Document:

avino_ex46.htm

EXHIBIT 4.6
  
 	  
	 Report to:
   

		 Avino Silver & Gold Mines Ltd.
  
 

		 Resource Estimate Update for the 
 Avino Property, Durango, Mexico

		  

		 220342-00-RPT-001

		
		 

 
 
 
 
 
 
 
 
 
 
  
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	  
	 Report to:
  

		 AVINO SILVER & GOLD MINES LTD.
  
 
  

		 RESOURCE ESTIMATE UPDATE
FOR THE AVINO PROPERTY, DURANGO, MEXICO

	  
	  

		 EFFECTIVE DATE: JANUARY 13, 2021

	  
	  

		 Prepared by: 
	 Hassan Ghaffari, P.Eng., M.A.Sc.

		  
	 Michael F. O’Brien, P.Geo., M.Sc., Pr.Sci,Nat., FAusIMM, FSAIMM

		  
	 Barnard Foo, P.Eng., M.Eng.

		  
	 Jianhui (John) Huang, Ph.D., P.Eng.

		  
	  

		  
	  

		 

		 Suite 1000, 885 Dunsmiur Street, Vancouver, British Columbia V6C 1N5
Phone: 604.685.0275  Fax: 604.684.6241

 
 
 
 
 
 
 
 
 
 
  
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
  
 TABLE OF CONTENTS
  
 	 1.0
	 SUMMARY
	  
	 1-1
	  

	  
	  
	  
	  
	  

	  
	 1.1
	 Introduction
	  
	 1-1
	  

	  
	 1.2
	 Property Description and Location
	  
	 1-2
	  

	  
	 1.3
	 Geology and Mineralization
	  
	 1-4
	  

	  
	  
	 1.3.1
	 The Avino Vein
	  
	 1-5
	  

	  
	  
	 1.3.2
	 The San Gonzalo Vein
	  
	 1-5
	  

	  
	  
	 1.3.3
	 The Oxide Tailings
	  
	 1-6
	  

	  
	 1.4
	 Resource Estimates
	  
	 1-6
	  

		 1.5
	 Mineral Processing, Metallurgical Testing and Recovery Methods
	  
	 1-8
	  

		  
	 1.5.1
	 Avino Vein
	  
	 1-9
	  

		  
	 1.5.2
	 San Gonzalo Vein
	  
	 1-9
	  

		  
	 1.5.3
	 Oxide Tailings
	  
	 1-10
	  

		  
	 1.5.4
	 Sulphide Tailings
	  
	 1-10
	  

		 1.6
	 Mining Methods
	  
	 1-11
	  

		  
	 1.6.1
	 Avino Vein
	  
	 1-11
	  

		  
	 1.6.2
	 San Gonzalo Vein
	  
	 1-12
	  

		  
	 1.6.3
	 Oxide Tailings
	  
	 1-13
	  

		 1.7
	 Project Infrastructure
	  
	 1-13
	  

		 1.8
	 Environmental
	  
	 1-14
	  

		 1.9
	 Capital and Operating Costs
	  
	 1-15
	  

		  
	 1.9.1
	 Capital Cost Estimates
	  
	 1-15
	  

		  
	 1.9.2
	 Operating Cost Estimates
	  
	 1-16
	  

		 1.10
	 Economic Analysis
	  
	 1-18
	  

		  
	 1.10.1
	 Avino and San Gonzalo Veins
	  
	 1-18
	  

		  
	 1.10.2
	 Tailings Resources
	  
	 1-19
	  

		 1.11
	 Recommendations
	  
	 1-19
	  

	  
	  
	  
	  
	  
	  

	 2.0
	 INTRODUCTION
	  
	 2-1
	  

	  
	  
	  
	  
	  

	  
	 2.1
	 Effective Dates
	  
	 2-1
	  

		 2.2
	 Site Visits and Qualified Persons
	  
	 2-1
	  

		 2.3
	 Information and Data Sources
	  
	 2-3
	  

		 2.4
	 Units of Measurement
	  
	 2-3
	  

	  
	  
	  
	  
	  
	  

	 3.0
	 RELIANCE ON OTHER EXPERTS
	  
	 3-1
	  

	  
	  
	  
	  
	  

	 4.0
	 PROPERTY DESCRIPTION AND LOCATION
	  
	 4-1
	  

	  
	  
	  
	  
	  

		 4.1
	 Location
	  
	 4-1
	  

		 4.2
	 Property Ownership
	  
	 4-2
	  

		 4.3
	 Mineral Concessions and Agreements
	  
	 4-3
	  

 
 
 
 
 
 
 
 
 
 
  
 	  

	i
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 	 5.0
	 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
	  
	 5-1
	  

	  
	  
	  
	  
	  

		 5.1
	 Topography, Elevation and Vegetation
	  
	 5-1
	  

		 5.2
	 Accessibility and Local Resources
	  
	 5-1
	  

		 5.3
	 Climate and Length of Operating Season
	  
	 5-1
	  

		 5.4
	 Infrastructure
	  
	 5-2
	  

	  
	  
	  
	  
	  

	 6.0
	 HISTORY
	  
	 6-1
	  

	  
	  
	  
	  
	  

		 6.1
	 Avino Mine, 1555 to 1968
	  
	 6-1
	  

		  
	 6.1.1
	 Avino Vein System Deposit
	  
	 6-2
	  

		 6.2
	 San Gonzalo Vein Deposit
	  
	 6-2
	  

		 6.3
	 Guadalupe Vein Deposit
	  
	 6-3
	  

		 6.4
	 San Juventino Vein Deposit
	  
	 6-3
	  

	  
	  
	  
	  
	  

	 7.0
	 GEOLOGICAL SETTING AND MINERALIZATION
	  
	 7-1
	  

	  
	  
	  
	  
	  

		 7.1
	 Regional Geology
	  
	 7-1
	  

		 7.2
	 Property Geology and Mineralization
	  
	 7-2
	  

		  
	 7.2.1
	 Avino Vein
	  
	 7-3
	  

		  
	 7.2.2
	 San Gonzalo Vein
	  
	 7-5
	  

		  
	 7.2.3
	 Oxide and Sulphide Tailings
	  
	 7-5
	  

	  
	  
	  
	  
	  

	 8.0
	 DEPOSIT TYPES
	  
	 8-1
	  

	  
	  
	  
	  
	  

	 9.0
	 EXPLORATION
	  
	 9-1
	  

	  
	  
	  
	  
	  

		 9.1
	 Early Exploration (Prior to Mine Closure), 1968 to 2001
	  
	 9-1
	  

		 9.2
	 Recent Exploration, 2001 to Present
	  
	 9-2
	  

		  
	 9.2.1
	 Tailings Investigations (Oxides), 2003 and 2004
	  
	 9-3
	  

		  
	 9.2.2
	 Tailings Sampling (Sulphides), 2005
	  
	 9-3
	  

		  
	 9.2.3
	 Bulk Sample Program of San Gonzalo Vein, 2011
	  
	 9-3
	  

		  
	 9.2.4
	 Underground Channel Sampling of San Gonzalo and Avino Veins, 2010 to Present
	  
	 9-4
	  

		  
	 9.2.5
	 Underground Channel Sampling of San Gonzalo and Angelica Veins, 2010 to Present
	  
	 9-5
	  

	  
	  
	  
	  
	  
	  
	  

	 10.0
	 DRILLING
	  
	 10-1
	  

	  
	  
	  
	  
	  

		 10.1
	 Early Drilling (Prior to Mine Closure), 1968 to 2001
	  
	 10-2
	  

		  
	 10.1.1
	 Avino Vein
	  
	 10-2
	  

		  
	 10.1.2
	 Oxide Tailings, 1990 to 1991
	  
	 10-2
	  

		 10.2
	 Recent Drilling (Post-mine Closure), 2001 to Present
	  
	 10-2
	  

		  
	 10.2.1
	 Avino Vein
	  
	 10-3
	  

		  
	 10.2.2
	 San Gonzalo Vein
	  
	 10-3
	  

		  
	 10.2.3
	 San Juventino and Guadalupe Veins
	  
	 10-3
	  

		  
	 10.2.4
	 Oxide Tailings
	  
	 10-4
	  

		  
	 10.2.5
	 Specific Gravity Results
	  
	 10-7
	  

 
 
 
 
 
 
 
 
 
 
  
 	  

	ii
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 	 11.0
	 SAMPLE PREPARATION, ANALYSIS AND SECURITY
	  
	 11-1
	  

	  
	  
	  
	  
	  

		 11.1
	 Drilling and Trenching of Oxide Tailings, 1990 to 1991
	  
	 11-1
	  

		 11.2
	 Tailings Investigations (Test Pits in Oxide Tailings), 2004
	  
	 11-1
	  

		 11.3
	 Drilling Program, San Gonzalo, 2007 to Present
	  
	 11-2
	  

		 11.4
	 Drilling Programs, ET Zone of the Avino Vein, 2006 to Present
	  
	 11-3
	  

		 11.5
	 Underground Channel Sampling of San Gonzalo Vein, 2010 to Present
	  
	 11-3
	  

		 11.6
	 Avino Laboratory
	  
	 11-4
	  

		 11.7
	 Specific Gravity Samples
	  
	 11-4
	  

		  
	 11.7.1
	 Caliper Volume Calculation Method
	  
	 11-4
	  

		  
	 11.7.2
	 Water Displacement Method
	  
	 11-5
	  

		 11.8
	 QP Opinion
	  
	 11-5
	  

	  
	  
	  
	  
	  

	 12.0
	 DATA VERIFICATION
	  
	 12-1
	  

	  
	  
	  
	  
	  

		 12.1
	 Avino and San Gonzalo Vein Drillhole Database Verification
	  
	 12-1
	  

		  
	 12.1.1
	 Collar and Assay Data
	  
	 12-1
	  

		  
	 12.1.2
	 Downhole Survey Data
	  
	 12-3
	  

	  
	  
	 12.1.3
	 Geology Data and Interpretation
	  
	 12-4
	  

		  
	 12.1.4
	 Review of Drillhole Quality Assurance/Quality Control Samples
	  
	 12-4
	  

		 12.2
	 Bulk Density
	  
	 12-17
	  

		  
	 12.2.1
	 Avino and San Gonzalo Vein Bulk Density
	  
	 12-17
	  

		 12.3
	 Oxide Tailings Drillhole Database
	  
	 12-18
	  

		  
	 12.3.1
	 Assay Verification of 1990/1991 Drillholes in Oxide Tailings
	  
	 12-18
	  

		  
	 12.3.2
	 Oxide Tailings Verification Samples
	  
	 12-18
	  

		 12.4
	 Site Visit
	  
	 12-19
	  

		 12.5
	 The QP Conclusions and Opinion
	  
	 12-19
	  

		  
	 12.5.1
	 Avino and San Gonzalo Veins
	  
	 12-19
	  

		  
	 12.5.2
	 Oxide Tailings
	  
	 12-20
	  

		  
	 12.5.3
	 QP Opinion
	  
	 12-20
	  

	  
	  
	  
	  
	  

	 13.0
	 MINERAL PROCESSING AND METALLURGICAL TESTING
	  
	 13-1
	  

	  
	  
	  
	  
	  

		 13.1
	 Avino Vein
	  
	 13-1
	  

		 13.2
	 Oxide Tailings
	  
	 13-2
	  

		 13.3
	 Sulphide Tailings
	  
	 13-22
	  

	  
	  
		  
	  

	 14.0
	 MINERAL RESOURCE ESTIMATES
	  
	 14-1
	  

	  
	  
	  
	  
	  

		 14.1
	 Resource Summary
	  
	 14-1
	  

		 14.2
	 Data
	  
	 14-3
	  

		 14.3
	 Avino Vein
	  
	 14-3
	  

		  
	 14.3.1
	 Geological Interpretation
	  
	 14-3
	  

		  
	 14.3.2
	 Wireframing
	  
	 14-12
	  

		 14.4
	 San Gonzalo Vein
	  
	 14-15
	  

		  
	 14.4.1
	 Geological Interpretation
	  
	 14-15
	  

		  
	 14.4.2
	 Wireframing
	  
	 14-15
	  

 
 
 
 
 
 
 
 
 
 
  
 	 
	iii
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 	  
	 14.5
	 Oxide Tailings
	  
	 14-17
	  

		  
	 14.5.1
	 Geological Interpretation
	  
	 14-17
	  

		  
	 14.5.2
	 Wireframing
	  
	 14-18
	  

		 14.6
	 Exploratory Data Analysis
	  
	 14-19
	  

		  
	 14.6.1
	 Raw Data Assays and Statistics
	  
	 14-19
	  

		  
	 14.6.2
	 Outlier Management and Capping Strategy
	  
	 14-24
	  

		  
	 14.6.3
	 Drillhole Compositing
	  
	 14-24
	  

		 14.7
	 Density
	  
	 14-24
	  

		  
	 14.7.1
	 Density Data
	  
	 14-24
	  

		 14.8
	 Bismuth
	  
	 14-25
	  

		 14.9
	 Variography and Spatial Analysis
	  
	 14-26
	  

		 14.10
	 Interpolation Plan and Kriging Parameters
	  
	 14-32
	  

		  
	 14.10.1
	 Avino
	  
	 14-32
	  

		  
	 14.10.2
	 San Gonzalo
	  
	 14-32
	  

		  
	 14.10.3
	 Oxide Tailings
	  
	 14-32
	  

		 14.11
	 Resource Block Models
	  
	 14-37
	  

		  
	 14.11.1
	 Block Model Configurations
	  
	 14-37
	  

		  
	 14.11.2
	 Interpolation
	  
	 14-38
	  

		 14.12
	 Model Validation
	  
	 14-38
	  

		  
	 14.12.1
	 Statistics
	  
	 14-38
	  

		  
	 14.12.2
	 Sections
	  
	 14-44
	  

		  
	 14.12.3
	 Swath Plots
	  
	 14-49
	  

		 14.13
	 Mineral Resource Classification
	  
	 14-68
	  

		  
	 14.13.1
	 Introduction
	  
	 14-68
	  

		 14.14
	 Mineral Resource Tabulation
	  
	 14-72
	  

		  
	 14.14.1
	 Cut-offs and Silver Equivalent Calculations
	  
	 14-72
	  

		  
	 14.14.2
	 Grade-tonnage Tables
	  
	 14-73
	  

		 14.15
	 Sulphide Tailings
	  
	 14-75
	  

	  
	  
	  
	  
	  

	 15.0
	 MINERAL RESERVE ESTIMATES
	  
	 15-1
	  

	  
	  
	  
	  
	  

	 16.0
	 MINING METHODS
	  
	 16-1
	  

	  
	  
	  
	  
	  

		 16.1
	 Mining Activities at the Avino Property
	  
	 16-1
	  

		 16.2
	 Avino Vein
	  
	 16-2
	  

		 16.3
	 San Gonzalo Vein
	  
	 16-5
	  

		  
	 16.3.1
	 Production
	  
	 16-6
	  

		 16.4
	 Oxide Tailings
	  
	 16-6
	  

		  
	 16.4.1
	 Schedule
	  
	 16-6
	  

		  
	 16.4.2
	 Equipment
	  
	 16-7
	  

		  
	 16.4.3
	 Modifying Site Considerations
	  
	 16-7
	  

		 16.5
	 Sulphide Tailings
	  
	 16-7
	  

	  
	  
	  
	  
	  

	 17.0
	 RECOVERY METHODS
	  
	 17-1
	  

	  
	  
	  
	  
	  

		 17.1
	 Crushing Facility
	  
	 17-2
	  

		 17.2
	 Grinding / Gravity Concentration / Flotation
	  
	 17-3
	  

		 17.3
	 Tailings Resources
	  
	 17-7
	  

		  
	 17.3.1
	 Oxide Tailings
	  
	 17-7
	  

		  
	 17.3.2
	 Sulphide Tailings
	  
	 17-13
	  

 
 
 
 
 
 
 
 
 
 
  
 	  

	iv
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
   
 	 18.0
	 PROJECT INFRASTRUCTURE
	  
	 18-1
	  

	  
	  
	  
	  
	  

		 18.1
	 Introduction
	  
	 18-1
	  

		 18.2
	 Accessibility
	  
	 18-3
	  

		 18.3
	 Power
	  
	 18-3
	  

		 18.4
	 Water Supply
	  
	 18-3
	  

		 18.5
	 Water Treatment Plant
	  
	 18-3
	  

	  
	  
	  
	  
	  

	 19.0
	 MARKET STUDIES AND CONTRACTS
	  
	 19-1
	  

	  
	  
	  
	  
	  

		 19.1
	 Mined Material Haulage from Underground
	  
	 19-1
	  

		 19.2
	 Flotation Concentrates
	  
	 19-1
	  

		 19.3
	 Gold-Silver Doré
	  
	 19-1
	  

	  
	  
	  
	  
	  

	 20.0
	 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT
	  
	 20-1
	  

	  
	  
	  
	  
	  
	  
	  

		 20.1
	 Environmental Studies
	  
	 20-1
	  

		  
	 20.1.1
	 Environmental Setting
	  
	 20-1
	  

		 20.2
	 Environmental Permitting
	  
	 20-3
	  

		  
	 20.2.1
	 Current Permits for the Oxide Tailings
	  
	 20-4
	  

		  
	 20.2.2
	 Current Permits
	  
	 20-4
	  

		  
	 20.2.3
	 Applicable Legislation
	  
	 20-5
	  

		 20.3
	 Environmental Monitoring and Reporting
	  
	 20-7
	  

		 20.4
	 Environmental Management
	  
	 20-7
	  

		 20.5
	 Water Management
	  
	 20-7
	  

		 20.6
	 Sulphide Tailings Management
	  
	 20-7
	  

		 20.7
	 Mine Closure and Reclamation
	  
	 20-8
	  

		 20.8
	 Socio-economic and Community Considerations
	  
	 20-9
	  

		  
	 20.8.1
	 Project Location
	  
	 20-9
	  

		  
	 20.8.2
	 Consultation with Communities
	  
	 20-9
	  

	  
	  
	  
	  
	  

	 21.0
	 CAPITAL AND OPERATING COST ESTIMATES
	  
	 21-1
	  

	  
	  
	  
	  
	  

		 21.1
	 Avino Veins
	  
	 21-1
	  

		  
	 21.1.1
	 Capital Costs
	  
	 21-1
	  

		  
	 21.1.2
	 Operating Costs
	  
	 21-2
	  

		 21.2
	 Tailings Resources
	  
	 21-3
	  

		  
	 21.2.1
	 Oxide Tailings
	  
	 21-3
	  

		  
	 21.2.2
	 Basis of Estimate
	  
	 21-4
	  

		  
	 21.2.3
	 Capital Cost Summary
	  
	 21-6
	  

		  
	 21.2.4
	 Operating Costs Summary
	  
	 21-7
	  

		  
	 21.2.5
	 Sulphide Tailings
	  
	 21-10
	  

	  
	  
	  
	  
	  

	 22.0
	 ECONOMIC ANALYSIS
	  
	 22-1
	  

	  
	  
	  
	  
	  

		 22.1
	 Avino Vein
	  
	 22-1
	  

		 22.2
	 Tailings Resources
	  
	 22-1
	  

		  
	 22.2.1
	 Oxide Tailings
	  
	 22-1
	  

		  
	 22.2.2
	 Sulphide Tailings
	  
	 22-3
	  

 
 
 
 
 
 
 
 
 
 
  
 	  

	v
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
   
 	 23.0
	 ADJACENT PROPERTIES
	  
	 23-1
	  

	  
	  
	  
	  
	  

	 24.0
	 OTHER RELEVANT DATA AND INFORMATION
	  
	 24-1
	  

	  
	  
	  
	  
	  

	 25.0
	 INTERPRETATIONS AND CONCLUSIONS
	  
	 25-1
	  

	  
	  
	  
	  
	  

		 25.1
	 Geology
	  
	 25-1
	  

		 25.2
	 Resource Estimates
	  
	 25-1
	  

		 25.3
	 Mineral Processing
	  
	 25-1
	  

		 25.4
	 Mining
	  
	 25-2
	  

		 25.5
	 Capital and Operating Costs
	  
	 25-2
	  

		  
	 25.5.1
	 Avino Vein
	  
	 25-2
	  

		  
	 25.5.2
	 Tailings Resources
	  
	 25-2
	  

		 25.6
	 Economic Analysis
	  
	 25-4
	  

	  
	  
	  
	  
	  

	 26.0
	 RECOMMENDATIONS
	  
	 26-1
	  

	  
	  
	  
	  
	  

		 26.1
	 Geology
	  
	 26-1
	  

		  
	 26.1.1
	 Database Management
	  
	 26-1
	  

		  
	 26.1.2
	 Underground Sampling
	  
	 26-1
	  

		  
	 26.1.3
	 Density Sampling and Analysis
	  
	 26-2
	  

		  
	 26.1.4
	 QA/QC Sampling
	  
	 26-2
	  

		  
	 26.1.5
	 Bismuth
	  
	 26-3
	  

		  
	 26.1.6
	 Resource Estimation
	  
	 26-3
	  

		  
	 26.1.7
	 Exploration for the Western Extension of the Avino Vein
	  
	 26-3
	  

		 26.2
	 Mining
	  
	 26-3
	  

		  
	 26.2.1
	 Long-term Mine Planning
	  
	 26-3
	  

		 26.3
	 Process
	  
	 26-3
	  

		  
	 26.3.1
	 Avino Vein
	  
	 26-3
	  

		  
	 26.3.2
	 Oxide and Sulphide Tailings
	  
	 26-4
	  

		 26.4
	 Environmental
	  
	 26-4
	  

		 26.5
	 Mining of Sulphide Tailings
	  
	 26-5
	  

	  
	  
	  
	  
	  

	 27.0
	 REFERENCES
	  
	 27-1
	  

	  
	  
	  
	  
	  

	 28.0
	 CERTIFICATES OF QUALIFIED PERSONS
	  
	 28-1
	  

 
 
 
 
 
 
 
 
 
 
   
 APPENDICES
  
 	 APPENDIX A 
	 TITLE OPINION

	 APPENDIX B 
	 SUMMARY OF DIAMOND DRILLHOLES

 
 
 
 
 
 
 
 
 
 
  
 	 
	vi
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
  
 LIST OF TABLES
  
 	 Table 1.1
	 CMMA Mineral Concessions
	  
	 1-2
	  

	 Table 1.2
	 Mineral Resources at the Avino Property
	  
	 1-7
	  

	 Table 1.3
	 Production from the Avino Vein (2017 to Q3 2020)
	  
	 1-11
	  

	 Table 1.4
	 Recent Material Feed from the Avino Historic Above Ground Stockpile
	  
	 1-12
	  

	 Table 1.5
	 Recent Production from the San Gonzalo Vein
	  
	 1-13
	  

	 Table 1.6
	 Capital Costs for the Avino Vein and Historical Stockpiles (US$)
	  
	 1-15
	  

	 Table 1.7
	 Capital Costs for the San Gonzalo Vein (US$)
	  
	 1-16
	  

	 Table 1.8
	 Operating Costs for the Avino Vein (US$)
	  
	 1-17
	  

	 Table 1.9
	 Operating Costs for the Historical Stockpile Materials (US$)
	  
	 1-17
	  

	 Table 1.10
	 Operating Costs for the San Gonzalo Vein (US$)
	  
	 1-18
	  

	 Table 2.1
	 Summary of QPs
	  
	 2-2
	  

	 Table 4.1
	 Summary of Property Ownership
	  
	 4-3
	  

	 Table 4.2
	 Mineral Concessions – Avino Property
	  
	 4-4
	  

	 Table 9.1
	 Summary Underground Channel Sampling by Level for the Avino (ET) Underground Mines
	  
	 9-4
	  

	 Table 9.2
	 Summary of Underground Channel Sampling by Level for the San Gonzalo Mine
	  
	 9-5
	  

	 Table 10.1
	 Exploration Drilling 2018
	  
	 10-1
	  

	 Table 10.2
	 Drillholes Drilled on Oxide Tailings 2003 to 2016
	  
	 10-4
	  

	 Table 10.3
	 Avino and San Gonzalo Density Data Summary
	  
	 10-7
	  

	 Table 12.1
	 Number of Records and Discrepancies for the Avino (ET and San Gonzalo) Drillhole and Channel Sampling Data
	  
	 12-2
	  

	 Table 12.2
	 Assay Data Verification Result
	  
	 12-3
	  

	 Table 12.3
	 Standards Specification and Performance
	  
	 12-5
	  

	 Table 13.1
	 Cyanidation Test Results
	  
	 13-3
	  

	 Table 13.2
	 Flotation Test Results
	  
	 13-3
	  

	 Table 13.3
	 Test Procedures MMI 2003 Test Program
	  
	 13-5
	  

	 Table 13.4
	 Test Procedures – MMI 2004 Test Program
	  
	 13-6
	  

	 Table 13.5
	 Moisture Content of Samples
	  
	 13-7
	  

	 Table 13.6
	 Head Assays
	  
	 13-9
	  

	 Table 13.7
	 Bulk Density and Specific Gravity
	  
	 13-11
	  

	 Table 13.8
	 Summary of Results of Gravity Concentration Tests
	  
	 13-12
	  

	 Table 13.9
	 Summary of Results of Flotation Tests
	  
	 13-14
	  

	 Table 13.10
	 Summary of Results of PRA Cyanidation Tests
	  
	 13-15
	  

	 Table 13.11
	 Summary of Cyanidation Test Results Used by the MMI Reports
	  
	 13-16
	  

	 Table 13.12
	 Summary of Results of Column Leach Tests
	  
	 13-17
	  

	 Table 13.13
	 Cyanide Leaching Parameters
	  
	 13-20
	  

	 Table 14.1
	 Avino Property – Mineral Resources
	  
	 14-2
	  

	 Table 14.2
	 Metallurgical Recovery for Deposits based on Operational Performance and Column Tests
	  
	 14-3
	  

	 Table 14.3
	 Metal Grade Statistics for 2 m Composites for the Avino and San Gonzalo Vein Systems
	  
	 14-20
	  

	 Table 14.4
	 Oxide Tailings Samples by Sampling Campaign
	  
	 14-22
	  

	 Table 14.5
	 Oxide Tailings Assays by Unit
	  
	 14-23
	  

	 Table 14.6
	 Avino Vein System Density Data Summary
	  
	 14-24
	  

	 Table 14.7
	 San Gonzalo Vein System Density Data Summary
	  
	 14-25
	  

	 Table 14.8
	 Avino Vein System Variogram Parameters
	  
	 14-33
	  

	 Table 14.9
	 Avino Vein System Search Parameters
	  
	 14-35
	  

	 Table 14.10
	 San Gonzalo Vein System: Variogram and Search Parameters
	  
	 14-36
	  

 
 
 
 
 
 
 
 
 
 
   
 	 
	vii
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 	 Table 14.11
	 Oxide Tailings Deposit: Variogram and Search Parameters
	  
	 14-36
	  

	 Table 14.12
	 Estimation Block Model Specifications
	  
	 14-37
	  

	 Table 14.13
	 Explanation of Table 14.12
	  
	 14-37
	  

	 Table 14.14
	 Avino Vein: Block Estimates and Composite Sample Grades
	  
	 14-39
	  

	 Table 14.15
	 San Gonzalo Vein: Block Estimates and Composite Sample Grades
	  
	 14-43
	  

	 Table 14.16
	 Oxide Tailings: Block Estimates and Composite Sample Grades
	  
	 14-44
	  

	 Table 14.17
	 Criteria for Classification of Underground Mineral Resources
	  
	 14-71
	  

	 Table 14.18
	 Silver Equivalent Based Metal Prices and Operational Recovery Parameters
	  
	 14-72
	  

	 Table 14.19
	 Avino Vein (ET Mine) – High Confidence
	  
	 14-73
	  

	 Table 14.20
	 Avino Vein– Medium Confidence
	  
	 14-73
	  

	 Table 14.21
	 Avino Vein– Low Confidence
	  
	 14-73
	  

	 Table 14.22
	 San Gonzalo Vein – High Confidence
	  
	 14-74
	  

	 Table 14.23
	 San Gonzalo – Medium Confidence
	  
	 14-74
	  

	 Table 14.24
	 San Gonzalo – Low Confidence
	  
	 14-74
	  

	 Table 14.25
	 Oxide Tailings – Medium Confidence
	  
	 14-75
	  

	 Table 14.26
	 Oxide Tailings – Low Confidence
	  
	 14-75
	  

	 Table 16.1
	 Recent Production from the Avino Vein
	  
	 16-3
	  

	 Table 16.2
	 Recent Material Feed from the Avino Historic Above Ground Stockpile
	  
	 16-4
	  

	 Table 16.3
	 Recent Production from the San Gonzalo Vein
	  
	 16-5
	  

	 Table 16.4
	 Mining Production Schedule
	  
	 16-7
	  

	 Table 17.1
	 Avino Vein Mill Production
	  
	 17-6
	  

	 Table 17.2
	 Avino Historic Above Ground Stockpiles Production
	  
	 17-6
	  

	 Table 17.3
	 San Gonzalo Vein Mill Production
	  
	 17-7
	  

	 Table 17.4
	 Major Design Criteria
	  
	 17-10
	  

	 Table 20.1
	 Mammal Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
	  
	 20-2
	  

	 Table 20.2
	 Bird Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
	  
	 20-2
	  

	 Table 20.3
	 Reptile Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
	  
	 20-3
	  

	 Table 20.4
	 Amphibian Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
	  
	 20-3
	  

	 Table 20.5
	 Apoyos Realizados en Zaragoza, 2017
	  
	 20-10
	  

	 Table 20.6
	 Apoyos Realizados en Avino, 2017
	  
	 20-10
	  

	 Table 20.7
	 Apoyos Realizados en Zaragoza, 2018
	  
	 20-10
	  

	 Table 20.8
	 Apoyos Realizados en Avino, 2018
	  
	 20-11
	  

	 Table 20.9
	 Apoyos Realizados en Panuco, 2018
	  
	 20-11
	  

	 Table 20.10
	 Apoyos Realizados en Zaragoza, 2019
	  
	 20-11
	  

	 Table 20.11
	 Apoyos Realizados en Avino, 2019
	  
	 20-12
	  

	 Table 20.12
	 Apoyos Realizados en Panuco, 2019
	  
	 20-12
	  

	 Table 21.1
	 Capital Costs for the ET Mine and Historical Stockpiles (US$)
	  
	 21-1
	  

	 Table 21.2
	 Capital Costs for the San Gonzalo Mine (US$)
	  
	 21-2
	  

	 Table 21.3
	 Operating Costs for the ET Mine (US$)
	  
	 21-2
	  

	 Table 21.4
	 Operating Costs for the Historical Stockpile Materials (US$)
	  
	 21-3
	  

	 Table 21.5
	 Operating Costs for the San Gonzalo Mine (US$)
	  
	 21-3
	  

	 Table 21.6
	 Currency Exchange Rate
	  
	 21-4
	  

	 Table 21.7
	 Inflation Rates in Mexico
	  
	 21-5
	  

	 Table 21.8
	 Contingency by Area
	  
	 21-5
	  

	 Table 21.9
	 Capital Cost Summary
	  
	 21-6
	  

	 Table 21.10
	 LOM Unit Operating Cost Estimate Summary
	  
	 21-8
	  

	 Table 21.11
	 Mining Cost Summary
	  
	 21-8
	  

	 Table 21.12
	 LOM Process Operating Cost
	  
	 21-9
	  

	 Table 21.13
	 G&A Manpower Requirements
	  
	 21-10
	  

	 Table 21.14
	 G&A Expenses
	  
	 21-10
	  

	 Table 22.1
	 Summary of Pre-tax Financial Results
	  
	 22-2
	  

	 Table 22.2
	 Summary of Post-tax Financial Results
	  
	 22-3
	  

	 Table 25.1
	 Capital Cost Summary
	  
	 25-3
	  

	 Table 25.2
	 LOM Unit Operating Cost Estimate Summary
	  
	 25-3
	  

 
 
 
 
 
 
 
 
 
 
  
 	 
	viii
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
   
 LIST OF FIGURES
  
 	 Figure 1.1
	 General Location of the Property
	  
	 1-3
	  

	 Figure 1.2
	 Perspective View of the Property Looking North and Showing the Three Deposits
	  
	 1-5
	  

	 Figure 4.1
	 General Location of the Property
	  
	 4-1
	  

	 Figure 4.2
	 Local Property Location
	  
	 4-2
	  

	 Figure 4.3
	 Map of Avino Property Concessions
	  
	 4-5
	  

	 Figure 6.1
	 Elena Tolosa Mine: Vertical Section View Showing Development and Stoping
	  
	 6-2
	  

	 Figure 6.2
	 San Gonzalo Mine: Vertical Section View Showing Development and Stoping
	  
	 6-3
	  

	 Figure 7.1
	 General Map of Property Geology
	  
	 7-2
	  

	 Figure 7.2
	 Orthogonal View of the Oxide Tailings Deposit and Drillholes
	  
	 7-6
	  

	 Figure 9.1
	 Channel and Drillhole Samples, Colour Coded by Silver Grade, within the Avino System
	  
	 9-5
	  

	 Figure 9.2
	 Channel Samples, Colour Coded by Silver Grade, within the San Gonzalo Vein System
	  
	 9-6
	  

	 Figure 10.1
	 Drillholes Completed in 2018 on the Avino Vein System, ET Mine. 2018 drill traces in red, previous drilling in black.
	  
	 10-3
	  

	 Figure 10.2
	 Location of 2018 Drillholes on the San Gonzalo, Santiago, Guadalupe, and Aguila Mexicana Veins
	  
	 10-4
	  

	 Figure 10.3
	 Location of Drillholes Completed from 2015 to 2016 on the Oxide Tailings
	  
	 10-7
	  

	 Figure 12.1
	 Standard 1307_ME-1307 – Gold Performance
	  
	 12-6
	  

	 Figure 12.2
	 Standard CDN-ME-1307 – Silver Performance
	  
	 12-6
	  

	 Figure 12.3
	 Standard CDN-ME-1307 – Copper Performance
	  
	 12-7
	  

	 Figure 12.4
	 Standard CDN-ME-1414 – Gold Performance
	  
	 12-8
	  

	 Figure 12.5
	 Standard CDN-ME-1414 – Silver Performance
	  
	 12-8
	  

	 Figure 12.6
	 Standard CDN-ME-1414 – Copper Performance
	  
	 12-9
	  

	 Figure 12.7
	 Blank – Gold Performance
	  
	 12-10
	  

	 Figure 12.8
	 Blank – Silver Performance
	  
	 12-10
	  

	 Figure 12.9
	 Blank – Copper Performance
	  
	 12-11
	  

	 Figure 12.10
	 Gold – Duplicate Correlation
	  
	 12-12
	  

	 Figure 12.11
	 Gold – Half Absolute Relative Difference Chart
	  
	 12-13
	  

	 Figure 12.12
	 Silver – Duplicate Correlation
	  
	 12-14
	  

	 Figure 12.13
	 Silver – Half Absolute Relative Difference Chart
	  
	 12-15
	  

	 Figure 12.14
	 Copper – Duplicate Correlation
	  
	 12-16
	  

	 Figure 12.15
	 Copper – Half Absolute Relative Difference Chart
	  
	 12-17
	  

	 Figure 14.1
	 Horizontal Section Elevation 1,888 m AMSL, 2017 Interpretation, Avino Main Vein Shown in Green. Note high grade underground sampling extending into the hanging wall of the vein as stockwork and veins are exposed by underground development.
	  
	 14-4
	  

	 Figure 14.2
	 Horizontal Section Elevation 1888m AMSL, 2020 Interpretation, Avino Veins Shown in Yellow, Stockwork in Buff. Two veins modelled with lower grade stockwork exposed by underground development.
	  
	 14-5
	  

 
 
 
 
 
 
 
 
 
 
  
 	  

	ix
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 	 Figure 14.3
	 Vertical Section (reference +2712601.00, Y+570400.00, Azimuth 070) Showing 2017 Avino Vein System Model
	  
	 14-5
	  

	 Figure 14.4
	 Vertical Section (reference +2712601.00, Y+570400.00, Azimuth 070) Showing 2020 Avino Vein System Model. Note system flattening at depth.
	  
	 14-6
	  

	 Figure 14.5
	 Silver and Gold Grade Profiles Relative the Avino Vein Main Zone Footwall
	  
	 14-7
	  

	 Figure 14.6
	 Copper and Bismuth Grade Profiles Relative the Avino Vein Main Zone Footwall
	  
	 14-8
	  

	 Figure 14.7
	 Relative Silver Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
	  
	 14-9
	  

	 Figure 14.8
	 Relative Gold Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
	  
	 14-10
	  

	 Figure 14.9
	 Relative Copper Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
	  
	 14-11
	  

	 Figure 14.10
	 Oblique View, Looking North, of the Avino Vein System Model
	  
	 14-12
	  

	 Figure 14.11
	 Silver Grade Profiles Across the Avino Vein System Contacts
	  
	 14-14
	  

	 Figure 14.12
	 Copper Grade Profile Across the Avino Stockwork Contacts
	  
	 14-15
	  

	 Figure 14.13
	 Oblique View, Looking North, of the San Gonzalo Vein System Model
	  
	 14-16
	  

	 Figure 14.14
	 Silver and Gold Grade Profiles Across the Main San Gonzalo Vein Contacts
	  
	 14-16
	  

	 Figure 14.15
	 Perspective View of Oxide Tailings Drilling and Silver Assays
	  
	 14-17
	  

	 Figure 14.16
	 Section View, Looking Northeast, Showing Silver Grades in Oxide Tailings Benches
	  
	 14-18
	  

	 Figure 14.17
	 Avino Vein: Main Zone Experimental and Modelled Silver Variograms
	  
	 14-26
	  

	 Figure 14.18
	 Avino Vein: Main Zone Experimental and Modelled Gold Variograms
	  
	 14-27
	  

	 Figure 14.19
	 Avino Vein: Main Zone Experimental and Modelled Copper Variograms
	  
	 14-27
	  

	 Figure 14.20
	 San Gonzalo Vein: SG1 Experimental and Modelled Silver Variograms
	  
	 14-28
	  

	 Figure 14.21
	 San Gonzalo Vein: SG1 Experimental and Modelled Gold Variograms
	  
	 14-29
	  

	 Figure 14.22
	 Oxide Tailings: Domain 10 Experimental Silver Variograms
	  
	 14-30
	  

	 Figure 14.23
	 Oxide Tailings: Domain 10 Experimental Silver Variograms
	  
	 14-31
	  

	 Figure 14.24
	 Avino Vein: Typical Transverse Section, Looking Northwest through Drillhole ET07-10, Showing the Block Model Centroids Colour Coded by Silver Grade
	  
	 14-44
	  

	 Figure 14.25
	 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Silver Grade
	  
	 14-45
	  

	 Figure 14.26
	 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Gold Grade
	  
	 14-45
	  

	 Figure 14.27
	 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Copper Grade
	  
	 14-46
	  

	 Figure 14.28
	 San Gonzalo Vein: Typical Transverse Section, Looking East Aligned Along Drillhole SG1115 Showing the Block Model Centroids Colour Coded by Silver Grade
	  
	 14-47
	  

	 Figure 14.29
	 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Colour Coded by Silver Grade
	  
	 14-48
	  

	 Figure 14.30
	 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Color Coded by Gold Grade
	  
	 14-48
	  

	 Figure 14.31
	 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Colour Coded by Silver Equivalent
	  
	 14-49
	  

	 Figure 14.32
	 Avino Vein, Swath Plot for Silver, Eastings
	  
	 14-50
	  

	 Figure 14.33
	 Avino Vein, Swath Plot for Gold Eastings
	  
	 14-51
	  

	 Figure 14.34
	 Avino Vein, Swath Plot for Copper, Eastings
	  
	 14-52
	  

	 Figure 14.35
	 Avino Vein, Swath Plot for Silver, Elevation
	  
	 14-53
	  

	 Figure 14.36
	 Avino Vein, Swath Plot for Gold, Elevation
	  
	 14-54
	  

	 Figure 14.37
	 Avino Vein, Swath Plot for Copper, Elevation
	  
	 14-55
	  

	 Figure 14.38
	 San Gonzalo Vein, Swath Plot for Silver, Eastings
	  
	 14-56
	  

	 Figure 14.39
	 San Gonzalo Vein, Swath Plot for Silver, Northings
	  
	 14-57
	  

	 Figure 14.40
	 San Gonzalo Vein, Swath Plot for Silver, Elevation
	  
	 14-58
	  

	 Figure 14.41
	 San Gonzalo Vein, Swath Plot for Gold, Eastings
	  
	 14-59
	  

	 Figure 14.42
	 San Gonzalo Vein, Swath Plot for Gold, Northings
	  
	 14-60
	  

	 Figure 14.43
	 San Gonzalo Vein, Swath Plot for Gold, Elevation
	  
	 14-61
	  

	 Figure 14.44
	 Oxide Tailings Deposit, Swath Plot for Silver, Easting
	  
	 14-62
	  

	 Figure 14.45
	 Oxide Tailings Deposit, Swath Plot for Gold, Easting
	  
	 14-63
	  

	 Figure 14.46
	 Oxide Tailings Deposit, Swath Plot for Silver, Northing
	  
	 14-64
	  

	 Figure 14.47
	 Oxide Tailings Deposits, Swath Plot for Gold, Northing
	  
	 14-65
	  

	 Figure 14.48
	 Oxide Tailings Deposit, Swath Plot for Silver, Elevation
	  
	 14-66
	  

	 Figure 14.49
	 Oxide Tailings Deposit, Swath Plot for Gold, Elevation
	  
	 14-67
	  

	 Figure 16.1
	 Isometric View of the Avino Property, the Elena Tolosa Mine (left) and San Gonzalo Mine (Right)
	  
	 16-1 
	  

	 Figure 16.2
	 Isometric View of Mining Activities at the Avino Vein Area
	  
	 16-3
	  

	 Figure 16.3
	 Isometric View of Mining Activities at the San Gonzalo Vein Area
	  
	 16-6
	  

	 Figure 17.1
	 Simplified Flowsheet – Avino Mill
	  
	 17-4
	  

	 Figure 17.2
	 Simplified Process Flowsheet
	  
	 17-9
	  

	 Figure 18.1
	 Overall Tailings Heap Leach Facility Layout
	  
	 18-2
	  

	 Figure 26‐1
	 Proposed Drift and Drill Development Concept on 1888 elevation.
	  
	 26-2
	  

 
 
 
 
 
 
 
 
 
 
   
 	 
	x
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
  
 GLOSSARY
  
 UNITS OF MEASURE
  
 	 above mean sea level 
	  
	 amsl
	  

	 acre 
	  
	 ac
	  

	 ampere 
	  
	 A
	  

	 annum (year) 
	  
	 a
	  

	 cubic centimetre 
	  
	 cm3
	  

	 cubic metre 
	  
	 m3
	  

	 cubic yard 
	  
	 yd3
	  

	 Coefficient of Variation 
	  
	 CV
	  

	 day 
	  
	 d
	  

	 days per year (annum) 
	  
	 d/a
	  

	 degree
	  
	 °
	  

	 degrees Celsius 
	  
	 °C
	  

	 dollar (American) 
	  
	 US$
	  

	 dollar (Canadian) 
	  
	 Cdn$
	  

	 feasibility study 
	  
	 FS
	  

	 foot 
	  
	 ft
	  

	 gram 
	  
	 g
	  

	 grams per litre 
	  
	 g/L
	  

	 grams per tonne 
	  
	 g/t
	  

	 greater than 
	  
	 >
	  

	 hectare (10,000 m2) 
	  
	 ha
	  

 
 
 
 
 
 
 
 
 
 
  
 	 
	xi
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
  
 
 	 horsepower 
	  
	 HP
	  

	 hour 
	  
	 h
	  

	 hours per day 
	  
	 h/d
	  

	 inch 
	  
	 in
	  

	 kilogram 
	  
	 kg
	  

	 kilometre 
	  
	 km
	  

	 kilopascal 
	  
	 kPa
	  

	 kilotonne per year 
	  
	 kt/a
	  

	 kilowatt 
	  
	 kW
	  

	 kilowatt hour 
	  
	 kWh
	  

	 kilowatt hours per tonne 
	  
	 kWh/t
	  

	 less than 
	  
	 <
	  

	 litre
	  
	 L
	  

	 megawatt 
	  
	 MW
	  

	 metre 
	  
	 m
	  

	 metres above sea level 
	  
	 masl
	  

	 milligram 
	  
	 mg
	  

	 milligrams per litre 
	  
	 mg/L
	  

	 millilitre 
	  
	 mL
	  

	 millimetre 
	  
	 mm
	  

	 Million cubic metres 
	  
	 Mm3
	  

	 million tonnes per year 
	  
	 Mt/a
	  

	 ounce 
	  
	 oz
	  

	 parts per million 
	  
	 ppm
	  

	 percent 
	  
	 %
	  

	 peso (Mexican) 
	  
	 MXN$
	  

	 pound(s) 
	  
	 lb
	  

	 pounds per square inch (gauge) 
	  
	 psig
	  

	 prefeasibility study 
	  
	 PFS
	  

	 preliminary economic analysis 
	  
	 PEA
	  

	 revolutions per minute
	  
	 rpm
	  

	 second (time) 
	  
	 s
	  

	 square metre 
	  
	 m2
	  

	 three-dimensional 
	  
	 3D
	  

	 tonne (1,000 kg) (metric ton) 
	  
	 t
	  

	 tonnes per day 
	  
	 t/d
	  

	 tonnes per hour 
	  
	 t/h
	  

	 tonnes per year 
	  
	 t/a
	  

 
 
 
 
 
 
 
 
 
 
 
  
 
 	 
	xii
	

	 

 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
  
 ABBREVIATIONS AND ACRONYMS
  
 	 acid-base accounting 
	  
	 ABA
	  

	 atomic absorption 
	  
	 AA
	  

	 Avino Silver & Gold Mines Ltd 
	  
	 Avino
	  

	 Bi 
	  
	 Bismuth
	  

	 Canadian Institute of Mining, Metalurgy, and Petroleum 
	  
	 CIM
	  

	 Cannon-Hicks & Associates Ltd 
	  
	 Cannon-Hicks
	  

	 Compañía Minera Mexicana de Avino 
	  
	 CMMA
	  

	 Compañía Minera Mexicana de Avino, S.A. de C.V 
	  
	 Avino Mexico
	  

	 Convention on International Trade in Endangered Species of Wild Fauna and Flora 
	  
	 CITES
	  

	 copper sulphate 
	  
	 CuSO4
	  

	 copper 
	  
	 Cu
	  

	 dissolved oxygen 
	  
	 dO2
	  

	 east 
	  
	 E
	  

	 Electrometals Electrowinning 
	  
	 EMEW
	  

	 Elena Tolosa 
	  
	 ET
	  

	 Environmental Impact Assessment Matter Regulation/Reglamento en Materia de Evaluacion del Impacto Ambiental 
	  
	 REIA
	  

	 Environmental Impact Assessment/Evaluación de Impacto Ambiental 
	  
	 EIA
	  

	 Environmental Impact Statement/Manifestación de Impacto Ambiental 
	  
	 EIS/MIA
	  

	 Environmental Quality Monitoring Program/Programa de Seguimiento de la Calidad Ambiental 
	  
	 EQMP
	  

	 Federal Attorney for Environmental Protection/Procuraduría Federal de Proteccíon al Ambiente 
	  
	 PROFEPA
	  

	 general and administrative 
	  
	 G&A
	  

	 General Law for the Prevention and Comprehensive Management of Waste/Ley General Para la Prevención y Gestión Integral de Residuos 
	  
	 LGPyGIR
	  

	 General Law for the Prevention and Management of Waste/Ley General Para la Prevención y Gestión Integral de los Residuos 
	  
	 LGPGIR
	  

	 General Law of Ecological Equilibrium and Environmental Protection/Ley General del Equilibrio Ecológico y la Protección al Ambiente 
	  
	 LGEEPA
	  

	 global positioning system 
	  
	 GPS
	  

	 gold equivalent 
	  
	 AuEQ
	  

	 gold 
	  
	 Au
	  

	 half absolute relative distance 
	  
	 HARD
	  

	 induced polarization 
	  
	 IP
	  

	 inductively coupled plasma 
	  
	 ICP
	  

	 inductively coupled plasma mass spectroscopy method 
	  
	 ICP-MS
	  

	 internal rate of return 
	  
	 IRR
	  

	 International Organization for Standardization 
	  
	 ISO
	  

	 inverse distance 
	  
	 ID
	  

	 inverse distance squared 
	  
	 ID2
	  

	 lead 
	  
	 Pb
	  

	 life of mine 
	  
	 LOM
	  

	 Minerales de Avino, Sociedad Anonima de Capital Variable 
	  
	 Minerales
	  

	 MineStart Management Inc 
	  
	 MMI
	  

 
 
 
 
 
 
 
 
 
 
  
 	 
	xiii
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 
 	 Ministry of Environment and Natural Resources/Secretaría de Medio Ambiente y Recursos Naturales 
	  
	 MENR/SEMARNAT
	  

	 National Instrument 
	  
	 NI 43-101
	  

	 nearest neighbour 
	  
	 NN 43-101
	  

	 net present value 
	  
	 NPV
	  

	 net smelter return 
	  
	 NSR
	  

	 north 
	  
	 N
	  

	 ordinary kriging 
	  
	 OK
	  

	 potassium amyl xanthate 
	  
	 PAX
	  

	 preliminary economic assessment 
	  
	 PEA
	  

	 PricewaterhouseCoopers 
	  
	 PwC
	  

	 Process Research Associates Ltd 
	  
	 PRA
	  

	 Qualified Person 
	  
	 QP
	  

	 quality assurance 
	  
	 QA
	  

	 quality control 
	  
	 QC
	  

	 Selco Mining and Development 
	  
	 Selco
	  

	 SGS Mineral Services 
	  
	 SGS
	  

	 silver equivalent 
	  
	 Ag_Eq
	  

	 silver 
	  
	 Ag
	  

	 sodium carbonate 
	  
	 Na2CO3
	  

	 sodium cyanide 
	  
	 NaCN
	  

	 south
	  
	 S
	  

	 the Avino mine site 
	  
	 the Property or the Project
	  

	 Toronto Stock Exchange 
	  
	 TSX
	  

	 Universal Transverse Mercator 
	  
	 UTM
	  

	 water displacement 
	  
	 WD
	  

	 west 
	  
	 W
	  

	 zinc 
	  
	 Zn
	  

 
 
 
 
 
 
 
 
 
 
 
  
 
 	 
	xiv
	

	 

 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 	1.0 SUMMARY

 
 
 
 
 
 
 
 
 
 
   
 1.1 INTRODUCTION
  
 Avino Silver & Gold Mines Ltd. (Avino) is a Canadian-based mining and exploration company listed on the Toronto Stock Exchange (TSX) and the NYSE-American with precious metal properties in Mexico and Canada.
  
 The Avino mine site (the Property or the Project), near Durango, Mexico, is Avino’s principal asset and is the subject of this Technical Report, which includes a current Mineral Resource estimate for the Avino Veins at the Elena Tolosa (ET) Mine, San Gonzalo Veins at the San Gonzalo Mine and for the oxide tailings deposit. 
  
 Avino holds a 99.67% interest in the Property through its subsidiary companies called Compañía Minera Mexicana de Avino, S.A. de C.V. (CMMA) and Promotora Avino, S.A. de C.V. Avino commenced development, including drilling and bulk sampling, on the San Gonzalo Vein in 2010 and this work is ongoing. This marks the resumption of activity on the Property since 2001, when low metal prices and the closure of a key smelter caused the mine to close after having been in operation continuously for 27 years. Between 1976 and 2001, the mine produced approximately 497 t of silver, 3 t of gold, and 11,000 t of copper (Slim 2005a), as well as an apparently undocumented amount of lead.
  
 The majority of the information has been sourced from the data provided by Avino: Avino internal reports, Tetra Tech (2018; 2017; 2013), Slim (2005d), Gunning (2009), and a process plant review memo by Tetra Tech (2019). The majority of the information was provided in English, but some information was written in Spanish and subsequently translated into English.
  
 The purpose of this report is to support an updated Mineral Resource estimated as a result of modified current metal price parameters, new drilling information at the ET Mine (Avino and San Luis) and improved interpretation of the San Gonzalo mineralization trends. There has been no change to the oxide tailings estimate. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
 
 
  
 	 
	1-1
	

	 

 
 
 
 
    
 	 
	 

 
 
 
 
 
    
 1.2 PROPERTY DESCRIPTION AND LOCATION
  
 The Property is located in Durango State in North Central Mexico, within the Sierra Madre Silver Belt, 82 km northeast of Durango City (Figure 1.1). CMMA (Avino’s Mexican subsidiary company) holds 42 mineral concessions, totalling 5,271.521 ha (see Table 1.1 and Appendix A).
  
 Table 1.1 CMMA Mineral Concessions
  
 	 Property
	 Title Certificate
	 Area (Ha)
	 Expiry

	 Ana Maria
	 215702
	 733.376
	 August 2, 2052

	 Ana Maria 2
	 211271
	 8.336
	 April 27, 2050

	 Ana Maria 3
	 211741
	 87.664
	 June 29, 2050

	 Ana Maria 4
	 212385
	 315.147
	 October 3, 2050

	 Ana Maria 6
	 213291
	 28.000
	 April 19, 2051

	 Ana Maria 5
	 213811
	 90.000
	 July 2, 2051

	 Ana Maria 5 Fracc.
	 213812
	 28.702
	 July 2, 2051

	 Ana Maria Reduc. Frac. 1
	 215703
	 293.928
	 March 4, 2052

	 Ana Maria Reduc. Fracc. 2
	 215704
	 963.896
	 August 2, 2049

	 Ampl. de la Potosina
	 185326
	 84.000
	 December 13, 2039

	 Ampl. a San Gonzalo
	 191837
	 5.850
	 December 18, 2041

	 Ampl. La Malinche
	 204177
	 6.010
	 December 17, 2046

	 El Potrerito
	 185328
	 9.000
	 December 13, 2039

	 La Malinche
	 203256
	 9.000
	 June 27, 2046

	 Potosina
	 185336
	 16.000
	 December 13, 2039

	 San Gonzalo
	 190748
	 12.000
	 April 28, 2041

	 Yolanda
	 191083
	 43.458
	 April 28, 2041

	 San Jose
	 164985
	 8.000
	 August 12, 2029

	 El Trompo
	 184397
	 81.547
	 October 12, 2039

	 Gran Lucero
	 189477
	 161.468
	 December 4, 2040

	 Purisima Chica
	 155597
	 136.708
	 September 29, 2021

	 San Carlos
	 117411
	 4.451
	 December 16, 2061

	 San Pedro y San Pablo
	 139615
	 12.000
	 June 21, 2061

	 Aguila Mexicana
	 215733
	 36.768
	 June 29, 2044

	 Aranjuez
	 214612
	 96.000
	 October 1, 2051

	 Avino Grande IX
	 216005
	 19.558
	 April 1, 2052

	 Avino Grande VIII
	 215224
	 22.882
	 February 13, 2052

	 El Caracol
	 215732
	 102.382
	 April 28, 2044

	 El Fuerte
	 216103
	 100.327
	 December 14, 2048

	 Fernando
	 205401
	 72.129
	 August 28, 2047

	 La Cruz
	 215672
	 16.000
	 March 4, 2052

	 Estela
	 179658
	 14.000
	 December 10, 2036

	 Los Angeles
	 154410
	 23.713
	 March 24, 2021

	 Negro Jose
	 218252
	 58.000
	 October 16, 2052

	 San Martin de Porres
	 222909
	 30.000
	 September 14, 2054

	 Santa Ana
	 195678
	 136.182
	 September 13, 2042

	 El Laberinto
	 218799
	 91.710
	 January 16, 2053

	 El Hueco
	 224519
	 602.897
	 May 16, 2055

	 El Hueco 2
	 210421
	 595.198
	 October 7, 2049

	 El Hueco 2 Frac.
	 210422
	 95.239
	 October 7, 2049

	 El Hueco 3
	 213004
	 15.000
	 February 19, 2051

	 El Hueco 4
	 213021
	 5.000
	 March 1, 2051

	 Total
		 5271.521
	

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
 
  
 	 
	1-2
	

	 

 
 
 
 
    
 	 
	 

 
 
 
 
 
      
 Figure 1.1 General Location of the Property
  
 
 Source: Avino
  
 Avino entered into an agreement (the Agreement) on February 18, 2012 through its subsidiary company, with Minerales de Avino, Sociedad Anonima de Capital Variable (Minerales), whereby Minerales has indirectly granted to Avino the exclusive mining and occupation rights to the La Platosa concession. The La Platosa concession covers 98.83 ha and hosts the Avino Vein and ET Zone.
  
 Pursuant to the Agreement, Avino has the exclusive right to explore and mine the concession for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the grant of these rights, Avino has paid to Minerales the sum of US$250,000 by the issuance of 135,189 common shares of Avino. Avino has also agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (NSRs), at the commencement of commercial production from the concession.
  
 All concessions are current and up to date based on information received. Mineral concessions in Mexico do not include surface rights and Avino has entered into agreements with communal landowners (Ejidos) of San Jose de Avino, Panuco de Coronado and Zaragoza for the temporary occupation and surface rights of the concessions.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
 
  
 	 
	1-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 1.3 GEOLOGY AND MINERALIZATION
  
 The Property is located within the Sierra de Gamon, on the east flank of the Sierra Madre Occidental. The area is a geological window into the Lower Volcanic series and consists of volcanic rocks of mainly Andesitic affiliation with other rock types occurring more sparsely to the north (Slim 2005d).
  
 A large monzonitic intrusion is observed in the region in the form of dykes and small stocks, which may be related to the Avino Vein mineralization. Several younger, thin mafic sills are also found in various parts of the region.
  
 The Avino concession is situated within a 12 km north-south by 8.5 km caldera, which hosts numerous low sulphidation epithermal veins, breccias, stockwork, and silicified zones. These zones grade into a “near porphyry” environment in the general vicinity of the Avino property. The caldera has been uplifted by regional, north-trending block faulting (a graben structure), exposing a window of andesitic pyroclastic rocks of the lower volcanic sequence, which is a favourable host rock. The upper volcanic sequence consists of rhyolite to trachytes with extensive ignimbrite and is intruded by monzonite bodies. The basal andesite-bearing conglomerate and underlying Paleozoic basement sedimentary rocks (consisting of shales, sandstones, and conglomerates) have been identified on the Avino concession in the south-central portion of the caldera, covering the Guadalupe, Santiago, San Jorge, the San Gonzalo Trend, Malinche, Porterito, and Yolanda areas.
  
 A northerly trending felsic dyke, probably a feeder to the upper volcanic sequence, transects the Property and many of the veins. The Aguila Mexicana low temperature vein system, with significant widths but overall low precious metal values, trends north‐northwest, similar to the felsic dyke and with similar continuity across the Property. The two structures may occupy deep crustal faults that controlled volcanism and mineralization, with the felsic dyke structure controlling the emplacement of the Avino, Nuestra Senora, and El Fuerte-Potosina volcanic centres and the Aguila Mexicana controlling the Cerro San Jose and El Fuerte-Potosina volcanic centres (Paulter 2006).
  
 Silver- and gold-bearing veins crosscut the various lithologies and are generally oriented north-northwest to south-southeast (the Avino Vein trend) and northwest to southeast the San Gonzalo trend). In Mexico, these vein deposits may have large lateral extents, but can be limited in the vertical continuity of grades due to the effects of pressure on boiling levels for mineralizing fluids. The rocks have been weathered and leached in the upper sections, as a result of contact with atmospheric waters. The oxide tailings material is derived primarily from these shallow zones, whereas the sulphide tailings are predominantly from material sourced at depth from the underground workings. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 The valuable minerals found during the period of mining of the oxide zone are reported to be argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver and gold, and native copper.
    
 Three deposits, the Avino Vein, the San Gonzalo Vein, and the oxide tailings deposit, are the subject of Mineral Resource estimates disclosed in this report. Recent exploration drilling reported at the Guadalupe and San Juventino veins is at an early stage and no Mineral Resources have been estimated for these two veins.
   
 Figure 1.2 Perspective View of the Property Looking North and Showing the Three Deposits
   
 
 Source: Red Pennant
  
 1.3.1 THE AVINO VEIN
  
 The Avino Vein (see Figure 1.2 for location) has been and continues to be the primary deposit mined on the Property since at least the 19th century. It is 1.6 km long and up to 60 m wide on the surface. The deepest level is at the 1,930 m amsl level (430 m below surface).
  
 1.3.2 THE SAN GONZALO VEIN
  
 The San Gonzalo Vein system (see Figure 1.2 for location), including the crosscutting Angelica Vein, is located 2 km northeast of the Avino Vein. It constitutes a strongly developed vein system over 25 m across, trending 300° to 325°/80° northeast to 77° south. Banded textures and open-space filling are common and individual veins have an average width of less than 2 m. The vein was mined historically and underground workings extend approximately 1.1 km along strike and to the 1,970 m amsl (300 m below surface).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-5
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 1.3.3 THE OXIDE TAILINGS
  
 The oxide tailings deposit (see Figure 1.2 for location) comprises historic recovery plant residue material that was wasted from processing plants during the earlier period of open pit mining of the Avino Vein. The oxide tailings are partially covered by younger unconsolidated sulphide tailings on the northwest side. 
  
 1.4 RESOURCE ESTIMATES
  
 The Avino system, San Gonzalo system, and oxide tailings Mineral Resources were modelled and estimated using Leapfrog EDGETM software version 4.2.3. The reported Mineral Resource estimated by Red Pennant Geoscience was interpolated using ordinary kriging (OK) and capped grades and inverse distance squared (ID2) and nearest neighbour (NN) for model validation purposes. The Avino system was estimated for silver, gold, and copper. The San Gonzalo Vein system and oxide tailings were estimated for silver and gold. Under current economic and technical conditions, gold and silver and copper are recoverable from the Avino system and all three metals are included in the Mineral Resource and for the silver equivalent (AgEQ) calculation for the Avino system. Under current economic and technical conditions, only gold and silver are recoverable from the San Gonzalo system and the oxide tailings, and consequently, only silver and gold are included in the Mineral Resource and for the AgEQ calculation for the San Gonzalo system and oxide tailings. Cut-off reporting (to consider “eventual prospects for eventual economic extraction”) utilizes an AgEQ calculation where the total metal value is converted into an in situ silver resource. For reporting purposes, a base case AgEQ cut-off of 60 g/t is used for the Avino system, an AgEQ cut-off of 130 g/t is used for the San Gonzalo system, and an AgEQ cut-off of 50 g/t is used for the oxide tailings based on current economic parameters.
  
 Table 1.2 is the Mineral Resource statement. Other grade tonnage graphs and tables found in Section 14.0 are intended to show sensitivity of the mineralized material and must not be considered Mineral Resources.
  
 It must be noted that no Mineral Resource has been estimated for the sulphide tailings portion of the Property.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	1-6
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Table 1.2 Mineral Resources at the Avino Property
   
 	 Resource Category
	 Deposit
	 Cut-off
(AgEQ g/t)
	 Metric Tonnes
	 Grade
	 Metal Contents

	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)
	 AgEQ
(million tr oz)
	 Ag
(million tr oz)
	 Au
(thousand tr oz)
	 Cu
(tonnes)

	 Measured and Indicated Mineral Resources

	 Measured
	 Avino – ET
	 60
	 4,760,000
	 120
	 74
	 0.63
	 0.55
	 18.4
	 11.3
	 97
	 26,300

	 Measured
	 San Gonzalo System
	 130
	 267,000
	 356
	 263
	 1.36
	 0.00
	 3.1
	 2.3
	 12
	 0

	 Total Measured
	 All Deposits
	  
	 5,027,000
	 133
	 84
	 0.67
	 0.52
	 21.5
	 13.6
	 109
	 26,300

	 Indicated
	 Avino – ET
	 60
	 13,890,000
	 107
	 59
	 0.68
	 0.41
	 47.9
	 26.5
	 304
	 56,700

	 Indicated
	 San Gonzalo System
	 130
	 216,000
	 304
	 230
	 1.09
	 0.00
	 2.1
	 1.6
	 8
	 0

	 Indicated
	 Oxide Tailings
	 50
	 1,120,000
	 124
	 89
	 0.42
	 0.00
	 4.5
	 3.2
	 15
	 0

	 Total Indicated
	 All Deposits
	  
	 15,226,000
	 111
	 64
	 0.67
	 0.37
	 54.5
	 31.3
	 327
	 56,700

	 Total Measured and Indicated
	 All Deposits
	  
	 20,253,000
	 117
	 69
	 0.67
	 0.41
	 75.9
	 44.9
	 436
	 83,000

	 Inferred Mineral Resources

	 Inferred
	 Avino – ET
	 60
	 5,230,000
	 95
	 51
	 0.64
	 0.34
	 16.0
	 8.5
	 108
	 17,700

	 Inferred
	 San Gonzalo System
	 130
	 85,000
	 298
	 233
	 0.96
	 0.00
	 0.8
	 0.6
	 3
	 0

	 Inferred
	 Oxide Tailings
	 50
	 1,230,000
	 125
	 85
	 0.47
	 0.00
	 5.0
	 3.4
	 19
	 0

	 Total Inferred
	 All Deposits
	  
	 6,545,000
	 103
	 59
	 0.61
	 0.27
	 21.8
	 12.5
	 129
	 17,700

 
 
 
 
 
 
 
 
 
 
  
 	 Notes: 
	 Figures may not add to totals shown due to rounding.

	  
	 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

	  
	 The Mineral Resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects.

	  
	 Based on recent mining costs (Section 21) Mineral Resources are reported at cut-off grades 60 g/t, 130 g/t, and 50 g/t AgEQ grade for ET, San Gonzalo, and oxide tailings, respectively. 

	  
	 AgEQ or silver equivalent ounces are notational, based on the combined value of metals expressed as silver ounces 

	  
	 Cut-off grades were calculated using the following consensus metal price assumptions: gold price of US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb.

	  
	 Metal recovery is based on operational results and column testing and is shown in Table 14.2.

	  
	 The silver equivalent was back calculated using the following formulas: ET AgEQ = Ag + 65.1 * Au + 8.66 * Cu ppm / 10,000 ; SG AgEQ =  Ag + 72.54 * Au; Oxide Tailings AgEQ = Ag + 84.55 * Au.

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-7
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 1.5 MINERAL PROCESSING, METALLURGICAL TESTING AND RECOVERY METHODS
  
 There are three separate mineralization sources in the Property, including the ET Mine, San Gonzalo Mine, and the potential tailings resource from previous milling operations. Only the ET Mine is currently in operation. The San Gonzalo Mine has reached the end of its current resources, and underground mining activities at the mine were stopped in Q4 2019. However, the mine remains open for continued exploration at different levels of the mine. There is no operation for the potential tailings resource; a Preliminary Economic Assessment (PEA) for the oxide tailings resources was completed in 2017, The San Gonzalo Mine entered commercial production in October 2012, followed by reopening the ET Mine in January 2015. The two mines feed a conventional flotation mill that has three separate circuits and a total capacity of 1,500 t/d. In 2018, a new circuit (Circuit #4), which has a processing capacity of 1,000 t/d, was installed and commissioned to process materials from the historic above ground stockpiles (HAGS) in the initial stage and now the circuit is used to process the material from the ET Mine. The overall mill capacity was increased to 2,500 t/d. 
  
 The existing crushing plant has also been upgraded to accommodate the higher throughput by installing a new larger tertiary cone crusher. A centrifugal gravity concentrator has also been installed in all  four processing circuits to recover a high-grade gold/silver concentrate suitable for dispatching directly to a smelter.
  
 This Mineral Resource Update (Technical Report) should not be considered to be a PEA, Prefeasibility Study (PFS), or Feasibility Study (FS), as the economics and technical viability of the Project have not been demonstrated at this time. The information listed in this section of the Mineral Resource Update is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the technical report will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and multiple technical and economic risks of failure that are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. Information in this section was provided by Avino.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	1-8
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 1.5.1 AVINO VEIN
  
 Avino is currently conducting mining activity on the Avino Vein and processing Avino Vein material at the mine plant. Historically, prior to the mine shutting down in 2001, Avino operated a 1,000 t/d processing plant, achieving up to 1,300 t/d, producing a copper concentrate that was sold to a smelter in San Luis Potosi for approximately 27 years. The mine and mill operations were then suspended. Following several years of redevelopment, Avino completed the mine and mill expansion in Q4 2014. On January 1, 2015, full-scale operations commenced and commercial production was declared effective April 1, 2016 following a 19 month advancement and test period.
  
 The processing plant consists of conventional crushing, grinding, flotation, and dewatering circuits. After upgrading, the plant now has a total capacity of 2,500 t/d for processing the materials from the Avino Veins. The crushing plant consists of a conventional three-stage crushing circuit with the tertiary crusher in closed circuit with a screen. The crushed material is fed to a ball mill and classified with a hydrocyclone at a grind size of approximately 65% to 75% passing 200 mesh. There are four grinding/flotation processing lines. The fines from the hydrocyclone reports to the flotation circuit where typical flotation reagents for floating copper minerals are used. Centrifugal gravity concentrators have also been installed in the processing circuits to recover coarse nugget precious metals into a high-grade gold/silver concentrate. The concentrates from the rougher and scavenger circuits are upgraded in a cleaner circuit with the final concentrate reporting to three dewatering systems, each consisting of a thickener and a pressure filter. The moisture of the filter cakes is approximately 9%, and the concentrates are then shipped for sale overseas. 
  
 All the flotation tailings from the four flotation circuits are pumped to a thickener, which was installed in Q1 2019 and in operation in Q2 2019. The tailings thickening process has improved the deposition of the tailings and the water management and usage. The thickener overflow, together with the decant water from the permitted tailings impoundment areas, is reclaimed for process use. The thickened tailings is now stored in the lined historical open pit. Also, dry stacking tailings with pressure filters (plate-frame type) has been planned to further conserve the process water consumption. The tailings cakes are planned to be stored in a new tailings storage facility, which has been permitted.
  
 1.5.2 SAN GONZALO VEIN
  
 Avino is currently not conducting mining activity on the San Gonzalo Vein, including processing of San Gonzalo Vein material at the mill plant at the Avino mine site. The San Gonzalo Mine stopped its operation in Q4 2019 due to it reaching the end of its resources at that time.
  
 Previously, the processing circuit consisted of crushing and grinding circuits, followed by a gravity and flotation to recover and upgrade lead, zinc, silver, and gold from the feed material. Common reagents were used within the flotation circuit as well. The flotation concentrate was thickened, filtered to 9.0% moisture content, and sent to the concentrate stockpile for subsequent shipping to customers. The circuit has now been upgraded to process the materials from the Avino Vein.
  
 The final flotation tailings was disposed of in the existing permitted tailings storage facility.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-9
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 1.5.3 OXIDE TAILINGS
  
 Currently there is no metal recovery operation on the stored tailings. As reported by MineStart Management Inc. (MMI) and Process Research Associates Ltd. (PRA), several metallurgical work programs were conducted to investigate silver and gold recovery from the tailings. 
  
 The test work investigated various treatment methods, including gravity separation, flotation, and cyanide leaching (tank leaching and heap leaching). The preliminary test results appear to show that the tailings materials responded reasonably well to the cyanide leaching treatment, including tank leaching and column leaching testing procedures. An updated preliminary economical assessment was conducted in 2017 to evaluate the recovery of silver and gold from the oxide tailings using heap leaching technology followed by the Merrill-Crowe treatment on the pregnant leach solution.
  
 The processing step will consist of tailings reclamation, agglomeration, and cyanide heap leaching followed by the Merrill-Crowe process to recover silver and gold from the pregnant solution. The process plant will operate at a throughput rate of 1,370 t/d on a 24 h/d, 365 d/a basis, with an overall utilization of 90%.
  
 1.5.4 SULPHIDE TAILINGS
  
 Avino is not currently conducting mining activity on the sulphide tailings. Because some of the oxide tailings and sulphide tailings were co-deposited, and the oxide tailings are partially covered by younger unconsolidated sulphide tailings on the northwest side of the tailings storage dam, the sulphide tailings materials will be reclaimed as required during the oxide tailings reclamation. The reclaimed sulphide tailings is planned to be stored in a separate sulphide tailings storage facility for further evaluation, while some of the sulphide tailings could be used for constructing the heap leach pad and facilities for the oxide tailings retreatment; however, no quantities have been estimated at this stage. In addition, no recovery methods are currently proposed for the sulphide tailings, which have been excluded from this estimate.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-10
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 1.6 MINING METHODS
 
1.6.1 AVINO VEIN
   
 Avino is currently conducting mining activity on the Avino Vein using sublevel stoping and room and pillar mining methods and has been processing the HAGS material since 2018.
  
 Avino has not based its production decisions on the Avino Vein with any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. The information in this section was provided by Avino.
  
 Production from the Avino Vein is summarized in Table 1.3, up to the most recent activities in the third quarter of 2020. This data is summarized from the information listed in Avino’s press releases. The production rate and processing of the HAGS material is presented in Table 1.3 and Table 1.4.
  
 Table 1.3 Production from the Avino Vein (2017 to Q3 2020)
  
 	 Production Description
	 As of Q3, 2020
	 2019
	 2018
	 2017

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 199,575
	 427,147
	 426,794
	 460,890

	 Feed Grade

	 Silver (g/t)
	 54
	 44
	 53
	 64

	 Gold (g/t)
	 0.40
	 0.45
	 0.49
	 0.52

	 Copper (%)
	 0.58
	 0.56
	 0.55
	 0.48

	 Recovery

	 Silver (%)
	 90
	 85
	 84
	 85

	 Gold (%)
	 75
	 73
	 69
	 69

	 Copper (%)
	 88
	 86
	 87
	 89

	 Total Metal Produced

	 Silver Produced (oz)
	 312,819
	 510,265
	 614,369
	 803,438

	 Gold Produced (oz)
	 1,916
	 4,473
	 4,625
	 5,259

	 Copper Produced (lb)
	 2,263,082
	 4,563,195
	 4,546,952
	 4,373,166

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2018; 2019; 2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-11
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 1.4 Recent Material Feed from the Avino Historic Above Ground Stockpile
   
 	 Production Description
	 2020 (Q1)
	 2019
	 2018

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 4,711
	 306,334
	 202,830

	 Feed Grade

	 Silver (g/t)
	 59
	 55
	 58

	 Gold (g/t)
	 0.31
	 0.36
	 0.41

	 Copper (%)
	 0.15
	 0.18
	 0.16

	 Recovery

	 Silver (%)
	 50
	 54
	 57

	 Gold (%)
	 41
	 53
	 52

	 Copper (%)
	 31
	 35
	 38

	 Total Metal Produced

	 Silver Produced (oz)
	 4,481
	 295,176
	 215,312

	 Gold Produced (oz)
	 19
	 1,859
	 1,397

	 Copper Produced (lb)
	 4,857
	 407,059
	 272,070

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2019; 2020)
  
 1.6.2 SAN GONZALO VEIN
  
 Avino reported that by the fourth quarter of 2019, mining at the San Gonzalo Vein reached the end of its current resources, and underground mining activities at the mine were stopped. However, the mine remains open for continued exploration at different levels of the mine. Historic mine production from the San Gonzalo Vein is summarized in Table 1.5.
  
 Avino has not based its production decisions on the San Gonzalo Vein with any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. The information in this section was provided by Avino.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-12
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 1.5 Recent Production from the San Gonzalo Vein
  
 	 Production Description
	 2019
	 2018
	 2017

	 Mill Feed Tonnage 

	 Tonnes Milled (t)
	 56,179
	 79,140
	 81,045

	 Feed Grade  

	 Silver (g/t)
	 118
	 222
	 269

	 Gold (g/t)
	 0.46
	 1.03
	 1.32

	 Recovery 

	 Silver (%)
	 69
	 77
	 84

	 Gold (%)
	 66
	 75
	 78

	 Total Metal Produced 

	 Silver Produced (oz)
	 153,372
	 456,709
	 590,770

	 Gold Produced (oz)
	 581
	 2,070
	 2,675

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2017; 2018; 2019; 2020)
  
 1.6.3 OXIDE TAILINGS
  
 Avino plans to mine and move the oxide tailings Mineral Resource on site using a conventional truck and loader surface mining equipment. The production cycle consists of loading and trucking (Tetra Tech 2018). However, based on the Qualified Person’s (QP’s) understanding, currently this plan has not been realized. 
  
 1.7 PROJECT INFRASTRUCTURE
  
 The Property is easily accessible by road and is an important part of the local community from which skilled workers are available. The history of operations at the Avino mine site provides ample evidence of sufficient infrastructure and services in the area. The San Gonzalo Mine entered commercial production in October 2012, followed by reopening the ET Mine in January 2015. Currently, only the ET Mine is in operation and the mined materials are fed to a conventional flotation mill that has four separate circuits. The mill, including crushing, grinding, flotation, and downstream dewatering processes, had been upgraded from 1,500 t/d to a total capacity of 2,500 t/d in 2017/2018.  
  
 All the flotation tailings from the four flotation circuits are pumped to a thickener, which started operation in Q2 2019. The thickener overflow, together with the decant water from the permitted tailings impoundment areas, is reclaimed for process use. The thickened tailings is now stored in the lined historical open pit. Also, dry stacking tailings with pressure filters (plate-frame type) has been planned to further conserve the process water consumption. The tailings cakes are planned to be stored in a new tailings storage facility, which has been permitted. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-13
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 The offices, miner’s quarters, secured explosives storage facilities, warehouse, laboratory and other associated facilities are all in place. The proposed tailings leach facilities are planned to be located southeast of the existing tailings storage pond.
  
 Before 2016, the mill was serviced with an existing power line providing only 1,000 kW of power with 500 kW servicing the mill; 400 kW for San Gonzalo Mine; and the balance for the well at Galeana, employee accommodation facility, and water reclaim from the tailings dam. The new power line from Guadelupe Victoria to the mine site was completed in June 2016. The power line was energized and tested on June 8, 2016. The line was fully functional at the design capacity of 5.0 MW. Current power consumption at the mine is approximately 3.5 MW, leaving sufficient additional power for potential future expansion projects, including the proposed oxide tailings retreatment project using heap leach followed by gold and silver recovery by Merrill-Crowe precipitation, and possible further expansion or upgrading of the processing plant. Additionally, the previous power line was left in place to service local communities and provides backup power for the mine. A C-27 CAT diesel power generator, which can produce 700 kW, is now used as backup.
  
 There is a water treatment plant for treating excess water from the Avino underground mine operation before discharging to El Caracol Dam. The effluent is being monitored on a daily basis when the treatment plant is operational. 
  
 1.8 ENVIRONMENTAL
  
 Environmental settings, permits and registrations, and environmental management strategies that may be required for the Project are summarized in Section 20.0. Permits and authorizations required for the operation of the Project may include an operating permit, an application for surface tenures, a wastewater discharge registration, a hazardous waste generator's registration, and an Environmental Impact Assessment (EIA) or Evaluación de Impacto Ambiental. Acid-base accounting (ABA) tests have indicated that mild acid generation may already have started on the tailings dam. A gap analysis and additional tests to further characterize current conditions of the tailings should be completed to properly design a tailings management plan.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-14
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 1.9 CAPITAL AND OPERATING COSTS
 
1.9.1 CAPITAL COST ESTIMATES
  
 Avino Vein and San Gonzalo Vein
  
 Avino is currently conducting mining activity on the Avino Vein. There is no cost estimate applicable and all costs are based on actual expenditures.
  
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure that are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 The actual capital expenditures (in US dollars) to date on the Avino Vein, including HAGS and San Gonzalo Vein operations, are summarized in Table 1.6 and Table 1.7, respectively. The capital expenditures have been broken down by year and area.
  
 Table 1.6 Capital Costs for the Avino Veinand Historical Stockpiles (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Office Furniture
	 6,774
	 7,284
	 12,657
	 31,468

	 Computer Equipment
	 4,846
	 11,635
	 57,807
	 19,790

	 Mill Machinery and Processing Equipment
	 29,182
	 646,024
	 5,856,952
	 1,507,709

	 Mine Machinery and Transportation Equipment
	 22,721
	 150,023
	 864,697
	 826,298

	 Buildings and Construction
	 877,797
	 1,817,341
	 855,731
	 2,863,712

	 ET Mineral Property – Avino
	 28,495
	  106,395
	 692,992
	 800,606

	 Total Capital Costs
	 969,815
	 2,738,702
	 8,340,836
	 6,049,583

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-15
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 1.7 Capital Costs for the San Gonzalo Vein (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Office Furniture
	 -
	 862
	 4,320
	 11,579

	 Computer Equipment
	 -
	 1,377
	 19,732
	 7,282

	 Mill Machinery and Processing Equipment
	 -
	 76,452
	 1,999,208
	 554,786

	 Mine Machinery and Transportation Equipment
	 -
	 17,754
	 295,155
	 304,050

	 Buildings and Construction
	 -
	 204,229
	 276,808
	 63,494

	 San Gonzalo Vein Mineral Property
	 -
	 6,455
	 336,270
	 430,721

	 Total Capital Costs
	 -
	 307,129
	 2,931,493
	 1,371,912

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020)
  
 TAILINGS RESOURCES
  
 The capital costs for retreating the oxide tailings portion of the Property, including reclaiming the oxide tailings, constructing the heap leach pad, and the treatment facilities, were estimated and reported in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017. 
  
 The estimated capital cost was US$28.8 million (US$24.4 million of initial capital plus US$4.4 million sustaining capital).
  
 A PEA should not be considered to be a PFS or FS, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No capital costs have been estimated for any potential mining activity on the sulphide tailings portion of the Property.
  
 1.9.2 OPERATING COST ESTIMATES
  
 AVINO VEIN AND SAN GONZALO VEIN 
  
 Avino is currently conducting mining activity on the Avino Vein. The San Gonzalo Mine has reached the end of its current resources, and underground mining activities at the mine were stopped in Q4 2019. However, the mine remains open for continued exploration at different levels of the mine. The materials from the HAGS were processed between 2018 and Q1 2020. There is no cost estimate applicable and all costs are based on actual expenditures.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-16
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure that are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 The actual operating costs (in US dollars) for the Avino Vein, the HAGS and the San Gonzalo Mine between 2017 and Q3 2020 are presented in Table 1.8 to Table 1.10.
  
 The mine and milling costs include operating and maintenance labour together with the operation-associated consumable supplies. The cost for electrical power is included in the milling costs. The geological component is mostly related to technical labour.
  
 Table 1.8 Operating Costs for the Avino Vein (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 4,966,974
	 8,777,422
	 7,169,065
	 6,481,920

	 Milling Cost
	 2,651,478
	 4,281,708
	 4,024,935
	 4,221,422

	 Geological and Other
	 2,809,488
	 3,571,538
	 3,447,220
	 3,253,354

	 Royalties
	 458,353
	 499,368
	 690,004
	 734,732

	 Depletion and Depreciation
	 1,677,638
	 2,552,149
	 1,598,581
	 1,396,967

	 Total Direct Costs
	 12,563,930
	 19,682,185
	 16,929,804
	 16,088,395

	 G&A
	 2,989,270
	 2,658,761
	 2,706,890
	 16,976,642

	 Total Operating Costs
	 15,553,200
	 22,340,946
	 19,636,694
	 33,065,037

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020)
  
 Table 1.9 Operating Costs for the Historical Stockpile Materials (US$)
  
 	 Description
	 Q1 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 79,620
	 505,341
	 269,565
	 -

	 Milling Cost
	 392,075
	 4,210,514
	 1,667,595
	 -

	 Geological and Other
	 104,793
	 857,843
	 353,026
	 -

	 Royalties
	 19,141
	 228,241
	 0
	 -

	 Depletion and Depreciation
	 14,409
	 416,861
	 247,834
	 -

	 Total Direct Costs 
	 610,038 
	 6,218,800 
	 2,538,020 
	 - 

	 G&A
	 136,547
	 1,175,291
	 354,902
	 -

	 Total Operating Costs 
	 746,585 
	 7,394,091 
	 2,892,922 
	 - 

 
 
 
 
 
 
 
 
 
 
  Source: Avino (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	1-17
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 1.10 Operating Costs for the San Gonzalo Vein (US$)
  
 	 Description
	 Q1-Q3 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 -
	 4,208,889
	 4,953,380
	 3,615,976

	 Milling Cost
	 -
	 725,350
	 1,028,396
	 596,656

	 Geological and Other
	 -
	 82,766
	 1,015,950
	 644,784

	 Royalties
	 -
	 0
	 0
	 0

	 Depletion and Depreciation
	 -
	 711,145
	 1,384,274
	 1,160,319

	 Total Direct Costs
	 -
	 5,728,150
	 8,382,000
	 6,017,735

	 G&A
	 -
	 448,775
	 1,133,698
	 5,738,873

	 Total Operating Costs
	 -
	 6,176,925
	 9,515,698
	 11,756,608

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020)
    
 TAILINGS RESOURCES
  
 The operating costs for retreating the oxide tailings portion of the Property, including reclaiming the oxide tailings, were estimated to be US$15.06/t. The detailed estimates are reported in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017.
  
 A PEA should not be considered to be a PFS or FS, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No operating costs have been estimated for any potential mining activity on the sulphide tailings portion of the Property.
  
 1.10 ECONOMIC ANALYSIS
 
1.10.1 AVINO AND SAN GONZALO VEINS
  
 Avino is currently conducting mining activity, including mineral processing, on the Avino Vein. There is no economic analysis performed on the vein. 
  
 Avino has not based its production decisions on the Avino Vein with any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 	 Avino Silver & Gold Mines Ltd.
	  
	
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	1-18
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 1.10.2 TAILINGS RESOURCES
  
 In 2017, Tetra Tech prepared a PEA technical report for the silver and gold recoveries from the oxide tailings, entitled “Technical Report on the Avino Property”, dated April 11, 2017.
  
 A PEA should not be considered to be a PFS or FS, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 The report includes a preliminary economic evaluation for the oxide tailings retreatment based on a pre-tax financial model. Metal prices used in the base case for the preliminary economic evaluation were:
  
 	  
	 ·
	gold – US$1,250/oz
	  
	  
	  

	  
	 ·
	silver – US$18.50/oz.

 
 
 
 
 
 
 
 
 
 
  
 The pre-tax financial results were:
  
 	  
	 ·
	48.4% internal rate of return (IRR)
	  
	  
	  

	  
	 ·
	2.0-year payback period
	  
	  
	  

	  
	 ·
	US$40.5 million net present value (NPV) at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
  
 Avino commissioned PricewaterhouseCoopers (PwC) in Vancouver to prepare the tax component of the model for the post-tax economic evaluation for this updated PEA with the inclusion of applicable income and mining taxes.
  
 The following post-tax financial results were calculated:
  
 	  
	 ·
	32% IRR
	  
	  
	  

	  
	 ·
	2.6-year payback period
	  
	  
	  

	  
	 ·
	US$22.2 million NPV at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No economical assessments have been conducted for any potential mining activity on the sulphide tailings portion of the Property.
  
 1.11 RECOMMENDATIONS
  
 Recommendations for further Mineral Resource estimates are presented in Section 26.0.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1-19
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 	2.0 INTRODUCTION

 
 
 
 
  
 Avino is a Canadian-based mining and exploration company listed on the TSX and the NYSE-American trading under the symbol ASM. Avino has precious metal properties in Mexico and Canada and has a head office located at 900-570 Granville Street, Vancouver, British Columbia, Canada, V6C 3P1.
  
 Avino retained Tetra Tech, in conjuction with Red Pennant Geoscience, to prepare an update of resource estimate on the Avino Property in Durango, Mexico. The purpose of this Technical Report is to disclose three updated mineral resource estimates for the Avino Vein, the San Gonzalo Vein, and Oxide Tailings portions of the Property. This Technical Report also includes a summary of the information previously disclosed in the Tetra Tech report filed in 2017, comprising a preliminary economic assessment on the oxide tailings portion of the Property. This Technical Report has been prepared in accordance with National Instrument 43-101 (NI 43-101) and Form 43-101F1.
  
 2.1 EFFECTIVE DATES
  
 The effective date of this Technical Report is January 13, 2021. The effective date of the Mineral Resource estimate is October 31, 2020. 
  
 Latest information on mineral tenure, surface rights, and Property ownership: December 30, 2020.
  
 2.2 SITE VISITS AND QUALIFIED PERSONS
  
 A summary of the Qualified Persons (QPs) responsible for this Technical Report is provided in Table 2.1. The following QPs conducted site visits of the Property:
  
 	  
	 ·
	 Hassan Ghaffari, P.Eng., M.A.Sc., visited the site on March 30, 2011; December 12, 2017; and from August 12 to 14, 2019.

	  
	  
	  

	  
	 ·
	 Michael F. O’Brien, P.Geo., M.Sc., Pr.Scit.Nat., FAusIMM, FSAIMM, visited the site from June 12 to 15, 2017 and February 12 to 14, 2020.

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	2-1
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 2.1 Summary of QPs
  
 	 Report Section
	 Company
	 QP

	 1.0      Summary
	 All
	 Sign-off by Section

	 2.0      Introduction
	 Tetra Tech
	 Hassan Ghaffari, P.Eng., M.A.Sc.

	 3.0      Reliance on Other Experts
	 Red Pennant Geoscience
Tetra Tech

	 4.0      Property Description and Location
	 Red Pennant Geoscience
	 Michael F. O’Brien, P.Geo., M.Sc., Pr.Sci.Nat., FAusIMM, FSAIMM

	 5.0      Accessibility, Climate, Local Resources, Infrastructure and Physiography
	 Red Pennant Geoscience

	 6.0      History
	 Red Pennant Geoscience

	 7.0      Geological Setting and Mineralisation
	 Red Pennant Geoscience

	 8.0      Deposit Types
	 Red Pennant Geoscience

	 9.0      Exploration
	 Red Pennant Geoscience

	 10.0    Drilling
	 Red Pennant Geoscience

	 11.0    Sample Preparation, Analyses and Security
	 Red Pennant Geoscience

	 12.0     Data Verification
	 Red Pennant Geoscience

	 13.0    Mineral Processing and Metallurgical Testing
	 Tetra Tech
	 Jianhui (John) Huang, Ph.D., P.Eng.

	 14.0    Mineral Resource Estimates
	 Red Pennant Geoscience
	 Michael F. O’Brien, P.Geo., M.Sc., Pr.Sci.Nat., FAusIMM, FSAIMM

	 15.0    Mineral Reserve Estimates
	 Tetra Tech
	 Hassan Ghaffari, P.Eng., M.A.Sc.

	 16.0    Mining Methods
	 Tetra Tech
	 Barnard Foo, P.Eng., M.Eng.

	 17.0    Recovery Methods
	 Tetra Tech
	 Jianhui (John) Huang, Ph.D., P.Eng.

	 18.0    Project Infrastructure
	 Tetra Tech
	 Hassan Ghaffari, P.Eng., M.A.Sc.

	 19.0    Market Studies and Contracts
	 Tetra Tech
	 Jianhui (John) Huang, Ph.D., P.Eng.

	 20.0    Environmental Studies, Permitting and Social or Community Impact
	 Tetra Tech
	 Hassan Ghaffari, P.Eng., M.A.Sc.

	 21.0    Capital and Operating Costs
	 Tetra Tech

	 22.0    Economic Analysis
	 Tetra Tech

	 23.0    Adjacent Properties
	 Red Pennant Geoscience
	 Michael F. O’Brien, P.Geo., M.Sc., Pr.Sci.Nat., FAusIMM, FSAIMM

	 24.0    Other Relevant Data and Information
	 Tetra Tech
	 Hassan Ghaffari, P.Eng., M.A.Sc.

	 25.0    Interpretation and Conclusions
	 All
	 Sign-off by Section

	 26.0    Recommendations
	 All

	 27.0    References
	 All

	 28.0    Certificates of Qualified Persons
	 All

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	2-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 2.3 INFORMATION AND DATA SOURCES
  
 In preparation of this Technical Report, various historical engineering, geological, and management reports compiled about the Project or site were reviewed and supplemented by direct site examinations and investigations. All the data files reviewed for this study were provided by Avino in the form of hard copy documents, electronic .pdf reports, .xls files, email correspondence, and personal communication with management and personnel from Avino. Work completed by Avino includes several decades of open pit and underground mining, drilling and sampling, trenching, metallurgical testing, and geophysical surveying.
  
 The main sources of information in preparing this Technical Report are:
  
 	  
	 ·
	 Gunning, D. (2009). Resource Estimate on the San Gonzalo Vein – A Part of the Avino Mine, Durango, Mexico, for Avino Silver and Gold Mines Ltd. Prepared by Orequest. August 31, 2009.

	  
	  
	  

	  
	 ·
	 Slim, B. (2005d). A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. October 25, 2005.

	  
	  
	  

	  
	 ·
	 Tetra Tech and QG Australia (Pty) Ltd. (2016). Amended Resource Estimate Update for the Avino Property, Durango, Mexico. Prepared for Avino Silver & Gold Mined Ltd. October 27, 2016.

	  
	  
	  

	  
	 ·
	 Tetra Tech (2017). Technical Report on the Avino Property, Durango, Mexico. Prepared for Avino Silver & Gold Mined Ltd. April 11, 2017.

	  
	  
	  

	  
	 ·
	 Tetra Tech (2018). Amended Mineral Resource Estimate Update for the Avino Property, Durango, Mexico. Prepared for Avino Silver & Gold Mined Ltd. February 21, 2018.

	  
	  
	  

	  
	 ·
	 Tetra Tech (2019). Process Plant Review Memo by Andre de Ruijter and Hassan Ghafari, September 20, 2019.

 
 
 
 
 
 
 
 
 
 
  
 A complete list of references is provided in Section 27.0.
  
 2.4 UNITS OF MEASUREMENT
  
 All units of measurement used in this Technical Report and resource estimate are in metric units, and the currency is expressed in US dollars, unless otherwise stated.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	2-3
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 	 3.0 RELIANCE ON OTHER EXPERTS

 
 
 
 
 
 
 
 
 
 
  
 This Technical Report Update has been prepared by Michael O’Brien, P.Geo,, M.Sc., Pr.Scit.Nat., FAusIMM, FSAIMM, of Red Pennant Geoscience, and Hassan Ghaffari, P.Eng., M.A.Sc., Jianhui Huang, Ph.D., P.Eng., and Barnard Foo, P.Eng., M.Eng., all of Tetra Tech. All authors are independent QPs as defined within the requirements of NI 43‐101.
  
 Michael F. O’Brien, P.Geo., Pr.Sci.Nat., FAusIMM, FSAIMM relied on Mr. Bufete González Olguín, President of Bufete González Olguín Abogado/Attorney-at-Law, for matters relating to mineral claims status and ownership. The reliance is based on a letter from Bufete Gonzalez Olguin to Avino’s Mexican Subsidiary Compañía Minera Mexicana de Avino, S.A.de C.V. titled “Avino Mexican Mineral Properties (the ‘Properties’)”, dated February 11, 2020. Michael F. O’Brien, P.Geo., Pr.Sci.Nat., FAusIMM, FSAIMM, who is responsible for the information in Section 4.0, has relied entirely on the information provided by Mr. Bufete González Olguín regarding the claims, which comprise the Avino property, their ownership, and their status in Section 4.0.
  
 The information, conclusions, opinions, and estimates contained herein are based on:
  
 	  
	 ·
	information available to the authors at the time the report was prepared
	  
	  
	  

	  
	 ·
	assumptions, conditions, and qualifications as outlined in this report
	  
	  
	  

	  
	 ·
	production and expenditure data, reports, and other information supplied by Avino and other third-party sources.

 
 
 
 
 
 
 
 
 
 
  
 Avino reported to the authors that, to the best of its knowledge, there is no known litigation that could potentially affect the Project.
  
 Note: The authors of this report are not qualified to provide extensive commentary on legal or political issues associated with the Property, which are considered to be outside the scope of this Technical Report. For the portions of this Technical Report (Sections 1.2, 4.2, and 4.3) that deal with the types and numbers of mineral tenures and licenses; the nature and extent of title and interest in the Property; and the terms of any royalties, back‐in rights, payments, or other agreements and encumbrances to which the Property is subject, we have relied upon the title opinion dated February 11, 2020 by Juan Manuel Gonzalez Olguin of the Mexican law firm Bufete Gonazalez Olguin, S.C., (a copy of which is appended to this report, see Appendix A).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	3-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 	 4.0 PROPERTY DESCRIPTION AND LOCATION

 
 
 
 
 
 
 
 
 
 
   
 4.1 LOCATION
  
 The Property is in Durango State in North Central Mexico, within the Sierra Madre Silver Belt on the eastern edge of the Sierra Madre Occidental mountain range. The nearest major centre is the city of Durango, 82 km to the southwest of the Property. The Property is within the municipality of Pánuco de Coronado between the towns of Pánuco de Coronado and San José de Avino. The Property is located at latitude N 24° 53', longitude W 104° 31', 14 km northwest of Highway 40D.
  
 The Property location is situated as illustrated in Figure 4.1 and Figure 4.2.
  
 Figure 4.1 General Location of the Property
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	4-1
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 4.2 Local Property Location
  
 
 Source: Avino
  
 4.2 PROPERTY OWNERSHIP
  
 The current Property comprises 23 mineral concessions, totalling 1,103.934 ha.
  
 In 1968, Avino Mines and Resources Ltd. acquired a 49% interest in the company Compañía Minera Mexicana de Avino (CMMA) and Minera San José de Avino SA, which together held mineral claims totalling 2,626 ha (6,488 ac). Avino Mines and Resources Ltd. retained Vancouver based Cannon-Hicks & Associates Ltd. (Cannon-Hicks), a mining consulting firm, to conduct the exploration and development of the Property. Cannon-Hicks’s exploration activities included surface and underground sampling and diamond drilling (VSE 1979).
  
 On July 17, 2006, the Company completed the acquisition of Compañía Minera Mexicana de Avino, S.A. de C.V. (Avino Mexico), a Mexican corporation, through the acquisition of an additional 39.25% interest in Avino Mexico, which combined with the Company’s pre‐existing 49% share of Avino Mexico, brought the Company’s ownership interest in Avino Mexico to 88.25%. The additional 39.25% interest in Avino Mexico was obtained through the acquisition of 79.09% of the common shares of Promotora Avino S.A. de C.V., referred to as “Promotora”, which in turn owns 49.75% of Avino Mexico’s common shares, and the direct acquisition of 1% of the common shares of Avino Mexico. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	4-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 The July 17, 2006 acquisition was accomplished by a share exchange by which the Company issued 3,164,702 shares as consideration, which we refer to as the “Payment Shares”, for the purchase of the additional 39.25% interest in Avino Mexico. The Payment Shares were valued based on the July 17, 2006 closing market price of the Company’s shares on the TSX.
  
 The Company acquired a further 1.1% interest in Avino Mexico through the acquisition from an estate subject to approval and transfer of the shares to the Company by the trustee for the estate. On December 21, 2007 approval was received and the Company obtained the 1.1% interest from the estate for no additional consideration. 
  
 On February 16, 2009, the Company converted existing loans advanced to Avino Mexico into new additional shares of Avino Mexico. As a result, the Company’s ownership interest in Avino Mexico increased to 99.28%. 
  
 On June 4, 2013, the Company converted existing loans advanced to Avino Mexico into new additional shares of Avino Mexico, resulting in the Company’s ownership increasing by 0.38% to an effective 99.67%. The issuance of shares to the Company by Avino Mexico on June 4, 2013 resulted in a reduction in the non-controlling interest from 0.72% to 0.34%. 
  
 On August 26, 2015, the Company converted existing loans advanced to Avino Mexico into new additional shares, resulting in an increase of the Company’s ownership by 0.01% to an effective 99.67%. The intercompany loans and investments are eliminated upon consolidation of the financial statements. The Company had a pre-existing effective ownership interest of 99.66% in Avino Mexico prior to the 0.01% increase. The issuance of shares to the Company by Avino Mexico on August 26, 2015, resulted in a reduction in the non-controlling interest from 0.34% to 0.33%. 
  
 4.3 MINERAL CONCESSIONS AND AGREEMENTS
  
 The current Property comprises 23 mineral concessions, totalling 1,103.934 ha (Figure 4.3). Of these, 22 mineral concessions totalling 1,005.104 ha, are held by CMMA (Avino’s Mexican subsidiary company), Promotora Avino SA de CV, and Susesion de la Sra. Elena del Hoyo Algara de Ysita. Ownership proportions and mineral concessions are summarized in Table 4.1 and Table 4.2, respectively.
  
 Table 4.1 Summary of Property Ownership
 
 	 Company
	 Relationship to Avino
Silver and Gold
Mines Ltd.
	 Effective Ownership
of Avino Mine Property (%)

	 CMMA
	 Subsidiary
	 98.45

	 Promotora Avino, S.A. de C.V. 
	 Subsidiary
	 1.22

	 Total Effective Ownership of Avino Mine Property 
	 -
	 99.67

	 Estate of Ysita 
	 Non-controlling interest
	 0.33

	 Total
	 -
	 100.00

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	4-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 4.2 Mineral Concessions – Avino Property  
 
 	 Concession Name
	 Concession No.
	 Location
	 Hectares
(ha)
	 Date
Acquired
	 Expiration
Date
	 Cost
(US$/ha)
	 Payment
(US$)

	 Agrupamiento San Jose (Purisma Chica)
	 155597
	 Pánuco
	 136.708
	 30/09/1971
	 29/09/2021
	 124.74
	 17,052.91

	 Agrupamiento (San Jose)
	 164985
	 Pánuco
	 8.000
	 13/08/1979
	 12/8/2029
	 124.74
	 997.92

	 Agrupamiento San Jose (El Trompo)
	 184397
	 Pánuco
	 81.547
	 13/10/1989
	 12/10/2039
	 124.74
	 10,172.12

	 Agrupamiento San Jose (Gran Lucero)
	 189477
	 Pánuco
	 161.468
	 5/12/1990
	 4/12/2040
	 124.74
	 20,141.57

	 Agrupamiento San Jose (San Carlos)
	 117411
	 Pánuco
	 4.451
	 5/2/1961
	 16/12/2061
	 124.74
	 555.16

	 Agrupamiento San Jose (San Pedro Y San Pablo)
	 139615
	 Pánuco
	 12.000
	 22/06/1959
	 21/06/2061
	 124.74
	 1,496.88

	 Aguila Mexicana
	 215733
	 Pánuco
	 36.768
	 12/3/2004
	 29/06/2044
	 70.88
	 2,606.12

	 Ampliacion La Malinche
	 204177
	 Pánuco
	 6.010
	 18/12/1996
	 17/12/2046
	 124.74
	 749.72

	 Ampliacion San Gonzalo
	 191837
	 Pánuco
	 5.850
	 19/12/1991
	 18/12/2041
	 124.74
	 729.67

	 Avino Grande Ix
	 216005
	 Pánuco
	 19.558
	 2/4/2002
	 1/4/2052
	 70.88
	 1,386.24

	 Avino Grande Viii
	 215224
	 Pánuco
	 22.882
	 14/02/2002
	 13/02/2052
	 70.88
	 1,621.85

	 El Caracol
	 215732
	 Pánuco
	 102.382
	 12/3/2002
	 28/04/2044
	 70.88
	 7,256.84

	 El Potrerito
	 185328
	 Pánuco
	 9.000
	 14/12/1989
	 13/12/2039
	 124.74
	 1,122.66

	 Fernando
	 205401
	 Pánuco
	 72.129
	 29/08/1997
	 28/08/2047
	 124.74
	 8,997.33

	 La Estela
	 179658
	 Pánuco
	 14.000
	 11/12/1986
	 12/12/2036
	 124.74
	 1,746.36

	 La Malinche
	 203256
	 Pánuco
	 9.000
	 28/06/1996
	 27/06/2046
	 124.74
	 1,122.66

	 Los Angeles
	 154410
	 Pánuco
	 23.713
	 25/03/1971
	 24/03/2021
	 124.74
	 2,957.96

	 Negro Jose
	 218252
	 Pánuco
	 58.000
	 17/10/2002
	 16/10/2052
	 70.88
	 4,111.04

	 San Gonzalo
	 190748
	 Pánuco
	 12.000
	 29/04/1991
	 28/04/2041
	 124.74
	 1,496.88

	 San Martin De Porres
	 222909
	 Pánuco
	 30.000
	 15/09/2004
	 14/09/2054
	 70.88
	 2,126.40

	 Santa Ana
	 195678
	 Pánuco
	 136.182
	 14/09/1992
	 13/09/2042
	 124.74
	 16,987.38

	 Yolanda
	 191083
	 Pánuco
	 43.458
	 29/04/1991
	 28/04/2041
	 124.74
	 5,420.91

	 Total
	 -
	 -
	 1005.106
	 -
	 -
	 110.29
	 110,856.58

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	4-4
	

	 

 
 
 
 
 
  
 	 
	 

 
 
 
 
 
       
 Figure 4.3 Map of Avino Property Concessions
  
 
 Source: after Tetra Tech (2013)
  
 In May 1970, Avino Mines and Resources Ltd. signed a formal agreement with Selco Mining and Development (Selco), a division of Selection Trust Company. Due to other commitments, Selco abandoned its interest in the Project in 1973 (VSE 1979). On February 18, 2012, through its subsidiary company CMMA, Avino re-entered into an agreement (the Agreement) with Minerales, whereby Minerales has indirectly granted to Avino the exclusive mining and occupation rights to the La Platosa concession. The La Platosa concession covers 98.83 ha and hosts the Avino Vein and ET Zone.
  
 Pursuant to the Agreement, Avino has the exclusive right to explore and mine the concession for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the grant of these rights, Avino has paid to Minerales the sum of US$250,000, by the issuance of 135,189 common shares of Avino. Avino will have a period of 24 months for the development of mining facilities.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	4-5
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Avino has agreed to pay to Minerales a royalty equal to 3.5% of NSRs, at the commencement of commercial production from the concession. In addition, after the development period, if the minimum monthly processing rate of the mine facilities is less than 15,000 t, then Avino must pay to Minerales in any event a minimum royalty equal to the applicable NSR royalty based on processing at a minimum monthly rate of 15,000 t. In the event of a force majeure, Avino shall pay the minimum royalty as follows:
  
 	  
	 ·
	 first quarter: payment of 100% of the minimum royalty

	  
	  
	  

	  
	 ·
	 second quarter: payment of 75% of the minimum royalty

	  
	  
	  

	  
	 ·
	 third quarter: payment of 50% of the minimum royalty

	  
	  
	  

	  
	 ·
	 fourth quarter: payment of 25% of the minimum royalty

	  
	  
	  

	  
	 ·
	 in the case of force majeure still in place after one year of payments, payment shall recommence at a rate of 100% of the minimum royalty and shall continue being made as per the quarterly schedule.

 
 
 
 
 
 
 
 
 
 
  
 Minerales has also granted to Avino the exclusive right to purchase a 100% interest in the concession at any time during the term of the Agreement (or any renewal thereof), upon payment of US$8 million within 15 days of Avino's notice of election to acquire the Property. The purchase would be completed under a separate purchase agreement for the legal transfer of the concession. This agreement replaces all other previous agreements.
  
 During the month of May of each year, Avino must file assessment work made on each concession for the immediately preceding calendar year. During the months of January and July of each year, Avino must pay in advance the mining taxes which are based on the surface of the concession and the number of years that have elapsed since it was issued.
  
 Consistent with the mining regulations of Mexico, cadastral surveys have been carried out for all the listed mineral concessions as part of the field staking prior to recording (Slim 2005d). It is believed that all concessions are current and up to date. Mineral concessions in Mexico do not include surface rights. Avino has entered into agreements with communal land owners (Ejidos) of San José de Avino, for the temporary occupation and surface rights of the concessions.
  
 A current title opinion dated February 11, 2020, has been prepared by Juan Manuel González Olguin of the Mexican law firm Bufete González Olguin S.C. (a copy of which is appended to this report [Appendix A]).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	4-6
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 	5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

 
 
 
 
 
 
 
 
 
 
   
5.1 TOPOGRAPHY, ELEVATION AND VEGETATION
  
 The average elevation of the Property is approximately 2,200 masl. Local relief is estimated to be roughly 100 m ranging from the bottom bench of the tailings to the top of the open pit.
  
 Vegetation is sparse and consists of shrubs and grasses typical of the high desert.
  
 5.2 ACCESSIBILITY AND LOCAL RESOURCES
  
 The Property is easily accessible by road and the mine is an important employer of the local community from which skilled workers are available. Access is provided by Highway 40, a four-lane highway leading from Durango, past the airport and on to the city of Torreon in Coahuila. Successive turn-offs for the Property are at Francisco I Madero, Ignacio Zaragoza, and San José de Avino (Slim 2005d). The Avino mineral concessions are covered by a network of dirt roads, which provide easy transport access between all areas of interest on the Property and the mill at the Avino Property (Gunning 2009).
  
 The nearest major city is Durango, with a population of approximately 465,000. Durango is a major mining centre in Mexico where experienced labour and services can be obtained. The two towns nearest the mine are Pánuco de Coronado and San José de Avino, where the majority of the employees lived while working at the mine when it was in operation. Pánuco de Coronado has a population of approximately 12,000, and San José de Avino is a small centre with a population of less than 1,000.
  
 5.3 CLIMATE AND LENGTH OF OPERATING SEASON
  
 The climate is temperate and semi-arid. In the region, the mean annual rainfall is 580.6 mm and the average annual temperature is 16.9°C. July and January average temperatures are 21.8°C and 11.3°C, respectively (www.worldclimate.com – Durango). The majority of the rainfall occurs between June and September. In the winter months, the temperature can drop below freezing and frost and even light snowfall can occur.
  
 Exploration, development, and mining activities may take place throughout the year without any significant seasonal impact.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	5-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 5.4 INFRASTRUCTURE
  
 Infrastructure is disclosed in Section 18.0.
  
  
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	5-2
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 	6.0 HISTORY

 
 
 
 
 
 
 
 
 
 
  
6.1 AVINO MINE, 1555 TO 1968
  
 The Avino deposit was originally discovered around 1555 by the Spanish conquistador, Don Francisco de Ibarra. In 1562, Francisco de Ibarra, was appointed governor of the newly formed province of Nueva Vizcaya, in the Viceroyalty of Nueva España (New Spain) and, in 1563, founded the town of Durango. Francisco de Ibarra led several expeditions in search of silver deposits in the region and is recognized as having established Minas de Avino, present day Avino Mine; San Martín, Durango; and Pánuco, Sinaloa. Mining operations at the Avino Mine are said to have commenced in 1562–1563 and have been in production until the early 1900s. Operations at the Avino Mine continued up to the onset of the War of Independence (1810) when operations were interrupted but then restarted and continued through to the early 1900s.
  
 In 1880, the mines were taken over by Avino Mines Ltd., a company controlled by American and British interests. The introduction of more modern industrial technology helped the Avino Mine develop into a significant mining operation at the beginning of the 20th century. By 1908, the Avino Mine was considered one of the largest open pit mines in the world and equipped with one of the largest lixification smelters (Gallegos 1960; VSE 1979; Slim 2005d).
  
 During the early phases of the Mexican Revolution in 1910, proceeds from the mine supplied funds to the revolutionary forces. Since much of the fighting occurred in and around Durango and the risk posed by brigands hiding in the mountains was high, the mine was abandoned in 1912.
  
 Between 1912 and 1968, the mine was worked intermittently on a small scale (Avino Annual Report 1980). There is no documentary record of production from the Avino Mine during this period.
  
 The Property was acquired under current ownership in 1968.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	6-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 6.1.1 AVINO VEIN SYSTEM DEPOSIT
  
 The Avino Vein system was the mainstay of historic exploitation and is situated adjacent to the mine offices and processing plant. The upper portion of the deposit was extensively mined in an open pit and the lower portion is currently accessible via a ramp and has been extensively developed and mined from more than 6 km of horizontal drifts, with vertical spacings between 15 m and 25 m. The ET Mine workings extend to a maximum depth of 360 m vertically below the portal of the ramp. An old vertical shaft, no longer used for hoisting, is used for ventilation and to supply water and power for development and mining. A vertical section of Avino Mine is shown in Figure 6.1. The western portion of the Avino Vein system is referred to as the San Luis. In 2016–2017, the focus of exploration drilling was on the region between the ET Mine and San Luis. The eastern extension of the Avino Vein system is known as Chirumbo.
  
 Figure 6.1 Elena Tolosa Mine: Vertical Section View Showing Development and Stoping
  
 
    
 6.2 SAN GONZALO VEIN DEPOSIT
  
 Shallow workings from an old mine are present in the San Gonzalo Vein, and consist of small underground workings which were originally accessed by a five-level vertical shaft.
  
 Current access to the San Gonzalo Deposit (SG Mine) is via a ramp that is being actively developed. All old working levels have been dewatered. The deposit has been explored and exploited by more than 4 km of horizontal drifts with upper levels at 40 m vertical spacing and lower levels at 25 m vertical spacing. A vertical section of the San Gonzalo Mine is shown in Figure 6.2.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	6-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 6.3 GUADALUPE VEIN DEPOSIT
  
 The Guadalupe Vein (see Figure 7.1) extends between the Avino Vein and the San Gonzalo Vein and is a current exploration target.
  
 6.4 SAN JUVENTINO VEIN DEPOSIT
  
 The San Juventino Vein (see Figure 7.1) is adjacent to the eastern end of the Avino Vein and is a current exploration target.
  
 Figure 6.2 San Gonzalo Mine: Vertical Section View Showing Development and Stoping
  
 
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	6-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 	7.0 GEOLOGICAL SETTING AND MINERALIZATION

 
 
 
 
 
 
 
 
 
 
  
7.1 REGIONAL GEOLOGY
  
 The Property is located within the Sierra de Gamon, on the east flank of the Sierra Madre Occidental. The area is a geological window into the Lower Volcanic series and consists mainly of volcanic flows, sills, and tuffaceous layers of andesite, rhyolite, and trachyte. Individual rock units typically vary from 300 m to 800 m in thickness. Andesitic rocks outcrop over most of the region with other rock types occurring more sparsely to the north (Slim 2005d).
  
 A large monzonitic intrusion is observed in the region in the form of dykes and small stocks, which appear to be linked to the onset of the Avino Vein mineralization. Other post-mineralization dykes of intermediate to felsic composition crop out in various areas and appear to cause minor structural displacements. Occurrences of thin mafic sills are also found in various parts of the region and are believed to be related to recent volcanism.
  
 Higher areas of the Sierra Madre Occidental surrounding the mine are composed of rhyolites and ignimbrites of the Upper Volcanic Series, with thicknesses approaching 1,500 m.
  
 The Laramide orogenic event is believed to have affected the Avino district. Later extrusive and intrusive igneous events appear to have caused the formation of various systems of pre-mineralization faulting. These fault systems usually produced normal displacement of the pre-existing rocks, and generally strike northwest–southeast (subparallel to the Avino Vein system). Additional normal fault systems are also observed in the region, striking northeast–southwest and dipping towards the south (subparallel to the San Gonzalo Vein system).
  
 The rugged topography is a result of erosion of the post-mineralization faulted blocks. One of the most significant regional features of the district is the Avino Fault which strikes northwest 20° southeast, dips southeast and which appears to terminate the Avino Vein mineralization, juxtaposing the Upper and Lower Volcanic series (Figure 7.1).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	7-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 7.1 General Map of Property Geology
  
 
 Source: Avino 
  
 7.2 PROPERTY GEOLOGY AND MINERALIZATION
  
 The Avino concession is located within a 12 km (north–south) by 8.5 km (east–west) caldera. The Property contains numerous low-sulphidation epithermal veins, breccias, stockwork, and silicified zones that grade into a “near porphyry” environment, particularly in the Avino Mine area. The caldera has been uplifted by regional north-trending block faulting (a graben structure), exposing a window of andesitic pyroclastic rocks of the lower volcanic sequence within the caldera. The Lower Volcanic Sequence is overlain by the Upper Volcanic Sequence, consisting of rhyolite to trachyte flows and extensive ignimbrites and intruded by monzonite bodies.
  
 The basal andesite-bearing conglomerate and underlying Paleozoic basement sedimentary rocks (consisting of shales, sandstones, and conglomerates) have been identified on the Avino concession in the south-central portion of the caldera, covering the Guadalupe, Santiago, San Jorge, the San Gonzalo Trend, Malinche, Porterito, and Yolanda areas. A northerly trending felsic dyke, possibly a feeder to the upper volcanic sequence, transects the Property and many of the veins. The Aguila Mexicana low temperature vein system, trends north-northwest at a similar orientation to the felsic dyke and with similar continuity across the Property. The two structures have been interpreted to occur along deep crustal faults that controlled volcanism and mineralization, with the felsic dyke structure controlling the emplacement of the Avino, Nuestra Senora and El Fuerte-Potosina volcanic centres and the Aguila Mexicana structure controlling the Cerro San Jose and El Fuerte-Potosina volcanic centres (Paulter 2006).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	7-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Silver- and gold-bearing veins cross-cut the various lithologies and are generally oriented north-northwest–south-southeast and northwest–southeast (Figure 7.1). The rocks have been weathered and leached in the upper sections, as a result of contact with atmospheric waters; the oxide tailings material (Section 7.2.3) is primarily from this source, whereas the sulphide tailings are predominantly from material sourced at depth, below the leached zone. In Mexico, these types of deposits can have large lateral extents, but can be limited in the vertical continuity of grades.
  
 In the oxide zone, mineralization is primarily hosted by the minerals argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver, gold, and native copper. Other minerals present in mineralized areas, but not hosting the metals of interest, include hematite, chlorite, quartz, barite, pyrite, arsenopyrite, and pyrrhotite. Malachite, anglesite, and limonite are common in the quartz zones of the weathered parts of the oxide material.
  
 7.2.1 AVINO VEIN
  
 Geology and mineralization of the Avino Vein are summarized from Slim (2005d).
  
 The Avino Vein is 1.6 km long and 60 m wide on the surface. The Avino Vein is the most striking and important example of the epithermal mineralization of the district whose structures are normally weathered and leached in their upper section as a result of contact with atmospheric waters producing a band of oxide minerals and zones of supergene enrichment to a depth of about 70 m.
  
 In the oxide portion of the Avino Vein, the common minerals encountered include hematite, limonite, anglesite, and copper carbonate in white or green, somewhat chloritized, quartz zones. The common primary and secondary minerals encountered are argentite, bromargyrite, chalcopyrite, chalcocite, galena sphalerite, bornite, native silver, free gold, and native copper. Other minerals present in mineralized areas include quartz, pyrite, chlorite, barite, arsenopyrite, pyrrhotite, and specularite.
  
 Higher silver values are reported to decrease overall with depth, except at vein intersections and vein inflections, where higher values persist to depth. The same can be said for gold, although the higher values start just below the onset of silver mineralization, at or near the surface. In contrast, higher copper values coincide with vein intersections and may increase with depth. Sporadic, localized copper enrichment occurs toward the footwall contact and may represent a different phase of fluid emplacement. Despite the overall decrease in precious metal grade with depth, local increases in metal grades are apparent in the mine sampling and exploration drilling, possibly reflecting changes in boiling level with pressure variations in the epithermal system.
  
 The Avino Vein has been followed longitudinally for more than 1,300 m and vertically for more than 600 m. It strikes north 66° east with an east-west splay, and dips to the south and southeast at 60° to 70°. Steeply dipping, high grade zones within the vein and stock-work zones are frequently found in the upper part of the vein, as well as at its intersections with a number of lateral veins. An example of a higher-grade area of mineralization encountered with major lateral vein intersecting the Avino was the El Hundido, which exceeded 40 m in thickness. In the lower areas of the vein and mine, mineralized cross-veins, branch-veins, and stockwork zones have been found in the footwall at San Luis and at El Hundido, and are assumed to persist with depth.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	7-3
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 The hanging wall of the Avino Vein is andesite, while the footwall is a monzonite intrusive with andesite sections. A post-mineralization fault parallel with the vein occurs in the hanging wall at a distance of several metres in the area of San Luis, while in the central part of El Hundido, this fault is located at the contact with the vein over a distance of about 300 m, up to the area of Santa Elena and San Antonio. From that point, and proceeding toward the El Chirumbo Mine, this fault cuts the vein between the face at San Carlos and the exposure at the underground ramp. The fault then enters the footwall where it remains until a point about 30 m east of the west face of the Chirumbo area, producing a downward displacement of the vein of between 50 m to 100 m.
  
 At Chirumbo, the fault largely replaces the vein due to strong leaching by post‐mineralization circulating of water in the gouge. On the east face at Chirumbo, the fault again enters the hanging wall; in this zone the vein is composed of branches and stockwork, and to the east of this point, the fault crosses the vein numerous times.
  
 The deposit is epithermal and made up of veins and dependent stockwork structures, mainly in the hanging wall and often associated with vein intersections. Four vein systems have been described which, in decreasing order of importance, are:
  
 	  
	 ·
	 system striking east–west, dipping south at 60° to 70°, including the Avino Vein and its possible extension in the Cerro de San Jose

	  
	  
	  

	  
	 ·
	 system striking north 60° to 70° west, dipping 60° to 80° southwest, comprising the following important veins: El Trompo, San Juventino, San Jorge, Platosa, Los Reyes, Potosina, El Fuerte, and Conejo

	  
	  
	  

	  
	 ·
	 system striking north 20° to 30° west, dipping between 60° to 80° to either the southwest or northeast, comprising the following significant veins: San Gonzalo, Aguila Mexicana, and La Calcita, as well as the Stockwork La Potosina, and the Stockwork El Fuerte

	  
	  
	  

	  
	 ·
	 systems striking north 60° to 80° east, dipping 60° to 80° southeast, comprising the following veins: Santiago, Retana, Nuestra Senora, and San Pedro and San Pablo.

 
 
 
 
 
 
 
 
 
 
  
 Alteration has been reported in three main types: 
       
 	  
	 ·
	 Propylitic alteration is most common in andesite, giving the andesite a greenish tint.

	  
	  
	  

	  
	 ·
	 Argillaceous alteration appears mainly in the upper parts of the veins and manifests itself as a whitening of the country rock due to alunite and montmorillonite clays.

	  
	  
	  

	  
	 ·
	 Silicification, chloritization, and pyritization alteration is observed in the hanging wall and footwall, and is more prominent closer to the vein.

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	7-4
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 7.2.2 SAN GONZALO VEIN
  
 The San Gonzalo Vein is located approximately 1.4 km northeast of the eastern modelled extent of the Avino Vein. The San Gonzalo Vein system constitutes a strongly developed vein system over 25 m wide, trending 300° to 325°/ 80° northeast to 77° south. It is characterized by banded textures and open-space filling. The main vein has an average width of 2 m, but the silica-pyrite or iron oxide-sericite alteration with additional stock working extends across 300 m, south of the main San Gonzalo Vein to the Los Angeles Vein. 
  
 The San Gonzalo is a typical narrow vein precious metal deposit with some erratic values and extends approximately 2 km to the northwest to the Santa Ana-Malinche area (Gunning 2009).
  
 The Cerro San Jose-La Estella-San Gonzalo Cerro San Jose represents a distinct hydrothermal centre with similar characteristics to the Avino system, which include the following (Paulter 2006):
  
 	  
	 ·
	 occur on a topographic high

	  
	  
	  

	  
	 ·
	 strong to intense silicification and brecciation

	  
	  
	  

	  
	 ·
	 easterly trending stockwork system similar to the trend of the Avino Vein

	  
	  
	  

	  
	 ·
	 similar temperatures of formation to Avino

	  
	  
	  

	  
	 ·
	 presence of an intersecting northwesterly trending vein system (la Estella at San Jose and San Juventino at Avino)

	  
	  
	  

	  
	 ·
	 emplacement along a northerly trending, deep crustal fault zone (defined by the Aguila Mexicana Vein at Cerro San Jose and the felsic dyke at Avino).

 
 
 
 
 
 
 
 
 
 
  
 7.2.3 OXIDE AND SULPHIDE TAILINGS
  
 The Avino tailings dam is located approximately 500 m west-southwest of the main shaft to the old underground workings and 2.5 km southwest of the San Gonzalo Vein. An orthogonal view of the oxide tailings deposit, looking northwards and with the drillholes indicated, is shown in Figure 7.2.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	7-5
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 7.2 Orthogonal View of the Oxide Tailings Deposit and Drillholes
  
 
 Source: Red Pennant
   
 Within the tailings dam, there are three distinct benches:
  
 	  
	 ·
	lower oxide bench
	  
	  
	  

	  
	 ·
	middle oxide bench
	  
	  
	  

	  
	 ·
	upper bench or sulphide bench.

 
 
 
 
 
 
 
 
 
 
  
 Due to the historical processing sequence, the oxide tailings are primarily derived from weathered and oxidized rocks close to the surface on the Property, whereas the sulphide tailings are predominantly derived from material sourced at depth from the underground workings, below the weathered/leached zone.
  
 The oxide tailings (both the middle and lower benches) have been analyzed in greater detail than the sulphide tailings and are included in the current Mineral Resource for the oxide tailings. The sulphide tailings, in the absence of any definitive sampling data penetrating the depth of the pile, are an exploration target (Section 14.15).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	7-6
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 	 8.0 DEPOSIT TYPES

 
 
 
 
 
 
 
 
 
 
  
 Regionally, the Property is situated within a 12 km by 8.5 km caldera that hosts numerous low- to intermediate-sulphidation silver-gold epithermal veins, breccias, stockwork, and silicified zones, grading into a “near porphyry” environment in the Avino Property.
  
 The historic mining on the Property was on the Avino Vein, a silver-gold-copper rich epithermal vein. The San Gonzalo Vein, however, has a much lower copper content than the Avino Vein and is more equivalent to other silver-lead-zinc deposits of the Sierra Madres.
  
 Low-sulphidation vein systems are commonly characterized by low concentrations of sulphide minerals, alteration mineralogy dominated by quartz-adularia-sericite, and a lack of extensive wall-rock alteration. Conversely, high-sulphidation vein systems are commonly characterized by sulphur saturation leading to the presence of native sulphur and sulphide minerals, quartz-alunite alteration, and extensive wall-rock alteration. The Mexican silver deposits are usually within the intermediate sulphidation range, rather than either of the end member classifications.
  
 In Mexico, and particularly within the Mexican Silver Belt, these types of deposits can have large lateral extents, but may be limited vertically. There are many silver-gold mines in Mexico, some of which form large mining districts, and others that exploit multiple veins over limited vertical horizons that are sometimes only 100 m in depth (Gunning 2009).
  
 On the Property, the oxide tailings have been predominantly sourced from earlier open pit operations and the sulphide tailings have been predominantly sourced from later underground workings. Exposure to surface weathering and historic process activities has homogenised the oxide tailings material to produce a deposit with little or no sulphides.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	8-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 	9.0 EXPLORATION

 
 
 
 
 
 
 
 
 
 
  
9.1 EARLY EXPLORATION (PRIOR TO MINE CLOSURE), 1968 TO 2001
  
 Exploration on the Property has been ongoing since before production commenced, and the majority of the recorded work has been focused on the main Avino Vein and surrounding area. The following is a summary of significant exploration work conducted either by Avino, or on behalf of Avino, until the mine closed in 2001.
  
 Pre-production exploration was carried out by CMMA and others, and covered 2,500 m of drifting and cross-cuts, as well as 8,000 m of surface and underground diamond drilling. Extensive rehabilitation was completed involving Selco, including connecting three of the old—possibly pre-1900—underground mine workings.
  
 In 1970, a contract was signed with Selco, who spent more than US$1 million in exploration and FSs before returning the Property back to CMMA in 1972, reportedly because of low metal prices. The majority of the documentation examined covered feasibility work and was related to investigations of old underground workings that were likely developed in the late 1800s. A contract was signed in October 1973 with S.G.L. Ltd. and Sheridan Geophysics Ltd., under which a new 500 t/d plant was completed in May 1974.
  
 Since 1992, exploration in/for the mine has been limited to traditional underground mine development with associated sampling and planning for production feed. In the late 1990s it appears that development was not kept up as company monthly reports showed decreasing historical reserve allocations for production and mill feed.
  
 The only recorded property exploration, apart from limited prospecting, is documented in the 1993 report by Servicios Administratos Luismin, SA de CV, the engineering branch of Cía Minera de San Luis Exploration. The study reported on detailed analysis and sampling of the then known showings on the Property with the emphasis on the Avino Vein and Potosina/El Fuerte area. The extensive underground sampling program carried out by Luismin provided later direction for underground mining. The report made recommendations for follow-up for drilling and underground development for the main Avino Vein, as well as trenching and drilling recommendations for the Potosina/El Fuerte area. It is believed that these recommendations were never implemented for the prospective areas. Additionally, the report included a property-scale geological mapping and lithogeochemical sampling program, which was contoured and coloured for gold, silver, copper, lead, zinc, arsenic, antimony, and mercury.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Other notable observations from the study include the following:
  
 	  
	 ·
	 All mineralization, except for Nuestra Senora and Potosina / El Fuerte radiate outwards in a west to north-west direction from the Cerro San Jose. The Cerro San Jose is a silicified and partly hornfelsed body of volcanic rock probably overlying an intrusive stock, which could have been the source of most mineralization on the Property.

	  
	  
	  

	  
	 ·
	 Mineralization in all radiating structures is described as being strongest 2 km to 3 km from Cerro San Jose. This resembles many of the gold deposits in Nevada where the source of mineralization is a near surface acid-intrusive but with mineralized bodies lying 1 km to 5 km away along high angle faults.

	  
	  
	  

	  
	 ·
	 The two strongest and widest structures appear to be the Avino and Aguila Mexicana veins.

	  
	  
	  

	  
	 ·
	 The Avino Vein has three main mineralized zones—San Luis, ET (La Gloria / Hundido) and Chirumbo areas—which rake to the west and are open at depth.

	  
	  
	  

	  
	 ·
	 The existence of other mineralization cutting the Cerro San Jose mineralization in the Nuestra Senora and Potosina / El Fuerta areas could offer the potential for bulk mineable stockwork zones.

 
 
 
 
 
 
 
 
 
 
  
 Assay values from outcrop sampling of surface-mapped veins towards the San Jose hill ranged from lows of 2 g/t silver and trace gold over true thicknesses from 0.1 m to 2.3 m up to a high of 755 g/t silver with a corresponding 1.5 g/t gold over a thickness of 0.45 m.
  
 No systematic sampling, trenching, or drilling of either the outcrops or the veins is known to have occurred during the program undertaken in 1993.
  
 9.2 RECENT EXPLORATION, 2001 TO PRESENT
  
 Since mine closure in 2001, Avino has intermittently conducted exploration work on the Property, with the intention of expanding and better defining known areas of mineralization. Historic near-to-surface mining activities are being relied upon for guidance, and modern techniques are being employed to integrate, manage, and interpret results. Included in the list of exploration activities is an induced polarization (IP) geophysical survey, 1,500 soil samples, satellite imagery, mapping, trenching, tailings investigations, bulk sampling, and underground channel sampling.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-2
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 9.2.1 TAILINGS INVESTIGATIONS (OXIDES), 2003 AND 2004
  
 Two specific mineralogical assessments were conducted in 2003 and 2004 on samples from the tailings on the Property. The purpose of the program was to provide data for independent investigation of the 1990 drilling results on the oxide tailings (discussed in Section 10.0) in terms of verifying assay grades and volumes, as well to examine the metallurgical characteristics of the material. The results and implications of these findings are discussed further in Section 13.0.
  
 The following information regarding the 2004 sampling is summarized from Slim (2005d).
  
 The 2004 tailings field-work was under the direction of MineStart and excavation of the sample pits was under contract to Desarrollos Rod Construcciones of Durango. Given the hydraulic deposition of the tailings, four important factors required examination: anomaly characteristics of the samples and total population, assay comparison by fence, examination of downstream decrease in assays, and factors arising from the downstream construction.
  
 Comparison of the 2004 assays with those from 1990 show consistency in assay values and provide confidence in the 1990 sampling and assaying program.
  
 The preliminary investigations in 2003 showed the need for a sampling of the oxide tailings to validate the assay results of the 1990 drilling and to carry out metallurgical characterization, the latter requiring large samples.
  
 The sampling exercise carried out in 2004, using shallow (4 m deep) backhoe trenches and hand-dug pits, represented a local corroboration of the previous sampling but could not be considered to constitute a representative random sampling of the oxide tailings.
  
 The trench sampling material (Z-series) from the 1993 campaign was also considered to be non-representative.
  
 9.2.2 TAILINGS SAMPLING (SULPHIDES), 2005
  
 Some sampling was carried out in 2005 by means of hand-dug pits on the “upper bench” of sulphide tailings. The silver and gold values generally ranged from 40.0 g/t to 100.0 g/t and 0.3 g/t to 0.6 g/t, respectively. While these values give a general idea of the potential grade of the sulphide tailings, they have not been verified to be representative of the sulphide tailings, even at a local scale.
  
 9.2.3 BULK SAMPLE PROGRAM OF SAN GONZALO VEIN, 2011
  
 Avino completed a 10,000 t bulk sample program at the San Gonzalo deposit following a comprehensive review of the data and discussions with Tetra Tech. The bulk sample feed grade was 261 g/t silver and 0.9 g/t gold. Silver and gold recoveries were stated to be 76% and 59%, respectively, and 232 dry tonnes of flotation concentrate were produced.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 9.2.4 UNDERGROUND CHANNEL SAMPLING OF SAN GONZALO AND AVINO VEINS, 2010 TO PRESENT
  
 Underground channel sampling began in 2010 and has continued to the present at ET Mine (Avino Vein system) and San Gonzalo Mine. Channel sampling generated since 2010 data are summarized in Table 9.1 and Table 9.2.
  
 Table 9.1 Summary Underground Channel Sampling by Level for the Avino (ET) Underground Mines
  
 
 	 Level
	 Elevation
(m)
	 Number of
Channels
	 Total
Sampled
(m)
	 Average
Channel
Length
(m)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)

	 6.5
	 2,271.0
	 97
	 373.6
	 3.9
	 113.01
	 0.98
	 0.51

	 7
	 2,241.8
	 195
	 1,197.6
	 6.1
	 72.50
	 0.42
	 0.44

	 7.5
	 2,212.8
	 33
	 230.5
	 7.0
	 66.15
	 0.49
	 0.50

	 8
	 2,199.1
	 79
	 486.3
	 6.2
	 141.32
	 1.14
	 0.22

	 8.5
	 2,171.9
	 87
	 576.9
	 6.6
	 123.19
	 1.37
	 0.48

	 9
	 2,147.1
	 178
	 1,343.8
	 7.5
	 121.65
	 1.52
	 0.57

	 9.5
	 2,128.0
	 84
	 768.2
	 9.1
	 122.42
	 2.26
	 0.76

	 10
	 2,115.0
	 399
	 2,905.9
	 7.3
	 72.12
	 0.60
	 0.49

	 10.5
	 2,101.0
	 207
	 1,468.0
	 7.1
	 106.90
	 0.77
	 0.65

	 11
	 2,083.0
	 127
	 1,214.7
	 9.6
	 87.57
	 0.48
	 0.73

	 11.5
	 2,067.2
	 171
	 1,289.9
	 7.5
	 89.65
	 0.44
	 0.63

	 12
	 2,051.0
	 133
	 1,092.0
	 8.2
	 94.87
	 0.41
	 0.76

	 12.5
	 2,034.3
	 173
	 1,356.5
	 7.8
	 84.94
	 0.51
	 0.69

	 13
	 2,016.1
	 106
	 645.8
	 6.1
	 61.64
	 0.24
	 0.63

	 13.5
	 1,995.5
	 75
	 386.3
	 5.2
	 57.01
	 0.24
	 0.51

	 14
	 1,975.0
	 107
	 578.0
	 5.4
	 54.56
	 0.13
	 0.52

	 14.5
	 1,954.3
	 419
	 2,622.4
	 6.3
	 54.18
	 0.38
	 0.56

	 15
	 1,932.5
	 390
	 2,341.1
	 6.0
	 63.98
	 0.48
	 0.58

	 15.5
	 1,910.0
	 379
	 2,182.4
	 5.8
	 59.15
	 0.41
	 0.57

	 16
	 1,886.5
	 63
	 433.6
	 6.9
	 49.69
	 0.28
	 0.51

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 9.2 Summary of Underground Channel Sampling by Level for the San Gonzalo Mine
  
 
 	 Level
	 Elevation
(m)
	 Number
of
Channels
	 Total
Sampled
(m)
	 Average
Channel
Length
(m)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)

	 1
	 2,311.9
	 114
	 272.8
	 2.4
	 157.65
	 0.43
	 -

	 2
	 2,265.3
	 314
	 840.6
	 2.7
	 115.75
	 0.40
	 -

	 3
	 2,218.3
	 378
	 1,046.1
	 2.8
	 119.92
	 0.41
	 -

	 4
	 2,180.0
	 685
	 1,814.2
	 2.6
	 241.59
	 1.15
	 -

	 5
	 2,138.5
	 740
	 2,031.9
	 2.7
	 285.70
	 1.57
	 -

	 6
	 2,091.8
	 603
	 1,667.8
	 2.8
	 186.70
	 1.14
	 -

	 6.5
	 2,064.4
	 243
	 682.4
	 2.8
	 177.17
	 0.86
	 -

	 7
	 2,046.9
	 190
	 517.4
	 2.7
	 111.50
	 0.71
	 -

	 7.5
	 2,020.0
	 114
	 295.6
	 2.6
	 179.90
	 1.01
	 -

 
 
 
 
 
 
 
 
 
 
 
 
  
 9.2.5 UNDERGROUND CHANNEL SAMPLING OF SAN GONZALO AND ANGELICA VEINS, 2010 TO PRESENT
  
 Underground channel sampling began in 2010 and has continued to the present. Channel sampling between 2010 and 2012 was summarized in Tetra Tech (2013). Results of underground sampling since 2013 are summarized in Table 9.2.
  
 Figure 9.1 and Figure 9.2 show the location of all channels, colour coded by grade, included in the current resource estimate (Section 14.2), within and adjacent to the Avino and San Gonzalo Vein systems respectively. Drillholes are also shown for orientation.
  
 Figure 9.1 Channel and Drillhole Samples, Colour Coded by Silver Grade, within the Avino System
  
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-5
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 9.2 Channel Samples, Colour Coded by Silver Grade, within the San Gonzalo Vein System
  
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9-6
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 	 10.0 DRILLING

 
 
 
 
 
 
 
 
 
 
  
 Drilling activities performed by Avino since acquisition of the Property are summarized in the following sections. Drillhole assay results have been previously reported (except ET‐12-07 to ET-12-09; Appendix A) by Gunning (2009), Tetra Tech (2012), and Tetra Tech (2013) and are not disclosed here.
  
 The most recent exploration drilling was carried out in 2018 and is summarised in Table 10.1. The location of this 2018 drilling is summarised in Figures 10.1 (ET section) and 10.2 (San Gonzalo section) where the holes are indicated by red traces.
  
 Table 10.1 Exploration Drilling 2018
  
 
 	 Hole
	 Azimuth (°)
	 Dip (°)
	 Easting (m)
	 Northing (m)
	 Elevation (m)
	 Depth (m)
	 Target Zone

	 AM_18_01
	 61.5
	 -29.7
	 572342.4
	 2713762.1
	 2094.3
	 363.0
	 Aguila_Mexicana_Vein

	 AM_18_02
	 42.2
	 -15.4
	 572343.1
	 2713764.2
	 2094.5
	 290.0
	 Aguila_Mexicana_Vein

	 AM_18_03
	 62.0
	 -15.5
	 572343.6
	 2713762.5
	 2094.7
	 295.2
	 Aguila_Mexicana_Vein

	 ET_18_01
	 337.0
	 -55.2
	 571011.1
	 2712974.1
	 2231.2
	 102.5
	 Avino_Vein

	 ET_18_02
	 340.0
	 -38.0
	 570841.9
	 2712720.6
	 2231.8
	 318.1
	 Avino_Vein

	 ET_18_03
	 154.9
	 -29.4
	 570403.4
	 2712912.4
	 2336.2
	 118.6
	 Avino_Vein

	 ET_18_04
	 155.5
	 -44.9
	 570403.4
	 2712912.4
	 2336.2
	 120.8
	 Avino_Vein

	 ET_18_05
	 153.5
	 -33.7
	 570445.8
	 2712940.4
	 2335.9
	 105.6
	 Avino_Vein

	 ET_18_06
	 153.3
	 -23.4
	 570445.8
	 2712940.4
	 2335.9
	 85.1
	 Avino_Vein

	 ET_18_07
	 155.1
	 -33.3
	 570489.1
	 2712962.8
	 2337.4
	 113.9
	 Avino_Vein

	 ET_18_08
	 156.6
	 -20.0
	 570489.1
	 2712962.8
	 2337.4
	 96.2
	 Avino_Vein

	 ET_18_09
	 336.2
	 -34.6
	 570418.0
	 2712758.5
	 2321.7
	 65.6
	 Avino_Vein

	 ET_18_10
	 334.5
	 -59.6
	 570418.0
	 2712758.5
	 2321.7
	 65.8
	 Avino_Vein

	 ET_18_11
	 334.6
	 -20.1
	 570390.4
	 2712757.4
	 2323.1
	 52.8
	 Avino_Vein

	 ET_18_12
	 334.5
	 -53.0
	 570390.4
	 2712757.4
	 2323.1
	 59.9
	 Avino_Vein

	 ET_18_13
	 336.1
	 -26.3
	 570362.0
	 2712757.8
	 2324.6
	 40.6
	 Avino_Vein

	 GPE_18_01
	 208.5
	 -43.5
	 571349.4
	 2713700.1
	 2285.9
	 179.8
	 Guadalupe_Vein

	 GPE_18_02
	 177.2
	 -43.4
	 571503.9
	 2713558.0
	 2311.3
	 134.1
	 Guadalupe_Vein

	 GPE_18_03
	 180.8
	 -22.0
	 571553.4
	 2713519.6
	 2326.6
	 72.7
	 Guadalupe_Vein

	 GPE_18_04
	 179.3
	 -48.3
	 571603.8
	 2713521.3
	 2332.2
	 118.9
	 Guadalupe_Vein

	 GPE_18_05
	 169.1
	 -38.5
	 571538.1
	 2713586.2
	 2307.4
	 158.2
	 Guadalupe_Vein

	 GPE_18_06
	 208.8
	 -45.4
	 571366.8
	 2713800.7
	 2242.4
	 290.5
	 Guadalupe_Vein

	 GPE_18_07
	 209.2
	 -47.9
	 571253.2
	 2713776.7
	 2247.6
	 218.8
	 Guadalupe_Vein

	 GPE_18_08
	 178.8
	 -44.9
	 571599.8
	 2713695.4
	 2291.8
	 290.6
	 Guadalupe_Vein

	 SG_18_01
	 217.9
	 -17.2
	 571549.9
	 2714351.4
	 2285.1
	 102.2
	 San_Gonzalo_Vein

	 SG_18_02
	 217.8
	 -43.7
	 571583.4
	 2714349.8
	 2283.2
	 121.4
	 San_Gonzalo_Vein

	 ST_18_01
	 146.8
	 -53.8
	 571713.5
	 2714264.5
	 2296.5
	 211.0
	 Santiago_Vein

	 ST_18_02
	 165.0
	 -65.3
	 571812.3
	 2714288.5
	 2304.5
	 249.2
	 Santiago_Vein

	 ST_18_03
	 319.1
	 -61.0
	 571769.5
	 2714095.2
	 2314.3
	 181.9
	 Santiago_Vein

 
 
 
 
 
 
 
 
 
 
 
 
  
 Historic drillholes and drillholes drilled since 2007 are summarized in Appendix B.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	10-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 10.1 EARLY DRILLING (PRIOR TO MINE CLOSURE), 1968 TO 2001
 
10.1.1 AVINO VEIN
  
 Between 1968 and 2001, at least 25 diamond drillholes, ranging in length from 132.20 to 575.20 m, are reported to have been drilled from surface into the Avino Vein. Included in this total are 10 holes that were drilled by Selco in 1970 when they were re-habilitating some of the old underground workings to provide access for sampling (Slim 2005d). No further information on these drillholes was available to the QP, and they are not included in the resource estimate for the Avino Vein.
  
 10.1.2 OXIDE TAILINGS, 1990 TO 1991
  
 Between November 10 and December 5, 1990 and March 8 and May 30, 1991, Avino completed six trenches and 28 vertical drillholes in the tailings (Table 10.1) along 7 fences at a spacing of roughly 50 m by 50 m (Figure 10.1) (Benitez Sanchez 1991). Drilling was completed transversely to the drainage pattern of the tailings. Cut at 1 m vertical increments, 461 samples were assayed for silver and gold at the mine assay lab and occasional moisture contents were reported. Assay results from these drillholes have been previously reported (Tetra Tech 2012). Although the Z-series trenches are included in Table 10.1 and Figure 10.1, they are not included in the oxide tailings resource estimate (Section 14.3) as they are not considered representative of the tailings at a local scale (see Section 9.2.1). During 2015 and 2016 further drilling was carried out on the oxide tailings.
  
 10.2 RECENT DRILLING (POST-MINE CLOSURE), 2001 TO PRESENT
  
 A total of 112 drillholes with a total length of 26,907 m have been completed on the Avino Vein system and 140 holes 26,026 m on the San Gonzalo Vein system, totalling 252 holes and 52,933 m of core drilling. Additional exploration holes have been drilled elsewhere on the Property, but those drilling results are not considered material. Most holes were surveyed downhole using a Tropari single-shot magnetic instrument.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	10-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 10.2.1 AVINO VEIN
  
 In 2016, 5,510 m (34 holes see Figure 10.1) were drilled in an infill program in the San Luis / Avino Vein system. In 2017, 1,478 m (7 holes, see Figure 10.1) were drilled in the Chirumbo section (eastern extension) of the Avino Vein. In 2018, 1,345 m (13 holes, see Figure 10.1) were drilled north of the historic open pit and in the Chirumbo section on the Avino Vein.
  
 A total of 25,845 m (97 holes, see Table 10.1) of documented drilling has been used for Mineral Resource estimation on the Avino Vein system. 
  
 10.2.2 SAN GONZALO VEIN
  
 A total of 23,804 m (105 holes, see Table 10.2 of documented drilling has been used for Mineral Resource estimation on the San Gonzalo Vein system.
  
 Figure 10.1 Drillholes Completed in 2018 on the Avino Vein System, ET Mine. 2018 drill traces in red, previous drilling in black.
   
 
 Source: Red Pennant
  
 10.2.3 SAN JUVENTINO AND GUADALUPE VEINS
  
 During 2016 and 2017, exploration drilling was carried out on the San Juventino and Guadalupe veins (see Figure 10.2 and Table 10.3). These veins are strategically well‐positioned close to and between the ET and San Gonzalo mining operations. A total of 936 m (six holes) of documented drilling has been drilled on the Guadalupe Vein. A total of 846 m (five holes) of documented drilling has been drilled on the San Juventino Vein. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	10-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 10.2 Location of 2018 Drillholes on the San Gonzalo, Santiago, Guadalupe, and Aguila Mexicana Veins
   
 
 Source: Red Pennant
  
 10.2.4 OXIDE TAILINGS
  
 During 2015 and 2016, Avino drilled 57 new holes on the oxide tailings deposit. Collar coordinates are provided in Table 10.2. Drillholes completed before 2015 on the oxide tailings have been previously reported (Tetra Tech 2013). A location map of oxide tailings drillholes is provided in Figure 10.3. The 2015/16 holes are indicated in red.
  
 Table 10.2 Drillholes Drilled on Oxide Tailings 2003 to 2016
  
 	 Hole ID
	 Azimuth
(°)
	 Dip
(°)
	 Easting
(m)
	 Northing
(m)
	 Elevation
(m)
	 Depth
(m)

	 A1
	 0
	 90
	 570205
	 2712340
	 2,203.8
	 5.2

	 A2
	 0
	 90
	 570184
	 2712306
	 2,203.5
	 7.2

	 A3
	 0
	 90
	 570192
	 2712267
	 2,203.1
	 8.2

	 A4
	 0
	 90
	 570167
	 2712236
	 2,203.0
	 9.2

	 A5
	 0
	 90
	 570175
	 2712197
	 2,202.9
	 15.2

	 A6
	 0
	 90
	 570152
	 2712167
	 2,202.0
	 18.2

	 A7
	 0
	 90
	 570159
	 2712128
	 2,201.0
	 16.2

	 A8
	 0
	 90
	 570150
	 2712094
	 2,200.4
	 8.2

	 B1
	 0
	 90
	 570132
	 2712365
	 2,217.1
	 10.2

	 B2
	 0
	 90
	 570114
	 2712318
	 2,216.7
	 19.2

	 B3
	 0
	 90
	 570101
	 2712268
	 2,216.4
	 26.6

	 B4
	 0
	 90
	 570079
	 2712207
	 2,216.1
	 23.7

	 B5
	 0
	 90
	 570082
	 2712140
	 2,214.3
	 18.2

	 C1
	 0
	 90
	 570085
	 2712383
	 2,217.6
	 8.7

	 C2
	 0
	 90
	 570077
	 2712354
	 2,217.1
	 15.2

	 C4
	 0
	 90
	 570049
	 2712250
	 2,216.1
	 24.2

	  
	  
	  
	  
	  
	  
	 table continues...

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	10-4
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 
 
 	  
 Hole ID
	 Azimuth
(°)
	 Dip
(°)
	 Easting
(m)
	 Northing
(m)
	 Elevation
(m)
	 Depth
(m)

	 C5
	 0
	 90
	 570028
	 2712164
	 2,216.0
	 14.2

	 C6
	 0
	 90
	 570017
	 2712117
	 2,216.4
	 10.2

	 D1
	 0
	 90
	 570029
	 2712373
	 2,217.6
	 13.2

	 D2
	 0
	 90
	 570018
	 2712329
	 2,216.7
	 19.2

	 D3
	 0
	 90
	 570003
	 2712273
	 2,217.6
	 19.7

	 D4
	 0
	 90
	 569962
	 2712167
	 2,215.9
	 6.2

	 E1
	 0
	 90
	 569977
	 2712369
	 2,216.5
	 13.2

	 E2
	 0
	 90
	 569960
	 2712311
	 2,216.1
	 18.7

	 E3
	 0
	 90
	 569952
	 2712267
	 2,215.8
	 12.2

	 F1
	 0
	 90
	 569936
	 2712401
	 2,216.4
	 18.7

	 F2
	 0
	 90
	 569926
	 2712364
	 2,216.1
	 16.2

	 F3
	 0
	 90
	 569915
	 2712324
	 2,215.8
	 15.2

	 PJ-15-01
	 0
	 90
	 570191
	 2712415
	 2,219.5
	 6.5

	 PJ-15-02
	 0
	 90
	 570183
	 2712386
	 2,219.2
	 12.4

	 PJ-15-03
	 0
	 90
	 570173
	 2712357
	 2,218.6
	 13.4

	 PJ-15-04
	 0
	 90
	 570168
	 2712327
	 2,217.7
	 18.9

	 PJ-15-05
	 0
	 90
	 570160
	 2712298
	 2,216.8
	 21.8

	 PJ-15-06
	 0
	 90
	 570153
	 2712269
	 2,216.4
	 8.3

	 PJ-15-06A
	 0
	 90
	 570155
	 2712277
	 2,216.5
	 26.8

	 PJ-15-07
	 0
	 90
	 570143
	 2712241
	 2,215.7
	 28.5

	 PJ-15-08
	 0
	 90
	 570128
	 2712212
	 2,219.5
	 28.0

	 PJ-15-09
	 0
	 90
	 570093
	 2712157
	 2,214.9
	 21.2

	 PJ-15-10
	 0
	 90
	 570101
	 2712184
	 2,215.2
	 27.0

	 PJ-15-11
	 0
	 90
	 570109
	 2712215
	 2,216.8
	 28.5

	 PJ-16-01
	 0
	 90
	 570116
	 2712245
	 2,216.7
	 27.9

	 PJ-16-02
	 0
	 90
	 570124
	 2712274
	 2,217.2
	 26.4

	 PJ-16-03
	 0
	 90
	 570132
	 2712305
	 2,217.4
	 23.0

	 PJ-16-04
	 0
	 90
	 570139
	 2712335
	 2,218.0
	 18.0

	 PJ-16-05
	 0
	 90
	 570135
	 2712371
	 2,218.5
	 12.0

	 PJ-16-06
	 0
	 90
	 570154
	 2712393
	 2,219.2
	 8.0

	 PJ-16-07
	 0
	 90
	 570156
	 2712422
	 2,220.3
	 3.9

	 PJ-16-08
	 0
	 90
	 570111
	 2712340
	 2,218.8
	 18.0

	 PJ-16-09
	 0
	 90
	 570099
	 2712313
	 2,217.8
	 22.9

	 PJ-16-10
	 0
	 90
	 570091
	 2712284
	 2,216.9
	 27.5

	 PJ-16-11
	 0
	 90
	 570083
	 2712255
	 2,216.6
	 23.0

	 PJ-16-12
	 0
	 90
	 570078
	 2712223
	 2,216.0
	 24.1

	 PJ-16-13
	 0
	 90
	 570066
	 2712197
	 2,216.0
	 24.0

	 PJ-16-14
	 0
	 90
	 570057
	 2712168
	 2,215.9
	 20.0

	 PJ-16-15
	 0
	 90
	 570057
	 2712138
	 2,215.1
	 14.5

	 PJ-16-16
	 0
	 90
	 570020
	 2712120
	 2,215.8
	 9.5

	 PJ-16-17
	 0
	 90
	 570028
	 2712145
	 2,216.0
	 14.0

	 PJ-16-18
	 0
	 90
	 570035
	 2712177
	 2,215.9
	 13.1

	  
	  
	  
	  
	  
	  
	  table continues...

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 
 	 
	10-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 
 	 Hole ID
  
	 Azimuth
(°)
	 Dip
(°)
	 Easting
(m)
	 Northing
(m)
	 Elevation
(m)
	 Depth
(m)

	 PJ-16-19
	 0
	 90
	 570042
	 2712206
	 2,216.0
	 21.0

	 PJ-16-20
	 0
	 90
	 570050
	 2712234
	 2,217.1
	 26.0

	 PJ-16-21
	 0
	 90
	 570056
	 2712261
	 2,217.5
	 24.5

	 PJ-16-22
	 0
	 90
	 570029
	 2712232
	 2,218.2
	 21.5

	 PJ-16-23
	 0
	 90
	 570014
	 2712210
	 2,217.7
	 20.0

	 PJ-16-24
	 ,0
	 90
	 569999
	 2712152
	 2,215.8
	 8.9

	 PJ-16-25
	 0
	 90
	 570004
	 2712125
	 2,216.2
	 8.4

	 PJ-16-26
	 0
	 90
	 570227
	 2712405
	 2,207.6
	 0.6

	 PJ-16-27
	 0
	 90
	 570219
	 2712377
	 2,206.3
	 0.5

	 PJ-16-27A
	 0
	 90
	 570218
	 2712373
	 2,206.0
	 0.7

	 PJ-16-28
	 0
	 90
	 570211
	 2712349
	 2,205.0
	 0.6

	 PJ-16-29
	 0
	 90
	 570188
	 2712322
	 2,205.5
	 7.9

	 PJ-16-30
	 0
	 90
	 570179
	 2712289
	 2,205.3
	 13.5

	 PJ-16-31
	 0
	 90
	 570173
	 2712261
	 2,205.8
	 16.0

	 PJ-16-32
	 0
	 90
	 570166
	 2712232
	 2,204.9
	 19.6

	 PJ-16-33
	 0
	 90
	 570159
	 2712206
	 2,204.5
	 17.0

	 PJ-16-34
	 0
	 90
	 570152
	 2712176
	 2,203.8
	 20.5

	 PJ-16-35
	 0
	 90
	 570141
	 2712147
	 2,202.9
	 13.7

	 PJ-16-36
	 0
	 90
	 570138
	 2712120
	 2,201.3
	 8.1

	 PJ-16-37
	 0
	 90
	 570130
	 2712090
	 2,200.6
	 4.3

	 PJ-16-38
	 0
	 90
	 570109
	 2712094
	 2,200.9
	 2.0

	 PJ-16-39
	 0
	 90
	 570116
	 2712122
	 2,201.7
	 6.0

	 PJ-16-40
	 0
	 90
	 570144
	 2712093
	 2,200.6
	 0.6

	 PJ-16-41
	 0
	 90
	 570049
	 2712386
	 2,245.9
	 28.5

	 PJ-16-42
	 0
	 90
	 570019
	 2712393
	 2,245.4
	 21.0

	 PJ-16-43
	 0
	 90
	 570061
	 2712412
	 2,245.5
	 20.0

	 PJ-16-44
	 0
	 90
	 570052
	 2712443
	 2,245.5
	 5.0

	 Z1
	 100
	 30
	 570206
	 2712408
	 2,203.7
	 9.0

	 Z2
	 100
	 30
	 570189
	 2712363
	 2,203.7
	 16.0

	 Z3
	 100
	 30
	 570185
	 2712313
	 2,203.7
	 13.0

	 Z4
	 100
	 30
	 570174
	 2712266
	 2,203.7
	 13.0

	 Z5
	 100
	 30
	 570162
	 2712219
	 2,203.7
	 13.0

	 Z6
	 100
	 30
	 570150
	 2712173
	 2,203.7
	 14.0

 
 
 
 
 
 
 
 
 
 
 
 
 Note: Datum NAD27 Mexico
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 
 	 
	10-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 
 
 
 Figure 10.3 Location of Drillholes Completed from 2015 to 2016 on the Oxide Tailings
  
 
 Source: Tetra Tech (2017)
  
 10.2.5 SPECIFIC GRAVITY RESULTS
  
 Bulk density samples were analyzed from all 2006 to 2012 drilling programs on both the Avino and San Gonzalo Veins. Analytical procedures are discussed in Section 11.7. Table 10.3 summarizes the results of these specific gravity measurements.
  
 Table 10.3 Avino and San Gonzalo Density Data Summary
  
 
 	 Domain
	 Number
	 Minimum
	 Maximum
	 Mean
	 Variance
	 Coefficient of
Variation

	 Avino Vein System

	 10 (Main)
	 40
	 2.53
	 3.00
	 2.71
	 0.02
	 0.05

	 20
	 42
	 2.43
	 2.90
	 2.68
	 0.01
	 0.03

	 wall rock
	 93
	 2.29
	 3.00
	 2.65
	 0.04
	 0.07

	 Combined
	 175
	 2.29
	 3.00
	 2.67
	 0.03
	 0.06

	 San Gonzalo Vein System

	 10
	 50
	 2.40
	 3.00
	 2.64
	 0.03
	 0.07

	 20
	 2
	 2.73
	 2.78
	 2.76
	 0.00
	 0.01

	 Wall Rock
	 41
	 2.40
	 3.00
	 2.69
	 0.02
	 0.05

	 Combined
	 93
	 2.40
	 3.00
	 2.67
	 0.03
	 0.06

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	10-7
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
       
 	 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY

 
 
 
 
 
 
 
 
 
 
  
 11.1 DRILLING AND TRENCHING OF OXIDE TAILINGS, 1990 TO 1991
  
 The oxide tailings were sampled prior to institution of NI 43-101 and associated quality assurance (QA) / quality control (QC) requirements, and as such no QA/QC measures were utilized during the 1990–1991 program. As a result, the resource estimate for the oxide tailings in Section 14.3 is all classified as Inferred. Twenty-eight holes were drilled and six trenches completed, from which a total of 461 samples were collecting for assaying. The analyses were completed in the on-site laboratory, which is described in Section 11.7 and was visited during the site visit, as summarized in Section 12.4.
  
 Avino’s current on-site, non-certified, laboratory facility consists of sample preparation, crushing and pulverizing, a fire assay and an atomic absorption (AA) section. However, the procedures and facilities used in 1990 to 1991 may be different from the current sample analysis procedures. Because of the uncertainty associated with these analyses, two separate verification exercises have been completed. Slim (2005d) collected several samples from the oxide tailings, and the results of this verification are discussed in Section 11.2. In 2012, Mr. M.F. O’Brien, QP, collected numerous verification samples from the oxide tailings, and these results are discussed in Section 12.3.2.
  
 11.2 TAILINGS INVESTIGATIONS (TEST PITS IN OXIDE TAILINGS), 2004
  
 The sampling method and approach adopted by Slim (2005d) on the test pits in the oxide tailings incorporated the following steps:
  
 	 1. 
	 A backhoe was used to excavate sample pits to a depth of 4 m. Hand samples were taken at 1 m vertical increments from the sidewalls of each pit.

	  
	  

	 2. 
	 The sample mass collected from each sampling point generally amounted to between 2 kg and 5 kg.

	  
	  

	 3. 
	 The sampling program was ostensibly based on the 1990 CMMA sampling program. Fourteen sample pits were excavated to a depth of 4 m and generated 86 samples.

 
 
 
 
 
 
 
 
 
 
  
 The samples were air-freighted to PRA labs in Vancouver, British Columbia, from Durango, Mexico. The samples had been initially bagged and sealed with identification tags attached. The samples were allotted new identification numbers and were subsequently un-bagged and dried. The dry samples were individually mixed and blended, and then split into four one-quarter fractions as directed by Slim (2005d). One fraction was used to determine the head grade assay, while another quarter was used to create composite samples used for the subsequent metallurgical test work program. Instructions were followed with the compositing of the samples, and the test work program.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	11-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Excess sample was archived for future test work or analyses. For analytical techniques employed during the test work program, the standard fire assay (with AA spectrophotometric finish) was initially used for the silver analyses.
  
 However, this method is not very accurate for silver values of less than 100 g/t. Subsequently, the inductively coupled plasma mass spectroscopy (ICP-MS) method, which uses multi-acid digestion, was used for silver. This method also resulted in analyses being obtained for other elements of interest (e.g., copper, zinc, lead). The standard fire assay method was used for gold analyses. Cyanide and lime concentrations were measured using standard titrimetric methods. Total sulphur was measured using a standard Leco furnace, and sulphide sulphur assays were measured using the standard wet chemical gravimetric analysis (Slim 2005d).
  
 The PRA labs (part of Inspectorate labs) in Nevada and British Columbia are International Organization for Standardization (ISO) 9001:2008 certified, full service laboratories that are independent of Avino. The QP did not independently verify nor compare the results of the sampling program.
  
 11.3 DRILLING PROGRAM, SAN GONZALO, 2007 TO PRESENT
  
 For the drilling programs at San Gonzalo, core is sawed at Avino's core storage facility at the secure mine site. Samples of vein material, usually from a few centimeters to 1.5 m, are placed and sealed in plastic bags, which are collected by personnel from Inspectorate Labs in Durango at the mine site facilities. Samples are prepared in Durango, and pulps are sent to the Inspectorate facility in Sparks, Nevada for analysis. Since 2016, all drill core samples have been sent to SGS Durango for sample preparation and assaying. Switch was made for faster turnaround times.
  
 Sample preparation in Durango involves the initial drying of the entire sample. Two-stage crushing is used to create a product which is at least 80% minus 10 mesh. A Jones riffle splitter is then used to separate a nominal 300 g portion of the sample. This 300 g sub‐sample is then pulverized to more than 90% passing a 150-mesh screen. Inspectorate Labs states that they use sterile sand to clean the pulverizer between samples (Gunning 2009).
  
 Gold analyses are by 30 g fire assay with an AA finish. Silver, zinc, and lead are analyzed as part of a multi-element inductively coupled argon plasma package using a four-acid digestion with over-limit results for silver being reanalyzed with assay procedures using fire assay and gravimetric. Avino employs a rigorous QC program that includes standardized material, blanks, and core duplicates. However, for the 2007 program, Avino did not perform any independent QA/QC and relied on the internal QA/QC procedures completed by the labs (Gunning 2009).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	11-2
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino.
  
 Avino used a series of standard reference materials (SRMs), blank reference materials (blanks), and duplicates as part of their QA/QC program during analysis of assays from San Gonzalo Vein drillholes. The QP compiled and reviewed these results in Section 12.1.4.
  
 11.4 DRILLING PROGRAMS, ET ZONE OF THE AVINO VEIN, 2006 TO PRESENT
  
 Sample lengths of NQ drill core were diamond sawed into halves by mine staff and shipped to Inspectorate Labs in Durango for preparation into pulps and rejects. Pulps were analyzed at Inspectorate Labs in Sparks, Nevada. Gold and silver were analyzed by fire assay using aqua regia leach and AA finish. Other elements are reported from a 29‐element ICP-MS package. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.
  
 Avino used a series of certified reference materials (CRMs), blank reference materials (blanks), and duplicates as part of their QA/QC program during analysis of assays from Avino Vein drillholes. The QP compiled and reviewed these results in Section 12.1.4.
  
 11.5 UNDERGROUND CHANNEL SAMPLING OF SAN GONZALO VEIN, 2010 TO PRESENT
  
 Samples from channels cut across the San Gonzalo Vein were assayed by Inspectorate Labs. Samples were crushed and ground in Durango with pulps assayed in Richmond, British Columbia using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver. Base metals were analyzed via aqua regia digestion and ICP-MS. Inspectorate Labs in Durango and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.
  
 For the 2011 bulk sampling program of San Gonzalo, samples were obtained from channels cut across the vein, and were assayed by Inspectorate Labs. Samples were crushed and ground in Durango with pulps assayed in Richmond, British Columbia using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver. Base metals were analyzed via aqua regia digestion and ICP-MS for base metals. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino.
  
 Samples from 2012 and 2013 underground channel sampling of the San Gonzalo Vein are shipped to Inspectorate Labs for analysis for gold, silver, arsenic, bismuth, copper, molybdenum, lead, antimony, zinc, and mercury. Samples are crushed and ground in Durango with pulps assayed in Reno, Nevada using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver, and aqua regia digestion and ICP-MS for base metals. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample QA/QC procedures are as described in Section 11.3.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	11-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 11.6 AVINO LABORATORY
  
 The Avino laboratory has fire assay, AA, and sieving analysis equipment and has been recently upgraded with new AA equipment. A high standard of neatness and cleanliness is being maintained to reduce the risk of contamination. The laboratory was reviewed by Mr. O’Brien during site visits in 2012 and 2016.
  
 11.7 SPECIFIC GRAVITY SAMPLES
  
 Avino completed specific gravity measurements on drillcore from both the Avino and San Gonzalo Veins. All measurements were completed by Avino staff on the mine site. Two different methods were employed to obtain these specific gravity values: caliper volume calculation and water displacement (WD). The procedures followed for each method are summarized in the following sections.
  
 A total of 262 samples were measured for bulk density, 110 from the Avino Vein and 152 from the San Gonzalo Vein. The QP provides recommendations regarding specific gravity sampling procedures in Section 26.1.4 and a QP opinion in Section 12.5.1.
  
 11.7.1 CALIPER VOLUME CALCULATION METHOD
  
 The caliper volume calculation method of determining the specific gravity of drillcore samples involved the following procedures, based on the methodology outlined by Lipton (2001):
  
 	  
	 ·
	 Each measurement involves pieces of whole core with the ends neatly cut perpendicular to the core axis.

	  
	  
	  

	  
	 ·
	 The core diameter is determined using a pair of vernier calipers, and the diameter should be measured at several points along the length of core and averaged.

	  
	  
	  

	  
	 ·
	 The core length is measured using a tape measure.

	  
	  
	  

	  
	 ·
	 The mass is determined by weighing the core; weighing should be completed once the core is dried.

	  
	  
	  

	  
	 ·
	 The dry bulk density is calculated by: density = mass/volume where volume = Pi x (average core diameter/2)2 x core length.

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	11-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 11.7.2 WATER DISPLACEMENT METHOD
  
 The WD method of determining the specific gravity of drill core samples involved the following procedures, based on Archimedes’ Principle:
  
 	  
	 ·
	 The mass is determined by weighing the core; weighing should be completed once the core is dried.

	  
	  
	  

	  
	 ·
	 A graduated cylinder, of an appropriate size to completely submerse the core, is used to determine the volume. The volume of water in the graduated cylinder is measured prior to submersing the core.

	  
	  
	  

	  
	 ·
	 The core is then submersed in water in the graduated cylinder and the total volume is measured.

	  
	  
	  

	  
	 ·
	 The difference in the volume of water before and after sample submersion is the volume of the sample.

	  
	  
	  

	  
	 ·
	 The dry bulk density = mass/volume.

 
 
 
 
 
 
 
 
 
 
  
 11.8 QP OPINION
  
 The QP is not aware of any drilling, sampling, or recovery factors affecting the reliability of the samples. It is the QP’s opinion that the sample preparation, security, and analytical procedures followed by Avino are fit for the purpose of this Technical Report.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	11-5
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 	12.0 DATA VERIFICATION

 
 
 
 
 
 
 
 
 
 
  
 12.1 AVINO AND SAN GONZALO VEIN DRILLHOLE DATABASE VERIFICATION
  
 The QP reviewed the drillhole data provided by Avino in the form of a Microsoft Access database before and after loading the data into Leapfrog GeoTM. on a hole-by-hole basis, including drillhole collar, survey, lithology, and assay data.
  
 During several site visits in between 2012 and February 2020, the QP verified several drill hole logs against the physical cores for ET06_02, ET07_01, ET07_03, SG15_03, and SG15_02. No significant discrepancies were found. 
  
 Collars for exploration drillholes are marked by concrete monuments, and the collars have been surveyed. Subsequent collars have been similarly marked and were observed during a site visit in June 2016.
  
 A check of the coordinates with a handheld global positioning system (GPS) during a site visit in 2016 revealed a possible 4 m constant error, which may indicate the existence of a small surveying error on the Property.
  
 The QP opinion of the reliability of the Avino drillhole data is discussed in Section 12.5.1 and detailed recommendations are provided in Section 26.1.
  
 12.1.1 COLLAR AND ASSAY DATA
  
 Table 12.1 summarizes the database validation results. In early 2020, Tatiana Alva of Ausenco validated the drillhole database and it was consolidated into a consistent and comprehensive Microsoft Access database that is maintained by mine personnel with offsite backup in the Avino office in Durango and on the Cloud using Egnyte.
  
 The QP subsequently reviewed the data and The Avino Vein lithology data for 13 historic drillholes at the Avino ET Mine and all channel samples, is very sparse owing to the age of the records. The upper part of the deposit model has consequently been modelled using assay data and development mapping information. As the deficient lithology information pertains mainly to parts of the deposit that have been mined out, The QP does not consider it to be a material deficiency.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	12-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 12.1 Number of Records and Discrepancies for the Avino (ET and San Gonzalo) Drillhole and Channel Sampling Data
     
 	 Avino Vein
	 Number of
Records
	 Discrepancies
	 Discrepancy Rate
(%)

	 Avino Vein

	 Survey Data
	 11,415
	 -
	  

	 No Surveys for Collar
	  
	 0
	  

	 Duplicate Collar and Surveys
	  
	 0
	  

	 Duplicate Survey Depths
	  
	 0
	  

	 Assays
	 42,564
	  
	 0

	 No Sample for Collars
	  
	 0
	  

	 Overlapping Segments
	  
	 0
	  

	 Collar Max Depth Exceeded
	  
	 0
	  

	 Lithology
	 99 holes
	  
	 54.2

	 From to Depth Overlap
	  
	 0
	  

	 No Samples for Collar
	 13
	 13 historic holes
	 13

	 Collar Max Depth Exceeded
	  
	 0
	  

	 San Gonzalo Vein

	 Survey Data
	 3,636
	  
	 0

	 No Survey for Collar
	  
	 0
	  

	 Duplicate Collar and Surveys
	  
	 0
	  

	 Duplicate Survey Depths
	  
	 0
	  

	 Incomplete Survey Data
	  
	 0
	  

	 Assays
	 17,514
	  
	 0

	 No Samples for Collars
	  
	 0
	  

	 Overlapping Segments
	  
	 0
	  

	 Collar Max Depth Exceeded
	  
	 0
	  

	 Lithology
	 140 holes
	  
	 0

	 From to Depth Overlap
	  
	 0
	  

	 No Samples for Collar
	  
	 0
	  

	 Collar Max Depth Exceeded
	  
	 0
	  

 
 
 
 
 
 
 
 
 
   
 A previous validation exercise was completed for assay results from post-2009 drilling by Tetra Tech (2012). Original assay certificates were compared against the data as reported by Avino. Assay results from drillholes SG-11-13 to SG-11-17, and ET-12-01 to ET-12-09 were verified. For all metals in the database (gold, silver, copper, lead, zinc, and bismuth), the error incidence was less than 1%.
  
 Assay certificates from SGS Durango were verified against the drillhole assay database. The method was to select random samples from the certificates for comparison with the final values residing in the assay table. One hundred samples from the 2017 and 2018 campaigns were checked for silver, gold, and copper assays integrity. The results are summarized in Table 12.2.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	12-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 12.2 Assay Data Verification Result
    
 		 Number of Random Data
	 % errors

	 Samples
	 100
	 18

	 Ag
	 100
	 7

	 Au
	 100
	 13

	 Cu
	 100
	 1

 
 
 
 
 
 
 
 
 
   
 Errors were encountered in 18% of the data lines. Gold data entry was particularly badly affected by transcription errors, with decimals misplaced to reduce many entries by a factor of 10. For both silver and gold, some inductively coupled plasma (ICP) assays with low precision, were entered in the drillhole database, while the more precise and larger fire assay data was ignored. These problems mainly affect the 2018 assay data and will have the effect of biasing the 2018 gold assays low.
  
 The effect of this high frequency of entry error on the mineral resource is likely to be conservative and is limited to the 2018 assay data. The QP does not believe this problem is material to the Mineral Resource. Nevertheless the drillhole database should be verified against the assay certificates as a matter of urgency as this high rate of error is not acceptable as a risk to data integrity.
  
 12.1.2 DOWNHOLE SURVEY DATA
  
 Downhole survey data exists for 87 of the 98 drillholes completed in the Avino and San Gonzalo Veins. Most drillholes have three or fewer downhole survey points, which is less frequent than typical industry practice. Many of these holes contain a survey data point at the collar and near the end of hole, and sometimes part-way down the hole. However, 26 of the 87 holes for which downhole survey data exists were not surveyed to within 10 m of the end of the hole. All measurements were completed by a magnetic survey method, which is not recommended in general, and particularly not in locations with extensive underground infrastructure such as those present on the Property. Given the abundance of historical infrastructure on the Property and the potential for any drillholes to intersect active workings, downhole survey measurements should be collected at a frequency of at least every 10 m and all drillholes should be cemented following completion.
  
 Downhole survey data for hole SG-07-06 was disregarded below 50 m depth due to an unrealistic kink in the drillhole orientation below this depth, which could be due to an instrument malfunction or to magnetic interference.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-3
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 12.1.3 GEOLOGY DATA AND INTERPRETATION
  
 The QP has the following observations on the Avino geology database and interpretation:
  
 To the QP’s knowledge, routine photography of drillcore and underground drifts is being completed. A digital photographic record is kept of all drillcore and underground drifts for future reference and to facilitate consistent core logging and geology interpretation.
  
 12.1.4 REVIEW OF DRILLHOLE QUALITY ASSURANCE/QUALITY CONTROL SAMPLES
  
 QA/QC samples were submitted in the sample stream during all 2006 to 2012 drilling programs on both the Avino and San Gonzalo Veins, although not in a consistent manner. These results were reviewed in detail by Tetra Tech and were discussed in Tetra Tech’s 2013 report. Avino used a number of SRMs, blank reference materials (blanks), and duplicates as part of their 2015/2016 QA/QC program.
  
 STANDARDS FOR OXIDE TAILINGS CAMPAIGN 2015 TO 2016
  
 Three standards were analyzed during the 2015 to 2016 oxide tailings drilling campaign. Three laboratory-certified standards (see Table 12.3) were used, and the silver and gold results are discussed below.
  
 The standards were submitted at a rate of 10% (total of 561 samples), which is higher than the industry norm of 5%. They were submitted to both Inspectorate and SGS Laboratories. 
  
 The three standards appear to have been determined within the limits in most of cases, but standard CDN-ME-1305 showed some anomalies for silver, notably one high grade return above the upper limit and a run of four over the upper limit returns for the Inspectorate results. This is a high-grade silver sample, so it may be that the standard was not well mixed and is showing some nugget behaviour. 
  
 STANDARDS FOR EXPLORATION DRILLING 2016 TO 2017
  
 During the period of March 2016 to February 2018, 5,912 samples were submitted for assay, 5,462 to SGS Durango, and 450 to Inspectorate America Corporation. Totals of 628 standard samples, 181 blanks, and 138 duplicates were submitted. Thus, a relative submission rate of 10.6% SRMs, 3.1% blanks, and 2.3% duplicate samples was maintained during the period. This is within industry norms.
  
 Nine different reference standards, bracketing the expected ranges of grades for gold, silver, and copper, were analyzed during the 2016 to 2017 period drilling campaigns for Avino-ET, San Gonzalo, Guadalupe, and San Juventino. The silver, gold, and copper results are discussed below.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12-4
	

	 

 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 12.3 Standards Specification and Performance
   
 
    
 The standards performances are colour-coded in the two right hand columns of Table 12.3. Shades of red indicate relatively high percentage of assay returns recorded outside the two and three standard deviation confidence limits, while shades of green reflect low percentage of assays falling outside the limits. The pattern of performance for all three metals is similar for each of the standards. CDN-ME-1307 is the worst performer for gold, silver, and copper. 
  
 Performance graphs showing the results for CDN-ME-1307 are shown as an example of a poorly performing standard in Figure 12.1, Figure 12.2, and Figure 12.3 for gold, silver, and copper, respectively. In the following graphs, good performance is indicated by consistent appearance of the assays within the red lines (representing three standard deviations from the mean of the material) and the brown lines (representing two standard deviations from the mean of the material). Poor performance is indicated by assays falling outside the confidence limits.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-5
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.1 Standard 1307_ME-1307 – Gold Performance
  
 
 Source: Avino
  
 Figure 12.2 Standard CDN-ME-1307 – Silver Performance
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12-6
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.3 Standard CDN-ME-1307 – Copper Performance
  
 
 Source: Avino
  
 Standard CDN-ME-1307 has produced quite erratic results for all three metals. This standard was not employed for a period of six months, between May and November 2016. Standard materials can become less homogenous and thus less amenable to act as a standard material, if they are allowed to remain in place for a long period of time, particularly if they are subjected to low frequency consistent vibration. This may occur on a mine site with heavy equipment or a laboratory crushing equipment in frequent prolonged use. This is one possibility for the pattern of assay results. It is best to keep consistently using a standard material until it is used up, as it may deteriorate through physical segregation of light and heavy particles and also possibly undergo chemical changes that can affect assay performance. 
  
 Performance graphs showing the results for CDN-ME-1414 are shown as an example of a well-performing standard in Figure 12.4, Figure 12.5, and Figure 12.6 for gold, silver, and copper, respectively. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-7
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.4 Standard CDN-ME-1414 – Gold Performance
  
 
 Source: Avino
   
 Figure 12.5 Standard CDN-ME-1414 – Silver Performance
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	12-8
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.6 Standard CDN-ME-1414 – Copper Performance
   
 
 Source: Avino
   
 CDN-ME-1414 displays consistent results and was frequently used during the period July 2017 to March 2018.
  
 BLANKS
  
 Blank performance is shown in Figure 12.7, Figure 12.8, and Figure 12.9, for gold, silver, and copper, respectively. All three graphs cover the period May 2016 to March 2018. Clusters of anomalous grades are present for all three metals, from November 2016 to March 2017, and may represent laboratory contamination that could be due to:
  
 	  
	 ·
	consignments of high volumes of samples, or
	  
	  
	  

	  
	 ·
	high grade material from another operation, or
	  
	  
	  

	  
	 ·
	end-of-year staff turnover.

 
 
 
 
 
 
 
 
 
  
 In any case, these sporadic incidents of blank failure are relatively few and contamination does not appear to be significant. Nevertheless, Avino should continue to monitor blanks and inform external laboratories if failures occur in clusters.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12-9
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.7 Blank – Gold Performance
  
 
 Source: Avino
   
 Figure 12.8 Blank – Silver Performance
   
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12-10
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.9 Blank – Copper Performance
  
 
 Source: Avino
  
 DUPLICATE ASSAYS
  
 Duplicate results for gold, silver, and copper are summarized in Figure 12.10 to Figure 12.15. Scatterplots (Figure 12.10, Figure 12.12, and Figure 12.14) show good correspondence across the spectrum of assay values. Power fit curves have been generated to show the relationships telescoped across the logarithmic axes.
  
 Half absolute relative difference (HARD) charts are useful for assessing the precision of a set of duplicates and are shown in Figure 12.11, Figure 12.13, and Figure 12.15, for gold, silver, and copper, respectively. In all three cases, the plots do not pass through the nominal target of 90th percentile passing 20% HARD for pulp duplicates. 
  
 This could be due to:
  
 	  
	 ·
	retaining low-grade data close to detection limit level data (high variability), or
	  
	  
	  

	  
	 ·
	too small a sample, or
	  
	  
	  

	  
	 ·
	insufficient crushing before splitting, or
	  
	  
	  

	  
	 ·
	insufficient pulverising before splitting,

 
 
 
 
 
 
 
 
 
  
 The QP recommends that some experiments be carried out to improve assay precision.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	12-11
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.10 Gold – Duplicate Correlation
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12-12
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
   
 Figure 12.11 Gold – Half Absolute Relative Difference Chart
   
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	12-13
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.12 Silver – Duplicate Correlation
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-14
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 12.13 Silver – Half Absolute Relative Difference Chart
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-15
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Figure 12.14 Copper – Duplicate Correlation
  
 
 Source: Avino
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-16
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Figure 12.15 Copper – Half Absolute Relative Difference Chart
   
 
 Source: Avino
  
 The correlation graphs for the three metals (Figure 12.10, Figure 12.12, and Figure 12.14) show no significant bias between originals and repeats. 
  
 12.2 BULK DENSITY 
  
 12.2.1 AVINO AND SAN GONZALO VEIN BULK DENSITY
  
 A limited number of specific gravity measurements were originally collected by Avino from drillholes in the Avino and San Gonzalo Veins. These measurements were not representative of the veins spatially or by drilling program, and Tetra Tech (2012) requested additional specific gravity measurements be completed on drillcore from both veins. These additional measurements were completed by Avino in 2013. Review of these measurements (see Section 14.6) suggests that they are a limited basis for spatial estimation. Consequently, the long-term historic production average value of 2.63 has been assigned as a density factor to the Avino and San Gonzalo Mineral Resources disclosed in Section 14.0.
  
 A QP opinion of the reliability of the Avino specific gravity data is discussed in Section 12.5.1.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	12-17
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 12.3 OXIDE TAILINGS DRILLHOLE DATABASE
  
 Tetra Tech (2012) compiled the assay data used in the oxide tailings resource estimate by referring to original mine sections, and verification of this data is described below. The 1:1,000 scale plans drafted for this exercise were scanned and used to verify the positions of the old drillholes. One transposition error on a collar elevation in mine coordinates was observed and subsequently corrected (drillhole E3 was incorrectly recorded at an elevation of 2,275 m, and was corrected to 2,257 m).
  
 Avino provided the following formulae to convert the collar coordinate data from local mine grid coordinates to Universal Transverse Mercator (UTM) coordinates:
  
 	  
	 ·
	local mine grid X + 560421.245 = X UTM
	  
	  
	  

	  
	 ·
	local mine grid Y + 2707618.312 = Y UTM
	  
	  
	  

	  
	 ·
	local elevation - 41.306 = elevation amsl.

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 Since the trenches (named with Z-series) from the 1990 to 1991 program represent incomplete surface sampling of an unrepresentative part of the pile (at the wall where the outlets for the hydraulic emplacement of the material were sited), these data were not used in the oxide tailings resource estimate.
  
 12.3.1 ASSAY VERIFICATION OF 1990/1991 DRILLHOLES IN OXIDE TAILINGS
  
 Tetra Tech (2013) verified 54% of drillholes in this database (15 of 28 drillholes) and 58% of both silver and gold assays (444 of 766 values) used for this estimation. QG Consulting verified the oxide tailings data in 2016 and the QP reviewed the work again in 2017 and is not aware of any significant errors.
  
 The QP opinion of the reliability of the 1990 to 1991 oxide tailings assays is discussed in Section 12.5.2.
  
 12.3.2 OXIDE TAILINGS VERIFICATION SAMPLES
  
 As was reported by Tetra Tech (2013), during a previous site visit conducted on June 7 and 8, 2012, Michael F. O’Brien visited the tailings heaps and supervised the collection of eight samples from the oxide tailings (3 kg to 4 kg each). The samples were collected from gulleys that had eroded into the tailings pile and provided a vertical section through the tailings. It is believed that while such samples cannot provide a statistically representative reflection of overall grade, they do provide some insight into the grade of the tailings near surface. The eight samples were each split into three separate sub‐samples, which were submitted in turn to the Avino Mine laboratory together with SGS laboratories in Durango and Vancouver.
  
 Statistical analysis of the three sets of results demonstrated that there is good correlation between the three laboratories and this conclusion remains valid.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-18
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 The sampling exercise in 2012 provided the opportunity to review the artificial sedimentary deposit that comprises the Avino oxide tailings and supported the previous assumptions of the tailings, such as regarding the oxide tailings as two superimposed units with slightly different chemical and particle size characteristics and pronounced horizontal continuity. The source data and plans prepared more than 20 years ago after the initial drilling campaign were examined at the mine and found to be of professional standard and provide support for their use in the estimation of the oxide tailings. The overall homogeneity of the material, horizontal continuity, and relatively high confidence in the volume and tonnage, mitigate any uncertainty in the historical dataset. The pattern of sample grades (see Figure 14.6) from the 2015/2016 drill campaigns the earlier drilling form a coherent pattern with no obvious discontinuity between campaigns.
  
 12.4 SITE VISIT
  
 Michael F. O’Brien conducted site visits on June 7 and 8, 2012; June 6 and 7, 2016; June 12 to 15, 2017; and February 11 to 13, 2020. During the latest visit, Mr. O’Brien visited Avino and San Gonzalo underground mines to review the Avino and San Gonzalo Vein systems. The surface drill sites and exposure to the Guadalupe Vein were examined.
  
 12.5 THE QP CONCLUSIONS AND OPINION
  
 The drill dataset has been produced over a long period of time within a brownfield property. All data used for this study is obtained from work carried out by staff of the current issuer, which has owned the Property continuously since the start of this work.
  
 12.5.1 AVINO AND SAN GONZALO VEINS
  
 DRILLHOLE DATABASE
  
 The drillhole data for the property has been consolidated into a single Microsoft Access database with the exception of the shallow surface drilling for the oxide tailings deposit. The consolidated database with offsite and cloud-based backup has materially improved the consistency and security of the exploration data. The QP recommends that the exploration data pertaining to the oxide tailings deposit and the QA/QC information be integrated into the database. 
  
 DOWNHOLE SURVEY DATA
  
 Downhole survey data and the location of the Avino and San Gonzalo Vein intersections observed in drillholes have been verified by both surface and underground mapping, providing confidence in the location, orientation, and true width of both veins.
  
 GEOLOGY DATA AND INTERPRETATION
  
 The legacy data from the Avino Vein is understandably deficient in recorded lithology data. Modelling of the Avino Vein and San Gonzalo Vein systems made use of grade as well as lithology data. Consequently, the QP regards the lithology database adequate and fit for the purposes of resource estimation. The recent mining history supports that the potentially economic units persistently demonstrate continuity as new exposures become available.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-19
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 SPECIFIC GRAVITY SAMPLES
  
 Based on a review of specific gravity data from drillholes in the Avino and San Gonzalo Veins, the QP concludes that future bulk density measurements should be completed using a water displacement method. A comparison of the two measurement techniques used for these specific gravity samples indicates that the results are acceptable for this study. However, the QP considers that the current level of data is inadequate for meaningful spatial estimation and recommends that the frequency at which specific gravity measurements are collected should be increased. To supplement the specific gravity data generated from drillhole samples, the QP recommends that large grab samples be obtained from the underground development at approximately 30 m intervals and subjected to the water displacement method of specific gravity determination.
  
 QA/QC SAMPLES
  
 The rate of QA/QC SRMs, blanks, and duplicates insertions meets recommended industry standards. HARD charts indicate less assay precision than would be expected for pulp duplicates. 
  
 The QP has found no evidence of systematic laboratory bias, indicating that the assay results are reliable, but the QP recommends that some experiments be carried out to improve assay precision.
   
 12.5.2 OXIDE TAILINGS
  
 The identified grade pattern is similar in character to other tailings deposits, such as overall homogeneity and a pronounced horizontal continuity.
  
 Verification samples taken by Mr. O’Brien have confirmed the presence of gold and silver mineralization at grades similar to those obtained in the original tailings drilling campaign, with a low silver bias consistent with the superficial position of the samples in the zone most likely to have suffered surface leaching. The verification samples also confirm that the mine lab assays are not materially different from those of external labs.
  
 12.5.3 QP OPINION
 
 There were no limitations on or failure to conduct data verification.
  
 The QP believes the assay, sample location, vein lithology, and specific gravity data from the Avino and San Gonzalo Veins are sufficiently reliable to support the purpose of this Technical Report and a current Mineral Resource on both veins and the oxide tailings.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	12-20
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 	13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The Avino mill is currently processing mineralization materials from the Avino Property. The target metal values are gold, silver, and copper. There is potential tailings resource from previous milling operations; currently, there is no operation on tailings material. The materials from the previous San Gonzalo Mine were processed from October 2012 to Q4 2019 with the target values of gold, silver, lead, and zinc. There are four grinding and flotation lines with a total capacity of 2,500 t/d, including two 1,000 t/d and one 250 t/d lines to recover copper, gold, and silver into a copper concentrate, and a separate 250 t/d line, which was used to produce materials from the previous San Gonzalo Mine, which has ceased operation since the end of 2019.
  
 13.1 AVINO VEIN
  
 The Avino Vein material is currently been processed at the Avino mill using froth flotation to produce a marketable copper concentrate with silver and gold credits. A gravity concentration circuit was also incorporated in three of the four processing lines. The material has been successfully processed in the past. 
  
 The Avino Vein was mined during the 27 years of open pit and underground production prior to 2001. From 1997 to 2001, the mine and mill production averaged 1,000 t/d and achieved up to 1,300 t/d. The mine and mill operations were then suspended. Following several years of redevelopment, in Q4 2014 Avino completed its Avino mining facility and mill expansion. On January 1, 2015, full-scale operations commenced and commercial production was declared effective April 1, 2016 following a 19-month advancement and test period.
  
 The mill feed from the Avino Vein has been processed using froth flotation to produce a copper concentrate with silver and gold credits. In the 2019 operation, the average copper, silver, and gold recoveries reporting to a copper/gold/silver concentrate and a gravity concentrate were 86%, 85%, and 73% respectively. The total material processed was 427,147 t. 
  
 Bismuth was identified as a deleterious material in the concentrate and Avino had conducted preliminary test work in an effort to reduce the bismuth content in the concentrate to improve the smelter return. Six batch flotation tests were completed by SGS Mineral Services (SGS) to explore the possibility of bismuth and copper separation from a copper concentrate produced from the Avino mill. The separation tests included 1) floating copper minerals with suppressing bismuth-bearing minerals; 2) floating bismuth-bearing minerals with suppressing copper minerals on the copper concentrate reground to 80% passing approximately 25 μm. The test results showed that approximately 30% of the bismuth in the bulk copper concentrate can be floated into a concentrate containing 18.7% Bi from the copper concentrate containing 1.8% Bi using flotation separation. The copper and silver reporting to the bismuth concentrate were 1.3% and 14.7%, respectively. SGS indicated that compared to the floating copper and suppressing bismuth process, it appears that the process with floating bismuth and suppressing copper is feasible and promising. SGS recommended that further copper and bismuth separation test work using the flotation procedure, including mineralogical study, be conducted. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 13.2 OXIDE TAILINGS
  
 The potential for processing the oxide tailings resource from previous milling operations has been studied. The subsections summarize the metallurgical characterization obtained from previous test work and the study conducted by MMI in 2005 (Slim 2005c). MMI’s report used the metallurgical results obtained and conclusions drawn by PRA (Huang 2003; Huang and Tan 2005). The revised and final report by MMI was dated October 2005 (Slim 2005d).
  
 The following sections are reproduced from the 2013 PEA (Tetra Tech 2013), with some minor modifications to summarize the findings of the metallurgical test programs conducted so far.
  
 HISTORICAL METALLURGICAL TEST RESULTS
  
 A number of metallurgical evaluations have been completed on various samples from the oxide tailings storage facility, according to the MMI report produced in 2003 (Slim 2003). Apparently, the first cyanidation tests were conducted in 1982, followed by further tests performed over the years. The summarized cyanidation test results are shown in Table 13.1 taken from the 2003 MMI report (Slim 2003), while the reported flotation test results are given in Table 13.2. The results obtained from the test work program initiated by MMI in 2003 and 2004 were reported in the MMI 2005 technical report (Slim 2005d) and are included in Table 13.1 for purposes of comparison. The results will be discussed in greater detail later in this section.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	13-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 13.1 Cyanidation Test Results
  
 	 Author
	 Date of
Test
	 Extraction (%)
	 Leaching
Time
(h)
	 Particle
Size
(μm)

	 Ag
	 Au

	 Denver Equipment
	 1982
	 69.3
	 66.7
	 24
	 66.6% < 149

	 Penoles
	 1987
	 78.3
	 88.9
	 24
	 87% < 74

	 Maja
	 1990
	 85.9
	 80.9
	 24
	 100% < 105

	 Chryssoulis
	 1990
	 85.9
	 80.9
	 24
	 no data

	 Rosales
	 1996
	 83.9
	 76.9
	 23
	 75% < 74

	 MMI
	 2003
	 77.1
	 71.4
	 24
	 86% < 74

	 MMI
	 2003
	 88.8
	 88.4
	 48
	 86% < 74

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Table 13.2 Flotation Test Results
  
 	 Author
	 Date of
Test
	 Recovery
(%)
	 Particle
Size
(μm)

	 Ag
	 Au

	 Penoles
	 1987
	 60.2
	 47.1
	 87% < 74

	 Rosales
	 1996
	 69.4
	 66.9
	 75% < 74

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 For the tests outlined in Table 13.1 and Table 13.2, no details have been provided regarding:
  
 	  
	 ·
	the location or the manner in which the samples were taken
	  
	  
	  

	  
	 ·
	why these particular samples were taken
	  
	  
	  

	  
	 ·
	the test parameters employed
	  
	  
	  

	  
	 ·
	the assay techniques used, etc.

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The first set of results for tests conducted on MMI samples from the 2003 sampling campaign indicate a silver extraction of 77.1% and gold extraction 71.4%. However, these results cannot be verified since the origin of this set of numbers as quoted in the MMI technical report (Slim 2005d) is not known. The second set of results was reported in the 2003 PRA report (Huang 2003). Considered in general terms, it would appear as if the cyanidation test results are reasonably consistent over the indicated period of time. However, no specific conclusions should be drawn since nothing is known about the head grades of the samples, the samples used, or the test and assay procedures used at the time that these tests were conducted.
  
 The flotation results vary widely for similar particle sizes with recoveries ranging from 60% to 69% for silver and 47% to 67% for gold. However, the test details of these reported cyanidation and flotation tests are unknown.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 THE MMI TECHNICAL REPORT
  
 Avino commissioned MMI to produce a document that was NI 43-101 compliant with respect to detailing the indicated oxide tailings resource (subsequently referred to as an Inferred Resource) and to define the metallurgical characterization and assay results for this material. The proposed economic processing of this tailings material could then be used to form the financial analysis basis for restarting the mine.
  
 The first report prepared by MMI was titled "Tailings Valuation" and was dated November 2003 (Slim 2003). Two further reports by MMI titled "Preliminary Feasibility" (Slim 2005a) and "Tailings Valuation" (Slim 2005b) were produced in May 2005. The “Tailings Valuation” report (Slim 2005b) was subsequently revised and re-titled "A Tailings Resource" in July 2005 (Slim 2005c). This July 2005 MMI report (Slim 2005c) was reviewed by the Canadian Securities Administrators and returned to MMI for revision. The revised MMI report was re-issued as "A Tailings Resource" and dated October 2005 (Slim 2005d) and was resubmitted to the CSRA for review. The October 2005 report (Slim 2005d) was produced for Avino Mines, Cia Minera Mexicana, Durango, Mexico, by Bryan Slim, of MMI, North Vancouver, British Columbia, Canada. The document was submitted as a technical report to the CSRA.
  
 Two sets of test programs were conducted by PRA under direction of MMI. One was conducted during 2003 for which no sample origin can be determined (Huang 2003), and the other, more detailed test program was conducted during 2004 (Huang and Tan 2005). The 2004 test work and assaying program was designed and supervised by MMI. It was conducted on the samples collected from the tailings dam by MMI during 2004, while also using the results from the preliminary metallurgical scoping tests completed during 2003 as a guide. PRA staff, at their facilities in Vancouver, British Columbia, conducted all the test work from both MMI test programs.
  
 INTRODUCTION TO THE MMI 2003 METALLURGICAL TEST PROGRAM
  
 The 2003 test program consisted of the following tests as summarized in Table 13.3. The cyanidation extraction results obtained were used in a preliminary report by MMI (Slim 2003). MMI considered using a 2,000 t/d vat leaching process to recover silver and gold from the oxide tailings; however, this treatment process option was revised when the results of the 2004 test program became available.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-4
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Table 13.3 Test Procedures MMI 2003 Test Program
  
 	 Process/Procedure
	 Details of Test
	 Sample Identify

	 Sample Preparation
	 No details documented
	 Sample L and Sample U

	 Head Assays
	 Fire assays, AA, and ICP multi-acid
	 Composite of L and U

	 Specific Gravity
	 Standard pycnometer test
	 Composite of L and U

	 Cyanidation Leach
	 P80 = 68 μm; 40% solids; pH 10.5; 1.0 g/L NaCN; 48 h; dO2 > 7.9 mg/L 0.4 kg sample
	 Composite of L and U

	 Flotation
	 Rougher and two scavenger stages; P80 = 85 μm; 35% solids; pH 5.5; PAX & A208 with MIBC; 1 kg sample
	 Composite of L and U

	 Mineralogical
	 Examination of flotation tailings
	 Composite of L and U

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	  
	 Source:
	 Slim (2003)

	  
	 Note:
	 dO2 – dissolved oxygen; PAX – potassium amyl xanthate; NaCN – sodium cyanide

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 The exact origin of Sample L and Sample U is not known and does not appear to have been documented. The manner in which each of the samples was collected by MMI has apparently also not been documented. The size of both samples, namely 0.8 kg for Sample L and 0.9 kg for Sample U, is small and its representation is questioned. Also, there appears to be no documentation relating to the arrival and receipt of these samples at PRA. There is no receiving log in the PRA Report No. 0302303 (Huang 2003). Also, no assay certificates have been recovered to date. Even though these tests were considered to be scoping tests only, the results cannot be validated. When considering all the above factors, it is apparent that these results cannot be used with any degree of validity in the review of process options for the recovery of silver and gold.
  
 INTRODUCTION TO THE MMI 2004 METALLURGICAL TEST PROGRAM
  
 The 2004 test program was a better structured program, which included the pre‐concentration processes such as gravity concentration and flotation, both with and without regrinding, in an attempt to upgrade the material into a smaller mass for the subsequent treatment for the recovery of silver and gold. Also, cyanidation leach tests were conducted on as-received samples, as well as samples that were reground to attempt to improve the liberation of silver and gold from the associated minerals. A single column leach test was also performed.
  
 Additional work completed included establishing the specific gravity and bulk density of the material, determining the Bond Mill Work Index on an oxide sample from the open pit, settling and filtration tests following cyanidation tests, and electrowinning tests using Electrometals Electrowinning (EMEW) technology. All the different test procedures are summarized in Table 13.4.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Table 13.4 Test Procedures – MMI 2004 Test Program
  
 	 Process/Procedure
	 Details of Test
	 Sample Identify

	 Sample Preparation
	 Individually numbered; dried; weighed; subsequently composited
	 Composites A, B, and C

	 Head Assays
	 Fire assays, AA and ICP multi-acid
	 Individual Samples, and
Composites A, B, and C

	 Specific Gravity
	 Standard pycnometer test
	 Composites A, B, and C

	 Bulk Density
	 Standard volume displacement test
	 Composites A, B, and C

	 Mineralogical Examination
	 Examination of as-received samples
	 Selected Samples

	 Test Product Assays
	 Fire assays, AA and ICP multi-acid
	 All test Products

	 Bond Mill Work Index
	 Six cycles; closing screen size 150 μm
	 Oxide Sample

	 Size-assay Distribution
	 Screened and assayed the size fractions
	 Selected Samples

	 Gravity Concentration
	 Various test conditions
	 Composites A, B, and C

	 Cyanidation Leach
	 Various test conditions
	 Composites A, B, and C

	 Flotation
	 Various test conditions
	 Composites A, B, and C

	 Column Leach Test
	 Agglomerated feed; 81 d duration; 0.5 to 1.0 g/L NaCN; pH 10.5; 0.05 mL/s
	 Composite of A and B

	 EMEW
	 Various test conditions
	 PLS from Leach Test

	 ABA
	 Acid generation tests
	 Composites A, B, and C

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The results obtained from this test program led MMI to include the heap leach process as the recommended treatment option in their report dated May 2005 (Slim 2005a).
  
 EVALUATION AND REVIEW OF METALLURGICAL TESTS
  
 Tetra Tech reviewed the metallurgical tests conducted during the MMI 2004 test program. The most promising process option should be selected as the recommended process treatment route based on the evaluation of the results obtained from the test program. This process option should then be evaluated with respect to capital and operating cost estimates. The process implications of the procedures and processes investigated, and the results obtained, are discussed in this section.
  
 Sample Preparation and Characteristics
  
 Bagged samples carrying the MMI identification tags were prepared at Avino mine site under the direct supervision of MMI personnel. These samples were then transported from the mine site to Durango, Mexico, and shipped via airfreight to Vancouver, British Columbia. The samples were delivered to the PRA facility and unpacked in the presence of MMI personnel to ensure that no tampering had occurred to the samples en route. The samples were subsequently renumbered by MMI prior to PRA staff un-bagging and drying the samples. These details are shown on the PRA sample receiving log (Huang and Tan 2005). The individual samples were initially air-dried, followed by a low-temperature of less than 50°C of oven drying.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 The individual samples were subsequently homogenized and riffled and split into four one-quarter fractions. One of these fractions was used for head assay determinations. A second fraction was used for compositing selected individual samples to create the sample Composite A, representing the oxide material of the lower bench of the tailings dam. Similarly, Composite B, representing the oxide material of the middle bench of the tailings dam, was prepared by compositing selected individual samples, as was Composite C, representing the sulphide tailings of the upper bench.
  
 Although the samples had arrived at PRA from the Avino mine site without any indication of tampering, it is the sampling regime itself, which is considered to be deficient. First, the sampling of the oxide section of the tailings dam was incomplete. The sampling did not replicate the 1990 CMMA program, and certain parts of the tailings dam were not sampled. Second, the samples that were taken by MMI only represented the first 4 m of depth of the tailings dam. Indications are, however, that the overall depth of the oxide section of the tailings dam varies between 7 m and 27 m. These two major deficiencies were also recognized by the Canadian Securities Administrators as deficiencies during their review. Both these items were addressed in the final MMI report dated October 2005 (Slim 2005d). The October 2005 report recommended a more detailed program of sampling of the whole tailings dam up to bedrock or ground soil level, as well as conducting metallurgical characterization tests using representative material from this more detailed sampling process, whenever this is to be performed. However, since the MMI technical report (as reviewed by the Canadian Securities Administrators subsequently referred to the oxide tailings as an Inferred Resource (Slim 2005d), this and other sampling discrepancies noted in the MMI test program, will not be discussed any further.
  
 Moisture Content
  
 The moisture contents of the samples as received from the Avino mine site tailings dam were found to vary widely, namely from a low value of 5.12% to a high value of 28.25% moisture. A frequency distribution for moisture content of all the oxide tailings samples as received by PRA is given in Table 13.5. The bi-nodal distribution is apparent.
  
 Table 13.5 Moisture Content of Samples
  
 	 Frequency Distribution

	 Moisture Content Range
(%)
	 Number

	 5.00-7.50
	 9

	 7.51-10.00
	 14

	 10.01-12.50
	 19

	 12.51-15.00
	 16

	 15.01-17.50
	 5

	 17.51-20.00
	 5

	 20.01-22.50
	 12

	 22.51-25.00
	 5

	 25.01-27.50
	 0

	 27.51 -30.00
	 1

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-7
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 The particular presence of these high moisture content values in the tailings dam apparently confirms the high moisture content values found during the 1990 sampling program conducted by CMMA. Although the precise sampling procedure and drying conditions are unrecorded, a data sheet provided by Avino as ostensibly related to this sampling program, provides assay values and moisture contents obtained during the program. The moisture values obtained varied from a low moisture value of 13.89% to a high value of 29.4%, and a calculated average of 22.87% moisture.
  
 A possible reason for the high moisture content of the tailings material is that the mine was operational during this period when the sampling program was undertaken, i.e., 1990, and that routine tailings deposition was still in progress.
  
 The specific reason for the relatively high moisture contents found during the 2004 MMI sampling program is not apparent. The MMI technical report (Slim 2005d) has referred to the possibility of the original manner of deposition of the tailings, which has resulted in localized areas of high moisture content. Also, the presence of artesian springs under the tailings dam has also been mentioned as a possible reason. It was also observed that any rainwater run-off from the higher levels above the tailings dam would collect at the head of the tailings dam and subsequently seep through the dam, exiting at the foot of the dam. Whatever the reason(s) may be, areas of high moisture content do exist and will influence the method of recovery of the tailings and the subsequent agglomeration process.
   
 Head Assays and Test Products Assays
  
 Gold assaying was completed using the standard fire assay procedure. Initially, the silver was also analyzed by the fire assay procedure followed by an AA spectrophotometric finish. However, this fire assay-based method for silver is not very accurate in the low concentration range of less than 100 g/t for silver. Assaying for silver was then done using ICP-MS preceded by the total digestion of the sample in a suite of mineral acids. A further method was also investigated, namely that of total acid digestion followed by an AA finish. The results obtained with this acid digestion and AA method were similar to the ICP-MS. The assay method selected for all the silver assays was therefore the ICP-MS method preceded by the total digestion of the sample in a suite of mineral acids (ICP‐MS). All the other analyses for the various products arising from the metallurgical tests were done by the standard and universal methods using titration, ICP-MS or AA methods.
  
 All the various head sample analyses conducted during the test program are listed in Table 13.6. The reference to the test number relates to the stage of the test work that the sample was submitted for analysis. The average values for the four different composite samples tested, namely Composite A, Composite B, Composite C, and the Composite A + B blended sample, have all been calculated and are given in the table together with the respective standard deviation values. The standard deviation of the head samples representing Composite A and Composite B are shown to be within 10% of the deviation from the average value. This is considered to be reasonable.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-8
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 However, the average silver value of all the head assay analyses assayed as head samples representing both Composite A and Composite B together is only 86.8 g/t silver. This average silver grade is less than the 95.5 g/t silver as given in the MMI technical report as being the overall silver grade of the material of the whole oxide tailings dam (Slim 2005d). Similarly, the average gold value of all the head assay analyses assayed as head samples representing both Composite A and Composite B (i.e., representing the oxide tailings dam) taken during the test work program, is 0.44 g/t gold, which also is less than the 0.53 g/t gold, as quoted in the MMI technical report (Slim 2005d). For silver, this amounts to a difference of about 9% based on the MMI quoted head grade of 95.5 g/t silver, while for gold the difference is larger at 17% based on the MMI quoted gold value of 0.53 g/t gold. It is of interest that the average head assay for the Composite A + B sample is closer to the calculated average from Composite A and for Composite B, namely 89.6 g/t compared with 86.8 g/t for silver, and 0.41 g/t compared with 0.44 g/t for gold. The above discussion assumes that the tonnages of the tailings dam labelled Composite A (lower bench) will be mixed in equal proportion to the area of the tailings dam designated as Composite B (middle bench). In the absence of specific tailings dam volumes, or tonnages, this assumption may be an oversimplification and may therefore not be entirely valid. However, the assay values for Composite B is lower than the overall average head grade of the tailings samples collected.
  
 Table 13.6 Head Assays
  
 	 Test No.
	 Assays
(g/t)
	 Test No.
	 Assays
(g/t)

	 Ag
	 Au
	 Ag
	 Au

	 Composite A
	 Composite B

	 SA9
	 99.8
	 0.37
	 SA10
	 88.3
	 00.55

	 Ave. 1
	 103.4
	 0.34
	 Ave. 1
	 82.6
	 0.68

	 Ave. 2
	 105.3
	 0.36
	 Ave. 2
	 88.4
	 0.51

	 C1
	 95.2
	 0.35
	 C4
	 76.3
	 0.52

	 C2
	 94.3
	 0.35
	 C5
	 70.6
	 0.49

	 C3
	 94.1
	 0.36
	 C6
	 71.4
	 0.50

	 C7
	 88.7
	 0.36
	 C9
	 70.3
	 0.52

	 C8
	 88.7
	 0.36
	 C10
	 70.3
	 0.52

	 C13
	 95.9
	 0.28
	 C15
	 77.2
	 0.49

	 C14
	 98.9
	 0.37
	 C16
	 78.3
	 0.52

	 C17
	 95.2
	 0.35
	 C18
	 77.2
	 0.49

	 Average Value
	 96.32
	 0.350
	 Average Value
	 77.35
	 0.526

	 Standard Deviation
	 5.27
	 0.025
	 Standard Deviation
	 6.72
	 0.054

	 Composite C
	 Column Composite A+B

	 C11
	 39.8
	 0.34
	 C4
	 87.4
	 0.42

	 C12
	 39.8
	 0.34
	 C5
	 90.1
	 0.40

	 Ave. 1
	 31.7
	 0.29
	 C6
	 91.4
	 0.42

	 Ave. 2
	 39.8
	 0.39
	 C9
	 -
	 -

	 Average Value
	 37.78
	 0.340
	 Average Value
	 89.63
	 0.413

	 Standard Deviation
	 4.05
	 0.041
	 Standard Deviation
	 2.04
	 0.012

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-9
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 A further comment regarding the assay results above relates to the methods employed for the assaying techniques for silver from these samples. The MMI technical report (Slim 2005d) states that for the CMMA 1990 tailings drilling program, the silver assaying was completed using the mine standard practice of fire assay followed by acid digestion and AA finish. The PRA metallurgical test work program used multi-acid digestion followed by ICP assay method for silver analyses. It is anticipated that there will not be a significant difference between the silver assays as reported in 1990 and those from the MMI test program as conducted by PRA, but the extent of this difference cannot be quantified in this review. Similarly, no comment can be given as to the accuracy of the assays conducted by CMMA, since the standards of precision of sampling, sample preparation, and detailed methodology of the assaying methods are unknown. However, a summary sheet containing assay values has been provided by Avino as being the silver and gold grades obtained from the 1990 CMMA sampling program. No calculations have been performed using these assay values and it is only included in this report since it is part of the CMMA sampling program. The MMI report (Slim 2005d) provides a grid map identifying the various sample holes.
  
 Mineralogical Evaluation
  
 At the start of the 2004 metallurgical test program, MMI requested that a sample from some of the individual samples be submitted for mineralogical analysis. The mineralogical findings have not been reported in the PRA Report No. 0406407 (Huang and Tan 2005), and also were not alluded to in the MMI technical report (Slim 2005d), nor in any of the preceding reports. The reason(s) why these results have apparently not been communicated to Avino or to the investigators of the test program at PRA is not known.
  
 Bond Ball Mill Work Index
  
 Although this information was not required for the treatment of the oxide tailings dam material, a Bond Ball Mill Work Index determination test was done on an oxide material sample. The work index was determined to be 12.3 kWh/t using a closing screen size of 74 μm (200 mesh) with convergence of the specific energy input (grams of product per revolution) found after five cycles of testing. This makes the sample tested a moderately hard rock type. The details regarding the origin of this sample have not been documented and its relevance as data is therefore questioned.
  
 Bulk Density and Specific Gravity
  
 Bulk density and specific gravity determinations were conducted on samples specifically identified by MMI. The specific gravity measurements were done using the standard pycnometric method, while the bulk density values were obtained by measuring the volume of dry solids in a measuring cylinder. The values obtained are reproduced in Table 13.7.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-10
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 13.7 Bulk Density and Specific Gravity
  
 	 Location/
Bench
	 Sample
Identify
	 P80 Size
(μm)
	 Bulk Density
(g/cm3)
	 Specific
Gravity

	 Upper Bench
	 S2
	 226
	 1.66
	 2.74

	 Lower Bench
	 S10
	 326
	 1.73
	 2.62

	 Lower Bench
	 S22
	 367
	 1.73
	 2.76

	 Middle Bench
	 S45
	 254
	 1.60
	 2.76

	 Middle Bench
	 S50
	 201
	 1.63
	 2.74

	 Upper Bench
	 S74
	 301
	 1.57
	 2.72

	 Average
	 -
	 -
	 1.65
	 2.72

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The bulk density values determined for the oxide tailings material were found to vary between 1.57 g/cm3 and 1.73 g/cm3 with an average of 1.65 g/cm3. This average value is in reasonable accord with the bulk density of 1.605 g/cm3 as quoted in the MMI technical report. The specific values obtained were generally consistent with an average value of 2.72.
  
 Particle Size – Assay Analysis
  
 A particle size–fraction analysis was done on the same samples as were used for the bulk density and specific gravity determinations. These tests were conducted to determine whether the silver and gold were predominantly occurring in a particular particle size range. The size-assay analyses indicated that the metal distributions were varied according to the location, but that all displayed the bi-nodal distribution for silver, gold, and mass to varying degrees.
  
 Sample S10 from Composite A from the Lower Bench of the tailings dam indicated one maximum metal distribution occurring in the size range of 149 μm to 210μm, and another in the minus 37 μm size range. The maximum mass distributions are generally similar, although it occurs over a wider size range in the coarse size, namely 105 μm to 210 μm. The second sample from this bench, Sample S22, was similar but with a shifted maximum metal and mass distribution in the 210 μm to 297 μm size range, and a secondary maximum metal and mass distribution in the minus 37 μm size range.
  
 Sample S45 from the Middle Bench of the tailings dam, and part of Composite B, indicated maximum metal distribution in the 149 μm to 210 μm size range with maximum mass distribution in the 105 μm to 149 μm size range. The secondary maximum metal and mass distribution was found in the minus 37 μm size range. The second sample from the Middle Bench, namely Sample S50, had the maximum metal and mass distributions in the 105 μm to 149 μm size range as well as the minus 37 μm size range.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-11
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 The two samples from the Upper Bench of the tailings dam of Composite C displayed totally different particle size distributions. Sample S2 was bi-nodal with one maximum for metal and mass distribution in the size range of 105 μm to 149 μm and the second maximum occurring for the size range of minus 37 μm. Sample S74 displayed only one maximum metal and mass distribution over the relatively wide coarse particle size range of 105 μm to 297 μm. This sample was almost entirely devoid of slimes or minus 37 μm material.
  
 These samples reflect the operating discharge conditions and history at the time of plant operations and tailings deposition. The results typify the use of a tailings cyclone situated on the tailings dam wall discharging the coarse undersize material onto the wall area with the finer cyclone overflow material flowing downstream and settling within the tailings dam. Changes in the size distribution would be anticipated with downstream distance from the point of discharge by the cyclones at the tailings dam wall. This is typified by the size distribution of Sample S74, which purports to be a cyclone underflow sample taken at the point of discharge and which was found to be almost totally devoid of fines or minus 37 μm material.
  
 Gravity Concentration Tests
  
 Pre-concentration tests using the centrifugal gravity concentration method were conducted to evaluate the potential upgrading of silver and gold. The laboratory size concentrator used was the Falcon Model SB40 centrifugal concentrator. The tests were conducted on samples from Composites A, B, and C. MMI dictated the test parameters used for these tests, including a set of tests where the samples were reground prior to conducting the gravity concentration test. The results from the gravity concentration tests are summarized in Table 13.8.
  
 Table 13.8 Summary of Results of Gravity Concentration Tests
   
 	 Sample Identify
	 Head Grade
	 Concentrate Grade
	 Recovery
(%)
	 P80 (μm)
	 Remarks
(Note: All tests
are 3-pass tests)

	 Ag
(g/t)
	 Au
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Mass
	 Ag
	 Au

	 Composite A
	 93.8
	 0.35
	 124.7
	 0.52
	 24.1
	 32.1
	 36.5
	 269
	 Pressure 1.5 psig; no regrind

	 Composite B
	 70.3
	 0.50
	 96.9
	 0.71
	 23.6
	 32.5
	 33.3
	 180
	 -

	 Composite C
	 39.7
	 0.33
	 58.0
	 0.65
	 24.1
	 35.2
	 47.0
	 254
	 -

	 Composite A
	 92.1
	 0.33
	 126.1
	 0.71
	 19.7
	 27.2
	 42.1
	 76
	 Pressure 1.0 psig; reground

	 Composite B
	 70.5
	 0.56
	 96.5
	 1.29
	 22.4
	 30.7
	 51.5
	 77
	 -

	 Composite C
	 40.7
	 0.38
	 65.5
	 0.98
	 24.8
	 39.9
	 64.3
	 79
	 -

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	  
	 Note:
	 psig = pounds per square inch (gauge)

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	13-12
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 The mass recoveries varied between 20% and 25% indicating that the tests were performed in a uniform and consistent manner. The highest silver recovery obtained was 40% (after regrind) for Composite C and decreasing to 31% for Composite B (after regrind) and about 27% for Composite A, also after regrind. The gold recoveries were higher than the equivalent silver recoveries, particularly after regrind, indicating that the liberation of the precious metals could be incomplete.
  
 However, the upgrading factor for both silver and gold is very low, namely about 1.4 for silver and up to 2.3 for gold. No further upgrading or silver and gold recovery tests were conducted on the gravity concentrates, possibly as a result of the relatively low grades and recoveries obtained. Also of interest is the fact that no historical test work was documented by MMI where gravity concentration was used to produce a saleable high‐grade concentrate.
  
 Flotation
  
 Different scoping flotation tests were conducted on samples from Composite A and Composite B using various reagent schemes and conditions as dictated by MMI. The results of the flotation tests are summarized in Table 13.9. The test results reported led to the following conclusions.
  
 For Composite A, a regrind from a P80 size of 238 μm (as received particle size) to a P80 of 72 μm, improved the flotation recovery of silver from 18% to 23% and that of gold from 18% to 39%. The standard suite of reagents was used for these tests (Tests F1, F3, and F4). For Composite B, a regrind from a P80 size of 173 μm (as received particle size) to a P80 of 74 μm, improved the flotation recovery of silver from 22% to 33% and that of gold from 12% to 32% (Tests F2, F5, and F6). A particle size fraction analysis distribution conducted on the tailings of Test F4 (Composite A) indicated that the major proportion of the mass and the silver and gold is present in the slimes or minus 37 μm size fraction. However, significant losses of silver, and particularly gold, occurred in the coarser sizes, namely the size range 53 μm to 105 μm. This indicates that the degree of liberation could be improved and that some metal appears to be occluded in the coarser particle sizes. Some silver may also occur within secondary oxide minerals and be unrecoverable by flotation. A similar mass and metal distribution was obtained in the case of Test F9 (also Composite A), which was a flotation test performed using a sulphidization reagent.
  
 In testing the various flotation reagent suites, variable mass and metal recoveries and concentrate grades were obtained. However, the maximum silver grade obtained for a rougher concentrate was 909 g/t silver, while the overall recoveries for silver could not be improved beyond approximately 40%. This indicated that mineral surface alteration or oxidation, or occlusion of precious metals in gangue, was inhibiting the concentration by the flotation process. Since the silver recoveries obtained were deemed low and unsatisfactory, no further flotation tests were conducted and no extraction tests were performed on flotation concentrates.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-13
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 The head assays obtained during the flotation testing stage gave inconsistent results. Table 13.9 shows the actual head assays obtained for each flotation test compared with the head assay obtained for silver for the composite samples. For Composite A, the individual silver head values for each flotation test conducted are all higher than the assay for the composite sample, except in the case of Test F11. The gold (and silver) values obtained for Tests F7, F8, and F9 are known to have been the result of poor sampling technique adopted for these three tests. The composite head assay gold value of 0.36 g/t gold is probably a reasonably representative assay value for Composite A. For Composite B, the silver head value for the composite sample is slightly lower than the assays for the individual flotation tests. For gold, the composite sample value is higher at 0.52 g/t gold than the assays for the individual tests.
  
 The historical results of the flotation tests reported in Table 13.2 are significantly higher at 60% to 69% recovery for silver and 47% to 67% for gold. However, in the absence of information regarding the origins of these samples, the lack of head grade data and the absence of sampling and flotation procedures involved, these results will not be taken into consideration in selecting the processing options for the oxide tailings dam material.
  
 Table 13.9 Summary of Results of Flotation Tests
  
 	 Sample Identify &
Test No.
	 Head
Grade
	 Concentrate Grade
	 Recovery
(%)
	 P80 (μm)
	 Remarks

	 Ag
(g/t)
	 Au
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Mass
	 Ag
	 Au

	 Composite A/F1
	 112.2
	 0.35
	 908.7
	 3.17
	 2.1
	 17.8
	 18.4
	 238
	 3-stage ro., pH 8;

	 Composite A/F3
	 119.2
	 0.39
	 734.6
	 3.88
	 2.6
	 21.0
	 30.4
	 103
	 Conditioning NaCN +

	 Composite A/F4
	 104.6
	 0.40
	 630.9
	 3.36
	 3.8
	 22.6
	 38.6
	 72
	 Na2CO3; A404, PAX

	 Composite A/F7
	 111.9
	 1.39
	 654.6
	 5.56
	 2.3
	 16.3
	 34.9
	 ~75
	 2-stage ro., nil NaCN

	 Composite A/F8
	 108.5
	 2.38
	 887.2
	 11.91
	 0.9
	 7.8
	 30.7
	 ~75
	 2-stage ro., nil NaCN

	 Composite A/F9
	 114.5
	 1.67
	 723.9
	 5.86
	 2.7
	 20.8
	 45
	 ~75
	 2-stage ro., NaS2, PAX

	 Composite A/F10
	 103.5
	 0.58
	 401.3
	 1.62
	 8.9
	 34.6
	 39.8
	 ~75
	 With NaCO3, CuSO4

	 Composite A/F11
	 99.6
	 0.34
	 484.8
	 1.83
	 8.8
	 42.2
	 48.3
	 ~75
	 With CuSO4, A208

	 Composite B/F2
	 88.4
	 0.42
	 695.4
	 2.65
	 2.6
	 22.0
	 12.2
	 173
	 3-stage ro., pH 8

	 Composite B/F5
	 89.7
	 0.47
	 806.1
	 4.18
	 2.9
	 27.0
	 24.6
	 92
	 Conditioning NaCN +

	 Composite B/F6
	 89.9
	 0.51
	 867.1
	 5.45
	 2.9
	 32.5
	 32.1
	 74
	 Na2CO3; A404, PAX

	 Composite A: Head
	 99.8
	 0.36
	 -
	 -
	 -
	 -
	 -
	 -
	 -

	 Composite B: Head
	 88.3
	 0.52
	 -
	 -
	 -
	 -
	 -
	 -
	 -

 
 
 
 
 
 
 
 
 
 
 
 
 
 	  
	 Note: 
	 CuSO4 = copper sulphate; NaCO3 = sodium carbonate

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	13-14
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Cyanidation Tests
  
 Cyanide leaching tests were conducted on samples from Composite A, Composite B, and Composite C using different leaching conditions. The first set of tests were to determine the effect of regrinding the tailings samples prior to leaching while subsequent tests determined the effect of cyanide concentration in the leach solution.
  
 For Composite A, the silver extractions varied from 66% for the un-milled (as received) sample to 80% for the samples that were reground, while the gold extractions varied from 82% to 89%, respectively. For Composite B, the silver extractions ranged between 69% for as-received material, to 77% for samples that were reground. The corresponding gold extractions varied between 82% and 87%. Although the cyanide consumption increased with the regrinding of samples tested for both Composite A and Composite B, the increase in extraction may compensate for the additional cost of cyanide reagent and regrinding provided that the filtration characteristics are not detrimentally affected. Higher cyanide concentrations in the leach solution tended to improve the extractions of silver and gold but increased the cyanide consumption significantly as well.
  
 The results from the sulphide tailings, namely Composite C, indicate that between 73% and 87% of the silver can be extracted, with between 77% and 85% of the gold. However, the cyanide consumption values were higher than the results from the oxide tailings. Only two leach tests were conducted on reground samples from Composite C, each having a P80 of about 69 μm. A summary of the cyanide leach test results is given in Table 13.10.
  
 Table 13.10 Summary of Results of PRA Cyanidation Tests
  
 	 Sample Identify &
Test No.
	 Extraction
(%)
	 Reagent Usage
(kg/t)
	 NaCN
Concentration
(g/L)
	 P80 (μm)

	 Ag
	 Au
	 NaCN
	 Lime

	 Composite A+/C1
	 66.4
	 81.5
	 1.8
	 1.4
	 1.0
	 269

	 Composite A+/C2
	 79.3
	 85.7
	 1.6
	 1.8
	 1.0
	 103

	 Composite A+/C3
	 80.4
	 89.1
	 2.6
	 1.6
	 1.0
	 78

	 Composite A+/C7
	 78.6
	 82.7
	 2.2
	 1.8
	 0.5
	 74

	 Composite A+/C8
	 89.7
	 85.5
	 5.1
	 0.8
	 2.0
	 74

	 Composite A*/C13
	 79.7
	 86.8
	 1.5
	 1.3
	 0.5
	 74

	 Composite A*/C14
	 83.1
	 82.1
	 3.7
	 0.8
	 2.0
	 74

	 Composite A*/C17
	 79.4
	 90.9
	 1.0
	 1.2
	 1.0
	 74

	 Composite B+/C4
	 69.1
	 82.0
	 2.6
	 1.8
	 1.0
	 180

	 Composite B+/C5
	 77.1
	 88.3
	 1.7
	 1.8
	 1.0
	 100

	 Composite B+/C6
	 77.3
	 86.9
	 1.7
	 1.9
	 1.0
	 84

	 Composite B+/C9
	 73.2
	 86.0
	 2.6
	 1.2
	 0.5
	 84

	 Composite B+/C10
	 79.5
	 86.4
	 4.5
	 1.0
	 2.0
	 84

	 Composite B*/C15
	 72.9
	 82.6
	 1.6
	 2.0
	 0.5
	 84

	 Composite B*/C16
	 75.4
	 83.4
	 3.8
	 1.0
	 2.0
	 84

	 Composite B*/C18
	 67.7
	 78.6
	 0.9
	 1.3
	 1.0
	 84

	 Composite C+/C11
	 73.8
	 77.3
	 4.0
	 2.8
	 1.0
	 69

	 Composite C+/C12
	 86.6
	 85.0
	 7.3
	 2.6
	 2.0
	 67

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	  
	 Notes: 
	 “+” indicates Original Composite Sample. 

	  
	  
	 “*” indicates New Composite Sample. 
 Tests C17 & C18 = 24 h leach duration; other tests + 72 h leach duration.

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-15
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 During the cyanide leach test program, a new Composite A and Composite B sample had to be prepared since the original composite samples had been exhausted. Comparison of results from the two composite samples indicated similar behaviour patterns, although there are some noticeable differences in the extractions. Also, the cyanide and lime consumption values as recorded are inconsistent. This indicates that absolute numbers cannot be assigned to a single test, although any observed trends would be valid. The averages of similar tests would more likely predict the overall responses more accurately. It is also apparent that non-systematic variations in the assay results could have arisen from subtle variations in mineralogy, sample preparation, the sample regrinding process, and possibly daily variations in temperature.
  
 The cyanide leach extraction results quoted by MMI in Table 13.1, and the averaged results from the present test program, are summarized below in Table 13.11, and will be discussed in the following section.
  
 Table 13.11 Summary of Cyanidation Test Results Used by the MMI Reports
  
 	 Sample Identify &
Test No.
	 Extraction
(%)
	 Remarks

	 Ag
	 Au

	 Composite A/C1
	 66
	 82
	 As-received; 1.0 g/L NaCN

	 Composite A/C7 & C13
	 80
	 85
	 Average; reground; 0.5 g/L NaCN

	 Composite B/C4
	 69
	 82
	 As-received; 1.0 g/L NaCN

	 Composite B/C9 & C15
	 73
	 84
	 Average; reground; 0.5 g/L NaCN

	 MMI 2003
	 77
	 71
	 Results from 2003 test program

	 MMI 2003
	 88
	 88
	 Origin of results unrecorded

	 MMI 2004/C8 & C10
	 85
	 86
	 Average; reground; 2.0 g/L NaCN

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The average extraction results obtained from samples from Composite A and Composite B in the present study are generally lower than the results from the historical test work as detailed in Table 13.11. However, in the absence of details, these historical results cannot be used in the overall evaluation of this process. The MMI claim of a 77% silver extraction, based on the MMI (2003) test program, cannot be considered an acceptable result since only one test was done. The sample origin is purported to be four holes dug at approximately 25 m intervals with samples scraped into a bag, one for the lower bench and one for the upper bench of the oxide tailings dam. Clearly, a sample collected in this manner cannot be considered to be representative. Also, the other MMI (2003) claim for an extraction result of 89% silver and 88% gold cannot be validated. All these test results can therefore not be considered as valid and will not be used in any further discussions or evaluations.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-16
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 The MMI (2004) results, as claimed in the technical report and listed in Table 13.11 above, are also considered unusable. The reasons for this statement are that these results were obtained with a reground sample and leached at a high cyanide concentration of 2.0 g/L sodium cyanide, whereas the other tests were done using 1.0 g/L sodium cyanide. Both these conditions, that is, the regrinding of the tailings material and a high cyanide concentration leach condition, will not be implemented in a recovery process and these results are considered to be unrealistic.
  
 The extraction results from the cyanidation tests obtained using as-received samples from Composite A and Composite B, namely 66% to 69% for silver and 82% for gold, were encouraging.
  
 Column Leach Test
  
 One column leach test was conducted on a 30.9 kg sample of an equal mix of material from Composite A and Composite B. The sample was mixed with water, Portland Cement, and lime and then agglomerated to a P80 size of 2,614 μm. After curing, the sample was put into a column with a diameter of 102 mm and a height of 3 m. The column test was run for a total of 81 days after the solution flowrate and pH had been stabilized. The silver extraction obtained was 73.0% while the gold extraction was 78.9%. These results compare very well to the average extraction values calculated from the cyanidation tests of the individual composite samples leached in the as-received condition, namely 67.8% for silver and 81.8% for gold. The cyanide consumption values are also comparable. The results obtained from the column test, as well as the calculated average extraction values obtained from the tests conducted on the as-received samples of Composite A and Composite B, have been summarized in Table 13.12.
  
 Table 13.12 Summary of Results of Column Leach Tests
  
 	 Sample &
Test No.
	 Extraction
(%)
	 Reagent Consumption
(kg/t)
	 NaCN
Concentration
(g/L)
	 P80 (μm)
	 Remarks

	 Ag
	 Au
	 NaCN
	 Lime
	 Cement

	 Column Test,
Composites A and B
	 73.0
	 78.9
	 2.32
	 13.73
	 21.8
	 0.5 & 2.0
	 2,614
	 pH 11; flowrate
0.05 mL/s

	 Composites A and B
Average,
Tests C1&C4
	 67.8
	 81.8
	 2.18
	 1.59
	 -
	 1.0
	 225
	 pH 10.5/11; bottle roll

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The kinetics of leaching had slowed down significantly by Day 81 when the test was terminated, although there was evidence that some leaching was still in progress.
  
 A particle size assay analysis of the leach residue of the column test found that the highest unleached (undissolved) silver grade was in the coarsest size range of plus 210 μm, while the highest gold value was found in the minus 37 μm size range. This suggests both inadequate liberation of the silver grains and/or minerals, and occlusion of gold possibly by clay minerals, or the presence of tarnished/coated mineral surfaces, or the presence of refractory minerals. The subsequent leaching of de-agglomerated column leach test residue resulted in a negligible extraction of silver and gold. This indicates that the column leach test had virtually reached its maximum potential extraction, which confirms the observation that the leaching rate had slowed down.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	13-17
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Only one column leach test was conducted. Also, the material tested was a mixture of samples from Composite A and Composite B, that is, a mixture of material from the lower and the middle benches of the oxide tailings dam. During the test, flow problems were encountered, which resulted in the column having to be unloaded and the material having to be re-agglomerated with the test subsequently re-started after filling the column. In general terms, the results from one test only cannot be regarded as representative of the whole oxide tailings dam. However, despite these limitations and problems encountered, the encouraging results obtained and the close comparison with the bottle-roll tests, implies that the results are relatively reliable. The extraction values obtained from the column test, namely 73.0% for silver and 78.9% for gold, will therefore be used in the evaluation of this treatment process. The reagent consumption values also appear to be very high, namely 13.73 kg/t for lime, 21.8 kg/t for cement, and 2.32 kg/t for cyanide. However, lime and cement consumption values obtained in laboratory tests generally approximate commercial operations, although in this case they seem to be unrealistically high. The cyanide consumption of a commercial operation would typically only be 30% to 50% of that measured in a laboratory test.
  
 Acid-base Accounting
  
 The ABA results predict the overall acid generating potential of selected samples. A net acid general potential was found for the sulphide tailings but not the oxide tailings. The processing of the sulphide tailings for silver and gold recovery could modify the ABA and increase the stability of the ultimate residues. Alternatively, the sulphide tailings would require the addition of lime during the process of relocating this material. This would ensure that the sulphide tailings would not cause acid-generating environmental problems.
  
 Electrowinning
  
 Electrowinning metal recovery tests were conducted using EMEW technology (from the Electrometals Electrowinning company), specifically designed for the electrodeposition of metals from dilute solution tenors. The tests were carried out using filtered cyanide leach pregnant solutions. Although the test results were favourable, it appears unlikely at this stage that this technology could be applied in this situation given the high solution volumes generated and the very low silver concentrations anticipated in the pregnant solution from the heap. However, further test work using the EMEW metal recovery system should be undertaken if the Project advances to the FS level because the potential for savings in capital cost and operating cost needs to be investigated.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-18
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 TEST RESULT REVIEW 
  
 Gravity Concentration
  
 Review of Results
  
 As indicated in Table 13.8, the upgrading for silver from the as-received oxide tailings was poor with a maximum concentrate grade of 125 g/t silver at a mass recovery of 20%. The upgrading of gold is similarly poor. The re-grinding of the samples prior to gravity concentration leads to an almost negligible improvement in the upgrading of silver to 126 g/t silver, while for gold a maximum concentrate grade of 1.29 g/t gold was obtained. The sulphide tailings response to gravity concentration is equally poor with even lower grade gravity concentrates being obtained despite slightly improved recoveries being observed for both silver and gold.
  
 Conclusion
  
 The poor results obtained, in that no high-grade metal concentrate could be produced, coupled with the fact that no extraction tests for silver and gold were conducted on the gravity concentrates produced, has resulted in the gravity concentration treatment option not being selected for further consideration.
  
 Flotation
  
 Review of Results
  
 The flotation results have been summarized in Table 13.9. The results indicate that the overall recoveries for both silver and gold are low, namely between 8% and 42% for silver and 12% to 48% for gold. The re-grinding of both the tailings samples (Composite A and Composite B) are seen to improve the recoveries, while the testing of various reagent regimes also resulted in improvements to the overall recoveries of both silver and gold in some cases. However, the overall recoveries are generally considered to be low at less than 40% for silver and less than 48% for gold, and this is coupled with a very low-grade concentrate being produced. This poor flotation response is probably the result of surface alterations and/or inadequate liberation of the silver- and gold-bearing minerals. No extraction tests were conducted on any of the flotation concentrates produced and so the total extent of extraction is not known. No tests were conducted on the sulphide tailings material (Composite C), and its response to flotation as a pre-concentration process is therefore not known.
  
 Conclusion
  
 Flotation will not be considered as a treatment option for the recovery of silver and gold from the oxide tailings dam material. For the reasons specified above, namely a generally low recovery of silver and gold, the option of using flotation to recover silver and gold will not be considered as a processing method in the treatment of the oxide tailings dam material.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-19
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Cyanide Leaching
  
 Review of Results
  
 Cyanidation leach tests were done on samples from Composite A and Composite B under different conditions of particle size and solution cyanide concentration. The results have been summarized in Table 13.10. The results generally indicated that cyanidation was still occurring after 72 h of the leaching time used for the laboratory tests, but at a much reduced rate. The base metals copper and zinc also dissolved during the cyanide leach and will contribute to the overall consumption of cyanide. Increasing the cyanide concentration in the leach solution generally improved the extraction of silver and gold, but also increased the overall cyanide consumption. The extraction of silver and gold from Composite A increased with fineness of grind, while Composite B did not improve the extraction for finer grinds than P80 of 100 μm. The cyanide consumption figures are inconsistent in some cases, although trends are apparent. Although limited test work was done on material from Composite C, namely the sulphide tailings, a set of results have been included in Table 13.13 below for purposes of comparison.
  
 Table 13.13 Cyanide Leaching Parameters
  
 	 Sample Identify
	 Head Grade
	 Extraction
(%)
	 Reagent Consumption
(kg/t)
	 NaCN
Concentration
(g/L)
	 P80
(μm)
	 Remarks

	 Ag
(g/t)
	 Au
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 NaCN
	 Lime

	 Composite A
	 94.7
	 0.35
	 66.4
	 81.5
	 1.8
	 1.4
	 1.0
	 269
	 As-received sample

	 Composite B
	 95.9
	 0.28
	 69.1
	 82.0
	 2.6
	 1.8
	 1.0
	 180

	 Average of A & B
	 95.3
	 0.32
	 67.8
	 81.8
	 2.2
	 1.6
	 1.0
	 225

	 Composite A
	 94.7
	 0.35
	 79.3
	 85.7
	 1.6
	 1.8
	 1.0
	 103
	 Reground sample

	 Composite B
	 70.3
	 0.52
	 77.1
	 88.3
	 1.7
	 1.8
	 1.0
	 100

	 Average of A & B
	 82.5
	 0.44
	 78.2
	 87.0
	 1.7
	 1.8
	 1.0
	 102

	 Composite C
	 39.8
	 0.34
	 73.8
	 77.3
	 4.0
	 2.8
	 1.0
	 69

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Conclusions
  
 As-received (unmilled) and reground tailings dam material will be expected to show the following extraction results under normal leaching conditions of approximately 68% for silver and 82% for gold. The reground material will give higher extractions at approximately 78% for silver and 87% for gold (see results in Table 13.12). Although the regrinding of tailings material is considered to be an expensive treatment method, cyanidation with and without regrinding as a treatment option is discussed in Section 17.3.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-20
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
       
 Column Leach Test
  
 Review of Results
  
 One column leach test was conducted using a blend of equal proportions of as-received (unmilled) Composite A and Composite B oxide tailings material. Despite interruptions in the leaching cycle as a result of the de-agglomeration of material in the column and the resultant percolation of fines, the overall extraction of silver was 73% and 79% for gold (see Table 13.12 for the results). Although the test was terminated after a total leaching time of 81 days, indications were that the leaching process was nearing completion but had not finalized at that stage. The above extraction results compare very well with the average extraction results obtained from the bottle roll leach tests, namely 68% extraction for silver and 82% for gold. The cyanide consumption of 2.3 kg/t for the column test was also comparable with that obtained for the bottle roll leach tests, namely 2.2 kg/t. The lime consumption for the column test was significantly higher, probably as a result of the two repeated agglomeration exercises.
  
 Conclusions
  
 Although only one column leach test was performed, the extraction results are in keeping with those obtained from the bottle roll tests. The results as given in Table 13.12 will be used for developing the process design criteria.
  
 Precious Metal Recovery
  
 Review of Results
  
 Only one technology was tested for recovering precious metals from cyanide leach solutions. The pregnant solution arising from leach tests performed on oxide tailings material was used to conduct electrowinning tests. Three tests were conducted using the EMEW technology. These tests indicated that silver could be electrowon from solutions with a starting concentration of about 58 mg/L silver to a depleted electrolyte with about 3 mg/L silver. The deposition was also shown to be very selective with respect to the co‐deposition of base metals. However, the pregnant solution from a leaching heap is expected to be significantly less than 58 mg/l silver, possibly as low as 16 mg/L silver. It is unclear whether the EMEW technology could operate efficiently under such low silver tenors.
  
 The alternative process options for the recovery of precious metals would likely be either activated carbon or the zinc precipitation method. No tests were conducted on these two process options. The use of an activated carbon circuit to recover silver is not recommended because of the added operational complexity. Also, the relatively high grade of the silver in solution will result in the treating of relatively large amounts of carbon, which will add to the cost of the Project.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-21
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Conclusions
  
 No other historical test work results were reported by MMI, nor are any alternative technology results known to have taken place that tested the recovery of silver from the Avino mine site tailings material. The Merrill-Crowe process will therefore be the preferred technology to recover silver and gold from pregnant leach solution.
  
 13.3 SULPHIDE TAILINGS
  
 Limited test work has been completed on material from the sulphide tailings before 2012. The two sets of results on the reground sulphide samples indicate that 73% and 87% of the silver and 77% and 85% of the gold can be extracted using 1 g/L and 2 g/L cyanide solutions, respectively. However, the cyanide consumptions were higher than the results from the oxide tailings. No further testing has been conducted on the sulphide tailings samples after 2012.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	13-22
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 	14.0 MINERAL RESOURCE ESTIMATES

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 14.1 RESOURCE SUMMARY
  
 The following tables provide a synopsis of the reported Mineral Resources reported in this section. Table 14.1 summarizes the base case values for all current Mineral Resources on the Property.
  
 The reporting cut-off for the Avino Vein is 60 g/t AgEQ and the cut-off for the San Gonzalo Vein is 130 g/t AgEQ. These cut-offs were determined by Avino based on actual mining scenarios and a silver price of US$18.50/oz. 
  
 The reporting cut-off for the oxide tailings is 50 g/t AgEQ.
  
 Mineral Resources have been depleted to account for mined volumes and topographic changes since 2017 as of October 30, 2020. 
  
 No Mineral Resource for the sulphide tailings is disclosed in this Technical Report.
  
 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 Table 14.1 Avino Property – Mineral Resources
  
 	 Resource Category
	 Deposit
	 Cut-off
(AgEQ
g/t)
	 Metric Tonnes
	 Grade
	 Metal Contents

	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)
	 AgEQ
(million tr oz)
	 Ag
(million tr oz)
	 Au
(thousand tr oz)
	 Cu
(tonnes)

	 Measured and Indicated Mineral Resources

	 Measured
	 Avino – ET
	 60
	 4,760,000
	 120
	 74
	 0.63
	 0.55
	 18.4
	 11.3
	 97
	 26,300

	 Measured
	 San Gonzalo System
	 130
	 267,000
	 356
	 263
	 1.36
	 0.00
	 3.1
	 2.3
	 12
	 0

	 Total Measured
	 All Deposits
	  
	 5,027,000
	 133
	 84
	 0.67
	 0.52
	 21.5
	 13.6
	 109
	 26,300

	 Indicated
	 Avino – ET
	 60
	 13,890,000
	 107
	 59
	 0.68
	 0.41
	 47.9
	 26.5
	 304
	 56,700

	 Indicated
	 San Gonzalo System
	 130
	 216,000
	 304
	 230
	 1.09
	 0.00
	 2.1
	 1.6
	 8
	 0

	 Indicated
	 Oxide Tailings
	 50
	 1,120,000
	 124
	 89
	 0.42
	 0.00
	 4.5
	 3.2
	 15
	 0

	 Total Indicated
	 All Deposits
	  
	 15,226,000
	 111
	 64
	 0.67
	 0.37
	 54.5
	 31.3
	 327
	 56,700

	 Total Measured and Indicated
	 All Deposits
	  
	 20,253,000
	 117
	 69
	 0.67
	 0.41
	 75.9
	 44.9
	 436
	 83,000

	 Inferred Mineral Resources

	 Inferred
	 Avino – ET
	 60
	 5,230,000
	 95
	 51
	 0.64
	 0.34
	 16.0
	 8.5
	 108
	 17,700

	 Inferred
	 San Gonzalo System
	 130
	 85,000
	 298
	 233
	 0.96
	 0.00
	 0.8
	 0.6
	 3
	 0

	 Inferred
	 Oxide Tailings
	 50
	 1,230,000
	 125
	 85
	 0.47
	 0.00
	 5.0
	 3.4
	 19
	 0

	 Total Inferred
	 All Deposits
	  
	 6,545,000
	 103
	 59
	 0.61
	 0.27
	 21.8
	 12.5
	 129
	 17,700

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 	  
	 Notes: 
	 Figures may not add to totals shown due to rounding.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The Mineral Resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects.
Based on recent mining costs (Section 21) Mineral Resources are reported at cut-off grades 60 g/t, 130 g/t, and 50 g/t AgEQ grade for ET, San Gonzalo, and oxide tailings, respectively. 
AgEQ or silver equivalent ounces are notational, based on the combined value of metals expressed as silver ounces 
Cut-off grades were calculated using the following consensus metal price assumptions: gold price of US$1,875/oz, silver price of US$24.00/oz, and copper price of US$3.10/lb. 
Metal recovery is based on operational results and column testing and is shown in Table 14.2.
The silver equivalent was back calculated using the following formulas: ET AgEQ = Ag + 65.1 * Au + 8.66 * Cu ppm / 10,000 ; SG AgEQ = Ag + 72.54 * Au; Oxide Tailings AgEQ = Ag + 84.55 * Au.

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 14.2 Metallurgical Recovery for Deposits based on Operational Performance and Column Tests
  
 	 Metallurgical Recovery %

	  
	 ET
	 SG
	 Oxide Tails

	 Ag
	 90
	 84
	 73

	 Au
	 75
	 78
	 79

	 Cu
	 88
	 -
	 -

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 14.2 DATA
  
 Drillhole data for the Avino and San Gonzalo resource estimates was supplied by Avino to the QP in the form of several Microsoft® Excel spreadsheet and Microsoft® Access files, and this data was verified and compiled into .csv files (see Section 12.1). 
  
 Wireframe meshes (.dxf files) of the topography, underground development, previous 3D models of the San Gonzalo and Avino Veins and cross-section and plan view images were supplied by Avino. Drillhole data was imported into Leapfrog GeoTM software (version 4.2.3).
  
 Data includes underground channel sampling and diamond drill data.
  
 14.3 AVINO VEIN
  
 14.3.1 GEOLOGICAL INTERPRETATION
  
 The Avino Vein and the surrounding system are interpreted as part of a low- to intermediate-sulphidation system of silver-gold epithermal veins, breccias, stockworks, and silicified zones. The Avino system is relatively thick (up to 40 m thick in places) and exhibits lower silver but higher copper grades than the San Gonzalo Vein system. The San Gonzalo Vein system is narrow with high silver grades and the system is vertically restricted to a vertical interval less extending from surface down to 350 m below surface. 
  
 Historically, exposure and sampling of the deposit in underground development has been understandably biased towards the higher end of the silver grade spectrum. This presents problems when making decisions on what should be included as mineralized vein material, as the position of the mineralization to barren interface was either not exposed or recorded in the development data. In many cases, the edge of the mineralized zones was approximated by the end of sampling, the edge of the development, or a 40 g/t silver grade.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Unlike the San Gonzalo Vein system, the Avino Veins system at ET Mine is a broad zone of (up to 60 m thick ) of anastomosing veins, breccias, and stockworks, and with more persistent downdip continuity. In 2017, there were indications that the average dip of the veins was maintained at 60° to 65° and were thinning at depth (see Figure 14.1 and Figure 14.3). Subsequently, the mineralised system has been exposed to a down-plunge extent of 550 (to 1,850 m AMSL) and is still open to depth. Underground development and stoping at the ET Mine below elevations of 1,950 m AMSL have revealed that the mineralized veins are flattening (to approximately 45° dip) in a listric fashion, and detailed underground sampling have revealed that the stockworks surrounding the veins are significantly better mineralized than previously believed (see Figure 14.2 and Figure 14.4). The Avino system can be summarised as two persistent vein structures with a stockwork containing mineralised veinlets between the veins and similar stockworks in the hanging wall and footwall. 
  
 Horizontal sections highlighting interpretation and model changes are shown in Figure 14.1 and Figure 14.2. The QP believes that it is reasonable to extend the geometric interpretation of the Avino Vein system to accommodate the mineralization physically sampled in the underground development (see Figure 14.2). 
  
 In 2020, the Avino Vein system was remodelled using Leapfrog Geo to account for the broader extents of the stockworks, deeper vein extension, and listric geometry. 
  
 Figure 14.1 Horizontal Section Elevation 1,888 m AMSL, 2017 Interpretation, Avino Main Vein Shown in Green. Note high grade underground sampling extending into the hanging wall of the vein as stockwork and veins are exposed by underground development.
  
 
 Source: Red Pennant (2020)
   
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-4
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.2 Horizontal Section Elevation 1888m AMSL, 2020 Interpretation, Avino Veins Shown in Yellow, Stockwork in Buff. Two veins modelled with lower grade stockwork exposed by underground development.
  
 
 Source: Red Pennant (2020)
  
 Figure 14.3 Vertical Section (reference +2712601.00, Y+570400.00, Azimuth 070) Showing 2017 Avino Vein System Model
   
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.4 Vertical Section (reference +2712601.00, Y+570400.00, Azimuth 070) Showing 2020 Avino Vein System Model. Note system flattening at depth.
  
 
 Source: Red Pennant (2020)
  
 The distribution of grades relative to a reference stratigraphic position of the footwall of the persistent main vein of the Avino system was investigated by plotting composite sampled metal grades relative to position (see Figure 14.5 and Figure 14.6). Grades were averaged over 5 m intervals above and below this reference surface. 
   
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 
 	 
	14-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.5 Silver and Gold Grade Profiles Relative the Avino Vein Main Zone Footwall
  
 
 Source: Red Pennant (2020)
  
 As can be seen in Figure 14.5, there is significant precious metal zonation across the deposit. The highest silver grades persist at the contact, while the highest gold grades are offset about 10 m above the contact. Significant mineralization gradually decreases from the contact to 75 m with secondary concentration developed at 100 m to 120 m in the hanging-wall (corresponding partly to the Hangingwall Breccias).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-7
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.6 Copper and Bismuth Grade Profiles Relative the Avino Vein Main Zone Footwall
  
 
 Source: Red Pennant (2020)
  
 As can be seen in Figure 14.6, there is also significant copper and bismuth zonation across the deposit. The highest copper and bismuth grades exist at the contact. Significant mineralization gradually decreases from the contact to 75 m with secondary concentration developed at 100 m to 140 m in the hanging-wall (corresponding partly to the Hangingwall Breccias).
  
 To assess the behaviour of Avino Vein system metal grades with depth, bubble charts were plotted showing silver, gold, and copper grade changes with depth (25 m intervals), as well as relative to the Avino Vein Main Zone Footwall (see Figure 14.7, Figure 14.8, and Figure 14.9, respectively). The relative grades are represented by the size of the solid circles plotted at each point. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-8
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.7 Relative Silver Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
  
 
 Source: Red Pennant (2020)
  
 As can be seen in Figure 14.7, based on underground channel and drill sampling, the silver grades appear to be gradual in magnitude but consistent in the extent below 2,000 m elevation, with no sign of an imminent termination.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-9
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.8 Relative Gold Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
   
 
 Source: Red Pennant (2020)
  
 As can be seen in Figure 14.8, based on underground channel and drill sampling, the gold grades between 2,100 m and 2,000 m elevations were relatively low but have increased again below 2,000 m elevation, albeit they are more erratic than the silver grades.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-10
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.9 Relative Copper Grades Plotted by Elevation (AMSL, Y-axis) and Distance to Vein Main Zone Footwall Contact
  
 
 Source: Red Pennant (2020)
  
 As can be seen in Figure 14.9, based on underground channel and drill sampling, the copper grades appear to be consistent in grade and extent below 2,000 m elevation with no sign of an imminent termination. 
  
 The QP believes that the sampling of the metal grades by stratigraphic position and depth below surface and verified by underground exposures and channel sampling, provide a strong case to model the Avino Vein system with wider and flatter geometry to reflect the existence of stockworks fringing the veins. The revised modelling is reflected in the estimation domain models and Mineral Resource estimates of the Avino Vein system at ET Mine.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-11
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 14.3.2 WIREFRAMING
  
 Mineralized zones were modeled by the QP in Leapfrog GeoTM software, utilizing the drillhole data, topography, and the underground development information. Wireframes and scans of cross-sectional interpretations and underground mappings supplied by Avino assisted in modelling the deposit.
  
 The modelling was carried out independently by the QP using Leapfrog GeoTM software applying an implicit “vein system”-style of modelling workflow to produce a series of seamless 3D units.
  
 The Avino mineralized vein system (see Figure 14.10) was modelled as a vein system, with four subparallel but cross-cutting veins corresponding to higher metal contents with a lower-grade stockwork system consisting of four units between and fringing the veins system. The units are aligned east-northeast–west-southwest and dip steeply (40° to 80°) south. The Hangingwall Breccia (coded ET_HO2) is aligned east–west with increasing separation from the main Avino Vein towards the east. The system appears to be flattening with increasing depth (see Figure 14.24). Lithology information and grade information were both used to interpret the extents of the veins and to flag sampled and logged intervals as country rock or as one of the units of interest. Two late-age steep, northerly striking barren rhyolite dykes transect the system (Figure 14.10).
  
 Figure 14.10 Oblique View, Looking North, of the Avino Vein System Model
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-12
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 To test the robustness of the model, grade contact profiles were generated.
  
 Grade contact profiles demonstrate how well the wireframe meshes segregate the metal, based on the assayed samples. These contact profiles were generated by determining the average grades for sampled metals within successive 5 m wide slices inside and outside the Avino Vein System models for a range of distances from -10 m (inside the system) to +50 m (outside) from the contact.
  
 The profiles are shown in graphs in Figure 14.11 and the number of samples per 1 m slice is shown in Figure 14.12. There is a moderately rapid decrease with increasing distance from the vein contacts in silver, gold, zinc, and copper profiles (as shown in Figure 14.11). To better display the profiles on a single graph, silver has been re-scaled to fit and copper and zinc are in percentage units. For example, the silver grade is generally in excess of 80 g/t within the vein but decreases to an average of less than 30 g/t at a distance of 30 m from the vein contact. Zinc appears to be a good indicator element for the mineralized system and rapidly decreases in abundance within 5 m of the contact. This may be used to advantage in future modelling of the system.
  
 As can be seen (Figure 14.12), there is a rapid decrease of information at ranges greater than 20 m from the contact (contact is represented by “0” on the horizontal axis). This is to be expected as the information has been generated in underground workings that have been designed to preferentially expose and sample material that is better mineralized in the vein system. Information is biased towards the underground excavations and the understandable historic tendency to only sample material at any distances away from the known veins that display good mineralization characteristics. However, the profiles do provide an indication that the Avino Vein system has a gradational or soft boundary tendency from an estimation point of view. Silver, gold, and copper show the gradational profile, while zinc has a relatively sharp profile. This should be followed up to develop future estimation strategies.
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-13
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.11 Silver Grade Profiles Across the Avino Vein System Contacts
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-14
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Figure 14.12 Copper Grade Profile Across the Avino Stockwork Contacts
  
 
 Source: Red Pennant (2020)
  
 14.4 SAN GONZALO VEIN
  
 14.4.1 GEOLOGICAL INTERPRETATION
  
 The San Gonzalo Vein is interpreted as part of a low- to intermediate-sulphidation system of silver-gold epithermal veins and silicified zones. The individual veins in the San Gonzalo system are relatively narrow (mostly less than 3 m thick in places) and exhibit higher silver but lower copper grades than the Avino Vein system.
  
 14.4.2 WIREFRAMING
  
 The system was modelled using Leapfrog GeoTM software as six sub-parallel but cross‐cutting veins consisting of a main vein (SG1) and five subsidiary units (SG2 through SG6). Lithology information and grade information were both used to interpret the extents of the veins and to flag sampled and logged intervals as country rock or as one of the units of interest. Figure 14.13 displays the modeling results graphically.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-15
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.13 Oblique View, Looking North, of the San Gonzalo Vein System Model
  
 
 Source: Red Pennant (2020)
  
 To assess the level to which the interpreted San Gonzalo Veins have honoured the selection, contact profiles were generated to examine how well the wireframe meshes segregate the metal, based on the assayed samples. The San Gonzalo Veins are more compact than the Avino Veins and the metal grades at San Gonzalo are confined to the vein material. The contact profiles were generated by determining the average grades for several metals within successive 5 m wide slices inside and outside the San Gonzalo Vein system models for a range of distances from -1.5 m (inside the system) to +1.7 m (outside) from the contact. The profiles are shown in Figure 14.14. There is a rapid decrease with increasing distance from the vein contacts in silver, gold, and copper profiles.
  
 Figure 14.14 Silver and Gold Grade Profiles Across the Main San Gonzalo Vein Contacts
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-16
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 For example, the silver grade is generally in excess of 200 g/t within the vein but decreases to an average of less than 50 g/t at a distance of 1 m from the vein contact. 
  
 For gold, the contacts were less conspicuous, but average grade data still showed that the populations were statistically distinct. All contacts between mineralized and wall rock populations were treated as hard boundaries in estimation.
  
 The San Gonzalo Vein system model is more robust when compared to the data and displays more abrupt metal profiles than the equivalent for the Avino Vein. This may reflect real differences in the mineralization styles (thickness and metal grade differences also support a different process) but may also to some degree be a result of the sparse legacy lithology data in the upper part of the Avino mine site.
  
 14.5 OXIDE TAILINGS
  
 14.5.1 GEOLOGICAL INTERPRETATION
  
 In the Avino oxide tailings, a prominent bench separates the lower portion of the deposit (referred to as the “oxide lower bench” in various documents) from the upper portion of the oxide tailings (the “middle bench”). Overlying the oxide tailings is a volume of sulphide tailings material (the “upper bench” or “sulphide tailings”). The sulphide tailings material lacks representative sampling data.
  
 Figure 14.15 is a perspective view looking north, showing the oxide lower bench, oxide lower bench and sulphide tailings and the positions of drillholes and silver assays.
  
 Figure 14.15 Perspective View of Oxide Tailings Drilling and Silver Assays
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-17
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 14.5.2 WIREFRAMING
  
 The tailings deposit was modelled using topography information supplied by Avino and bedrock contact information from the drilling data. 
  
 The grade pattern of the upper and lower and middle benches has been better defined by the addition of the recent drilling information (more than doubling the amount of assays, see Table 14.3). Previously, the middle and lower oxide benches were considered separately from an estimation perspective based on the colour difference, the middle bench appearing to be more reddish than the lower material. This may reflect a change in iron content but not necessarily the gold or silver grades. The sampling data (see Figure 14.16) shows a pattern of silver depletion at the top of the middle bench with enrichment immediately below.
  
 Figure 14.16 Section View, Looking Northeast, Showing Silver Grades in Oxide Tailings Benches
  
 
 Source: Red Pennant (2020)
  
 The spatial pattern indicates gradational changes between the middle and lower oxide benches, except for silver, which appears to have been leached downwards from the top of the middle bench. While the colour difference between the two units may be significant for iron-bearing species, there is not a great statistical difference between the silver and gold grades in the middle and lower benches, and the leaching effect (see Figure 14.15) appears to affect the upper portion of the middle bench. Consequently, it was decided to estimate the middle and lower bench as a single domain. The use of a variogram and search ellipse, flattened in the horizontal direction also reduces the risk of smearing grade vertically. In future it may be preferable to evaluate the leached cap of the tailings separately from the remainder. The risk of not doing so at this time, is ameliorated by the horizontal variogram continuity which reduces the risk of mixing. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-18
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 14.6 EXPLORATORY DATA ANALYSIS
 
14.6.1 RAW DATA ASSAYS AND STATISTICS
  
 AVINO AND SAN GONZALO
  
 Table 14-3 shows the length-weighted metal statistics for the sample data for the Avino and San Gonzalo mineralization. Assayed metals include silver, gold, and copper. Metals considered in the Avino ET resource estimate include silver, gold, and copper. Metals considered in the San Gonzalo Vein resource estimate include silver and gold.
  
 OXIDE TAILINGS
  
 The oxide tailings drillhole dataset included 91 drillholes with a total metreage of 1,396 m that was completed in the tailings from 1990 to 2016. The data are summarized by campaign in Table 14-4. Only the gold and silver are considered to be of economic interest in the oxide tailings deposit.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-19
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Table 14.3 Metal Grade Statistics for 2 m Composites for the Avino and San Gonzalo Vein Systems
  
 	 Metal
	 Domain
	 Number of Composites
	 Mean
	 CV
	 Variance
	 Minimum
	 Maximum
	 Capping Value
	 Number Capped

	 Avino Vein and Stockworks

	 Ag (g/t)
	 ET01
	 5,204
	 83.57
	 1.01
	 7,073.09
	 0.003
	 1036.000
	 630
	 9

	 Ag (g/t)
	 ET02
	 7,188
	 60.13
	 1.15
	 4,796.86
	 0.003
	 1242.950
	 630
	 12

	 Ag (g/t)
	 ET03
	 2,802
	 63.73
	 1.27
	 6,577.92
	 0.003
	 1851.198
	 790
	 3

	 Ag (g/t)
	 ET04
	 1,080
	 45.99
	 1.46
	 4,537.71
	 0.003
	 1058.000
	 500
	 3

	 Ag (g/t)
	 ET_F01
	 1,777
	 52.59
	 1.65
	 7,487.15
	 0.003
	 1993.750
	 630
	 4

	 Ag (g/t)
	 ET_F02
	 247
	 45.97
	 1.03
	 2,222.18
	 0.503
	 338.515
	 250
	 2

	 Ag (g/t)
	 ET_F03
	 80
	 105.12
	 0.82
	 7,434.85
	 0.003
	 451.219
	 300
	 2

	 Ag (g/t)
	 ET_H01
	 182
	 37.25
	 0.86
	 1,015.01
	 0.005
	 227.450
	 130
	 3

	 Ag (g/t)
	 ET_H02 (HW Breccia)
	 254
	 34.45
	 1.98
	 4,672.41
	 0.002
	 871.697
	 320
	 2

	 Au (g/t)
	 ET01
	 5,204
	 0.60
	 1.90
	 1.29
	 0.0002
	 42.110
	 12
	 6

	 Au (g/t)
	 ET02
	 7,188
	 0.57
	 4.59
	 6.90
	 0.0003
	 113.820
	 20
	 18

	 Au (g/t)
	 ET03
	 2,802
	 0.73
	 2.63
	 3.65
	 0.0003
	 58.278
	 20
	 3

	 Au (g/t)
	 ET04
	 1,080
	 0.59
	 2.02
	 1.43
	 0.0003
	 23.460
	 15
	 2

	 Au (g/t)
	 ET_F01
	 1,777
	 0.42
	 5.88
	 5.97
	 0.0003
	 64.091
	 8
	 5

	 Au (g/t)
	 ET_F02
	 247
	 0.35
	 2.48
	 0.75
	 0.0003
	 10.856
	 5
	 1

	 Au (g/t)
	 ET_F03
	 80
	 1.01
	 0.74
	 0.55
	 0.0003
	 3.818
	 2.5
	 3

	 Au (g/t)
	 ET_H01
	 182
	 0.10
	 1.13
	 0.01
	 0.0003
	 0.803
	 0.6
	 3

	 Au (g/t)
	 ET_H02 (HW Breccia)
	 254
	 0.60
	 1.71
	 1.05
	 0.0003
	 8.795
	 6
	 2

	 Bi (ppm)
	 ET01
	 322
	 312.22
	 1.60
	 250,449.18
	 8.648
	 4116.878
	 1500
	 6

	 Bi (ppm)
	 ET02
	 426
	 178.86
	 2.02
	 129,948.59
	 2.000
	 5646.154
	 1500
	 4

	 Bi (ppm)
	 ET03
	 156
	 179.04
	 1.63
	 85,314.19
	 6.780
	 2204.922
	 600
	 12

	 Bi (ppm)
	 ET04
	 147
	 115.53
	 2.06
	 56,814.15
	 2.000
	 1411.111
	 800
	 6

	 table continues...

 
 
 
 
 
 
 
 
 
 
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 
 	 
	14-20
	

	 

 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 
 	 Metal
	 Domain
	 Number of Composites
	 Mean
	 CV
	 Variance
	 Minimum
	 Maximum
	 Capping Value
	 Number Capped

	 Bi (ppm)
	 ET_F01
	 324
	 282.48
	 1.48
	 175,688.48
	 2.000
	 2824.140
	 1500
	 11

	 Bi (ppm)
	 ET_F02
	 47
	 336.06
	 0.96
	 103,452.21
	 26.968
	 1739.328
	 250
	 21

	 Bi (ppm)
	 ET_F03
	 11
	 338.90
	 0.49
	 28,102.78
	 83.668
	 549.137
	 -
	 0

	 Bi (ppm)
	 ET_H01
	 18
	 67.18
	 1.20
	 6,511.10
	 24.875
	 302.676
	 130
	 3

	 Bi (ppm)
	 ET_H02 (HW Breccia)
	 130
	 118.55
	 1.53
	 32,722.93
	 2.000
	 1218.267
	 800
	 2

	 Cu (ppm)
	 ET01
	 5,204
	 6,769.68
	 0.83
	 31,604,725
	 0.005
	 106242.638
	 32000
	 16

	 Cu (ppm)
	 ET02
	 7,188
	 5,344.41
	 0.91
	 23,699,133
	 0.005
	 91100.000
	 32000
	 13

	 Cu (ppm)
	 ET03
	 2,802
	 4,036.78
	 0.95
	 14,574,237
	 0.005
	 73218.350
	 32000
	 1

	 Cu (ppm)
	 ET04
	 1,080
	 3,137.45
	 1.10
	 11,916,624
	 0.005
	 36200.000
	 25000
	 5

	 Cu (ppm)
	 ET_F01
	 1,777
	 5,287.33
	 1.00
	 28,161,156
	 0.005
	 59379.562
	 50000
	 1

	 Cu (ppm)
	 ET_F02
	 247
	 5,316.29
	 0.89
	 22,633,614
	 1.000
	 28469.950
	 25000
	 1

	 Cu (ppm)
	 ET_F03
	 80
	 6,036.12
	 0.87
	 27,631,866
	 0.005
	 24689.793
	 16000
	 5

	 Cu (ppm)
	 ET_H01
	 182
	 5,094.17
	 0.77
	 15,504,450
	 64.738
	 26437.130
	 20000
	 1

	 Cu (ppm)
	 ET_H02 (HW Breccia)
	 254
	 1,224.60
	 1.22
	 2,231,692
	 0.005
	 10472.296
	 9000
	 2

	 San Gonzalo Vein

	 Ag (g/t)
	 SG1
	 6,669
	 283.66
	 2.08
	 349,328.43
	 0
	 14,768.40
	 5000
	 25

	 Ag (g/t)
	 SG2
	 117
	 72.32
	 1.11
	 6,500.57
	 0.9
	 890.24
	 0
	 -

	 Ag (g/t)
	 SG3
	 38
	 95.94
	 1.39
	 17,852.42
	 1.69
	 604.45
	 0
	 -

	 Ag (g/t)
	 SG4
	 168
	 200.05
	 2.81
	 315,058.50
	 3.72
	 5,265.20
	 3000
	 2

	 Ag (g/t)
	 SG5
	 40
	 111.98
	 1.71
	 36,807.33
	 1.5
	 708.1
	 600
	 2

	 Ag (g/t)
	 SG6
	 54
	 40.25
	 1.99
	 6,418.32
	 0.7
	 331.2
	 0
	 -

	 Au (g/t)
	 SG1
	 6,669
	 1.48
	 2.8
	 17.22
	 0
	 204.17
	 0
	 -

	 Au (g/t)
	 SG2
	 117
	 0.56
	 1.04
	 0.35
	 0.01
	 3.79
	 0
	 -

	 Au (g/t)
	 SG3
	 38
	 0.58
	 1.07
	 0.38
	 0.02
	 3.05
	 0
	 -

	 Au (g/t)
	 SG4
	 168
	 0.69
	 2.24
	 2.41
	 0.01
	 13.96
	 10
	 2

	 Au (g/t)
	 SG5
	 40
	 0.74
	 2.26
	 2.78
	 0.01
	 9.84
	 4
	 2

	 Au (g/t)
	 SG6
	 54
	 0.3
	 2.08
	 0.39
	 0
	 2.77
	 0
	 -

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-21
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 14.4 Oxide Tailings Samples by Sampling Campaign
  
 	 By campaign
	 Pre-2012
	 2015-16

	 Campaign
	 0
	 1

	 Number (Ag)
	 448
	 561

	 Number (Au)
	 448
	 556

	 Number (Cu)
	 0
	 566

	 Number (Pb)
	 0
	 563

	 Number (Zn)
	 0
	 566

	 Mean Ag (g/t)
	 95.39
	 97.81

	 Mean Au (g/t)
	 0.53
	 0.47

	 Mean Cu (%)
	 -
	 0.14

	 Mean Pb (%)
	 -
	 0.99

	 Mean Zn (%)
	 -
	 0.19

	 Variance Ag
	 814.94
	 1073.20

	 Variance Au
	 0.03
	 0.06

	 Variance Cu
	 -
	 0.01

	 Variance Pb
	 -
	 0.18

	 Variance Zn
	 -
	 0.04

	 Minimum Ag
	 11.00
	 4.00

	 Minimum Au
	 0.10
	 0.01

	 Minimum Cu
	 -
	 0.00

	 Minimum Pb
	 -
	 0.00

	 Minimum Zn
	 -
	 0.00

	 Maximum Ag
	 222.00
	 309.00

	 Maximum Au
	 1.28
	 2.02

	 Maximum Cu
	 -
	 0.66

	 Maximum Pb
	 -
	 3.26

	 Maximum Zn
	 -
	 1.65

	 CV Ag
	 0.09
	 0.11

	 CV Au
	 0.10
	 0.26

	 CV Cu
	 -
	 0.53

	 CV Pb
	 -
	 0.18

	 CV Zn
	 -
	 1.19

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-22
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 The oxide tailings data have been subdivided by unit and the metal assay statistics are summarized in Table 14.5.
  
 Table 14.5 Oxide Tailings Assays by Unit
  
 	 Unit
	 Unknown
	 Lower
	 Middle
	 Bedrock

	 Length (m)
	 139.7
	 608.9
	 619.2
	 28.2

	 Number (Ag)
	 50
	 497
	 482
	 11

	 Number (Au)
	 50
	 497
	 482
	 11

	 Number (Cu)
	 41
	 186
	 207
	 3

	 Number (Pb)
	 41
	 186
	 207
	 3

	 Number (Zn)
	 41
	 186
	 207
	 3

	 Mean Ag (g/t)
	 97.72
	 103.85
	 89.27
	 77.55

	 Mean Au (g/t)
	 0.39
	 0.47
	 0.51
	 0.29

	 Mean Cu (%)
	 0.15
	 0.13
	 0.12
	 0.14

	 Mean Pb (%)
	 1.24
	 1.12
	 0.85
	 1.28

	 Mean Zn (%)
	 0.18
	 0.18
	 0.12
	 0.20

	 Variance Ag
	 20.60
	 20.60
	 52.00
	 20.60

	 Variance Au
	 0.20
	 0.11
	 0.13
	 0.11

	 Variance Cu
	 0.00
	 0.00
	 0.00
	 0.00

	 Variance Pb
	 0.00
	 0.00
	 0.00
	 0.00

	 Variance Zn
	 0.00
	 0.00
	 0.00
	 0.00

	 Minimum Ag
	 148.13
	 182.01
	 193.13
	 115.00

	 Minimum Au
	 0.74
	 1.08
	 1.21
	 0.44

	 Minimum Cu
	 0.27
	 0.27
	 0.26
	 0.15

	 Minimum Pb
	 1.75
	 1.83
	 2.02
	 1.50

	 Minimum Zn
	 0.34
	 0.38
	 0.26
	 0.22

	 Maximum Ag
	 542.01
	 428.63
	 525.92
	 1257.48

	 Maximum Au
	 0.01
	 0.02
	 0.01
	 0.01

	 Maximum Cu
	 24.41
	 22.01
	 9.75
	 3.51

	 Maximum Pb
	 479.10
	 531.34
	 528.62
	 453.94

	 Maximum Zn
	 18.67
	 25.97
	 12.96
	 6.20

	 CV Ag
	 0.00
	 0.00
	 0.01
	 0.00

	 CV Au
	 1.30
	 0.52
	 0.48
	 1.34

	 CV Cu
	 0.00
	 0.00
	 0.00
	 0.00

	 CV Pb
	 0.00
	 0.00
	 0.00
	 0.00

	 CV Zn
	 0.00
	 0.00
	 0.00
	 0.00

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-23
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 14.6.2 OUTLIER MANAGEMENT AND CAPPING STRATEGY
  
 It is common practice in the mineral industry to restrict the influence of high assays through “top-cutting” or “capping”. Capping was implemented for each element and for each domain, after sample length compositing. Capping limits were chosen based on a review of sampling histograms using Snowden SupervisorTM software and examination of coefficient of variation statistic for each domain. The coefficient of variation, also known as relative standard deviation, is a standardized measure of dispersion of a probability distribution and provides an indication of the presence of significant outliers. Coefficient of variation statistics greater than two and the visual detection of irregular behaviour in the upper portion of log histogram of the data were used as an indicator that capping should be applied.
  
 14.6.3 DRILLHOLE COMPOSITING
  
 Compositing is carried out to ensure a common ‘change of support’ length. If samples are not composited, small length samples with a high grade (and the converse) might bias the estimation process.
  
 Inspection of the raw data from the Avino and San Gonzalo systems indicated that a common composite length of 2 m would accommodate most sample lengths as the majority of sample lengths were less than 2 m and 2 m was used as the standard composite length for the deposit.
  
 Compositing in LeapfrogTM included all samples in the composites with a minimum width of 1 m within the mineralized zones. New composites were thus created each time the domain changed.
  
 14.7 DENSITY
 
14.7.1 DENSITY DATA 
  
 Density data was supplied by Avino in the form of a set of measurements made at site. Summary statistics for these measurements are provided in Table 14.6 and Table 14.7.
  
 Table 14.6 Avino Vein System Density Data Summary
  
 	 Domain
	 Number
	 Minimum
	 Maximum
	 Mean
	 Variance
	 Coefficient of
Variation

	 10 (Main)
	 40
	 2.53
	 3.00
	 2.71
	 0.02
	 0.05

	 HW01
	 42
	 2.43
	 2.90
	 2.68
	 0.01
	 0.03

	 Wall Rock
	 93
	 2.29
	 3.00
	 2.65
	 0.04
	 0.07

	 Combined
	 175
	 2.29
	 3.00
	 2.67
	 0.03
	 0.06

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-24
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 14.7 San Gonzalo Vein System Density Data Summary
  
 	 Domain
	 Number
	 Minimum
	 Maximum
	 Mean
	 Variance
	 Coefficient of
Variation

	 SG1
	 50
	 2.40
	 3.00
	 2.64
	 0.03
	 0.07

	 SG2
	 2
	 2.73
	 2.78
	 2.76
	 0.00
	 0.01

	 Wall Rock
	 41
	 2.40
	 3.00
	 2.69
	 0.02
	 0.05

	 Combined
	 93
	 2.40
	 3.00
	 2.67
	 0.03
	 0.06

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 The Avino Vein system density data is widely spaced in drillholes across the lower portion of the mine and more than half of the measurements are not in the vein material. The San Gonzalo Vein system density data is more comprehensive but more than 40% of the measurements are not in the vein material.
  
 A global average of 2.63 t/m3 was used for the resource tonnage estimation as it reflects the historic average used at the mine for both the Avino and the San Gonzalo Vein Systems.
  
 Avino conducted bulk density measurements on 432 samples from 20 drillholes in the oxide tailings. Based on these data, Slim (2005d) determined a global average specific gravity value of 1.605 for the oxide tailings. No new specific gravity data that can be considered representative of the tailings pile has been collected, so the QP used the specific gravity value of 1.605 for the current oxide tailings estimate.
  
 14.8 BISMUTH
  
 Bismuth is relevant as a penalty element in the Avino Vein material at ET Mine and San Luis. The spatial distribution of the bismuth grade is important for any future planning for possible selective mining or blending. However, there are only 11,483 bismuth assays, compared with 65,512 silver assays. Statistical analysis of the coordinated assay data shows that bismuth is correlated with silver and copper. 
  
 Bismuth was estimated by simple kriging, using each of the global domain means as a target for estimation. OK would have likely underestimated low bismuth grades in parts of the model with sparse information. 
  
 The QP believes that this method of estimating bismuth as a penalty element is useful to estimate in situ bismuth. In the future, bismuth should be assayed at the same rate as copper to provide more detailed information for mine planning.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-25
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 14.9 VARIOGRAPHY AND SPATIAL ANALYSIS
  
 Variography was conducted utilizing Snowden SupervisorTM software for the San Gonzalo and oxide tailings deposits. Leapfrog EDGE software was used to model the Avino Vein domain variograms using a normal scores transform to reduce the effect of extreme values. The experimental variograms were modelled parallel to the orientations of the veins in the case of the Avino and San Gonzalo Veins and horizontal for the oxide tailings.
  
 Experimental variograms were modelled for the Avino Vein system and the oxide tailings, for all domains and for the relevant potentially useful metals, silver, gold, and copper. Experimental variograms were modelled for the San Gonzalo Vein system for all domains and for the relevant, potentially useful metals, silver and gold. The variogram models for San Gonzalo have been revised since 2016 to incorporate the observed sub-horizontal trends in grade that appear to reflect telescoping of the mineralization into a vertical window some two to three hundred metres in vertical extent.
  
 Figure 14.17 through Figure 14.23 show representative variograms. Variograms were modelled in a normal scores transform, using Snowden SupervisorTM and then back‐transformed and used for estimation on the untransformed grade data in Leapfrog EdgeTM. NN and inverse distance (ID) estimates used the same search ellipses applied for the corresponding OK estimators.
  
 Figure 14.17 Avino Vein: Main Zone Experimental and Modelled Silver Variograms
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-26
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.18 Avino Vein: Main Zone Experimental and Modelled Gold Variograms
  
 
 Source: Red Pennant (2020)
  
 Figure 14.19 Avino Vein: Main Zone Experimental and Modelled Copper Variograms
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-27
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.20 San Gonzalo Vein: SG1 Experimental and Modelled Silver Variograms
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-28
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Figure 14.21 San Gonzalo Vein: SG1 Experimental and Modelled Gold Variograms
   
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-29
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.22 Oxide Tailings: Domain 10 Experimental Silver Variograms
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-30
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 Figure 14.23 Oxide Tailings: Domain 10 Experimental Silver Variograms
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-31
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 14.10 INTERPOLATION PLAN AND KRIGING PARAMETERS
  
 Estimation for the Avino and San Gonzalo Vein systems was carried out using Leapfrog EdgeTM software and parameters optimized by kriging neighbourhood analysis (KNA) carried out using SupervisorTM software. Optimization was achieved by minimising the number of negative kriging weights and maximising the theoretical slope of regression of the estimates.
  
 14.10.1 AVINO
  
 A sub-blocked block model was created to cover the Avino system. The parent block size of 20 m by 10 m by 10 m was used for block model and resource estimate. Sub-blocks of 4 m by 2 m by 2 m were used to better fill the vein system model shapes. Sub-blocks were populated with grades corresponding to those estimated in the parent blocks. The interpolation method used for populating the block model was OK with locally variable anisotropy, following the orientation of the veins and stockworks. 
  
 Estimation parameters for the Avino Vein System are summarised in Table 14.8 and Table 14.9.
  
 14.10.2 SAN GONZALO
  
 A single block model was created to cover the San Gonzalo system. A block size of 10 m by 10 m by 10 m was used for block model and resource estimate. The interpolation method used for populating the block model was OK following a kriging neighbourhood specification tested in Snowden SupervisorTM software. A minimum of 16 and maximum of 48 composites were used per block with a maximum of 40 samples per drillhole.
  
 Estimation parameters used for the San Gonzalo system are summarised in Table 14.10.
  
 14.10.3 OXIDE TAILINGS
  
 A single block model was created to cover the Avino oxide tailings deposit. A block size of 20 m by 20 m by 2 m was used for block model and resource estimate, as the average distance between sample drillholes approximates 30 m and the composite length is 2 m. The interpolation method used for populating the block model was OK following a kriging neighbourhood specification tested in Snowden SupervisorTM software. A minimum of 8 and maximum of 32 composites were used per block with a maximum of 40 samples per drillhole.
  
 Estimation parameters used for the oxide tailings deposit are summarised in Table 14.11.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-32
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 14.8 Avino Vein System Variogram Parameters
  
 	 General
	 Direction
	  
	  
	  
	 Structure 1
	 Structure 2

	 NS Transformed Variogram Model
	 Dip
	 Dip Azimuth
	 Pitch
	 Variance
 Sill
	 Nugget
	 Normalised 
 Nugget
	 Sill
	 Normalised Sill
	 Structure
	 Alpha
	 Major
	 Semi-major
	 Minor
	 Sill
	 Normalised Sill
	 Structure
	 Alpha
	 Major
	 Semi-major
	 Minor

	 Cu_ppm in ET_H02
	 64.17
	 157.21
	 133.9936
	 4621.559
	 936.7901
	 0.2027
	 2208.181
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 1473.353
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Cu_ppm in ET_H01
	 64.17
	 157.21
	 133.9936
	 15475680
	 3136920
	 0.2027
	 7549037
	 0.4878
	 Spherical
		 21.75
	 14.62
	 6.227
	 4768057
	 0.3081
	 Spherical
		 74.5
	 45.82
	 16.47

	 Cu_ppm in ET_F03
	 64.17
	 157.21
	 133.9936
	 7915.139
	 1601.233
	 0.2023
	 3806.391
	 0.4809
	 Spherical
		 21.75
	 14.62
	 6.227
	 2528.887
	 0.3195
	 Spherical
		 128.6
	 139.2
	 26.79

	 Cu_ppm in ET_F02
	 64.17
	 157.21
	 133.9936
	 22146700
	 4489136
	 0.2027
	 7625109
	 0.3443
	 Spherical
		 17.37
	 11.63
	 6.227
	 9950512
	 0.4493
	 Spherical
		 159.4
	 111
	 26.79

	 Cu_ppm in ET_F01
	 64.17
	 157.21
	 133.9936
	 28254257
	 5732789
	 0.2029
	 13773950
	 0.4875
	 Spherical
		 14.15
	 19.95
	 6.227
	 8741867
	 0.3094
	 Spherical
		 127.9
	 148.9
	 28.4

	 Cu_ppm in ET04
	 64.17
	 157.21
	 133.9936
	 13359779
	 2710699
	 0.2029
	 5049996
	 0.378
	 Spherical
		 21.43
	 14.62
	 6.227
	 2941823
	 0.2202
	 Spherical
		 110.4
	 71.62
	 26.79

	 Cu_ppm in ET03
	 64.17
	 157.21
	 133.9936
	 7074.763
	 1435.469
	 0.2029
	 3383.152
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2256.142
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Cu_ppm in ET02
	 64.17
	 157.21
	 133.9936
	 24359931
	 4942630
	 0.2029
	 8121601
	 0.3334
	 Spherical
		 13.4
	 9.861
	 6.227
	 7271439
	 0.2985
	 Spherical
		 107.8
	 81.49
	 25.44

	 Cu_ppm in ET01
	 64.17
	 157.21
	 133.9936
	 31817929
	 6455858
	 0.2029
	 11740816
	 0.369
	 Spherical
		 14.21
	 14.62
	 6.227
	 9294017
	 0.2921
	 Spherical
		 202.9
	 100.9
	 26.79

	 Bi_ppm in ET_H02
	 64.17
	 157.21
	 133.9936
	 4621.559
	 936.7901
	 0.2027
	 2208.181
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 1473.353
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Bi_ppm in ET_H01
	 64.17
	 157.21
	 133.9936
	 2163.58
	 438.7741
	 0.2028
	 1057.342
	 0.4887
	 Spherical
		 21.75
	 14.62
	 6.227
	 654.2667
	 0.3024
	 Spherical
		 69.21
	 100.3
	 26.79

	 Bi_ppm in ET_F03
	 64.17
	 157.21
	 133.9936
	 7915.139
	 1601.233
	 0.2023
	 3806.391
	 0.4809
	 Spherical
		 21.75
	 14.62
	 6.227
	 2528.887
	 0.3195
	 Spherical
		 128.6
	 139.2
	 26.79

	 Bi_ppm in ET_F02
	 64.17
	 157.21
	 133.9936
	 2369.105
	 480.2177
	 0.2027
	 1131.959
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 755.2708
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Bi_ppm in ET_F01
	 64.17
	 157.21
	 133.9936
	 7736.629
	 1569.762
	 0.2029
	 3693.467
	 0.4774
	 Spherical
		 21.75
	 14.62
	 6.227
	 2454.059
	 0.3172
	 Spherical
		 225.2
	 113
	 38.91

	 Bi_ppm in ET04
	 64.17
	 157.21
	 133.9936
	 7046.654
	 1429.766
	 0.2029
	 3369.71
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2247.178
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Bi_ppm in ET03
	 64.17
	 157.21
	 133.9936
	 7074.763
	 1435.469
	 0.2029
	 3383.152
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2256.142
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Bi_ppm in ET02
	 64.17
	 157.21
	 133.9936
	 136696
	 27735.63
	 0.2029
	 41541.93
	 0.3039
	 Spherical
		 18.08
	 13.74
	 4.651
	 66981.06
	 0.49
	 Spherical
		 156.8
	 140
	 18.35

	 Bi_ppm in ET01
	 64.17
	 157.21
	 133.9936
	 136696
	 27735.63
	 0.2029
	 41541.93
	 0.3039
	 Spherical
		 18.08
	 13.74
	 4.651
	 66981.06
	 0.49
	 Spherical
		 156.8
	 140
	 18.35

	 Au_ppm in ET_H02
	 64.17
	 157.21
	 133.9936
	 4621.559
	 936.7901
	 0.2027
	 2208.181
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 1473.353
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Au_ppm in ET_H01
	 64.17
	 157.21
	 150.2386
	 0.013356
	 0.002707
	 0.2027
	 0.0066
	 0.4947
	 Spherical
		 26.63
	 14.62
	 6.227
	 0.004
	 0.3013
	 Spherical
		 76.85
	 137.5
	 26.79

	 table continues...

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-33
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
       
 
 	 General
	 Direction
	  
	  
	  
	  
	 Structure 1
	 Structure 2 

	 NS Transformed Variogram Model
	 Dip
	 Dip Azimuth
	 Pitch
	 Variance
 Sill
	 Nugget
	 Normalised 
 Nugget
	 Sill
	 Normalised Sill
	 Structure
	 Alpha
	 Major 
 

	 Semi-major
	 Minor
	 Sill
	 Normalised Sill
	 Structure
	 Alpha
	 Major
	 Semi-major
	  
 Minor

	 Au_ppm in ET_F03
	 64.17
	 157.21
	 133.9936
	 0.527164
	 0.106645
	 0.2023
	 0.2557
	 0.485
	 Spherical
		 21.75
	 14.62
	 6.227
	 0.1632
	 0.3096
	 Spherical
		 87
	 87
	 27

	 Au_ppm in ET_F02
	 64.17
	 157.21
	 133.9936
	 0.744035
	 0.150816
	 0.2027
	 0.2414
	 0.3245
	 Spherical
		 24.41
	 26.52
	 9.662
	 0.3503
	 0.4708
	 Spherical
		 110.6
	 139.2
	 33.51

	 Au_ppm in ET_F01
	 64.17
	 157.21
	 133.9936
	 5.199326
	 1.054943
	 0.2029
	 1.5109
	 0.2906
	 Spherical
		 17.92
	 14.62
	 6.227
	 2.6366
	 0.5071
	 Spherical
		 250
	 185.4
	 39.41

	 Au_ppm in ET04
	 64.17
	 157.21
	 133.9936
	 1.822118
	 0.369708
	 0.2029
	 0.8737
	 0.4795
	 Spherical
		 21.75
	 14.62
	 6.227
	 0.5798
	 0.3182
	 Spherical
		 167.7
	 110.6
	 32.48

	 Au_ppm in ET03
	 64.17
	 157.21
	 133.9936
	 7074.763
	 1435.469
	 0.2029
	 3383.152
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2256.142
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Au_ppm in ET02
	 64.17
	 157.21
	 133.9936
	 8.443554
	 1.54517
	 0.183
	 4.0267
	 0.4769
	 Spherical
		 17.18
	 17.52
	 9.776
	 2.8776
	 0.3408
	 Spherical
		 172.9
	 122.6
	 60.77

	 Au_ppm in ET01
	 64.17
	 157.21
	 133.9936
	 1.305068
	 0.264798
	 0.2029
	 0.5455
	 0.418
	 Spherical
		 17.05
	 15.16
	 10
	 0.4928
	 0.3776
	 Spherical
		 258.8
	 182.1
	 26.79

	 Ag_ppm in ET_H02
	 64.17
	 157.21
	 133.9936
	 4621.559
	 936.7901
	 0.2027
	 2208.181
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 1473.353
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Ag_ppm in ET_H01
	 64.17
	 157.21
	 133.9936
	 2163.58
	 438.7741
	 0.2028
	 1057.342
	 0.4887
	 Spherical
		 21.75
	 14.62
	 6.227
	 654.2667
	 0.3024
	 Spherical
		 69.21
	 100.3
	 26.79

	 Ag_ppm in ET_F03
	 64.17
	 157.21
	 133.9936
	 7915.139
	 1601.233
	 0.2023
	 3806.391
	 0.4809
	 Spherical
		 21.75
	 14.62
	 6.227
	 2528.887
	 0.3195
	 Spherical
		 128.6
	 139.2
	 26.79

	 Ag_ppm in ET_F02
	 64.17
	 157.21
	 133.9936
	 2369.105
	 480.2177
	 0.2027
	 1131.959
	 0.4778
	 Spherical
		 21.75
	 14.62
	 6.227
	 755.2708
	 0.3188
	 Spherical
		 204.4
	 139.2
	 26.79

	 Ag_ppm in ET_F01
	 64.17
	 157.21
	 133.9936
	 7736.629
	 1569.762
	 0.2029
	 3693.467
	 0.4774
	 Spherical
		 21.75
	 14.62
	 6.227
	 2454.059
	 0.3172
	 Spherical
		 225.2
	 113
	 38.91

	 Ag_ppm in ET04
	 64.17
	 157.21
	 133.9936
	 7046.654
	 1429.766
	 0.2029
	 3369.71
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2247.178
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Ag_ppm in ET03
	 64.17
	 157.21
	 133.9936
	 7074.763
	 1435.469
	 0.2029
	 3383.152
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2256.142
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

	 Ag_ppm in ET02
	 64.17
	 157.21
	 133.9936
	 6544.979
	 1327.976
	 0.2029
	 3381.136
	 0.5166
	 Spherical
		 21.75
	 17.52
	 6.227
	 1831.285
	 0.2798
	 Spherical
		 177.4
	 144.2
	 60.77

	 Ag_ppm in ET01
	 64.17
	 157.21
	 133.9936
	 7039.369
	 1428.288
	 0.2029
	 3366.226
	 0.4782
	 Spherical
		 21.75
	 14.62
	 6.227
	 2244.855
	 0.3189
	 Spherical
		 204.4
	 139.2
	 26.79

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-34
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Table 14.9 Avino Vein System Search Parameters
  
 	 General
	 Ellipsoid Ranges
	 Variable Orientation
	 Number of Samples
	 Drillhole Limit

	 Name
	 Domain
	 Values
	 Maximum
	 Intermediate
	 Minimum
	 Minimum
	 Maximum
	 Max Samples per Hole

	 Kr, Ag_ppm in ET01
	 GM_2020: ET01
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET02
	 GM_2020: ET02
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET03
	 GM_2020: ET03
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET04
	 GM_2020: ET04
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET_F01
	 GM_2020: ET_F01
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET_F02
	 GM_2020: ET_F02
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET_F03
	 GM_2020: ET_F03
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET_H01
	 GM_2020: ET_H01
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Ag_ppm in ET_H02
	 GM_2020: ET_H02
	 Ag_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET01
	 GM_2020: ET01
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET02
	 GM_2020: ET02
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET03
	 GM_2020: ET03
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET04
	 GM_2020: ET04
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET_F01
	 GM_2020: ET_F01
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET_F02
	 GM_2020: ET_F02
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET_F03
	 GM_2020: ET_F03
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET_H01
	 GM_2020: ET_H01
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Au_ppm in ET_H02
	 GM_2020: ET_H02
	 Au_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET01
	 GM_2020: ET01
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET02
	 GM_2020: ET02
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET03
	 GM_2020: ET03
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET04
	 GM_2020: ET04
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET_F01
	 GM_2020: ET_F01
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET_F02
	 GM_2020: ET_F02
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET_F03
	 GM_2020: ET_F03
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET_H01
	 GM_2020: ET_H01
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 Kr, Cu_ppm in ET_H02
	 GM_2020: ET_H02
	 Cu_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 7
	 20
	 3

	 SKr, Bi_ppm in ET02
	 GM_2020: ET02
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET03
	 GM_2020: ET03
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET04
	 GM_2020: ET04
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET_F01
	 GM_2020: ET_F01
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET_F02
	 GM_2020: ET_F02
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET_F03
	 GM_2020: ET_F03
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET_H01
	 GM_2020: ET_H01
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

	 SKr, Bi_ppm in ET_H02
	 GM_2020: ET_H02
	 Bi_ppm
	 204.4
	 139.2
	 26.79
	 Variable Orientation
	 3
	 20
	 2

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-35
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Table 14.10 San Gonzalo Vein System: Variogram and Search Parameters
  
 	 Metal
	 Domain
	 Nugget C0
	 C1
	 C2
	 R11
	 R12
	 R13
	 R21
	 R22
	 R23
	 Ellipsoid Rotation
	 Pitch
	 Min
Comps
	 Max
Comps

	 Dip 
	 Azimuth

	 Ag
	 SG1
	 165000
	 200000
	 109160
	 16
	 16
	 6
	 92
	 84
	 13
	 76
	 32
	 170
	 8
	 32

	 Ag
	 SG2
	 4060
	 6156
	 900
	 16
	 16
	 6
	 92
	 84
	 16
	 84
	 358
	 168
	 8
	 32

	 Ag
	 SG3
	 5000
	 9000
	 4013
	 16
	 16
	 6
	 92
	 84
	 16
	 73
	 42
	 166
	 8
	 32

	 Ag
	 SG4
	 160000
	 180000
	 72635
	 16
	 16
	 6
	 92
	 84
	 16
	 86
	 9
	 117
	 8
	 32

	 Ag
	 SG5
	 10000
	 15000
	 6487
	 16
	 16
	 6
	 92
	 84
	 16
	 76
	 198
	 14
	 8
	 32

	 Ag
	 SG6
	 2000
	 2000
	 1400
	 16
	 16
	 6
	 92
	 84
	 16
	 87
	 34
	 168
	 8
	 32

	 Au
	 SG1
	 11
	 7.5
	 3.94
	 13
	 10
	 3
	 71
	 51
	 10
	 76
	 32
	 170
	 8
	 32

	 Au
	 SG2
	 0.17
	 0.1
	 0.071
	 13
	 10
	 3
	 71
	 51
	 10
	 82
	 358
	 12
	 8
	 32

	 Au
	 SG3
	 0.27
	 0.2
	 0.069
	 13
	 10
	 3
	 71
	 51
	 10
	 73
	 42
	 166
	 8
	 32

	 Au
	 SG4
	 2.03
	 0.7
	 0.33
	 13
	 10
	 3
	 71
	 51
	 10
	 86
	 9
	 168
	 8
	 32

	 Au
	 SG5
	 1.6
	 0.9
	 0.66
	 13
	 10
	 3
	 71
	 51
	 10
	 76
	 198
	 14
	 8
	 32

	 Au
	 SG6
	 0.16
	 0.1
	 0.06
	 13
	 10
	 3
	 71
	 51
	 10
	 87
	 34
	 89
	 8
	 32

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Table 14.11 Oxide Tailings Deposit: Variogram and Search Parameters
  
 	 Domain 10
	 C1
	 R11
	 R12
	 R13
	 C2
	 R21
	 R22
	 R23
	 Angle1
	 Angle2
	 Angle3
	 mincomps
	 maxcomps

	 Metal
	 Nugget

	 Ag
	 0.37
	 0.49
	 30
	 7
	 68
	 0.14
	 130
	 20
	 170
	 0
	 -90
	 135
	 8
	 32

	 Au
	 0.39
	 0.51
	 55
	 8
	 16
	 0.1
	 100
	 20
	 92
	 0
	 -90
	 135
	 8
	 32

	 Cu
	 0.2
	 0.59
	 68
	 8
	 24
	 0.21
	 195
	 19
	 112
	 0
	 -90
	 135
	 8
	 32

	 Pb
	 0.45
	 0.35
	 63
	 13
	 70
	 0.2
	 269
	 14
	 170
	 0
	 -90
	 135
	 8
	 32

	 Zn
	 0.23
	 0.42
	 190
	 11
	 51
	 0.35
	 191
	 12
	 165
	 0
	 -90
	 135
	 8
	 32

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-36
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 14.11 RESOURCE BLOCK MODELS
 
14.11.1 BLOCK MODEL CONFIGURATIONS
  
 The specifications for the estimation block models for the Avino Vein system and the San Gonzalo Vein system (built using Leapfrog EdgeTM) and the oxide tailings (built using Datamine StudioTM) are summarized in Table 14.12 and Table 14.13. Both the hard rock vein deposit models for the Avino and San Gonzalo systems are rotated about a vertical axis passing through the bottom left hand corner to better conform to the strike of the veins. Sub‐blocking was used to optimize volume filling of the vein models by preferentially minimizing block dimension in the Y-dimension for the vein models, while the sub‐blocking used for the oxide tailings block model minimized the block dimension in the vertical direction. The block models were not inclined to avoid potential geometric confusion when the models are used for planning and reconciliation.
  
 Table 14.12 Estimation Block Model Specifications
  
 	 Model
	 X0
	 Y0
	 Z0
	 NX
	 NY
	 NZ
	 DX
	 DY
	 DZ
	 MinDX
	 MinDY
	 MinDZ
	 RotV

	 Avino Vein
(Leapfrog)
	 569840
	 2712270
	 1800
	 137
	 44
	 65
	 20
	 10
	 10
	 5
	 1
	 2
	 335

	 San Gonzalo Vein
(Leapfrog)
	 571065
	 2714432.5
	 2355
	 163
	 72
	 56
	 10
	 5
	 10
	 2.5
	 0.25
	 2.5
	 35

	 Oxide Tailings
(Datamine)
	 569680
	 2712020
	 2170
	 16
	 15
	 37
	 40
	 40
	 2
	 4
	 4
	 0.2
	 0

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 Table 14.13 Explanation of Table 14.12
  
 	 Variable
	 Meaning

	 X0
	 minimum easting

	 Y0
	 minimum northing

	 Z0
	 minimum elevation

	 NX
	 number of primary blocks in easting direction

	 NY
	 number of primary blocks in northing direction

	 NZ
	 number of primary blocks in elevation direction

	 DX
	 primary easting block dimension

	 DY
	 primary northing block dimension

	 DZ
	 primary vertical block dimension

	 MinDX
	 minimum sub-block easting dimension

	 MinDY
	 minimum sub-block northing dimension

	 MinDZ
	 minimum sub-block vertical dimension

	 RotV
	 Rotation angle of model about a vertical axis

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-37
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
    
 14.11.2 INTERPOLATION
  
 The reported resource relies on OK as the best unbiased linear estimator of grade. Other methods of interpolation, including ID2 and NN were employed for model validation purposes and are retained in the block models.
  
 14.12 MODEL VALIDATION
 
14.12.1 STATISTICS
  
 Mean metal grade values (silver, gold, and copper) for estimated blocks using OK and ID2 for the Avino Vein system domains are shown in Table 14.14. The two types of estimates are comparable particularly in the Main Zone, which is the largest domain.
  
 Mean metal grade values (silver and gold) for estimated blocks using OK and ID2 for the San Gonzalo Vein system domains are shown in Table 14.15. The two types of estimates are comparable particularly in the Main Zone, which is the largest domain. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-38
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Table 14.14 Avino Vein: Block Estimates and Composite Sample Grades
  
 	 Name
		 Block Count
	 Volume
	 Mean
	 Standard Deviation
	 Coefficient of Variation
	 Variance
	 Minimum
	 Lower Quartile
	 Median
	 Upper Quartile
	 Maximum

	 ET01
		 214,556
	 3,432,896
									
		 AgID
	 212,985
	 3,407,760
	 56.50427
	 42.14579
	 0.745887
	 1776.268
	 1.201617
	 28.77382
	 43.90088
	 72.9712
	 370.5751

		 AgOK
	 212,985
	 3,407,760
	 59.20095
	 39.1893
	 0.661971
	 1535.801
	 9.361378
	 33.50759
	 45.56231
	 74.67363
	 355.8367

		 AuID
	 212,985
	 3,407,760
	 0.562652
	 0.539689
	 0.959189
	 0.291265
	 0.010918
	 0.172333
	 0.421372
	 0.766501
	 4.907288

		 AuOK
	 212,985
	 3,407,760
	 0.57164
	 0.464617
	 0.81278
	 0.215869
	 0.028234
	 0.220051
	 0.456883
	 0.768961
	 4.004576

		 BiID
	 202,707
	 3,243,312
	 273.8597
	 221.7509
	 0.809725
	 49173.48
	 11.74154
	 119.1647
	 224.4432
	 362.0451
	 1497.116

		 BiSK
	 202,707
	 3,243,312
	 293.2462
	 105.9621
	 0.361342
	 11227.96
	 61.46036
	 228.1229
	 287.1853
	 323.2452
	 872.9588

		 CuID
	 212,985
	 3,407,760
	 4517.196
	 3110.363
	 0.688561
	 9674357
	 49.97433
	 2130.89
	 3815.382
	 6386.102
	 20392.87

		 CuOK
	 212,985
	 3,407,760
	 4810.081
	 2926.918
	 0.608497
	 8566848
	 400.1437
	 2365.239
	 4316.704
	 6622.1
	 15927.5

	 ET02
		 507,864
	 9,544,384
									
		 AgID
	 492,779
	 9,255,408
	 31.84309
	 28.54673
	 0.896481
	 814.9159
	 0.0025
	 12.72864
	 22.72692
	 40.70591
	 343.7041

		 AgOK
	 492,779
	 9,255,408
	 34.71374
	 26.40623
	 0.760685
	 697.2887
	 0.0025
	 17.67261
	 25.56588
	 42.20281
	 244.3945

		 AuID
	 492,779
	 9,255,408
	 0.311187
	 0.473356
	 1.521129
	 0.224066
	 0.0025
	 0.074127
	 0.153463
	 0.415556
	 17.04301

		 AuOK
	 492,779
	 9,255,408
	 0.326319
	 0.3998
	 1.225185
	 0.15984
	 0.0025
	 0.10485
	 0.211524
	 0.401245
	 8.118353

		 BiID
	 428,354
	 8,067,872
	 155.4189
	 148.0588
	 0.952643
	 21921.4
	 9.576074
	 38.26347
	 98.03881
	 246.2291
	 1307.027

		 BiSK
	 428,354
	 8,067,872
	 167.0552
	 66.54148
	 0.39832
	 4427.769
	 38.19252
	 129.0373
	 161.3242
	 182.3572
	 746.7772

		 CuID
	 492,779
	 9,255,408
	 3258.593
	 2627.984
	 0.806478
	 6906300
	 0.005
	 1326.421
	 2506.15
	 4610.873
	 19244.12

		 CuOK
	 492,779
	 9,255,408
	 3592.563
	 2457.116
	 0.683945
	 6037417
	 0.005
	 1534.222
	 3182.542
	 5022.71
	 18973.85

	 ET03
		 114,073
	 1,825,168
									
		 AgID
	 102,671
	 1,642,736
	 48.62851
	 37.73484
	 0.775982
	 1423.918
	 0.390887
	 21.06595
	 39.19197
	 62.69655
	 304.0255

		 AgOK
	 102,671
	 1,642,736
	 50.74072
	 34.27285
	 0.675451
	 1174.628
	 7.22461
	 27.06347
	 40.3004
	 64.34858
	 231.007

		 AuID
	 102,671
	 1,642,736
	 0.66795
	 0.706952
	 1.058391
	 0.499781
	 0.005689
	 0.198926
	 0.472196
	 0.910943
	 7.269951

		 AuOK
	 102,671
	 1,642,736
	 0.761534
	 0.642707
	 0.843963
	 0.413072
	 0.028222
	 0.273425
	 0.584976
	 1.1251
	 6.563045

	 table continues...

 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 
 	 
	14-39
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 
 	 Name
	  
	 Block Count
	 Volume
	 Mean
	 Standard Deviation
	 Coefficient of Variation
	 Variance
	 Minimum
	 Lower Quartile
	 Median
	 Upper Quartile
	 Maximum

		 BiID
	 99,434
	 1,590,944
	 129.3677
	 90.14979
	 0.696849
	 8126.984
	 12.20713
	 60.96151
	 108.7289
	 174.5199
	 566.3663

		 BiSK
	 99,434
	 1,590,944
	 164.3583
	 47.33722
	 0.288012
	 2240.812
	 61.3978
	 138.1337
	 161.2102
	 186.5427
	 361.2972

		 CuID
	 102,671
	 1,642,736
	 2773.444
	 2030.578
	 0.73215
	 4123247
	 12.50812
	 1182.667
	 2359.561
	 3941.44
	 13297.75

		 CuOK
	 102,671
	 1,642,736
	 2889.084
	 1886.902
	 0.653114
	 3560400
	 229.3093
	 1412.085
	 2441.275
	 4091.941
	 12169.27

	 ET04
		 106,954
	 1,760,864
									
		 AgID
	 106,627
	 1,755,632
	 38.4482
	 33.51055
	 0.871577
	 1122.957
	 0.24565
	 16.78296
	 30.77729
	 50.08237
	 396.5642

		 AgOK
	 106,627
	 1,755,632
	 38.50961
	 25.96065
	 0.674134
	 673.9553
	 2.842124
	 21.04674
	 31.07316
	 48.54896
	 181.6084

		 AuID
	 106,627
	 1,755,632
	 0.370349
	 0.389018
	 1.050409
	 0.151335
	 0.003582
	 0.12188
	 0.245086
	 0.469858
	 3.015903

		 AuOK
	 106,627
	 1,755,632
	 0.378864
	 0.362579
	 0.957015
	 0.131463
	 0.010456
	 0.133089
	 0.242665
	 0.50792
	 2.469631

		 BiID
	 102,107
	 1,683,312
	 101.8013
	 112.1971
	 1.102118
	 12588.19
	 10.43113
	 28.31177
	 46.12323
	 145.8481
	 741.5721

		 BiSK
	 102,107
	 1,683,312
	 101.7994
	 39.78284
	 0.390796
	 1582.674
	 44.78568
	 74.36295
	 90.86473
	 116.3718
	 371.8611

		 CuID
	 106,627
	 1,755,632
	 1819.38
	 1578.8
	 0.867768
	 2492608
	 14.30932
	 691.1243
	 1295.082
	 2499.148
	 11353.82

		 CuOK
	 106,627
	 1,755,632
	 2003.415
	 1544.183
	 0.770775
	 2384500
	 96.7775
	 816.548
	 1469.548
	 2793.133
	 9221.055

	 ET_F01
		 271,195
	 4,914,480
									
		 AgID
	 243,038
	 4,434,208
	 37.97022
	 33.11668
	 0.872175
	 1096.715
	 0.163562
	 16.4382
	 27.28946
	 47.99248
	 281.6229

		 AgOK
	 243,038
	 4,434,208
	 38.6346
	 29.05144
	 0.751954
	 843.9863
	 2.970375
	 17.44555
	 29.87203
	 50.76432
	 213.6942

		 AuID
	 243,038
	 4,434,208
	 0.222441
	 0.2754
	 1.238081
	 0.075845
	 0.003083
	 0.064267
	 0.127799
	 0.274327
	 3.274574

		 AuOK
	 243,038
	 4,434,208
	 0.225472
	 0.257049
	 1.140052
	 0.066074
	 0.010781
	 0.070028
	 0.136977
	 0.279877
	 2.490183

		 BiID
	 207,117
	 3,833,680
	 230.3916
	 212.7928
	 0.923614
	 45280.77
	 11.88858
	 73.50036
	 144.6266
	 319.5632
	 1443.169

		 BiSK
	 207,117
	 3,833,680
	 248.2066
	 92.1754
	 0.371366
	 8496.304
	 96.47452
	 185.6345
	 229.8909
	 277.3684
	 740.4272

		 CuID
	 243,038
	 4,434,208
	 3554.94
	 2299.443
	 0.64683
	 5287438
	 31.55641
	 2061.392
	 2958.04
	 4523.835
	 22043.45

		 CuOK
	 243,038
	 4,434,208
	 3641.659
	 2100.928
	 0.576915
	 4413897
	 328.3324
	 2217.119
	 3002.569
	 4620.21
	 14936.79

	 table continues...

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-40
	

	 

 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 
 	 Name
	  
	 Block Count
	 Volume
	 Mean
	 Standard Deviation
	 Coefficient of Variation
	 Variance
	 Minimum
	 Lower Quartile
	  
 Median
	 Upper Quartile
	 Maximum

	 ET_F02
		 40,275
	 690,032
									
		 AgID
	 40,265
	 689,872
	 52.19862
	 26.69603
	 0.511432
	 712.6782
	 12.05338
	 34.73363
	 45.14881
	 62.787
	 188.5445

		 AgOK
	 40,265
	 689,872
	 49.57832
	 17.65259
	 0.356055
	 311.614
	 12.65507
	 38.02701
	 48.0347
	 59.2699
	 110.9772

		 AuID
	 40,265
	 689,872
	 0.662454
	 0.229356
	 0.346221
	 0.052604
	 0.5025
	 0.506441
	 0.525422
	 0.763282
	 1.983309

		 AuOK
	 40,265
	 689,872
	 0.653697
	 0.212123
	 0.324497
	 0.044996
	 0.502189
	 0.507364
	 0.537299
	 0.740682
	 1.881175

		 BiID
	 31,814
	 554,656
	 201.0754
	 32.80216
	 0.163134
	 1075.982
	 103.0188
	 177.984
	 206.9256
	 228.0357
	 249.8886

		 BiSK
	 36,759
	 633,776
	 288.8504
	 25.10055
	 0.086898
	 630.0376
	 198.0975
	 273.0043
	 287.9646
	 307.3484
	 335.6711

		 CuID
	 40,265
	 689,872
	 4434.437
	 1744.723
	 0.393448
	 3044057
	 1689.886
	 3129.437
	 4025.576
	 5244.987
	 11553.27

		 CuOK
	 40,265
	 689,872
	 4367.739
	 1678.838
	 0.384372
	 2818498
	 1253.813
	 3181.401
	 4043.017
	 5187.923
	 11624.21

	 ET_F03
		 11,594
	 185,504
									
		 AgID
	 11,546
	 184,736
	 82.35333
	 59.1898
	 0.71873
	 3503.433
	 1.775786
	 35.9265
	 59.41319
	 130.0014
	 266.9562

		 AgOK
	 11,546
	 184,736
	 83.14771
	 50.03666
	 0.60178
	 2503.668
	 21.20375
	 39.83353
	 62.87401
	 129.6729
	 192.9825

		 AuID
	 11,546
	 184,736
	 1.002813
	 0.337583
	 0.336635
	 0.113962
	 0.05494
	 0.75463
	 0.929803
	 1.206004
	 2.025203

		 AuOK
	 11,546
	 184,736
	 1.000492
	 0.285504
	 0.285364
	 0.081513
	 0.407239
	 0.786757
	 0.933976
	 1.145114
	 1.871305

		 BiID
	 10,335
	 165,360
	 360.476
	 82.9417
	 0.230089
	 6879.325
	 204.7675
	 288.9789
	 350.7106
	 432.4433
	 539.0161

		 BiSK
	 10,335
	 165,360
	 341.2246
	 25.63186
	 0.075117
	 656.9921
	 285.9362
	 321.7267
	 339
	 356.848
	 425.5329

		 CuID
	 11,546
	 184,736
	 4758.071
	 2681.015
	 0.563467
	 7187839
	 138.6311
	 2456.536
	 4195.317
	 7177.422
	 12955.05

		 CuOK
	 11,546
	 184,736
	 4883.218
	 2094.204
	 0.428857
	 4385689
	 1674.548
	 3103.441
	 4707.26
	 6670.3
	 10347.27

	 ET_H01
		 15,201
	 243,216
									
		 AgID
	 14,825
	 237,200
	 27.31028
	 10.47496
	 0.383554
	 109.7247
	 9.797392
	 18.6482
	 27.43106
	 31.45853
	 113.5887

		 AgOK
	 14,825
	 237,200
	 29.41767
	 10.34728
	 0.351737
	 107.0662
	 12.34508
	 21.99483
	 30.03462
	 34.56049
	 82.88335

		 AuID
	 14,825
	 237,200
	 0.087748
	 0.045359
	 0.516921
	 0.002057
	 0.02951
	 0.050875
	 0.08147
	 0.117178
	 0.328735

		 AuOK
	 14,825
	 237,200
	 0.088095
	 0.045035
	 0.511208
	 0.002028
	 0.026082
	 0.050634
	 0.086376
	 0.121477
	 0.420761

		 BiID
	 14,277
	 228,432
	 66.14345
	 36.57493
	 0.552964
	 1337.726
	 25.09649
	 40.96105
	 55.41596
	 76.24025
	 209.9251

	 table continues...

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-41
	

	 

 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 
 	 Name
	  
	 Block Count
	 Volume
	 Mean
	 Standard Deviation
	 Coefficient of Variation
	 Variance
	 Minimum
	 Lower Quartile
	 Median
	 Upper Quartile
	 Maximum

		 BiSK_1
	 14,277
	 228,432
	 64.92759
	 6.3128
	 0.097228
	 39.85145
	 51.68139
	 61.39423
	 64.64717
	 66.96756
	 116.5143

		 CuID
	 14,825
	 237,200
	 4268.246
	 1901.275
	 0.445446
	 3614845
	 792.5036
	 2677.274
	 4447.885
	 5477.026
	 12697.92

		 CuOK
	 14,825
	 237,200
	 4271.163
	 1759.062
	 0.411846
	 3094298
	 1833.73
	 2851.127
	 3882.663
	 5156.793
	 12199.01

	 ET_H02
		 82,888
	 1,326,208
									
		 AgID
	 71,694
	 1,147,104
	 24.60867
	 22.04957
	 0.896008
	 486.1835
	 0.024228
	 8.362851
	 19.31954
	 34.32365
	 209.8928

		 AgOK
	 71,694
	 1,147,104
	 23.9677
	 17.35838
	 0.72424
	 301.3134
	 1.366853
	 10.58387
	 20.01448
	 32.46044
	 120.6774

		 AuID
	 71,694
	 1,147,104
	 0.432094
	 0.352074
	 0.814808
	 0.123956
	 0.002875
	 0.216183
	 0.36253
	 0.57718
	 3.799954

		 AuOK
	 71,694
	 1,147,104
	 0.455899
	 0.264734
	 0.580686
	 0.070084
	 0.011797
	 0.262143
	 0.403956
	 0.601673
	 1.885537

		 BiID
	 73,529
	 1,176,464
	 126.2546
	 76.61307
	 0.606814
	 5869.562
	 13.19804
	 73.2408
	 112.3863
	 158.5353
	 639.5893

		 BiSK
	 73,529
	 1,176,464
	 118.6999
	 34.17935
	 0.287947
	 1168.228
	 39.06369
	 98.46386
	 114.0838
	 132.9009
	 347.9956

		 CuID
	 71,694
	 1,147,104
	 1112.216
	 791.763
	 0.711879
	 626888.7
	 1.340194
	 633.9509
	 966.964
	 1387.285
	 6668.2

		 CuOK
	 71,694
	 1,147,104
	 1080.95
	 592.4864
	 0.548116
	 351040.2
	 122.8639
	 727.079
	 941.2472
	 1293.039
	 4641.244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-42
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Table 14.15 San Gonzalo Vein: Block Estimates and Composite Sample Grades
  
 	 Name
		 Block Count
	 Volume
	 Mean
	 Std. Dev.
	 CV
	 Variance
	 Minimum
	 L. Quartile
	 Median
	 U. Quartile
	 Maximum

	 SG1
		 356842
	 568531.25
									
		 Ag_ID
	 318859
	 509182.81
	 159.86
	 195.31
	 1.22
	 38144.29
	 2.30
	 37.33
	 94.93
	 211.95
	 3946.41

		 Ag_OK
	 318859
	 509182.81
	 156.18
	 181.65
	 1.16
	 32995.31
	 3.04
	 42.33
	 100.38
	 203.94
	 2301.70

		 Au_ID
	 271130
	 434606.25
	 0.81
	 1.19
	 1.47
	 1.41
	 0.01
	 0.19
	 0.41
	 0.99
	 28.14

		 Au_OK
	 271130
	 434606.25
	 0.81
	 1.23
	 1.51
	 1.50
	 0.02
	 0.19
	 0.41
	 1.01
	 23.15

	 SG2
		 47936
	 74900.00
									
		 Ag_ID
	 36088
	 56387.50
	 38.81
	 30.67
	 0.79
	 940.36
	 5.98
	 21.94
	 31.47
	 44.11
	 624.41

		 Ag_OK
	 36088
	 56387.50
	 47.95
	 33.71
	 0.70
	 1136.40
	 10.92
	 20.70
	 37.65
	 69.21
	 257.38

		 Au_ID
	 24189
	 37795.31
	 0.31
	 0.27
	 0.85
	 0.07
	 0.05
	 0.09
	 0.16
	 0.50
	 1.16

		 Au_OK
	 24189
	 37795.31
	 0.33
	 0.24
	 0.73
	 0.06
	 0.05
	 0.11
	 0.24
	 0.50
	 1.06

	 SG3
		 10025
	 15664.06
									
		 Ag_ID
	 5840
	 9125.00
	 78.37
	 23.01
	 0.29
	 529.47
	 22.23
	 65.38
	 79.68
	 92.21
	 200.60

		 Ag_OK
	 9693
	 15145.31
	 80.66
	 24.89
	 0.31
	 619.35
	 29.95
	 70.31
	 75.23
	 82.29
	 249.26

		 Au_ID
	 4535
	 7085.94
	 0.40
	 0.18
	 0.44
	 0.03
	 0.18
	 0.35
	 0.37
	 0.39
	 1.67

		 Au_OK
	 4535
	 7085.94
	 0.40
	 0.17
	 0.43
	 0.03
	 0.22
	 0.32
	 0.34
	 0.38
	 1.24

	 SG4
		 122062
	 190721.88
									
		 Ag_ID
	 27942
	 43659.38
	 255.74
	 179.66
	 0.70
	 32277.38
	 27.03
	 105.08
	 179.65
	 416.42
	 1466.25

		 Ag_OK
	 27942
	 43659.38
	 263.03
	 174.03
	 0.66
	 30285.34
	 33.52
	 100.17
	 239.88
	 402.12
	 821.71

		 Au_ID
	 13551
	 21173.44
	 0.84
	 0.56
	 0.67
	 0.32
	 0.12
	 0.46
	 0.68
	 1.06
	 5.07

		 Au_OK
	 13551
	 21173.44
	 0.91
	 0.61
	 0.67
	 0.37
	 0.21
	 0.47
	 0.64
	 1.49
	 2.75

	 SG5
		 47581
	 74345.31
									
		 Ag_ID
	 24108
	 37668.75
	 98.25
	 80.16
	 0.82
	 6426.00
	 14.83
	 19.64
	 80.86
	 170.84
	 326.19

		 Ag_OK
	 24108
	 37668.75
	 94.40
	 64.34
	 0.68
	 4139.40
	 13.57
	 22.95
	 93.00
	 156.26
	 259.26

		 Au_ID
	 14339
	 22404.69
	 0.68
	 0.63
	 0.93
	 0.40
	 0.06
	 0.12
	 0.43
	 1.23
	 2.42

		 Au_OK
	 14339
	 22404.69
	 0.67
	 0.57
	 0.85
	 0.33
	 0.09
	 0.14
	 0.48
	 1.29
	 2.02

	 SG6
		 100563
	 157129.69
									
		 Ag_ID
	 45332
	 70831.25
	 47.82
	 44.86
	 0.94
	 2012.74
	 4.21
	 10.78
	 29.16
	 77.66
	 197.34

		 Ag_OK
	 45332
	 70831.25
	 48.69
	 28.05
	 0.58
	 786.74
	 3.76
	 22.14
	 48.89
	 68.46
	 123.33

		 Au_ID
	 26683
	 41692.19
	 0.30
	 0.31
	 1.04
	 0.10
	 0.01
	 0.05
	 0.16
	 0.49
	 1.57

		 Au_OK
	 26683
	 41692.19
	 0.39
	 0.28
	 0.73
	 0.08
	 0.01
	 0.11
	 0.37
	 0.66
	 0.94

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-43
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Mean values for estimated blocks and composites used for the estimation in the oxide tailings model are shown in Table 14.16. The block estimates show lower silver grades than the composites due to the declustering effect of kriging and the large numbers of relatively high-grade composites in the development sampling.
  
 Table 14.16 Oxide Tailings: Block Estimates and Composite Sample Grades
  
 	 Estimator
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)
	 Pb
(%)
	 Zn
(%)

	 Ordinary Kriging
	 93.24
	 0.48
	 0.130
	 0.950
	 0.150

	 Nearest Neighbour
	 92.56
	 0.48
	 0.129
	 0.930
	 0.150

	 Inverse Distance
	 93.94
	 0.48
	 0.128
	 0.949
	 0.151

	 Composites
	 96.48
	 0.46
	 0.125
	 0.958
	 0.153

	 Number of Blocks
	 45,607
	 -
	 -
	 -
	 -

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 14.12.2 SECTIONS
  
 The spatial pattern of metal grade distributions for the Avino Vein is shown in Figure 14.24 to Figure 14.27, inclusive. Figure 14.24 shows a typical transverse section illustrating the interaction between the secondary (NE1) zone developed on the footwall side of the main the Avino Vein system. Figure 14.25 to Figure 14.27 are longitudinal sections viewed from the south showing silver, gold, and copper grades with high-grade zones tending to plunge at about 40° to the west (Horner 2017).
  
 Figure 14.24 Avino Vein: Typical Transverse Section, Looking Northwest through Drillhole ET07-10, Showing the Block Model Centroids Colour Coded by Silver Grade
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-44
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Figure 14.25 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Silver Grade
  
 
 Source: Red Pennant (2020)
  
 Figure 14.26 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Gold Grade
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-45
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.27 Avino Vein: Longitudinal Section Showing the Block Model Colour Coded by Copper Grade
  
 
 Source: Red Pennant (2020)
  
 The spatial pattern of metal grade distributions for the San Gonzalo Vein is shown in Figure 14.28 to Figure 14.31, inclusive. Figure 14.28 shows a typical transverse section illustrating the relatively narrow San Gonzalo Vein and the Anjelica Vein (SG4). Figure 14.29 to Figure 14.31 are longitudinal sections viewed from the south showing silver, gold, and copper grades with high-grade zones with a subhorizontal tendency despite some local steepening. It has become clear by continued underground mapping and sampling that the San Gonzalo mineralization is depth-constrained within a 250 m interval, probably due to pressure constraining boiling levels during the residence time of the mineralizing fluids.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-46
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.28 San Gonzalo Vein: Typical Transverse Section, Looking East Aligned Along Drillhole SG1115 Showing the Block Model Centroids Colour Coded by Silver Grade
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-47
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
     
 Figure 14.29 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Colour Coded by Silver Grade
   
 
 Source: Red Pennant (2020)
  
 Figure 14.30 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Color Coded by Gold Grade
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-48
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.31 San Gonzalo Vein: Longitudinal Section Showing the Block Model Centroids Colour Coded by Silver Equivalent
  
 
 Source: Red Pennant (2020)
  
 14.12.3 SWATH PLOTS
  
 Swath plots were generated for the underground vein deposits to compare trends in the estimated grades for the three estimation methods (OK, ID, and NN) in the block models to the source sampling data. The estimation methods for comparison are OK (green), NN (red), and ID2 (blue) block estimates for silver, gold, and copper, and averages were generated for slices oriented parallel to the eastings, northings, and elevations. The widths of the swaths (or slices) are 20 m for eastings and 10 m for elevations, and the number of blocks is plotted as histograms. The average of assay composites is shown as a black line.
  
 Figure 14.32 through Figure 14.37 display the swath plots for the Avino deposit, comparing block model estimates and sample grades.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-49
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.32 Avino Vein, Swath Plot for Silver, Eastings
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-50
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.33 Avino Vein, Swath Plot for Gold Eastings
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-51
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.34 Avino Vein, Swath Plot for Copper, Eastings
  
 
 Source: Red Pennant (2020)
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 
 	 
	14-52
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.35 Avino Vein, Swath Plot for Silver, Elevation
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-53
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Figure 14.36 Avino Vein, Swath Plot for Gold, Elevation
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-54
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
     
 Figure 14.37 Avino Vein, Swath Plot for Copper, Elevation
  
 
 Source: Red Pennant (2020)
  
 Figure 14.38 through Figure 14.43 display the swath plots for San Gonzalo deposit, comparing block model estimates and sample grades.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-55
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.38 San Gonzalo Vein, Swath Plot for Silver, Eastings
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-56
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.39 San Gonzalo Vein, Swath Plot for Silver, Northings
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-57
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.40 San Gonzalo Vein, Swath Plot for Silver, Elevation
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-58
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.41 San Gonzalo Vein, Swath Plot for Gold, Eastings
    
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-59
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.42 San Gonzalo Vein, Swath Plot for Gold, Northings
   
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 
 	 
	14-60
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.43 San Gonzalo Vein, Swath Plot for Gold, Elevation
  
 
 Source: Red Pennant (2020)
  
 Figure 14.40 and Figure 14.43 illustrate the restricted vertical interval within which the pressure conditions for silver and gold grade mineralization were operative in the San Gonzalo mineralization event. Figure 14.36 shows a similar pattern for gold in the Avino Vein. However, Figure 14.35 and Figure 14.37 indicate that the silver and copper mineralization window for the Avino Vein system is more persistent with depth.
  
 Figure 14.44 through Figure 14.49 display the swath plots for the oxide tailings deposit, comparing block model estimates and sample grades.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-61
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.44 Oxide Tailings Deposit, Swath Plot for Silver, Easting
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-62
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.45 Oxide Tailings Deposit, Swath Plot for Gold, Easting
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-63
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.46 Oxide Tailings Deposit, Swath Plot for Silver, Northing
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-64
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
    
 Figure 14.47 Oxide Tailings Deposits, Swath Plot for Gold, Northing
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-65
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
 
      
 Figure 14.48 Oxide Tailings Deposit, Swath Plot for Silver, Elevation
  
 
 Source: Red Pennant (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-66
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 Figure 14.49 Oxide Tailings Deposit, Swath Plot for Gold, Elevation
  
 
 Source: Red Pennant (2020)
  
 The swath plot comparisons show reasonable correspondence between block estimates and sampling data. As expected, the OK and ID estimates show less extreme values than the NN estimates, particularly near the edges of the models.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-67
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
 
      
 14.13 MINERAL RESOURCE CLASSIFICATION
  
 14.13.1 INTRODUCTION
  
 CIM Definition Standards (adopted by the CIM Council on May 10, 2014) for reporting on Mineral Resources are stated below:
  
 Mineral Resource
  
 Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource. 
  
 A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. 
  
 The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. 
  
 Material of economic interest refers to diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals. 
  
 The term Mineral Resource covers mineralization and natural material of intrinsic economic interest which has been identified and estimated through exploration and sampling and within which Mineral Reserves may subsequently be defined by the consideration and application of Modifying Factors. The phrase ‘reasonable prospects for eventual economic extraction’ implies a judgment by the Qualified Person in respect of the technical and economic factors likely to influence the prospect of economic extraction. The Qualified Person should consider and clearly state the basis for determining that the material has reasonable prospects for eventual economic extraction. Assumptions should include estimates of cutoff grade and geological continuity at the selected cut-off, metallurgical recovery, smelter payments, commodity price or product value, mining and processing method and mining, processing and general and administrative costs. The Qualified Person should state if the assessment is based on any direct evidence and testing. 
  
 Interpretation of the word ‘eventual’ in this context may vary depending on the commodity or mineral involved. For example, for some coal, iron, potash deposits and other bulk minerals or commodities, it may be reasonable to envisage ‘eventual economic extraction’ as covering time periods in excess of 50 years. However, for many gold deposits, application of the concept would normally be restricted to perhaps 10 to 15 years, and frequently to much shorter periods of time.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-68
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Inferred Mineral Resource 
  
 An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. 
  
 An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. 
  
 An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models of developed mines. Inferred Mineral Resources can only be used in economic studies as provided under NI 43-101. 
  
 There may be circumstances, where appropriate sampling, testing, and other measurements are sufficient to demonstrate data integrity, geological and grade/quality continuity of a Measured or Indicated Mineral Resource, however, quality assurance and quality control, or other information may not meet all industry norms for the disclosure of an Indicated or Measured Mineral Resource. Under these circumstances, it may be reasonable for the Qualified Person to report an Inferred Mineral Resource if the Qualified Person has taken steps to verify the information meets the requirements of an Inferred Mineral Resource. 
  
 Indicated Mineral Resource 
  
 An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. 
  
 Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. 
  
 An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve. 
  
 Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization. The Qualified Person must recognize the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-Feasibility Study which can serve as the basis for major development decisions. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	14-69
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 Measured Mineral Resource 
  
 A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. 
  
 Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. 
  
 A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve. 
  
 Mineralization or other natural material of economic interest may be classified as a Measured Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such that the tonnage and grade or quality of the mineralization can be estimated to within close limits and that variation from the estimate would not significantly affect potential economic viability of the deposit. This category requires a high level of confidence in, and understanding of, the geology and controls of the mineral deposit. 
  
 The Avino resource has estimates for silver, gold, and copper. Silver, gold, and copper are recovered from the Avino material and gold and copper are included in the silver equivalent calculation. The bismuth grade has been estimated into the block model for guidance as a potential smelter penalty but is not included in the Mineral Resource statement. 
  
 The San Gonzalo resource estimates only silver and gold. 
  
 Resource classification for both Avino and San Gonzalo is in part based on kriging variance, geological considerations, and distance of estimated blocks from data.
  
 The 2014 CIM Definition Standards of indicated Mineral Resources includes the phrase that “quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit”.
  
 Quantitative criteria used for the classification of the Mineral Resources are summarized in Table 14.17. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	14-70
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 In the opinion of the QP, the current information available for estimating in situ density is insufficient to support localized (block) estimates to the same level of detail as the metal grades. However, the current data shows that the wall-rock and vein material of the Avino and San Gonzalo deposits have small differences (density difference of vein to wall-rock less than 2%) and low variability within the veins as measured by the coefficient of variation (less than 0.08, see Table 14.6). The variability of the metal grades shows levels of variability orders of magnitude higher as measured by the coefficient of variation (between 0.4 and 4.4, see Table 14.3). It would be ideal to have density measurements sufficient for local block estimation. However, potential error resulting from the use of a global density mean is likely to be less than 2%. No significant density anomalies have been reported during the current phase of production at the Avino property. Based on the data from the Avino and San Gonzalo Veins, grade is a much more material risk factor than the density information. The QP considers the restricted amount of density information to be less material and significant than the metal grade variability. The QP used the kriging variance of the silver grade estimates as the main factor for resource classification. 
  
 The QP has also noted that, despite the lack of metallurgical bulk sampling, there have been several years of metal production from ore of all operating levels on the Avino and San Gonzalo Veins using current processing facilities and that there has been no report of unforeseen metallurgical recovery issues. The QP considers that this production history mitigates the lack of a formal bulk sampling program or density data and has allowed Mineral Resources to be defined with sufficient confidence to support detailed mine planning and evaluation of the economic viability of the deposit. 
  
 Table 14.17 Criteria for Classification of Underground Mineral Resources
  
 		 Avino

	  
	 Measured:
	 Ag_kvar <=0.75 (up to 20 m from sampled development)

	  
	 Indicated:
	 Ag_kvar <=0.50 (35 m from sampling, contiguous with development and measured)

	  
	 Inferred:
	 Up to 200 m from sampling data (with demonstrated vein continuity)

		 San Gonzalo

	  
	 Measured:
	 Ag_kvar <=0.18 (up to 15 m from sampled development)

	  
	 Indicated:
	 Ag_kvar <=0.24 (up to 30 m from sampling, contiguous with development and measured)

	  
	 Inferred:
	 Up to 200 m from at least 3 holes data (with demonstrated vein continuity)

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	14-71
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 14.14 MINERAL RESOURCE TABULATION
  
 14.14.1 CUT-OFFS AND SILVER EQUIVALENT CALCULATIONS
  
 The San Gonzalo and Avino reported Mineral Resources are tabulated on the basis of AgEQ cut-offs (Table 14.18).
  
 Table 14.18 Silver Equivalent Based Metal Prices and Operational Recovery Parameters
    
 	 Metal
	 Price
	 Unit
	 Recovery
(%)
	 Rev.
(US$/t)
	 AgEQ
per Grade
Unit

	 San Gonzalo Vein System

	 Ag
	 17.50
	 US$/oz
	 83
	 0.52
	 1.00

	 Au
	 1,300.00
	 US$/oz
	 73
	 29.34
	 56.38

	 Avino Vein System

	 Ag
	 18.50
	 US$/oz
	 86
	 0.54
	 1.00

	 Au
	 1,450.00
	 US$/oz
	 75
	 30.14
	 55.90

	 Cu
	 3.00
	 US$/lb
	 85
	 39.35
	 72.99

	 Avino Oxide Tailings

	 Ag
	 19.50
	 US$/oz
	 73
	 0.46
	 1.00

	 Au
	 1,250.00
	 US$/oz
	 79
	 31.75
	 69.37

 
 
 
 
 
 
 
 
  
 Silver equivalent was calculated from metal grade estimates using operational recovery parameters and the metal prices based on price trends over the last three years. The gold price used is US$1,450/oz for the Avino and US$1,300/oz for the San Gonzalo Veins and US$1,300/oz for the oxide tailings. The silver price used is US$18.50/oz for the Avino and US$17.50 for the San Gonzalo Veins and US$19.50/oz for the oxide tailings. The copper price used is US$3.00/lb. Copper was only used in the equivalent calculation for the Avino system, the only mineralization where the copper grade justifies extraction.
  
 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-72
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 14.14.2 GRADE-TONNAGE TABLES
  
 Table 14.19to Table 14.26inclusive, provide a summary of the grade and tonnage for the Avino, San Gonzalo, and oxide tailings models at a series of cutoffs. These tables show the grade and tonnages for mineralized material at levels of confidence (see Table 14.16) equivalent to Measured, Indicated, and Inferred for the three deposits. Each table contains a grey-highlighted line that represents the cut-off selected for the Mineral Resource summarized in Table 14.1.
  
 These tables give an indication of the sensitivity of the deposits to cut-off grade.
  
 Table 14.19 Avino Vein (ET Mine) – High Confidence
     
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)

	 40
	 5,793,322
	 108
	 67
	 0.56
	 0.54

	 50
	 5,309,107
	 113
	 70
	 0.59
	 0.54

	 60
	 4,763,414
	 120
	 74
	 0.63
	 0.55

	 70
	 4,259,758
	 126
	 78
	 0.68
	 0.56

	 80
	 3,758,375
	 133
	 81
	 0.72
	 0.57

 
 
 
 
 
 
 
 
   
 Table 14.20 Avino Vein– Medium Confidence
  
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)

	 40
	 19,769,731
	 90
	 51
	 0.56
	 0.38

	 50
	 16,627,744
	 99
	 55
	 0.62
	 0.39

	 60
	 13,886,947
	 107
	 59
	 0.68
	 0.41

	 70
	 11,553,779
	 116
	 64
	 0.74
	 0.42

	 80
	 9,469,515
	 125
	 69
	 0.8
	 0.36

 
 
 
 
 
 
 
 
   
 Table 14.21 Avino Vein– Low Confidence
  
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)
	 Cu
(%)

	 40
	 8,674,708
	 77
	 43
	 0.48
	 0.31

	 50
	 6,654,826
	 87
	 47
	 0.56
	 0.33

	 60
	 5,234,920
	 95
	 51
	 0.64
	 0.34

	 70
	 4,154,222
	 103
	 54
	 0.71
	 0.36

	 80
	 3,280,515
	 111
	 58
	 0.76
	 0.37

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	14-73
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
   
 Table 14.22 San Gonzalo Vein – High Confidence
  
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)

	 90
	 360,000
	 338.8
	 267.5
	 1.43

	 110
	 320,000
	 366.6
	 290.1
	 1.53

	 130
	 290,000
	 396.8
	 314.4
	 1.65

	 150
	 260,000
	 425.4
	 336.8
	 1.77

	 170
	 230,000
	 456.1
	 361.3
	 1.90

 
 
 
 
 
 
 
 
   
 Table 14.23 San Gonzalo – Medium Confidence
  
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)

	 90
	 330,000
	 265.4
	 213.5
	 1.04

	 110
	 280,000
	 293.9
	 236.4
	 1.15

	 130
	 240,000
	 319.1
	 256.8
	 1.25

	 150
	 220,000
	 336.6
	 270.9
	 1.31

	 170
	 190,000
	 360.2
	 290.2
	 1.40

 
 
 
 
 
 
 
 
   
 Table 14.24 San Gonzalo – Low Confidence
  
 	 Cut-off
AuEQ
(g/t)
	 Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)

	 90
	 160,000
	 220.7
	 184.6
	 0.72

	 110
	 140,000
	 245.3
	 204.9
	 0.81

	 130
	 120,000
	 262.3
	 219.2
	 0.86

	 150
	 110,000
	 276.9
	 231.1
	 0.92

	 170
	 90,000
	 293.0
	 244.7
	 0.96

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
       
 	 
	14-74
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 14.25 Oxide Tailings – Medium Confidence
  
 	 Cut-off
AgEQ
(g/t)
	 Million Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)

	 40
	 1.12
	 124
	 89
	 0.42

	 50
	 1.12
	 124
	 89
	 0.42

	 60
	 1.12
	 124
	 89
	 0.42

	 70
	 1.11
	 125
	 89
	 0.42

	 80
	 1.11
	 125
	 89
	 0.42

 
 
 
 
 
 
 
 
   
 Table 14.26 Oxide Tailings – Low Confidence
  
 	 Cut-off
AgEQ
(g/t)
	 Million Tonnes
(t)
	 AgEQ
(g/t)
	 Ag
(g/t)
	 Au
(g/t)

	 40
	 1.23
	 125
	 85
	 0.47

	 50
	 1.23
	 125
	 85
	 0.47

	 60
	 1.23
	 125
	 85
	 0.47

	 70
	 1.23
	 125
	 85
	 0.47

	 80
	 1.23
	 125
	 85
	 0.48

 
 
 
 
 
 
 
 
   
 14.15 SULPHIDE TAILINGS
  
 There is no current resource estimate for the sulphide tailings (the upper bench of the tailings heap shown in Figure 14.15).
  
 No Mineral Resource for the sulphide tailings is disclosed in this Technical Report.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	14-75
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
  
 
 	15.0 MINERAL RESERVE ESTIMATES

 
 
 
  
 There are currently no Mineral Reserves reported on the Property and Project.
  
  
  
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	15-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	16.0 MINING METHODS

 
 
 
    
 The information provided in the following subsections of this Technical Report should not be considered an FS, as the economics and technical viability of the Project have not been demonstrated at this time. The information listed in this section of the Technical Report is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have any economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there are no certainties that the conclusions or results reported in this Technical Report will be realized. Mineral Resources that are not Mineral Reserves do not demonstrate economic viability.
  
 The QP has not conducted a site visit to the Property as of the Report effective date. The information presented below are excerpts summarized from a previous technical report (Tetra Tech 2018) but revised with more recent press release material to reflect the mining activities at the Project site. 
  
 16.1 MINING ACTIVITIES AT THE AVINO PROPERTY
  
 In early April of 2020, Avino suspended mining-related activities at the Project site due to the COVID-19 pandemic. In early June of 2020, the company was provided authorization by the Mexican Secretariat of Health to commence regular operational activities in an orderly, gradual, and cautious manner.
  
 Mine operation activities were later interrupted up to the end of the third quarter of 2020, until Avino reached an agreement with the union (Avino 2020e). Figure 16.1 illustrates the extent of historic and present mining activities at the Project site.
  
 Figure 16.1 Isometric View of the Avino Property, the Elena Tolosa Mine (left) and San Gonzalo Mine (Right)
   
 	  
	 

 
 
 
 
 
 
 
 
 
 
 
  
    Source: Avino (2020g)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	16-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 16.2 AVINO VEIN
  
 Avino has not based its production decisions on the Avino Vein with any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. The information presented in this section was based on excerpts summarized from a previous technical report (Tetra Tech 2018) and revised with more recent press release material to reflect the mining activities at the Project site.
  
 Avino is currently mining on the Avino Vein using sublevel stoping and room and pillar mining methods. Levels are spaced 20 m apart and accessed via crosscuts from the main ramp (Tetra Tech 2018). Access into the Avino Vein is through the ET Mine.
  
 The room and pillar mining method is used on each sublevel to mine out each level to the extents of the mineralization. Long holes are then drilled between the sublevels to facilitate blasting of the mineralization between the sublevels (Tetra Tech 2018). In 2020, Avino reported it will transition from development-style mining to full‐scale production mining to feed all four circuits using the long hole retreat mining method, which is anticipated to incur lower mining costs.
  
 Avino has not yet developed a life of mine (LOM) plan for the Mineral Resources in the Avino Vein; however, mine development and production have been scheduled on a monthly basis for 2018 to 2022. 
  
 Historically from 1997 to 2001, it was reported that mining in the Avino Vein consistently yielded 1,000 t/d of mill feed. During that period, mine production was comprised of Mineral Resource development mining (drift and slash) and long hole stoping with production averaging at approximately 1,000 t/d (Tetra Tech 2018).
  
 Production from the Avino Vein is summarized in Table 16.1, up to the most recent activities in the third quarter of 2020. This data is summarized from the information listed in Avino’s press releases.
  
 The mining activities were conducted at the Avino Vein; the area is presented in Figure 16.2.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	16-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Table 16.1 Recent Production from the Avino Vein
   
 	 Production Description
	 Q1 to Q3 2020
	 2019
	 2018
	 2017

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 199,575
	 427,147
	 426,794
	 460,890

	 Feed Grade

	 Silver (g/t)
	 54
	 44
	 53
	 64

	 Gold (g/t)
	 0.4
	 0.45
	 0.49
	 0.52

	 Copper (%)
	 0.58
	 0.56
	 0.55
	 0.48

	 Recovery

	 Silver (%)
	 90
	 85
	 84
	 85

	 Gold (%)
	 75
	 73
	 69
	 69

	 Copper (%)
	 88
	 86
	 87
	 89

	 Total Metal Produced

	 Silver Produced (oz)
	 312,819
	 510,265
	 614,369
	 803,438

	 Gold Produced (oz)
	 1,916
	 4,473
	 4,625
	 5,259

	 Copper Produced (lb)
	 2,263,082
	 4,563,195
	 4,546,952
	 4,373,166

 
 
 
 
 
 
 
 
  
 
 Source: Avino (2018; 2019; 2020) 
 
 
 
 
 
  
 Figure 16.2 Isometric View of Mining Activities at the Avino Vein Area 
 	  
	 

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020g)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	16-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 As part of the mine expansion program of its mining activities in 2018, Avino commenced rehabilitation of work at the San Luis portal in preparation to commence mining activities at the deposit and started to process some historic stockpile material (Avino 2018i).
  
 By the second quarter of 2018, the Avino Vein underground advancement totalled 844 m and 102,512 t of material were broken. Haulage of mill feed totalled 123,478 t. Mining took place at levels 16 and 16.5 where the copper grades were higher and the silver and gold grades were lower due to variability in the mineralization within the deposits (Avino 2018i).
  
 During 2018, the work at the San Luis area was primarily focused on the restoration of the main haulage to provide access to mining areas from levels 6 to 9, some of which were partially developed during the 1980s and 1990s prior to the mine closure (Avino 2018i).
  
 However by 2019, development into these areas were placed on hold as part of Avino’s mine plan optimization, mainly because all the milling circuit feed capacities were met from the ET deposit, which is located in the Avino mine site and from the Avino HAGS feed (Avino 2019c). 
  
 A summary of the material processed from the Avino HAGS is presented in Table 16.2.
  
 Table 16.2 Recent Material Feed from the Avino Historic Above Ground Stockpile
  
 	 Production Description
	 2020 (Q1)
	 2019
	 2018

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 4,711
	 306,334
	 202,830

	 Feed Grade

	 Silver (g/t)
	 59
	 55
	 58

	 Gold (g/t)
	 0.31
	 0.36
	 0.41

	 Copper (%)
	 0.15
	 0.18
	 0.16

	 Recovery

	 Silver (%)
	 50
	 54
	 57

	 Gold (%)
	 41
	 53
	 52

	 Copper (%)
	 31
	 35
	 38

	 Total Metal Produced

	 Silver Produced (oz)
	 4,481
	 295,176
	 215,312

	 Gold Produced (oz)
	 19
	 1,859
	 1,397

	 Copper Produced (lb)
	 4,857
	 407,059
	 272,070

 
 
 
 
 
 
 
 
   
 Source:    Avino (2019; 2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	16-4
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 16.3 SAN GONZALO VEIN
  
 Avino has not based its production decisions on the San Gonzalo Vein with any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. The information presented in this section was based on excerpts summarized from a previous technical report (Tetra Tech 2018) and revised with more recent press release material to reflect the mining activities at the Project site.
  
 Avino reported that by the fourth quarter of 2019, mining at the San Gonzalo Vein reached the end of its current resources, and underground mining activities at the mine were stopped; however, the mine remains open for continued exploration at different levels of the mine (Avino 2019e).
  
 Figure 16.3 presents an isometric view of the mining activities at the San Gonzalo Vein area until it was shut down in 2019.
  
 Historic mine production from the San Gonzalo Vein is summarized in Table 16.3.
  
 Table 16.3 Recent Production from the San Gonzalo Vein
  
 	 Production Description
	 2019
	 2018
	 2017

	 Mill Feed Tonnage 

	 Tonnes Milled (t)
	 56,179
	 79,140
	 81,045

	 Feed Grade  

	 Silver (g/t)
	 118
	 222
	 269

	 Gold (g/t)
	 0.46
	 1.03
	 1.32

	 Recovery

	 Silver (%)
	 69
	 77
	 84

	 Gold (%)
	 66
	 75
	 78

	 Total Metal Produced

	 Silver Produced (oz)
	 153,359
	 434,035
	 590,770

	 Gold Produced (oz)
	 581
	 1,955
	 2,675

 
 
 
 
 
 
 
 
    
 Source:    Avino (2018; 2019; 2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	16-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Figure 16.3 Isometric View of Mining Activities at the San Gonzalo Vein Area
 	  
	 

 
 
 
 
 
 
 
 
 
 
 Source: Avino (2020g)
  
 16.3.1 PRODUCTION
  
 Note that the information in this section was provided by Avino.
  
 Recent and historic mine production information for the Avino Vein and San Gonzalo Vein are summarized in Table 16.1 and Table 16.3, respectively.
  
 Concentrate has been sold on a regular basis to a concentrate-trading firm, with shipments taking place monthly. The Q3 2020 financial results indicate that the cost as cash per ounce silver for Avino was US$12.56. Mining and milling operations continue, even though there has been no up-to-date PEA, PFS, or FS undertaken on the Project.
  
 16.4 OXIDE TAILINGS
  
 Avino plans to mine and move the oxide tailings Mineral Resource on site using a conventional truck and loader surface mining equipment. The production cycle consists of loading and trucking (Tetra Tech, 2018). However, based on the QP’s understanding, currently this plan has not been carried out. The following subsections of this Technical Report present the approach that would be taken if the oxide tailings were extracted.
  
 16.4.1 SCHEDULE
  
 The production schedule has been developed for the oxide tailings based on a treatment rate of 500 kt/a. This would be equivalent to a throughput rate of 1,370 t/d. This will give an overall Project duration of approximately eight years. This eight-year period includes one year of pre-production and excludes the time required for remediation of the heap after the leaching process has been completed. Only oxide tailings will be considered for treatment, while sulphide materials will be considered waste. The production schedule is shown in Table 16.4 (Tetra Tech 2018).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	16-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Table 16.4 Mining Production Schedule
   
 	 Year
	 Mineralized
Material
(t)
	 Head Grade
	 Waste
(t)
	 Total Material
Moved
(t)

	 Ag (g/t)
	 Au (g/t)

	 -1
	 -
	 -
	 -
	 500,000
	 500,000

	 1
	 350,000
	 88.83
	 0.51
	 558,906
	 908,906

	 2
	 500,000
	 100.11
	 0.48
	 497,101
	 997,101

	 3
	 500,000
	 94.95
	 0.44
	 498,995
	 998,995

	 4
	 500,000
	 78.28
	 0.45
	 75,148
	 575,148

	 5
	 499,673
	 82.99
	 0.44
	 500,327
	 1,000,000

	 6
	 500,000
	 87.95
	 0.36
	 295,829
	 795,829

	 7
	 272,641
	 76.27
	 0.28
	 12,405
	 285,046

	 LOM
	 3,122,314
	 87.75
	 0.43
	 2,938,711
	 6,061,025

 
 
 
 
 
 
 
 
  
 Source: Tetra Tech (2018)
  
 16.4.2 EQUIPMENT
  
 The mining operations include loading and trucking. Loading/trucking operations will be conducted in two, 12 h shifts per day. A 3.85 m3 rated (5.0 yd3) front-end loader will be used to load three, 24 t articulated trucks that will either deliver the sulphide tailings to the sulphide waste stockpile or the oxide tailings to the oxide tailings hopper (Tetra Tech 2018).
  
 16.4.3 MODIFYING SITE CONSIDERATIONS
  
 Certain areas of the tailings may contain high amounts of moisture that can lead to equipment getting stuck. To mitigate this challenge, wider, oversized tires with chains will be installed on the front-end loader. Also, the front-end loader bucket will be downsized to 3.06 m3 (4.0 yd3). This will lighten the load on the front tires preventing them from sinking into saturated material. The trucks will not enter the soft zones, so there will be no modifications to the trucks (Tetra Tech 2018).
  
 16.5 SULPHIDE TAILINGS
  
 Avino is not currently conducting treatment activity on the sulphide tailings. In this Technical Report, sulphide tailings are considered as waste.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	16-7
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	17.0 RECOVERY METHODS

 
 
 
    
 There are two separate mineralization sources on the Property, one of which is currently in operation, as well as potential tailings resource from previous milling operations. The San Gonzalo Mine, which entered commercial production in October 2012, stopped its operation in Q4 2019 due to it reaching the end of its resources at that time. After shutting down in 2001, the ET Mine was reopened in January 2015. In 2018, a new circuit (Circuit #4) was installed and commissioned to process materials from the HAGS. The mill stopped processing the HAGS materials after Q2 2020. The circuit now processes materials from the ET Mine. 
  
 Historically, prior to the mine shutting down in 2001, Avino operated a 1,000 t/d processing plant, producing a copper concentrate that was sold to a smelter in San Luis Potosi for approximately 27 years. From 1997 to 2001, the mill process rate averaged 1,000 t/d and achieved up to 1,300 t/d. The mine and mill operations were then suspended. Following several years of redevelopment, Avino completed the Avino mine and mill expansion in Q4 2014. On January 1, 2015, full‐scale operations commenced and commercial production was declared effective April 1, 2016 following a 19 month advancement and test period.
  
 The mill feed is processed in a conventional flotation mill that has four separate circuits and a capacity of 2,500 t/d. The four circuits include the following:
   
 	  
	 ·
	Circuit #1 was used to process materials from the San Gonzalo Mine, which has been stopped since the end of 2019. The circuit was used to produce a lead concentrate containing gold and silver, as well as a zinc concentrate. The circuit has now been modified to process materials from the ET Mine and produces a copper flotation concentrate containing silver and gold. The processing rate is 250 t/d.
	  
	  
	  

	  
	 ·
	Circuit #2 is used to process mill feed from the ET Mine and produces a copper flotation concentrate containing silver and gold. The processing rate is 250 t/d.
	  
	  
	  

	  
	 ·
	Circuit #3 is used to process materials from the ET Mine and produces a copper flotation concentrate containing silver and gold. The processing rate is 1,000 t/d.
	  
	  
	  

	  
	 ·
	Circuit #4 is currently used to process materials from the ET Mine, although it also processed low-grade materials from historic stockpiles before Q2 2020. This circuit produces a copper flotation concentrate containing silver and gold at a process rate of 1,000 t/d. 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 A centrifugal gravity concentrator has also been installed in all four processing circuits to recover a high-grade gold/silver concentrate suitable for dispatching directly to a smelter. 
  
 A Courier Model 5 on-line analyzer has also been installed to monitor the performance of the #3 and #4 flotation circuits. 
  
 A newly installed tailings thickener has operationally improved the deposition of the tailings while improving water management and usage. Dry stacking tailings with pressure filters (plate-frame type) has also been planned to further conserve the process water consumption.
  
 Currently, there is no operation for the tailings resource. The PEA study conducted in 2017 proposed heap leaching treatment for the silver and gold recovery from the oxide tailings portion of the Property. The proposed treatment was discussed in detail in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017. 
  
 Avino is not currently conducting mining activity on the sulphide tailings. No recovery methods are currently proposed for the sulphide tailings. 
   
 17.1 CRUSHING FACILITY
  
 The existing crushing plant was upgraded to accommodate the higher throughput. Mill feeds from different sources will be crushed separately, and the crushed materials will be conveyed to separate bins that are dedicated to the different grinding and flotation circuits.
  
 The upgraded crushing facility includes:
  
 	  
	 ·
	one 30 ft. by 42 ft. jaw crusher with an installed power of 150 HP
	  
	  
	  

	  
	 ·
	one 20 in. by 36 in. jaw crusher (standby unit) with an installed power of 75 HP
	  
	  
	  

	  
	 ·
	one 5.5 ft. standard cone crusher with an installed power of 300 HP
	  
	  
	  

	  
	 ·
	one 4.25 ft. standard cone crusher with an installed power of 200 HP
	  
	  
	  

	  
	 ·
	one Nordberg HP500 crusher with an installed power of 300 HP
	  
	  
	  

	  
	 ·
	one 5 ft. by 16 ft. scalping screen with apertures of 3/8 in.
	  
	  
	  

	  
	 ·
	one 8 ft. by 20 ft. scalping screen with apertures of 3/8 in.
	  
	  
	  

	  
	 ·
	other ancillary equipment, such as feeders, surge bins, conveyors, belt magnet, and metal detector.

 
 
 
 
 
 
 
 
 
 
 
 
   
 With the upgrades, the crushing circuit is capable of crushing mill feeds at the rate of 2,500 t/d.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 17.2 GRINDING / GRAVITY CONCENTRATION / FLOTATION
  
 As discussed previously, there are four grinding and flotation circuits in the processing plant to recover valuable metals from the ET Mine. Historically, up to three circuits were used to process feed from the San Gonzalo Mine and the HAGS. The grinding circuits have incorporated gravity concentration circuits to recover coarse precious metal particles. 
  
 As discussed in Section 17.1, the plant consists of a conventional three-stage crushing circuit with the tertiary crusher in closed circuit with a screen. The crushed material is fed to each of the grinding lines, each consisting of a ball mill and related classification hydrocyclone(s) to grind the crushed mill feeds to a grind size of approximately 65% to 75% passing 200 mesh. The grinding mills used are 2.4 m diameter by 1.8 m long ball mills for Circuits #1 and #2, each with an installed power of 225 HP, and 3.2 m diameter by 4.6 m long ball mills for Circuits #3 and #4, each with an installed power of 1,000 HP.
  
 A centrifugal gravity concentrator has also been installed in the grinding circuits to recover coarse precious metal particles into a high-grade gold/silver concentrate suitable for dispatching directly to a smelter.
  
 The cyclone overflows from different circuits are fed to their own flotation circuits, consisting of rougher flotation, scavenger flotation, and cleaner flotation. The rougher flotation tailings report to the scavenger flotation. The scavenger flotation concentrate is recycled back to the rougher flotation, while the tailings is pumped to the tailings thickener.
  
 The concentrates from the rougher and scavenger circuits are upgraded in a single stage of cleaner flotation to produce the final concentrate grading of 20% to 25% copper. The cleaner flotation tailings is recycled back to the rougher flotation. The final flotation concentrates produced from Circuits #2 and #3 are pumped to one shared concentrate dewatering circuit, consisting of one thickener and one pressure filter, while the final flotation concentrates produced from Circuits #1 and #4 are pumped to two separate concentrate dewatering circuits, each consisting of one thickener and one pressure filter. The final concentrate is dewatered to approximately 9% moisture prior to being shipped to an off-site smelter.
  
 The simplified flowsheet, including grinding and flotation circuits, is shown in Figure 17.1. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Figure 17.1 Simplified Flowsheet – Avino Mill
 	  
	 

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	17-4
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 The flotation circuit has air blowers and compressors to provide the air required for the flotation cells as well as the filter presses. A Courier Model 5 on-line sampling system has been installed to monitor production performance in Circuits #3 and #4. This system samples the feed, tailings, and concentrate streams of the two circuits. The Courier Model 5 on-line sampling system complements the existing six sampling points. The system continuously measures copper, lead, zinc, and iron contents, as well as the slurry density of the streams.
  
 Hand samples are collected at predetermined times for sample preparation and analysis. The plant samples are routinely analyzed by an AA Spectrophotometer for copper, lead, zinc, bismuth, antimony, and iron, and by fire assay for gold and silver. 
  
 For the Avino materials, several reagents have been used to separate copper minerals from gangues. Lime is added in the ball mills to raise flotation pH to approximately 10.5 to depress pyrite. Flotation reagents used include Aero 404 and Aerophine 3418A as collectors, together with CC-1065 (Dowfroth 250 equivalent) as frother. Diluted flocculant solutions are added into concentrate thickeners and the tailings thickener separately to assist in the settling of fine particles. 
  
 Further process optimization should be conducted by focusing on reducing the bismuth content in the concentrate and improving gold recovery.
  
 A tailings thickener was installed in Q1 2019 and in operation in Q2 2019. All the flotation tailings from the four flotation circuits are pumped to the thickener. The upgrading has improved the deposition of the tailings and the water management and usage. The thickener overflow, together with the decant water from the permitted tailings impoundment areas, is reclaimed for process use. The thickened tailings is stored in the lined historical open pit. Also, dry stacking tailings with pressure filters (plate-frame type) has been planned to further conserve the process water consumption. The tailings cakes are planned to be stored in a new tailings storage facility, which has been permitted. 
  
 Typical copper recoveries for the Avino’s materials range from 85% to 90%, silver in the mid 80% range, and gold between 70% and 75%. Table 17.1 to Table 17.3 show the summary of the mill productions from the three different mill feed sources since 2017.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 17.1 Avino Vein Mill Production
  
 	 Production Description
	 2020 
(Q1 to Q3)
	 2019
	 2018
	 2017

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 199,575
	 427,147
	 426,794
	 460,890

	 Feed Grade

	 Silver (g/t)
	 54
	 44
	 53
	 64

	 Gold (g/t)
	 0.40
	 0.45
	 0.49
	 0.52

	 Copper (%)
	 0.58
	 0.56
	 0.55
	 0.48

	 Recovery

	 Silver (%)
	 90
	 85
	 84
	 85

	 Gold (%)
	 75
	 73
	 69
	 69

	 Copper (%)
	 88
	 86
	 87
	 89

	 Total Metal Produced

	 Silver Produced (oz)
	 312,819
	 510,270
	 614,361
	 803,447

	 Gold Produced (oz)
	 1,916
	 4,473
	 4,625
	 5,259

	 Copper Produced (lb)
	 2,263,082
	 4,563,195
	 4,546,952
	 4,373,166

 
 
 
 
 
 
 
 
   
 Source: Avino (2018; 2019; 2020) 
  
 Table 17.2 Avino Historic Above Ground Stockpiles Production
  
 	 Production Description
	 2020 
(Q1 to Q2)
	 2019
	 2018
	 2017

	 Mill Feed Tonnage

	 Tonnes Milled (t)
	 4,711
	 306,334
	 202,830
	 -

	 Feed Grade

	 Silver (g/t)
	 59
	 55
	 58
	 -

	 Gold (g/t)
	 0.31
	 0.36
	 0.41
	 -

	 Copper (%)
	 0.15
	 0.18
	 0.16
	 -

	 Recovery

	 Silver (%)
	 50
	 54
	 57
	 -

	 Gold (%)
	 41
	 53
	 52
	 -

	 Copper (%)
	 31
	 35
	 38
	 -

	 Total Metal Produced

	 Silver Produced (oz)
	 4,481
	 295,169
	 215,312
	 -

	 Gold Produced (oz)
	 19
	 1,859
	 1,397
	 -

	 Copper Produced (lb)
	 4,857
	 407,059
	 272,070
	 -

 
 
 
 
 
 
 
 
   
 Source: Avino (2018; 2019; 2020)  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	17-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 Table 17.3 San Gonzalo Vein Mill Production
  
 	 Production Description
	 2020
	 2019
	 2018
	 2017

	 Mill Feed Tonnage

	 Total Mill Feed (t)
	 -
	 56,179
	 97,140
	 81,045

	 Feed Grade

	 Silver (g/t)
	 -
	 118
	 222
	 269

	 Gold (g/t)
	 -
	 0.46
	 1.03
	 1.32

	 Recovery

	 Silver (%)
	 -
	 69
	 77
	 84

	 Gold (%)
	 -
	 66
	 75
	 78

	 Total Produced

	 Silver (oz)
	 -
	 153,372
	 456,709
	 590,770

	 Gold (oz)
	 -
	 581
	 2,070
	 2,675

 
 
 
 
 
 
 
 
   
 Source: Avino (2018; 2019; 2020) 
  
 17.3 TAILINGS RESOURCES
  
 There are two types of tailings produced from the previous mining operations: oxide tailings and sulphide tailings. Currently, there is no operation to recover metals from both tailings resources.
  
 A PEA Update study was conducted in 2017, focusing on the oxide tailings treatment for the recovery of silver and gold from the tailings dam.
  
 17.3.1 OXIDE TAILINGS
  
 TREATMENT SELECTION
  
 An earlier PEA was conducted in 2012 (Tetra Tech 2013) to compare three potential processing treatment routines for the oxide tailings retreatment project, including: 
  
 	  
	 ·
	cyanidation (tank leaching) of the oxide tailings without regrinding
	  
	  
	  

	  
	 ·
	cyanidation (tank leaching) of the oxide tailings with regrinding

 
 
 
 
 
 
 
 
 
 
 
 
    
 1. heap leaching of the oxide tailings without regrinding.
  
 A preliminary economical evaluation, at a mill feed rate of 1,370 t/d, shows that heap leaching treatment is more favourable than the other two treatment options, in terms of initial capital cost and operating cost. The 2017 PEA Update was based on the heap leaching treatment technology that was used for the previous PEA (Tetra Tech 2013).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-7
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 PROCESS FLOWSHEET
  
 The proposed treatment plant will consist of agglomeration and cyanide heap leaching, followed by a Merrill-Crowe process to recover silver and gold from pregnant solution. The process plant will operate on a 24 h/d, 365 d/a basis, with an overall utilization of 90%.
  
 The simplified flowsheet is shown in Figure 17.2.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	17-8
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Figure 17.2 Simplified Process Flowsheet
 	  
	 

 
 
 
 
 
 
 
 
 
 
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-9
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 MAJOR DESIGN CRITERIA
  
 The heap leach was designed to process 0.5 Mt/a of oxide tailings. This would be equivalent to a throughput rate of 1,370 t/d and equivalent to 63.4 t/h at a 90% running time.
  
 The major criteria used in the design are outlined in Table 17.4.
  
 Table 17.4 Major Design Criteria
  
 	 Criteria
	 Unit
	 Number

	 Operating Year
	 d
	 365

	 Overall Plant Availability
	 %
	 90

	 Annual Processing Rate
	 t
	 500,000

	 Daily Processing Rate
	 t/d
	 1,370

	 Tailing Bulk Density
	 t/m3
	 1.605

	 Agglomerated Tailing Bulk Density
	 t/m3
	 1.24

	 Agglomerated Feed Size, P80 Passing
	 μm
	 225

	 Agglomerated Product Size, P80 Passing
	 mm
	 6 to 15

	 Moisture Content of Agglomerated Feed
	 %
	 12.5

	 Total Loading/Curing/Leaching/Rinsing Cycle
	 d
	 142

	 Cyanide Solution Strength
	 g/L
	 0.5

 
 
 
 
 
 
 
 
   
 The design parameters were based on test work results obtained by PRA but directed by MMI using the results from Huang (2005) and Slim (2005d).
  
 PROCESS PLANT DESCRIPTION
  
 For an oxide tailings treatment rate of 0.5 Mt/a, an equivalent throughput rate of 1,370 t/d or 63.4 t/h is required. This will give an overall Project duration of approximately seven years. This seven-year period will exclude the time required for site establishment and remediation of the heap after the leaching process has been completed.
  
 The mining equipment will operate on a different schedule than the process plant. Loading operations will be conducted during one 8 h shift per day, 365 d/a. A 3.85 m3 rated (5.0 yd3) front-end loader will be used to load a 24-t articulated truck that will either deliver the sulphide tailings to the sulphide stockpile or the oxide tailings to the 160 t oxide tailings hopper. Once the hopper is filled, excess tailings will be stockpiled around the hopper to be loaded by the process plant group.
  
 Certain areas of the tailings might contain high amounts of moisture that can lead to equipment getting stuck. To mitigate this challenge, wider, oversized tires with chains will be installed on the front-end loader. Also, the front-end loader bucket will be downsized to 3.06 m3 (4.0 yd3). This will lighten the load on the front tires preventing them from sinking into saturated material. The trucks will not enter the soft zones, so there will be no modifications to the trucks.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-10
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 A dribble chute will feed the tailings from the hopper onto a conveyor belt. Cement and lime will be added to the tailings at controlled addition rates. Although some operations add solid, dry, flake cyanide to the agglomerator feed material, this option will not be exercised in this case. Cement and lime will be added from their respective bulk storage silos. A 50-t capacity cement storage silo equipped with a dust collection filter and a cement blower will be required, as well as a 30-t capacity lime storage silo similarly equipped with a dust collection filter and a lime blower. Each reagent delivery system will be controlled by a weightometer prior to feeding the reagents to the tailings material conveyor belt feeding the agglomerator drum. The design treatment rate will be 63.4 t/h of tailings material with an average moisture content of 10%. Water, or barren solution, will be added to the agglomerator to provide for an overall moisture content of approximately 12.5% to 15% to the leach pad feed material. Two, 1-t capacity cyanide mixing and storage tanks will be positioned at the Merrill-Crowe facility. The cyanide preparation system will produce a cyanide solution with a strength of 20% sodium cyanide. The cyanide solution will then be injected into the solution distribution system going to the heap pad and precipitation filter press.
  
 The agglomerator will be a drum-type unit with a diameter of 1.8 m and a length of 6.7 m rotating at 10.5 rpm and with a variable angle of 2.5°, 5.0°, or 7.5°. Agglomerated material will be discharged onto a conveyor belt, then onto a series of jump conveyors, and then deposited on the heap leach pad by a radial telestacker. A curing time of 5 d will be allowed before the agglomerates are sprayed with a cyanide-bearing leach solution.
  
 There will be only one leach pad. The leach heap pad dimensions are estimated to be 288 m wide and 428 m long and includes a surrounding berm of 6.5 m in width. There will be four lifts over the seven-year treatment period. Each lift will be 6.5 m high giving the heap an overall height of 26 m.
  
 The heap leach process will operate with three solution ponds: 
  
 	  
	 ·
	a barren solution pond
	  
	  
	  

	  
	 ·
	a pregnant solution pond

 
 
 
 
 
 
 
 
 
 
 
 
   
 2. an event or overflow pond.
  
 Solution from the barren solution pond will be pumped to the leach heap. Concentrated cyanide solution will be added to the barren solution pond where it will be mixed to give a controlled cyanide concentration of approximately 0.5 g/L sodium cyanide strength. The pH will be maintained at 10.5. This solution will be distributed over the leach pad using irrigation pipes and drips for an overall solution feeding rate of approximately 7.3 L/h/m2 (0.002 L/s/m2). A total leaching duration of 130 d will be allowed, followed by a wash/rinse cycle of seven days, resulting in a total loading, leaching, and rinsing cycle of 142 d.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	17-11
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 The total calculated amount of area of pad under irrigation per day will be approximately 22,000 m2, with 1,210 m2 being rinsed every day. The calculated volume of solution pumped to the heap will be 173 m3/h of which a nominal 9 m3/h will be rinse solution. A total solution evaporation loss of 10% is assumed.
  
 The 173 m3/h pregnant solution collected from the leach pad will be directed to the pregnant solution pond. The solution from the pregnant solution pond will be pumped to the Merrill-Crowe plant for silver and gold recovery by precipitation with zinc dust and filtration of the precipitate. The barren solution will then be returned to the barren solution pond. Solution from the pregnant solution pond can overflow into the barren solution pond should this be required. Solution from the barren solution pond can also overflow into the overflow solution pond. This overflow solution pond will also collect excess water and drainage solution from the heaps and plant environs. The overflow solution pond will also supply make-up water to the process by pumping the water back to the barren solution pond. Alternatively, excess solution from this pond will be treated with calcium hypochlorite in an agitated treatment tank to reduce the cyanide levels to acceptable limits prior to discharging this water to the environment or re-using this water as process water.
  
 The Merrill-Crowe section will receive the pregnant solution, which will be pumped to the clarifier filter together with filter aid pre-coat and body feed. The slurry from the backwash cycles will be pumped to an inactive part of leach heap. The clarified solution will be pumped to the de-aeration tower where the solution will be de-oxygenated and a slurry of zinc dust, lead nitrate, cyanide, and filter aid will be pumped into the de-aerated solution after the tower but ahead of the precipitate filters. The zinc dust, lead nitrate, and filter aid will be made up into a slurry at the required dosage rate in the precipitate mixing tank and cyanide will be added as needed. The cementation reaction occurs at the point of introduction of the slurry to the de-aerated solution. This reaction normally requires approximately 2 to 5 minutes for completion. The reaction should be complete by the time the new-barren solution exits the precipitate filter to barren solution tank, and from there, it will flow into the barren solution pond where the pH will be adjusted to 10.5 with lime if necessary and then be pumped back to the heap pad for leaching after cyanide concentration is adjusted to approximately 0.5 g/L sodium cyanide.
  
 The addition of zinc dust has been calculated on the basis of 10 g of zinc dust per 1 g of silver plus gold in order to ensure that the cementation reaction will be driven to completion. Although precipitation efficiencies are normally considered to be higher than 99.5%, in this case, 96% has been selected since no test work has been conducted on the pregnant solution from this material. The cyanide concentration of the pregnant solution should be a minimum of about 100 mg/L as free cyanide and will be monitored on a regular basis. The lead nitrate addition will be added to improve the precipitation efficiency, and its dosage is based on approximately 2 mg lead nitrate per litre of solution. Approximately 50% of the total required amount of lead nitrate will be added to the pregnant solution prior to the clarifier filter where impurities present in the solution will be removed by the clarifier filter. Although no anti-scalant reagents have been included in the study, any reagents of this nature should be tested to determine its effect on the precipitation efficiency.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	17-12
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 The silver-rich precipitate, which contains the gold and excess zinc, will flow to the acid vat tank where the excess zinc can be dissolved by mixing with an adequate amount of sulphuric acid. From there, it will be pumped to the digest precipitate filter press. This precipitate from the filter press will be dried in an oven prior to being melted in a smelting furnace for doré production. It is anticipated that the total metal precipitate production per day will be approximately 420 kg (dry basis) with approximately 20% of silver and gold, or approximately 85 kg of silver and gold.
  
 HEAP LEACH LAYOUT
  
 The maximum height has been restricted to 26 m as a result of the proximity of the proposed heap leach facility to the community of San Jose de Avino and possibly weak compressive strength of the agglomerates. This proposed height for the heap would require geotechnical verification. The relatively low heap pad height proposed has resulted in a relatively large surface area being required for the leach pad. The site layout and available space, site drainage, and pad size have been designed according to the area topography and the best available information. However, the close proximity of the proposed heap leach facility to the community of San Jose de Avino, and its agricultural workings, may yet result in site and/or layout revisions.
  
 17.3.2 SULPHIDE TAILINGS
  
 Avino is not currently conducting mining activity on the sulphide tailings. No recovery methods are currently proposed for the sulphide tailings. 
  
 Because some of the oxide tailings and sulphide tailings were co-deposited, and the oxide tailings are partially covered by younger unconsolidated sulphide tailings on the northwest side of the tailings storage dam, the sulphide tailings materials will be reclaimed as required during the oxide tailings reclamation. As noted in the 2017 PEA, the reclaimed sulphide tailings are planned to be stored in a separate sulphide tailings storage facility for further exploration. While some of the sulphide tailings could be used for constructing the proposed heap leach pad and facilities for the oxide tailings retreatment, no quantities were estimated for the PEA.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	17-13
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
  
 	18.0 PROJECT INFRASTRUCTURE

 
 
 
    
 18.1 INTRODUCTION
  
 The history of operations at the Avino Mine provides ample evidence of sufficient infrastructure and services in the area. The San Gonzalo Mine entered commercial production in October 2012, followed by reopening the ET Mine in January 2015. At that time, these two mines fed a conventional flotation mill that had three separate circuits and a capacity of 1,500 t/d.
  
 From January 2017, Avino has been constructing a new separate processing line identified as Circuit #4. Circuit #4 has an identical throughput capacity as Circuit #3 and is currently used for processing materials from the ET Mine, although the circuit also processed the materials from HAGS. The overall mill expansion has been increased to 2,500 t/d. The processing for both the mill feeds from the San Gonzalo Mine and HAGS has ceased in Q4 2019 and Q1 2020, respectively. In Q4 2019, mining at the San Gonzalo Vein reached the ends of its current resources. However, the mine remains open for continued exploration at different levels of the mine.
  
 The existing crushing plant has been upgraded to accommodate the higher throughput. The grinding, flotation, and dewatering circuits have been updated for the increased mill feed rate, including incorporating gravity concentration circuits in all the four grinding circuits. Circuit #1 has been modified to process materials of the ET Mine after the San Gonzalo Mine ceased its operation. 
  
 A common tailings thickener was installed to conserve process water consumption by directly recycling the thickener overflow to the proceeding processing circuits. The thickener underflow now is deposited into a lined facility, which is a historical open pit. Under planning, the thickened underflow will be further dewatered by pressure filtration and the filter cakes produced will be stored in a separate and permitted tailings dry stacking facility while the filtrate will be recycled back as process makeup water.
  
 The offices, miner’s quarters, secured explosives storage facilities, warehouse, laboratory, and other associated facilities are all in place. The general mine site arrangement, including the proposed oxide tailings leach facility, is shown in Figure 18.1. The proposed tailings leach facilities for processing the historical oxide tailings materials are planned to be located southeast of the existing tailings storage pond. The preliminary arrangement for these facilities has been detailed in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	18-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 Figure 18.1 Overall Tailings Heap Leach Facility Layout
 	  
	 

 
 
 
 
 
 
 
 
 
 
 Source: Avino and Tetra Tech (2020)
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	18-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 18.2 ACCESSIBILITY
  
 The Property is easily accessible by road and is an important part of the local community from which skilled workers are available. Access is provided by Highway 40, a four-lane highway leading from Durango, past the airport, and on to the city of Torreon in Coahuila. Successive turn-offs for the Property are at Francisco I Madero, Ignacio Zaragoza, and San Jose de Avino (Slim 2005d). The Avino mineral concessions are covered by a network of dirt roads, which provide easy transport access between the San Gonzalo deposit and the mill at the main Avino mine site (Gunning 2009). In 2008, a 1.7 km road accessing to the San Gonzalo deposit was widened and upgraded so it would be suitable for use by the mineralized material haul trucks and heavy equipment. 
  
 18.3 POWER
  
 The Avino mine site was connected to the local power grid with a line capacity quoted at 4 MW when the mine last operated in 2001. With the shutdown, much of this excess power was diverted to the surrounding towns in the district. Before 2016, the existing power line provided only 1,000 kW of power with 500 kW servicing the mill; 400 kW for San Gonzalo; and the balance for the well at Galeana, employee accommodation facility, and water reclaim from the tailings dam. The San Gonzalo power line was built in 2009 to replace the contractor’s diesel generator used during mine development.
  
 The new power line from Guadelupe Victoria to the mine site was completed in June 2016. The power line was energized and tested on June 8, 2016. The test was successful and the line was then fully functional at the design capacity of 5 MW. Current power consumption at the mine is approximately 3.5 MW, leaving sufficient additional power for potential future expansion projects, including the proposed oxide tailings retreatment project using heap leach followed by gold and silver recovery by Merrill‐Crowe precipitation, planned pressure filtration for further tailings dewatering, and possible further expansion or upgrading of the processing plant. Additionally, the existing power line was left in place to service local communities and provide backup power for the mine.
  
 A C-27 CAT diesel power generator, which can produce 700 kW, is now used as backup.
  
 18.4 WATER SUPPLY
  
 While water supply was found to be limiting in the past, Avino has taken the necessary steps to secure adequate supply. To supplement the 1 Mm3 dam built by Avino in 1989, a well (Galeana) was drilled to the west of the mine site in 1996 to a depth of 400 m and is reported to have a water level at 40 m below the collar. From this, a pipeline connection has been installed to the mine. Additionally, CMMA, in cooperation with the government, has repaired a government dam (El Caracol) and raised the dam wall by 6 m. A pipeline to the mine has also been installed. This dam is shared with the population of Pánuco de Coronado for their irrigation needs, as 60% for the mine and 40% for the town, with government setting the annual total take to which percent sharing applies. The tailings thickener in operation in Q2 2019 has improved the deposition of the tailings and the water management and usage. The thickener overflow, together with the decant water from the permitted tailings impoundment areas, is reclaimed for process use. Also, dry stacking tailings with pressure filters (plate-frame type) has been planned to further conserve the process water consumption. The dewatered water from San Gonzalo and ET underground mines are used as mill processing and agricultural irrigation. 
  
 18.5 WATER TREATMENT PLANT
  
 Underground mine water at the Avino Mine is acidic. Since October 2012, dewatering of the Avino Mine began and a water treatment plant using lime to raise the pH and to precipitate the heavy metals was constructed and built. The water treatment facility is a typical Mexican design, and the effluent water quality had to meet the agricultural standards for discharge. Test results to date show the results do meet the required agricultural standards for being discharged to the El Caracol Dam via gravity. Treatment of the Avino underground water had been completed with the commencement of production in 2015. The water treatment plant is in place for treating excess water before discharging to El Caracol Dam. The effluent is being monitored on a daily basis when the treatment plant is operational. Sludge, which is considered low density, is sent to the tailings dam.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	18-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
  
 	19.0 MARKET STUDIES AND CONTRACTS

 
 
 
    
 19.1 MINED MATERIAL HAULAGE FROM UNDERGROUND
  
 Currently, the processing plant undertakes materials from the ET Mine only. Haulage of the materials from the mine is contracted out, and the contract terms are within industry norms.
  
 19.2 FLOTATION CONCENTRATES
  
 There is a ready market for the Avino copper, silver, and gold flotation concentrates. The concentrates are currently being sold on an exclusive basis to Samsung C&T UK Ltd until December 2024. The concentrate sale agreement was extended in November 2018 from the original contract announced in July 9, 2015. The terms and conditions of these contracts are based on industry norms, and the terms have been used to establish the revenues from various mining operations, including the previous operation at the San Gonzalo Mine, which has now stopped operation.
  
 Under the terms of the agreement, the concentrates are delivered by truck to the Port of Manzanillo located on the Pacific coast of Mexico, loaded into containers, and shipped to smelters overseas.
  
 The metal prices used for the payable metals, namely copper, silver, and gold, are based on the average market prices of the first month after the month of delivery to the loading port.
  
 19.3 GOLD-SILVER DORÉ
  
 For the doré produced from the proposed oxide tailings retreatment project, currently there are no letters of interest or letters of intent from potential smelters or buyers of gold and silver doré.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	19-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
  
 	20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

 
 
 
    
 20.1 ENVIRONMENTAL STUDIES
  
 Construction of the new tailings storage facility by depositing the tailings in an historical open pit is ongoing and the facility is in operation now.
  
 The new tailings storage facility construction was conducted based on the recommendations contained in the 2013 PEA (Tetra Tech 2013), intended to advance the tailings resource towards a production decision for a Merrill-Crowe precipitation heap leach operation.
  
 In November 2015, in order to get a head start on the assessment work, Avino began a program of sampling the lower oxide bench in areas not in use. The program consisted of using a hydraulic drill with a 2 m split spoon auger to drill vertical holes to a depth of 20 m to 30 m; 12 holes were drilled by the end of 2015 totalling 227 m. By the end of February 2016, a further 40 holes had been drilled, totalling over 650 m; assays have been received and compiled.
  
 Avino will decommission the current tailings storage facility and begin installing wells that will be used to pump out the retained water in the dam. This will speed up the sonic drilling program planned for the upper benches, provide samples for the metallurgical program, and increase confidence in the oxide resource located below the sulphide tailings.
  
 20.1.1 ENVIRONMENTAL SETTING
  
 Flora and fauna of the surrounding San Gonzalo Property is anticipated to be similar to what may be found in the area of oxide tailings, although presence of these species has not been confirmed at the oxide tailings site. Vegetation observed on the San Gonzalo Property at the time of permitting includes catclaw mimosa; cactus species, such as paddle cactus and desert christmas cactus; needle bush, gobernadora; and persimmon trees.
  
 Within the adjacent San Gonzalo Mine Project area, there were 15 species of major mammals, 51 species of birds, 10 species of reptiles, and 3 species of amphibians reported at the time of permitting. Of these species, four mammal species, 14 species of birds, 9 reptiles, and 3 amphibians species are listed by Official Mexican Standard NOM‐059-SEMARNAT-2001 or in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (Ministry of Environment and Natural Resources [MENR 2008a]) (Table 20.1 to Table 20.4).
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
  
 	 
	20-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 Table 20.1 Mammal Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
  
 	 Common Name
	 Gender and Species
	 Status under 
NOM-059-SEMARNAT-2001 or CITES

	 Abert's Squirrel
	 Sciurus aberti
	 Resident. Endemic. Special Protection.

	 White-throated Woodrat
	 Neotoma albigula
	 Resident. Endemic. Threatened.

	 Swift Fox
	 Vulpex velox
	 Resident. Endemic. Threatened.

	 American Badger
	 Taxidea taxus
	 Resident. Threatened.

 
 
 
 
 
 
 
 
 
 
 
 
    
  Source: MENR (2008a) 
  
 Table 20.2 Bird Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
   
 	 Common Name
	 Gender and Species
	 Status under 
NOM-059-SEMARNAT-200 or CITES

	 Great Blue Heron
	 Ardea herodias
	 Migratory. Special Protection.

	 Blue-winged Teal
	 Anas discors
	 Migratory. Special Protection. Hunting.

	 Common Black Hawk
	 Buteogallus anthracinus
	 Resident. Special Protection. Indicator.

	 Red-Tailed Hawk
	 Buteo jamaicensis
	 Resident. Indicator.

	 Great Horned Owl 
	 Bubo virginianus
	 Resident. Threatened.

	 American Kestrel
	 Falco sparverius
	 Resident. Indicator.

	 Scaled Quail
	 Callipepla squamata
	 Resident. Endemic. Self-consume.

	 Blue Mockingbird
	 Melanotis caerulescens
	 Resident. Endemic. Threatened. Esthetic.

	 Northern Mockingbird
	 Mimus polyglotos
	 Resident. Esthetic.

	 Curve-billed Thrasher
	 Toxostoma curvirostre
	 Resident. Esthetic.

	 Gray Silky-flycatcher
	 Ptilogonys cinereus
	 Resident. Endemic.

	 Golden Vireo
	 Vireo hypochryseus
	 Resident. Endemic.

	 Desert Cardinal
	 Cardinalis sinuatus
	 Resident. Esthetic.

	 Painted Bunting
	 Passerina ciris
	 Migratory. Esthetic.

 
 
 
 
 
 
 
 
 
 
 
 
     
  Source: MENR (2008a) 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	20-2
	

	 

 
 
 
 
    
 	 
	 

 
 
 
 
      
 Table 20.3 Reptile Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
  
 	 Common Name
	 Gender and Species
	 Status under 
NOM-059-SEMARNAT-2001 or CITES

	 Mexican Spinytail Iguana
	 Ctenosaura pectinata
	 Resident. Endemic. Threatened.

	 Bolsón Night Lizard
	 Xantusia bolsonae
	 Resident. Endemic. Threatened.

	 Horrible Spiny Lizard
	 Sceloporus horridus
	 Resident. Endemic.

	 Mexican Black-bellied Garter Snake
	 Nerodia melanogaster
	 Resident. Endemic. Threatened.

	 Mexican Pine Snake
	 Pituophis deppei
	 Resident. Endemic. Threatened.

	 Mexican Garter Snake
	 Thamnophis eques
	 Resident. Threatened.

	 Western Diamondback Rattlesnake
	 Crotalus atrox
	 Resident. Special Protection.

	 Black-tailed Rattlesnake
	 Crotalus molossus
	 Resident. Special Protection.

	 Red-eared Slider
	 Chrysemys scripta
	 Resident. Special Protection.

 
 
 
 
 
 
 
 
 
 
 
 
  
 Table 20.4 Amphibian Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine
  
 	 Common Name
	 Gender and Species
	 Status under
NOM-059-SEMARNAT-2001 or CITES

	 Tarahumara Salamander
	 Ambystoma rosaceum
	 Resident. Endemic. Special Protection.

	 Sinaloa Toad
	 Bufo mazatlensis
	 Resident. Endemic.

	 Mexican Cascades Frog or White-striped Frog
	 Lithobates (prev. Rana) pustulosa
	 Resident. Endemic. Special Protection.

 
 
 
 
 
 
 
 
 
 
 
 
  
 20.2 ENVIRONMENTAL PERMITTING
  
 Permits and authorizations required for the Project operation include:
  
 	  
	 ·
	an operating permit
	  
	  
	  

	  
	 ·
	an application for surface tenures
	  
	  
	  

	  
	 ·
	a wastewater discharge registration
	  
	  
	  

	  
	 ·
	a hazardous waste generator's registration.

 
 
 
 
 
 
 
 
 
 
 
 
    
 An EIA under the Ley General del Equilibrio Ecológico y la Protección al Ambiente (LGEEPA), Article 28 (General Law of Ecological Equilibrium and Environmental Protection), is required by the Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales [SEMARNAT]). Prior to this EIA, an authorization regarding environmental impact matters is required by the SEMARNAT.
  
 Additional surface tenures will likely be required for the re-location of any tailings to areas outside of the current surface tenure rights.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-3
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
    
 	 
	 

 
 
 
 
       
 20.2.1 CURRENT PERMITS FOR THE OXIDE TAILINGS
  
 There are no current operating permits for the mining and exploitation of the oxide tailings. However, a conditionally approved Environmental Impact Statement (EIS) (Manifestación de Impacto Ambiental [MIA]) for the exploitation and associated transmission line is in place for the Avino mine site where the tailings are located. Changes to the operating methods may be required if mining of the tailings was not included in the original mining plan. Based on this information, revisions to the permits will be required. If new operating permits are required, an EIA and EIS (MIA) will be mandatory.
  
 20.2.2 CURRENT PERMITS
  
 In order to obtain an authorization regarding environmental impact matters, Avino must prepare an EIS or MIA. Avino prepared an EIS, known as “Manifestación de Impacto Ambiental, modalidad Particular” (MIA-P) for the San Gonzalo Mine and submitted it to the MENR in August of 2008. The applicable regulations fall under federal jurisdiction, Article 28, sections II, III, and VII of the LGEEPA and the Reglamento en Materia de Evaluacion del Impacto Ambiental (REIA), sections K, L, and O (Environmental Impact Assessment Matter Regulation).
  
 Given the planned activities for the site, the Ministry also required an assessment in “Environmental Impact Matter for Change of Land Use” (Materia de Impacto Ambiental para el Cambio de Uso de Suelo) for forested areas and mining infrastructure and electrification, for a surface area of 9.08 ha.
  
 The authorization from the Ministry also requires the mine to present mitigation measures for all potential environmental impacts, as per Article 30, LGEEPA and Article 44, REIA, which Avino detailed in its EIS to the authorities.
  
 Based on the information provided by Avino to the Mexican authorities, a conditional authorization was granted, subject to additional prevention and mitigation measures in order to avoid, minimize, or compensate for any environmental impacts during the different stages of the adjacent San Gonzalo Mine (Article 35, section II, LGEEPA), which include an assessment of the “Environmental Impact Matter for Change of Land Use” described above. This permit is valid for 11 years from the date it was issued, to perform various activities on site. Any modification to the Project must be sent to the MENR in writing before commencing changes.
  
 Aside from complying with all prevention, protection, control, and mitigation measures laid out in the proposed MIA-P, Avino must develop an Environmental Quality Monitoring Program (EQMP) or Programa de Seguimiento de la Calidad Ambiental. The proposed EQMP must be presented to the MENR within six months of receiving the conditional authorization. Once the MENR has assessed the monitoring program, Avino needs to deliver progress reports semi-annually for a period of at least five years. Lastly, Avino must obtain proper authorization from the MENR for “Change of Land Use” as well as the corresponding “Change of Use for Forested Ground to Mining Infrastructure”.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-4
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 It is important to note that the current conditional authorization can be cancelled for many reasons; one of them includes improper disposal of liquid/solid waste (hazardous or non-hazardous).
  
 A second permit for “Change of Forest Land Use to Mining Infrastructure” (Cambio de Utilización de Terreno Forestal a Infraestructura Minera) was requested to the SEMARNAT and granted in September of 2008 for the adjacent San Gonzalo Mine. The corresponding legislation is Article 62, section IX of the Ley General de Desarrollo Forestal Sustentable (General Law for Sustainable Forest Development) and Article 27 of the Regulation. In addition, the Official Mexican Standards NOM-060-SEMARNAT-1994 and NOM-061-SEMARNAT-1994 must be adhered to. As per the authorization, Avino must complete its change in land use within 18 months of the date of the permit.
  
 20.2.3 APPLICABLE LEGISLATION
  
 In order to remain in compliance with current permits, the following eight applicable Official Mexican Standards for the Project must be complied with:
  
 	  
	 ·
	Official Mexican Standards NOM-001-SEMARNAT-1996, which establishes the maximum limits allowed for contaminants in wastewater discharges in national waters and goods
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-041-SEMARNAT-1999, which establishes the maximum limits allowed for the emission of polluted gas generated from the exhaust pipe of automotive vehicles circulating, which utilize gas as fuel
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-043-SEMARNAT-1993, which establishes the maximum levels allowed for emissions from fixed sources of solid particles to the atmosphere
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-045-SEMARNAT-1996, which establishes the maximum levels of emission (smokes opacity) generated from automotive vehicles circulating, which utilize diesel or mixtures that include diesel as fuel
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-052-SEMARNAT-2005, which establishes the characteristics, the process of identification, classification, and listing of hazardous waste
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-054-SEMARNAT-1993, which establishes the procedure to determine the incompatibility between two or more types of residues considered as harmful by NOM-052-SEMARNAT-2005
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-059-SEMARNAT-2001, which regulates the environmental protection of Mexico’s native species of wild flora and fauna and specifications for their inclusion, exclusion, or change-list of species in risk
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-060-SEMARNAT-1994, which establishes protection measures for forestry grounds.

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-5
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 In addition, other Official Mexican Standards regarding change in land use and mining must be followed and may include:
  
 	  
	 ·
	Official Mexican Standard NOM-061-SEMARNAT-1994, which refers to the specifications to mitigate the adverse effects caused to the Wild Animals and Uncultivated Vegetation as a result of the forestry utilization, and which nomenclature was modified
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-062-SEMARNAT-1994, which establishes specifications to mitigate adverse effects on biodiversity that are caused by change of land use in forested areas
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-120-SEMARNAT-1997, which establishes environmental protection specifications for mining exploration activities in dry and temperate climate regions
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-141-SEMARNAT-2003, which establishes requirements for tailings characterization and specifications and criteria for site preparation, design, construction, operation, and post-operation of tailings dams.

 
 
 
 
 
 
 
 
 
 
 
 
    
 Dependent on the mining plan, additional Official Mexican Standards for mining operations will also be required for the Project:
  
 	  
	 ·
	Official Mexican Standard NOM-147-SEMARNAT/SSA1-2004, which establishes criteria for determining the concentrations of remediation of soils contaminated with arsenic, barium, beryllium, cadmium, hexavalent chromium, mercury, nickel, silver, lead, selenium, thallium, and/or vanadium; published in the Official Gazette on March 2, 2007
	  
	  
	  

	  
	 ·
	Draft Official Mexican Standard PROY-NOM-XXX-SEMARNAT-2009, which establishes the elements and procedures to implement management plans for mining waste
	  
	  
	  

	  
	 ·
	Draft Official Mexican Standard NOM-155-SEMARNAT-2007, which establishes environmental protection requirements for systems leaching gold and silver ores
	  
	  
	  

	  
	 ·
	General Law for the Prevention and Management of Waste (Ley General para la Prevención y Gestión Integral de los Residuos [LGPGIR]) and applicable regulations, which regulated the following registrations and authorizations:

 
 
 
 
 
 
 
 
 
 
 
 
  
 	  
	 1. 
	Hazardous Waste Generator's Registration and other compliance documents such as Manifest, Monthly Log of Hazardous Waste Generation; Ecological Waybills for the Importation and/or Exportation of Hazardous Materials and Wastes; Semi-annual Report on Hazardous Wastes Sent to Recycling, Treatment or Final Disposition; and Accidental Hazardous Waste Spill Manifest
	  
	  
	  

	  
	 2. 
	LGEEPA

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-6
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 	  
	 ·
	Official Mexican Standard NOM-023-STPS-2003, which establishes standards for work in mines and health and safety conditions at these sites
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-055-SEMARNAT-2003, which establishes the requirements to be met by sites that will use a hazardous waste landfill
	  
	  
	  

	  
	 ·
	Official Mexican Standard NOM-147-SEMARNAT/SSA1-2004, which establishes criteria for determining the concentrations of remediation of soils contaminated by arsenic, barium, beryllium, cadmium, and chromium.

 
 
 
 
 
 
 
 
 
 
 
 
    
 20.3 ENVIRONMENTAL MONITORING AND REPORTING
  
 The conditional authorization sets out the requirements for environmental monitoring and reporting, on a semi-annual basis, for a minimum of five years. Details are provided in Section 20.2.
  
 20.4 ENVIRONMENTAL MANAGEMENT
  
 Environmental liabilities (pasivos ambientales) of brownfields, or site recycling as it is called within the Mexican environmental legislation, are regulated by Articles 68, 69, and 70 of the Ley General Para la Prevención y Gestión Integral de Residuos (LGPyGIR) or General Law for the Prevention and Comprehensive Management of Waste. It is based on the “polluter pay” principle, according to the LGEEPA, and the LGPyGIR. The federal government coordinates with both provincial and municipal authorities to manage the environmental liabilities, whether the sites are orphaned or not. The LGPyGIR requires complete clean-up of contaminated sites.
  
 20.5 WATER MANAGEMENT
  
 Fresh water for the Project is available from a well drilled in 1996, west of the mine site, and surface water from a dam, which is divided 60%/40% with the town of Panuco de Coronado. The Project has previously been charged annually for water use. Piping infrastructure from these water sources is still in place.
  
 Additional water was also obtained from underground workings and re-circulation from the tailings thickener and tailings dam. There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings is ongoing prior to use, depending on the water quality.
  
 20.6 SULPHIDE TAILINGS MANAGEMENT
  
 ABA tests have indicated that mild acid generation may already have started on the tailings dam. A gap analysis and additional tests to further characterize current conditions of the tailings should be completed to properly design a tailings management plan. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	20-7
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 Three preliminary options have been identified for the management of the sulphide tailings:
  
 	  
	 ·
	reprocessing the tailings
	  
	  
	  

	  
	 ·
	retreating of the tailings on the heap
	  
	  
	  

	  
	 ·
	re-location and treatment for remediation.

 
 
 
 
 
 
 
 
 
 
 
 
    
 The feasibility of these options is not known at this stage.
  
 The absence of complete sulphide tailings metallurgical information makes identification of the feasibility of the options difficult. A detailed trade-off study should be undertaken to characterize current conditions of the tailings and to determine whether the retreatment of this material would contribute to the profitability of the Project. However, at this stage, only limited metallurgical test data is available, since no detailed metallurgical test work was undertaken on this material during the MMI 2004 test program.
  
 Alternatively, the treatment of the sulphide tailings for gold recovery will afford an opportunity to recover silver and gold from the material as well as treating this material with the lime to ensure that this material will not be a net acid producer. Indications are that the sulphide tailings will also require treatment for environmental remediation purposes in the future. These costs could be partially or completely off-set by treating this material separately or together with the oxide material by the heap leach process.
  
 Re-locating the sulphide tailings may afford a more expedient option to address this potential environmental problem. For the purposes of this Technical Report, it will be assumed that the sulphide tailings will be moved to another location northeast of the proposed site for the leach pad.
  
 20.7 MINE CLOSURE AND RECLAMATION
  
 An updated mine closure plan and reclamation will be required for the Project. The mine closure plan should include information such as:
  
 	  
	 ·
	justification for the closure plan considering technical, environmental, and legal aspects
	  
	  
	  

	  
	 ·
	objectives and how they will be met
	  
	  
	  

	  
	 ·
	photo evidence and details of the environmental situation prior to commencing closure activities
	  
	  
	  

	  
	 ·
	schedule of activities
	  
	  
	  

	  
	 ·
	the progressive reclamation of the site during the life of the operation

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-8
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 	  
	 ·
	the reclamation and re-vegetation of the surface disturbances wherever practicable
	  
	  
	  

	  
	 ·
	a cost estimate of the work required to close and reclaim the mine
	  
	  
	  

	  
	 ·
	a plan for ongoing and post-closure monitoring and reporting at the site.

 
 
 
 
 
 
 
 
 
 
 
 
    
 No cost estimates have been generated at this time to ensure the Project meets the environmental requirements once the processing of the heap material has been terminated.
  
 As per federal regulations, under LGEEPA, both the SEMARNAT and Procuraduría Federal de Proteccíon al Ambiente (PROFEPA) (Federal Attorney for Environmental Protection) ministries require Avino to present in its first semi-annual report for a General Plan to Remediate the Site dates, activities, techniques, and costs that will guarantee restoration of affected areas, considering complete reforestation of impacted sites, removal of foundations and infrastructure that are no longer useful, roads that no longer have any use, removal of all rubbish and properly dispose of them, closing off adits that are no longer needed, and restoration of the tailings facility when its operational life is finished. Avino will also need to present a reforestation program for the entire surface area affected during mining operations. This program will include caveats to safeguard flora and fauna.
  
 20.8 SOCIO-ECONOMIC AND COMMUNITY CONSIDERATIONS
  
 This socio-economic section of the Technical Report:
  
 	  
	 ·
	identifies communities that may potentially be affected by the development of the Project
	  
	  
	  

	  
	 ·
	identifies potential positive and adverse effects of the Project on local communities
	  
	  
	  

	  
	 ·
	advises on further study requirements.

 
 
 
 
 
 
 
 
 
 
 
 
    
 20.8.1 PROJECT LOCATION
  
 The Project is located approximately 82 km northeast of the City of Durango, in the state of Durango. The Property lies between the communities of Panuco de Coronado and San Jose de Avino.
  
 20.8.2 CONSULTATION WITH COMMUNITIES
  
 The community is currently being consulted on a regular basis in conjunction with respect to both the dry stack tailings project and the fresh-water requirements for local agriculture. In addition, Avino provides a number of resources for schools and churches within the adjacent towns. A list of activities and related costs are summarized in Table 20.5 to Table 20.12. 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	20-9
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
      
 Table 20.5 Apoyos Realizados en Zaragoza, 2017
  
 	 Unidad
	 Consepto
	 Costo
(MXN$)

		 Apoyo del dia del niño primaria y Kinder
	 4,010

	 60 pza
	 Costal de cemento iglesia
	 10,200

	  
	 Acondicionamiento de baño presidencia
	 7,000

	  
	 Tablets
	 16,000

	  
	 Material deportivo secundaria
	 3,000

	  
	 Material didactico educacion inicial
	 4,000

	  
	 limpia de basureros
	
	  
	 Emparejado de calles
	 29,000

	  
	 Total
	 73,210

 
 
 
 
 
 
 
 
   
 Table 20.6 Apoyos Realizados en Avino, 2017
  
 	 Unidad
	 Consepto
	 Costo
(MXN$)

	  
	 Apoyo del dia del niño primaria y Kinder
	 9,779

	  
	 Pintura para la iglesia
	 12,713

	  
	 Regalos dia del padre
	 12,000

	  
	 50% pago de recibo del energia del pozo
	 11,000

	  
	 Cople dresen 4"
	 900

	  
	 Instalacion de soket de medidor del pozo
	 500

	  
	 Tablet graduaciones
	 13,000

	  
	 Bastones  y sillas de ruedas
	 20,000

	  
	 Emparejado de calles
	 29,000

	  
	 Total
	 108,892

 
 
 
 
 
 
 
 
   
 Table 20.7 Apoyos Realizados en Zaragoza, 2018
  
 	 Uniad
	 Consepto
	 Costo
(MXN$)

	  
	 Apoyo del dia del niño primaria y Kinder
	 3,900

	 4 lata
	 Pintura acrilica iglesia
	 8,727

	 lote
	 Material par construccion de porton primaria
	 6,791

	  
	 Apoyo para la polvora
	 3,000

	  
	 Apoyo para dia de las madres
	 2,500

	  
	 Regalos de graduacion primaria
	 1,700

	  
	 Limpia de basureros
	 4,000

	  
	 Brecha para alambrado para recuperacion de pastos 
	 10,000

	  
	 Aguinaldo posadas
	 3,900

	  
	 Total
	 44,518

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	20-10
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 20.8 Apoyos Realizados en Avino, 2018
  
 	 Uniad
	 Consepto
	 Costo
(MXN$)

	  
	 Apoyo del dia del niño primaria y Kinder
	 3,900

	  
	 Cuetes para la iglesia
	 1,400

	  
	 Apoyo para el dia de las madres
	 2,500

	  
	 Desmonte en area de panteon
	 2,000

	  
	 Desmonte y emparejado del camino al ranchito
	 6,000

	  
	 Desmonte y aplanillado del ranchito
	 7,000

	  
	 Limpieza del campo de beibol
	 2,000

	  
	 Mantenimiento a caminos de parcelas
	 18,000

	  
	 Aguinaldo posadas
	 3,900

	  
	 Total
	 46,700

 
 
 
 
 
 
 
 
   
 Table 20.9 Apoyos Realizados en Panuco, 2018
  
 	 Unidad
	 Consepto
	 Costo
(MXN$)

	 Lote
	 Apoyo de $ 3,000.00 anual por héctarea de ocupación temporal para ayuda de la comunidad
	 180,000

	 Lote
	 Agua de la mina San Gonzalo para abrevaderos (Incluye bomba, transformador, manguera, conexiones, etc.)
	 188,265

			
	  
	 Total
	 368,265

 
 
 
 
 
 
 
 
   
 Table 20.10 Apoyos Realizados en Zaragoza, 2019
  
 	 Uniad
	 Consepto
	 Costo
(MXN$)

	  
	 Apoyo del dia del niño primaria y Kinder
	 3,900

	 4 lata
	 Pintura acrilica iglesia
	 8,727

	  
	 Apoyo para la polvora
	 3,000

	  
	 Apoyo para dia de las madres
	 2,500

	  
	 Limpia de basureros
	 5,000

	  
	 Emparejado de calles
	 10,000

	  
	 Apoyo para fiestas de septiembre
	 1,000

	  
	 Aguinaldo posadas
	 3,900

	  
	 Total
	 38,027

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	20-11
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 20.11 Apoyos Realizados en Avino, 2019
  
 	 Uniad
	 Consepto
	 Costo
(MXN$)

	  
	 Apoyo del dia del niño primaria y Kinder
	 3,900

	  
	 Polbora para la iglesia
	 3,000

	  
	 Apoyo para el dia de las madres
	 1,000

	  
	 Construcion de abrebadero
	 40,000

	  
	 Camisetas para equipo de basebol
	 2,000

	  
	 Instalacion de linea de tuberia de 3" para agua
	 260,000

	  
	 Limpieza del campo de beibol
	 2,000

	  
	 Limpieza del Basurero
	 1,000

	  
	 Mantenimiento a pozo de agua potable
	 5,000

	  
	 Mantenimiento a caminos de parcelas
	 20,000

	  
	 Refacciones para lineas de agua potable
	 15,000

	  
	 Tuberia de  2" para ampliacion de red agua
	 15,000

	  
	 Aguinaldo posadas
	 3,900

	  
	 Total
	 371,800

 
 
 
 
 
 
 
 
   
 Table 20.12 Apoyos Realizados en Panuco, 2019
  
 	 Unidad
	 Consepto
	 Costo
(MXN$)

	 Lote
	 Apoyo de $ 3,000.00 anual por héctarea de ocupación temporal para ayuda de la comunidad
	 180,000

		 Agunaldos para la secundaria
	 3,000

		 Apoyo con la Ambulacia para carrera
	 1,000

		 Donacion de Bomba de agua , arrancador y tuberia para abrebadero
	 80,000

		 Emparejado de calles y caminos
	 20,000

		 Recipiente para agua
	 50,000

		 Limpieza del Basurero
	 2,000

		 Reparacion de bordos de abrebaderos
	 66,000

	  
	 Total
	 402,000

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	20-12
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 The implementation of an effective community engagement program is fundamental to the successful environmental permitting of mining projects. A comprehensive community engagement program should be initiated as soon as possible. Consultation will include addressing concerns of the heap-leach pile that may be present within or adjacent to the Property.
  
 Consultation and the development of a working relationship with local communities typically involves the development of a series of agreements that lay the groundwork for conversations. These include:
  
 	  
	 ·
	memorandums of understanding
	  
	  
	  

	  
	 ·
	protocol agreements
	  
	  
	  

	  
	 ·
	community consultation / participation agreements.

 
 
 
 
 
 
 
 
 
 
 
 
    
 As project exploration and development proceeds, other agreements will become necessary, including:
  
 	  
	 ·
	socio-economic/community economic benefits agreements
	  
	  
	  

	  
	 ·
	environmental monitoring agreements
	  
	  
	  

	  
	 ·
	training agreements
	  
	  
	  

	  
	 ·
	accommodation/impact benefit agreements.

 
 
 
 
 
 
 
 
 
 
 
 
   
 POTENTIAL POSITIVE EFFECTS ON LOCAL COMMUNITIES
  
 Potential positive effects of the proposed project development include:
  
 	  
	 ·
	long-term, meaningful employment in mining operations and related positions (e.g., environmental monitors, service industry sector)
	  
	  
	  

	  
	 ·
	economic development and contract opportunities for local communities (existing and new businesses), and community infrastructure improvements.

 
 
 
 
 
 
 
 
 
 
 
 
    
 POTENTIAL ADVERSE EFFECTS ON LOCAL COMMUNITIES
  
 For potential adverse effects of the proposed project development, it will be assumed that the sulphide tailings will be moved to another location northeast of the proposed site for the leach pad. Again, it should also be mentioned that this proposed site is very close to the town of San Jose de Avino, and this may result in objections from the local community.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	20-13
	

	 

 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	21.0 CAPITAL AND OPERATING COST ESTIMATES

 
 
 
    
21.1 AVINO VEINS
 
  
 Avino is currently conducting mining activity, including mineral processing, on the materials from the ET Mine. There is no cost estimate applicable for the on-going operations and all costs below are based on actual expenditure, excluding the proposed tailings reprocessing project completed in 2017 for the PEA study.
  
 Avino has not based any of its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts. 
  
 21.1.1 CAPITAL COSTS
  
 The actual capital expenditures to date on the Avino Vein and historical stockpiles and San Gonzalo Vein are summarized in Table 21.1 and Table 21.2, respectively. The San Gonzalo Mine ceased its operation at the end of 2019.
  
 Mine and mill capital costs were mainly attributed to equipment purchases and construction and site upgrading.
  
 Table 21.1 Capital Costs for the ET Mine and Historical Stockpiles (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Office Furniture
	 6,774
	 7,284
	 12,657
	 31,468

	 Computer Equipment
	 4,846
	 11,635
	 57,807
	 19,790

	 Mill Machinery and Processing Equipment
	 29,182
	 646,024
	 5,856,952
	 1,507,709

	 Mine Machinery and Transportation Equipment
	 22,721
	 150,023
	 864,697
	 826,298

	 Buildings and Construction
	 877,797
	 1,817,341
	 855,731
	 2,863,712

	 ET Mineral Property – Avino
	 28,495
	  106,395
	 692,992
	 800,606

	 Total Capital Costs
	 969,815
	 2,738,702
	 8,340,836
	 6,049,583

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	21-1
	

	 

 
 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 21.2 Capital Costs for the San Gonzalo Mine (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Office Furniture
	 -
	 862
	 4,320
	 11,579

	 Computer Equipment
	 -
	 1,377
	 19,732
	 7,282

	 Mill Machinery and Processing Equipment
	 -
	 76,452
	 1,999,208
	 554,786

	 Mine Machinery and Transportation Equipment
	 -
	 17,754
	 295,155
	 304,050

	 Buildings and Construction
	 -
	 204,229
	 276,808
	 63,494

	 San Gonzalo Vein Mineral Property
	 -
	 6,455
	 336,270
	 430,721

	 Total Capital Costs
	 -
	 307,129
	 2,931,493
	 1,371,912

 
 
 
 
 
 
 
 
   
 21.1.2 OPERATING COSTS
  
 The mine and milling operating costs for processing materials from the ET Mine, historical stockpiles, and the San Gonzalo Mine are summarized in Table 21.3 to Table 21.5. The costs include operating and maintenance labour together with the operation‐associated consumable supplies. The cost for electrical power was included in the milling costs. The geological component was mostly related to technical labour. The San Gonzalo Mine ceased its operation at the end of 2019. Avino also ceased processing the materials from HAGS after Q1 2020.
  
 Table 21.3 Operating Costs for the ET Mine (US$)
  
 	 Description
	 Q1–Q3 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 4,966,974
	 8,777,422
	 7,169,065
	 6,481,920

	 Milling Cost
	 2,651,478
	 4,281,708
	 4,024,935
	 4,221,422

	 Geological and Other
	 2,809,488
	 3,571,538
	 3,447,220
	 3,253,354

	 Royalties
	 458,353
	 499,368
	 690,004
	 734,732

	 Depletion and Depreciation
	 1,677,638
	 2,552,149
	 1,598,581
	 1,396,967

	 Total Direct Costs
	 12,563,930
	 19,682,185
	 16,929,804
	 16,088,395

	 G&A
	 2,989,270
	 2,658,761
	 2,706,890
	 16,976,642

	 Total Operating Costs
	 15,553,200
	 22,340,946
	 19,636,694
	 33,065,037

 
 
 
 
 
 
 
 
   
 
 Source: Avino
 Note: G&A – general & administrative  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-2
	

	 

 
 
 
 
 
 
 
 
 
 
 
    
 	 
	 

 
 
 
 
      
 Table 21.4 Operating Costs for the Historical Stockpile Materials (US$)
  
 	 Description
	 Q1 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 79,620
	 505,341
	 269,565
	 -

	 Milling Cost
	 392,075
	 4,210,514
	 1,667,595
	 -

	 Geological and Other
	 104,793
	 857,843
	 353,026
	 -

	 Royalties
	 19,141
	 228,241
	 0
	 -

	 Depletion and Depreciation
	 14,409
	 416,861
	 247,834
	 -

	 Total Direct Costs
	 610,038
	 6,218,800
	 2,538,020
	 -

	 G&A
	 136,547
	 1,175,291
	 354,902
	 -

	 Total Operating Costs
	 746,585
	 7,394,091
	 2,892,922
	 -

 
 
 
 
 
 
 
 
   
 Source: Avino 
  
 Table 21.5 Error! No sequence specified. Operating Costs for the San Gonzalo Mine (US$)
   
 	 Description
	 Q1-Q3 2020
	 2019
	 2018
	 2017

	 Mining Cost
	 -
	 4,208,889
	 4,953,380
	 3,615,976

	 Milling Cost
	 -
	 725,350
	 1,028,396
	 596,656

	 Geological and Other
	 -
	 82,766
	 1,015,950
	 644,784

	 Royalties
	 -
	 0
	 0
	 0

	 Depletion and Depreciation
	 -
	 711,145
	 1,384,274
	 1,160,319

	 Total Direct Costs
	 -
	 5,728,150
	 8,382,000
	 6,017,735

	 G&A
	 -
	 448,775
	 1,133,698
	 5,738,873

	 Total Operating Costs
	 -
	 6,176,925
	 9,515,698
	 11,756,608

 
 
 
 
 
 
 
 
   
 Source: Avino 
  
 21.2 TAILINGS RESOURCES
 
21.2.1 OXIDE TAILINGS
  
 The capital costs and operating costs for retreating the oxide tailings portion of the Property, including reclaiming the oxide tailings and constructing the heap leach pad and the treatment facilities, were estimated and reported in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017.
  
 The estimated capital cost was US$28.8 million (US$24.4 million of initial capital plus US$4.4 million sustaining capital), and the estimated operating cost was US$15.06/t.
  
 A PEA should not be considered to be a PFS or FS, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 The updated capital costs for the Project were developed based on 1,370 t/d or 500,000 t/a treatment of oxide tailings and construction of the heap leach pad in two phases.
  
 The updated capital cost estimate includes the following items:
  
 	  
	 ·
	An updated equipment list was generated with process engineering and new quotations for major equipment were obtained and replaced the previous costs.
	  
	  
	  

	  
	 ·
	Other items in the previous estimate in 2012 were escalated to reflect the 2016 Q4 costs.

 
 
 
 
 
 
 
 
 
 
    
 21.2.2 BASIS OF ESTIMATE
  
 The estimate was a PEA, Class IV estimate prepared in accordance with industry standard. The accuracy of the estimate is -25%/+40%.
  
 PRICING AND CURRENCY
  
 This PEA estimate was prepared with a base date of Q4 2016 and had not included any escalation beyond this date.
  
 For major equipment, costing was based on budgetary quotations from vendors. Other mechanical equipment costs were based on in-house data.
  
 All capital costs are expressed in US dollars. No provision was made for fluctuations in the currency exchange rates.
  
 The currency exchange rates used in the estimate are shown in Table 21.6.
  
 Table 21.6 Currency Exchange Rate
  
 	 Currency
	 Exchange

	 Cdn$1.00
	 US$0.7454

	 MXN$19.23
	 US$1.0000

 
 
 
 
 
 
 
 
   
 CONSTRUCTION LABOUR RATES
  
 A blended labour rate of US$13.50/h had been used and calculated based on the assessment of current labour conditions as compared to the labour rate of US$12.68 in the previous estimate from 2012.
  
 INFLATION RATE
  
 An inflation rate had been applied to reflect the PEA’s cost of the Project (Table 21.7). The escalation was based on the inflation rate (consumer prices) in Mexico (Trading Economics 2016 www.tradingeconomics.com).
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 Table 21.7 Inflation Rates in Mexico
  
 	 Year
	 Rate
(%)

	 2013
	 4.4

	 2014
	 5.6

	 2015
	 2.7

	 2016
	 3.5

 
 
 
 
 
 
 
 
   
 The average rate of inflation from 2012 to 2016 is 17%. Due to a combination of factors such as inflation, supply/demand, and other effects such as environmental, technological, and political changes, an escalation of 2% per year was applied in the updated capital cost estimate.
  
 DIRECT COSTS
  
 The equipment list had been updated based on the process flow diagram document. The cost of equipment was estimated based on changes to the process flow diagram.
  
 Disciplines other than mechanical equipment used costs from the previous cost estimate, with escalation applied only.
  
 INDIRECT COSTS
  
 All indirect costs were estimated based on a percentage of direct costs.
  
 Contingency and Risk
  
 A contingency assessment was completed and applied to various areas of the direct and indirect costs to meet anticipated, foreseen, but incompletely defined costs to satisfy the approved scope (Table 21.8).
  
 Table 21.8 Contingency by Area
  
 	 Contingency (%) by Area

	 12.0% of Mining, Agglomeration & Pad Loading

	 20.0% of Process Facilities

	 15.0% of Reagents / Auxiliary Services

	 15.0% of Buildings

	 30.0% of Leach Pad & Infrastructure

	 20.0% of Power Supply and Distribution

	 15.0% of EPCM & Vendor Representatives

	 15.0% of Freight & Construction Indirects

	 10.0% of Owners Costs

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-5
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 21.2.3 CAPITAL COST SUMMARY
  
 The capital cost for the Project had been assessed at US$28.8 million (including initial capital of US$24.4 million) and is summarized in Table 21.9.
  
 Table 21.9 Capital Cost Summary
  
 	 Item/Description
	 Total Initial
 Capital Cost
(US$000)
	 Total Sustaining
 Capital Cost
(US$000)

	 Direct Costs

	 Mining, Agglomeration, and Pad Loading
	 2,899
	 818

	 Process Facilities
	 3,979
	 -

	 Reagents/Auxiliary Services
	 526
	 -

	 Buildings
	 1,003
	 -

	 Leach Pad and Infrastructure
	 4,522
	 1,819

	 Power Supply and Distribution
	 1,571
	  

	 Total Direct Costs
	 14,500
	 2,637

	 Indirect Costs

	 Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives
	 2,338
	 386

	 Freight and Construction Indirects
	 2,898
	 430

	 Owner’s Costs
	 725
	 132

	 Contingency
	 3,902
	 767

	 Total Indirect Costs
	 9,863
	 1,715

	 Total Capital Costs
	 24,363
	 4,352

 
 
 
 
 
 
 
 
    
 MINING, AGGLOMERATION, AND PAD LOADING
  
 These costs included the facilities required for transferring the tailings from the existing tailing dam to the dump bin for oxide tailings and to the sulphide stockpile for the sulphide tailings, using the front-end loader and trucks. It also included the facilities required for the loading of the tailings into a bin to feed the conveyor to the agglomerator and included the agglomerator and its structural supports as well as the ancillary equipment. These costs also included the lime and cement silos.
  
 PROCESS FACILITIES
  
 The costs in this section included the various items of equipment, the tanks and their attendant pumps and agitators (if equipped), the Merrill-Crowe circuit (supplied as a modular package unit) and other miscellaneous process-related equipment. The process equipment was estimated as new-cost items.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-6
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 REAGENTS AND AUXILIARY SERVICES
  
 The costs derived for this section included reagent preparation and holding tanks and related equipment as well as civil construction costs. Water was assumed to be supplied from existing sources, namely from the dams and/or the wells. The costs shown for the fresh water supply included the refurbishing of the equipment and pumps. Safety items related to reagent handling had also been included.
  
 BUILDINGS
  
 The existing buildings and offices of the Avino mine site will be utilized for the Project. An allowance had been included for the refurbishment of these facilities. No costs had been allocated for the truck shop since it was intended to have a transport contractor to provide all the transportation needs for the Project. An allowance had been included for the procurement/refurbishing of laboratory equipment. The costs for constructing building to house the Merrill-Crowe circuit and reagent preparation related equipment had been included in the cost estimates.
  
 LEACH PAD AND INFRASTRUCTURE
  
 The leach pad with liners and a leak detection system will be constructed in two phases. The barren, pregnant and event solution ponds will all be lined. Also included is the cost of fencing off the plant area, the telephone system, sewage disposal, water supply and treatment, and fuel storage facilities. The existing fuel storage facilities will be used, but this will require refurbishing; this cost had been provided in the cost estimate.
  
 POWER SUPPLY AND DISTRIBUTION
  
 The refurbishing and expanding of the existing electrical power supply system, along with lighting, had been included in this section. It also included power to the agglomerated area and the Merrill-Crowe area.
  
 INDIRECT COSTS
  
 Indirect costs had been included as costs associated with construction services, consulting services, spare parts, and freight. Contingency had been included in the indirect costs.
  
 No sunk costs or taxes had been added to the capital cost estimate.
  
 21.2.4 OPERATING COSTS SUMMARY
  
 The LOM overall operating costs for the Project, including the costs for mining, process, and G&A, had been estimated to be approximately $15.06/t milled. Table 21.10 gives the LOM overall unit operating cost summary, based on a nominal processing rate of 1,370 t/d. The operating cost estimate was reported in US dollar with an exchange rate of Mexican Peso to US dollar at 19.23.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-7
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 Table 21.10 LOM Unit Operating Cost Estimate Summary
  
 	 Description
	 Personnel
	 Unit Cost
(US$/t treated)

	 Mining
	 15*
	 1.13

	 Process
	 39
	 12.53

	 G&A
	 11
	 1.41

	 Total Operating Cost
	 65
	 15.06

 
 
 
 
 
 
 
 
   
 Note: *Labour requirement for trucking of the tailings and waste is excluded as it will be by a contractor. 
  
 MINING OPERATING COSTS
  
 The mining production cycle consists of loading, hauling, and unloading; no drilling or blasting is required. Oxide tailing materials will be loaded using a 3.8 m3 wheel loader and hauled to the leach pad using a 24 t articulated truck. Sulphide tailing materials are treated as waste and will be hauled to the waste dump. Trucking of oxide and sulphide materials will be performed by a contractor (Tetra Tech 2018). Table 21.11 summarizes the mining operating costs.
  
 Table 21.11 Mining Cost Summary
  
 	 Mining Cost Item
	 LOM Cost*
 (US$ 000)
	 Unit Cost
(US$/t mined)

	 Loading
	 226
	 0.037

	 Hauling
	 969
	 0.160

	 Support Equipment
	 649
	 0.107

	 Ancillary Equipment
	 274
	 0.045

	 Dewatering
	 252
	 0.042

	 Labour
	 1,153
	 0.190

	 Total Costs
	 3,523
	 0.581

 
 
 
 
 
 
 
 
  
 Note: *Excludes pre-production costs 
  
 PROCESS OPERATING COST ESTIMATE
  
 The process operating cost for the Project included the costs for agglomeration, heap leaching, solution handling, and Merrill-Crowe refinery plant to produce a silver/gold doré.
  
 Table 21.12 gives the overall LOM process operating cost summary based on a nominal processing rate of 1,370 t/d with an availability of 90% and 365 operating days per year.
  
 The LOM annual average operating cost for the process facilities was estimated to be US$6.0 million per year or US$12.53/t of tailings treated.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	21-8
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 Table 21.12 LOM Process Operating Cost
  
 	 Description
	 Personnel
	 Annual Cost
(US$)
	 Unit Cost
(US$/t treated)

	 Process Manpower

	 Maintenance Labour
	 7
	 105,200
	 0.221

	 Operations Labour
	 25
	 318,100
	 0.667

	 Laboratory
	 7
	 89,600
	 0.188

	 Subtotal
	 39
	 512,900
	 1.076

	 Process Supplies

	 Operating Supplies
	 -
	 4,617,600
	 9.679

	 Maintenance Supplies
	 -
	 569,000
	 1.193

	 Power Supply
	 -
	 276,900
	 0.581

	 Subtotal 
	 -
	 5,463,500
	 11.453

	 Total Process Operating Costs
	 39
	 5,976,400
	 12.529

 
 
 
 
 
 
 
 
   
 The annual operating cost included the following:
  
 	  
	 ·
	staffing and maintenance manpower complements, and base salaries including an average burden of 60% (salary information is based on staffing complements, similar project salary costs as supplied by Avino, and Tetra Tech in-house data)
	  
	  
	  

	  
	 ·
	power consumption based on the estimated power drawn by the equipment
	  
	  
	  

	  
	 ·
	reagent consumption rates and associated costs based on test work results and recent prices received from reagent suppliers
	  
	  
	  

	  
	 ·
	estimated maintenance costs based on approximately 10% of equipment costs.

 
 
 
 
 
 
 
 
 
 
    
 G&A COST ESTIMATE
  
 Average LOM G&A operating cost was estimated to be US$672,000 per year or US$1.41/t of tailings treated. Table 21.13 and Table 21.14 detail the manpower requirement estimates, annual G&A expenses, and LOM unit G&A expenses operating cost.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	21-9
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
       
 Table 21.13 G&A Manpower Requirements
  
 	 Description
	 Manpower
	 Annual Cost/ Employee
(US$)
	 Total Annual Cost Payroll
(US$)
	 Unit Cost
(US$/t
milled)

	 General Manager
	 1
	 64,514
	 64,515
	 0.135

	 Administration Manager
	 1
	 35,574
	 35,574
	 0.075

	 First Aid Attendant
	 1
	 10,821
	 10,821
	 0.023

	 Purchasing Agent
	 1
	 17,380
	 17,380
	 0.036

	 Office Clerk
	 1
	 9,623
	 9,623
	 0.020

	 Computer Technician
	 1
	 9,623
	 9,623
	 0.020

	 Safety and Security
	 2
	 22,650
	 45,300
	 0.095

	 Warehouse Staff
	 2
	 10,663
	 21,325
	 0.045

	 Environmental Supervisor
	 1
	 22,650
	 22,650
	 0.047

	 Total G&A Manpower
	 11
	 -
	 236,811
	 0.496

 
 
 
 
 
 
 
 
  
 Table 21.14 G&A Expenses
  
 	 Description
	 Total Cost
(US$/a)
	 Unit Cost
(US$/t milled)

	 Communications
	 36,000
	 0.076

	 Consulting
	 30,000
	 0.063

	 Human Resources and Employee Costs
	 10,000
	 0.021

	 Vehicle Costs
	 15,000
	 0.032

	 Site Costs
	 24,000
	 0.050

	 Office Costs
	 24,000
	 0.050

	 Safety and Security
	 24,000
	 0.050

	 Travel
	 36,000
	 0.076

	 Water Costs
	 24,000
	 0.050

	 Housing Costs
	 30,000
	 0.063

	 Insurance
	 60,000
	 0.126

	 General & Others
	 50,000
	 0.105

	 Environmental

	 Consumables and Supplies
	 24,000
	 0.050

	 Permitting
	 24,000
	 0.050

	 Water Analysis
	 24,000
	 0.050

	 Total G&A Expenses
	 435,000
	 0.912

 
 
 
 
 
 
 
 
   
 21.2.5 SULPHIDE TAILINGS
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No capital or operating costs have been estimated for any potential mining activity on the sulphide tailings portion of the Property.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
     
 	 
	21-10
	

	 

 
 
 
 
 
 
 
 
 
 
    
 	 
	 

 
 
 
 
  
 	22.0 ECONOMIC ANALYSIS

 
 
 
    
 22.1 AVINO VEIN
  
 Avino is currently conducting mining activity, including mineral processing on the materials from the Avino Vein, ET Mine. There is no economic analysis performed on this vein.
  
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 22.2 TAILINGS RESOURCES
 
22.2.1 OXIDE TAILINGS
 
  
 In 2017, Tetra Tech prepared a PEA technical report for the silver and gold recoveries from the oxide tailings, entitled “Technical Report on the Avino Property”, dated April 11, 2017.
  
 A PEA should not be considered to be a PFS or FS, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Furthermore, there is no certainty that the conclusions or results reported in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  
 The report includes a preliminary economic evaluation of the oxide tailings retreatment based on a pre-tax financial model. Metal prices used in the base case for the preliminary economic evaluation were:
  
 	  
	 ·
	gold – US$1,250/oz
	  
	  
	  

	  
	 ·
	silver – US$18.50/oz.

 
 
 
 
 
 
 
 
 
 
    
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	22-1
	

	 

 
 
 
 
 
 
 
 
 
 
    
 	 
	 

 
 
 
 
       
 The pre-tax financial results were:
  
 	  
	 ·
	48.4% IRR
	  
	  
	  

	  
	 ·
	2.0-year payback period
	  
	  
	  

	  
	 ·
	US$40.5 million NPV at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
    
 Avino commissioned PwC in Vancouver to prepare the tax component of the model for the post-tax economic evaluation for this updated PEA with the inclusion of applicable income and mining taxes.
  
 The following post-tax financial results were calculated:
  
 	  
	 ·
	32% IRR
	  
	  
	  

	  
	 ·
	2.6-year payback period
	  
	  
	  

	  
	 ·
	US$22.2 million NPV at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
    
 The pre-tax financial model was established on a 100% equity basis, excluding debt financing and loan interest charges. The financial results for the base case are presented in Table 22.1.
  
 Table 22.1 Summary of Pre-tax Financial Results
  
 	 Description
	 Base Case

	 Gold Price (US$/oz)
	 1,250

	 Silver Price (US$/oz)
	 18.5

	 Total Payable Metal Value (US$000)
	 148,892

	 Refining (US$000)
	 6,123

	 Transportation, Insurance (US$000)
	 214

	 At-mine Revenue (US$000)
	 142,555

	 Operating Costs (US$000)
	 47,034

	 Operating Cash Flow (US$000)
	 95,521

	 Initial Capital (US$000)
	 24,363

	 Sustaining Capital (US$000)
	 4,352

	 Salvage Value (US$000)
	 -861

	 Reclamation Cost (US$000)
	 606

	 Total Capital Expenditure, Including Reclamation and Salvage (US$000)
	 28,460

	 Net Cash Flow (US$000)
	 67,061

	 Discounted Cash Flow NPV (US$000) at 5.00%
	 48,922

	 Discounted Cash Flow NPV (US$000) at 8.00%
	 40,554

	 Discounted Cash Flow NPV (US$000) at 10.00%
	 35,786

	 Payback (years)
	 2.0

	 IRR (%)
	 48.4

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	22-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 The post-tax financial results estimated by the 2017 PEA Update are summarized in Table 22.2.
  
 Table 22.2 Summary of Post-tax Financial Results
  
 	  
	 Unit
	 Base Case

	 Gold
	 US$/oz
	 1250.00

	 Silver
	 US$/oz
	 18.50

	 Undiscounted NCF
	 US$ million
	 40.743

	 NPV (at 5%)
	 US$ million
	 28.006

	 NPV (at 8%)
	 US$ million
	 22.187

	 NPV (at 10%)
	 US$ million
	 18.892

	 IRR
	 %
	 32.0

	 Payback
	 years
	 2.6

 
 
 
 
 
 
 
 
   
 22.2.2 SULPHIDE TAILINGS
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No economical assessments have been conducted for any potential mining activity on the sulphide tailings portion of the Property.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
        
 	 
	22-3
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
  
 	23.0 ADJACENT PROPERTIES

 
 
 
    
 There are no material properties adjacent to the Property.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	23-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	24.0 OTHER RELEVANT DATA AND INFORMATION

 
 
 
    
 There is no additional information or explanation necessary to make the Technical Report understandable and not misleading. 
  
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	24-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	25.0 INTERPRETATIONS AND CONCLUSIONS

 
 
 
    
25.1 GEOLOGY
 
  
 The Property is located in Durango State in North Central Mexico, within the Sierra Madre Silver Belt, and 82 km northeast of Durango City. The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha.
  
 The Property is located within a large caldera, which hosts numerous epithermal veins and breccias, grading into a “near porphyry” environment. The dominant rock types in the region of the Avino Property include andesitic, rhyolitic, and trachytic pyroclastic rocks. The area was intruded by monzonite dykes and stocks, which appear to be related to mineralization. Silver- and gold-bearing veins crosscut the various lithologies and are generally oriented north-northwest to south-southeast and northwest to southeast. The rocks have been weathered and leached in the upper sections from contact with atmospheric waters, resulting in an oxidized and a reduced, or sulphide, portion of the mine.
  
 Three deposits are present on the Property: the Avino Vein, the San Gonzalo Vein, and the tailings dam (which includes an oxide and a sulphide portion). Current Mineral Resource estimates are reported in this study for the Avino and San Gonzalo Veins, as well as the oxide tailings.
  
 25.2 RESOURCE ESTIMATES
  
 The Mineral Resources of the Property are summarized in Table 14.1.
  
 25.3 MINERAL PROCESSING
  
 Avino is currently conducting mining activities on the Avino Vein at the flotation processing plant at the Avino mine site. Production decisions for both the existing operation and the San Gonzalo Mine were being made without Mineral Reserves or any studies of economic viability that have been prepared in accordance with NI 43-101. As a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
      
 	 
	25-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 For the oxide tailings, the preliminary test results indicate that the tailings samples responded well to cyanide leaching, including column leaching treatment. The proposed gold and silver extraction was by heap leaching. Further evaluations are required to better understanding the metallurgical performance of the oxide tailings and the economics of reprocessing the tailings. 
  
 For the sulphide tailings, Avino is not currently conducting mining activity on the tailings. No recovery methods are currently proposed for the sulphide tailings. The gold and silver recovery from the sulphide tailings has been excluded from this study. 
  
 25.4 MINING
  
 Avino is currently conducting mining activity on the Avino Vein. Sublevel stoping mining method is used to feed the mill. Mining activities at the San Gonzalo Vein reached the ends of its current resources, and underground mining activities at the mine was stopped. However, the mine remains open for continued exploration at different levels of the mine (more information can be found in Section 16.0).
  
 The oxide tailings Mineral Resource is proposed to be mined/moved using a conventional truck/loader surface mining method. However, currently this plan has not been realized.
  
 25.5 CAPITAL AND OPERATING COSTS
 
25.5.1 AVINO VEIN 
  
 Avino is currently conducting mining activity on the Avino Vein. There is no cost estimate applicable and all costs are based on actual expenditures. The capital and operating costs are detailed in Section 21.0.
  
 25.5.2 TAILINGS RESOURCES
  
 The capital costs and operating costs for retreating the oxide tailings portion of the Property, including reclaiming the oxide tailings, constructing the heap leach pad, and the treatment facilities, were detailed in Section 21.0 and reported in the technical report entitled “Technical Report on the Avino Property”, dated April 11, 2017. The 2017 PEA Update results are summarized in the following subsections.
  
 CAPITAL COSTS
  
 The capital cost for the oxide tailing tailings part of the Property had been developed based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings. A total initial capital cost of US$24.4 million, including contingency, was estimated for the oxide tailings retreatment by the proposed heap leaching processing. The breakdown of the estimate is shown in Table 25.1. The exchange rate used for the cost estimates was Mexican Peso to US dollar at 19.23.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	25-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Table 25.1 Capital Cost Summary
  
 	 Item/Description
	 Total Initial
Capital Cost
(US$ 000)
	 Total Sustaining Capital Cost
(US$ 000)

	 Direct Costs

	 Mining, Agglomeration, and Pad Loading
	 2,899
	 818

	 Process Facilities
	 3,979
	 -

	 Reagents/Auxiliary Services
	 526
	 -

	 Buildings
	 1,003
	 -

	 Leach Pad and Infrastructure
	 4,522
	 1,819

	 Power Supply and Distribution
	 1,571
	  

	 Total Direct Costs
	 14,500
	 2,637

	 Indirect Costs

	 Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives
	 2,338
	 386

	 Freight and Construction Indirects
	 2,898
	 430

	 Owner’s Costs
	 725
	 132

	 Contingency
	 3,902
	 767

	 Total Indirect Costs
	 9,863
	 1,715

	 Total Capital Costs
	 24,363
	 4,352

 
 
 
 
 
 
 
 
   
 OPERATING COSTS
  
 The LOM overall operating cost for the oxide tailings retreatment, including costs for mining, process and G&A, had been estimated to be approximately US$15.06/t milled and is detailed in Table 25.2. The LOM overall unit operating cost estimate was based on a nominal processing rate of 1,370 t/d.
  
 Table 25.2 LOM Unit Operating Cost Estimate Summary
  
 	 Description
	 Personnel
	 Unit Cost
(US$/t treated)

	 Mining
	 15*
	 1.13

	 Process
	 39
	 12.53

	 G&A
	 11
	 1.41

	 Total Operating Cost
	 65
	 15.06

 
 
 
 
 
 
 
 
   
  Note: *Labour requirement for trucking of the tailings and waste was excluded as it will be by a contractor. 
  
 Avino is not currently conducting mining activity on the sulphide tailings portion of the Property. No capital or operating costs have been estimated for any potential mining activity on the sulphide tailings portion of the Property.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	25-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 25.6 ECONOMIC ANALYSIS
  
 Avino is currently conducting mining activity, including mineral processing, on the Avino Vein. There is no economic analysis performed on this vein.
  
 Avino has not based its production decisions on any FS or Mineral Reserves demonstrating economic and technical viability, and as a result, there is increased uncertainty and multiple technical and economic risks of failure, which are associated with these production decisions. These risks, among others, include areas that would be analyzed in more detail in an FS, such as applying economic analysis to Mineral Resources and Mineral Reserves, more detailed metallurgy, and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
  
 In 2017, Tetra Tech prepared an economic evaluation (“Technical Report on the Avino Property”, dated April 11, 2017) for the oxide tailings retreatment based on a pre-tax financial model. The assessment results are detailed in Section 22.0 and the technical report dated on April 11, 2017.
  
 The economic evaluation for the oxide tailings retreatment was based on a pre-tax financial model. Metal prices used in the base case were:
  
 	  
	 ·
	gold – US$1,250/oz
	  
	  
	  

	  
	 ·
	silver – US$18.50/oz.

 
 
 
 
 
 
 
 
 
 
    
 The pre-tax financial results were:
  
 	  
	 ·
	48.4% IRR
	  
	  
	  

	  
	 ·
	2.0-year payback period
	  
	  
	  

	  
	 ·
	US$40.5 million NPV at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
    
 Avino commissioned PwC in Mexico to prepare the tax component of the model for the post-tax economic evaluation for the updated PEA with the inclusion of applicable income and mining taxes.
  
 The following post-tax financial results were calculated:
  
 	  
	 ·
	32.0% IRR
	  
	  
	  

	  
	 ·
	2.6-year payback period
	  
	  
	  

	  
	 ·
	US$22.2 million NPV at an 8% discount rate.

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	25-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
  
 	26.0 RECOMMENDATIONS

 
 
 
    
26.1 GEOLOGY
 
  
 The QP’s recommendations are itemized in the following subsections. These recommendations are not required for continued mine development on the Property, and therefore, a cost estimate for this work is not provided.
  
 26.1.1 DATABASE MANAGEMENT
  
 Tetra Tech has the following recommendations regarding Avino database management:
  
 The drillhole and channel sampling database for both the Avino and San Gonzalo Veins has been consolidated. The QP recommends that the tailings sampling and QA/QC data be added.
  
 26.1.2 UNDERGROUND SAMPLING
  
 The QP has the following recommendations regarding Avino geology data and interpretation:
  
 The QP recommends that level sampling strategy at the Avino Vein be improved. Currently the development drifts bracketing the individual bodies are manually sampled across the width of the tunnels. 
  
 The Avino Vein system is very wide (in excess of 40 m in places) and channel sampling across the full width of the veins takes place during several episodes as development probes across the zone to establish the limit of mineralization. This episodic sampling creates the opportunity for gaps and bias in the sampling. The QP recommends that the drift on the footwall side of the Avino Vein system be driven in advance of the hanging wall drift along the locus of better mineralization (see Section 14.3.1).
  
 Figure 26‐1 illustrates the concept in the plan view on elevation 1,888 m. Previous channel sampling is superimposed on the current Avino Vein model, but previous development and level stoping is not shown to prevent confusion. A conceptual advanced drift along the best mineralized portion (footwall) of the vein system is shown, with clusters of fan drilled holes at 40 m intervals shown in plan. Once the limits of mineralization are determined by the fan drilling, a follow-behind hanging wall drift can driven along the predetermined stoping limit.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	26-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 Figure 26‐1 Proposed Drift and Drill Development Concept on 1888 elevation.
  
 	  
	 

 
 
 
 
 
 
 
 
 
 
  
 Advantages are: 
  
 	  
	 ·
	allow fans of short holes to be drilled at intervals (estimated 3 m to 40 m)
	  
	  
	  

	  
	 ·
	to provide advanced and balanced sample coverage
	  
	  
	  

	  
	 ·
	optimal positioning of hanging wall drift to preserve the geotechnical integrity of the hanging wall of the vein, and
	  
	  
	  

	  
	 ·
	allow the possibility of stoping on retreat (with improved safety and more planning flexibility, see Section 26.2.2).

 
 
 
 
 
 
 
 
 
 
    
 26.1.3 DENSITY SAMPLING AND ANALYSIS
  
 The QP recommends that Avino continues to develop the database for specific gravity data using drill cores. The QP also recommends that grab samples from controlled underground exposures (location, and lithology description) be used to supplement the data. The QP further recommends that some large samples be cut from the faces of the oxide tailings deposit weighed and measured to determine specific gravity for the deposit. 
  
 26.1.4 QA/QC SAMPLING
  
 The QP recommends that standards and blank submissions be included in the master database for the Property to avoid the difficulty of locating such data when it is resides in separate spreadsheet reports.
  
 The QP recommends that QA/QC performance graphs be updated on a monthly basis to allow questionable sample batches to be repeated timeously.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	26-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 26.1.5 BISMUTH
  
 Bismuth is a significant deleterious penalty element and should be assayed at the same rate as copper (including in channel samples) to provide detailed information for the mine planning at ET/San Luis.
  
 26.1.6 RESOURCE ESTIMATION
  
 An internal capacity to perform mineral resource estimation, using geostatistical methods should be developed. The SurpacTM software should provide the tools to be able to do this in the long term.
  
 26.1.7 EXPLORATION FOR THE WESTERN EXTENSION OF THE AVINO VEIN
  
 Horner (2017), in his recent structural geology report, concludes that the known portion of the Avino Vein system west of San Luis terminates on a post-mineralization fault and recommends that the extension to the system be investigated. The QP supports this investigation.
  
 26.2 MINING
 
26.2.1 LONG-TERM MINE PLANNING
  
 Tetra Tech recommends that Avino prepare a long-term mine plan based on the resource estimate.
  
 26.3 PROCESS
 
26.3.1 AVINO VEIN
 
  
 Avino is currently conducting mining activities on the Avino Vein, ET Mine, including metal recovery using a flotation process. Tetra Tech recommends that Avino further optimize the processing conditions, including metallurgical tests, to improve metallurgical performances for the Avino Vein mill feeds. Further metallurgical test work should be conducted to investigate separating bismuth from copper-gold-silver concentrate. The bismuth removal should reduce the impurity penalty; however, a trade-off study should also be required to assess copper, gold, and silver loss into the bismuth product and how to handle the high bismuth material. 
  
 The costs for the metallurgical tests are estimated to be approximately Cdn$80,000.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	26-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
       
 26.3.2 OXIDE AND SULPHIDE TAILINGS
  
 Further tests are recommended to evaluate the metallurgical performances of the tailings samples, including the sulphide tailings samples. The test work should be conducted on samples that better represent the tailings Mineral Resources. The test work should include:
  
 	  
	 ·
	head characterization and mineralogical determination
	  
	  
	  

	  
	 ·
	leaching condition optimization, including cyanide concentration, leaching retention time, agglomeration binding material types and dosages
	  
	  
	  

	  
	 ·
	determination of the effect of the particle size distribution on metal extraction and agglomeration
	  
	  
	  

	  
	 ·
	further confirmation of the effect of flotation pre-concentration on improving overall metal recovery
	  
	  
	  

	  
	 ·
	residual cyanide management tests, including residual cyanide management and valuable metal recoveries from the barren solution
	  
	  
	  

	  
	 ·
	further evaluations to compare heap leach vs. tank leach should be investigated.

 
 
 
 
 
 
 
 
 
 
    
 For the sulphide tailings, systematic test work should be conducted to effectively recover silver and gold values from the tailings, including co-processing of the sulphide tailings with the oxide tailings.
  
 The estimated costs for the test work, excluding sampling, is approximately Cdn$150,000.
  
 26.4 ENVIRONMENTAL
  
 The cost of permitting has not been considered at this stage of the oxide tailings project. Government agencies should be consulted prior to the permitting process to determine if current permits for the San Gonzalo Mine can been revised. The cost of expropriating agricultural land for the leach pad, and the cost of water, which would have to be redirected to the heap leach project but is currently used for agricultural purposes, have also not been assessed. Once the mine plan, site layout, and tailings management plan are further along and have definitive locations, the cost of these factors should be addressed. The cost for monitoring environmental effects post mine closure needs to be estimated.
  
 A detailed trade-off study should be undertaken to characterize current conditions of the sulphide tailings and to determine whether the re-treatment of this material would contribute to the profitability of the oxide tailings project.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	26-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 26.5 MINING OF SULPHIDE TAILINGS
  
 Potential for handling sulphide tailings as a mineralized material, rather than waste material, should be investigated based on appropriate metallurgical tests. Further optimization of the mine plan for the oxide tailings should be conducted.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	26-5
	

	 

 
 
 
 
 
 
 
 
 
 
   
 	 
	 

 
 
 
 
  
 	27.0 REFERENCES

 
 
 
    
 Audited Annual Financial Report & MD&A for the year ended December 31, 2015.
  
 Audited Annual Financial Report & MD&A for the year ended December 31, 2016.
  
 Avino Annual Reports www.avino.com.
  
 Avino Silver & Gold Mines Ltd., 2001. Internal Report – Avino Operating Records, October 2001.
  
 Avino Silver & Gold Mines Ltd., 2011a. News Release: Avino Reports Results of San Gonzalo Bulk Sample July 11, 2011. 
  
 Avino Silver & Gold Mines Ltd., 2011b. Consolidated Financial Statements for the years ended December 31, 2011 and 2010. Retrieved July 17, 2013 from www.avino.com. 
  
 Avino Silver & Gold Mines Ltd., 2012. Consolidated Financial Statements for the years ended December 31, 2012, 2011, and 2010. Retrieved July 17, 2013 from www.avino.com.
  
 Avino Silver & Gold Mines Ltd. 2013a. News Release: Avino Provides 2012 Year End Summary and Outlook for 2013, February 5, 2013.
  
 Avino Silver & Gold Mines Ltd., 2013b. Avino May Production Report June 6, 2013. Retrieved July 17, 2013 from www.avino.com.
  
 Avino Silver & Gold Mines Ltd., 2013c. Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2013 and 2012. Retrieved July 17, 2013 from www.avino.com.
  
 Avino Silver & Gold Mines Ltd. 2014. News Release: Avino 2013 Production Up 253% Over 2012 to 895,240 oz Silver Equivalent, January 20, 2014.
  
 Avino Silver & Gold Mines Ltd. 2015. News Release: Avino Production Up 49% Over 2013 to 1,342,150 oz Silver Equivalent, January 12, 2015.
  
 Avino Silver & Gold Mines Ltd. 2016a. News Release: Avino production up 116% over 2014 to 3,020,348 oz Silver Equivalent, January 18, 2016.
  
 Avino Silver & Gold Mines Ltd. 2016b. News Release: Avino Reports New Power Line Energized and Final Permits Received for New Tailings Storage Facility. June 13, 2016.
  
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	27-1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 Avino Silver & Gold Mines Ltd. 2016c. News Release: Avino Announces Extension of Concentrates Prepayment Agreement with Samsung C&T. June 29, 2016.
  
 Avino Silver & Gold Mines Ltd. 2017a. News Release: Avino Announces Fourth Quarter and Full Year 2016 Production Results from its Avino Property. January 17, 2017.
  
 Avino Silver & Gold Mines Ltd. 2017b. News Release: Avino Announces Q1 2017 Production Results. April 13, 2017.
  
 Avino Silver & Gold Mines Ltd., 2017c. News Release: Avino Silver and Gold Mines Provides Update on its Avino Property, May 8, 2017
  
 Avino Silver & Gold Mines Ltd., 2018a. News Release: Avino Announces Fourth Quarter and Full Year 2017 Production Results from its Avino Property, January 16, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018b. News Release: Avino Announces Results from its Current Exploration Drill Programs on the Chirumbo, Guadelupe and San Juventino Areas of the Avino Mine Property February 6, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018c. News Release: Avino Provides 2017 Year End Summary and Outlook for 2018, February 13, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018d. News Release: Avino Announces an Updated Mineral Resource Estimate at the Avino Property February 21, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018e. News Release: Avino Announces Financial Results for Fourth Quarter and Year End 2017, April 2, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018f. News Release: Avino Commissions Mill Circuit 4, June 7, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018g. Management’s Discussion and Analysis (MD&A) for the Six Months Ended June 30, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018h. Management’s Discussion and Analysis (MD&A) for the Nine Months Ended September 30, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018i. News Release: Avino Announces Q2 2018 Production Results, July 18, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018i. News Release: Avino Announces Further Extension of Concentrates Prepayment Agreement with Samsung C&T, November 30, 2018.
  
 Avino Silver & Gold Mines Ltd., 2018j. Management’s Discussion and Analysis (MD&A) for the Year Ended December 31, 2018.
  
 Avino Silver & Gold Mines Ltd., 2019a. News Release: Avino Announces Q4 and Full Year 2018 Production Results, January 17, 2019.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	27-2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Avino Silver & Gold Mines Ltd., 2019b. Management’s Discussion and Analysis (MD&A) for the Three Months Ended March 31, 2019.
  
 Avino Silver & Gold Mines Ltd., 2019c. Management’s Discussion and Analysis (MD&A) for the Six Months Ended June 30, 2019.
  
 Avino Silver & Gold Mines Ltd., 2019d. Management’s Discussion and Analysis (MD&A) for the Nine Months Ended September 30, 2019.
  
 Avino Silver & Gold Mines Ltd., 2019e. Management’s Discussion and Analysis (MD&A) for the Year Ended December 31, 2019.
  
 Avino Silver & Gold Mines Ltd., 2020a. News Release: Avino Announces Q4 and Full Year 2019 Production Results, January 16, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020b. Management’s Discussion and Analysis (MD&A) for the Three Months Ended March 31, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020c. Management’s Discussion and Analysis (MD&A) for the Six Months Ended June 30, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020d. News Release: Avino Announces Q2 2020 Production Results, July 17, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020e. Management’s Discussion and Analysis (MD&A) for the Nine Months Ended September 30, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020f. News Release: Avino Reports Q3 2020 Financial Results, November 9, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020g. Avino Mine Model, November 30, 2020.
  
 Avino Silver & Gold Mines Ltd., 2020h. Management’s Discussion and Analysis (MD&A) for the Year Ended December 31, 2020.
  
 Benitez, Sanchez, 1991. Memorandum: Informe Final de la Cubicacion de Presa de Jales. Prepared for Ing. Rene Cuellar Torres, Cia Minera Mexicana de Avino, S.A. de C.v. June 6, 1991, 5 pages.
  
 Bermúdez Fernández, Jesús, 2012. Legal agreement between Minerales de Avino, Sociedad Anónima de Capital Variable and Compañía Minera Mexicana de Avino, Sociedad Anónima de Capital Variable on the La Platosa Concession. Volume seven hundred and twenty-six/mbq* number fifteen thousand one hundred and ninety-seven. February 18, 2012, 14 pages.
  
 Emsley, J., 2003. Nature’s Building Blocks: an A-Z Guide to the Elements. Oxford University Press, 538 pages.
  
 Gallegos, J.I., 1960. Durango Colonial, 1563–1821, Mexico City: Editorial Jus, p. 78.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	27-3
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 González Olguin, Juan Manuel, 2017. Current title opinion prepared by Bufete González Olguin S.C. Law Firm for Avino Silver and Gold Mines, Ltd. February 3, 2017, 9 pages.
  
 Gunning, D., 2009. Resource Estimate on the San Gonzalo Vein – A Part of the Avino Mine, Durango, Mexico, for Avino Silver and Gold Mines Ltd. Prepared by Orequest. Effective date August 31, 2009.
  
 Hall, R., 2006. Technical Report: Tailings Retreatment – Process Option. Prepared by Ron Hall, Wardrop Engineering Inc. for Avino Silver & Gold Mines Ltd. March 31, 2006.
  
 Horner, J., 2017. Structural Study Avino Mine, Durango, Mexico – Intersection Avino-San Juventino. IC Consulenten Ziviltechniker GesmbH, Niederlassung Salzburg.
  
 Huang, J., 2003. Flotation and Cyanidation Scoping Tests and Specific Gravity. Project No. 0302303. Report prepared by John Huang, Process Research Associates Ltd. for Bryan Slim, MineStart Management Inc. March 28, 2003.
  
 Huang, J. and Tan, G., 2005. Metallurgical Test Work on Avino Tailings, Durango, Mexico. Project No, 0406407. Report prepared by John Huang and Gie Tan, Process Research Associates Ltd. for Bryan Slim, MineStart Management Inc. March 28, 2005.
  
 Index Mundi 2011 http://www.indexmundi.com/
  
 Paulter, J., 2006. Regional Exploration Evaluation and Recommendations. Unpublished internal report for Avino.
  
 QG Australia (Pty) Ltd., 2016. Amended Resource Estimte Update for the Avino Property Durango, Mexio. Prepared for Avino Silver & Gold Mines Ltd. October 27, 2016.
  
 R Core Team, 2013. R: A language and environment for statistical computing. R Foundation for Statistical Computing, Vienna, Austria. URL http://www.R-project.org/.
  
 Servicios Administratos Luismin, 1993. Unpublished Report on the Potential of the Avino Property. SA de CV, the engineering branch of Cía Minera de San Luis Exploration.
  
 SGS Canada Inc., 2020. An Investigation into Flotation Separation of Bismuth from Copper Cleaner Concentrate, Project 17945-01M, November 7 2020
  
 Slim, B., 2003. Tailings Valuation. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. November 2003.
  
 Slim, B., 2005a. Preliminary Feasibility. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. May 2005.
  
 Slim, B., 2005b. Tailings Valuation. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. May 2005.
  
 Slim, B., 2005c. A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. July 21, 2005.
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	27-4
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
    
 Slim, B., 2005d. A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. October 25, 2005.
  
 Tetra Tech, 2012. Technical Report on the Avino Property. Prepared for Avino Silver & Gold Mines Ltd. Effective Date: July 24, 2012. www.sedar.com
  
 Tetra Tech, 2013. Technical Report on the Avino Property. Prepared for Avino Silver & Gold Mines Ltd. Effective Date: July 19, 2013. www.sedar.com Document No. 1251920100-REP-R0001-02.1.
  
 Tetra Tech 2017. Technical Report on the Avino Property, Durango, Mexico. Prepared for Avino Silver & Gold Mines Ltd. Effective Date: April 11, 2017. www.sedar.com Document No. 735-1651920100-REP-R0001-03.
  
 Tetra Tech, 2018. Amended Mineral Resource Estimate Update for the Avino Property, Durango, Mexico. Prepared for Avino Silver & Gold Mined Ltd. February 21, 2018.
  
 Tetra Tech, 2019. Technical Memo - Process Plant, Avino Silver and Gold Mines Ltd., Durango, Mexico, September 20, 2019.
  
 Tetra Tech and QG Australia (Pty) Ltd, 2016. Amended Resource Estimate Update for the Avino Property. Prepared for Avino Silver & Gold Mines Ltd. Effective Date: October 27, 2016. www.sedar.com Document No. 1251920100-REP-R0001-02.1.
  
 VSE, 1977. Vancouver Stock Exchange Review. September 1979.
  
 VSE, 1977. Vancouver Stock Exchange Review. September 1979.
  
 Wikipedia Durango entry: https://en.wikipedia.org/wiki/Durango
  
 	 Avino Silver & Gold Mines Ltd.
		
	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	27-5
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	28.0 CERTIFICATES OF QUALIFIED PERSONS

 
 
 
  
  
  
  
   
   
 	 
	 28-1

	

	 

 
 
 
 
 
 
 
 
 
 
  
 	CERTIFICATE OF QUALIFIED PERSON

 
 
 
  
 I, Hassan Ghaffari, P.Eng., M.A.Sc. do hereby certify:
   
 	  
	 ·
	I am a Director of Metallurgy with Tetra Tech Inc. with a business address at Suite 1000, 10th Floor, 885 Dunsmuir Street, Vancouver, BC, V6C 1N5.
	  
	  
	  

	  
	 ·
	This certificate applies to the technical report entitled “Avino Silver & Gold Mines Ltd. Resource Estimate Update for the Avino Property, Durango, Mexico”, with an effective date of January 13, 2021 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I am a graduate of the University of Tehran (M.A.Sc., Mining Engineering, 1990) and the University of British Columbia (M.A.Sc., Mineral Process Engineering, 2004).
	  
	  
	  

	  
	 ·
	I am a member in good standing of the Engineers and Geoscientists British Columbia (#30408).
	  
	  
	  

	  
	 ·
	My relevant experience includes 30 years of experience in mining and mineral processing plant operation, engineering, project studies and management of various types of mineral processing, including hydrometallurgical mineral processing for porphyry mineral deposits.
	  
	  
	  

	  
	 ·
	I am a “Qualified Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) for those sections of the Technical Report that I am responsible for preparing.
	  
	  
	  

	  
	 ·
	I conducted a personal inspection of the Avino property on March 30, 2011; December 12, 2017; and from August 12 to 14, 2019.
	  
	  
	  

	  
	 ·
	I am responsible for Sections 1.0, 2.0, 3.0, 15.0, 18.0, 20.0, 21.0, 22.0, 24.0, 25.0, 26.0 and 27.0 (only references from sections for which I am responsible) of the Technical Report.
	  
	  
	  

	  
	 ·
	I am independent of Avino Silver & Gold Mines Ltd. as Independence is defined by Section 1.5 of NI 43-101.
	  
	  
	  

	  
	 ·
	I have had involvement with the Avino property that is the subject of the Technical Report, in acting as a Qualified Person for the “Amended Mineral Resource Estimate Update for the Avino Property, Durango, Mexico” with an effective date of February 21, 2018 and an amended date of December 19, 2018 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I have read NI 43-101 and the sections of the Technical Report that I am responsible for have been prepared in compliance with NI 43-101.
	  
	  
	  

	  
	 ·
	As of the date of this certificate, to the best of my knowledge, information and belief, the section of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.

 
 
 
 
 
 
 
 
 
 
      
 Signed and dated this 13th day of January, 2021
  
 	 “signed and stamped”
	  

	 Hassan Ghaffari, P.Eng., M.A.Sc. Director of Metallurgy
Tetra Tech Inc.
	  

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	CERTIFICATE OF QUALIFIED PERSON

 
 
 
  
 I, Jianhui (John) Huang, Ph.D., P.Eng., do hereby certify: 
  
 	  
	 ·
	I am a Senior Metallurgist with Tetra Tech Inc. with a business address at Suite 1000, 10th Floor, 885 Dunsmuir Street, Vancouver, British Columbia, V6C 1N5.
	  
	  
	  

	  
	 ·
	This certificate applies to the technical report entitled “Avino Silver & Gold Mines Ltd. Resource Estimate Update for the Avino Property, Durango, Mexico”, with an effective date of January 13, 2021 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I am a graduate of North-East University, China (B.Eng., 1982), Beijing General Research Institute for Non-ferrous Metals, China (M.Eng., 1988), and Birmingham University, United Kingdom (Ph.D., 2000).
	  
	  
	  

	  
	 ·
	I am a member in good standing of the Engineers and Geoscientists British Columbia (#30898).
	  
	  
	  

	  
	 ·
	My relevant experience includes over 34 years involvement in mineral processing for base metal ores, gold and silver ores, and rare metal ores, and mineral processing plant operation and engineering including hydrometallurgical mineral processing for porphyry mineral deposits.
	  
	  
	  

	  
	 ·
	I am a “Qualified Person” for purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) for those sections of the Technical Report that I am responsible for preparing.
	  
	  
	  

	  
	 ·
	I have not completed a personal inspection of the Property that is the subject of this Technical Report.
	  
	  
	  

	  
	 ·
	I am responsible for Sections 1.0, 13.0, 17.0, 19.0, 25.0, 26.0 (for matters related to metallurgy, process, product marketing and process/G&A operating costs) and 27.0 (only references from sections for which I am responsible) of the Technical Report.
	  
	  
	  

	  
	 ·
	I am independent of Avino Silver & Gold Mines Ltd. as Independence is defined by Section 1.5 of NI 43-101.
	  
	  
	  

	  
	 ·
	I have had involvement with the Avino property that is the subject of the Technical Report, in acting as a Qualified Person for the “Amended Mineral Resource Estimate Update for the Avino Property, Durango, Mexico” with an effective date of February 21, 2018 and an amended date of December 19, 2018 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I have read NI 43-101 and the sections of the Technical Report that I am responsible for have been prepared in compliance with NI 43-101.
	  
	  
	  

	  
	 ·
	As of the date of this certificate, to the best of my knowledge, information and belief, the section of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.

 
 
 
 
 
 
 
 
 
 
       
 Signed and dated this 13th day of January, 2021
  
 	 “signed and stamped”
	  

	 Jianhui (John) Huang, Ph.D., P.Eng.
Senior Metallurgist
Tetra Tech Inc.
	  

 
 
 
 
 
 
 
 
 
 
 
 
     
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	CERTIFICATE OF QUALIFIED PERSON

 
 
 
    
 I, Michael F. O’Brien, P.Geo., M.Sc., Pr.Sci.Nat., FAusIMM, do hereby certify:
  
 	  
	 ·
	I am an independent consultant and director of Red Pennant Geoscience a subsidiary of Red Pennant Communication Inc. a British Columbia Corporation, with a business address at 81‐1380 Pinetree Way, Coquitlam, BC, V3E 3S6.
	  
	  
	  

	  
	 ·
	This certificate applies to the technical report entitled “Avino Silver & Gold Mines Ltd. Resource Estimate Update for the Avino Property, Durango, Mexico”, with an effective date of January 13, 2021 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I am a graduate of the University of Natal, (B.Sc. Hons. Geology, 1978) and the University of the Witwatersrand (M.Sc. Engineering, 2002).
	  
	  
	  

	  
	 ·
	I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#41338).
	  
	  
	  

	  
	 ·
	I am a member in good standing of the South African Council for Natural Scientific Professions (South Africa, 400295/87). My relevant experience is 36 years of experience in operations, mineral project assessment and I have the experience relevant to Mineral Resource estimation of metal deposits. I have estimated Mineral Resources for greenstone-hosted gold, diatreme complex epithermal gold deposits, porphyry copper-gold, volcanogenic massive sulphide deposits and shear zone-hosted deposits. I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”).
	  
	  
	  

	  
	 ·
	My recent personal inspection of the Property was from June 12 to 15, 2017 and February 12 to 14, 2020.
	  
	  
	  

	  
	 ·
	I am responsible for Sections 1.0, 4.0, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, 11.0, 12.0, 14.0, 23.0, 25.0, 26.0 (for matters related to geology and resource estimate) and 27.0 (only references from sections for which I am responsible) of the Technical Report.
	  
	  
	  

	  
	 ·
	I am independent of Avino Silver & Gold Mines Ltd. as Independence is defined by Section 1.5 of NI 43-101.
	  
	  
	  

	  
	 ·
	I have had involvement with the Avino property that is the subject of the Technical Report, in acting as a Qualified Person for the “Amended Mineral Resource Estimate Update for the Avino Property, Durango, Mexico” with an effective date of February 21, 2018 and an amended date of December 19, 2018 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I have read NI 43-101 and the sections of the Technical Report that I am responsible for have been prepared in compliance with NI 43-101.
	  
	  
	  

	  
	 ·
	As of the date of this certificate, to the best of my knowledge, information and belief, the section of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.

 
 
 
 
 
 
 
 
 
 
   
 Signed and dated this 13th day of January, 2021
  
 	 “signed and stamped”
	  

	 Michael F. O’Brien,
 P.Geo., M.Sc., Pr.Sci.Nat., FAusIMM, FSAIMM
 Owner
 Red Pennant Communication Inc.
	  

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	CERTIFICATE OF QUALIFIED PERSON

 
 
 
   
 I, Barnard Foo. M.Eng. MBA, P. Eng., do hereby certify: 
  
 	  
	 ·
	I am a Senior Mining Engineer with Tetra Tech Inc. with a business address at Suite 1000, 10th Floor, 885 Dunsmuir Street, Vancouver, British Columbia, V6C 1N5.
	  
	  
	  

	  
	 ·
	This certificate applies to the technical report entitled “Avino Silver & Gold Mines Ltd. Resource Estimate Update for the Avino Property, Durango, Mexico”, with an effective date of January 13, 2021 (the “Technical Report”).
	  
	  
	  

	  
	 ·
	I am a graduate of:

 
 
 
 
 
 
 
 
 
 
    
 	  
	 1. 
	University of Northern British Columbia, Executive MBA, 2010
	  
	  
	  

	  
	 2. 
	University of British Columbia, M.Eng., Rock Mechanics, 2007
	  
	  
	  

	  
	 3. 
	Laurentian University, B.Eng., Mining Engineering, 1998

 
 
 
 
 
 
 
 
 
 
    
 	  
	 ·
	I am a registered Professional Engineer in Ontario (membership number 100052925)
	  
	  
	  

	  
	 ·
	I am familiar with NI 43-101 and by reason of education, experience and professional registration and fulfill the requirements of a Qualified Person as defined in NI 43-101. I have been continuously employed in the mining industry since graduation and my work experience includes over 20 of in underground mine operations, design and evaluations in the engineering consulting sector.
	  
	  
	  

	  
	 ·
	I am a “Qualified Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) for those sections of the Technical Report that I am responsible for preparing.
	  
	  
	  

	  
	 ·
	I have not visited the site. The mining and relevant sections of this report was prepared from the press release information made available and provided by Avino Silver & Gold Mines Ltd.
	  
	  
	  

	  
	 ·
	I am responsible for Section 16.0, and summary therefrom in Sections 1.0, 25.0, 26.0, and 27.0 (only references from sections for which I am responsible) of the Technical Report.
	  
	  
	  

	  
	 ·
	I am independent of Avino Silver & Gold Mines Ltd. as Independence is defined by Section 1.5 of NI 43-101.
	  
	  
	  

	  
	 ·
	I have no prior involvement with the Avino Project that is the subject of the Technical Report.
	  
	  
	  

	  
	 ·
	I have read the NI 43-101 and the sections of the Technical Report that I am responsible for have been prepared in compliance with the NI 43-101.
	  
	  
	  

	  
	 ·
	As of the date of this certificate, to the best of my knowledge, information and belief, the section of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.

 
 
 
 
 
 
 
 
 
 
    
 Signed and dated this 13th day of January, 2021
  
 	 “signed and stamped”
	  

	 Barnard Foo, P.Eng., M.Eng.
 Tetra Tech Inc.
	  

 
 
 
 
 
 
 
 
 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 

 
 	 APPENDIX A

	  TITLE OPINION

 
 
 
 
 
 
   
 
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
 	 APPENDIX B

	  SUMMARY OF DIAMOND DRILLHOLES

 
 
 
 
  
     
 	 
	
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
     
 Summary of Diamond Drillholes
   
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 AM_18_02
	 42.2
	 -15.4
	 572343.1
	 2713764.2
	 2094.5
	 290.0
	 Aguila_Mexicana_Vein

	 AM_18_03
	 62.0
	 -15.5
	 572343.6
	 2713762.5
	 2094.7
	 295.2
	 Aguila_Mexicana_Vein

	 AM_18_01
	 61.5
	 -29.7
	 572342.4
	 2713762.1
	 2094.3
	 363.0
	 Aguila_Mexicana_Vein

	 AM_11_02
	 60.0
	 -60.0
	 571896.0
	 2715347.3
	 2240.4
	 100.3
	 Aguila_Mexicana_Vein

	 AM_11_01
	 60.0
	 -55.0
	 571978.4
	 2715225.6
	 2230.8
	 138.1
	 Aguila_Mexicana_Vein

	 AM_08_07
	 262.0
	 -49.0
	 572641.2
	 2713988.2
	 2253.0
	 220.0
	 Aguila_Mexicana_Vein

	 AM_08_05
	 259.0
	 -63.0
	 572601.8
	 2713922.1
	 2268.3
	 150.5
	 Aguila_Mexicana_Vein

	 AM_08_04
	 261.0
	 -61.0
	 572665.3
	 2713942.9
	 2259.1
	 248.7
	 Aguila_Mexicana_Vein

	 AM_08_03
	 253.0
	 -49.0
	 572548.8
	 2714177.2
	 2243.2
	 232.6
	 Aguila_Mexicana_Vein

	 AM_08_02
	 253.0
	 -53.0
	 572662.8
	 2713945.5
	 2259.0
	 211.0
	 Aguila_Mexicana_Vein

	 AM_08_01
	 252.0
	 -53.0
	 572799.3
	 2713733.6
	 2265.3
	 202.1
	 Aguila_Mexicana_Vein

	 AM_08_06
	 258.0
	 -53.0
	 572685.5
	 2713901.1
	 2262.8
	 215.3
	 Aguila_Mexicana_Vein

	 AM_07_01
	 212.0
	 -57.0
	 572780.9
	 2713596.0
	 2294.7
	 201.9
	 Aguila_Mexicana_Vein

	 ET_17_10
	 339.4
	 -23.4
	 570348.7
	 2712649.1
	 2274.2
	 129.3
	 Avino_Vein

	 ET_16_10
	 9.0
	 -20.9
	 570195.0
	 2712466.5
	 2224.4
	 254.2
	 Avino_Vein

	 ET_16_11
	 2.1
	 -44.2
	 570178.8
	 2712457.8
	 2224.1
	 265.1
	 Avino_Vein

	 ET_16_12
	 358.9
	 -62.8
	 570148.0
	 2712464.6
	 2225.7
	 266.6
	 Avino_Vein

	 ET_17_01
	 360.0
	 -62.3
	 569935.5
	 2712575.7
	 2263.3
	 103.8
	 Avino_Vein

	 ET_17_02
	 357.9
	 -55.4
	 569881.5
	 2712567.9
	 2242.5
	 100.8
	 Avino_Vein

	 ET_17_04
	 250.9
	 -89.5
	 569860.9
	 2712585.2
	 2243.8
	 182.7
	 Avino_Vein

	 ET_17_06
	 338.4
	 -48.0
	 570301.2
	 2712634.9
	 2271.0
	 144.5
	 Avino_Vein

	 ET_17_08
	 336.4
	 -53.8
	 570263.7
	 2712631.1
	 2268.8
	 119.3
	 Avino_Vein

	 ET_16_09
	 337.1
	 -49.3
	 570411.2
	 2712570.0
	 2246.8
	 237.5
	 Avino_Vein

	 ET_12_09
	 332.0
	 -71.0
	 570646.0
	 2712555.1
	 2222.4
	 395.4
	 Avino_Vein

	 ET_17_07
	 337.3
	 -28.8
	 570300.9
	 2712634.9
	 2271.3
	 121.5
	 Avino_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
 
  
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	1
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
         
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

 
 
 
 
 
 
 
 
 
 
 	 ET_16_08
	 336.8
	 -46.8
	 570399.2
	 2712605.9
	 2261.1
	 194.3
	 Avino_Vein

	 ET_16_06
	 5.5
	 -74.4
	 570221.5
	 2712667.5
	 2290.7
	 118.0
	 Avino_Vein

	 ET_16_05
	 338.6
	 -42.3
	 570295.1
	 2712566.1
	 2250.5
	 196.0
	 Avino_Vein

	 ET_16_04
	 340.2
	 -44.6
	 570274.7
	 2712634.1
	 2269.7
	 126.6
	 Avino_Vein

	 ET_16_03
	 338.3
	 -46.7
	 570325.1
	 2712641.2
	 2273.1
	 161.8
	 Avino_Vein

	 ET_17_16
	 0.6
	 -20.5
	 570196.9
	 2712460.1
	 2223.3
	 247.6
	 Avino_Vein

	 ET_16_01
	 337.9
	 -20.8
	 570394.7
	 2712659.8
	 2277.6
	 151.3
	 Avino_Vein

	 ET_17_24
	 337.3
	 -44.6
	 570964.2
	 2712882.0
	 2229.5
	 208.2
	 Avino_Vein

	 ET_12_08
	 336.0
	 -72.0
	 570678.3
	 2712593.8
	 2226.8
	 384.4
	 Avino_Vein

	 ET_12_07
	 336.0
	 -61.0
	 570678.3
	 2712593.8
	 2226.8
	 327.6
	 Avino_Vein

	 ET_12_06
	 334.0
	 -69.0
	 570589.4
	 2712523.1
	 2219.5
	 396.1
	 Avino_Vein

	 ET_16_02
	 335.8
	 -43.6
	 570395.5
	 2712657.8
	 2277.3
	 152.4
	 Avino_Vein

	 ET_17_28
	 336.1
	 -46.0
	 570835.6
	 2712811.1
	 2261.8
	 274.4
	 Avino_Vein

	 SELCO_2_1800
	 342.3
	 -67.6
	 570434.8
	 2712337.4
	 2194.5
	 575.2
	 Avino_Vein

	 SELCO_3
	 339.3
	 -53.0
	 570356.6
	 2712450.9
	 2217.3
	 325.7
	 Avino_Vein

	 SELCO_3_1800
	 351.0
	 -71.0
	 570321.2
	 2712317.2
	 2190.0
	 497.5
	 Avino_Vein

	 SELCO_4A
	 350.0
	 -60.0
	 570070.0
	 2712396.0
	 2214.5
	 251.0
	 Avino_Vein

	 ET_18_07
	 155.1
	 -33.3
	 570489.1
	 2712962.8
	 2337.4
	 113.9
	 Avino_Vein

	 ET_18_05
	 153.5
	 -33.7
	 570445.8
	 2712940.4
	 2335.9
	 105.6
	 Avino_Vein

	 ET_18_04
	 155.5
	 -44.9
	 570403.4
	 2712912.4
	 2336.2
	 120.8
	 Avino_Vein

	 ET_18_03
	 154.9
	 -29.4
	 570403.4
	 2712912.4
	 2336.2
	 118.6
	 Avino_Vein

	 ET_18_02
	 340.0
	 -38.0
	 570841.9
	 2712720.6
	 2231.8
	 318.1
	 Avino_Vein

	 ET_18_01
	 337.0
	 -55.2
	 571011.1
	 2712974.1
	 2231.2
	 102.5
	 Avino_Vein

	 ET_17_22
	 357.0
	 -8.5
	 570235.9
	 2712454.1
	 2220.4
	 234.9
	 Avino_Vein

	 ET_17_29
	 339.6
	 -39.1
	 570840.8
	 2712851.8
	 2263.7
	 280.8
	 Avino_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	2
	

	 

 
 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
           
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 ET_17_17
	 358.4
	 -52.9
	 570196.9
	 2712460.0
	 2222.7
	 261.6
	 Avino_Vein

	 ET_17_27
	 340.6
	 -46.1
	 570925.7
	 2712853.7
	 2229.5
	 223.3
	 Avino_Vein

	 ET_17_26
	 337.5
	 -38.1
	 570887.7
	 2712933.8
	 2264.9
	 160.0
	 Avino_Vein

	 ET_17_25
	 338.8
	 -38.4
	 570964.8
	 2712961.5
	 2231.8
	 140.8
	 Avino_Vein

	 ET_17_09
	 337.4
	 -31.4
	 570262.9
	 2712632.1
	 2269.0
	 101.5
	 Avino_Vein

	 ET_17_23
	 344.9
	 -49.5
	 570998.6
	 2712915.3
	 2224.9
	 190.6
	 Avino_Vein

	 ET_12_05
	 336.0
	 -62.0
	 570566.1
	 2712507.6
	 2217.5
	 369.2
	 Avino_Vein

	 ET_17_21
	 335.6
	 -59.4
	 570357.5
	 2712551.5
	 2243.2
	 248.4
	 Avino_Vein

	 ET_17_20
	 336.0
	 -50.8
	 570368.8
	 2712553.6
	 2242.7
	 220.3
	 Avino_Vein

	 ET_17_19
	 356.1
	 -52.1
	 570154.6
	 2712467.0
	 2225.6
	 225.7
	 Avino_Vein

	 ET_17_18
	 354.9
	 -37.7
	 570236.2
	 2712452.0
	 2218.9
	 249.5
	 Avino_Vein

	 ET_17_30
	 337.2
	 -35.0
	 570787.4
	 2712703.2
	 2237.8
	 289.9
	 Avino_Vein

	 ET_06_02
	 340.0
	 -50.0
	 570336.9
	 2712308.8
	 2190.4
	 416.7
	 Avino_Vein

	 SJ_08_02
	 4.0
	 -54.0
	 572830.1
	 2712668.7
	 2264.8
	 283.5
	 Avino_Vein

	 SJ_08_04
	 27.0
	 -45.0
	 572833.3
	 2712809.8
	 2311.0
	 193.2
	 Avino_Vein

	 ET_12_04
	 339.0
	 -64.0
	 570544.1
	 2712496.8
	 2216.2
	 373.6
	 Avino_Vein

	 SJ_08_06
	 8.0
	 -81.0
	 571926.8
	 2712680.7
	 2215.6
	 431.3
	 Avino_Vein

	 ET_07_05
	 333.0
	 -65.5
	 570439.8
	 2712510.2
	 2226.1
	 351.5
	 Avino_Vein

	 ET_07_04
	 331.0
	 -56.0
	 570439.5
	 2712510.8
	 2226.0
	 318.7
	 Avino_Vein

	 ET_07_03
	 336.0
	 -71.0
	 570344.4
	 2712498.4
	 2226.0
	 349.5
	 Avino_Vein

	 ET_07_02
	 351.0
	 -76.0
	 570206.1
	 2712467.5
	 2223.7
	 311.9
	 Avino_Vein

	 ET_07_01
	 1.0
	 -69.0
	 570176.3
	 2712453.4
	 2222.4
	 298.6
	 Avino_Vein

	 CH_06_03
	 338.3
	 -51.3
	 571013.1
	 2712796.0
	 2207.8
	 454.3
	 Avino_Vein

	 ET_06_03
	 339.0
	 -48.0
	 570456.8
	 2712361.2
	 2194.1
	 421.2
	 Avino_Vein

	 SJ_08_03
	 4.0
	 -75.0
	 572914.7
	 2712669.1
	 2246.0
	 424.4
	 Avino_Vein

	 ET_06_01
	 337.0
	 -55.0
	 570270.8
	 2712261.8
	 2186.7
	 431.2
	 Avino_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	3
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
         
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 DDH_8_2200
	 0.0
	 -45.0
	 569961.0
	 2712489.0
	 2232.5
	 162.0
	 Avino_Vein

	 DDH_4_1950
	 339.6
	 -70.0
	 570302.0
	 2712480.0
	 2220.5
	 331.7
	 Avino_Vein

	 DDH_3_2200
	 0.0
	 -50.0
	 570286.0
	 2712594.0
	 2258.5
	 175.1
	 Avino_Vein

	 SL_06_01
	 0.0
	 -90.0
	 569956.2
	 2712528.7
	 2241.7
	 219.2
	 Avino_Vein

	 DDH_2_2200
	 0.0
	 -50.0
	 570155.0
	 2712550.0
	 2252.5
	 178.8
	 Avino_Vein

	 DDH_2_2075
	 340.0
	 -45.0
	 570296.0
	 2712488.0
	 2221.5
	 287.1
	 Avino_Vein

	 DDH_1_2200
	 358.6
	 -45.0
	 570025.0
	 2712487.0
	 2232.5
	 151.1
	 Avino_Vein

	 DDH_1_1950
	 340.0
	 -45.0
	 570481.0
	 2712348.0
	 2193.5
	 433.1
	 Avino_Vein

	 ET_17_11
	 335.8
	 -23.9
	 570435.6
	 2712672.4
	 2279.7
	 143.4
	 Avino_Vein

	 ET_06_04
	 340.0
	 -50.0
	 570500.6
	 2712467.7
	 2214.8
	 444.1
	 Avino_Vein

	 ET_08_02
	 330.0
	 -55.0
	 570341.0
	 2712549.0
	 2243.5
	 234.5
	 Avino_Vein

	 ET_12_03
	 336.0
	 -59.0
	 570507.0
	 2712471.4
	 2214.2
	 367.8
	 Avino_Vein

	 ET_12_02
	 335.0
	 -53.0
	 570506.7
	 2712472.0
	 2214.2
	 360.9
	 Avino_Vein

	 ET_12_01
	 336.0
	 -63.0
	 570354.4
	 2712501.3
	 2226.3
	 288.2
	 Avino_Vein

	 ET_08_08
	 336.0
	 -45.0
	 570905.6
	 2712766.2
	 2226.7
	 269.1
	 Avino_Vein

	 ET_08_07
	 336.0
	 -60.0
	 570746.9
	 2712655.8
	 2234.0
	 160.4
	 Avino_Vein

	 ET_08_06
	 336.0
	 -60.0
	 570675.9
	 2712654.4
	 2242.9
	 292.5
	 Avino_Vein

	 ET_08_05
	 336.0
	 -67.0
	 570657.5
	 2712628.7
	 2245.0
	 371.1
	 Avino_Vein

	 SJ_08_05
	 4.0
	 -55.0
	 572580.1
	 2712521.0
	 2243.3
	 492.5
	 Avino_Vein

	 ET_08_03
	 330.0
	 -65.0
	 570341.2
	 2712548.7
	 2243.5
	 265.1
	 Avino_Vein

	 SJ_08_01
	 9.0
	 -50.0
	 572581.9
	 2712672.3
	 2282.5
	 326.8
	 Avino_Vein

	 ET_08_01
	 329.0
	 -45.0
	 570806.6
	 2712711.8
	 2236.0
	 221.5
	 Avino_Vein

	 SJ_06_02
	 0.0
	 -60.0
	 572333.8
	 2712694.3
	 2273.6
	 373.7
	 Avino_Vein

	 BDVD1
	 37.6
	 -55.0
	 570374.0
	 2712575.0
	 2248.5
	 100.1
	 Avino_Vein

	 ET_08_04
	 336.0
	 -65.0
	 570587.6
	 2712568.1
	 2230.5
	 358.7
	 Avino_Vein

	 SJ_07_01
	 232.0
	 -50.0
	 572984.0
	 2713036.3
	 2281.3
	 197.3
	 Avino_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	4
	

	 

 
 
 
 
    
 	 
	 

 
 
 
 
    
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 ET_07_12
	 337.0
	 -48.0
	 570735.4
	 2712653.7
	 2234.3
	 284.7
	 Avino_Vein

	 SJ_06_01
	 0.0
	 -60.0
	 572085.9
	 2712721.1
	 2240.4
	 320.6
	 Avino_Vein

	 ET_07_06
	 336.0
	 -55.0
	 570519.6
	 2712523.8
	 2224.8
	 320.1
	 Avino_Vein

	 ET_07_07
	 330.0
	 -56.5
	 570584.7
	 2712568.6
	 2230.5
	 304.9
	 Avino_Vein

	 ET_07_08
	 346.0
	 -69.0
	 570584.2
	 2712568.5
	 2230.5
	 399.7
	 Avino_Vein

	 ET_07_09
	 336.0
	 -62.0
	 570629.4
	 2712603.6
	 2235.4
	 328.6
	 Avino_Vein

	 ET_07_10
	 338.0
	 -62.0
	 570645.4
	 2712649.7
	 2245.0
	 308.7
	 Avino_Vein

	 ET_07_11
	 337.0
	 -69.0
	 570682.4
	 2712653.9
	 2241.0
	 329.8
	 Avino_Vein

	 CHI_07_01
	 17.9
	 -43.8
	 572557.2
	 2713445.3
	 2340.1
	 305.9
	 Chihuahua_Vein

	 GAP_07_02
	 9.0
	 -46.0
	 571731.8
	 2712771.7
	 2191.0
	 212.9
	 GAP_Zone

	 GAP_07_03
	 22.0
	 -45.0
	 571448.6
	 2712887.5
	 2204.2
	 116.3
	 GAP_Zone

	 GAP_07_01
	 351.0
	 -45.0
	 571731.8
	 2712771.7
	 2191.0
	 328.7
	 GAP_Zone

	 GFA_07_01
	 181.0
	 -60.0
	 572164.8
	 2714398.2
	 2290.0
	 360.8
	 Geophysical_Anomaly

	 GL_11_04
	 216.0
	 -42.0
	 569442.1
	 2714573.9
	 2193.5
	 99.3
	 Gran_Lucero_Vein

	 GL_11_03
	 221.0
	 -44.0
	 569449.8
	 2714616.4
	 2199.0
	 141.3
	 Gran_Lucero_Vein

	 GL_11_01
	 222.0
	 -48.0
	 569770.4
	 2714791.7
	 2193.2
	 138.2
	 Gran_Lucero_Vein

	 GL_11_02
	 53.0
	 -45.0
	 569532.7
	 2714668.1
	 2208.1
	 115.2
	 Gran_Lucero_Vein

	 GL_11_05
	 41.0
	 -44.0
	 569518.2
	 2714514.4
	 2186.9
	 125.2
	 Gran_Lucero_Vein

	 GPE_18_02
	 177.2
	 -43.4
	 571503.9
	 2713558.0
	 2311.3
	 134.1
	 Guadalupe_Vein

	 GPE_17_02
	 208.1
	 -38.3
	 571488.5
	 2713624.4
	 2290.8
	 179.7
	 Guadalupe_Vein

	 GPE_17_04
	 199.0
	 -32.4
	 571553.5
	 2713639.0
	 2292.2
	 193.2
	 Guadalupe_Vein

	 GPE_17_05
	 180.6
	 -56.0
	 571553.7
	 2713522.2
	 2326.1
	 110.4
	 Guadalupe_Vein

	 GPE_17_06
	 178.9
	 -48.3
	 571708.3
	 2713530.9
	 2340.8
	 180.8
	 Guadalupe_Vein

	 GPE_17_07
	 1.2
	 -74.8
	 570884.5
	 2713640.5
	 2245.1
	 300.7
	 Guadalupe_Vein

	 GPE_17_09
	 209.7
	 -47.7
	 571367.8
	 2713625.3
	 2308.8
	 131.2
	 Guadalupe_Vein

	 GPE_17_01
	 208.7
	 -50.5
	 571382.2
	 2713655.2
	 2298.5
	 179.7
	 Guadalupe_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	5
	

	 

 
 
 
 
 
 
 
 
 
        
 
 
 
 
 
 
 
 
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 GPE_18_01
	 208.5
	 -43.5
	 571349.4
	 2713700.1
	 2285.9
	 179.8
	 Guadalupe_Vein

	 GPE_17_08
	 209.8
	 -52.0
	 571430.8
	 2713640.0
	 2294.1
	 185.2
	 Guadalupe_Vein

	 GPE_18_04
	 179.3
	 -48.3
	 571603.8
	 2713521.3
	 2332.2
	 118.9
	 Guadalupe_Vein

	 GPE_18_05
	 169.1
	 -38.5
	 571538.1
	 2713586.2
	 2307.4
	 158.2
	 Guadalupe_Vein

	 GPE_18_06
	 208.8
	 -45.4
	 571366.8
	 2713800.7
	 2242.4
	 290.5
	 Guadalupe_Vein

	 GPE_18_07
	 209.2
	 -47.9
	 571253.2
	 2713776.7
	 2247.6
	 218.8
	 Guadalupe_Vein

	 GPE_18_08
	 178.8
	 -44.9
	 571599.8
	 2713695.4
	 2291.8
	 290.6
	 Guadalupe_Vein

	 GPE_07_01
	 21.0
	 -47.0
	 571386.1
	 2713352.5
	 2271.1
	 209.4
	 Guadalupe_Vein

	 GPE_11_14
	 334.0
	 -76.0
	 570836.8
	 2713681.2
	 2241.2
	 131.8
	 Guadalupe_Vein

	 GPE_17_10
	 205.4
	 -49.7
	 571400.8
	 2713687.7
	 2285.2
	 240.3
	 Guadalupe_Vein

	 GPE_11_24
	 325.0
	 -71.0
	 570877.6
	 2713635.4
	 2245.1
	 223.7
	 Guadalupe_Vein

	 GPE_11_07
	 209.0
	 -58.0
	 571449.6
	 2713549.1
	 2316.9
	 115.8
	 Guadalupe_Vein

	 GPE_11_09
	 5.0
	 -42.0
	 570725.8
	 2713640.9
	 2216.5
	 110.7
	 Guadalupe_Vein

	 GPE_11_10
	 329.0
	 -42.0
	 570723.1
	 2713639.0
	 2216.5
	 119.7
	 Guadalupe_Vein

	 GPE_11_11
	 28.0
	 -44.0
	 570727.3
	 2713639.9
	 2216.5
	 122.9
	 Guadalupe_Vein

	 GPE_11_01
	 204.0
	 -45.0
	 571515.3
	 2713518.2
	 2323.0
	 102.5
	 Guadalupe_Vein

	 GPE_11_13
	 331.0
	 -55.0
	 570836.0
	 2713682.4
	 2241.5
	 113.4
	 Guadalupe_Vein

	 GPE_11_02
	 206.0
	 -43.0
	 571450.4
	 2713549.0
	 2316.9
	 121.7
	 Guadalupe_Vein

	 GPE_11_15
	 18.0
	 -61.0
	 570838.4
	 2713682.8
	 2241.5
	 113.0
	 Guadalupe_Vein

	 GPE_11_16
	 22.0
	 -71.0
	 570838.3
	 2713682.3
	 2241.5
	 148.5
	 Guadalupe_Vein

	 GPE_11_18
	 345.0
	 -44.0
	 570932.5
	 2713682.6
	 2238.5
	 104.2
	 Guadalupe_Vein

	 GPE_11_19
	 348.0
	 -70.0
	 570932.7
	 2713681.9
	 2238.6
	 119.2
	 Guadalupe_Vein

	 GPE_11_20
	 360.0
	 -82.0
	 570932.9
	 2713681.3
	 2238.6
	 156.6
	 Guadalupe_Vein

	 GPE_11_21
	 32.0
	 -53.0
	 570936.9
	 2713682.9
	 2238.3
	 122.0
	 Guadalupe_Vein

	 GPE_11_22
	 30.0
	 -53.0
	 570995.6
	 2713674.9
	 2235.3
	 110.7
	 Guadalupe_Vein

	 GPE_11_23
	 320.0
	 -62.0
	 570877.6
	 2713635.8
	 2245.1
	 183.3
	 Guadalupe_Vein

	  
	  
	  
	  
	  
	  
	  
	  table continues...

 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
   
 	 
	6
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 GPE_11_12
	 3.0
	 -61.0
	 570726.1
	 2713638.4
	 2216.6
	 125.3
	 Guadalupe_Vein

	 LBL_08_02
	 11.0
	 -45.0
	 572217.1
	 2713341.0
	 2254.8
	 111.9
	 La_Blanca_Vein

	 LBL_08_01
	 237.0
	 -63.0
	 572381.9
	 2713454.2
	 2308.7
	 115.5
	 La_Blanca_Vein

	 BL_16_01
	 214.6
	 -0.5
	 572271.7
	 2713789.2
	 2139.5
	 114.7
	 La_Blanca_Vein

	 LE_06_01
	 220.0
	 -45.0
	 572658.0
	 2713317.2
	 2347.3
	 200.6
	 La_Estela_Vein

	 LE_06_02
	 215.0
	 -45.0
	 572624.7
	 2713341.8
	 2345.5
	 236.3
	 La_Estela_Vein

	 LE_06_03
	 185.0
	 -45.0
	 572659.3
	 2713318.2
	 2347.3
	 251.9
	 La_Estela_Vein

	 LE_16_01
	 213.0
	 -37.9
	 572722.6
	 2713286.4
	 2350.3
	 206.4
	 La_Estela_Vein

	 LE_16_02
	 201.2
	 -51.9
	 572723.3
	 2713286.9
	 2350.0
	 241.5
	 La_Estela_Vein

	 LE_16_03
	 221.6
	 -35.5
	 572706.9
	 2713296.7
	 2348.5
	 210.6
	 La_Estela_Vein

	 LE_16_04
	 235.4
	 -31.7
	 572706.5
	 2713296.7
	 2348.5
	 242.5
	 La_Estela_Vein

	 LE_16_05
	 238.9
	 -54.3
	 572707.5
	 2713297.5
	 2348.5
	 363.3
	 La_Estela_Vein

	 LE_16_06A
	 207.2
	 -13.1
	 572775.4
	 2713239.3
	 2355.8
	 205.8
	 La_Estela_Vein

	 LP_11_09
	 102.0
	 -54.0
	 570852.8
	 2718123.5
	 2221.0
	 141.9
	 La_Potosina_Vein

	 LP_11_01
	 130.0
	 -49.0
	 570924.0
	 2718247.1
	 2217.1
	 112.0
	 La_Potosina_Vein

	 LP_11_02
	 167.0
	 -50.0
	 570924.6
	 2718246.2
	 2217.3
	 155.5
	 La_Potosina_Vein

	 LP_11_04
	 184.0
	 -51.0
	 570858.6
	 2718200.9
	 2212.9
	 154.0
	 La_Potosina_Vein

	 LP_11_05
	 87.0
	 -50.0
	 570831.8
	 2718130.7
	 2220.4
	 130.2
	 La_Potosina_Vein

	 LP_11_06
	 86.0
	 -65.0
	 570831.1
	 2718130.7
	 2220.4
	 163.0
	 La_Potosina_Vein

	 LP_11_07
	 83.0
	 -48.0
	 570822.3
	 2718165.7
	 2213.8
	 156.5
	 La_Potosina_Vein

	 LP_11_03
	 142.0
	 -51.0
	 570861.0
	 2718203.9
	 2213.7
	 160.8
	 La_Potosina_Vein

	 LA_07_04
	 233.0
	 -44.0
	 572226.3
	 2713915.8
	 2323.8
	 115.3
	 Los_Angeles_Vein

	 LA_07_01
	 40.0
	 -44.0
	 571944.5
	 2713726.5
	 2332.7
	 358.9
	 Los_Angeles_Vein

	 LA_07_03
	 222.0
	 -70.0
	 572226.8
	 2713916.6
	 2323.6
	 140.4
	 Los_Angeles_Vein

	 LA_07_05
	 205.0
	 -45.0
	 572080.2
	 2713971.3
	 2356.1
	 149.8
	 Los_Angeles_Vein

	 LA_07_02
	 223.0
	 -42.0
	 572226.2
	 2713915.9
	 2323.8
	 185.3
	 Los_Angeles_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	7
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
        
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

 
 
 
 
 
 
 
 
 
 	 ME_08_02
	 190.0
	 -60.0
	 570935.1
	 2714495.3
	 2246.1
	 177.0
	 Mercedes_Area

	 ME_11_02
	 23.0
	 -53.0
	 570596.7
	 2714921.8
	 2193.5
	 229.5
	 Mercedes_Area

	 ME_08_04
	 35.0
	 -50.0
	 570680.4
	 2714865.5
	 2217.7
	 201.9
	 Mercedes_Area

	 ME_08_03
	 190.0
	 -60.0
	 571054.1
	 2714318.4
	 2244.8
	 166.5
	 Mercedes_Area

	 ME_08_01
	 220.0
	 -50.0
	 571636.4
	 2714701.2
	 2227.8
	 178.3
	 Mercedes_Area

	 ME_11_01
	 179.0
	 -43.0
	 570646.7
	 2714858.8
	 2214.9
	 129.9
	 Mercedes_Area

	 NS_07_01
	 333.0
	 -47.0
	 570612.5
	 2715290.3
	 2224.7
	 167.1
	 Nuestra_Senora_Vein

	 NS_07_02
	 331.0
	 -61.0
	 570612.7
	 2715289.8
	 2224.7
	 134.1
	 Nuestra_Senora_Vein

	 NS_07_03
	 6.0
	 -46.0
	 570613.2
	 2715290.7
	 2224.8
	 121.4
	 Nuestra_Senora_Vein

	 NS_07_05
	 202.0
	 -47.0
	 570605.8
	 2715506.4
	 2217.3
	 124.9
	 Nuestra_Senora_Vein

	 NS_07_04
	 166.0
	 -46.0
	 570606.2
	 2715504.7
	 2217.3
	 101.6
	 Nuestra_Senora_Vein

	 SG_14_15
	 210.0
	 -70.8
	 572293.7
	 2713911.6
	 2300.0
	 257.4
	 San_Gonzalo_Vein

	 SG_14_14
	 208.8
	 -31.6
	 572293.9
	 2713911.9
	 2300.1
	 192.2
	 San_Gonzalo_Vein

	 SG_14_13
	 207.6
	 -63.4
	 571898.5
	 2714155.7
	 2043.4
	 213.4
	 San_Gonzalo_Vein

	 SG_14_11
	 36.7
	 -1.0
	 571864.7
	 2714158.7
	 2087.5
	 224.2
	 San_Gonzalo_Vein

	 SG_14_12
	 287.0
	 -52.3
	 571895.9
	 2714156.6
	 2043.5
	 185.0
	 San_Gonzalo_Vein

	 SG_15_06
	 241.8
	 -73.1
	 571876.0
	 2714129.0
	 2043.2
	 106.4
	 San_Gonzalo_Vein

	 SG_15_09
	 215.0
	 -36.0
	 572255.2
	 2713894.3
	 2137.6
	 99.6
	 San_Gonzalo_Vein

	 SG_15_11
	 204.9
	 -71.5
	 571672.2
	 2714298.2
	 2291.6
	 141.2
	 San_Gonzalo_Vein

	 SG_15_14
	 215.1
	 -59.7
	 571652.0
	 2714345.4
	 2280.3
	 145.8
	 San_Gonzalo_Vein

	 SG_15_15
	 213.0
	 -76.1
	 571652.3
	 2714346.1
	 2280.3
	 195.7
	 San_Gonzalo_Vein

	 SG_14_10
	 212.9
	 -49.6
	 572293.3
	 2713910.8
	 2300.1
	 235.3
	 San_Gonzalo_Vein

	 SG_15_12
	 201.4
	 -83.3
	 571672.3
	 2714298.3
	 2291.3
	 200.8
	 San_Gonzalo_Vein

	 SG_14_09
	 209.2
	 -67.4
	 572285.4
	 2714061.1
	 2297.4
	 401.8
	 San_Gonzalo_Vein

	 SG_14_08
	 210.6
	 -57.0
	 572285.3
	 2714060.9
	 2297.3
	 336.0
	 San_Gonzalo_Vein

	 SG_14_07
	 210.9
	 -26.4
	 572284.3
	 2714059.1
	 2297.4
	 248.3
	 San_Gonzalo_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	8
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 SG_14_06
	 212.3
	 -78.3
	 572157.7
	 2714043.6
	 2330.8
	 411.0
	 San_Gonzalo_Vein

	 SG_14_05
	 223.9
	 -71.5
	 572157.1
	 2714043.7
	 2330.3
	 346.8
	 San_Gonzalo_Vein

	 SG_14_04
	 198.8
	 -69.7
	 571688.3
	 2714269.7
	 2295.9
	 120.0
	 San_Gonzalo_Vein

	 SG_14_02
	 258.9
	 -56.0
	 571858.0
	 2714155.1
	 2086.0
	 120.1
	 San_Gonzalo_Vein

	 SG_15_16
	 89.0
	 0.0
	 572287.8
	 2713888.1
	 2138.1
	 100.8
	 San_Gonzalo_Vein

	 SG_11_17
	 210.0
	 -70.0
	 571836.1
	 2714336.0
	 2306.5
	 383.1
	 San_Gonzalo_Vein

	 SG_16_04
	 193.5
	 -80.6
	 571339.7
	 2714462.7
	 2256.1
	 111.0
	 San_Gonzalo_Vein

	 SG_11_16
	 209.0
	 -62.0
	 572092.0
	 2714173.3
	 2330.8
	 334.3
	 San_Gonzalo_Vein

	 SG_11_15
	 211.0
	 -68.0
	 572029.8
	 2714171.9
	 2336.6
	 363.5
	 San_Gonzalo_Vein

	 SG_11_18
	 218.0
	 -71.0
	 571765.3
	 2714320.6
	 2293.1
	 318.2
	 San_Gonzalo_Vein

	 SG_16_07
	 218.1
	 -54.0
	 571299.5
	 2714499.2
	 2245.2
	 128.8
	 San_Gonzalo_Vein

	 SG_18_02
	 217.8
	 -43.7
	 571583.4
	 2714349.8
	 2283.2
	 121.4
	 San_Gonzalo_Vein

	 SG_18_01
	 217.9
	 -17.2
	 571549.9
	 2714351.4
	 2285.1
	 102.2
	 San_Gonzalo_Vein

	 SG_17_17
	 216.7
	 -33.7
	 571245.7
	 2714612.4
	 2219.3
	 142.0
	 San_Gonzalo_Vein

	 SG_17_16
	 187.9
	 -47.5
	 570998.0
	 2714581.3
	 2228.8
	 200.2
	 San_Gonzalo_Vein

	 SG_17_10
	 211.4
	 -82.3
	 571992.4
	 2714074.1
	 2015.2
	 121.3
	 San_Gonzalo_Vein

	 SG_17_08
	 207.2
	 -68.9
	 571991.7
	 2714072.1
	 2015.1
	 100.2
	 San_Gonzalo_Vein

	 SG_17_06
	 345.1
	 -42.0
	 571833.8
	 2714077.4
	 2269.7
	 182.1
	 San_Gonzalo_Vein

	 SG_17_05
	 34.5
	 -10.8
	 571835.3
	 2714077.2
	 2270.7
	 258.5
	 San_Gonzalo_Vein

	 SG_17_04
	 14.5
	 -23.1
	 572053.9
	 2713902.9
	 2263.5
	 109.2
	 San_Gonzalo_Vein

	 SG_17_03
	 14.6
	 -9.2
	 572125.2
	 2713883.1
	 2264.2
	 270.5
	 San_Gonzalo_Vein

	 SG_17_01
	 40.7
	 -10.1
	 571913.7
	 2714049.5
	 2262.4
	 315.6
	 San_Gonzalo_Vein

	 SG_16_01
	 245.9
	 -67.1
	 571427.9
	 2714421.3
	 2268.0
	 147.7
	 San_Gonzalo_Vein

	 SG_16_11
	 174.0
	 -52.7
	 571434.0
	 2714420.9
	 2268.1
	 102.7
	 San_Gonzalo_Vein

	 SG_15_17
	 226.2
	 -68.4
	 571593.2
	 2714352.3
	 2282.4
	 145.3
	 San_Gonzalo_Vein

	 SG_16_06
	 217.5
	 -68.8
	 571299.7
	 2714499.6
	 2245.1
	 171.7
	 San_Gonzalo_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	9
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
        
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 SG_16_05
	 193.2
	 -78.8
	 571347.1
	 2714494.8
	 2247.9
	 159.6
	 San_Gonzalo_Vein

	 SG_14_01
	 286.8
	 -54.6
	 571858.5
	 2714156.0
	 2086.0
	 156.6
	 San_Gonzalo_Vein

	 SG_16_02
	 245.2
	 -77.1
	 571428.3
	 2714421.4
	 2268.0
	 167.8
	 San_Gonzalo_Vein

	 SG_11_14
	 209.0
	 -61.0
	 571939.4
	 2714213.6
	 2326.0
	 330.5
	 San_Gonzalo_Vein

	 SG_15_24
	 214.4
	 -26.4
	 572700.3
	 2713745.4
	 2284.1
	 187.7
	 San_Gonzalo_Vein

	 SG_15_23
	 213.0
	 -59.3
	 572701.6
	 2713747.4
	 2284.0
	 251.8
	 San_Gonzalo_Vein

	 SG_15_22
	 219.3
	 -71.6
	 572569.8
	 2713772.0
	 2302.6
	 401.9
	 San_Gonzalo_Vein

	 SG_15_21
	 212.4
	 -20.3
	 572584.3
	 2713738.6
	 2309.3
	 145.6
	 San_Gonzalo_Vein

	 SG_15_20
	 210.7
	 -51.7
	 572585.5
	 2713740.4
	 2308.8
	 218.8
	 San_Gonzalo_Vein

	 SG_15_19
	 215.1
	 -50.1
	 572479.7
	 2713867.9
	 2283.5
	 290.9
	 San_Gonzalo_Vein

	 SG_15_18
	 216.7
	 -29.8
	 572479.0
	 2713867.0
	 2283.7
	 209.8
	 San_Gonzalo_Vein

	 SG_16_12
	 175.7
	 -64.1
	 571433.9
	 2714421.2
	 2268.0
	 145.3
	 San_Gonzalo_Vein

	 SG_07_12
	 89.0
	 -53.0
	 571678.5
	 2714133.3
	 2277.0
	 175.5
	 San_Gonzalo_Vein

	 SG_07_26
	 216.0
	 -69.0
	 572033.5
	 2714171.8
	 2337.2
	 395.4
	 San_Gonzalo_Vein

	 SG_07_25
	 216.0
	 -65.0
	 571969.0
	 2714077.7
	 2350.9
	 190.5
	 San_Gonzalo_Vein

	 SG_07_24
	 217.0
	 -53.0
	 571968.8
	 2714077.3
	 2351.0
	 124.4
	 San_Gonzalo_Vein

	 SG_07_23
	 216.0
	 -70.0
	 572006.8
	 2714127.5
	 2342.8
	 303.5
	 San_Gonzalo_Vein

	 SG_07_22
	 218.0
	 -54.0
	 572007.2
	 2714127.9
	 2342.7
	 232.5
	 San_Gonzalo_Vein

	 SG_07_21
	 38.0
	 -53.0
	 571712.6
	 2713979.3
	 2296.9
	 294.0
	 San_Gonzalo_Vein

	 SG_07_20
	 215.0
	 -67.0
	 571649.7
	 2714345.4
	 2280.8
	 247.4
	 San_Gonzalo_Vein

	 SG_07_19
	 257.0
	 -66.0
	 571763.3
	 2714320.4
	 2293.1
	 344.9
	 San_Gonzalo_Vein

	 SG_07_18
	 218.0
	 -65.0
	 571765.0
	 2714318.4
	 2293.4
	 238.1
	 San_Gonzalo_Vein

	 SG_07_17
	 249.0
	 -54.6
	 571427.7
	 2714421.5
	 2268.1
	 106.1
	 San_Gonzalo_Vein

	 SG_07_16
	 219.0
	 -54.0
	 571551.7
	 2714353.9
	 2284.5
	 99.9
	 San_Gonzalo_Vein

	 SG_07_27
	 218.0
	 -55.0
	 572077.6
	 2714077.2
	 2344.8
	 237.8
	 San_Gonzalo_Vein

	 SG_07_13
	 55.0
	 -49.0
	 571769.6
	 2713993.2
	 2315.0
	 160.6
	 San_Gonzalo_Vein

	 table continues...

 
 
 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	10
	

	 

 
 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
          
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 SG_07_11
	 15.0
	 -49.0
	 571676.1
	 2714135.4
	 2277.0
	 158.6
	 San_Gonzalo_Vein

	 SG_11_13
	 218.0
	 -71.0
	 571846.5
	 2714257.5
	 2309.7
	 345.4
	 San_Gonzalo_Vein

	 SG_07_10
	 53.0
	 -58.0
	 571677.3
	 2714135.8
	 2277.1
	 162.9
	 San_Gonzalo_Vein

	 SG_14_03
	 162.8
	 -64.0
	 571861.0
	 2714152.9
	 2085.9
	 173.1
	 San_Gonzalo_Vein

	 SG_07_08
	 41.7
	 -54.7
	 571577.7
	 2714116.2
	 2281.2
	 463.5
	 San_Gonzalo_Vein

	 SG_07_07
	 44.0
	 -44.0
	 571578.3
	 2714116.7
	 2281.3
	 281.6
	 San_Gonzalo_Vein

	 SG_07_06
	 55.0
	 -58.0
	 571650.2
	 2714058.0
	 2275.7
	 387.2
	 San_Gonzalo_Vein

	 SG_07_05
	 59.0
	 -69.0
	 571649.9
	 2714057.9
	 2275.6
	 137.0
	 San_Gonzalo_Vein

	 SG_07_04
	 53.0
	 -49.0
	 571651.2
	 2714058.8
	 2275.7
	 312.7
	 San_Gonzalo_Vein

	 SG_07_03
	 74.0
	 -43.0
	 571714.4
	 2713981.3
	 2297.3
	 315.0
	 San_Gonzalo_Vein

	 SG_07_02
	 38.0
	 -48.0
	 571713.8
	 2713983.4
	 2297.3
	 323.7
	 San_Gonzalo_Vein

	 SG_07_01
	 50.0
	 -60.0
	 571713.1
	 2713982.5
	 2297.2
	 386.8
	 San_Gonzalo_Vein

	 SG_07_14
	 54.0
	 -53.0
	 571716.4
	 2713971.5
	 2296.9
	 295.2
	 San_Gonzalo_Vein

	 SG_08_05
	 35.0
	 -55.0
	 571700.8
	 2713892.9
	 2284.7
	 475.3
	 San_Gonzalo_Vein

	 SG_07_09
	 38.0
	 -45.0
	 571676.7
	 2714136.6
	 2277.1
	 106.6
	 San_Gonzalo_Vein

	 SG_07_28
	 218.0
	 -74.0
	 572078.0
	 2714077.9
	 2344.8
	 319.5
	 San_Gonzalo_Vein

	 SG_11_12
	 218.0
	 -71.0
	 571811.0
	 2714287.8
	 2304.6
	 312.2
	 San_Gonzalo_Vein

	 SG_11_10
	 203.6
	 -60.8
	 571239.7
	 2714538.3
	 2234.8
	 125.9
	 San_Gonzalo_Vein

	 SG_11_08
	 37.0
	 -67.0
	 572042.8
	 2713887.7
	 2359.6
	 125.4
	 San_Gonzalo_Vein

	 SG_11_06
	 189.3
	 -44.0
	 571732.2
	 2714379.3
	 2274.3
	 122.3
	 San_Gonzalo_Vein

	 SG_11_05
	 40.0
	 -43.0
	 571892.0
	 2713831.6
	 2317.2
	 151.4
	 San_Gonzalo_Vein

	 SG_11_04
	 212.0
	 -54.0
	 571968.9
	 2714078.9
	 2350.6
	 176.5
	 San_Gonzalo_Vein

	 SG_11_02
	 215.0
	 -63.0
	 571995.1
	 2714030.1
	 2355.1
	 141.2
	 San_Gonzalo_Vein

	 SG_08_06
	 48.0
	 -64.0
	 571679.0
	 2714136.9
	 2276.8
	 226.4
	 San_Gonzalo_Vein

	 SG_08_04
	 215.0
	 -63.0
	 572029.0
	 2714121.3
	 2342.9
	 270.0
	 San_Gonzalo_Vein

	 SG_08_03
	 215.0
	 -70.0
	 571964.3
	 2714167.8
	 2335.1
	 332.0
	 San_Gonzalo_Vein

	 table continues...

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
   
 	 
	11
	

	 

 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
           
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 SG_07_35
	 211.0
	 -68.0
	 572069.2
	 2714010.3
	 2353.1
	 272.2
	 San_Gonzalo_Vein

	 SG_07_29
	 221.0
	 -43.0
	 572033.2
	 2714009.9
	 2355.8
	 103.6
	 San_Gonzalo_Vein

	 SG_07_30
	 221.0
	 -64.0
	 572033.5
	 2714010.4
	 2355.7
	 158.4
	 San_Gonzalo_Vein

	 SG_07_32
	 223.0
	 -70.0
	 572122.1
	 2714135.4
	 2330.1
	 408.0
	 San_Gonzalo_Vein

	 SG_11_01
	 215.0
	 -59.0
	 571980.9
	 2714009.4
	 2356.5
	 101.0
	 San_Gonzalo_Vein

	 SG_07_34
	 210.0
	 -58.0
	 572069.0
	 2714009.9
	 2353.2
	 183.1
	 San_Gonzalo_Vein

	 SG_08_02
	 215.0
	 -57.0
	 571964.0
	 2714167.3
	 2335.1
	 269.1
	 San_Gonzalo_Vein

	 SG_07_36
	 215.0
	 -41.0
	 572050.3
	 2713959.5
	 2358.3
	 102.2
	 San_Gonzalo_Vein

	 SG_07_37
	 219.0
	 -53.0
	 572114.6
	 2713974.8
	 2350.6
	 154.4
	 San_Gonzalo_Vein

	 SG_07_38
	 221.0
	 -66.5
	 572115.0
	 2713975.2
	 2350.5
	 214.2
	 San_Gonzalo_Vein

	 SG_07_39
	 220.0
	 -73.0
	 572120.2
	 2713897.8
	 2353.0
	 128.1
	 San_Gonzalo_Vein

	 SG_07_40
	 220.0
	 -74.0
	 571899.1
	 2714210.9
	 2320.5
	 516.1
	 San_Gonzalo_Vein

	 SG_08_01
	 35.0
	 -51.0
	 571776.4
	 2713974.1
	 2314.3
	 210.1
	 San_Gonzalo_Vein

	 SG_07_33
	 211.0
	 -43.0
	 572068.6
	 2714009.1
	 2353.0
	 130.6
	 San_Gonzalo_Vein

	 SJG_11_03
	 270.0
	 -45.0
	 570514.5
	 2714192.7
	 2263.1
	 107.6
	 San_Jorge_Vein

	 SJG_11_01
	 195.0
	 -45.0
	 570465.9
	 2714244.6
	 2249.8
	 152.3
	 San_Jorge_Vein

	 SJG_11_02
	 195.0
	 -44.0
	 570505.4
	 2714231.1
	 2252.9
	 137.2
	 San_Jorge_Vein

	 SJV_17_02
	 348.4
	 -34.5
	 571037.7
	 2713019.8
	 2251.0
	 140.9
	 San_Juventino_Vein

	 SJV_17_05
	 337.6
	 -34.6
	 571007.1
	 2712993.6
	 2237.2
	 112.1
	 San_Juventino_Vein

	 SJV_17_04
	 16.5
	 -47.5
	 571091.3
	 2712907.8
	 2220.6
	 190.2
	 San_Juventino_Vein

	 SJV_17_03
	 17.1
	 -34.9
	 571037.5
	 2713025.1
	 2251.2
	 222.0
	 San_Juventino_Vein

	 SJV_16_01
	 1.9
	 -41.6
	 571449.3
	 2712892.6
	 2204.2
	 255.8
	 San_Juventino_Vein

	 SJV_11_03
	 25.0
	 -58.0
	 570621.0
	 2713355.4
	 2221.8
	 100.7
	 San_Juventino_Vein

	 SJV_11_01
	 32.0
	 -44.0
	 570286.6
	 2713468.5
	 2189.2
	 110.4
	 San_Juventino_Vein

	 SJV_17_01
	 15.7
	 -40.8
	 571076.6
	 2713001.9
	 2242.6
	 180.9
	 San_Juventino_Vein

	 SJV_11_02
	 20.0
	 -58.0
	 570480.4
	 2713411.6
	 2210.2
	 105.5
	 San_Juventino_Vein

	 table continues...

 
 
 
 
 
 
 
 
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
    
 	 
	12
	

	 

 
 
 
 
 
 
 
 
  
 	 
	 

 
 
 
 
      
 	 Hole
	 Azimuth ()
	 Dip ()
	 Easting_UTM
	 Northing_UTM
	 Elev_(m)
	 Depth_(m)
	 Target Zone

	 SP&P_07_01
	 351.0
	 -44.0
	 570361.5
	 2715222.3
	 2206.2
	 181.3
	 San_Pedro_Y_San_Pablo_Vein

	 STA_08_02
	 74.0
	 -48.0
	 570947.3
	 2714734.1
	 2197.2
	 110.9
	 Santa_Ana_Vein

	 STA_08_01
	 233.0
	 -63.0
	 571399.4
	 2714807.2
	 2217.3
	 140.2
	 Santa_Ana_Vein

	 STA_07_01
	 66.0
	 -50.0
	 570998.2
	 2714992.1
	 2205.6
	 315.3
	 Santa_Ana_Vein

	 ST_16_01
	 342.7
	 -79.5
	 571183.4
	 2713765.2
	 2245.1
	 261.7
	 Santiago_Vein

	 ST_18_03
	 319.1
	 -61.0
	 571769.5
	 2714095.2
	 2314.3
	 181.9
	 Santiago_Vein

	 ST_18_02
	 165.0
	 -65.3
	 571812.3
	 2714288.5
	 2304.5
	 249.2
	 Santiago_Vein

	 ST_18_01
	 146.8
	 -53.8
	 571713.5
	 2714264.5
	 2296.5
	 211.0
	 Santiago_Vein

	 ST_17_02
	 25.9
	 -36.0
	 571835.3
	 2714076.9
	 2270.3
	 191.5
	 Santiago_Vein

	 ST_17_01
	 6.5
	 -29.0
	 571834.4
	 2714077.9
	 2269.9
	 171.0
	 Santiago_Vein

	 ST_16_02
	 334.6
	 -68.5
	 571183.3
	 2713765.5
	 2245.2
	 158.8
	 Santiago_Vein

	 ST_07_09
	 155.0
	 -49.0
	 571749.3
	 2714200.6
	 2292.8
	 160.6
	 Santiago_Vein

	 ST_07_08
	 156.0
	 -57.0
	 571815.3
	 2714220.0
	 2306.3
	 111.6
	 Santiago_Vein

	 ST_07_05
	 116.0
	 -45.0
	 571677.6
	 2714127.5
	 2277.1
	 196.0
	 Santiago_Vein

	 ST_07_04
	 159.0
	 -44.0
	 571676.9
	 2714127.3
	 2277.0
	 100.9
	 Santiago_Vein

	 ST_07_02
	 179.0
	 -48.0
	 570797.0
	 2713960.2
	 2210.4
	 200.1
	 Santiago_Vein

	 ST_07_01
	 44.0
	 -50.0
	 570794.2
	 2713856.5
	 2213.3
	 309.1
	 Santiago_Vein

	 ST_16_03
	 336.0
	 -68.3
	 571082.1
	 2713715.8
	 2244.8
	 202.0
	 Santiago_Vein

	 TUC_11_01
	 45.0
	 -58.0
	 571805.1
	 2715045.0
	 2217.1
	 166.9
	 Tuceros_Area

	 YL_11_02
	 180.0
	 -48.0
	 572035.0
	 2715590.8
	 2264.3
	 130.7
	 Yolanda_Area

	 YL_11_01
	 178.0
	 -49.0
	 571904.2
	 2715574.1
	 2261.8
	 159.2
	 Yolanda_Area

 
 
 
 
 
 
 
 
 
 
         
  
 	 Avino Silver & Gold Mines Ltd.
		 Appendix B

	 Resource Estimate Update for the
Avino Property, Durango, Mexico
	  
	  

 
 
 
 
           
 	 13Document

Teledyne Technologies Incorporated Performance Plan
(under the Amended and Restated 2014 Incentive Award Plan)

January 2021

The Performance Plan (“PP”) is a long-term incentive plan designed to reward executives and certain key employees (“Participants”) for the Company’s achievement of pre-specified financial goals over a three-fiscal-year period (the “Performance Period”).  A new Performance Period cycle is established each fiscal year with overlapping Performance Period cycles, subject to the approval of the Personnel and Compensation Committee.

Performance Measurement
Company performance is measured using the following weighted financial metrics and aligns Participants with stockholder interests: 

												
	Financial Metric	Three-year aggregate corporate operating profit	Three-year aggregate corporate revenue

	Three-year relative Total Shareholder Return (TSR) versus the S&P 500 Index

	Weighting	40%	30%	30%

At the beginning of each Performance Period, a matrix setting the three-year performance goals for the financial metrics above will be established and submitted for the Personnel and Compensation Committee’s approval.  Depending on actual performance against the pre-determined goals, payouts under the PP after the conclusion of a Performance Period may be from 0% to 200% of Target.  Awards will be denominated 100% cash during the Performance Period.
																		
		Goal as Percent of Target		Payout
	Three-year aggregate corporate operating profit	Three-year aggregate corporate revenue

	Three-year relative Total Shareholder Return (TSR) versus the S&P 500 Index
	Maximum	120%	120%	120%	200%
	Target	100%	100%	100%	100%
	Threshold	75%*	67%	67%	10%

 * No awards are made if the three-year aggregate operating profit is less than 75% of Target, unless otherwise determined by the Personnel and Compensation Committee.  

Note that results between anchor points in the table above are interpolated on a linear basis.

January 2021

Page 1 of 3

Participation 
This Plan is intended to be restricted to Participants whose actions most directly affect the long-term success of the Company.  Participation will be determined based on nomination by the Executive Chairman or Chief Executive Officer and approval by the Personnel and Compensation Committee.  A Participant’s target award is based on a stated percent of the Participant’s annual base salary at the time the PP is set (referred to as a Participant’s “Participation Percentage”).  Participation Percentage varies by position from 10% to 100%.  Participation in one cycle does not guarantee participation in any subsequent cycle.

Calculation of Performance Award at Target

The Personnel and Compensation Committee shall have full power to revise and adjust the Target Performance Award for a three-year cycle and the positions eligible to participate in the Plan at any time during the three-year performance period.

Timing of Payment 
Payments will be made as soon as practicable following the closing of the Performance Period and approval of the award amounts by the Personnel and Compensation Committee. 1 

Clawback Policy
Any award under this plan is subject to the provisions of any claw-back policy implemented by Teledyne, as contemplated by the Amended and Restated Teledyne Technologies Incorporated 2014 Incentive Award Plan, including, without limitation, the Executive Compensation Recoupment (Clawback) Policy adopted on February 25, 2014 or any successor policy.

Non-Transferability 
Performance Awards are non-transferable. 

Termination of Employment 
If a Participant terminates employment because of retirement or disability, such Participant’s PP participation will be prorated based on the number of full months of employment, divided by 36.  Awards will be paid at the same time as Awards are paid to active Participants.  Whether the termination was because of retirement or disability will be determined by the Company in its sole discretion.

If a Participant terminates employment for any other reason prior to the conclusion of the Performance Period, the current cycle’s payment will be forfeited unless deemed otherwise by the Personnel and Compensation Committee. 

1 The prior 2018-2020 Performance Share Plan (PSP) had a three-year Performance Period with three installment payments over a three-year period.  Installment payments for the prior 2018-2020 PSP cycle are governed by their separate plan documents.
January 2021

Page 2 of 3

Change of Control 
In the event of a change in control, a Participant’s participation will be pro-rated based on the number of full months of employment during the cycle, divided by 36, assuming applicable goals are met at 100% of performance targets. On a change in control, awards are paid thirty days following the change in control event.

Tax Consequences
For U.S. Federal income tax purposes, the cash payment made to a Participant under the PP is taxable as wages at ordinary income tax rates in the year in which it is received.  State and local income tax laws generally provide for the same treatment.  The Company is required to withhold applicable taxes at the time it makes any payment. 

Plan Risk
Although the PP is a cash-only plan, a portion of the formula for calculating any potential payments under the plan considers Teledyne’s three-year relative Total Shareholder Return (TSR) versus the S&P 500 Index.  Teledyne’s stock price has fluctuated, and it may continue to do so.  Many factors could affect our stock price, including variations in our operating results and acquisitions and other strategic actions taken by the Company, as well as factors beyond our control, such as general economic factors, volatile energy prices, exchange rate fluctuations, policies of the governments in countries where we work, international unrest and terrorism, as well as extreme weather and natural disasters (including pandemics).

Additional Information
If you have any questions, please contact:

Melanie S. Cibik
Senior Vice President, General Counsel, Chief Compliance Officer and Secretary 
Teledyne Technologies Incorporated
1049 Camino Dos Rios
Thousand Oaks, CA  91360
Telephone: 805-373-4605
Email: melanie.cibik@teledyne.com

January 2021

Page 3 of 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00320-of-00352.parquet"}]]