EX-99.2 3 exhibit2.htm EX-99.2 Exhibit  EX-99.2

British Columbia Securities Commission

BC FORM 51-901F

ISSUER DETAILS:

         
NAME OF ISSUER
  FOR QUARTER ENDED   DATE OF REPORT
 
       
AVINO SILVER & GOLD MINES LTD.
  July 31 2001   September 28, 2001

ISSUER ADDRESS:

Suite 400, 455 Granville Street,

                 
CITY
  PROVINCE   POSTAL CODE.   ISSUER FAX NO   ISSUER TELEPHONE
 
               
Vancouver,
  British Columbia   V6C 1T1   (604) 682-3701   (604) 682-3600
         
CONTACT PERSON   CONTACT’S POSITION   CONTACT TELEPHONE NO.
Andrea Regnier
  Accountant/Secretary   (604) 682-3701

WEB SITE: www.avino.com            e-mail: dawnpacific@telus.net
     

CERTIFICATE

The three schedules required to complete this Report are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of this Quarterly Report will be provided to any shareholder who requests it.

     
DIRECTOR’S SIGNATURE
Signed:
“LOUIS WOLFIN”
  DATE SIGNED
YY/MM/DD
01/09/28
 
   
 
   
DIRECTOR’S SIGNATURE
Signed:
“ERNEST CALVERT”
  DATE SIGNED
YY/MM/DD
01/09/28
 
   

AVINO SILVER & GOLD MINES LTD.
Interim Balance Sheet
(Unaudited – Prepared by Management)

                 
 
  July 31, 2001
  January 31, 2001
 
  $       $    
ASSETS
               
 
               
Current assets:
               
Cash
    6,855       6,267  
Accounts receivable and prepaid expenses
    14,614       9,880  
Due from related parties (Note 6.b)
    22,282       2,057  
 
               
 
    43,751       18,204  
Mineral property interests (Note 2)
    3,252,063       3,236,838  
Investments (Note 3)
    1,211,008       1,689,347  
Other assets (Note 4)
    62,924       82,386  
 
               
 
    4,569,746       5,026,775  
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current Liabilities:
               
Accounts payable and accrued liabilities
    163,368       131,596  
Payable to related parties (Note 6.c)
    413,143       318,358  
 
               
 
    576,511       449,954  
Debentures payable
    1,425,902       1,415,960  
 
               
 
    2,002,413       1,865,914  
 
               
Shareholders’ equity:
               
Capital stock (Note 5)
    12,595,199       12,595,199  
Contributed surplus
    184,967       184,967  
Deficit
    (10,110,964 )     (9,517,436 )
 
               
Deduct: 14,180 shares held for future disposition-at cost
    (101,869 )     (101,869 )
 
               
 
    2,567,333       3,160,861  
 
               
 
    4,569,746       5,026,775  
 
               

On behalf of the Board:

“Louis Wolfin”
     Director

“Ernest Calvert”
     Director

AVINO SILVER & GOLD MINES LTD.
Interim Statement of Operations and Deficit
(Unaudited – Prepared by Management)

                                 
    3 months ended July 31   6 months ended July 31,
    2001   2002   2001   2000
Revenue:
  $       $       $       $    
Interest
    (1,537 )     192       (1,537 )     (443 )
 
                               
Administrative expenses
                               
Amortization of deferred
                               
financing costs
          8,087             16,175  
Amortization of deferred exchange loss
    8,773             23,330        
Accounting and audit fees
    255       675       736       5,040  
Consulting fees
    7,500       7,500       15,000       15,000  
Interest expense
    16,476       27,960       32,952       52,346  
Insurance, business license and taxes
                103       500  
Foreign exchange
    6,478             15,457        
Investor relations and Shareholder information
    1,140       4,705       1,266       6,841  
Legal fees
    625       1,654       625       1,994  
Listings and filing fees
    501       1,305       958       1,305  
Office and administration
    8,154       6,228       14,657       12,151  
Transfer agent fees
    2,445       1,645       2,818       2,100  
Travel and accommodation
    1,545       4,958       1,545       4,958  
Salaries and benefits
    4,061       7,141       7,279       15,189  
 
                               
Loss before the following
    (56,416 )     (71,666 )     (115,189 )     (133,156 )
Equity in loss of affiliate
    (341,732 )     (262,488 )     (478,339 )     (99,291 )
 
                               
(Loss) net income for the period
    (298,148 )     (334,154 )     (593,528 )     (232,447 )
Deficit, beginning of period
    (9,712,816 )     (7,963,084 )     (9,517,436 )     (8,398,945 )
 
                               
Deficit, end of period
    (10,110,964 )     (8,297,238 )     (10,110,964 )     (8,631,392 )
 
                               
(Loss) gain per share
  $ (0.03 )   $ (0.02 )   $ (0.04 )   $ (0.01 )
 
                               

AVINO SILVER & GOLD MINES LTD.
Interim Statement of Cash Flows
(Unaudited – Prepared by Management)

                                 
    3 months ended July 31   6 months ended July 31,
    2001   2002   2001   2000
    $   $   $   $
PROVIDED BY                                
(USED IN)                                
 
                               
 
                               
Operating activities:
                               
(Loss) net income for the period
    (398,148 )     (334,154 )     (593,528 )     (232,447 )
 
                               
Items not involving cash:
                               
Equity in loss (income) of
                               
affiliate
    341,732       262,488       478,339       99,291  
Amortization of deferred
                           
financing charges
            8,087               16,175  
Amortization of deferred
                           
foreign exchange
    (8,773 )             9,942          
Finance expense
    16,476             32,952        
Interest expense on
                           
debenture payable
    (16,476 )             (32,952 )        
 
                               
 
    (65,189 )     (63,579 )     (105,247 )     (116,981 )
 
                               
 
                               
Changes in non-cash working capital items:
                               
Amounts receivable and prepaid expenses
    (15,226 )     383,030       (24,960 )     380,530  
Accounts payable and accrued liabilities
    (1,702 )     94,094       31,772       198,607  
Payable to related parties
    75,110             94,786       (42,260 )
 
                               
 
    58,182       477,124       101,598       536,877  
 
                               
Investing activities:
                               
Mineral property interest
    (13,259 )     (12,875 )     (15,225 )     (18,092 )
Term deposits
    6,075             6,075        
Deferred foreign exchange
    17,350             13,387        
loss
                           
Marketable securities
            (397,848 )             (397,848 )
 
                               
 
    10,166       (410,723 )     4,237       (415,940 )
Increase (Decrease) in cash
    3,159       (2,822 )     588       3,956  
Cash, beginning of period
    3,696       6,744       6,267       5,600  
 
                               
Cash, end of period
    6,855       9,566       6,855       9,566  
 
                               

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements
July 31 2001
(Unaudited – Prepared by Management)

1. Summary of significant accounting policies

Joint Venture

Investments in joint ventures are accounted for by the proportionate consolidation method. At the balance sheet date the Company had a 50% interest in a joint venture with Bralorne-Pioneer Gold Mines Ltd. The accompanying financial statements include the Company’s proportionate share of the assets, liabilities and expenses of the joint venture.

2. Mineral Properties

Exploration and development expenditures incurred during the period are as follows:

                 
 
  July 31   January 31
 
  3 months   12 months
Balance beginning of period:
  $ 3,236,838     $ 3,210,166  
Bralorne Property
               
Equipment rental
    696          
Geochemical/assays
    229          
Liability and property insurance
    91       5,240  
Meal, accommodation, travel
    457          
Mine development
    5,205          
Mine power
    3,769       9,143  
Mine office
    449       6,137  
Mine Maintenance
    50       1,306  
Mine supplies
    2,088          
Property taxes and assessment
    859       2,742  
Salaries
    887          
Staking and prospecting
    395          
Other
          2,104  
 
               
Balance end of period
  $ 3,252,063     $ 3,236,838  
 
               

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements, Page 2
July 31 2001 (Unaudited – Prepared by Management)

3. Investments

Investments consist of:

                 
 
  July 31   January 31
 
  3 months   12 months
 
               
Investments accounted for using the equity method:
               
Cia Minera Mexicana de Avino S.A. de C.V. (“Cia Minera”)
  $ 781,100     $ 1,259,439  
 
               
Investments carried at cost:
               
Bralorne-Pioneer Gold Mines Ltd.
    422,848       422,848  
Levon Resources Ltd.
    7,060       7,060  
 
               
 
  $ 1,211,008     $ 1,689,347  
 
               

4. Other Assets

a) Other assets consist of:

                 
 
  July 31   January 31
 
  3 months   12 months
Deferred financing charges related to eastablishing Debenture payable
    281,317     $ 281,317  
 
               
Deferred foreign exchange loss on debenture payable
    26,320       39,707  
Accumulated amortization
    (281,317 )     (281,317 )
 
    26,320       39,707  
Term deposits
    36,604       42,679  
 
               
 
  $ 62,924     $ 82,386  
 
               

5. Share Capital

Authorized: 25,000,000 common shares without par value
Issued:

                 
    Shares   Amount
Balance, beginning of period
    4,577,686     $ 12,595,199  
 
               
Balance, end of period
    4,577,686     $ 12,595,199  
 
               

AVINO SILVER & GOLD MINES LTD.
Notes to Interim Financial Statements, Page 3
July 31 2001
(Unaudited – Prepared by Management)

6. Related Party Transactions

Related party transactions not disclosed elsewhere in these statements are as follows:

a) During the period the company paid, or made provision for the future payment of the following amounts to related parties:

i) $43,130 to a company with two common directors for
reimbursement of costs incurred on behalf of the company for
administrative and exploration costs.

ii) $15,000 to a private company controlled by a Director for consulting fees.

b) Included in the accounts receivable is an amount of $22,282 due from companies with common directors.

c) Payable to related parties consist of $119,374 due to a private company controlled by two directors as disclosed in 6.a)i) above; $82,812 due to a private company controlled by a Director; $105,957 due to companies with common directors, and $105,000 due to a Director of the company for a cash loan.