and incur up to US$3 million in exploration work on the Property overthe next 4 years.
Upon Endeavour acquiring its 75% interest, a joint venture will be formed,under which if any party does not contribute its proportionate share of costs,its participating interest will be diluted on a pro rata basis according to thecontributions of all parties. If any party’s participating interest is reducedto 10% or less, then its interest will be automatically converted into a 2.5%net smelter returns royalty.
The El Laberinto property is situated 60 km’s NE of Durango, Mexico and25 km west of Avino’s main mine. It occurs in the Sierra La Silla (hills)which form part of a large volcanic caldera which also contains Avino’s mainholdings. The Sierra La Silla area contains many silver, gold, lead, zinc andcopper veins similar to those at Avino which are also situated in the lowervolcanic Andesite sequence.
El Laberinto is a small property today and is a remnant of a much larger landpackage in the area once controlled by Avino.
During 1995 Avino mapped the La Silla area and sampled the principal veins.Avino had assembled the land package in the district in search of another Avinomain vein. (Report August 1995)
Avino drove an adit on the Veta Grande (“Big Vein”) in late 1995. Values ofsilver and gold were sub economic. The adit was stopped at approximately 300meters length before it reached the main shoot described in the 1995 report.Three holes were drilled below the adit, assays are unavailable.
Avino does not consider that the Big Vein has been adequately explored to date.Although the adit showed low values, it didn’t reach the principal shoot andwas likely too high on the vein structure.
The disclosure of the technical information contained in this news release hasbeen reviewed and approved by Mr. Chris Sampson, P.Eng., and Mr. Jasman Yee,P.Eng., who are Qualified Persons as defined by NI 43-101.
ON BEHALF OF THE BOARD
“David Wolfin”
________________________________
David Wolfin
President & CEO
Safe Harbour Statement - This news release contains “forward-lookinginformation” and “forward-looking statements” (together, the “forward lookingstatements”) within the meaning of applicable securities laws and the UnitedStates Private Securities Litigation Reform Act of 1995, including our beliefas to the extent and timing of various studies, and exploration results, thepotential tonnage, grades and content of deposits, timing and establishment andextent of resources estimates. These forward-looking statements are made as ofthe date of this news release and the dates of technical reports, asapplicable. Readers are cautioned not to place undue reliance onforward-looking statements, as there can be no assurance that the futurecircumstances, outcomes or results anticipated in or implied by suchforward-looking statements will occur or that plans, intentions or expectationsupon which the forward-looking statements are based will occur. While we havebased these forward-looking statements on our expectations about future eventsas at the date that such statements were prepared, the statements are not aguarantee that such future events will occur and are subject to risks,uncertainties, assumptions and other factors which could cause events oroutcomes to differ materially from those expressed or implied by suchforward-looking statements.
Such factors and assumptions include, among others, the effects of generaleconomic conditions, the price of gold and silver, changing foreign exchangerates and actions by government authorities, uncertainties associated withlegal proceedings and negotiations and misjudgments in the course of preparingforward-looking information. In addition, there are known and unknown riskfactors which could cause our actual results, performance or achievements todiffer materially from any future results, performance or achievementsexpressed or implied by the forward-looking statements. Known risk factorsinclude risks associated with project development; the need for additionalfinancing; operational risks associated with mining and mineral processing;fluctuations in metal prices; title matters; uncertainties and risks related tocarrying on business in foreign countries; environmental liability claims andinsurance; reliance on key personnel; the potential for conflicts of interestamong certain of our officers, directors or promoters of with certain otherprojects; the absence of dividends; currency fluctuations; competition;dilution; the volatility of the our common share price and volume; taxconsequences to U.S. investors; and other risks and uncertainties. Although wehave attempted to identify important factors that could cause actual actions,events or results to differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events or resultsnot to be as anticipated, estimated or intended. There can be no assurance thatforward-looking statements will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking statements. We are under no obligation to update or alter anyforward-looking statements except as required under applicable securities laws.
Cautionary Note to United States Investors - The information contained hereinand incorporated by reference herein has been prepared in accordance with therequirements of Canadian securities laws, which differ from the requirements ofUnited States securities laws. In particular, the term “resource” does notequate to the term “reserve”. The Securities Exchange Commission’s (the “SEC”)disclosure standards normally do not permit the inclusion of informationconcerning “measured mineral resources”, “indicated mineral resources” or“inferred mineral resources” or other descriptions of the amount ofmineralization in mineral deposits that do not constitute “reserves” by SEC standards,unless such information is required to be disclosed by the law of the Company’sjurisdiction of incorporation or of a jurisdiction in which its securities aretraded. U.S. investors should also understand that “inferred mineral resources”have a great amount of uncertainty as to their existence and great uncertaintyas to their economic and legal feasibility. Disclosure of “contained ounces” ispermitted disclosure under Canadian regulations; however, the SEC normally onlypermits issuers to report mineralization that does not constitute “reserves” bySEC standards as in place tonnage and grade without reference to unit measures.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that termis defined in the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.