EX-99.1 2 avino_ex991.htm TECHNICAL REPORT
EXHIBIT 99.1
Report to:
Technical Report on the Avino Property
Document No. 1151920100-REP-R0002-04

Report to:
TECHNICAL REPORT ON THE AVINO PROPERTY
E FFECTIVE D ATE: JULY 24, 2012

Prepared by | Jacques Ouellet, P.Eng., Ph.D.
| Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM
| Hassan Ghaffari, P.Eng.
| Sabry Abdel Hafez, Ph.D., P.Eng.
| Harvey Wayne Stoyko, P.Eng.
| Monica Danon-Schaffer, Ph.D., P.Eng.

WS/vc
Suite 800, 555 West Hastings Street, Vancouver, British Columbia V6B 1M1
Phone: 604-408-3788 Fax: 604-408-3722 E-mail: vancouver@wardrop.com

REVISION HISTORY

REV. NO | ISSUE DATE | PREPARED BY AND DATE | REVIEWED BY AND DATE | APPROVED BY AND DATE | DESCRIPTION OF REVISION
00 | 2012/06/22 | All QPs | Jeff Wilson | Wayne Stoyko | Draft to Client
01 | 2012/06/25 | All QPs | Jeff Wilson | Wayne Stoyko | Final Report
02 | 2012/07/11 | All QPs | - | Wayne Stoyko | Final Report – Amended
03 | 2012/07/19 | All QPs | - | Wayne Stoyko | Final Report – Amended
04 | 2012/07/24 | All QPs | - | Wayne Stoyko | Final Report – Amended

TABLE OF CONTENTS

1.0 | SUMMARY | 1-1
| 1.1 | INTRODUCTION | 1-1
| 1.2 | PROPERTY DESCRIPTION AND LOCATION | 1-1
| 1.3 | GEOLOGY | 1-3
|  | 1.3.1 | AVINO VEIN | 1-4
|  | 1.3.2 | SAN GONZALO VEIN | 1-5
|  | 1.3.3 | OXIDE AND SULPHIDE TAILINGS | 1-5
| 1.4 | OXIDE TAILINGS RESOURCE ESTIMATE | 1-5
| 1.5 | MINERAL PROCESSING, METALLURGICAL TESTING AND RECOVERY METHODS | 1-6
| 1.6 | MINING METHODS | 1-6
| 1.7 | ENVIRONMENTAL | 1-7
| 1.8 | CAPITAL AND OPERATING COSTS | 1-7
| 1.9 | ECONOMIC ANALYSIS | 1-8
| 1.10 | RECOMMENDATIONS | 1-9
|  | 1.10.1 | RESOURCE ESTIMATE | 1-9
|  | 1.10.2 | PROCESS | 1-9
|  | 1.10.3 | ENVIRONMENTAL | 1-10
2.0 | INTRODUCTION | 2-1
| 2.1 | TERMS OF REFERENCES AND PURPOSE OF REPORT | 2-1
|  | 2.1.1 | UNITS OF MEASUREMENT | 2-2
| 2.2 | EFFECTIVE DATES | 2-3
| 2.3 | INFORMATION AND DATA SOURCES | 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 | 1968-2001 OWNERSHIP – AVINO MINES AND RESOURCES LTD | 4-1
| 4.3 | MINERAL CONCESSIONS AND AGREEMENTS | 4-3
5.0 | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY | 5-1
| 5.1 | ACCESSIBILITY | 5-1
| 5.2 | CLIMATE AND PHYSIOGRAPHY | 5-1
| 5.3 | LOCAL RESOURCES AND INFRASTRUCTURE | 5-1
6.0 | HISTORY | 6-1
| 6.1 | AVINO MINE, 1555-1968 | 6-1
| 6.2 | SAN GONZALO DEPOSIT | 6-1

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 | 7-5
|  | 7.2.2 | SAN GONZALO VEIN | 7-6
8.0 | DEPOSIT TYPES |  | 8-1
9.0 | EXPLORATION |  | 9-1
| 9.1 | EARLY EXPLORATION (PRIOR TO MINE CLOSURE), 1968-2001 | 9-1
| 9.2 | RECENT EXPLORATION (POST MINE CLOSURE), 2001-PRESENT | 9-2
|  | 9.2.1 | TAILINGS INVESTIGATIONS (OXIDES), 2003 AND 2004 | 9-3
|  | 9.2.2 | TAILINGS SAMPLING (SULPHIDES), 2005 | 9-5
|  | 9.2.3 | UNDERGROUND CHANNEL SAMPLING OF SAN GONZALO VEIN, 2010 | 9-5
|  | 9.2.4 | BULK SAMPLE PROGRAM OF SAN GONZALO VEIN, 2011 | 9-6
10.0 | DRILLING |  | 10-1
| 10.1 | EARLY DRILLING (PRIOR TO MINE CLOSURE), 1968-2001 | 10-1
|  | 10.1.1 | AVINO VEIN | 10-1
|  | 10.1.2 | OXIDE TAILINGS, 1990-1991 | 10-1
| 10.2 | RECENT DRILLING (POST MINE CLOSURE), 2001 TO PRESENT | 10-9
|  | 10.2.1 | AVINO VEIN (INCLUDING ET ZONE) AND NEARBY VEINS | 10-9
|  | 10.2.2 | SAN GONZALO AND NEARBY VEINS | 10-11
11.0 | SAMPLE PREPARATION, ANALYSES, AND SECURITY | 11-1
| 11.1 | DRILLING AND TRENCHING OF OXIDE TAILINGS, 1990-1991 | 11-1
| 11.2 | TAILINGS INVESTIGATIONS (TEST PITS IN OXIDE TAILINGS), 2004 | 11-1
| 11.3 | 2007, 2008, AND 2011 DRILLING PROGRAM, SAN GONZALO | 11-2
| 11.4 | 2006, 2007, 2008, AND 2012 DRILLING PROGRAMS, ET ZONE OF THE AVINO VEIN | 11-3
| 11.5 | UNDERGROUND CHANNEL SAMPLING OF SAN GONZALO VEIN, 2010 | 11-3
| 11.6 | 2011 BULK SAMPLING PROGRAM, SAN GONZALO | 11-3
| 11.7 | AVINO LABORATORY | 11-4
12.0 | DATA VERIFICATION | 12-1
| 12.1 | DATABASE |  | 12-1
| 12.2 | ASSAY VERIFICATION | 12-1
|  | 12.2.1 | 1990/1991 DRILLHOLES IN OXIDE TAILINGS | 12-1
|  | 12.2.2 | DRILLING ON THE SAN GONZALO AND AVINO VEINS | 12-2
| 12.3 | SITE VISIT AND VERIFICATION SAMPLES | 12-3
| 12.4 | TETRA TECH OPINION | 12-11
13.0 | MINERAL PROCESSING AND METALLURGICAL TESTING | 13-1
| 13.1 | A METALLURGICAL REVIEW | 13-1
|  | 13.1.1 | A HISTORICAL EVALUATION OF THE OXIDE TAILINGS | 13-1
|  | 13.1.2 | HISTORICAL METALLURGICAL TEST RESULTS | 13-2
|  | 13.1.3 | THE MMI TECHNICAL REPORT | 13-3
|  | 13.1.4 | INTRODUCTION TO THE MMI 2003 METALLURGICAL TEST PROGRAM | 13-4

|  | 13.1.5 | INTRODUCTION TO THE MMI 2004 METALLURGICAL TEST PROGRAM | 13-4
|  | 13.1.6 | EVALUATION AND REVIEW OF METALLURGICAL TESTS | 13-5
|  | 13.1.7 | GRAVITY CONCENTRATION | 13-18
|  | 13.1.8 | FLOTATION | 13-19
|  | 13.1.9 | CYANIDE LEACHING | 13-19
|  | 13.1.10 | COLUMN LEACH TEST | 13-20
|  | 13.1.11 | PRECIOUS METAL RECOVERY | 13-21
14.0 | MINERAL RESOURCE ESTIMATES | 14-1
| 14.1 | OXIDE TAILINGS | 14-1
|  | 14.1.1 | DATA SELECTION | 14-1
|  | 14.1.2 | ESTIMATION UNITS | 14-2
|  | 14.1.3 | DATABASE | 14-6
|  | 14.1.4 | SPECIFIC GRAVITY | 14-6
|  | 14.1.5 | EXPLORATORY DATA ANALYSIS | 14-6
|  | 14.1.6 | BLOCK MODEL | 14-16
|  | 14.1.7 | INTERPOLATION PLAN | 14-18
|  | 14.1.8 | MINERAL RESOURCE CLASSIFICATION | 14-24
|  | 14.1.9 | MINERAL RESOURCE ESTIMATE | 14-24
|  | 14.1.10 | BLOCK MODEL VALIDATION | 14-31
| 14.2 | SULPHIDE TAILINGS | 14-34
| 14.3 | OPEN PIT | 14-35
| 14.4 | UNDERGROUND MINE | 14-35
| 14.5 | SAN GONZALO VEIN | 14-35
|  | 14.5.1 | 2011 BULK SAMPLE | 14-35
|  | 14.5.2 | CHANNEL SAMPLING | 14-36
|  | 14.5.3 | ADDITIONAL DELINEATION DRILLING | 14-36
|  | 14.5.4 | UNDERGROUND DEVELOPMENT | 14-36
15.0 | MINERAL RESERVE ESTIMATES | 15-1
16.0 | MINING METHODS | 16-1
| 16.1 | PREVIOUS MINING METHODS, OXIDE TAILINGS, 1976-2011 | 16-1
| 16.2 | PREVIOUS MINING, SAN GONZALO, 2009-2012 | 16-1
| 16.3 | PROPOSED MINING METHODS | 16-2
| 16.4 | SCHEDULE | 16-2
| 16.5 | EQUIPMENT | 16-3
| 16.6 | MODIFYING SITE CONSIDERATIONS | 16-3
17.0 | RECOVERY METHODS | 17-1
| 17.1 | INTRODUCTION | 17-1
|  | 17.1.1 | POTENTIAL REVENUE ESTIMATION | 17-1
| 17.2 | SUMMARY | 17-3
| 17.3 | MAJOR DESIGN CRITERIA | 17-5
| 17.4 | PLANT DESIGN | 17-5
|  | 17.4.1 | OPERATING SCHEDULE AND AVAILABILITY | 17-5
| 17.5 | PROCESS PLANT DESCRIPTION | 17-5

18.0 | PROJECT INFRASTRUCTURE | 18-1
19.0 | MARKET STUDIES AND CONTRACTS | 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 | 20-3
|  | 20.2.2 | CURRENT PERMITS FOR THE SAN GONZALO MINE (ADJACENT) | 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 COSTS | 21-1
| 21.1 | CAPITAL COSTS | 21-1
|  | 21.1.1 | INTRODUCTION | 21-1
|  | 21.1.2 | BASIS OF ESTIMATE | 21-1
|  | 21.1.3 | CAPITAL COST SUMMARY | 21-3
| 21.2 | OPERATING COSTS | 21-5
|  | 21.2.1 | PROCESS OPERATING COST ESTIMATE | 21-5
22.0 | ECONOMIC ANALYSIS | 22-1
| 22.1 | INTRODUCTION | 22-1
| 22.2 | PRE-TAX MODEL | 22-1
|  | 22.2.1 | MINE/METAL PRODUCTION IN FINANCIAL MODEL | 22-1
|  | 22.2.2 | BASIS OF FINANCIAL EVALUATIONS | 22-2
| 22.3 | SUMMARY OF FINANCIAL RESULTS | 22-3
| 22.4 | SENSITIVITY ANALYSIS | 22-4
| 22.5 | ROYALTIES | 22-6
| 22.6 | SMELTER TERMS | 22-6
| 22.7 | TRANSPORTATION LOGISTICS | 22-6
|  | 22.7.1 | INSURANCE | 22-6
23.0 | ADJACENT PROPERTIES | 23-1
24.0 | OTHER RELEVANT DATA AND INFORMATION | 24-1
| 24.1 | INFRASTRUCTURE AND MILL REFURBISHMENT | 24-1
25.0 | INTERPRETATION AND CONCLUSIONS | 25-1

| 25.1 | GEOLOGY | 25-1
| 25.2 | RESOURCE ESTIMATE | 25-1
| 25.3 | MINERAL PROCESSING | 25-1
| 25.4 | MINING | 25-2
| 25.5 | CAPITAL AND OPERATINGCOSTS | 25-3
| 25.6 | ECONOMIC ANALYSIS | 25-4
26.0 | RECOMMENDATIONS | 26-1
| 26.1 | RESOURCE ESTIMATE | 26-1
| 26.2 | PROCESS | 26-1
|  | 26.2.1 | REFURBISHED EQUIPMENT | 26-2
|  | 26.2.2 | ASSAY LABORATORY EQUIPMENT | 26-2
|  | 26.2.3 | SULPHIDE TAILINGS | 26-2
| 26.3 | ENVIRONMENTAL | 26-2
| 26.4 | PROJECT SCHEDULE | 26-3
27.0 | REFERENCES |  | 27-1
28.0 | CERTIFICATES OF QUALIFIEDPERSON | 28-1

LIST OF APPENDICES

APPENDIX A | DRILLHOLE ASSAY DATA |
APPENDIX B | VERIFICATION DATA |
APPENDIX C | PROCESS FLOW DIAGRAMS |
APPENDIX D | DESIGN CRITERIA |

LIST OF TABLES

Table 1.1 | Summary of Property Ownership | 1-3
Table 1.2 | CAPEX Summary | 1-7
Table 1.3 | OPEX Summary | 1-8
Table 2.1 | Summary of QPs | 2-1
Table 4.1 | Summary of Property Ownership | 4-4
Table 4.2 | Mineral Concessions Avino Property | 4-5
Table 9.1 | 2004 Sample Composites Assays | 9-3
Table 9.2 | Select Assay Results from Underground Channel Sampling of San Gonzalo Vein | 9-5
Table 9.3 | San Gonzalo Bulk Sample | 9-6

Table 9.4 | Assay Results from Underground Channel Sampling of San Gonzalo Vein | 9-7
Table 10.1 | Summary of 1990/1991 Holes | 10-1
Table 10.2 | Assay Results from 1990/1991 Holes in Oxide Tailings | 10-4
Table 10.3 | ET Zone and Avino Vein Drillholes from the 2006, 2007, 2008, and 2012 Drilling Programs | 10-10
Table 10.4 | Drillholes from the 2008 and 2011 Drill Programs at San Gonzalo | 10-14
Table 12.1 | 1990/1991 Assay Database Errors | 12-2
Table 12.2 | 2011-2012 Assay Database Errors | 12-3
Table 12.3 | Results of Verification Samples | 12-4
Table 12.4 | Correlation Coefficient Matrix for Silver Verification Sample Assays | 12-9
Table 12.5 | Correlation Coefficient Matrix for Gold Verification Sample Assays | 12-9
Table 12.6 | Correlation Coefficient Matrix for Lead Verification Sample Assays | 12-10
Table 12.7 | Correlation Coefficient Matrix for Zinc Verification Sample Assays | 12-10
Table 12.8 | Correlation Coefficient Matrix for Copper Verification Sample Assays | 12-10
Table 13.1 | Oxide Tailings Dam Data | 13-1
Table 13.2 | Cyanidation Test Results | 13-2
Table 13.3 | Flotation Test Results | 13-2
Table 13.4 | Test Procedures MMI 2003 Test Program | 13-4
Table 13.5 | Test Procedures – MMI 2004 Test Program | 13-5
Table 13.6 | Moisture Content of Samples | 13-7
Table 13.7 | Head Assays | 13-9
Table 13.8 | Bulk Density and Specific Gravity | 13-10
Table 13.9 | Summary of Results of Gravity Concentration Tests | 13-12
Table 13.10 | Summary of Results of Flotation Tests | 13-14
Table 13.11 | Summary of Results of PRA Cyanidation Tests | 13-15
Table 13.12 | Summary of Cyanidation Test Results Used by the MMI Reports | 13-16
Table 13.13 | Summary of Results of Column Leach Tests | 13-17
Table 13.14 | Cyanide Leaching Parameters | 13-20
Table 14.1 | Variography Parameters Gold and Silver in Phases 1.1 and 1.2 | 14-15
Table 14.2 | Block Coordinates for the Avino Oxide Tailings Block Model | 14-16
Table 14.3 | Description of Interpolation Passes for the Oxide Tailings | 14-18
Table 14.4 | Oxide Tailings Search Ellipse Parameters | 14-19
Table 14.5 | Mineral Resource Summary for the Avino Oxide Tailings Deposit; Density Assumed at 1.605 | 14-25
Table 14.6 | Lognormal Estimate Statistics | 14-33
Table 14.7 | Comparison of OK and Three-parameter Lognormal Estimations | 14-34
Table 14.8 | Target Resource for Further Exploration within Sulphide Tailings | 14-34
Table 14.9 | San Gonzalo Bulk Sample | 14-35
Table 16.1 | Mining Production Schedule | 16-3
Table 17.1 | Inherent Value of Oxide Tailings | 17-2
Table 17.2 | Summary of Cost Estimates – Four-Year Treatment | 17-2
Table 17.3 | Major Design Criteria | 17-5
Table 20.1 | Mammal Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine | 20-1
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 | 20-2
Table 20.4 | Amphibian Species Listed by NOM-059-SEMARNAT-2001 or in CITES within the San Gonzalo Mine | 20-3
Table 21.1 | Currency Exchange Rate | 21-2

Table 21.2 | Inflation Rates in Mexico | 21-2
Table 21.3 | CAPEX Summary | 21-3
Table 21.4 | OPEX Summary | 21-5
Table 21.5 | Process Plant Manpower Requirements | 21-6
Table 21.6 | G&A Manpower Requirements | 21-7
Table 21.7 | Process Power Supply | 21-8
Table 21.8 | Process Maintenance Supplies | 21-8
Table 21.9 | Plant Operating Supplies | 21-9
Table 21.10 | G&A Expenses | 21-9
Table 22.1 | Metal Production from the Avino Mine Tailings Retreatment | 22-2
Table 22.2 | Summary of Pre-tax Financial Results | 22-4
Table 25.1 | Cost Summary | 25-2
Table 25.2 | CAPEX Summary | 25-3
Table 25.3 | OPEX Summary | 25-4

LIST OF FIGURES

Figure 1.1 | General Property Location Map | 1-2
Figure 4.1 | General Property Location Map | 4-2
Figure 4.2 | Property Location Map of the Avino Mine Project | 4-3
Figure 4.3 | Map of Avino Mine Property Concessions | 4-6
Figure 7.1 | General Map of Property Geology | 7-3
Figure 7.2 | Plan Map of San Gonzalo Veins and Other Nearby Veins | 7-4
Figure 7.3 | Orthogonal View of Tailings Pile (Looking Roughly to the North) | 7-8
Figure 7.4 | Cross Sectional View of Tailings Pile (Looking North) | 7-9
Figure 9.1 | Plan View Location Map of Samples from Oxide Tailings | 9-4
Figure 10.1 | Plan View of 1990 Hole Locations | 10-3
Figure 10.2 | Plan View Map Illustrating Location of Drillholes on the Avino Vein and ET Zone | 10-12
Figure 10.3 | Plan View Map Illustrating Location of Drillholes on the San Gonzalo Vein | 10-13
Figure 11.1 | Head Grade Composite Assay Comparison for Gold and Silver Between the Avino and SGS Durango Laboratories (Jan to May 2012) | 11-4
Figure 12.1 | Linear Plot Comparing Silver Assay Results from Verification Samples | 12-5
Figure 12.2 | Linear Plot Comparing Gold Assay Results from Verification Samples | 12-6
Figure 12.3 | Linear Plot Comparing Lead Assay Results from Verification Samples | 12-7
Figure 12.4 | Linear Plot Comparing Zinc Assay Results from Verification Samples | 12-8
Figure 12.5 | Linear Plot Comparing Copper Assay Results from Verification Samples | 12-9
Figure 12.6 | Tailings Deposit (Viewing from the Northeast) | 12-11
Figure 14.1 | Perspective View of the Avino Oxide Tailings Block Model; Looking North- northwest (Showing Drillhole Numbers | 14-3
Figure 14.2 | Section View of the Avino Tailings Deposit; Looking Northeast | 14-4
Figure 14.3 | Section View of the Avino Tailings Deposit; Looking Northeast | 14-5
Figure 14.4 | Histogram of Silver and Gold Composites for Phase 1.2 | 14-8
Figure 14.5 | Histogram of Silver and Gold Composites for Phase 1.1 | 14-9
Figure 14.6 | Experimental and Modelled Variography for Silver – Phase 1.1 | 14-10
Figure 14.7 | Experimental and Modelled Variography for Silver – Phase 1.2 | 14-11
Figure 14.8 | Turning Bands Simulation (X-Y) Check of Variography for Silver | 14-11

Figure 14.9 | Turning Bands Simulation (X-Z) Check of Variography for Silver | 14-12
Figure 14.10 | Experimental and Modelled Variography for Gold – Phase 1.1 | 14-13
Figure 14.11 | Experimental and Modelled Variography for Gold – Phase 1.2 | 14-13
Figure 14.12 | Turning Bands Simulation (X-Y) Check of Variography for Gold | 14-14
Figure 14.13 | Turning Bands Simulation (X-Z) Check of Variography for Gold | 14-15
Figure 14.14 | Plan View of the Oxide Tailings Block Model (North is Up) | 14-17
Figure 14.15 | Section View of the Block Model (Looking North) | 14-18
Figure 14.16 | Histogram of Silver in Phase 1.1 | 14-20
Figure 14.17 | Histogram of Silver in Phase 1.2 | 14-21
Figure 14.18 | Histogram of Gold in Phase 1.1 | 14-22
Figure 14.19 | Histogram of Gold in Phase 1.2 | 14-23
Figure 14.20 | Grade-cut-off Curve for Silver in the Oxide Tailings (Silver g/t) | 14-28
Figure 14.21 | Grade-tonnage Curve for Silver in the Oxide Tailings Inferred Resource Estimate (Silver g/t) | 14-29
Figure 14.22 | Grade-cut-off Curve for Silver in the Oxide Tailings (Gold g/t) | 14-30
Figure 14.23 | Grade-Tonnage Curve for Silver in the Oxide Tailings Inferred Resource Estimate (Gold g/t) | 14-31
Figure 14.24 | Distribution of Grades With a Lognormal Estimation | 14-32
Figure 14.25 | Distribution of Grades With a Lognormal Interpolation Plus Additive Constant | 14-33
Figure 17.1 | Simplified Process Flowsheet | 17-4
Figure 22.1 | Undiscounted Annual and Cumulative Net Cash Flow | 22-3
Figure 22.2 | NPV Sensitivity Analysis | 22-5
Figure 22.3 | IRR Sensitivity Analysis | 22-5
Figure 22.4 | Payback Period Sensitivity Analysis | 22-6
Figure 26.1 | Tailings Retreatment Project Suggested High-level Schedule | 26-4

GLOSSARY

UNITS OF MEASURE |
above mean sea level | amsl
acre | ac
ampere | A
annum (year) | a
billion | B
billion tonnes | Bt
billion years ago | Ga
British thermal unit | BTU
centimetre | cm
cubic centimetre | cm 3
cubic feet per minute | cfm
cubic feet per second | ft 3/s
cubic foot | ft 3
cubic inch | in 3

cubic metre | m3
cubic yard | yd3
Coefficients of Variation | CVs
day | d
days per week | d/wk
days per year (annum) | d/a
dead weight tonnes | DWT
decibel adjusted | dBa
decibel | dB
degree | °
degrees Celsius | °C
diameter | ø
dollar (American) | US$
dollar (Canadian) | CDN$
dry metric ton | dmt
foot | ft
gallon | gal
gallons per minute (US) | gpm
Gigajoule | GJ
gigapascal | GPa
gigawatt | GW
gram | g
grams per litre | g/L
grams per tonne | g/t
greater than | >
hectare (10,000 m2) | ha
hertz | Hz
horsepower | hp
hour | h
hours per day | h/d
hours per week | h/wk
hours per year | h/a
inch | in
kilo (thousand) | k
kilogram | kg
kilograms per cubic metre | kg/m3
kilograms per hour | kg/h
kilograms per square metre | kg/m2
kilometre | km
kilometres per hour | km/h
kilopascal | kPa
kilotonne | kt
kilovolt | kV
kilovolt-ampere | kVA
kilovolts | kV
kilowatt | kW

kilowatt hour | kWh
kilowatt hours per tonne | kWh/t
kilowatt hours per year | kWh/a
less than | <
litre | L
litres per minute | L/m
megabytes per second | Mb/s
megapascal | MPa
megavolt-ampere | MVA
megawatt | MW
metre | m
metres above sea level | masl
metres Baltic sea level | mbsl
metres per minute | m/min
metres per second | m/s
microns | µm
milligram | mg
milligrams per litre | mg/L
millilitre | mL
millimetre | mm
million | M
million bank cubic metres | Mbm3
million bank cubic metres per annum | Mbm3/a
million tonnes | Mt
minute (plane angle) | '
minute (time) | min
month | mo
ounce | oz
pascal | Pa
centipoise | mPa∙s
parts per million | ppm
parts per billion | ppb
percent | %
pound(s) | lb
pounds per square inch | psi
revolutions per minute | rpm
second (plane angle) | "
second (time) | s
short ton (2,000 lb) | st
short tons per day | st/d
short tons per year | st/y
specific gravity | SG
square centimetre | cm2
square foot | ft2
square inch | in2
square kilometre | km2

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
tonnes seconds per hour metre cubed | ts/hm3
volt | V
week | wk
weight/weight | w/w
wet metric ton | wmt
ABBREVIATIONS AND ACRONYMS
acid-base accounting | ABA
net cash flow | NCF
atomic absorption | AA
Automated Digital Imaging System | ADIS
Avino Silver & Gold Mines Ltd. | Avino
British Columbia Securities Commission | BCSC
Canadian Institute of Mining, Metallugy, and Petroleum | CIM
Cannon-Hicks & Associates Ltd | Cannon-Hicks
capital cost estimate | CAPEX
Compañia Minera Mexicana de Avino | CMMA
Convention on International Trade in Endangered Species of Wild Fauna and Flora | CITES
cumulative net cash flow | CNCF
Electrometals Electrowinning | EMEW
Elena Toloso Zone | ET Zone
environmental impact assessment | EIA
environmental impact statement | EIS
fire assay | FA
general & administrative | G&A
global positioning system | GPS
induced polarization | IP
inductively coupled plasma | ICP
inductively coupled plasma-spectroscopy method | ICP-MS
internal rate of return | IRR
International Organization for Standardization | ISO
inverse distance squared | ID2
Ley General del Equilibrio Ecológico y la Protección al Ambiente | LGEEPA
Ley General para la Prevención y Gestión Integral de los Residuos | LGPGIR
London Metal Exchange | LME
Manifestación de Impacto Ambiental | MIA
Manifestación de Impacto Ambeintal, modalidad Particular | MIA-P
Minerales de Avino, Sociedad Anonima de Capital Variable | Minerales
National Instrument 43-101 | NI 43-101
net present value | NPV

net smelter return | NSR
New York Stock Exchange | NYSE
operating cost estimate | OPEX
ordinary kriging | OK
Process Research Associates Ltd. | PRA
Qualified Person | QP
quality assurance/quality control | QA/QC
Reglamento en Materia de Evaluacion del Impacto Ambiental | REIA
Secretaría de Medio Ambiente y Recursos Naturales | SEMARNAT
Selco Mining and Development | Selco
SGS Canada Inc | SGS Canada
SGS de Mexico S.A. de C.V. | SGS Mexico
Tetra Tech Wardrop | Tetra Tech
the Avino Mine | the Property or the Project
Toronto Stock Exchange Venture Exchange | TSX

1.0 SUMMARY

1.1 I NTRODUCTION
Avino Silver & Gold Mines Ltd. (Avino) is a Canadian-based mining and exploration company listed on the Toronto Stock Exchange Venture Exchange (TSXV) and the New York Stock Exchange (NYSE) with precious metal properties in Mexico and Canada.
The Avino Mine (the Property or the Project), near Durango, Mexico, is Avino’s principal asset and is the subject of this preliminary economic assessment, which includes a current resource estimate on the oxide tailings. Avino holds a 96.5996% interest in the Property through its subsidiary company called Compañía Minera Mexicana de Avino (CMMA). Avino commenced development, including drilling and bulk sampling, on the San Gonzalo vein in 2010 and this exploration is ongoing. This exploration 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 2005) as well as an apparently undocumented amount of lead.
Tetra Tech Wardrop (Tetra Tech) was retained by Avino to produce a technical report on the Property, including a resource estimate and preliminary economic assessment on the oxide tailings, in accordance with National Instrument 43-101 (NI 43-101) and Form 43-101F1.
All units of measurement used in this technical report and resource estimate are in metric, and currency is expressed in US dollars, unless otherwise stated.
1.2 P ROPERTY D ESCRIPTION AND L OCATION
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). The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha. Of these, 22 mineral concessions, totalling 1,005.104 ha, are held by CMMA (Avino’s Mexican subsidiary company), by Promotora Avino SA de CV, and by Susesion de la Sra. Elena del Hoyo Algara de Ysita. Ownership proportions are summarized in Table 1.1.

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Table 1.1 | Summary of Property Ownership |

Company | Relationship to Avino Silver and Gold Mines Ltd. | Effective Ownership of Avino Mine Property (%)
CMMA | Subsidiary | 96.60
Promotora Avino, S.A. de C.V. | Subsidiary | 2.68
Total Effective Ownership of | - | 99.28
Avino Mine Property |  |
Estate of Ysita | Non-controlling interest | 0.72
Total | - | 100.00

Through its subsidiary company, Avino entered into an agreement (the Agreement) on February 18, 2012 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 Elena Toloso Zone (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 must pay to Minerales the sum of US$250,000 by the issuance of common shares of Avino. Avino will have a period of 24 months for the development of mining facilities. 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 land owners (Ejidos) of San Jose de Avino, for the temporary occupation and surface rights of the concessions.
1.3 G EOLOGY
The geology of the Property is quoted from Slim (2005d):
"The Avino mine lies in the Sierra de Gamon, on the east flank of the geological province of the Sierra Madre Occidental. The area represents a geological window, with outcrops of andesite, rhyolites and trachytes of the Lower Volcanic series, which consists mainly of volcanic flows and sills, and tuffaceous layers, from 300 to 800 m thick. The andesites outcrop over most of the window with the other rocks occurring more sparsely to the north.
Various evidence of the intrusion of a large monzonitic body into the pre-existing rock outcrop in different areas of the window exists in the form of dykes and small stocks, which appear to be linked to the origin of the Avino vein mineralization. Other, post-mineral, andesitic and rhyolitic dykes outcrop in various areas, causing minor structural displacements; a number of thin basalt sills found in various parts of the window, demonstrate recent volcanism.”

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Additional geological work is summarized from Paulter (2006). Regionally, 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, grading 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 (a favourable host rock) within the caldera. This sequence is overlain by rhyolite to trachytes with extensive ignimbrites forming the upper volcanic sequence and intruded by monzonite bodies. The basal andesite 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 rhyolite 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 rhyolite dyke with similar continuity across the property. The two structures may occupy deep crustal faults that controlled volcanism and mineralization, with the rhyolite 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.
Silver- and gold-bearing veins cross-cut 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, as a result of contact with atmospheric waters. The oxide tailings material is primarily from this source, whereas the sulphide tailings are predominantly from material sourced at depth from the underground workings. In Mexico, these types of deposits can have large lateral extents, but can be limited in their vertical content of grades.
The valuable minerals found during the period of mining of the oxide zone were reported to be argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver, gold and native copper. The gangue minerals 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.
1.3.1 AVINO VEIN
The Avino vein was the primary deposit mined during the 27 years of open pit and underground production prior to 2001. It is 1.6 km long and 60 m wide on the surface. To date, the deepest level mined was at the 2,070 m level (330 m below surface). There is no current mineral resource estimate for the Avino vein.

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1.3.2 SAN GONZALO VEIN
The San Gonzalo vein system 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. It is characterized by banded textures and open-space filling and has an average width of 2 m. The silica-pyrite or iron oxide-sericite alteration with additional stockworking extends across 300 m, south of the main San Gonzalo vein. The vein was mined historically and underground workings extend over an area approximately 150 m along strike and 136 m in depth. The age of tailings associated with the vein are unclear.
There is no current mineral resource or mineral reserve estimate for the San Gonzalo vein portion of the Property.
A mineral resource was estimated on the San Gonzalo vein, and disclosed in Gunning (2009). This is the most recent estimate completed on the vein, but there has been subsequent development of a ramp, bulk sampling, some mining production, channel sampling, and additional delineation drilling along the vein. Together, these developments are likely to have effected a material change in the 2009 resource. Tetra Tech is of the opinion that the 2009 resource can no longer be considered current.
1.3.3 OXIDE AND SULPHIDE TAILINGS
The tailings are situated approximately 500 m west-southwest of the main shaft to the old underground workings. The oxide tailings (at the bottom of the pile) are primarily derived from weathered and oxidized rocks close to the surface on the Property, whereas the sulphide tailings (at the top of the pile) are predominantly derived from material sourced at depth from the underground workings. At this time, it is not clear what the real nature of the chemical difference between the two is, but they are distinctly different in colour. The sulphide tailings, in the absence of any definitive sampling data penetrating the depth of the pile, are an exploration target at best.
1.4 O XIDE T AILINGS R ESOURCE E STIMATE
Previous resource estimates are disclosed in Slim (2005d) and are superseded by the current estimate.
A mineral resource was estimated for the oxide tailings using ordinary kriging (OK) interpolation and uncapped grades. The assay values for this estimate are based on 28 drillholes which were completed on the tailings by CMMA in 1990, and include 407.75 m of drilling and 383 assays of both gold and silver. A specific gravity (SG) of 1.605 was used based on the global average for the oxide tailings reported by Slim (2005d).

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The oxide tailings are estimated to contain a 2.34 Mt Inferred Resource at a grade of 91.3 g/t silver and 0.54 g/t gold, at a 50 g/t silver cut-off.
The entire resource is classified as an Inferred Mineral Resource based on the historical nature of the drilling (prior to institution of NI 43-101 and associated quality assurance/quality control (QA/QC) requirements). The identified grade pattern is similar in character to other tailings deposits, such as overall homogeneity and a pronounced horizontal continuity. Verification samples collected by Tetra Tech confirm the presence of gold and silver mineralization at grades similar to those obtained in the original tailings drilling campaign and confirm that the Mine lab assays are not materially different from those of external labs. In Tetra Tech’s opinion, the oxide tailings sampling data are considered sufficient to support the purpose of this technical report and a current Inferred Mineral Resource.
1.5 M INERAL P ROCESSING, M ETALLURGICAL T ESTINGAND R ECOVERY M ETHODS
Tetra Tech used the estimated grade values and test work results as reported by MineStart Management Inc. (MMI) and Process Research Associates Ltd. (PRA), who conducted the metallurgical tests.
Tetra Tech investigated gravity separation, flotation, cyanide leach, carbon-in-pulp, and heap leach processing options. Using the recoveries and process conditions resulting from these tests, the capital costs to construct a processing plant using selected process options were developed while the operating costs associated with each option were determined and a financial model compiled. A heap leach operation indicated the best financial alternative.
1.6 M INING M ETHODS
This tailings mineral resource will be mined through surface methods and without blasting. A truck/front-end loader arrangement has been selected and will operate one 8 h shift per day, 365 d/a for the 4.7-year life of this Project.
Initially the oxide tailings will be processed without having to move the sulphide tailings, which covers a portion of the oxide tailings. Not all of the sulphide tailings need to be removed to gain access to the oxide tailings. Approximately 0.5 Mt/a of oxide tailings will be sent to the heap leach pad.

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1.7 E NVIRONMENTAL
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 waste water 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.
1.8 C APITAL AND O PERATING C OSTS
The capital cost estimate (CAPEX) for the Project has been developed based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings. A total cost of US$29.1 million, including contingency, was estimated as the CAPEX for the Project (Table 1.2)
Table 1.2 CAPEX Summary

Item/Description | Cost (US$)
Direct Costs |
Mining, Agglomeration, and Pad Loading | 3,293,320
Process Facilities | 3,905,528
Reagents/Auxiliary Services | 501,750
Buildings | 932,763
Leach Pad and Infrastructure | 7,414,974
Power Supply and Distribution | 1,457,296
Total Direct Costs | 17,505,632
Indirect Costs |
Engineering, Procurement, Construction Management, | 2,658,728
Quality Assurance and Vendor Representatives |
Freight and Construction Indirects | 3,146,235
Contingency | 5,828,000
Total Indirect Costs | 11,632,964
Total CAPEX | 29,138,596

Table 1.3 gives the overall estimated cost summary for the processing facility and the general and administrative (G&A) costs based on 1,370 t/d, with an availability of 90% and 365 operating days per year.

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The annual operating cost estimate (OPEX) for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at a processing rate of 1,370 t/d. An incremental increase in the G&A OPEX is estimated to be US$752,656, or US$1.51/t of tailings treated.
Table 1.3 OPEX Summary

Description | Personnel | Annual Cost (US$) | Unit Cost (US$/t Treated)
Process Manpower |  |  |
Maintenance Labour | 7 | 175,104 | 0.35
Operations Labour | 35 | 545,832 | 1.09
Laboratory | 7 | 139,536 | 0.28
Subtotal | 49 | 860,472 | 1.72
Process Supplies |  |  |
Operating Supplies | - | 4,582,421 | 9.16
Maintenance Supplies | - | 450,000 | 0.90
Power Supply | - | 479,947 | 0.96
Subtotal | - | 5,512,368 | 11.02
Total Process OPEX | 49 | 6,372,840 | 12.74
G&A Costs |  |  |
G&A Staff | 11 | 262,656 | 0.53
G&A Expenses | - | 490,000 | 0.98
Total G&A OPEX | 11 | 752,656 | 1.51
Total OPEX | 60 | 7,125,496 | 14.25

1.9 E CONOMIC A NALYSIS
Tetra Tech prepared an economic evaluation of the Project based on a pre-tax financial model.
The pre-tax financial results are:

● | 54.5% internal rate of return (IRR)

● | 1.6-year payback

● | US$38.6 million net present value (NPV) at an 8% discount rate.

A preliminary economic assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The preliminary economic assessment 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 preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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1.10 R ECOMMENDATIONS
Tetra Tech’s recommendations are described below.
1.10.1 RESOURCE ESTIMATE
For the confidence in the Inferred Mineral Resource of oxide tailings to be improved, a drilling campaign should be carried out with suitable equipment (sonic drilling is recommended to recover unconsolidated material with variable moisture content). At the same time, the overlying deposit of sulphide tailings should be drilled. To achieve a nominal drill collar spacing of 50 m x 50 m, 90 holes with an average length of 20 m would be required for a total of 1,800 m of drilling. An estimated cost for this drilling is $500,000.
Resource estimates for the ET Zone of the Avino vein, the San Gonzalo vein, the open pit, and the sulphide tailings should be completed for mine planning purposes, in addition to an updated oxide tailings resource estimate following the drilling program recommended above. Drilling has been carried out during the last two years and the drillhole database should be consolidated and mining depletions updated before the estimation is performed. An estimates cost for completion of these resource estimates and the associated technical report is $170,000.
1.10.2 PROCESS
Based on the conclusions within the components of this technical report, it is recommended that the following tasks could be executed for verifying the material within the tailings:

● | drill the surface of both tailings dam areas to determine the volumes and bulk density of each of the oxide and sulphide tailings material

● | take sufficient amounts of samples from both oxide and sulphide tailings to obtain representative samples for assay and metallurgical test work to confirm the grade of the deposit and the recovery of silver and gold from the heap leach process

● | use the metallurgical results from the test work program to confirm/define the duration of leaching on the pad, the reagent consumption values and the silver and gold precipitation efficiencies

● | use the metallurgical results from the metallurgical test work program to develop a heap leach flowsheet

● | based on accurate assay and reproducible metallurgical test work data, prepare an economic analysis for the retreatment of the oxide tailings dam material, the sulphide tailings dam material, and for the treatment of both oxide and sulphide tailings material

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1.10.3 ENVIRONMENTAL
The cost of permitting has not been considered at this stage of the 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 which 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 Project.
There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings may be required prior to use depending on the water quality.

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2.0 INTRODUCTION

Avino is a Canadian-based mining and exploration company listed on the TSXV and NYSE as ASM. It 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.
The Property, located near Durango, Mexico, is Avino’s principal asset, and is the subject of this preliminary economic assessment which includes a current resource estimate on the oxide tailings. Avino holds a 96.5996% interest in the Property, through its subsidiary company CMMA. Avino commenced development, including drilling and bulk sampling, on the San Gonzalo vein in 2010 and this exploration is ongoing. This exploration 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 2005), as well as an apparently un-documented amount of lead.
2.1 TERMS OF REFERENCES AND PURPOSE OF REPORT
Tetra Tech has been retained by Avino to produce a technical report on the Property, including a resource estimate and preliminary economic assessment on the oxide tailings. This report has been prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects, Companion Policy 43-101CP, and Form 43-101F.
The Qualified Persons (QPs) responsible for this report are listed in Table 2.1. The following QPs completed a site visit of the Property:

• | Hassan Ghaffari, P.Eng. on March 30, 2011 for one day.

• | Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM on June 7, 2012 for two days.

Table 2.1 Summary of QPs

Report Section | Company | QP
1.0 | Summary | Tetra Tech | Sign-off by Section
2.0 | Introduction | Tetra Tech | Hassan Ghaffari, P.Eng.
3.0 | Reliance on Other Experts | Tetra Tech | Hassan Ghaffari, P.Eng.
4.0 | Property Description and Location | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
table continues....

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Report Section | Company | QP
5.0 | Accessibility, Climate, Local Resources, Infrastructure, and Physiography | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
6.0 | History | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
7.0 | Geological Setting and Mineralization | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
8.0 | Deposit Types | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
9.0 | Exploration | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
10.0 | Drilling | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
11.0 | Sample Preparation, Analyses and Security | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
12.0 | Data Verification | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
13.0 | Mineral Processing and Metallurgical Testing | Tetra Tech | Hassan Ghaffari, P.Eng.
14.0 | Mineral Resource Estimate | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
15.0 | Mineral Reserve Estimate | Tetra Tech | Jacques Ouellet, P.Eng., Ph.D.
16.0 | Mining Methods | Tetra Tech | Jacques Ouellet, P.Eng., Ph.D.
17.0 | Recovery Methods | Tetra Tech | Hassan Ghaffari, P.Eng.
18.0 | Project Infrastructure | Tetra Tech | Harvey Wayne Stoyko, P.Eng.
19.0 | Market Studies and Contracts | Tetra Tech | Hassan Ghaffari, P.Eng.
20.0 | Environmental Studies, Permitting, and Social or Community Impact | Tetra Tech | Monica Danon-Schaffer, Ph.D., P.Eng.
21.0 | Capital and Operating Costs | Tetra Tech | Harvey Wayne Stoyko, P.Eng. Hassan Ghaffari, P.Eng.
22.0 | Economic Analysis | Tetra Tech | Sabry Abdel Hafez, Ph.D., P.Eng.
23.0 | Adjacent Properties | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM
24.0 | Other Relevant Data | Tetra Tech | Hassan Ghaffari, P.Eng.
25.0 | Interpretations and Conclusions | Tetra Tech | Sign-off by Section
26.0 | Recommendations | Tetra Tech | Sign-off by Section
27.0 | References | Tetra Tech | Michael F. O’Brien, M.Sc., Pr.Sci.Nat, FGSSA, FAusIMM, FSAIMM Hassan Ghaffari, P.Eng.
28.0 | Certificates of Qualified Persons | Tetra Tech | All QPs

2.1.1 UNITS OF MEASUREM EN T
All units of measurement used in this technical report and resource estimate are in metric, and currency is expressed in US dollars, unless otherwise stated.

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2. 2 EFFECTIVE DATES
The effective date of this report is July 18, 2012.
2. 3 INFORMATION AND DATA SOURCES
In preparation of this 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, .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 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. Effective date 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.

| • | Huang, J. and Tan, G. 2005. Metallurgical Test Work on Avino Tailings, Durango, Mexico. Report to Brian Slim, MineStart Management Inc. Prepared by Process Research Associates Ltd. March 28, 2005.

A complete list of references is provided in Section 27.0.

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3.0 RELIANCE ON OTHER EXPERTS

In preparation of this report, Tetra Tech has relied upon others for information, and disclaims responsibility for information derived from reports pertaining to mineral tenure, property ownership, surface rights, environment, royalties, and social issues. The majority of the information has been sourced from data provided by Avino, Avino internal reports, Slim (2005d), and Gunning (2009). The majority of the information was provided in English, but some information was written in Spanish and subsequently translated into English. Neither Tetra Tech nor the authors are qualified to provide extensive comment on legal issues, including mineral tenure status associated with the Project, and ownership is provided for general purposes only.
Avino has provided a description of the Property, which is disclosed in Section 4.0. A current title opinion dated April 4, 2012, has been prepared by Juan Manuel González Olguin of the Mexican law firm Bufete González Olguin SC. Based on the review of legal opinion, issued title certificates and the unhindered residence on the Property, Tetra Tech has verified that Avino owns the concessions through its Mexican subsidiary company, CMMA, and that there is no indication of any encumbrances at the site. Furthermore, the legal document prepared by Jesús Bermúdez Fernández, dated February 18, 2012, delineating the terms of the agreement on the La Platosa concession has been sourced for information. Tetra Tech has not conducted any further examinations of the mineral concessions for the Project.
Tetra Tech has reviewed and analyzed data and reports provided by Avino, together with publicly available information, drawing its own conclusions augmented by direct field examination. Information from third party sources is quoted or referenced throughout this technical report and is fully disclosed in Section 27.0. Tetra Tech used information from these sources under the assumption that the contents are accurate.

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4.0 PROPERTY DESCRIPTION AND LOCATION

The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha.
4.1 LOCATION
The Property is located:

· | in Durango State in North Central Mexico

· | in the Sierra Madre Silver Belt

· | 82 km northeast of Durango City

· | within the municipality of Panuco de Coronado between the towns of Panuco de Coronado and San José de Avino

· | on the eastern edge of the Sierra Madre Occidental mountain range

· | at latitude N 24° 53', longitude W 104° 31'

· | at approximately 14 km northwest of Highway 40D.

The Property is situated as illustrated in Figure 4.1 and Figure 4.2.
4.2 1968 – 2001 O WNERSHIP – A VINO M INES AND R ESOURCES L TD.
In 1968, Avino Mines and Resources Ltd. acquired a 49% interest in 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 exploration activities included surface and underground sampling and diamond drilling (VSE 1979).
In early 1970, the company signed a letter of intent with Denison Mines Ltd. for the future development of the Avino Mine. However, the agreement was never signed.
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).

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In October 1973, Avino Mines and Resources Ltd. signed a new agreement with S.G.L. Ltd. and Sheridan Geophysics Ltd. Under the terms of the agreement, S.G.L. Ltd. was to provide up to $500,000 plus the management to erect a production plant. The agreement provided for the return of the capital from first cash flow, plus a management fee and interest payment together with an option to convert a portion of the advanced funds to common shares. The agreement with S.G.L. Ltd. was terminated in mid-1976.

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4.3 M INERAL C ONCESSIONS AND A GREEMENTS
The current Property is comprised of 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.

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Table 4.1 Summary of Property Ownership

Company | Relationship to Avino Silver and Gold Mines Ltd. | Effective Ownership of Avino Mine Property (%)
CMMA | Subsidiary | 96.60
Promotora Avino, S.A. de C.V. | Subsidiary | 2.68
Total Effective Ownership of Avino Mine Property | - | 99.28
Estate of Ysita | Non-controlling interest | 0.72
Total | - | 100.00

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Table 4.2 Mineral Concessions – Avino Property

Concession | Concession |  | Hectares | Date | Expiration | Cost | Payment
Name | No. | Location | (ha) | Acquired | Date | (US$/ha) | (US$)
Ampliacion San Gonzalo | 191837 | Panuco | 5.850 | 19/12/1991 | 18/12/2041 | 124.74 | 729.67
Ampliacion La Malinche | 204177 | Panuco | 6.010 | 18/12/1996 | 17/12/2046 | 124.74 | 749.72
El Potrerito | 185328 | Panuco | 9.000 | 14/12/1989 | 13/12/2039 | 124.74 | 1,122.66
La Malinche | 203256 | Panuco | 9.000 | 28/06/1996 | 27/06/2046 | 124.74 | 1,122.66
San Gonzalo | 190748 | Panuco | 12.000 | 29/04/1991 | 28/04/2041 | 124.74 | 1,496.88
Yolanda | 191083 | Panuco | 43.458 | 29/04/1991 | 28/04/2041 | 124.74 | 5,420.91
Agrupamiento (San Jose) | 164985 | Panuco | 8.000 | 13/08/1979 | 12/8/2029 | 124.74 | 997.92
Agrupamiento San Jose (El Trompo) | 184397 | Panuco | 81.547 | 13/10/1989 | 12/10/2039 | 124.74 | 10,172.12
Agrupamiento San Jose (Gran Lucero) | 189477 | Panuco | 161.468 | 5/12/1990 | 4/12/2040 | 124.74 | 20,141.57
Agrupameinto San Jose (Purisma Chica) | 155597 | Panuco | 136.708 | 30/09/1971 | 29/09/2021 | 124.74 | 17,052.91
Agrupamiento San Jose (San Carlos) | 117411 | Panuco | 4.451 | 5/2/1961 | 16/12/2061 | 124.74 | 555.16
Agrupamiento San Jose (San Pedro Y San Pablo) | 139615 | Panuco | 12.000 | 22/06/1959 | 21/06/2061 | 124.74 | 1,496.88
Aguila Mexicana | 215733 | Panuco | 36.768 | 12/3/2004 | 29/06/2044 | 70.88 | 2,606.12
Avino Grande Ix | 216005 | Panuco | 19.558 | 2/4/2002 | 1/4/2052 | 70.88 | 1,386.24
Avino Grande Viii | 215224 | Panuco | 22.882 | 14/02/2002 | 13/02/2052 | 70.88 | 1,621.85
El Caracol | 215732 | Panuco | 102.382 | 12/3/2002 | 28/04/2044 | 70.88 | 7,256.84
Fernando | 205401 | Panuco | 72.129 | 29/08/1997 | 28/08/2047 | 124.74 | 8,997.33
La Estela | 179658 | Panuco | 14.000 | 11/12/1986 | 12/12/2036 | 124.74 | 1,746.36
Los Angeles | 154410 | Panuco | 23.713 | 25/03/1971 | 24/03/2021 | 124.74 | 2,957.96
Negro Jose | 218252 | Panuco | 58.000 | 17/10/2002 | 16/10/2052 | 70.88 | 4,111.04
San Martin De Porres | 222909 | Panuco | 30.000 | 15/09/2004 | 14/09/2054 | 70.88 | 2,126.40
Santa Ana | 195678 | Panuco | 136.182 | 14/09/1992 | 13/09/2042 | 124.74 | 16,987.38
Total | - | - | 1,005.104 | - | - | - | -

Note: Concession “La Platosa” is not included because it is not held by Avino.

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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 must pay to Minerales the sum of US$250,000, by the issuance of common shares of Avino. Avino will have a period of 24 months for the development of mining facilities.
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

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● | 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 Jose de Avino, for the temporary occupation and surface rights of the concessions.

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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 A CCESSIBILITY
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 (Gunning 2009).
5.2 CLI MATE AND PHYSIOGRAPH Y
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, frost can occur.
Vegetation is sparse and consists of shrubs and grasses typical of the high desert. 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. Exploration, development, and mining activities may take place throughout the year.
5.3 LOCAL RESOURCES AND INFRASTRUCTUR E
The history of operations at the Avino Mine provides ample evidence of the sufficiency of infrastructure and services in the area. Durango is a major mining center in Mexico where experienced labour and services can be obtained. Additionally, the two local towns of Panuco de Coronado and San Jose de Avino are where the majority of the employees lived while working at the mine when it was in operation.

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The Property is connected to the local power grid, with a line capacity quoted at 4 MW. While water supply was found to be limiting in the past, Avino has taken the necessary steps to secure an adequate supply. To supplement the 1 Mm 3 dam built by Avino in 1989, a well 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 nearby government dam 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 Panuco 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 the percent sharing applies. Mine site water use was from a combination of underground mine drainage, recirculation from the tailings, and wells and dam with preference given to the mine site sources for which no water conservation charge was applicable. If not drawn for several days, the underground mine water needs to be treated for elevated acidity (Slim 2005d).
Since operations were halted in 2001, the plant has remained in a state of temporary closure under care and maintenance. Prior to 2001, the mill was configured to operate at 1,000 t/d. To accommodate material from the high-grade San Gonzalo Zone, an existing 250 t/d circuit was re-conditioned along with extensive upgrading and repairs throughout the rest of the mill. In the second half of 2010, Avino tested the newly refurbished mill by processing stockpiled material left behind from previous mining of the ET Zone. Milling of the copper-rich material was followed by more test milling using development material from San Gonzalo itself leading up to the bulk sample.

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6.0 HISTORY

6.1 AVINO MINE , 1555 - 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 continued through to the early 1900s.
In 1880, the mines were taken over by Avino Mines Ltd., a company controlled by American and English interests. With aid of new industrial technology the Avino mine developed into a more efficient mining operation. By 1908, 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; Bannon 1970; VSE 1977; Slim 2005d).
During the outbreak of the Mexican Revolution (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 very small scale (Avino Annual Report 1980). Historical production from the Avino Mine during this period is not known..
6.2 S AN G ONZALO D EPOSIT
Shallow workings from an old mine are present in the San Gonzalo vein. The history of the San Gonzalo deposit is not well known. The workings consist of small underground workings which were originally accessed by a five-level vertical shaft. These workings were sampled by M. Evans in 1954. The workings are not currently accessible and no attempts have been made to duplicate the results of the 1954 sampling. The limits of past workings have been taken from old maps but are assumed to be reasonably accurate (Gunning 2009).

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7.0 GEOLOGICAL SETTING AND MINERALIZATION

7.1 REGIONAL GEOLOGY
The regional geology of the Property is quoted from Slim (2005d).
“The Avino mine lies in the Sierra de Gamon, on the east flank of the geological province of the Sierra Madre Occidental. The area represents a geological window, with outcrops of andesite, rhyolites and trachytes of the Lower Volcanic series, which consists mainly of volcanic flows and sills, and tuffaceous layers, from 300 to 800 m thick. The andesites outcrop over most of the window with the other rocks occurring more sparsely to the north.
Various evidence of the intrusion of a large monzonitic body into the pre-existing rock outcrop in different areas of the window exists in the form of dykes and small stocks, which appear to be linked to the origin of the Avino vein mineralization. Other, post- mineral, andesitic and rhyolitic dykes outcrop in various areas, causing minor structural displacements; a number of thin basalt sills found in various parts of the window, demonstrate recent volcanism.
Higher areas of the Sierra Madre, which surround the zone, are composed of rhyolites and ignimbrites of the Upper Volcanic Series, with thicknesses approaching 1,500 m.
The Avino district has been affected by a number of tectonic events, some possibly related to the Laramide Revolution, while others appear to be associated with subsequent events, both extrusive and intrusive, causing the formation of various systems of pre-mineral faulting. These fault systems usually displace the pre- existing rocks normally, and generally strike NW-SE. Additional tensional forces
produced other normal fault systems, striking NE-SW, and dipping towards the south.
Faulting subsequent to mineralization has produced displacements of the various window blocks, leading to the present rough topography. One of the most significant regional features of the district is the Avino Fault which strikes NW 20° SE and dips SE and appears to cut off the mineralization, and places in contact the Upper and Lower Volcanic series within the geological window.”

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7.2 P ROPERTY G EOLOGY AND M INERALIZATION
The Property geology is summarized from Paulter (2006).
Regionally, 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, grading 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 (a favourable host rock) within the caldera. This sequence is overlain by rhyolite to trachytes with extensive ignimbrites forming the upper volcanic sequence and intruded by monzonite bodies. The basal andesite 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 Guadalope, Santiago, San Jorge, the San Gonzalo Trend, Malinche, Porterito and Yolanda areas. A northerly trending rhyolite 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 rhyolite dyke with similar continuity across the Property. The two structures may occupy deep crustal faults that controlled volcanism and mineralization, with the rhyolite 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.
Silver- and gold-bearing veins cross-cut the various lithologies and are generally oriented north northwest-south southeast and northwest-southeast (Figure 7.1 and Figure 7.2). The rocks have been weathered and leached in the upper sections, as a result of contact with atmospheric waters. The oxide tailings material is primarily from this source, whereas the sulphide tailings are predominantly from material sourced at depth from the underground workings. In Mexico, these types of deposits can have large lateral extents, but can be limited in their vertical content 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.

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Source: Modified after Gunning (2009)

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Source: Modified after Gunning (2009)

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7.2.1 AVINO VEIN
The Avino vein is 1.6 km long and 60 m wide on the surface. To date, the deepest level accessed was at the 2,070 m level (330 m below surface).
Geology and mineralization of the Avino vein are summarized from Slim (2005d).
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 band the common minerals encountered are hematite, limonite, anglesite and copper carbonate in white or green, somewhat chloritized, quartz zones. The common primary and secondary minerals encountered are argentite, bromyrite, 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, which appear to be found at or near the surface, are reported to decrease generally with depth, except at vein intersections, where higher values are more persistent. 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, while higher copper values also coincide with the vein intersections, they may increase with depth.
The Avino vein has been followed longitudinally for more than 1,300 m and 600 m vertically; it strikes east-west and north 66° east, dipping to the south and southeast 60 to 70°. Steeply dipping, acicular 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 assumed to persist with depth. The hanging wall of the Avino vein is andesite, while the footwall is a monzonite intrusive with andesite sections. A post-mineral 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 virtually at the contact with the vein, remaining in this position for a length 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 to the face exposed 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 to 100 m.

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At Chirumbo, the fault virtually replaces the vein due to strong washing away and leaching resulting from the action of circulating water on 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 criss-crosses from side to side.
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 southward at 60 to 70°, this includes the Avino Vein, the most important regional structure, including 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°, either 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: Santiago, Retana, Nuestra Senora, and San Pedro and San Pablo veins

Alteration has been reported in three forms. The Propylitic form is the most common in the andesites to which it imparts a greenish tint to the andesite whereas the Argillaceous appears mainly in the upper parts of the veins and manifests itself as a whitening of the country rock from the alunite and montmorillonite whitish clays. Silicification, chloritization, and pyritization alterations are seen in the hanging wall and footwall, being more prominent closer to the vein.
7.2.2 SAN GONZALO VEIN
The San Gonzalo vein system constitutes a strongly developed vein system over 25 m across, 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 vein appears to be related to the Los Angeles vein and the two are separated by a suspect offset fault (Figure 7.1 and Figure 7.2). 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).

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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):

● | 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 rhyolite dyke at Avino.

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Note: brown = Phase 2 (sulphide), blue = Phase 1.2 (oxide), yellow = Phase 1.1 (oxide)

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Technical Report on the Avino Property |  |

Note: brown = Phase 2 (sulphide), blue = Phase 1.2 (oxide), yellow = Phase 1.1 (oxide)

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8.0 DEPOSIT TYPES

Regionally, the Property is situated within a 12 km x 8.5 km caldera, which hosts numerous low- to intermediate-sulphidation silver-gold epithermal veins, breccias, stockwork and silicified zones, grading into a “near porphyry” environment, particularly in the Avino Mine area.
The historic mining on the Property was on the Avino vein, a silver-gold-copper rich epithermal vein. The San Gonzalo vein, however, does not contain appreciable amounts of copper and is more equivalent to the other silver ±lead zinc deposits of the Sierra Madres.
Low sulphide contents, quartz-adularia-sericite alteration mineralogy, and a lack of extensive wall-rock alteration commonly characterize the low-sulphidation vein systems. High-sulphidation vein systems, conversely, 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 at one 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 which exploit multiple veins over limited vertical horizons which 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.

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9.0 EXPLORATION

All known exploration work conducted by Avino since the Property was acquired in 1968, which is considered to be material, is summarized in this section. Work conducted prior to 2005 is summarized from Slim (2005d).
9.1 E ARLY E XPLORATION (P RIOR TO M INE C LOSURE), 1968 - 2001
Exploration on the Property has been ongoing since before production commenced in 1976, and the majority of the work focused on the main Avino vein and surrounding area. The following is a summary from Slim (2005d) which outlines the significant exploration work conducted either by Avino, or on behalf of Avino, until the mine closed in 2001.
Pre-production exploration carried out by CMMA and others, covered 2,500 m of drifting and cross-cuts, as well as 8,000 m of surface and underground diamond drilling. Included was extensive rehabilitation including connecting three of the old— possibly pre-1900—underground mine workings for which Selco was involved.
In 1970, a contract was signed with Selco, who spent more than $US1 million in exploration and feasibility studies 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 monthly reports seen 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 programme 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 programme which was contoured and coloured for gold, silver, copper, lead, znc, arsenic, antimony and mercury.

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Other notable observations from the study include the following;

· | All mineralization, with the exception of the Nuestra Senora and Potosina/El Fuerte area radiate outwards in a west to north-west direction from the Cerro San Jose. The latter being a silicified and, in part, a hornsfelsed body of volcanic rock probably overlying an intrusive stock, which could have been the source of most of the Property mineralization.

· | Mineralization in all radiating structures is described as being strongest 2 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 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, El Trompo (La Gloria/Hundido) and Chirumbo areas—which rake to the west and are open at depth. While silver values decrease with depth, gold appears to increase.

· | 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 a true thicknesses from 0.1 to 2.3 m up to a high of 755 g/t silver with a corresponding 1.5 g/t gold over 0.45 m.
No systematic sampling, trenching or drilling on either the outcrops or the veins are known to have occurred during the program undertaken in 1993.
9.2 RECENT EXPLORATION (P OST M INE CLOSURE ), 2001-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 and Gold Mines Ltd. Technical Report on the Avino Property | 9-2 |

9.2.1 TAILI N G S INVESTIGATIO N S (OXI D E S), 2003 A N D 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 2004 sample composites assays are given in Table 9.1 and sample locations are illustrated in Figure 9.1, relative to the drill fences of the 1990/1991 drillholes.
Table 9.1 2004 Sample Composites Assays

Area | Composite No. | Ag (ppm) Multi/ICP | Au (g/t) FA/AA
Lower Bench | 1 | 82.03 | 0.34
3 | 99.80 | 0.33
5 | 134.08 | 0.53
6 | 122.18 | 0.28
7 | 103.88 | 0.31
8 | 96.75 | 0.36
9 | 105.28 | 0.33
10 | 87.73 | 0.26
Middle Bench | 1 | 83.40 | 0.48
2 | 105.33 | 0.59
3 | 78.83 | 0.42
4 | 103.05 | 0.59
5 | 72.55 | 0.40
6 | 77.70 | 0.61

Note: ICP – inductively coupled plasma
FA – fire assay
AA – atomic absorption

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-3 |

Source: Slim (2005d)
The following information regarding the 2004 sampling is summarized from Slim (2005d).
The 2004 tailings field-work was under the direction of MineStart, for the issuer. Excavation of the sample pits was under contract to Desarrollos Rod Construcciones a major Mexican company in civil and environmental engineering and construction. The company is based in the city of Durango. There are no known links of this company with CMMA. Local casual labour were hired as needed.
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. In deciding on test pitting, the costs, timing and sample size were important. Back hoes were available locally and could be mobilized within a few days whereas drills would have to be brought in from up to 500 km away and for minimum contracts in excess of the needs and with availability waits of then eight or more weeks. Back-hoe sampling was chosen as the most suitable and expedient.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-4 |

The subsequent 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 cannot be considered to constitute a representative random sampling of the oxide tailings for the following reasons:

· | The positions of the sampling pits and trenches were not surveyed definitively, unlike the drillhole collars from the 1990 campaign and the sketch of the positions of the 2004.

· | Full sections through the tailings were not obtained and access was limited to the eastern portion of the oxide tailings, thus the sampling is vertically and laterally biased to represent only the topmost 4 m of the oxide tailings and the easternmost area.

The trench sampling material (Z-series) from the 1993 campaign is also likely to be non-representative as samples were taken in the surficial zone in the vicinity of the middle bench wall of the tailings heap, where cycloning of the material to aid the construction of the wall will have produced a significantly coarser material than in the rest of the tailings deposit. Furthermore, these trench samplings also do not cover the full thickness of the upper (second) phase of the oxide tailings, so they cannot be considered fully representative of material, even on a local scale.
Consequently, it was decided to use only the drillhole assay data (excluding the Z- series trenches) from the 1990 campaign for the oxide tailings resource estimate (Section 14.2) as it represents unbiased vertical profiles through the oxide tailings and has positional control.
9.2.2 TAILI N G S SAMPLI N G (SU L P H I D E S), 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 to 100.0 g/t and 0.3 to 0.6 g/t, respectively.
9.2.3 UND E R G R O U N D CH A NNE L SAMPLIN G O F SA N GONZAL O V EI N, 2010
Avino conducted channel sampling across the San Gonzalo vein and select results are shown in Table 9.2. These channels were collected to provide guidance for the subsequent bulk sample program.
Table 9.2 Select Assay Results from Underground Channel Sampling of San Gonzalo Vein

Length Along Vein (m) | Width (m) | Au (g/t) | Ag (g/t) | Pb (ppm) | Zn (ppm) | Cu (ppm)
21.04 | 2.83 | 1.146 | 394 | 3,580 | 3,112 | 502
27.24 | 2.41 | 1.231 | 342 | 4,999 | 2,202 | 442
11.37 | 1.61 | 1.752 | 532 | 9,651 | 1,1438 | 1,605

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-5 |

9.2.4 BUL K SAMPL E PRO G R A M O F SA N GONZAL O VEI N , 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. Results are summarized in Table 9.3.
Table 9.3 San Gonzalo Bulk Sample

| Weight (t) | Assay (g/t) | Contents (kg) | Contents (oz) | Recovery (%)
Au | Ag | Au | Ag | Au | Ag | Au | Ag
Feed | 10,519* | 0.9 | 261 | 9.35 | 2,746.75 | 300.9 | 88,311.70 | 100 | 100
Concentrate | 232 | 23.8* | 8,998* | 5.52 | 2,087.53 | 177.5 | 67,116.90 | 59 | 76
Tail | 10,287 | 0.4 | 64 | 3.83 | 659.22 | 123.4 | 21,194.80 | 41 | 24

Note: | *These figures have been reconciled to the weighed feed tonnage and the final concentrate assays. They also have been rounded for clarity.

Underground channel sampling is currently being conducted on the San Gonzalo vein. Results are shown in Table 9.4 (results current to May 14, 2012).

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-6 |

Table 9.4 Assay Results from Underground Channel Sampling of San Gonzalo Vein

Area | Strike Length (m) | Vein Average Width (m) | Individual Sample Length (m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Cu (%)
North West of Cross Cut | 4.33 | 2.70 | - | 0.95 | 289.00 | 0.08 | 0.23 | 0.02
Including: L-60W | 1.40 | 0.99 | 411.30 | 0.10 | 0.27 | 0.03
L-62W | 0.55 | 1.23 | 451.40 | 0.10 | 0.27 | 0.04
0.65 | 0.68 | 305.30 | 0.06 | 0.44 | 0.05
0.80 | 0.96 | 225.30 | 0.03 | 0.22 | 0.01
0.35 | 0.70 | 382.30 | 0. 05 | 0.38 | 0.02
13.28 | 2.77 | - | 0.70 | 146.00 | 0.34 | 0.40 | 0.03
Including: L-51W | 0.50 | 1.28 | 319.90 | 3.82 | 3.63 | 0.15
L-54W | 1.00 | 2.62 | 528.70 | 0.20 | 0.26 | 0.04
L-55W | 1.20 | 1.68 | 607.50 | 0.32 | 0.60 | 0.04
L-57W | 1.20 | 2.46 | 246.00 | 0.05 | 0.19 | 0.02
L-58W | 1.25 | 0.80 | 359.90 | 0.15 | 0.29 | 0.04
7.50 | 1.53 | - | 0.13 | 34.00 | 0.12 | 0.61 | 0.03
9.01 | 2.30 | - | 0.75 | 213.00 | 0.19 | 1.15 | 0.05
Including: L-41W | 0.90 | 1.01 | 225.40 | 0.28 | 3.18 | 0.03
0.65 | 1.35 | 653.20 | 0.38 | 1.54 | 0.05
L-44W | 0.70 | 1.08 | 663.80 | 0.24 | 0.95 | 0.07
L-45W | 0.40 | 1.02 | 749.70 | 0.15 | 0.40 | 0.06
15.33 | 2.02 | - | 0.38 | 42.00 | 0.12 | 0.31 | 0.02
15.68 | 2.20 | - | 0.51 | 126.00 | 0.03 | 0.07 | 0.00
Including: L-20W | 0.55 | 0.70 | 339.90 | 0.16 | 0.03 | 0.06
L-22W | 0.50 | 2.96 | 2684.7 | 0.43 | 0.45 | 0.03
L-24W | 0.50 | 2.51 | 571.40 | 0.25 | 0.53 | 0.05
L-27W | 0.40 | 1.58 | 1377.0 | 0.28 | 1.07 | 0.05
4.81 | 1.73 | - | 0.14 | 51.00 | 0.01 | 0.03 | 0.01
Including: L-16W | 0.50 | 1.32 | 706.00 | 0.23 | 0.34 | 0.07
7.97 | 1.69 | - | 0.45 | 203.00 | 0.24 | 0.32 | 1.47
Including: L-12W | 0.50 | 1.10 | 1025.6 | 0.19 | 0.23 | 0.08
16.99 | 1.23 | - | 0.37 | 58.00 | 0.32 | 0.42 | 1.38
Including: L-6W | 0.30 | 3.07 | 395.30 | 3.30 | 0.52 | 2.14
L-7W | 0.50 | 2.45 | 229.70 | 0.30 | 0.17 | 1.00

table continues….

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-7 |

Area | Strike Length (m) | Vein Average Width (m) | Individual Sample Length (m) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%) | Cu (%)
South East of Cross Cut | 15.08 | 1.60 | - | 0.51 | 90.00 | 0.09 | 0.38 | 0.09
Including: L-6E | 0.90 | 1.59 | 215.00 | 0.06 | 0.21 | 0.02
0.90 | 2.70 | 445.00 | 0.01 | 0.20 | 0.01
19.03 | 2.01 | - | 1.06 | 277.00 | 0.83 | 1.02 | 0.06
Including: L-12E | 0.70 | 1.76 | 4358.8 | 1.83 | 1.54 | 0.13
L-14E | 1.20 | 1.28 | 322.00 | 0.14 | 0.55 | 0.03
0.80 | 3.54 | 460.00 | 0.19 | 0.61 | 0.05
L-17E | 0.40 | 6.04 | 219.00 | 6.02 | 12.27 | 0.31
0.40 | 0.87 | 602.00 | 0.47 | 0.75 | 0.05
L-20E | 0.80 | 1.94 | 689.00 | 0.28 | 0.74 | 0.13
L-21E | 0.50 | 2.91 | 1756.9 | 0.44 | 0.96 | 0.10
L-23E | 0.40 | 3.37 | 2453.8 | 0.48 | 1.06 | 0.12
8.21 | 1.85 | - | 0.21 | 34.00 | 0.25 | 0.68 | 0.01
23.14 | 2.75 | - | 0.92 | 431.00 | 0.28 | 0.66 | 0.03
Including: L-31E | 0.70 | 0.91 | 527.00 | 0.18 | 0.74 | 0.02
L-32E | 0.95 | 2.06 | 1233.0 | 0.22 | 0.69 | 0.04
L-33E | 0.65 | 1.05 | 603.00 | 0.17 | 0.59 | 0.03
0.55 | 2.61 | 2719.3 | 1.26 | 1.59 | 0.13
L-34E | 0.95 | 2.89 | 1635.0 | 0.79 | 1.28 | 0.04
L-38E | 0.60 | 1.56 | 1492.0 | 0.26 | 0.61 | 0.04
L-39E | 0.70 | 0.60 | 303.00 | 0.10 | 0.15 | 0.02
1.10 | 2.29 | 1770.7 | 0.26 | 0.22 | 0.04
L-41E | 1.00 | 1.03 | 589.00 | 0.08 | 0.17 | 0.02
0.20 | 0.37 | 676.00 | 0.18 | 0.41 | 0.03
L-42E | 0.60 | 1.43 | 1402.0 | 0.16 | 0.29 | 0.05
0.80 | 2.11 | 1851.4 | 0.77 | 0.94 | 0.05
0.90 | 2.56 | 1117.0 | 0.38 | 0.21 | 0.04
0.40 | 1.92 | 4894.7 | 1.29 | 0.27 | 0.10
L-43E | 1.10 | 1.35 | 884.00 | 0.15 | 0.37 | 0.03
0.65 | 6.40 | 5348.4 | 2.53 | 1.94 | 0.12
6.00 | 1.96 | - | 0.24 | 72.00 | 0.66 | 0.32 | 0.04
5.79 | 1.77 | - | 0.17 | 44.00 | 0.08 | 0.58 | 0.01

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 9-8 |

10.0 DRILLING

Drilling activities performed by Avino since acquisition of the Property are summarized in this section. Drillholes on the San Gonzalo vein completed prior to 2009 are disclosed by Gunning (2009).
10.1 EARL Y DR I LL I N G (PRI O R T O MI N E CLOSUR E ), 1968-2001
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 was available to Tetra Tech.
10.1.2 OXI D E TAILI N G S, 1990-1991
Between November 10 and December 5, 1990 and March 8 and May 30, 1991, Avino completed 6 trenches and 28 vertical drillholes in the tailings (Table 10.1) along 7 fences at a spacing of roughly 50 m x 50 m (Figure 10.1) (Benitez Sanchez 1991). Drilling was carried out transversely to the drainage pattern of the underlying oxide 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 are provided in Table 10.2. It is this dataset that was used for the resource estimate calculation described in Section 14.2 (excluding the Z-series trenches).
Table 10.1 Summary of 1990/1991 Holes

Hole ID | Easting | Northing | Elevation (m) | Assay Length (m) | Measured Length (m)
A1 | 570205.1 | 2712340 | 2,203.8 | 5.0 | 5.00
A2 | 570184.1 | 2712306 | 2,203.5 | 7.0 | 7.25
A3 | 570192.1 | 2712267 | 2,203.1 | 8.0 | 8.00
A4 | 570167.3 | 2712236 | 2,203.0 | 9.0 | 9.00
A5 | 570175.0 | 2712197 | 2,202.9 | 15.0 | 16.25
A6 | 570152.2 | 2712167 | 2,202.0 | 18.0 | 18.00
A7 | 570158.9 | 2712128 | 2,201.0 | 16.0 | 16.00

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.1 |

Hole ID | Easting | Northing | Elevation (m) | Assay Length (m) | Measured Length (m)
A8 | 570149.5 | 2712094 | 2,200.4 | 8.0 | 8.00
Z1* | 570197.0 | 2712411 | 2,218.3 | 9.0 | 9.50
Z2* | 570176.0 | 2712365 | 2,217.8 | 16.0 | 16.00
Z3* | 570165.0 | 2712317 | 2,216.7 | 13.0 | 13.25
Z4* | 570153.0 | 2712269 | 2,216.7 | 13.0 | 13.50
Z5* | 570142.0 | 2712221 | 2,215.7 | 13.0 | 13.00
Z6* | 570135.0 | 2712175 | 2,214.7 | 14.0 | 14.00
B1 | 570131.9 | 2712365 | 2,217.1 | 10.0 | 10.00
B2 | 570114.1 | 2712318 | 2,216.7 | 19.0 | 19.25
B3 | 570100.9 | 2712268 | 2,216.4 | 26.0 | 26.75
B4 | 570079.2 | 2712207 | 2,216.1 | 23.5 | 23.50
B5 | 570081.9 | 2712140 | 2,214.3 | 18.0 | 18.00
C1 | 570084.7 | 2712383 | 2,217.6 | 8.5 | 8.75
C3 | 570076.5 | 2712354 | 2,217.1 | 15.0 | 15.00
C4 | 570049.0 | 2712250 | 2,216.1 | 24.0 | 24.00
C5 | 570028.4 | 2712164 | 2,216.0 | 14.0 | 14.00
C6 | 570016.6 | 2712117 | 2,216.4 | 10.0 | 10.00
D1 | 570029.3 | 2712373 | 2,217.6 | 13.0 | 13.00
D2 | 570017.6 | 2712329 | 2,216.7 | 19.0 | 19.25
D3 | 570002.6 | 2712273 | 2,217.6 | 19.5 | 19.50
D4 | 569961.5 | 2712167 | 2,215.9 | 6.0 | 6.00
E1 | 569976.8 | 2712369 | 2,216.5 | 13.0 | 13.25
E2 | 569959.7 | 2712311 | 2,216.1 | 18.5 | 18.50
E3 | 569952.3 | 2712267 | 2,215.8 | 12.0 | 12.00
F1 | 569935.8 | 2712401 | 2,216.4 | 18.5 | 18.50
F2 | 569926.1 | 2712364 | 2,216.1 | 16.0 | 16.00
F3 | 569915.4 | 2712324 | 2,215.8 | 15.0 | 15.00

*Trenches completed on the A1-A1’ section line, Figure 10.1.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.2 |

Source: Slim (2005d); note: drillholes mislabeled along C-C’ line and C2-C5 on this map reflect C3-C6 in Table 10.1 and Table 10.2.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.3 |

Table 10.2 Assay Results from 1990/1991 Holes in Oxide Tailings

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
A1 | 0 | 1 | 1 | 103 | 0.2 | A2 | 0 | 1 | 1 | 102 | 0.6
A1 | 1 | 2 | 1 | 95 | 0.75 | A2 | 1 | 2 | 1 | 109 | 0.7
A1 | 2 | 3 | 1 | 98 | 0.8 | A2 | 2 | 3 | 1 | 104 | 0.8
A1 | 3 | 4 | 1 | 100 | 0.8 | A2 | 3 | 4 | 1 | 94 | 0.3
A1 | 4 | 5 | 1 | 104 | 0.8 | A2 | 4 | 5 | 1 | 96 | 0.5
A3 | 0 | 1 | 1 | 191 | 0.6 | A2 | 5 | 6 | 1 | 120 | 0.8
A3 | 1 | 2 | 1 | 108 | 0.5 | A2 | 6 | 7 | 1 | 113 | 0.7
A3 | 2 | 3 | 1 | 106 | 0.45 | A4 | 0 | 1 | 1 | 127 | 0.9
A3 | 3 | 4 | 1 | 98 | 0.15 | A4 | 1 | 2 | 1 | 126 | 0.9
A3 | 4 | 5 | 1 | 107 | 0.3 | A4 | 2 | 3 | 1 | 118 | 0.7
A3 | 5 | 6 | 1 | 103 | 0.3 | A4 | 3 | 4 | 1 | 116 | 0.6
A3 | 6 | 7 | 1 | 100 | 0.4 | A4 | 4 | 5 | 1 | 124 | 0.6
A3 | 7 | 8 | 1 | 98 | 0.15 | A4 | 5 | 6 | 1 | 130 | 0.5
A5 | 0 | 1 | 1 | 114 | 0.5 | A4 | 6 | 7 | 1 | 120 | 0.4
A5 | 1 | 2 | 1 | 104 | 0.75 | A4 | 7 | 8 | 1 | 116 | 0.4
A5 | 2 | 3 | 1 | 127 | 0.6 | A4 | 8 | 9 | 1 | 119 | 0.3
A5 | 3 | 4 | 1 | 127 | 0.7 | A6 | 0 | 1 | 1 | 100 | 0.6
A5 | 4 | 5 | 1 | 114 | 0.8 | A6 | 1 | 2 | 1 | 108 | 0.4
A5 | 5 | 6 | 1 | 119 | 0.55 | A6 | 2 | 3 | 1 | 116 | 0.6
A5 | 6 | 7 | 1 | 124 | 0.75 | A6 | 3 | 4 | 1 | 110 | 0.55
A5 | 7 | 8 | 1 | 118 | 0.8 | A6 | 4 | 5 | 1 | 116 | 0.7
A5 | 8 | 9 | 1 | 149 | 0.8 | A6 | 5 | 6 | 1 | 112 | 0.45
A5 | 9 | 10 | 1 | 121 | 0.55 | A6 | 6 | 7 | 1 | 102 | 0.35
A5 | 10 | 11 | 1 | 113 | 0.5 | A6 | 7 | 8 | 1 | 110 | 0.6
A5 | 11 | 12 | 1 | 112 | 0.5 | A6 | 8 | 9 | 1 | 104 | 0.5
A5 | 12 | 13 | 1 | 113 | 0.7 | A6 | 9 | 10 | 1 | 106 | 0.75
A5 | 13 | 14 | 1 | 103 | 0.15 | A6 | 10 | 11 | 1 | 120 | 0.6
A5 | 14 | 15 | 1 | 99 | 0.1 | A6 | 11 | 12 | 1 | 108 | 0.5
A7 | 0 | 1 | 1 | 115 | 0.6 | A6 | 12 | 13 | 1 | - | -
A7 | 1 | 2 | 1 | 111 | 0.5 | A6 | 13 | 14 | 1 | - | -
A7 | 2 | 3 | 1 | 108 | 0.55 | A6 | 14 | 15 | 1 | - | -
A7 | 3 | 4 | 1 | 110 | 0.6 | A6 | 15 | 16 | 1 | - | -
A7 | 4 | 5 | 1 | 108 | 0.5 | A6 | 16 | 17 | 1 | 112 | 0.75
A7 | 5 | 6 | 1 | 103 | 0.45 | A6 | 17 | 18 | 1 | 90 | 0.5
A7 | 6 | 7 | 1 | 105 | 0.8 | A8 | 0 | 1 | 1 | 116 | 0.75
A7 | 7 | 8 | 1 | 94 | 0.5 | A8 | 1 | 2 | 1 | 88 | 0.4
A7 | 8 | 9 | 1 | 116 | 0.75 | A8 | 2 | 3 | 1 | 87 | 0.6
A7 | 9 | 10 | 1 | 104 | 0.6 | A8 | 3 | 4 | 1 | 90 | 0.5
A7 | 10 | 11 | 1 | 99 | 0.5 | A8 | 4 | 5 | 1 | - | -
A7 | 11 | 12 | 1 | 105 | 0.6 | A8 | 5 | 6 | 1 | - | -

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.4 |

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
A7 | 12 | 13 | 1 | 91 | 0.5 | A8 | 6 | 7 | 1 | 102 | 0.75
A7 | 13 | 14 | 1 | 94 | 0.5 | A8 | 7 | 8 | 1 | 111 | 0.8
A7 | 14 | 15 | 1 | 98 | 0.4 | Z2* | 0 | 1 | 1 | 115 | 0.71
A7 | 15 | 16 | 1 | 100 | 0.75 | Z2* | 1 | 2 | 1 | 67 | 0.5
Z1* | 0 | 1 | 1 | 77 | 0.66 | Z2* | 2 | 3 | 1 | 87 | 0.57
Z1* | 1 | 2 | 1 | 97 | 0.64 | Z2* | 3 | 4 | 1 | 104 | 0.71
Z1* | 2 | 3 | 1 | 105 | 0.5 | Z2* | 4 | 5 | 1 | 167 | 0.36
Z1* | 3 | 4 | 1 | 121 | 0.57 | Z2* | 5 | 6 | 1 | 113 | 0.3
Z1* | 4 | 5 | 1 | 137 | 0.85 | Z2* | 6 | 7 | 1 | 121 | 0.56
Z1* | 5 | 6 | 1 | 181 | 0.43 | Z2* | 7 | 8 | 1 | 94 | 0.5
Z1* | 6 | 7 | 1 | 149 | 0.4 | Z2* | 8 | 9 | 1 | 111 | 0.62
Z1* | 7 | 8 | 1 | 99 | 0.64 | Z2* | 9 | 10 | 1 | 88 | 0.6
Z1* | 8 | 9 | 1 | 81 | 0.6 | Z2* | 10 | 11 | 1 | 129 | 0.5
Z3* | 0 | 1 | 1 | 107 | 0.36 | Z2* | 11 | 12 | 1 | 110 | 0.45
Z3* | 1 | 2 | 1 | 65 | 0.29 | Z2* | 12 | 13 | 1 | - | -
Z3* | 2 | 3 | 1 | 129 | 0.3 | Z2* | 13 | 14 | 1 | 100 | 0.45
Z3* | 3 | 4 | 1 | 149 | 0.36 | Z2* | 14 | 15 | 1 | - | -
Z3* | 4 | 5 | 1 | 207 | 0.43 | Z2* | 15 | 16 | 1 | - | -
Z3* | 5 | 6 | 1 | 88 | 0.64 | Z4* | 0 | 1 | 1 | 69 | 0.44
Z3* | 6 | 7 | 1 | 85 | 0.64 | Z4* | 1 | 2 | 1 | 65 | 0.44
Z3* | 7 | 8 | 1 | 211 | 0.57 | Z4* | 2 | 3 | 1 | 113 | 0.48
Z3* | 8 | 9 | 1 | 171 | 0.55 | Z4* | 3 | 4 | 1 | 115 | 0.45
Z3* | 9 | 10 | 1 | 195 | 0.5 | Z4* | 4 | 5 | 1 | 113 | 0.45
Z3* | 10 | 11 | 1 | 157 | 0.45 | Z4* | 5 | 6 | 1 | 109 | 0.8
Z3* | 11 | 12 | 1 | 159 | 0.47 | Z4* | 6 | 7 | 1 | 91 | 0.75
Z3* | 12 | 13 | 1 | 149 | 0.45 | Z4* | 7 | 8 | 1 | 117 | 0.87
Z5* | 0 | 1 | 1 | 72 | 0.53 | Z4* | 8 | 9 | 1 | 104 | 0.47
Z5* | 1 | 2 | 1 | 63 | 0.5 | Z4* | 9 | 10 | 1 | 105 | 0.47
Z5* | 2 | 3 | 1 | 95 | 0.53 | Z4* | 10 | 11 | 1 | 144 | 0.5
Z5* | 3 | 4 | 1 | 92 | 0.53 | Z4* | 11 | 12 | 1 | 151 | 0.56
Z5* | 4 | 5 | 1 | 117 | 0.44 | Z4* | 12 | 13 | 1 | 140 | 0.5
Z5* | 5 | 6 | 1 | 108 | 0.44 | Z6* | 0 | 1 | 1 | 82 | 0.56
Z5* | 6 | 7 | 1 | 178 | 0.48 | Z6* | 1 | 2 | 1 | 51 | 0.4
Z5* | 7 | 8 | 1 | 180 | 0.5 | Z6* | 2 | 3 | 1 | 88 | 0.42
Z5* | 8 | 9 | 1 | 76 | 0.44 | Z6* | 3 | 4 | 1 | 94 | 0.42
Z5* | 9 | 10 | 1 | 126 | 0.42 | Z6* | 4 | 5 | 1 | 95 | 0.45
Z5* | 10 | 11 | 1 | 129 | 0.4 | Z6* | 5 | 6 | 1 | 103 | 0.45
Z5* | 11 | 12 | 1 | 143 | 0.42 | Z6* | 6 | 7 | 1 | 188 | 0.6
Z5* | 12 | 13 | 1 | 91 | 0.56 | Z6* | 7 | 8 | 1 | 222 | 0.68
B1 | 0 | 1.5 | 1.5 | 65 | 0.87 | Z6* | 8 | 9 | 1 | 110 | 0.37
B1 | 1.5 | 3 | 1.5 | 72 | 0.73 | Z6* | 9 | 10 | 1 | 111 | 0.37

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.5 |

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
B1 | 3 | 4.5 | 1.5 | 95 | 0.65 | Z6* | 10 | 11 | 1 | 123 | 0.5
B1 | 4.5 | 6 | 1.5 | 184 | 0.83 | Z6* | 11 | 12 | 1 | 134 | 0.45
B1 | 6 | 7 | 1 | 116 | 0.71 | Z6* | 12 | 13 | 1 | 128 | 0.5
B1 | 7 | 8 | 1 | 77 | 0.46 | Z6* | 13 | 14 | 1 | 107 | 0.4
B1 | 8 | 9 | 1 | 73 | 0.53 | B2 | 0 | 1.5 | 1.5 | 69 | 0.77
B1 | 9 | 10 | 1 | 47 | 0.35 | B2 | 1.5 | 3 | 1.5 | 59 | 1.01
B3 | 0 | 2 | 2 | 57 | 0.71 | B2 | 3 | 4.5 | 1.5 | 69 | 0.48
B3 | 2 | 4 | 2 | 70 | 0.71 | B2 | 4.5 | 6 | 1.5 | 95 | 0.57
B3 | 4 | 6 | 2 | 94 | 0.79 | B2 | 6 | 7.5 | 1.5 | 105 | 0.48
B3 | 6 | 8 | 2 | 93 | 1.21 | B2 | 7.5 | 9 | 1.5 | 100 | 0.54
B3 | 8 | 9 | 1 | 102 | 1.28 | B2 | 9 | 10 | 1 | 125 | 0.6
B3 | 9 | 10 | 1 | 116 | 0.67 | B2 | 10 | 10.5 | 0.5 | 107 | 1.07
B3 | 10 | 11 | 1 | 91 | 0.65 | B2 | 10.5 | 12 | 1.5 | 130 | 0.6
B3 | 11 | 13 | 2 | 88 | 0.67 | B2 | 12 | 13 | 1 | 108 | 0.68
B3 | 13 | 14 | 1 | 129 | 0.47 | B2 | 13 | 14 | 1 | - | -
B3 | 14 | 15 | 1 | 91 | 0.47 | B2 | 14 | 15 | 1 | - | -
B3 | 15 | 16 | 1 | 92 | 0.63 | B2 | 15 | 16 | 1 | - | -
B3 | 16 | 18 | 2 | 114 | 0.3 | B2 | 16 | 18 | 2 | 101 | 1.14
B3 | 18 | 20 | 2 | 83 | 0.3 | B2 | 18 | 19 | 1 | 86 | 0.71
B3 | 20 | 21 | 1 | 96 | 0.91 | B4 | 0 | 2 | 2 | 67 | 0.6
B3 | 21 | 22 | 1 | 106 | 0.76 | B4 | 2 | 3 | 1 | 61 | 0.52
B3 | 22 | 23 | 1 | 93 | 0.76 | B4 | 3 | 4 | 1 | 71 | 0.43
B3 | 23 | 24 | 1 | 92 | 0.91 | B4 | 4 | 5 | 1 | 75 | 0.52
B3 | 24 | 25 | 1 | 94 | 0.52 | B4 | 5 | 7 | 2 | 65 | 0.52
B3 | 25 | 26 | 1 | 92 | 0.43 | B4 | 7 | 9 | 2 | 83 | 0.3
B3 | 26 | 26.4 | 0.4 | 127 | 0.78 | B4 | 9 | 11 | 2 | 114 | 0.47
B5 | 0 | 1 | 1 | 78 | 0.88 | B4 | 11 | 13 | 2 | 94 | 0.44
B5 | 1 | 2 | 1 | 64 | 0.44 | B4 | 13 | 15 | 2 | 100 | 0.41
B5 | 2 | 3 | 1 | 55 | 0.44 | B4 | 15 | 17 | 2 | 92 | 0.41
B5 | 3 | 4 | 1 | 57 | 0.44 | B4 | 17 | 19 | 2 | 76 | 0.4
B5 | 4 | 5 | 1 | 83 | 0.5 | B4 | 19 | 21 | 2 | 86 | 0.4
B5 | 5 | 6 | 1 | 97 | 0.48 | B4 | 21 | 23 | 2 | 117 | 0.4
B5 | 6 | 7 | 1 | 103 | 0.6 | B4 | 23 | 23.5 | 0.5 | 14 | 0.1
B5 | 7 | 8 | 1 | 91 | 0.5 | C1 | 0 | 1 | 1 | 72 | 0.5
B5 | 8 | 9 | 1 | 135 | 0.81 | C1 | 1 | 2 | 1 | 67 | 0.56
B5 | 9 | 10 | 1 | 92 | 0.51 | C1 | 2 | 3 | 1 | 80 | 0.53
B5 | 10 | 11 | 1 | 157 | 0.88 | C1 | 3 | 4 | 1 | 97 | 0.56
B5 | 11 | 12 | 1 | 128 | 0.73 | C1 | 4 | 5 | 1 | 93 | 0.44
B5 | 12 | 13 | 1 | 81 | 0.44 | C1 | 5 | 6 | 1 | 88 | 0.47
B5 | 13 | 14 | 1 | 86 | 0.68 | C1 | 6 | 7 | 1 | 105 | 0.5
B5 | 14 | 15 | 1 | 83 | 0.68 | C1 | 7 | 8 | 1 | 136 | 0.56

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.6 |

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
B5 | 15 | 16 | 1 | 78 | 0.6 | C1 | 8 | 8.5 | 0.5 | 81 | 0.56
B5 | 16 | 17 | 1 | 83 | 0.55 | C4 | 0 | 1 | 1 | 68 | 0.5
B5 | 17 | 18 | 1 | 84 | 0.55 | C4 | 1 | 2 | 1 | 70 | 0.62
C3 | 0 | 1 | 1 | 96 | 0.59 | C4 | 2 | 3 | 1 | 60 | 0.5
C3 | 1 | 2 | 1 | 82 | 0.72 | C4 | 3 | 4 | 1 | 72 | 0.5
C3 | 2 | 3 | 1 | 59 | 0.66 | C4 | 4 | 5 | 1 | 67 | 0.56
C3 | 3 | 4 | 1 | 74 | 0.53 | C4 | 5 | 6 | 1 | 55 | 0.41
C3 | 4 | 5 | 1 | 92 | 0.88 | C4 | 6 | 7 | 1 | 61 | 0.31
C3 | 5 | 6 | 1 | 85 | 0.69 | C4 | 7 | 8 | 1 | 87 | 0.5
C3 | 6 | 7 | 1 | 132 | 0.75 | C4 | 8 | 9 | 1 | 86 | 0.56
C3 | 7 | 8 | 1 | 116 | 0.69 | C4 | 9 | 10 | 1 | 82 | 0.44
C3 | 8 | 9 | 1 | 118 | 0.69 | C4 | 10 | 11 | 1 | 83 | 0.31
C3 | 9 | 10 | 1 | 116 | 0.88 | C4 | 11 | 12 | 1 | 90 | 0.56
C3 | 10 | 11 | 1 | 109 | 0.63 | C4 | 12 | 13 | 1 | 97 | 0.56
C3 | 11 | 12 | 1 | 142 | 0.69 | C4 | 13 | 14 | 1 | 93 | 0.5
C3 | 12 | 13 | 1 | 107 | 0.56 | C4 | 14 | 15 | 1 | 105 | 0.44
C3 | 13 | 14 | 1 | 100 | 0.38 | C4 | 15 | 16 | 1 | 94 | 0.69
C3 | 14 | 15 | 1 | 113 | 0.56 | C4 | 16 | 17 | 1 | 94 | 0.66
C5 | 0 | 1 | 1 | 99 | 0.44 | C4 | 17 | 18 | 1 | 83 | 0.5
C5 | 1 | 2 | 1 | 83 | 0.55 | C4 | 18 | 19 | 1 | 119 | 0.62
C5 | 2 | 3 | 1 | 82 | 0.52 | C4 | 19 | 20 | 1 | - | -
C5 | 3 | 4 | 1 | 75 | 0.52 | C4 | 20 | 21 | 1 | 75 | 0.53
C5 | 4 | 5 | 1 | 65 | 0.52 | C4 | 21 | 22 | 1 | 85 | 0.69
C5 | 5 | 6 | 1 | 70 | 0.59 | C4 | 22 | 23 | 1 | 42 | 0.38
C5 | 6 | 7 | 1 | 79 | 0.44 | C4 | 23 | 24 | 1 | 17 | 0.23
C5 | 7 | 8 | 1 | 58 | 0.59 | C6 | 0 | 1 | 1 | 84 | 0.63
C5 | 8 | 9 | 1 | 73 | 0.48 | C6 | 1 | 2 | 1 | 62 | 0.59
C5 | 9 | 10 | 1 | 76 | 0.44 | C6 | 2 | 3 | 1 | 70 | 0.66
C5 | 10 | 11 | 1 | 77 | 0.44 | C6 | 3 | 4 | 1 | 68 | 0.52
C5 | 11 | 12 | 1 | 81 | 0.48 | C6 | 4 | 5 | 1 | 65 | 0.48
C5 | 12 | 13 | 1 | 84 | 0.4 | C6 | 5 | 6 | 1 | 70 | 0.37
C5 | 13 | 14 | 1 | 77 | 0.35 | C6 | 6 | 7 | 1 | 91 | 0.55
D1 | 0 | 1 | 1 | 115 | 0.53 | C6 | 7 | 8 | 1 | 75 | 0.5
D1 | 1 | 2 | 1 | 99 | 0.59 | C6 | 8 | 9 | 1 | 104 | 0.44
D1 | 2 | 3 | 1 | 66 | 0.46 | C6 | 9 | 10 | 1 | 97 | 0.44
D1 | 3 | 4 | 1 | 67 | 0.39 | D2 | 0 | 1 | 1 | 81 | 0.59
D1 | 4 | 5 | 1 | 85 | 0.39 | D2 | 1 | 2 | 1 | 85 | 0.48
D1 | 5 | 6 | 1 | 79 | 0.33 | D2 | 2 | 3 | 1 | 74 | 0.55
D1 | 6 | 7 | 1 | 92 | 0.46 | D2 | 3 | 4 | 1 | 83 | 0.55
D1 | 7 | 8 | 1 | 84 | 0.33 | D2 | 4 | 5 | 1 | 83 | 0.52
D1 | 8 | 9 | 1 | 120 | 0.53 | D2 | 5 | 6 | 1 | 80 | 0.52

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.7 |

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
D1 | 9 | 10 | 1 | 76 | 0.39 | D2 | 6 | 7 | 1 | 87 | 0.48
D1 | 10 | 11 | 1 | 74 | 0.53 | D2 | 7 | 8 | 1 | 78 | 0.59
D1 | 11 | 12 | 1 | 142 | 0.46 | D2 | 8 | 9 | 1 | 81 | 0.52
D1 | 12 | 13 | 1 | 104 | 0.33 | D2 | 9 | 10 | 1 | 93 | 0.63
D3 | 0 | 1 | 1 | 84 | 0.4 | D2 | 10 | 11 | 1 | 113 | 0.52
D3 | 1 | 2 | 1 | 94 | 0.44 | D2 | 11 | 12 | 1 | 109 | 0.63
D3 | 2 | 3 | 1 | 63 | 0.4 | D2 | 12 | 13 | 1 | 101 | 0.52
D3 | 3 | 4 | 1 | 90 | 0.59 | D2 | 13 | 14 | 1 | 107 | 0.52
D3 | 4 | 5 | 1 | 85 | 0.44 | D2 | 14 | 15 | 1 | 105 | 0.52
D3 | 5 | 6 | 1 | 91 | 0.44 | D2 | 15 | 16 | 1 | 105 | 0.52
D3 | 6 | 7 | 1 | 88 | 0.52 | D2 | 16 | 17 | 1 | 113 | 0.59
D3 | 7 | 8 | 1 | 81 | 0.44 | D2 | 17 | 19 | 2 | 108 | 0.55
D3 | 8 | 9 | 1 | 75 | 0.4 | D4 | 0 | 1 | 1 | 77 | 0.48
D3 | 9 | 10 | 1 | 170 | 0.81 | D4 | 1 | 2 | 1 | 77 | 0.55
D3 | 10 | 11 | 1 | 185 | 0.77 | D4 | 2 | 3 | 1 | 71 | 0.52
D3 | 11 | 12 | 1 | 177 | 0.59 | D4 | 3 | 4 | 1 | 78 | 0.59
D3 | 12 | 13 | 1 | 130 | 0.37 | D4 | 4 | 5 | 1 | 73 | 0.7
D3 | 13 | 14 | 1 | 119 | 0.37 | D4 | 5 | 6 | 1 | 56 | 0.33
D3 | 14 | 15 | 1 | 84 | 0.4 | E2 | 0 | 1 | 1 | 79 | 0.62
D3 | 15 | 16 | 1 | 115 | 0.37 | E2 | 1 | 2 | 1 | 81 | 0.56
D3 | 16 | 17 | 1 | 78 | 0.29 | E2 | 2 | 3 | 1 | 78 | 0.56
D3 | 17 | 18 | 1 | 107 | 0.37 | E2 | 3 | 4 | 1 | 73 | 0.56
D3 | 18 | 19 | 1 | 120 | 0.37 | E2 | 4 | 5 | 1 | 83 | 0.56
D3 | 19 | 19.5 | 0.5 | 22 | 0.22 | E2 | 5 | 6 | 1 | 71 | 0.63
E1 | 0 | 1 | 1 | 88 | 0.45 | E2 | 6 | 7 | 1 | 75 | 0.51
E1 | 1 | 2 | 1 | 90 | 0.46 | E2 | 7 | 8 | 1 | 75 | 0.51
E1 | 2 | 3 | 1 | 62 | 0.46 | E2 | 8 | 9 | 1 | 64 | 0.54
E1 | 3 | 4 | 1 | 74 | 0.46 | E2 | 9 | 10 | 1 | 58 | 0.54
E1 | 4 | 5 | 1 | 70 | 0.38 | E2 | 10 | 11 | 1 | 99 | 0.68
E1 | 5 | 6 | 1 | 77 | 0.38 | E2 | 11 | 12 | 1 | 72 | 0.47
E1 | 6 | 7 | 1 | 58 | 0.45 | E2 | 12 | 13 | 1 | 69 | 0.47
E1 | 7 | 8 | 1 | 62 | 0.5 | E2 | 13 | 14 | 1 | 105 | 0.68
E1 | 8 | 9 | 1 | 70 | 0.38 | E2 | 14 | 15 | 1 | 87 | 0.54
E1 | 9 | 10 | 1 | 67 | 0.38 | E2 | 15 | 16 | 1 | 90 | 0.47
E1 | 10 | 11 | 1 | 84 | 0.45 | E2 | 16 | 17.5 | 1.5 | 103 | 0.51
E1 | 11 | 13 | 2 | 80 | 0.48 | E2 | 17.5 | 18.5 | 1 | 18 | 0.1
E3 | 0 | 1 | 1 | 78 | 0.45 | F1 | 0 | 1 | 1 | 85 | 0.78
E3 | 1 | 2 | 1 | 91 | 0.61 | F1 | 1 | 2 | 1 | 73 | 0.34
E3 | 2 | 3 | 1 | 82 | 0.61 | F1 | 2 | 3 | 1 | 74 | 0.41
E3 | 3 | 4 | 1 | 91 | 0.4 | F1 | 3 | 4 | 1 | 106 | 0.86
E3 | 4 | 5 | 1 | 93 | 0.38 | F1 | 4 | 5 | 1 | 100 | 0.8

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.8 |

Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t) |  | Hole ID | From (m) | To (m) | Interval (m) | Ag (g/t) | Au (g/t)
E3 | 5 | 6 | 1 | 96 | 0.46 |  | F1 | 5 | 6 | 1 | 80 | 0.31
E3 | 6 | 7 | 1 | 93 | 0.43 |  | F1 | 6 | 7 | 1 | 105 | 0.47
E3 | 7 | 8 | 1 | 80 | 0.46 |  | F1 | 7 | 8 | 1 | 95 | 0.4
E3 | 8 | 9 | 1 | 78 | 0.4 |  | F1 | 8 | 9 | 1 | 77 | 0.43
E3 | 9 | 10 | 1 | 92 | 0.5 |  | F1 | 9 | 10 | 1 | 78 | 0.43
E3 | 10 | 11 | 1 | 96 | 0.48 |  | F1 | 10 | 11 | 1 | 101 | 0.69
E3 | 11 | 12 | 1 | 72 | 0.45 |  | F1 | 11 | 12 | 1 | 71 | 0.47
F2 | 0 | 1 | 1 | 93 | 0.75 |  | F1 | 12 | 13 | 1 | 71 | 0.47
F2 | 1 | 2 | 1 | 70 | 0.38 |  | F1 | 13 | 14 | 1 | 90 | 0.29
F2 | 2 | 3 | 1 | 62 | 0.38 |  | F1 | 14 | 15 | 1 | 65 | 0.5
F2 | 3 | 4 | 1 | 87 | 0.75 |  | F1 | 15 | 16 | 1 | 86 | 0.57
F2 | 4 | 5 | 1 | 66 | 0.25 |  | F1 | 16 | 16.5 | 0.5 | 44 | 0.57
F2 | 5 | 6 | 1 | 73 | 0.3 |  | F1 | 16.5 | 17.5 | 1 | 52 | 0.55
F2 | 6 | 7 | 1 | 75 | 0.31 |  | F1 | 17.5 | 18 | 0.5 | 71 | 0.5
F2 | 7 | 8 | 1 | 66 | 0.3 |  | F1 | 18 | 18.5 | 0.5 | 59 | 0.5
F2 | 8 | 9 | 1 | 60 | 0.25 |  | F3 | 0 | 1 | 1 | 80 | 0.49
F2 | 9 | 10 | 1 | 57 | 0.25 |  | F3 | 1 | 2 | 1 | 84 | 0.51
F2 | 10 | 11 | 1 | 68 | 0.3 |  | F3 | 2 | 3 | 1 | 82 | 0.46
F2 | 11 | 12 | 1 | 72 | 0.25 |  | F3 | 3 | 4 | 1 | 82 | 0.46
F2 | 12 | 13 | 1 | 82 | 0.31 |  | F3 | 4 | 5 | 1 | 79 | 0.32
F2 | 13 | 14 | 1 | 75 | 0.3 |  | F3 | 5 | 6 | 1 | 82 | 0.35
F2 | 14 | 15.5 | 1.5 | 80 | 0.25 |  | F3 | 6 | 7 | 1 | 78 | 0.46
F2 | 15.5 | 16 | 0.5 | 11 | 0.25 |  | F3 | 7 | 8 | 1 | 92 | 0.39
- | - | - | - | - | - |  | F3 | 8 | 9 | 1 | 80 | 0.42
- | - | - | - | - | - |  | F3 | 9 | 10 | 1 | 90 | 0.33
- | - | - | - | - | - |  | F3 | 10 | 11 | 1 | 91 | 0.33
- | - | - | - | - | - |  | F3 | 11 | 12 | 1 | 61 | 0.33
- | - | - | - | - | - |  | F3 | 12 | 13 | 1 | 79 | 0.36
- | - | - | - | - | - |  | F3 | 13 | 14 | 1 | 82 | 0.36
- | - | - | - | - | - |  | F3 | 14 | 15 | 1 | 18 | 0.2

Note: A statement regarding true width is irrelevant.
*Trenches completed on the A1-A1 section line, Figure 10.1.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.9 |

10.2 RECENT DRI LLING (POST MINE CLOSURE ), 200 1 TO PRESENT
10.2.1 AVINO VEIN (INCLUDING E T ZONE ) AND NEAR BY VEINS
Subsequent to the mine closing in 2001, Avino has drilled 32 holes below the 12 level where mining ceased. Drilling has targeted the ET Zone in particular. There were six holes in 2006, 12 holes in 2007, 8 holes in 2008, and 9 holes to date in 2012. At the time of writing this report, the 2012 program was underway and a total of 34 drillholes had been planned, most of which target the ET Zone of the Avino vein. Collar coordinates for all drillholes completed by Avino on the ET zone are provided in Table 10.3. Assay results from these drillholes are provided in Appendix A; at the time of the effective date, not all assay results had been received for 2012 drilling. A location map of Avino vein and ET Zone drillholes is provided in Figure 10.2.
Tecmin Servicios, S.A. de C.V., was contracted for the 2007 and 2008 drilling programs at the ET Zone of the Avino vein. Since the Avino deposit strikes approximately east-west and dips at 60 to 70° to the south, holes are generally oriented from south to north at various bearings and dip angles in order to intersect the structure at a given depth. Holes are drilled using Avino's own Longyear 44 core rig at thin wall NQ diameter.
Table 10.3 ET Zone and Avino Vein Drillholes from the 2006, 2007, 2008, and 2012 Drilling Programs

Hole ID | Azimuth (°) | Dip (°) | Depth (m) | Easting (m) | Northing (m) | Elevation (m)
CH-06-03 | 338° | -50° | 453.75 | 571013.103 | 2712795.971 | 2207.831
ET-06-04 | 340° | -50° | 444.05 | 570500.623 | 2712467.735 | 2214.833
ET-06-03 | 339° | -48° | 421.15 | 570456.800 | 2712361.155 | 2194.131
ET-06-02 | 340° | -50° | 416.70 | 570336.888 | 2712308.808 | 2190.388
ET-06-01 | 337° | -55° | 431.20 | 570270.788 | 2712261.821 | 2186.731
SL-06-01 | 0° | 90° | 219.15 | 569956.216 | 2712528.656 | 2241.677
ET-07-01 | 1° | -69° | 298.60 | 570176.320 | 2712453.403 | 2222.362
ET-07-02 | 358° | -75° | 311.90 | 570206.086 | 2712467.480 | 2223.718
ET-07-03 | 336° | -71° | 349.50 | 570344.396 | 2712498.395 | 2226.029
ET-07-04 | 331° | -56° | 318.70 | 570439.501 | 2712510.825 | 2226.037
ET-07-05 | 333° | -65.5° | 351.50 | 570439.749 | 2712510.243 | 2226.058
ET-07-06 | 336° | -55° | 320.05 | 570519.561 | 2712523.797 | 2224.829
ET-07-07 | 330° | -56.5° | 304.85 | 570584.658 | 2712568.615 | 2230.451
ET-07-08 | 346° | -69° | 399.70 | 570584.202 | 2712568.513 | 2230.501
ET-07-09 | 336° | -62° | 328.55 | 570629.412 | 2712603.567 | 2235.417
ET-07-10 | 338º | -62° | 308.65 | 570645.359 | 2712649.720 | 2244.991
ET-07-11 | 337° | -69° | 329.80 | 570682.364 | 2712653.877 | 2241.000
ET-07-12 | 337° | -48° | 284.70 | 570735.366 | 2712653.650 | 2234.321
ET-08-01 | 329° | -45° | 221.45 | 570806.627 | 2712711.825 | 2236.043
ET-08-02 | 330° | -54° | 234.50 | 570341.012 | 2712548.968 | 2243.505
ET-08-03 | 333° | -64° | 265.10 | 570341.148 | 2712548.719 | 2243.511
ET-08-04 | 337° | -65° | 358.65 | 570578.583 | 2712568.104 | 2230.503
ET-08-05 | 338° | -66° | 371.10 | 570657.505 | 2712628.670 | 2239.836
ET-08-06 | 338° | -59° | 292.45 | 570675.862 | 2712654.418 | 2242.885
ET-08-07 | 343° | -70° | 174.40 | 570746.855 | 2712655.768 | 2233.997
ET-08-08 | 344° | -45° | 269.05 | 570905.611 | 2712766.232 | 2226.686
ET-12-01 | 332° | -62° | 288.15 | 570354.380 | 2712501.271 | 2226.333

table continues…

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.10 |

Hole ID | Azimuth (°) | Dip (°) | Depth (m) | Easting (m) | Northing (m) | Elevation (m)
ET-12-02 | 335° | -53° | 360.90 | 570506.662 | 2712472.036 | 2214.200
ET-12-03 | 335° | -61° | 367.75 | 570506.958 | 2712471.402 | 2214.200
ET-12-04 | 335° | -64° | 373.75 | 570544.123 | 2712496.768 | 2216.221
ET-12-05 | 336° | -62° | 369.20 | 570566.087 | 2712507.602 | 2217.507
ET-12-06 | 336° | -70° | 396.10 | 570589.400 | 2712523.122 | 2219.446
ET-12-07 | 336° | -64° | 327.60 | 570678.266 | 2712593.838 | 2226.767
ET-12-08 | 336° | -72° | 384.35 | 570678.266 | 2712593.838 | 2226.767
ET-12-09 | 336° | -72° | 395.35 | 570646.036 | 2712555.096 | 2222.358

Note: Datum: NAD 27
10.2.2 SAN GONZALO AND NEAR BY VEINS
At San Gonzalo, Avino drilled 40 holes in 2007, 6 in 2008, and 18 in 2011. All holes were of NQ size core diameter and were completed using Avino’s Longyear 44 drill rig. Additional holes also explored the nearby Guadalupe, San Juventino, San Lucerno, Mercedes, San Jorge, and Yolanda veins.
Results from the 2007 drilling program are disclosed in Gunning (2009). According to Gunning (2009), the drill collars have been well marked by concrete monuments and the collars have been surveyed. A check of the coordinates with a handheld global positioning system (GPS) revealed a possible 10 m constant error which may simply mean that all of the mine coordinates are not precisely UTM. However, this could also indicate the existence of a small surveying error on the Property.
In 2011, a total of 69 holes totalling 9,943 m were drilled principally in the following locations: San Gonzalo (18 holes), La Potosina (9 holes), Guadalupe (23 holes), San Juventino (3 holes), San Lucero (5 holes), Mercedes (1 hole), San Jorge (3 holes), Yolanda (2 holes). With the exception of the San Gonzalo vein, all of these locations are considered targets for further exploration.
Collar coordinates for all 2008 and 2011 drillholes completed by Avino on the San Gonzalo vein are provided in Table 10.4; 2007 drillholes are reported by Gunning (2009). Assay results from these drillholes are provided in Appendix A. A location map of drillholes on the San Gonzalo vein is provided in Figure 10.3.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.11 |

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.12 |

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.13 |

Table 10.4 Drillholes from the 2008 and 2011 Drill Programs at San Gonzalo

Hole ID | Azimuth (°) | Dip (°) | Depth (m) | Easting (m) | Northing (m) | Elevation (m)
SG-08-01 | 35 | -51 | 210.05 | 571776.415 | 2713974.113 | 2314.347
SG-08-02 | 215 | -57 | 269.05 | 571964 | 2714167.289 | 2335.147
SG-08-03 | 215 | -70 | 331.95 | 571964.333 | 2714167.766 | 2335.066
SG-08-04 | 215 | -63 | 269.95 | 572029.004 | 2714121.331 | 2342.889
SG-08-05 | 35 | -55 | 475.25 | 571700.804 | 2713.892.936 | 2284.733
SG-08-06 | 48 | -64 | 226.40 | 571679.024 | 2714136.877 | 2276.839
SG-11-01 | 215 | -59 | 100.95 | 571980.871 | 2714009.383 | 2356.539
SG-11-02 | 215 | -63 | 141.15 | 571995.078 | 2714030.101 | 2355.143
SG-11-03 | 215 | -44 | 98.45 | 572019.777 | 2713993.539 | 2356.984
SG-11-04 | 212 | -54 | 176.50 | 571968.893 | 2714078.899 | 2350.622
SG-11-05 | 40 | -43 | 151.40 | 571891.963 | 2713831.629 | 2317.206
SG-11-06 | 189 | -44 | 122.32 | 571732.204 | 2714379.254 | 2274.265
SG-11-07 | 30 | -68 | 74.00 | 572030.359 | 2713946.137 | 2358.234
SG-11-08 | 37 | -67 | 125.35 | 572042.808 | 2713887.654 | 2359.582
SG-11-09 | 181 | -48 | 71.10 | 571585.291 | 2714365.845 | 2278.269
SG-11-10 | 201 | -61 | 78.40 | 571239.671 | 2714538.276 | 2234.833
SG-11-11 | 201 | -61 | 91.95 | 571329.342 | 2714396.589 | 2273.685
SG-11-12 | 218 | -71 | 312.15 | 571811.037 | 2714287.811 | 2304.591
SG-11-13 | 218 | -71 | 345.40 | 571846.515 | 2714257.547 | 2309.667
SG-11-14 | 209 | -61 | 330.50 | 571939.429 | 2714213.596 | 2325.969
SG-11-15 | 211 | -68 | 363.45 | 572029.832 | 2714171.948 | 2336.607
SG-11-16 | 209 | -62 | 334.25 | 572091.997 | 2714173.294 | 2330.761
SG-11-17 | 210 | -70 | 383.10 | 571836.06 | 2714336.012 | 2306.479
SG-11-18 | 218 | -71 | 318.15 | 571765.298 | 2714320.555 | 2293.144

Note: Datum: NAD 27

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 10.14 |

11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY

All information regarding sample preparation, analyses, and security that was available to Tetra Tech is summarized in this section. Avino’s current on-site laboratory facility consists of sample preparation, crushing and pulverizing, a fire assay and an AA section. However, the procedures and facilities used in 1990 to 1991 may be different from the current sample analysis procedures.
11.1 DR I LL I N G A N D T RENC H I N G O F OX I D E TA I L I N G S, 1990-1991
The oxide tailings were sampled prior to institution of NI 43-101 and associated QA/QC requirements, and as such no QA/QC measures were utilized during the 1990-1991 program. As a result, the resource estimate in Section 14.2 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 12.3.
11.2 TA I L I N G S IN V EST I G ATI O N S (TE S T PI T S I N OX I D ET A I L I N G S ), 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 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.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 11.1 |

The samples were air-freighted to PRA 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. 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 spectroscopy method (ICP- MS), 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, etc.). The standard fire assay method was used for gold analyses. Cyanide and lime concentrations were measured using standard titrametric 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. Tetra Tech did not independently verify nor compare the results of the sampling program.
11.3 2007, 2008, AND 201 1 DRILLING PROGRAM, SAN GONZALO
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.
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 quality control 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).
Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 11.2 |

11.4 2006, 2007, 2008, AND 201 2 DRILLING PROGRAMS , E T ZONE OF THE AVINO VEI N
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. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.
11.5 UNDERGROUN D CHANNE L SAMP L I N G O F SA N GO N ZA L O VEI N , 2010
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 Nevada and British Columbia are ISO 9001:2008 certified full service laboratories. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.
11.6 201 1 BULK SAMPLING PROGRAM , SAN GONZALO
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.
Samples from the 2012 underground channel sampling program at 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. Sample QA/QC procedures are as described in Section 11.3.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 11.3 |

11.7 AVINO LABORATORY
The Avino laboratory has fire assay, atomic absorption and sieving analysis equipment. Head grade assay data comparisons (Figure 11.1) suggest that recent gold assay results from the Avino laboratory are consistently slightly higher than those from the SGS laboratory in Durango. Silver analyses are similar overall, with slightly higher grades reported from the Avino laboratory at low silver values (below approximately 80 ppm) but with slightly lower grades reported at high silver values.
Figure 11.1 Head Grade Composite Assay Comparison for Gold and Silver Between the Avino and SGS Durango Laboratories (Jan to May 2012)

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 11.4 |

12.0 DATA VERIFICATION

12.1 D ATABASE
Tetra Tech compiled the assay data used in the oxide tailings resource estimate by referring to original mine sections. Verification of this data is described in Sections 12.2.1 and 12.3. The 1:1,000 scale plans drafted for this exercise were scanned and used to verify the positions of the old drillholes. A transposition error on one 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 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 1990-1991 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.
12.2 A SSAY V ERIFICATION
12.2.1 1990/1991 DRILLHOLES IN OXIDE TAILINGS
The drillholes in the oxide tailings were completed prior to institution of NI 43-101 and related QA/QC requirements. The analyses were completed in the Avino Mine laboratory and no original assay certificates have been produced or preserved. The database and mine sections were therefore compared with the original hand-written data collected from the mine laboratory. These assay sheets from the mine laboratory show good agreement with the mine sections and resulting database used by Tetra Tech for estimation of the oxide tailings in Section 14.1. Tetra Tech 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 (excluding the Z-series trenches). Only two errors were noted in the database, as documented in Table 12.1, yielding an error incidence of less than 1%. An additional discrepancy noted during this verification exercise was a mistake in the hole number sequence along the C-C line on the original plan view map (Figure 10.1, Section 10). The original mine sections and assay sheets skip hole C2 and include the drillhole numbers C1 and C3 to C6, whereas the plan view map lists the C-series drillholes sequentially from C1 to C5. The database used for estimation matches the mine sections and original assay sheets, and therefore no hole C2 exists in the database. The original mine sections are provided in Appendix B. Also included in Appendix B are the original hand-written assay sheets for all drillholes that were verified (the assay sheets also includes assay data for other, unrelated material which was being processed around the same time as the oxide tailings material).

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Table 12.1 1990/1991 Assay Database Errors

Hole | From | To |
Number | (m) | (m) | Error
E2 | 14 | 15 | Ag value entered as 97 g/t, should be 87 g/t
C4 | 18 | 19 | Ag value entered as 119 g/t, should be 113 g/t

In order to verify the reliability of the assay data from the oxide tailings sampling, Tetra Tech collected numerous verification samples (as described in Section 12.3) with the goal of evaluating:

● | the presence and grade of silver and gold in the tailings
● | the reliability of the Avino Mine laboratory; to address this, the same samples were analysed at the mine as well as two external labs.

The QP opinion of the reliability of the 1990-1991 oxide tailings assays is discussed in Section 12.4.
12.2.2 DRILLING ON THE SAN GONZALO AND AVINO VEINS
Drilling on the San Gonzalo vein prior to 2009 is disclosed in Gunning (2009) and is not addressed further here.
Assay results for drillholes on the Avino vein and post-2009 drilling on the San Gonzalo vein were verified by Tetra Tech. Original assay certificates from the external lab (SGS Durango) used for these analyses were compared against the data as reported by Avino (Appendix A). Tetra Tech verified all assay results for holes SG-11-13 to SG-11-17, and ET-12-01 to ET-12-09. For all metals in the database (gold, silver, copper, lead, zinc, and bismuth), error incidence was less than 1%. Table 12.2 documents those errors.

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Table 12.2 2011-2012 Assay Database Errors

Hole Number | Sample Number | From (m) | To (m) | Error
ET-12-05 | 162686 | 345.10 | 345.50 | Value entered as 4.8 g/t Au, should be 48.1 g/t Au;
|  |  |  | Value entered as 350 g/t Ag, should be 1,811.3 g/t Ag
ET-12-05 | 162687 | 345.50 | 345.80 | Value entered as 2.8 g/t Au, should be 28.3 g/t Au
ET-12-02 | 162463 | 276.85 | 277.3 | Value entered as 101.1 g/t Ag, should be 101.8 g/t Ag
ET-12-06 | 162720 | Standard | Value entered as 1.02 ppm Pb, should be 10,200 ppm Pb
ET-12-05 | 162694 | 354.8 | 355.8 | Value entered as 2,600 ppm Zn, should be 26,000 ppm Zn

It has been recommended that for estimation purposes, Avino record in the assay database half of the lower detection limit value for any samples that are below this limit.
In Tetra Tech’s opinion, the assay data from drillholes on the San Gonzalo and Avino veins is considered reliable according to industry standards.
12.3 S ITE V ISIT AND V ERIFICATION S AMPLES
During a site visit conducted on June 7 and 8, 2012, QP Michael F. O’Brien visited the tailings heaps and verified the location of walls and the extent of the oxide and sulphide tailings. Mr. O’Brien also visited the Avino Mine laboratory, and observations related to the lab are presented in Section 11.7. Due to subsequent erosion and deposition, it was not possible to locate collar positions from the 1990/1991 drilling campaign. Mr. O’Brien supervised the collection of eight samples from the oxide tailings (3 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. These results are presented in Table 12.3. Assay certificates for results from the SGS Durango and Vancouver laboratories are provided in Appendix B.

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Table 12.3 Results of Verification Samples

Avino Laboratory Results | SGS Durango Results | SGS Vancouver Results
Sample | Ag | Pb | Zn | Cu | Au | Sample | Ag | Pb | Zn | Cu | Au | Sample | Ag | Pb | Zn | Cu | Au
Number | (g/t) | (ppm) | (ppm) | (ppm) | (g/t) | Number | (g/t) | (ppm) | (ppm) | (ppm) | (g/t) | Number | (g/t) | (ppm) | (ppm) | (ppm) | (g/t)
162185 | 35 | 2,812 | 243 | 826 | 0.823 | 165019 | 44 | 2,660 | 421 | 907 | 0.626 | 165019 | 41 | 2,880 | 431 | 854 | 0.649
162188 | 47 | 2,125 | 292 | 848 | 0.907 | 165020 | 43 | 2,400 | 553 | 1,020 | 0.615 | 165020 | 42 | 2,640 | 559 | 997 | 0.647
162189 | 38 | 2,928 | 460 | 2,356 | 0.621 | 165021 | 39 | 2,660 | 751 | 2,610 | 0.587 | 165021 | 38 | 2,790 | 726 | 2,430 | 0.501
162190 | 70 | 8,298 | 498 | 993 | 0.653 | 165022 | 69 | 6,650 | 779 | 1,120 | 0.565 | 165022 | 67 | 6,690 | 791 | 1,060 | 0.490
162191 | 62 | 7,398 | 441 | 878 | 0.541 | 165023 | 58 | 7,540 | 868 | 1,030 | 0.505 | 165023 | 58 | 6,140 | 695 | 953 | 0.564
162192 | 85 | 8,821 | 724 | 951 | 0.770 | 165024 | 92 | 7,070 | 1,220 | 1,060 | 0.470 | 165024 | 79 | 6,850 | 1,100 | 1,000 | 0.510
162193 | 76 | 7,700 | 553 | 1,062 | 0.717 | 165025 | 73 | 8,260 | 1,250 | 1,230 | 0.533 | 165025 | 69 | 6,560 | 960 | 1,110 | 0.542
162194 | 57 | 5,689 | 791 | 523 | 0.452 | 165026 | 56 | 5,890 | 1,380 | 583 | 0.473 | 165026 | 52 | 5,530 | 1,340 | 569 | 0.365

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Statistical analysis of the three sets of results demonstrates that there is good correlation between the three labs, as exhibited by linear comparison plots in Figure 12.1 to 12.5, and in correlation coefficient matrices in Table 12.4 to 12.8. Silver values performed excellently, as did two of the three base metals. Zinc values from the Avino lab came back lower than at the two SGS labs, but displayed the same trend. As noted in Section 11.7, gold values from the Avino laboratory came back slightly higher than from the SGS labs. It should be noted that gold assays have a high intrinsic variance compared to other metals, hence the lower correlation numbers for those values, although they are well within normally expected variation. The variance and relative standard error (RSE) for each of the five metals are:
· silver: variance = 12.43 (g/t)2, RSE = 3.01%
· gold: variance = 0.011 (g/t)2, RSE = 9.16%
· lead: variance = 440,534 ppm2, RSE = 5.24%
· zinc: variance = 53,990 ppm2, RSE = 16.91%
· copper: variance = 6,088 ppm2, RSE = 3.79%

Avino Silver & Gold Mines Ltd. | 12-5 |
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Avino Silver & Gold Mines Ltd. | 12-6 |
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Avino Silver & Gold Mines Ltd. | 12-7 |
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Avino Silver & Gold Mines Ltd. | 12-8 |
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Table 12.4 Correlation Coefficient Matrix for Silver Verification Sample Assays

| Avino Ag (g/t) | SGSD Ag (g/t) | SGSV Ag (g/t)
Avino Ag (g/t) | 1 | - | -
SGSD Ag (g/t) | 0.96277345 | 1 | -
SGSV Ag (g/t) | 0.983831654 | 0.986131585 | 1

Note: SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory
Table 12.5 Correlation Coefficient Matrix for Gold Verification Sample Assays

| Avino Au (g/t) | SGSD Au (g/t) | SGSV Au (g/t)
Avino Au (g/t) | 1 | - | -
SGSD Au (g/t) | 0.611667722 | 1 | -
SGSV Au (g/t) | 0.807762905 | 0.702881055 | 1

Note: SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory

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Table 12.6 Correlation Coefficient Matrix for Lead Verification Sample Assays

| Avino Pb (ppm) | SGSD Pb (ppm) | SGSV Pb (ppm)
Avino Pb (ppm) | 1 | - | -
SGSD Pb (ppm) | 0.948028863 | 1 | -
SGSV Pb (ppm) | 0.989227101 | 0.968924309 | 1

Note: SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory
Table 12.7 Correlation Coefficient Matrix for Zinc Verification Sample Assays

| Avino Zn (ppm) | SGSD Zn (ppm) | SGSV Zn (ppm)
Avino Zn (ppm) | 1 | - | -
SGSD Zn (ppm) | 0.940107312 | 1 | -
SGSV Zn (ppm) | 0.984417227 | 0.955066252 | 1

Note: SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory
Table 12.8 Correlation Coefficient Matrix for Copper Verification Sample Assays

| Avino Cu (ppm) | SGSD Cu (ppm) | SGSV Cu (ppm)
Avino Cu (ppm) | 1 | - | -
SGSD Cu (ppm) | 0.998633837 | 1 | -
SGSV Cu (ppm) | 0.997829796 | 0.999129425 | 1

Note: SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory
The sampling exercise did provide 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 data set.

Avino Silver & Gold Mines Ltd. | 12-10 |
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12.4 TETRA TECH OPINION
The drill dataset has been produced within a brownfield property. That work has carried out by staff of the current issuer, which has owned the Property continuously since that time.
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.
While it has been difficult to verify the oxide tailings drill dataset, the fact pattern identified above suggests to Tetra Tech that it is reasonable to rely on the drill database to support the purpose of this technical report and a current mineral resource.

Avino Silver & Gold Mines Ltd. | 12-11 | 1151920100-REP-R0002-04
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13.0 | MINERAL PROCESSING AND METALLURGICAL TESTING

This section reviews and validates the metallurgical characterization and study which was generated by MMI (Slim 2005c), and reviews all the previous test reports and comments to establish the treatment process and the design criteria required for the recovery of silver and gold from the tailings resource.
13.1 A METALLURGICAL REVIEW
As mentioned above, the report by MMI (Slim 2005c) from July 2005 used the metallurgical results obtained and conclusions drawn by PRA (Huang 2003; Huang and Tan 2005) in their NI 43-101 document. The revised and final report by MMI was dated October 2005 (Slim 2005d).
This section will review the available historical information as well as a review of the more comprehensive test program conducted by MMI at PRA, in 2003 and particularly in 2004.
13.1.1 A HISTORICAL EVALUATION OF THE OXIDE TAILINGS
In 1990, CMMA sampled the oxide tailings dam and calculated the tonnage and overall grade as shown in Table 13.1. No metallurgical characterization tests were conducted on these samples. In their report (Slim 2005d), MMI concluded that the CMMA data constituted a reasonable estimation of this tailings material as a resource and reported the following tonnages and metal grades in Table 13.1. These values are based on their calculations (see Section 17.0.).
Table 13.1 Oxide Tailings Dam Data

Source | Tonnes (t) | Assays (g/t) | Bulk Density (g/cm3)
Ag | Au
CMMA (1990) | 2,092,178 | 93.0 | 0.50 | 1.605
Slim (2005d) | 2,091,074 | 95.5 | 0.53 | 1.605

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13.1.2 HISTORICAL METALLURGICAL TEST RESULTS
A number of metallurgical evaluations have been compleed on various samples from the oxide tailings dam, according to the MMI report (Slim 2003). Apparently, the first cyanidation tests were conducted during 1982 and this was followed by further tests performed over the years. The summarized cyanidation test results are shown in Table 13.2 taken from the MMI report (Slim 2003), while the reported flotation test results are given in Table 13.3. The results obtained from the test work program initiated by MMI in 2003 and 2004 were reported in the MMI technical report (Slim
2005d) and are included in Table 13.2 for purposes of comparison. The results will be discussed in greater detail later in this section.
Table 13.2 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

Source: Slim (2003)
Table 13.3 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 13.2 and Table 13.3, 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 PRA report from 2003 (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.

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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, since the test details of these reported cyanidation and flotation tests are unknown, any further discussion would be meaningless.
13.1.3 THE MM I TECHNICAL REPORT
MMI was commissioned by Avino 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 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 Regulatory Authorities (CSRA) 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 (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.
Tetra Tech carried out a review of the assaying methods and the metallurgical test work, as directed by MMI and conducted by PRA. This review details the processing techniques applied, comments on the test procedures used, and validates the results obtained. The test data was then used to develop the proposed process flowsheet and the plant design criteria to establish the treatment process for the economic recovery of silver and gold from the Avino Mines tailings resource.
Two sets of test programs were directed by MMI and conducted at PRA. 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 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.

Avino Silver & Gold Mines Ltd. | 13-3 | 1151920100-REP-R0002-04
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13.1.4 INT RODUCTION TO THE MM I 200 3 METALLURGICAL TEST PROGRAM
The 2003 test program consisted of the following tests as summarized in Table 13.4. 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 the silver and gold from the oxide tailings however, this treatment process option was revised when the results of the 2004 test program became available.
Table 13.4 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 2 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

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 that 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 receiving 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 the above 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 for the reviewing of process options for the recovery of silver and gold.
13.1.5 INTRODUCTION TO THE MM I 200 4 METALLURGICAL T EST PROG RAM
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 in order to attempt to improve the liberation of silver and gold from the associated minerals. A single column leach test was also performed.

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Additional work done included the establishing of 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 the following Table 13.5.
Table 13.5 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
SG | Standard pycnometer test | Composites A, B and C
Bulk Density | Standard volume displacement test | Composites A, B and C
Mineralogical | 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
Acid Base Accounting | 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).
13.1.6 EVALUATION AND REVIEW OF METALLURGICAL TESTS
Tetra Tech reviewed the metallurgical tests conducted according to the MMI 2004 test program. The process implications of the procedures and processes investigated, and the results obtained, are discussed in this section. The most promising process option will be selected as the recommended process treatment route based on the evaluation of the results obtained from the test program. This process option will then be evaluated with respect to capital and operating cost estimates.

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SAMPLE PREPARATION AND CHARACTERISTICS
Bagged samples carrying the MMI identification tags were prepared at Avino Mine 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.
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 Avino Mine without any indication of tampering, it is the sampling regime itself, which is considered to be deficient. Firstly, 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. Secondly, the samples that were taken by MMI only represent 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 and 27 m. These two major deficiencies were also recognized by the CSRA 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 CSRA, 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 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 13.6. The bi-nodal distribution is apparent.

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Table 13.6 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

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 Mines 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. This data sheet, titled 'Bloque de Reservas, Presa de Jales', together with the individual assay values recorded during the 1990 drilling program, are included in Appendix A.
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 the 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 rain water 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.

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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 13.7. 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.
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 value of 86.8 g/t silver 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 for 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 representing the tailings area (Composite B) will lower the overall average head grade of the tailings being treated.

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Table 13.7 Head Assays

Test No. | Composite A Assays (g/t) | Test No. | Composite B Assays (g/t)
Ag | Au | Ag | Au
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

Test No. | Composite C Assays (g/t) | Test No. | Column Composite A+B Assays (g/t)
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

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. The summary sheet is attached in Appendix A. 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.

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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 13.8.
Table 13.8 Bulk Density and Specific Gravity

Location/ Bench | Sample Identify | P80 Size (µm) | Bulk Density (g/cm3) | SG
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 | - | - | 1.653 | 2.723

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The bulk density values determined for the oxide tailings material were found to vary between 1.57 and 1.73 g/cm3 with an average of 1.653 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 2.723.
PARTICLE SIZE – ASSAY ANALYSIS
A particle size – fraction analysis was done on the same samples as were used for the bulk density and SG 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 149 to 210 µm, 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 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 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 to 210 µm size range with maximum mass distribution in the 105 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 to 149 µm size range as well as the minus 37 µm size range.
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 105 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 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.

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GRAVITY CONCENT RATION 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 13.9.
Table 13.9 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)
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 produced 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.

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The results of the flotation tests are summarized in Table 13.10. 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 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 be adsorbed onto 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 about 40%. This indicated that mineral surface alteration or oxidation, or occlusion of precious metals in gangue, was inhibiting 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.
The head assays obtained during the flotation testing stage gave inconsistent results. Table 13.10 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 13.3 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 of the processing options for the oxide tailings dam material.

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Table 13.10 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
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. Two leach tests only 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 13.11 below.

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Table 13.11 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.
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 13.2, and the averaged results from the present test program, are summarized below in Table 13.12, and will be discussed in the following section.

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Table 13.12 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 13.12. 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.
The MMI 2004 results, as claimed in the Technical Report and listed in Table 13.12 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 being 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 13.13.

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Table 13.13 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.
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.

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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.
E LECTROWINNING
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 feasibility level because the potential for savings in capital cost and operating cost needs to be investigated.
13.1.7 GRAVITY CONCENTRATION
REVIEW OF RESULTS
As indicated in Table 13.9, the upgrading for silver from the as-received oxide tailings was poor with a maximum concentrate grade of 125 g/t silver with 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.

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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.
13.1.8 FLOTATION
REVIEW OF RESULTS
The flotation results have been summarized in Table 13.10. 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 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. 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.
13.1.9 CYANIDE LEACHI NG
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 13.11. 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.

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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 13.14 below for purposes of comparison.
Table 13.14 Cyanide Leaching Parameters

| Head Grade | Extraction (%) | Reagent Consumption (kg/t) |  |  |
Sample Identify | Ag (g/t) | Au (g/t) | Ag (g/t) | Au (g/t) | NaCN | Lime | NaCN Concentration (g/l) | P80 (µm) | Remarks
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 about 68% for silver and 82% for gold. The reground material will give higher extractions at about 78% for silver and 87% for gold (see results in Table 13.13). Although the regrinding of tailings material is considered to be an expensive treatment method, cyanidation with and without regrinding as a treatment option will be reviewed and discussed in Sections 17.1.
13.1.1 0 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 13.13 for the results). Although the test was terminated after a total leaching time of 81 d, 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.

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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 13.13 will be used for developing the process design criteria.
13.1.1 1 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.
CONCLUSIONS
No other historical test work results were reported by MMI, nor are any alternative technology results known to have taken place, which tested the recovery of silver from the Avino Mine tailings material. The Merrill-Crowe process will therefore be the preferred technology to recover the silver and gold from pregnant leach solutions.

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14.0 MINERAL RESOURCE ESTIMATES

14.1 OXIDE TAILINGS
Tetra Tech has completed a recent NI 43-101 resource estimate for the oxide tailings at the Avino Mine. The effective date of this resource estimate is July 18, 2012. Previous resource estimates are disclosed in Slim (2005d) and are superseded by this estimate. Details of this resource estimate are provided as follows.
14.1.1 DATA SELECTION
The only comprehensive sampling data for the oxide tailings is that which was collected during the course of drilling and trenching in 1990. A subsequent 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 cannot be considered to constitute a representative random sampling of the oxide tailings for the following reasons:

| · | The positions of the sampling pits and trenches were not surveyed definitively, unlike either the drillhole collars from the 1994 campaign, or the sketch of the positions of the 2005 campaign.

| · | Full sections through the tailings were not obtained. Access was limited to the eastern portion of the oxide tailings. Thus the sampling is vertically and laterally biased to represent only the topmost 4 m of the oxide tailings and the easternmost area.

The trench sampling material (Z-series data) from the 1990 campaign is also likely to be non-representative. Samples were taken in the surficial zone in the vicinity of the middle bench wall of the tailings heap, where cycloning of the material to aid the construction of the wall. This will have produced a significantly coarser material than in the rest of the tailings deposit. Furthermore, these trench samplings also do not cover the full thickness of the upper (second) phase of the oxide tailings, so cannot be considered fully representative of material, even on a local scale.
Consequently, only the drillhole assay data from the 1990 campaign were used as it represents unbiased vertical profiles through the oxide tailings and has positional control.

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14.1.2 ESTIMATION UNITS
Previous experience in estimating historic tailings and dump deposits, suggests that the architecture of such deposits reflects the construction of the deposits over long periods of time. A tailings deposit will exhibit great lateral grade continuity, due to the nature of its construction as new material is added as a fluid slurry which is inclined to spread laterally. Vertical continuity will be less due to changes in the process stream (density, moisture content, chemistry etc). This creates a generally uniform grain-sized, low-grade mineral deposit. Uniformity, low-grade and lateral continuity are ideal characteristics for the accurate estimation of a mineral deposit.
The existence of a bench usually reflects a hiatus in deposition, with the efficiencies of the metallurgical processing operation being distinctly different during the different periods, as represented above and below this hiatus. Changes in ore type, feed grade and cut-off grade will contribute to different background grades and variability of the material deposited below and above such benches. Generally, younger and higher portions of a tailings deposit show lower grades due to technological improvements and lower cut-off grades that have occurred during later decades.
In the case of the Avino oxide tailings, a prominent bench separates the lower portion of the deposit (referred to as the “lower oxide bench” in various documents and as Phase 1.1 in this analysis) from the upper portion of the oxide tailings (referred as the “middle bench” or “upper oxide bench” and as Phase 1.2 in this analysis). Overlying the oxide tailings is a volume of sulphide tailings material (the “upper bench” or “sulphide bench” and as Phase 2 in this analysis) which lacks representative sampling data which would enable it to be estimated to the level where it could be called a mineral resource. Figure 14.1 to Figure 14.3 illustrate the Phase 1.1, Phase 1.2 and Phase 2 zones.

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Notes: Phase 2 Sulphide Tailings (brown unit)
Phase 1.2 Upper Oxide Tailings (blue unit)
Phase 1.1 Lower Oxide Tailings (yellow unit)

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Notes: Phase 2 Sulphide Tailings (brown unit)
Phase 1.2 Upper Oxide Tailings (blue unit)
Phase 1.1 Lower Oxide Tailings (yellow unit)

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Notes: Phase 2 Sulphide Tailings (brown unit)
Phase 1.2 Upper Oxide Tailings (blue unit)
Phase 1.1 Lower Oxide Tailings (yellow unit)

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14.1.3 DATABASE
Avino supplied all of the data for the resource estimate. This data was compiled from original cross sections, on which the assay data was printed. A digital version of the assay data was not provided. A manual check on the database was made to search for obvious errors, such as negative values and overlapping sample intervals, prior to importing into the Geovariance Isatis™ software and subsequent statistical treatments. The only error noted was one collar location which was corrected.
The drillhole dataset included only drillholes completed in the tailings from 1990. Slim (2005d) refers to trenches completed by Avino in 2004, however this data was not available to Tetra Tech. The 1990 dataset includes 28 drillholes and 6 trenches with a total meterage of 487 m. All drillholes and trenches intersect the oxide tailings (Phase 1.1 and 1.2), with a total of 461 assays of gold and 461 assays of silver. As described in Section 14.1.1, only the drillholes were used for estimation, for a total of drillhole meterage of 407.75 m and 383 assays of gold and 383 assays of silver (766 values in total).
14.1.4 SPECIFIC GRAVITY
Avino conducted bulk density measurements on 432 samples from 20 drillholes, and on the major lithology types. Based on these data, Slim (2005d) determined a global average specific gravity value of 1.605 for the oxide tailings. As no new specific gravity data representative of the entire taillings pile have been collected since this work, Tetra Tech has used the same specific gravity value of 1.605 for this estimation.
14.1.5 EXPLORATORY DATA ANALYSIS
Exploratory data analysis is the application of various statistical tools to explain the characteristics of the data set. In this case, the objective is to understand the population distribution of the grade elements through the use of such tools as histograms, descriptive statistics and probability plots.
CAPPING ANALYSIS
Cumulative probability plots, descriptive statistics and Parrish decile analysis were used to assess the need for capping of silver g/t and gold g/t assays. Typically, a step-change in the profile or a separation of the data points is present if there are different populations in the dataset. High value outliers will show up in the last few percent of a cumulative probability plot (typically in the 97 to 100% range) and the break in the probability distribution may be selected to set a capping level.
Figure 14.4 and Figure 14.5 show examples of the histogram and cumulative frequency plots for the raw uncapped silver g/t and gold g/t data respectively. There appears to be no specific break in the dataset and outliers within the last percentile are minimal, as would be anticipated for samples of relatively uniform-grade tailings. It was determined that capping of the data was not necessary for this dataset.

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COMPOSITES
Figure 14.4 shows a histogram of 1 m composites for the Phase 1.2, upper oxide tailings.

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Figure 14.5 shows a histogram of 1 m composites for the Phase 1.1, lower oxide tailings.

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VARIOGRAPHY
Samples used for variography are a function of geological interpretation. All composite data within the oxide tailings were used determining variograms. The data between silver and gold correlate well, however, variography was conducted separately. Variograms were established using all of the 1.0 m composite samples within the interpreted deposit.

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The variography was generated using Geovariance Isatis™. Downhole variograms, using a lag distance equal to the composite length, were created for each element group to determine the nugget, or C0.
Since the distance between drillholes is variable, between 30 m and 100 m, lag distances of 10 m were used in determining experimental variograms to capture the data along strike of the deposit.
Experimental and modelled variography was completed on both gold and silver. The variograms were respectively verified using turning bands simulation. The results for varoiography and associated simulation checks are presented below (Figure 14.6 to Figure 14.13).

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Note: Cell sizes are 5 m x 5 m x 5 m and units plan/section units are in meters. These are checks of the spatial patterning and negative simulated points are due to the skewed nature of the distribution and would be avoided in a full-scale simulation exercise.

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Note: Cell sizes are 5 m x 5 m x 5 m and units plan/section units are in meters. These are checks of the spatial patterning and negative simulated points are due to the skewed nature of the distribution and would be avoided in a full-scale simulation exercise.
VARIOGRAPHY PARAMETERS
No rotation was applied to the variography; the long range is horizontal and the short range is vertical, due to the strong horizontal layering present in the deposit. Table 14.1 summarizes the variography parameters used for OK interpolation for both silver and gold.
Table 14.1 Variography Parameters Gold and Silver in Phases 1.1 and 1.2

Oxide Phase and Metal | Search Anisotropy | X Range (m) | Y Range (m) | Z Range (m) | C 0 Structure | C 1 Structure
Phase 1.1 Au | No Rotation | 141 | 141 | 9 | 0.011 | 0.024
Phase 1.2 Au | No Rotation | 300 | 300 | 22 | 0.011 | 0.022
Phase 1.1 Ag | No Rotation | 155 | 155 | 23.4 | 98 | 149
Phase 1.2 Ag | No Rotation | 203 | 203 | 7.6 | 71 | 573

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14.1.6 BLOCK MODEL
A single block model was created to cover the Avino oxide tailings deposit. Table 14.2 lists the coordinates for the block model origins. A block size of 50 m x 50 m x 2 m was used for block model and resource estimate, as the average distance between sample drillholes approximates 50 m and the composite length is 1 m. This would provide a high degree of spatial sample support for the resultant grade estimate.
Table 14.2 Block Coordinates for the Avino Oxide Tailings Block Model

| Minimum | Maximum | Number
Easting | 569500 | 570250 | 15 Columns
Northing | 2712000 | 2712750 | 15 Rows
Elevation (m) | 2180 | 2240 | 30 Levels

Figure 14.14 and Figure 14.15 illustrate the block model in plan and in section view for the oxide tailings deposit. In Figure 14.14 the “X” symbols illustrate the location of drillholes in plan view. In Figure 14.15 the “X” symbols illustrate the location of individual assay samples in section view (with vertical exaggeration). The block model has been purposely expanded to the north and west to facilitate the inclusion the sulphide tailing bench in a future resource estimation.

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Note: Each square represents 50 m x 50 m.

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Notes: 1. Each square represents 50 m x 2 m.
2. The Z-axis is rescaled to show individual samples (shown as ‘X’) in relation to blocks.
The large number of unsampled blocks in the northwest and to the top of the block model are meant to cater for future sampling of the sulphide tailings (Phase 2).
14.1.7 INTERPOLATION PLAN
The interpolation method used for populating the block model was OK using a single pass. Table 14.3 lists a summary of the OK interpolation pass.
Table 14.3 Description of Interpolation Passes for the Oxide Tailings

Number of Composite Samples Used | Maximum Samples per Drillhole | Minimum Number of Drillholes | Number of Angular Sectors | Optimum Number of Samples per Sector
Minimum 5; Maximum 40 | 40 | 1 | 1 | 50

Search ellipses are created to encompass the maximum ranges of the variography to use in the estimation of the blocks. Table 14.4 lists the parameters for the search ellipse used for the interpolation of the oxide tailings block model.

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Table 14.4 Oxide Tailings Search Ellipse Parameters

Search Anisotropy | Rotation About Z (°) | Rotation About X (°) | Rotation About Z (°) | X Range (m) | Y Range (m) | Z Range (m) | Search Type
No Rotation | - | - | - | 200 | 200 | 30 | Ellipsoidal

RESULTS OF INTERPOLATION
If the blocks which are distant from information are masked, the slope of regression estimate is less than 0.5 and the average of the block estimates approaches the average of the assay composites. The poorly informed blocks are highlighted in red and excluded from the statistical calculations. Figure 14.16 and Figure 14.17 show histograms of silver in Phases 1.1 and 1.2, and Figure 14.18 and Figure 14.19 show histograms of gold in Phases 1.1 and 1.2. In these figures, one histogram shows all blocks and the other histogram highlights those blocks in red for which the slope of regression is less than 0.5, and therefore were excluded.

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Figure 14.16 Histogram of Silver in Phase 1.1

Note: | Histogram of blocks – red frequencies (left) denote blocks with slope of regression less than 0.5. Excluded samples statistics (left) are very similar to total samples statistics (right).

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Figure 14.17 Histogram of Silver in Phase 1.2

Note: | Histogram of blocks – red frequencies (right) denote blocks with slope of regression less than 0.5. Excluded samples statistics (right) are very similar to total samples statistics (left).

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Figure 14.18 Histogram of Gold in Phase 1.1

Note: | Histogram of blocks – red frequencies (right) denote blocks with slope of regression less than 0.5.

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Figure 14.19 Histogram of Gold in Phase 1.2

Note: | Histogram of blocks – red frequencies (left) denote blocks with slope of regression less than 0.5.

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14.1.8 MINERAL RESOURCE CLASSIFICATION
The block model and mineral resource for the Avino oxide tailings is classified as Inferred.
According to the CIM Definition Standards for Mineral Resources and Mineral Reserves (adopted by CIM Council on 27 November 2010), “An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.”
This Inferred Mineral Resource is based on the source data and plans prepared more than 20 years ago after the initial drilling campaign. These plans were examined at the mine and found to be of a professional standard. They provide useful support in estimation of the oxide tailings. In Tetra Tech’s opinion, the oxide tailings sampling data can be considered to be adequate for an Inferred Mineral Resource. The overall homogeneity of the material, horizontal continuity and relatively high confidence in the volume and tonnage, mitigate the uncertainty in the grade estimate.
14.1.9 MINERAL RESOURCE ESTIMATE
Tetra Tech has estimated an updated mineral resource estimate for the Avino oxide tailings in accordance with CIM Best Practices and disclosed in accordance with NI 43-101. The effective date of the Avino oxide tailings mineral resource estimate is May 29, 2012.
The oxide tailings are estimated to contain a 2.34 Mt Inferred Resource at a grade of 91.3 g/t silver and 0.54 g/t gold, at 50 g/t silver cut-off.
The mineral resource was estimated using the OK interpolation method on uncapped grades. No recoveries were applied to this estimate. Table 14.5 presents the Inferred Resource estimate is disclosed below at a range of cut-offs, ranging from 50 to 100 g/t silver.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 14-24 |

Table 14.5 Mineral Resource Summary for the Avino Oxide Tailings Deposit; Density Assumed at 1.605

Inferred Mineral Resource
Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (M troy oz)
Oxide Tailings Block 1.1 (Lower Bench) - Silver
50 | 762,375 | 99.47 | 2.44
55 | 762,375 | 99.47 | 2.44
60 | 762,375 | 99.47 | 2.44
65 | 762,375 | 99.47 | 2.44
70 | 762,375 | 99.47 | 2.44
75 | 746,325 | 100.04 | 2.40
80 | 722,250 | 100.77 | 2.34
85 | 690,150 | 101.61 | 2.25
90 | 633,975 | 102.80 | 2.10
95 | 529,650 | 104.92 | 1.79
100 | 449,40 0 | 106.33 | 1.54

Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (k troy oz)
Oxide Tailings Block 1.1 (Lower Bench) - Gold
0.10 | 762,375 | 0.53 | 12.99
0.15 | 762,375 | 0.53 | 12.99
0.20 | 762,375 | 0.53 | 12.99
0.25 | 762,375 | 0.53 | 12.99
0.30 | 762,375 | 0.53 | 12.99
0.35 | 762,375 | 0.53 | 12.99
0.40 | 714,225 | 0.54 | 12.40
0.45 | 666,075 | 0.55 | 11.78
0.50 | 441,375 | 0.59 | 8.37
0.55 | 296,925 | 0.62 | 5.92
0.60 | 176,550 | 0.66 | 3.75
0.65 | 72,225 | 0.73 | 1.70
0.70 | 40,125 | 0.76 | 0.98
0.75 | 16,050 | 0.83 | 0.43
0.80 | 16,050 | 0.83 | 0.43

table continues….

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Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (M troy oz)
Oxide Tailings Block 1.2 (Upper Bench) - Silver
50 | 1,500,675 | 87.48 | 4.22
55 | 1,500,675 | 87.48 | 4.22
60 | 1,500,675 | 87.48 | 4.22
65 | 1,484,625 | 87.73 | 4.19
70 | 1,364,250 | 89.44 | 3.92
75 | 1,243,875 | 91.06 | 3.64
80 | 1,003,125 | 94.23 | 3.04
85 | 714,225 | 98.83 | 2.27
90 | 521,625 | 103.12 | 1.73
95 | 401,250 | 106.38 | 1.37
100 | 288,90 0 | 110.22 | 1.02

Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (k troy oz)
Oxide Tailings Block 1.2 (Upper Bench) - Gold
0.10 | 1,500,675 | 0.55 | 26.54
0.15 | 1,500,675 | 0.55 | 26.54
0.20 | 1,500,675 | 0.55 | 26.54
0.25 | 1,500,675 | 0.55 | 26.54
0.30 | 1,500,675 | 0.55 | 26.54

Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (k troy oz)
0.35 | 1,500,675 | 0.55 | 26.54
0.40 | 1,452,525 | 0.56 | 26.15
0.45 | 1,324,125 | 0.57 | 24.27
0.50 | 1,019,175 | 0.59 | 19.33
0.55 | 601,875 | 0.64 | 12.38
0.60 | 417,300 | 0.68 | 9.12
0.65 | 280,875 | 0.70 | 6.32
0.70 | 112,350 | 0.74 | 2.67
0.75 | 56,175 | 0.77 | 1.39
0.80 | 8,025 | 0.81 | 0.21

table continues…

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Inferred Mineral Resource
Cut-off (g/t) | Tailings Tonnes (k) | Grade (g/t) | Metal (M tr oz)
Oxide Tailings Total - Silver
50 | 2,263,050 | 91.52 | 6.66
55 | 2,263,050 | 91.52 | 6.66
60 | 2,263,050 | 91.52 | 6.66
65 | 2,247,0 0 0 | 91.71 | 6.63
70 | 2,126,625 | 93.04 | 6.36
75 | 1,990,20 0 | 94.43 | 6.04
80 | 1,725,375 | 96.97 | 5.38
85 | 1,404,375 | 100.20 | 4.52
90 | 1,155,60 0 | 102.94 | 3.82
95 | 930,90 0 | 105.55 | 3.16
100 | 738,300 | 107.85 | 2.56

Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (k troy oz)
Oxide Tailings Total - Gold
0.10 | 2,263,050 | 0.54 | 39.53
0.15 | 2,263,050 | 0.54 | 39.53
0.20 | 2,263,050 | 0.54 | 39.53
0.25 | 2,263,050 | 0.54 | 39.53
0.30 | 2,263,050 | 0.54 | 39.53
0.35 | 2,263,050 | 0.54 | 39.53
0.40 | 2,166,750 | 0.55 | 38.55
0.45 | 1,990,20 0 | 0.56 | 36.04
0.50 | 1,460,550 | 0.59 | 27.71

Cut-off (g/t) | Tailings Tonnes (t) | Grade (g/t) | Metal (k troy oz)
0.55 | 898,80 0 | 0.63 | 18.30
0.60 | 593,850 | 0.67 | 12.87
0.65 | 353,10 0 | 0.71 | 8.02
0.70 | 152,475 | 0.75 | 3.65
0.75 | 72,225 | 0.78 | 1.82
0.80 | 24,075 | 0.82 | 0.64

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GRADE - TONNAGE CURVES
Figure 14.20 and Figure 14.21 illustrate the mean grade and tonnage curves for silver as a function of the silver cut-off grade for the Avino oxide tailings.
Figure 14.20 Grade-cut-off Curve for Silver in the Oxide Tailings (Silver g/t)

Notes: | Silver OK 1.1 - OK silver in lower portion of oxide tailings Histogram Model Silver 1.1 - model constructed using assay composites, variogram and change of support for silver in lower portion of oxide tailings Silver OK 1.2- OK silver in upper portion of oxide tailings Histogram Model Silver 1.2 - model constructed using assay composites, variogram and change of support for silver in upper portion of oxide tailings Silver 1.1 ID2 - inverse distance squared (ID2) estimates for silver in lower portion of oxide tailings Silver 1.2 ID2 – ID2 estimates for silver in upper portion of oxide tailings

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 14-28 |

Figure 14.21 Grade-tonnage Curve for Silver in the Oxide Tailings Inferred Resource Estimate (Silver g/t)

Notes: | Silver OK 1.1 - OK silver in lower portion of oxide tailings Histogram Model Silver 1.1 - model constructed using assay composites, variogram and change of support for silver in lower portion of oxide tailings Silver OK 1.2- OK silver in upper portion of oxide tailings Histogram Model Silver 1.2 - model constructed using assay composites, variogram and change of support for silver in upper portion of oxide tailings Silver 1.1 ID2 – ID2 estimates for silver in lower portion of oxide tailings Silver 1.2 ID2 – ID2 estimates for silver in upper portion of oxide tailings

The Figure 14.22 and Figure 14.23 illustrate the mean grade and tonnage curves for gold as a function of the gold cut-off grade for the Avino oxide tailings.

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 14-29 |

Figure 14.22 Grade-cut-off Curve for Silver in the Oxide Tailings (Gold g/t)

Notes: | Gold OK 1.1 - OK gold in lower portion of oxide tailings Histogram Model Gold 1.1 - model constructed using assay composites, variogram and change of support for gold in lower portion of oxide tailings Gold OK 1.2 - OK gold in upper portion of oxide tailings Histogram Model Gold 1.2 - model constructed using assay composites, variogram and change of support for gold in upper portion of oxide tailings Gold 1.1 ID2 – ID2 etimates for gold in lower portion of oxide tailings Gold 1.2 ID2 – ID2 estimates for gold in upper portion of oxide tailings

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 14-30 |

Figure 14.23 Grade-Tonnage Curve for Silver in the Oxide Tailings Inferred Resource Estimate (Gold g/t)

Notes: | Gold OK 1.1 - OK gold in lower portion of oxide tailings Histogram Model Gold 1.1 - model constructed using assay composites, variogram and change of support for gold in lower portion of oxide tailings Gold OK 1.2 - OK Gold in upper portion of oxide tailings Histogram Model Gold 1.2 - model constructed using assay composites, variogram and change of support for gold in upper portion of oxide tailings Gold 1.1 ID2 – ID2 estimates for gold in lower portion of oxide tailings Gold 1.2 ID2 – ID2 estimates for gold in upper portion of oxide tailings

14.1.1 0 BLOCK MODEL VALIDATION
LOGNORMAL ESTIMATION
As part of the block model validation, a three-parameter lognormal estimate was also completed and compared with the OK estimation. Figure 14.24 shows the distribution of 1 m composite grades using the lognormal estimation. Figure 14.25 uses an additive constant which raises the skewness of the assay data to zero.

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Figure 14.24 Distribution of Grades With a Lognormal Estimation

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Figure 14.25 Distribution of Grades With a Lognormal Interpolation Plus Additive Constant
Table 14.6 Lognormal Estimate Statistics

| Estimate | Lower | Uppper | 1-alpha | Additive Constant
Silver
Mean | 4.94073 | 4.92301 | 4.95844 | 0.95 | 47
Standard Deviation | 0.19542 | 0.18341 | 0.20913 | 0.95 | -
Mean Ag g/t | 95.56807 | 92.74608 | 98.51945 | - | -
Gold
Mean | -0.27192 | -0.29162 | -0.25222 | 0.95 | 0.25
Standard Deviation | 0.21725 | 0.20390 | 0.23249 | 0.95 | -
Mean Ag g/t | 0.53011 | 0.51275 | 0.54836 | - | -

Translating to real (g/t) space, 90% of the time, the following summarizes the grades estimated using the lognormal estimation:

· | 92.7 < Ag g/t < 98.5

· | 0.51 < Au g/t < 0.55.

This is globally similar to what was obtained by the OK interpolation method and indicates the estimate is sound.

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INTERPOLATION VALIDATION
A comparison was made of the estimated metal grades from the OK and lognormal estimations as a further validation of the resource estimation. The comparison between the values for each metal is shown in Table 14.7. Comparative results are within 4% for silver and 2% for gold, and thus the estimation is valid.
Table 14.7 Comparison of OK and Three-parameter Lognormal Estimations

Estimation Method | Ag (g/t) | Au (g/t)
OK | 91.3 | 0.54
Three-parameter Lognormal | 95.6 | 0.53

14.2 SULPHIDE TAILINGS
There is no current resource estimate for the sulphide tailings.
Some sampling was carried out in 2005 by means of hand-dug pits on the “upper bench” of sulphide tailings. Regrettably, this information does not provide an unbiased sample, being restricted to the top surface of the deposit and consequently no estimation can be carried out on the sulphide tailings. The volume of the deposit can be estimated with at least the similar efficeincy to the estimate of the oxide tailings but the recoverable metal remains an unknown quantity. At best, the sulphide tailings are a considered a target for further exploration and results are disclosed as a range of tonnes and grades (Table 14.8).
The potential quantity and grade of the sulphide tailings is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration (e.g. drilling and sampling) will result in the target (i.e. sulphide tailings) being delineated as a mineral resource.
Table 14.8 Target Resource for Further Exploration within Sulphide Tailings

| Tonnes (t) | Silver (g/t) | Gold (g/t) | Silver (oz) | Gold (oz)
Lower Range | 2,800,0 0 0 | 40.0 | 0.3 | 3,600,0 0 0 | 27,00 0
Upper Range | 3,200,0 0 0 | 100.0 | 0.6 | 10,300,000 | 61,70 0

No mineral resource for the sulphide tailings is disclosed in this technical report.

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14.3 OPEN PIT
There is no current mineral resource or mineral reserve estimate for the open pit portion of the Property.
14.4 UNDERGROUND MINE
There is no current mineral resource estimate for the underground mine portion of the Property.
14.5 SAN GONZALO VEIN
There is no current mineral resource or mineral reserve estimate for the San Gonzalo vein portion of the Property.
A mineral resource was estimated on the San Gonzalo vein, and disclosed in Gunning (2009). This is the most recent estimate completed on the vein, but there has been subsequent development of a ramp, bulk sampling, some mining production, channel sampling, and additional delineation drilling along the vein. Together, these developments are likely to have effected a material change in the 2009 resource. Tetra Tech is of the opinion that the 2009 resource can no longer be considered current.
A summary of the subsequent development is provided below.
14.5.1 201 1 BULK SAMPLE
In 2011, Avino completed an approximately 10,000 t bulk sample program on the San Gonzalo deposit. Results from this bulk sample are summarized in Table 14.9 and discussed further in Section 9.2.4.
Table 14.9 San Gonzalo Bulk Sample

| Weight (t) | Assay (g/t) | Contents (kg) | Contents (oz) | Recovery (%)
Au | Ag | Au | Ag | Au | Ag | Au | Ag
Feed | 10,519* | 0.9 | 261 | 9.35 | 2,746.75 | 300.9 | 88,311.70 | 100 | 100
Concentrate | 232 | 23.8* | 8,998* | 5.52 | 2,087.53 | 177.5 | 67,116.90 | 59 | 76
Tail | 10,287 | 0.4 | 64 | 3.83 | 659.22 | 123.4 | 21,194.80 | 41 | 24

Note: | *These figures have been reconciled to the weighed feed tonnage and the final concentrate assays. They also have been rounded for clarity.

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14.5.2 CHANNEL SAMPLING
Channel sampling of the San Gonzalo vein is ongoing, and to date approximately 170 m of sampling has been conducted with approximately 70 assay samples collected. Results from these samples are provided in Table 9.4 of Section 9.2.4.
14.5.3 ADDITIONAL DELINEATION DRILLI NG
In 2011, 18 additional delineation drillholes with a total meterage of greater than 3,600 m were completed on the San Gonzalo vein. This drilling is described in further detail in Section 10.2.2, and assay results from these holes are provided in Appendix A. As a result of this recent drilling, an updated geological model is considered necessary for re-estimation of the San Gonzalo vein.
14.5.4 UNDERGROUND DEVELOPMENT
Underground development on the San Gonzalo vein subsequent to the Gunning (2009) report is summarized in Section 16.2. This development includes approximately 3,500 m of mine development including a haulage ramp, crosscuts, drifts on the vein, and raises. Reported tonnage extracted during this development is approximately 34,500 t, including the approximately 10,000 t bulk sample.
These activities began in January 2010 and the development included:

· | a main haulage decline to Level 2 which intersected the vein

· | drifting and sampling of the vein on this level

· | extraction of the 10,000 t bulk sample

· | a small decline to Level 1 for improved ventilation and escape route

· | advance of the haulage ramp past Level 4 and proceeding to Level 5, with presumed drifting and sampling of the vein on Levels 3 and 4.

The nature and amount of mineralized material removed from the San Gonzalo vein during the course of this development is not easily assessed at this point, but Tetra Tech believes that it is likely to constitute a material change from the 2009 resource.

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15.0 MINERAL RESERVE ESTIMATES

Because the mineral resource is classified as “Inferred”, no mining criteria were applied to convert the resource to reserves.

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16.0 MINING METHODS

16.1 PR E VI O U S MININ G METHOD S, OXID E TA I L I N G S, 1976-2011
Between 1976 and 1986, oxide material was extracted using open pit methods and produced concentrate containing 3.7 Moz of silver and 12,500 oz of gold. Record keeping improved subsequent to 1987 and it was reported that between 1987 and 1992, 1.14 Mt of material was treated and recovered an additional 4.2 Moz of silver and 19,100 oz of gold. In 1992, an engineering firm (Luismin) was contracted to review the geology and mine reserves at the Avino Mine and surrounding potential areas. Sulphide material was extracted once underground activities began. Extensive underground sampling and some geophysical surveys were undertaken. A ramp was used to access underground operations on the Avino vein and a copper concentrate was recovered by flotation with silver and gold credit received from the copper smelter. Between 1993 and 2001, a total of 2.9 Mt of sulphide material was treated containing 7.9 Moz of silver, 68,000 oz of gold, and 23.7 Mlb of copper. The underground workings have been developed over 1,200 m on strike and to 400 m depth. CMMA demonstrated the continuity of strike by drifting when three of the old mine workings were connected during a rehabilitation and sampling program.
Mining operations ceased in November 2001 due to low silver prices and the closure of the copper smelter. As metals prices became favourable once again, and through exploration and development of new zones, Avino resumed activities at the Property in 2010.
16.2 PR E VI O U S MININ G, SA N GO N ZA L O, 2009-2012
Activities in the San Gonzalo zone began in January 2010. DMG, a mining contractor, was engaged to provide this service. The original scope of work was to:

· | drive the main haulage decline to Level 2 and to intersect the vein

· | drift and sample to the east and the west on the vein

· | determine the extent of the mineralized zones

· | extract the 10,000 t bulk sample for testing as per the recommendations of the Orequest report (Gunning 2009).

A smaller decline to Level 1 was also commissioned for improved ventilation and to supply another escape route once the two levels were connected by raises from Level 2 to Level 1. This scope of work was extended with the successful completion of the bulk sample program and excavation continued with the aim of developing San Gonzalo to a state whereby it could provide mill feed at the rate of 250 t/d on a sustained basis. To date, the haulage ramp has advanced past Level 4 and is proceeding to the Level 5.

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Approximately 3,500 m of mine development has been achieved to date, including the haulage ramp, crosscuts, drifts on the vein and the raises for Levels 1, 2 and 3. Extracted tonnage during this development is reported to have been approximately 34,500 t, including the bulk sample material. Processing of this material began in late November 2010 in the newly refurbished 250 t/d bulk flotation circuit. Circuit tests were performed initially with development material to ensure the circuit was operating satisfactorily before the bulk sample test with material from the stopes began in January of 2011. The bulk sample test continued until early April when the target of 10,000 t was achieved. Processing of bulk sample material was completed in May 2011. The majority of the concentrate produced during the bulk sample test was sold and the assays from the concentrate sale were used to reconcile the mill balance as reported following the verification of the bulk sampling results. All the remaining concentrate produced from the development material was shipped and sold early this year. Settlement on the remainder of the concentrate is pending as of this date.
16.3 PROPOSED MINING METHODS
The tailings mineral resource will be mined through surfaces methods. A truck/shovel arrangement is described in the following sections.
16.4 SCHEDULE
The plant will operate on a 24 h, 365 d basis with an overall utilization of 90%. For an oxide tailings treatment rate of 500,050 t/a, this would be equivalent to a throughput rate of 1,370 t/d or 63.4 t/h. This will give an overall project duration of 4.7 years. This five-year period will exclude the time required for site establishment and remediation of the heap after the leaching process has been completed.
Initially the oxide tailings will be processed without having to move the sulphide tailings which covers a portion of it. Therefore, the stripping ratio (waste/oxide) in Year 1 is 0.0. During Years 2 to 4, a stripping ratio of 1.0 is realized as the sulphide tailings need to be removed in preparation for removal of oxide tailings in the next year. In Year 5 a stripping ratio of 1.5 is observed due to the geometry of sulphide tailings removal at the end of the Project life. Note that not all of the sulphide tailings need to be removed to gain access to the oxide tailings. The mining production schedule is shown in Table 16.1.

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Table 16.1 Mining Production Schedule

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total
Waste Production (t) | - | 500,050 | 500,050 | 500,050 | 500,050 | 2,000,20 0
Oxide Production (t) | 500,050 | 500,050 | 500,050 | 500,050 | 339,0 0 0 | 2,340,0 0 0
Production (t) | 500,050 | 1,000,10 0 | 1,000,10 0 | 1,000,10 0 | 839,850 | 4,340,20 0
Stripping Ratio | - | 1.0 | 1.0 | 1.0 | 1.5 | 0.9

16.5 EQUIPMENT
The mining equipment will operate on a different schedule than the plant. Loading operations will be conducted 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 3, 20 t over-the-road dump trucks 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.
Because an old tailings dump is being mined, there are no blasting considerations, no pit will be excavated, and no crushing will be performed by the mining group.
16.6 MODIFYING SITE CONSIDERATIONS
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 and Gold Mines Ltd. Technical Report on the Avino Property | 16-3 |

17.0 RECOVERY METHODS

17.1 INTRODUCTION
It is assumed that only the approximately 2 Mt of oxide tailings will be reclaimed from the tailings dam for retreatment for the recovery of silver and gold. The approximately 3 Mt of sulphide material will be moved from its present location and dumped at a new site near the proposed site of the heap leach plant. The sulphide tailings will therefore be loaded separately into trucks and dumped in a suitable, newly created sulphide tailings deposit facility. Although it has been estimated that there are approximately 3 Mt of sulphide tailings, it is not certain how much of this material will be moved to the new sulphide tailings dam site. Some of the sulphide tailings could be used in the building of the heap leach pad and its facilities, but no quantities have been estimated at this stage.
17.1.1 POTENTIAL REVENUE ESTIMATION
PREAMBLE
A very preliminary economic view has been taken in eliminating the process options discussed in Section 13.3. The only purpose for conducting this revenue estimate exercise is to determine order-of-magnitude costs, which can be compared in order to eliminate the obviously unrealistic process options. The only potential process options that will be developed are those selected from the discussion in Section 13.3. The inherent value of the precious metals in the oxide tailings material of the Avino Mine tailings dam will now be calculated using the three process treatment options discussed previously. These treatment options are:

· | cyanidation of the oxide tailings material without regrind

· | cyanidation of the tailings with regrind

· | heap leaching of the tailings without regrind.

Table 17.1 compares the estimated potential revenue of the three process treatment options for the oxide tailings only. The sulphide tailings are discussed in a later section in this report. Note that all references to costs are in US dollars.

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Table 17.1 Inherent Value of Oxide Tailings

| Process Treatment Options | Remarks
Cyanidation As-received | Cyanidation Reground | Heap Leach As-received
Tailings Dam (Mt) | 2,340,0 0 0 | 2,340,0 0 0 | 2,340,0 0 0 | Section 14.2.3
Available for Treatment (%) | 100 | 100 | 100 | -
Head Grade (g/t Ag) | 91.30 | 91.30 | 91.30 | Section 14.2.3
Head Grade (g/t Au) | 0.54 | 0.54 | 0.54 | Section 14.2.3
Metal Available (kg Ag) | 213,642.0 0 | 213,642.0 0 | 213,642.0 0 | -
Metal Available (kg Au) | 1,263.60 | 1,263.60 | 1,263.60 | -
Extraction (% Ag) | 67.8 | 78.2 | 73.0 | Data ex Tables 13/14
Extraction (% Au) | 81.8 | 87.0 | 78.9 | Data ex Tables 13/14
Precipitation (% Ag and Au) | 96 | 96 | 96 | Assumed value
Metal Recovered (kg Ag) | 139,055.30 | 160,385.32 | 149,720.31 | -
Metal Recovered (kg Au) | 992.28 | 1,055.36 | 957.10 | -
Metal Recovered (oz Ag) | 4,470,767.11 | 5,156,548.50 | 4,813,657.80 | 1 kg = 32.151 oz
Metal recovered (oz Au) | 31,902.79 | 33,930.84 | 30,771.76 | -
Silver Price ($/oz) | 20.38 | 20.38 | 20.38 | -
Gold Price ($/oz) | 1,256 | 1,256 | 1,256 | -
Silver Income Potential ($) | 91,114,234 | 105,090,458 | 98,102,346 | -
Gold Income Potential ($) | 40,069,902 | 42,617,133 | 38,649,331 | -
Total Potential Income ($) | 131,184,136 | 147,707,591 | 136,751,677 | -

CAPITAL AND OPERATING COST ESTIMATES
The estimated capital and operating costs of a standard layout cyanide leach plant will now be compared with the estimated capital and operating cost of a heap leach plant. A throughput of 1,370 t/d will be assumed for each option based on a four- year treatment period. These basic treatment costs specifically do not include the reclamation and relocation of the sulphide tailings dam material. The costs of the treatment options are summarized in Table 17.2. These estimated capital and operating costs are based on data from 2010 Mine & Mill Equipment Costs: An Estimator's Guide (Infomine 2010).
Table 17.2 Summary of Cost Estimates – Four-Year Treatment

Process Option | Capital Cost (US$M) | Operating Cost (US$/t)
Cyanide Leach – no regrind | 37.93 | 11.18
Cyanide Leach – with regrind | 40.3 | 15.14
Heap Leach – Estimate I | 17.07 | 5.03
Heap Leach – Estimate II | 19.16 | 6.81

Avino Silver and Gold Mines Ltd. Technical Report on the Avino Property | 17-2 |

The cost estimate figures in Table 17.2 indicate that the estimated cost of a cyanide leach plant, without or with a regrind circuit, amounts to almost 40% of the total potential income for the metallurgical parameters while the amount for the heap leach plant will be less than 20% of the total potential cost. These numbers are as determined by the Slim (2005d) and for the metal prices as quoted in Table 17.1. Both cyanidation process treatment options will therefore not be pursued any further. It should also be noted that this estimate is based on a treatment rate of 1,370 t/d.
HEAP LEACH PLANT
The capital cost for a 1,370 t/d (500,000 t/a) heap leach plant has been estimated to be between $17 million and $19 million with an estimated operating cost of between about $5/t and $7/t treated based on information available on similar operations. On the assumption that these numbers are reasonable estimates, it is seen that the potential net revenue is about $85 million over the four-year period of operation plus the time required for the Project to be established and for the Project closure.
HEAP LEACH LAYOUT
The heap layout, heap lift height, and number of lifts have been assumed for the purposes of this report and are detailed in Section 17.5. 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. This proposed height for the heap would require geotechnical verification. Despite the 26 m height proposed for the heap, this 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 most suitable surface 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.
17.2 SUMMARY
The unit processes selected were based on the results of metallurgical testing reported by Slim (2005d), along with resources set out by Avino.
The treatment plant will consist of agglomeration and heap leaching, followed by a Merrill-Crowe process to recover silver and gold from pregnant solution.
The simplified flowsheet is shown in Figure 17.1. The detailed process flow diagrams are located in Appendix C.

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Figure 17.1 Simplified Process Flowsheet

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17.3 MAJOR DESIGN CRITERIA
The heap leach has been designed to process 0.5 Mt of oxide tailings per year. This would be equivalent to a throughput rate of 1,370 t/d and equivalent to 63.4 t/h at 90% running time.
The major criteria used in the design are outlined in Table 17.3. The complete design criteria are included in Appendix D.
Table 17.3 Major Design Criteria

Criteria | Unit | Number
Operating Year | d | 365
Overall Plant Availability | % | 90
Annual Processing Rate | t | 500,0 0 0
Daily Processing Rate | t/d | 1,370
Tailing Bulk Density | t/m3 | 1.605
Agglomerated Tailing Bulk Density | t/m3 | 1.2407
Agglomerator Feed Size, P80 Passing | µm | 225
Agglomerator 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 are based on test work results obtained by PRA but directed by MMI, using the results from Huang (2005) and Slim (2005d).
17.4 PLANT DESIGN
17.4.1 OPERATING SCHEDULE AND AVAILABILITY
The plant will be operated on a 24 h/d, 365 d/a basis, with an overall utilization of 90%.
17.5 PROCESS PLANT DESCRI PTION
The following is a conceptual description of the reprocessing of the tailings material using the heap leach method.
The plant will operate on a 24 h, 365 d basis with an overall utilization of 90%. For an oxide tailings treatment rate of 0.5 Mt/a, this would be equivalent to a throughput rate of 1,370 t/d or 63.4 t/h. This will give an overall project duration of 4.7 years. This five-year period will exclude the time required for site establishment and remediation of the heap after the leaching process has been completed.

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The mining equipment will operate on a different schedule than the plant. Loading operations will be conducted 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 3, 20 t over-the-road dump trucks 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.
A dribble chute will feed the tailings from the hopper onto a conveyor belt. Cement and lime will be added to the tailings under controlled addition rate conditions. Although some operations add solid dry, flake cyanide to the agglomerator feed material, this option will not be exercised in this case. The 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 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 about 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. Cyanide will be diluted to 20% strength and then injected into the solution distribution system going to the agglomerator, the heap, and precipitation filter press.
The agglomerator will be a drum type unit with a diameter of 1.8 m and a length of 4.0 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 on to 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 spraying of the agglomerates with cyanide-bearing leach solution commences.
There will be one leach pad only. The leach heap dimensions will be an estimated 243 m wide and 282 m long and includes a surrounding berm of 6.5 m in width. There will be four lifts over the four-year treatment period. Each lift will be 6.5 m high giving the heap an overall height of 26 m.

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The heap leach process will operate with three solution ponds. 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 about 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 pi p es and drips for an ov e rall s o lution feeding rate of a bout 7.3 L/h/m2 (0.002 L/s/m2). A total leaching duration of 130 d will be allowed, followed by an ash/rinse cycle of seven days resulting in a total loading, leaching and rinsing cycle of 142 d.
The overall life of a pad on a per lift basis is 365 d. The total calculated amount of area of pad under irrigation per day will be 22,413 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 the 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 in the effluent treatment section prior to discharge in the river. Water drawn 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 towers 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 about 2 to 5 min for completion. The reaction should be complete by the time the now-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 for leaching.

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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 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 calculated on the basis of about 2 mg/L of solution and will be added to improve the precipitation efficiency. About 50% of the total required amount of the lead nitrate will be added to the pregnant solution prior to the clarifier filter in order to precipitate detrimental impurities. These impurities will then be removed in 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.
The silver-rich precipitate which contains the gold and excess zinc flows to the acid vat tank where the excess zinc can be dissolved by adding adequate amount of sulphuric acid to the system and 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 a smelting furnace for doré production. It is anticipated that the total metal precipitate production per day will be about 461 kg/d (dry basis). The silver and gold content will be about 20% or 92.2 kg (silver and gold).

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18.0 PROJECT INFRASTRUCTURE

Infrastructure is disclosed in Sections 5.0 and 17.0.

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19.0 MARKET STUDIES AND CONTRACTS

This section is not applicable.

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20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

20.1 ENVIRONMENTAL STUDIES
To Tetra Tech’s knowledge, no environmental baseline studies specific to the tailings facility have been completed, therefore they are not reflected in Section 20.0. The Property has been previously disturbed by historical operations (Section 6.0).
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 included 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 amphibious 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 2008a) (Table 20.1 to Table 20.4).
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
Squirrel * | Sciurus aberti | Resident. Endemic. Special Protection
Mouse | Neotoma albigula | Resident. Endemic. Threatened.
Desert Fox | Vulpex velox | Resident. Endemic. Threatened.
Badger | Taxidea Taxus | Resident. Threatened.

Notes: *No English Common Name translation
Source: Ministry of Environment and Natural Resources (2008a)

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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-2001 or CITES
Heron | Ardea herodias | Migratory. Special protection.
Cerceta aliazul | Anas discors | Migratory. Special protection. Hunting.
Black eagle | Buteogallus anthracinus | Resident. Special Protection. Indicator.
Red tailed eagle | Buteo jamaicensis | Resident. Indicator.
Owl with horns | Bubo virginianus | Resident. Threatened.
Cernicalo | Falco sparverius | Resident. Indicator.
Quail with flakes | Callipepla squamata | Resident. Endemic. Self-consume.
Blue mulato | Melanotis caerulescens | Resident. Endemic. Threatened. Esthetic.
Northern cenzontle | Mimus polyglotos | Resident. Esthetic.
Cuitlacoche with curved beak | Toxostoma curvirostre | Resident. Esthetic.
Gray capulinero | Ptilogonys cinereus | Resident. Endemic.
Golden vireo | Vireo hypochryseus | Resident. Endemic.
Desert cardinal | Cardinalis sinuatus | Resident. Esthetic.
Colorin seven colours | Passerina ciris | Migratory. Esthetic.

Source: Ministry of Environment and Natural Resources (2008a)
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
Black iguana | Ctenosaura pectinata | Resident. Endemic. Threatened.
Chivilla * | Xantusia bolsonae | Resident. Endemic. Threatened.
Lizard * | Sceloporus horridus | Resident. Endemic.
Water snake | Nerodia melanogaster | Resident. Endemic. Threatened.
Chirrionera snake | Pituophis deppei | Resident. Endemic. Threatened.
Water snake | Thamnophis eques | Resident. Threatened.
Rattle snake | Crotalus atrox | Resident. Special protection.
Rattle snake | Crotalus molossus | Resident. Special protection.
Water turtle | Chrysemys scripta | Resident. Special protection.

Notes: *No English common name translation
Source: Ministry of Environment and Natural Resources (2008a)

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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
Ajolote (Mexican mole lizard) | Ambystoma rosaceum | Resident. Endemic. Special protection.
Toad * | Bufo mazatlensis | Resident. Endemic.
Frog * | Rana pustulosa | Resident. Endemic. Special protection.

Notes: *No English common name translation
Source: Ministry of Environment and Natural Resources (2008a)
Tetra Tech is not aware of any confirmed environmental complaints from the Property. An alleging complaint was received in 2003 stating that contaminated water was leaving the Property. An investigation determined the source of the complaint was a third party off-site (Slim 2005d – Appendix H).
20.2 ENVIRONMENTAL PERMITTING
Permits and authorizations required for the operation of the Project will include:

· | an operating permit

· | an application for surface tenures

· | a waste water discharge registration

· | a hazardous waste generator's registration.

An EIA or Evaluación de Impacto Amb i ental 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.
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 San Gonzalo Mine where the tailings are located, as described above. However; changes of the operating methods may be required if the 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 (Declaración de Impacto Ambiental) and EIS (Manifestación de Impacto Ambiental) will be mandatory.

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20.2.2 CU R R E N T PERMIT S FO R TH E SA N GO N ZAL O MI N E (ADJ A C E N T)
In order to obtain an authorization regarding environmental impact matters, Avino must prepare an EIS or “Manifestación de Impacto Ambiental”. Avino prepared an EIS, known as “Manifestación de Impacto Ambiental, modalidad Particular” (MIA-P) for the San Gonzalo Mine and submitted it to the Ministry 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 c o nditional authorization has been 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 Ministry in writing before commencing changes.
Aside from complying with all prevention, protection, control and mitigation measures laid out in the proposed MIA-P, the company must develop an Environmental Quality Monitoring Program or ‘Progr a m a d e Segu i miento d e la Calidad Ambiental’. The proposed monitoring program must be presented to the Ministry within six months of receiving the conditional authorizatio n. Once the Ministry 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 Ministry for “Change of Land Use” as well as the corresponding “Change of Use for Forested Ground to Mining Infrastructure”.
It is important to note that the current conditional a u thorization can be cancelled for many reasons, one of them includes improper disposal of liquid/solid waste (hazardous or non-hazardous).

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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 Standard 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 for the San Gonzalo Mine, 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 waste water 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 of 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-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, that establishes protection measures for forestry grounds.

In addition, other Official Mexican Standards regarding change in land use and mining must be followed and may include:

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| · | 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 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 establishes environmental protection specifications for mining exploration activities in dry and temperate climate regions

| · | Official Mexican Standard NOM-141-SEMARNAT-2003 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:

| - | 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

| · | General Law of Ecological Balance and Environmental Protection (LGEEPA)

| · | Official Mexican Standard NOM-023-STPS-2003, which establishes standards for work in mines and health and safety conditions at these sites

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| · | 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, chromium.

20.3 ENVIRONMENTAL MONITORING AND REPORTING
The conditional authoriz a tion sets out the requirements for environmental monitoring and reporting, on a semi-annual basis, for a minimum of five years. Details were provided in the previous section.
20.4 ENVIRONMENTAL MANAGEMENT
Brownfields or site recycling as it is called within the Mexican environmental legislation, looks at the environmental liabilities (pasivos ambientales) as per 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. There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings may be required 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.

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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 are not known at this stage.
The absence of complete sulphide tailings metallurgical information makes identification of 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 be 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 preliminary economic assessment, it will be assumed that the sulphide tailings will be moved to another location north-east 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

· | the design of tailings disposal areas

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· | 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 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 PROFEPA ministries require Avino to present in its first semi-annual report for a General Plan to Remediate the Site dates, activities, techniques, costs that will guarantee restoration of affected areas, considering complete reforestation of impacted sites, removal of foundations and infrastructure that is no longer useful, roads that no longer have any use, remove all rubbish and properly dispose of, 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 preliminary economic assessment:

· | 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 LOCATIO N
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 implementation of an effective community engagement program is fundamental to the successful environmental permitting of mining projects. As part of a comprehensive community engagement program, should be initiated as soon as possible. Consultation will include addressing concerns of the leap-leach pile that may be present within or adjacent to the Property.

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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-ec onomic/community economic benefits agreements
· environmental monitoring agreements
· training agreements
· accommodation/impact benefit agreements.
POTENTIAL POSITIVE EFFECTS ON LOCAL COM MUNITIES
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 north-east 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.

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21.0 CAPITAL AND OPERATING COSTS

21.1 CAPITAL COSTS
21.1.1 INTRODUCTION
The CAPEX for the Project has been developed based of the treatment of 1,370 t/d or 500,000 t/a of oxide tailings. In 2005, a total cost of US$16.2 million, including contingency, was estimated as the CAPEX for this Project.
This cost estimate update includes the following items:
· a new equipment list was generated with process engineering, quotations for major equipment were obtained, and replaces the previous estimate.
· the previous estimate in 2006 was escalated to reflect the current cost.
21.1.2 BASIS OF ESTIMATE
This estimate is a preliminary economic assessment, class IV estimate prepared in accordance with industry standard. The accuracy of the estimate is -25%/+40% which is suitable for client review and the NI 43-101 report.
PRICING AND CURRENCY
This preliminary economic assessment estimate is prepared with a base date of Q2 2012 and has not included any escalation beyond this date.
For major equipment, costing is based on budgetary quotations from vendors. Other mechanical equipment costs are based on in-house data from recent projects.
All Project capital costs are expressed in US dollars with the following provisions:
· any costs in Canadian dollars and other currencies were converted into US dollars based on an exchange rate of 1.1
· no provision was made for fluctuations in the currency exchange rates.
The currency exchange rates in Table 21.1 were used in the estimate.

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Table 21.1 Currency Exchange Rate

Currency | Exchange
CDN$1.00 | US$0.9833
EUR€1.00 | US$1.50 0 0

CONSTRUCTION LABOUR RATE S
A blended labour rate of $9.75/h was used in the previous estimate. In the updated cost estimate, escalation from 2006 to 2011 was calculated and applied.
INFLATION RATE
An inflation rate has been applied to reflect the current cost of the Project (Table 21.2). The escalation is based on inflation rate (consumer prices) in Mexico (Index Mundi 2011 www.indexmundi.com).
Table 21.2 Inflation Rates in Mexico

Year | Rate (%)
2006 | 3.4
2007 | 4.0
2008 | 5.1
2009 | 3.6
2010 | 4.1
2011 | 3.1
2012 (to June) | 1.6

An average rate of 30% inflation from 2005 to June 2012 was applied in the updated estimate.
DIRECT COSTS
The equipment list has 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.

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INDIRECT COSTS
All indirect costs were estimated based on a percentage of direct costs.
CONTINGENCY AND RISK
A contingency of 25% was applied to the direct and indirect costs to meet anticipated, foreseen, but incompletely defined costs to satisfy the approved scope.
ASSUMPTION SAND EXCLUSIONS
It was assumed there is no design change other than updating the equipment list.
It was assumed all material take-offs from the previous estimate are valid.
21.1.3 CAPITAL COST SUMMARY
The CAPEX for the Project has been assessed at US$29.1 million. The CAPEX is based on new equipment. The CAPEX is summarized in Table 21.3.
Table 21.3 CAPEX Summary

Item/Description | Total Cost (US$)
Direct Costs
Mining, Agglomeration, and Pad Loading | 3,293,320
Process Facilities | 3,905,528
Reagents/Auxiliary Services | 501,750
Buildings | 932,763
Leach Pad and Infrastructure | 7,414,974
Power Supply and Distribution | 1,457,296
Total Direct Costs | 17,505,632
Indirect Costs
Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives | 2,658,728
Freight and Construction Indirects | 3,146,235
Contingency | 5,828,0 0 0
Total Indirect Costs | 11,632,964
Total CAPEX | 29,138,596

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MINING, AGGLOMERATION AND PADLOADI NG
These costs include 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 includes the facilities required for the loading of the tailings into a bin to feed the conveyor to the agglomerator, and includes the agglomerator and its structural supports as well as the ancillary equipment. These costs also includes the lime and cement silos.
PROCESS FACILITIES
The costs in this section include 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 is estimated as new cost items.
REAGENTS AND AUXILIARY SERVICES
The costs derived for this section include reagent tanks and related equipment as well as civil construction costs. Water will be supplied from the existing sources, namely from the dams and/or the wells. The costs shown for the fresh water supply includes the refurbishing of the equipment and pumps. Safety items related to reagent handling have also been included.
BUILDINGS
The existing buildings and offices of the Avino Mine will be utilized for the Project. An allowance has been included for the refurbishment of these facilities. No costs have been allocated for the truck shop since it is intended to have a transport contractor to provide all the transportation needs for the Project. An allowance has been included for the procurement/refurbishing of laboratory equipment.
LEACH PAD AND INFRASTRUCTURE
The civil construction costs of upgrading the roads and constructing the leach pad and ponds are given in this section. The leach pad will be constructed according to standard practice with liners and a leak detection system. The 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 and this cost has been provided in this section.

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POWER SUPPLY AND DISTRIBUTION
The refurbishing and expanding of the existing electrical power supply system, along with lighting, has been included in this section. It also includes power to the agglomerator area and the Merrill-Crowe area.
INDIRECT COSTS
Indirect costs have been included as costs associated with construction services, consulting services, spare parts, and freight. A contingency of 25% has been included in the indirect costs.
No sunk costs, Owner's costs, taxes, or insurance costs have been added to the CAPEX as detailed above.
21.2 OPERATING COSTS
21.2.1 PROCESS OPER ATING COST ESTIMATE
The process operating costs for the Project includes agglomeration, heap leaching, followed by Merrill-Crowe refinery plant to produce a silver/gold doré. G&A costs have also been estimated and are included in the OPEX. The OPEX is reported in US dollars with an exchange rate of New Mexican Peso to US dollar at 12.5.
Table 21.4 gives the overall OPEX summary for the processing facility and the G&A costs and is based on 1,370 t/d with an availability of 90% and 365 operating days per year.
The annual operating cost for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at the processing rate of 1,370 t/d. An incremental increase in G&A operating costs is estimated to be US$750,000, or US$1.51/t of tailings treated.
Table 21.4 OPEX Summary

Description | Personnel | Annual Cost (US$) | Unit Cost (US$/t Treated)
Process Manpower
Maintenance Labour | 7 | 175,104 | 0.35
Operations Labour | 35 | 545,832 | 1.09
Laboratory | 7 | 139,536 | 0.28
Subtotal | 49 | 860,472 | 1.72
Process Supplies
Operating Supplies | - | 4,582,421 | 9.16

table continues…

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Description | Personnel | Annual Cost (US$) | Unit Cost (US$/t Treated)
Maintenance Supplies | - | 450,0 0 0 | 0.90
Power Supply | - | 479,947 | 0.96
Subtotal | - | 5,512,368 | 11.02
Total Process OPEX | 49 | 6,372,840 | 12.74
G&A Costs
G&A Staff | 11 | 262,656 | 0.53
G&A Expenses | - | 490,0 0 0 | 0.98
Total G&A OPEX | 11 | 752,656 | 1.51
Total OPEX | 60 | 7,125,496 | 14.25

The annual OPEX includes the following:

· | staffing and maintenance manpower complements, and base salaries including a burden of 42.5% (salary information is based on staffing complements as supplied by Avino, similar project salary costs, and Tetra Tech in house data)

· | power consumption based on the estimated power drawn by the equipment

· | reagent consumption rates and associated costs have been based on recent prices received from reagent suppliers

· | an estimated maintenance cost which was based on the capital cost estimate.

MANPOWER
Table 21.5 shows the estimated operating and maintenance manpower requirements for the process plant and Table 21.6 shows the G&A complement.
The manpower operating costs have been determined using the operating plant complement required to run and maintain the plant facilities.
Table 21.5 Process Plant Manpower Requirements

Description | Manpower | Loaded Annual Salary (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
Average Benefit Rate/Burden | - | 42.5% | - | -
Plant Maintenance
Maintenance Manager | 1 | 47,880 | 47,880 | 0.096
Leach Plant Maintenance Foreman | 1 | 38,304 | 38,304 | 0.077
Mechanics | 1 | 20,520 | 20,520 | 0.041
Welders | 1 | 20,520 | 20,520 | 0.041

table continues…

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Description | Manpower | Loaded Annual Salary (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
Electricians | 1 | 20,520 | 20,520 | 0.041
Apprentices | 2 | 13,680 | 27,360 | 0.055
Subtotal | 7 | - | 175,104 | 0.350
Operations
Plant Superintendent | 1 | 68,40 0 | 68,40 0 | 0.137
Engineering and Planning Manager | 1 | 47,880 | 47,880 | 0.096
Plant Shift Foremen | 3 | 24,624 | 73,872 | 0.148
Front End Loader Operator | 1 | 13,680 | 13,680 | 0.027
Dump Truck Driver | 3 | 13,680 | 41,040 | 0.082
Dozer Operator | 6 | 13,680 | 82,080 | 0.055
Plant Operator: Agglomerator | 3 | 10,944 | 32,832 | 0.066
Plant Operator: Conveyors | 3 | 10,944 | 32,832 | 0.066
Plant Operator: Merrill Crew | 6 | 10,944 | 65,664 | 0.131
Day Crew Reagents | 2 | 10,944 | 21,888 | 0.044
Day Crew Heap Piping | 6 | 10,944 | 65,664 | 0.131
Subtotal | 35 | - | 545,832 | 1.092
Laboratory
Chief Assayer | 1 | 41,040 | 41,040 | 0.082
Assayer | 6 | 16,416 | 98,496 | 0.197
Subtotal | 7 | - | 139,536 | 0.279

Table 21.6 G&A Manpower Requirements

Description | Manpower | Annual Cost/ Employee (US$) | Annual Cost Payroll (US$) | Unit Cost (US$/t Milled)
General Manager | 1 | 75,240 | 75,240 | 0.150
Administration Manager | 1 | 27,360 | 27,360 | 0.055
First Aid Attendant | 1 | 20,520 | 20,520 | 0.041
Purchasing Agent | 1 | 27,360 | 27,360 | 0.055
Office Clerk | 1 | 13,680 | 13,680 | 0.027
Computer Technician | 1 | 16,416 | 16,416 | 0.033
Safety and Security | 2 | 13,680 | 27,360 | 0.055
Warehouse Staff | 2 | 13,680 | 27,360 | 0.055
Environmental Supervisor | 1 | 27,360 | 27,360 | 0.055
Total G&A Manpower | 11 | - | 262,656 | 0.525

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POWER AND SUPPLIES
Table 21.7 gives the annual power requirements for the process sections based on the estimated power usage. The unit cost of power was given to be US$0.065/kWh and equates to US$0.96/t of tailings processed.
Table 21.7 Process Power Supply

Plant Power Supply | 842.9 kW Running
kWh/a | Unit Cost (US$/kWh) | Total Cost (US$/a) | Unit Cost (US$/t Milled)
Plant Power | 7,383,804 | 0.065 | 479,947 | 0.96
Total Power Supply | - | - | 479,947 | 0.96

The annual maintenance supplies requirement for the plant has been estimated for each of the sections, and these costs are shown in Table 21.8. The plant cost of maintenance supplies has been calculated to be US$450,000, or US$0.90/t of oxide tailings treated.
Table 21.8 Process Maintenance Supplies

Area | Total Cost (US$/a) | Unit Cost (US$/t Ore)
Conveyors | 100,0 0 0 | 0.2
Agglomerator | 50,00 0 | 0.1
Leach Plant and Refinery Supplies, and Maintenance | 50,00 0 | 0.1
Merrill-Crowe | 250,0 0 0 | 0.5
Total Maintenance Supplies | 450,0 0 0 | 0.9

The annual estimated plant operating supplies requirements are provided in Table 21.9. The total cost of operating supplies for the main plant which mostly includes the cost of the reagents has been determined to be US$4.6 million, or US$9.16/t of tailings treated.

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Table 21.9 Plant Operating Supplies

Supplies | Consumption (kg/t Milled) | Unit Cost (US$/kg) | Total Cost (US$/a) | Unit Cost (US$/t Milled)
Reagents
Cement | 10.90 | 0.20 | 1,090,109 | 2.18
Lime | 6.865 | 0.11 | 360,449 | 0.72
Cyanide | 0.928 | 2.45 | 1,136,914 | 2.27
Zinc Dust | 0.96 | 3.20 | 1,536,154 | 3.07
Lead Nitrate | 0.19 | 0.25 | 23,752 | 0.05
Filter -Aid | 0.10 | 0.85 | 42,504 | 0.09
Pre-Coat | 0.10 | 0.09 | 4,500 | 0.01
Sodium Hydroxide | 0.09 | 1.00 | 45,005 | 0.09
Sulphuric Acid | 0.76 | 0.85 | 323,032 | 0.65
Calcium Hypochlorite | 0.05 | 0.80 | 20,002 | 0.04
Total Operating Supplies | - | - | 4,582,421 | 9.16

Table 21.10 details the annual G&A expenses and the unit G&A expenses operating cost has been calculated to be US$0.98/t of oxide tailings treated.
Table 21.10 G&A Expenses

Description | Total Cost (US$/a) | Unit Cost (US$/t Milled)
Communications | 36,00 0 | 0.072
Consulting | 30,00 0 | 0.060
Human Resources and Employee Costs | 10,00 0 | 0.020
Vehicle Costs | 20,00 0 | 0.040
Site Costs | 24,00 0 | 0.048
Office Costs | 24,000 | 0.048
Safety and Security | 24,00 0 | 0.048
Travel | 36,00 0 | 0.072
Water Costs | 24,00 0 | 0.048
Housing Costs | 30,00 0 | 0.060
Insurance | 60,00 0 | 0.120
Environmental
Consumables & Supplies | 24,00 0 | 0.048
Permitting | 24,00 0 | 0.048
Water Analysis | 24,00 0 | 0.048
Dore Transportation | 100,0 0 0 | 0.200
Total G&A Expenses | 490,0 0 0 | 0.980

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Assumptions Used in Power and Supplies Requirements
The estimated power requirements for the process sections are given as a total value in Table 21.7. The power value records the anticipated annual operating power usage and not the installed power for the equipment. The complete equipment list and electrical load list are located in the Appendix F. The unit electrical cost of US$0.065/kWh was provided by Avino.
The costs of the plant operating supplies include the reagent costs for the usage as given in the process design criteria.
The maintenance supplies costs are estimated values and are reflected as an allowance as based on a percentage of the capital cost estimate. Similarly, the G&A expenses have been based on estimated allowance values.

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22.0 ECONOMIC ANALYSIS

22.1 INTRODUCTION
A preliminary economic assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The preliminary economic assessment 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 preliminary economic assessment will be realized. Mineral resources that are not mineral reserve do not have demonstrated economic viability.
Tetra Tech prepared an economic evaluation of the Project based on a pre-tax financial model.
Tetra Tech’s long-term consensus metal prices (as of April 24, 2012) used in the base case were:
· gold – US$1,256.00/oz
· silver – US$20.38/oz.
The pre-tax financial results are:
· 54.5% IRR
· 1.6-year payback
· US$38.6 million NPV at an 8% discount rate.
Sensitivity analyses were conducted to analyze the sensitivity of the Project merit measures (NPV, IRR and payback periods) to the main inputs.
22.2 PRE - TAX MODEL
22.2.1 MINE /METAL PRODUCTION IN FINANCIAL MODEL
The life-of-project average material tonnages, grades and metal production are shown in Table 22.1.

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Table 22.1 Metal Production from the Avino Mine Tailings Retreatment

Description | Value
Total Tonnes to Mill (‘000) | 2,340
Annual Tonnes to Mill (‘000) | 500
Mine Life (Years) | 5
Average Grades
Gold (g/t) | 0.54
Silver (g/t) | 91.30
Total Production
Gold (‘000 oz) | 31
Silver (‘000 oz) | 4,814
Average Annual Production
Gold (‘000 oz) | 6.58
Silver (‘000 oz) | 1,028.55

22.2.2 BASIS OF FINANCIAL EVALUATIONS
The production schedule has been incorporated into the 100% equity pre-tax financial model to develop annual recovered metal production from the relationships of tonnage processed, head grades, and recoveries.
Gold and silver payable values were calculated based on base case metal prices. net invoice value was calculated each year by subtracting the applicable refining charges from the payable metal value. At-mine revenues are then estimated by subtracting transportation and insurance costs. Unit operating costs for mining, processing, power, fuel, and G&A were applied to annual mined/milled tonnages to determine the overall operating cost which was deducted from the revenues to derive annual operating cash flow.
Initial capital costs as well as working capital have been incorporated on a year-by- year basis over the mine life. Salvage value and mine reclamation costs are applied to the capital expenditure in the last production year. Capital expenditures are then deducted from the operating cash flow to determine the net cash flow before taxes.
Initial capital expenditures include costs accumulated prior to first production of concentrate. No sustaining capital is included in this study. Pre-production period is assumed to be one year.
Working capital is assumed to be three months of the annual operating cost and fluctuates from year to year based on the annual cost. The working capital is recovered at the end of the mine life.
The salvage value is assumed to be 2% of the initial capital cost and recovered at the end of mine life.

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Mine closure and reclamation is assumed to be US$0.1/t mined and incurred at the end of mine life.
The undiscounted annual net cash flow (NCF) and cumulative net cash flow (CNCF) are illustrated in Figure 22.1.
22.3 SUMMARY OF FINANCIAL RESULTS
Tetra Tech evaluated the base case using consensus gold and silver prices of US$1,256.00/oz and US$20.38/oz, respectively.
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 and for an alternative case based on spot metal prices as of June 19, 2012 are presented in Table 22.2.

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Table 22.2 Summary of Pre-tax Financial Results

Description | Base Case | Spot Prices Case
Gold Price (US$/oz) | 1,256.0 0 | 1,622.20
Silver Price (US$/oz) | 20.38 | 28.36
Total Payable Metal Value (US$'000) | 131,459 | 179,116
Refining (US$'000) | 4,817 | 4,817
Total NIV (US$'000) | 126,642 | 174,299
Transportation, Insurance (US$'000) | 190 | 261
At-mine Revenue (US$'000) | 126,452 | 174,038
Royalties (US$'000) | 0 | 0
Operating Costs (US$'000) | 38,192 | 38,192
Operating Cash Flow (US$'00 0) | 88,260 | 135,845
Capital Expenditure, Including Reclamation and Salvage (US$'000) | 28,990 | 28,990
Net Cash Flow (US$'000) | 59,270 | 106,856
Discounted Cash Flow NPV (US$'0 0 0) at 0.00% | 59,270 | 106,856
Discounted Cash Flow NPV (US$'0 0 0) at 5.00% | 45,345 | 84,842
Discounted Cash Flow NPV (US$'0 0 0) at 8.00% | 38,647 | 74,186
Discounted Cash Flow NPV (US$'0 0 0) at 10.00% | 34,736 | 67,940
Payback (years) | 1.6 | 1.1
IRR (%) | 54 | 92

22.4 SENSITIVITY ANALYSIS
Sensitivity of the project’s NPV, IRR and payback period to the Project key variables was investigated. Using the base case as a reference, each of key variables was changed between -30%/+30% at a 10% interval while holding the other variables constant. The following are the key variables investigated:
· gold price
· silver proce
· capital costs
· operating costs.
As shown in Figure 22.2, the Project NPV, calculated at an 8% discount, is most sensitive to the silver price and, in decreasing order gold price, operating costs, and capital costs. The lines representing the capital and operating costs are overlaying as they have similar effect on the NPV.

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As shown in Figure 22.3, the project IRR is most sensitive to the CAPEX and the silver price, followed by the gold price and operating costs.
As shown in Figure 22.4, the payback period is also most sensitive to the silver proce, followed capital costs, operating costs and the gold price.

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22.5 ROYALTIES
No royalties are considered in the financial analysis.
22.6 SMELTER TERMS
In the absence of letters of interest or letters of intent from potential smelters or buyers of gold and silver doré, smelter terms for similar projects have been applied.
● gold – pay 99% on the gold less a refining charge of $8.00/accountable troy oz from the London Metal Exchange (LME) price.
● silver – pay 95% on the silver less a refining charge of $1.00/accountable troy oz from the LME price.
22.7 TRANSPORT ATION LOG ISTICS
Transportation costs for gold and silver doré are assumed to be included in the refining charges.
22.7.1 INSURANCE
An insurance rate of 0.15% was applied to the provisional invoice value of the doré.

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23.0 ADJACENT PROPERTIES

There are no material properties adjacent to the Avino Mine.

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24.0 OTHER RELEVANT DATA AND INFORMATION

24.1 INFRASTRUCTURE AND MILL REFURBISHMENT
In order to perform the bulk sample program, major infrastructure spending and mill repairs were required. Most of these expenditures took place in 2008 and 2009 with additional spending required more recently as further needs arise to meet the demands of an operating mill.
To provide an operating 250 t/d milling circuit, as much of the previously existing process equipment was used. A list of the major items purchased, installed and repaired are as follows:
● the crushing plant was reconfigured for two stages of crushing rather than three by installing a smaller jaw crusher, repairing the short head cone crusher and the vibrating screen.
● the ball mill was inspected and the necessary mechanical repairs were made to make the mill operational.
● two smaller banks of flotation cells were fabricated and installed; in the dewatering section, the existing 20 ft thickener was cleaned and the side walls and bottom were reinforced with new steel plates
● new filter sectors for the existing filter and a new vacuum pump were purchased and installed
● the entire mill was rewired accordingly to meet the electrical code.
Infrastructure included the following:
● water supply from Galeana, La Caricol Dam and the Tailings Reclaim; all of these items required pumps, electrical starters, cable and transformers, and repairs to the existing pipelines.
● clean and reactivate the two existing water storage tanks and install a new 2 in. pipeline to supply water to San Gonzalo.
● purchase equipment such as a new Varian AA machine for the assay laboratory
● two diamond drill core storage sheds
● reactivate and calibrate the existing dump truck scale

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· miners quarters for approximately 50 contract miners and related services for housing them
· mine office and maintenance shop
· fuel storage tank and containment
· reactivate two secured explosives storage facilities and the guard house
· phone and telecommunication systems
· new 400 kW power line from the vicinity of the process plant to San Gonzalo
· upgrade the road from San Gonzalo to process plant; a distance of approximately 1.7 km.
Major surface and underground equipment purchases include:
· 924-H Caterpillar front end loader
· DR-6 Cat Dozer
· 13 light service passenger vehicles
· 300 kW diesel power generator
· 150 hp air compressor
· 5 yd scoop from Remag
· 3 yd scoop from Caterpillar
· LY-44 surface and ONRAM 100/3 underground diamond drill rigs
· Caterpillar 320D combination backhoe and rock breaker.

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25.0 INTERPRETATION AND CONCLUSIONS

25.1 G EO LO GY
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 mine 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 cross-cut 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 hard-rock San Gonzalo vein, the ET Zone of the Avino vein, and the Avino oxide tailings. The latter tailings deposit is the basis for this preliminary economic assessment, and the only deposit for which there is a current resource estimate.
25.2 RESOURCE ESTIMATE
The oxide tailings are estimated to contain a 2.34 Mt Inferred Resource at a grade of 91.3 g/t silver and 0.54 g/t gold, at a 50 g/t silver cut-off.
25.3 MINERAL PROCESSING
A possible process design was developed to recover the silver and gold present in the oxide tailings dam material at the Avino Mine as per the MMI report dated October 2005.
The implied values contained in the oxide tailings dam are approximately US$136.8 million, based on US$20.38/oz of silver and US$1,256/oz of gold prices. The silver values are approximately three times higher than the gold values. NPV calculated at 8% discount rate is US$38.7 million.

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The capital cost to design and construct a 500,000 t/a agglomeration heap leach operation treating tailings material is estimated to be US$29.1 million.
Based on information in the MMI report and using current reagent costs, plant operating and maintenance costs are estimated to average US$14.25/t treated. It must be noted that no sulphide tailings relocation costs are included in this figure because of insufficient information to calculate the volumes of both the oxide and sulphide tailings.
These costs are summarized in Table 25.1.
Table 25.1 Cost Summary

Description | Cost
Implied value contained in oxide tailings (US$ million) | 136.8
Capital cost for 500,000 t/a agglomeration/ heap leach operation (US$ million) | 29.1
Estimated operating cost per tonne of tailings treated (stripping costs not included) (US$/t) | 14.25
Estimated net revenue using $20.38/oz silver and $1256/oz gold (US$ million) | 59.3

Continuous vat leaching technology was investigated for retreatment of the tailings as an alternative to heap leaching. A test program was completed in 2011, for the evaluation of the continuous vat leaching process. This program was of poor quality, for the following reasons:
· the origin of the sample was not discussed
· the particle size of the material tested was not given
· cyanide consumptions during the test were not checked and are therefore not reliable as given
· there was no comparison of the results with standard bottle roll tests.
In conclusion, CVL process has not demonstrated positive results in the test program. Further tests on site should be conducted in order to confirm CVL process as an alternative for retreatment of the tailings.
25.4 MINING
The mining of the unconsolidated tailings is relatively simple. There is moisture in the tailings and in places the ground can be soft. To mitigate the front-end loader from getting stuck, larger tires with chains and a smaller bucket will be employed.

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The mining group will operate on a 1-shift per day basis every day of the year. If this work schedule does not prove to be adequate, it is recommended the over-the-road dump trucks pull a trailer, overtime be approved or an additional shift be added.
25.5 CAP ITAL AND OPERATING COSTS
The CAPEX for the Project has been developed based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings. A total cost of US$29.1 million, including contingency, was estimated as the CAPEX for the Project (Table 25.2)
Table 25.2 CAPEX Summary

Item/Description | Total Cost (US$)
Direct Costs
Mining, Agglomeration, and Pad Loading | 3,293,320
Process Facilities | 3,905,528
Reagents/Auxiliary Services | 501,750
Buildings | 932,763
Leach Pad and Infrastructure | 7,414,974
Power Supply and Distribution | 1,457,296
Total Direct Costs | 17,505,632
Indirect Costs
Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives | 2,658,728
Freight and Construction Indirects | 3,146,235
Contingency | 5,828,0 0 0
Total Indirect Costs | 11,632,964
Total CAPEX | 29,138,596

Table 25.3 gives the overall estimated cost summary for the processing facility and the G&A costs based on 1,370 t/d, with an availability of 90% and 365 operating days per year.
The annual OPEX for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at a processing rate of 1,370 t/d. An incremental increase in the G&A OPEX is estimated to be US$750,000, or US$1.5/t of tailings treated.

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Table 25.3 OPEX Summary

Description | Personnel | Annual Cost (US$) | Unit Cost (US$/t Treated)
Process Manpower
Maintenance Labour | 7 | 175,104 | 0.35
Operations Labour | 35 | 545,832 | 1.09
Laboratory | 7 | 139,536 | 0.28
Subtotal | 49 | 860,472 | 1.72
Process Supplies
Operating Supplies | - | 4,582,421 | 9.16
Maintenance Supplies | - | 450,0 0 0 | 0.90
Power Supply | - | 479,947 | 0.96
Subtotal | - | 5,512,368 | 11.02
Total Process OPEX | 49 | 6,372,840 | 12.74
G&A Costs
G&A Staff | 11 | 262,656 | 0.53
G&A Expenses | - | 490,0 0 0 | 0.98
Total G&A OPEX | 11 | 752,656 | 1.51
Total OPEX | 60 | 7,125,496 | 14.25

25.6 ECONOMIC ANALYSIS
Based on US$1,256/oz gold price and US$20.38/oz silver price, the pre-tax NPV at 8% discount rate is US$38.6 million, the IRR is 54.5% and the payback period is 1.6 years. The total life-of-mine undiscounted NCF is US$ 59 million. The project economics are more sensitive to changes in silver price then gold price, capital costs and operating costs.

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26.0 RECOMMENDATIONS

26.1 RESOURCE ESTIMATE
For the confidence in the Inferred Mineral Resource of oxide tailings to be improved, a drilling campaign should be carried out with suitable equipment (sonic drilling is recommended to recover unconsolidated material with variable moisture content). At the same time, the overlying deposit of sulphide tailings should be drilled. To achieve a nominal drill collar spacing of 50 m x 50 m, 90 holes with an average length of 20 m would be required for a total of 1,800 m of drilling. An estimated cost for this drilling is $500,000.
Resource estimates for the ET Zone of the Avino vein, the San Gonzalo vein, the open pit, and the sulphide tailings should be completed for mine planning purposes, in addition to an updated oxide tailings resource estimate following the drilling program recommended above. Drilling has been carried out during the last two years and the drillhole database should be consolidated and mining depletions updated before the estimation is performed. An estimated cost for completion of these resource estimates and the associated technical report is $170,000.
26.2 PROCESS
Based on the conclusions within the components of this technical report, it is recommended that the following tasks could be executed for verifying the material within the tailings:
● drill the surface of both tailings dam areas to determine the volumes and bulk density of each of the oxide and sulphide tailings material
● take sufficient amounts of samples from both oxide and sulphide tailings to obtain representative samples for assay and metallurgical test work to confirm the grade of the deposit and the recovery of silver and gold from the heap leach process
● use the metallurgical results from the test work program to confirm/define the duration of leaching on the pad, the reagent consumption values and the silver and gold precipitation efficiencies
● use the metallurgical results from the metallurgical test work program to develop a heap leach flowsheet
● based on accurate assay and reproducible metallurgical test work data, prepare an economic analysis for the retreatment of the oxide tailings dam material, the sulphide tailings dam material, and for the treatment of both oxide and sulphide tailings material

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26.2.1 REFURBISHED EQUIPMENT
The suitability and/or the possibility of refurbishing the existing equipment at the Avino Mine plant site needs to be evaluated more closely. Some water pumps and possibly some conveyors could be returned to service, and some of the existing tanks could be used for water storage/supply. However, it does not appear as if any other equipment could be salvaged and/or refurbished for use in a heap leach plant. The general availability of used equipment from other locations in the Durango district, or in Mexico, would need to be investigated.
26.2.2 ASSAY LABORATORY EQUIPMENT
The assay laboratory would require re-equipping with suitable equipment. The availability of suitable used laboratory equipment and facilities is also not known.
26.2.3 SULPHID ETAILINGS
The option of whether the sulphide tailings should be re-treated on the heap or relocated and dumped elsewhere, while possibly being treated for environmental remediation, is not known at this stage. The absence of reliable sulphide tailings dump metallurgical information makes quantification of this option difficult. A detailed trade-off study should be undertaken to determine whether the re-treatment 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.
For the purposes of this report, 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.
26.3 ENVIRONMENTAL
The cost of permitting has not been considered at this stage of the 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 which 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.

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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 Project.
There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings may be required prior to use depending on the water quality.
26.4 PROJECT SCHEDULE
A suggested high-level schedule of the tailings retreatment project execution plan has been prepared. This schedule is provided in Figure 26.1

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27.0 REFERENCES

Bannon, J.F. 1970. The Spanish Borderlands Frontier 1513–1821, Albuquerque: University of New Mexico Press, p. 29, 53–54
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.
Gallegos, J.I. 1960. Durango Colonial, 1563–1821, Mexico City: Editorial Jus, p. 78.
González Olguin, Juan Manuel. 2012. Current title opinion prepared by Bufete González Olguin SC Law Firm for Avino Silver and Gold Mines, Ltd. April 4, 2012, 29 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
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.
Infomine Inc. 2010 Mine & Mill Equipment Costs: An Estimator's Guide. InfoMine Inc. http://c o s t s.infomine.com. November 2010.
Paulter, J. 2006. Regional Exploration Evaluation and Recommendations. Unpublished internal report for Avino.

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Secretaría de Medio Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources). 2008 a. Delegación Federal Durango, Subdelegación de Gestión para la Protección Ambiental y Recursos Naturales. Resolución en material de Impacto Ambiental para el proyecto: “Mina San Gonzalo”, Mpio de Pánuco de Coronado, Dgo. Oficio No. SG/130.2.1.1./001506, Bitácora No. 10/MP-0104/06/08, Clave Sinat: 10DU2008MD024, Clave Estatal: 10DU08M0521. Victoria de Durango, Durango. August 18, 2008
Secretaría de Medio Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources).2008 b. Delegación Federal Durango, Subdelegación de Gestión para la Protección Ambiental y Recursos Naturales. Unidad de Aprovechamiento y Restauración de Recursos Naturales. Se Autoriza por excepción Cambio de Utilización de Terreno Forestal a Infraestructura Minera. No. de Oficio: SG/130.2.2./001835; No. de bitácora: 10/DS-0265/06/08. Durango, Durango. September 17, 2008
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.
Slim, B. 2005d. A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. October 25, 2005.
VSE, 1977. Vancouver Stock Exchange Review. September 1979.
WEBSITES
Avino Annual Reports
http://www.avino.com/new/hi s tory.asp?Re p ortID=5 163 1 8
Index Mundi 2011
http://www.indexm u ndi.com/
World Climate
http://www.world c limate.com/

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28.0 CERTIFICATES OF QUALIFIED PERSON

JAC Q U E S OU E L L E T, P. E N G ., PH . D.
I, Jacques Ouellet, P.Eng., Ph.D., of Vancouver, British Columbia, do hereby certify:
● I am a Divisional Manager Mining Engineering with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.
● This certificate applies to the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012 (the “Technical Report”).
● I am a graduate of Laval University, (B.Sc.A. Geological Engineering, 1983). I am a member in good standing of the Association of Professional Engineers and Geoscientists of Saskatchewan (#15140), l'Ordre des ingénieurs du Québec (#38331), and the Association of Professional Engineers and Geoscientists of Yukon (#2013). My relevant experience is 25 years in various mining projects, studies and designs mainly in North America, both in underground mining and open pit mining. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).
● I have not completed a personal inspection of the Property that is the subject of this Technical Report.
● I am responsible for Sections 1.6, 15.0, 16.0, 25.4, and 28.0 of the Technical Report.
● I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.
● I have no prior involvement with the Property that is the subject of the Technical Report.
● I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.
● As of the date of this certificate, to the best of my knowledge, information and belief, the sections 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 24th day of July, 2012 at Vancouver, British Columbia

“Original document signed and sealed by Jacques Ouellet, P.Eng., Ph.D.” |
Jacques Ouellet, P.Eng., Ph.D. Divisional Manager Mining Engineering Tetra Tech WEI Inc. |

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MI C H A E L F. O’BR I E N, M .SC., PR . SC I . NA T ., FGSSA , FAU SIMM, FSAIMM
I, Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM of Vancouver, British Columbia, do hereby certify:
● I am a Chief Geologist with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.
● This certificate applies to the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012 (the “Technical Report”).
● I am a graduate of the University of Natal, (B.Sc Hons. Geology, 1978). I am a registered Professional Natural Scientist (Geological Scientist) in good standing of the South African Council for Natural Scientific Professions (South Africa, 400295/87). My relevant experience is 33 years of experience in operations, mineral project assessment and I have the experience relevant to Mineral Resource estimation of metal deposits. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”) under the Accepted Foreign Associations and Membership Designations (Appendix A).
● My most recent personal inspection of the Property that is the subject of this Technical Report was June 7 to 8, 2012, inclusive.
● I am responsible for Sections 1.1, 1.2, 1.3, 1.4, 4.0, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, 11.0, 12.0, 14.0, 23.0 25.1, 25.2, 26.1, 27.0, and 28.0 of the Technical Report.
● I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.
● I have no prior involvement with the Property that is the subject of the Technical Report.
● I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.
● As of the date of this certificate, to the best of my knowledge, information and belief, the sections 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 24th day of July, 2012 at Vancouver, British Columbia

“Original document signed and sealed by Michael F. O.Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM” |
Michael F. O’Brien, M.Sc., Pr.Sci.Nat., FGSSA, FAusIMM, FSAIMM Chief Geologist Tetra Tech WEI Inc. |

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SABRY ABDEL HAFEZ, PH. D., P. ENG.
I, Sabry Abdel Hafez, Ph.D., P.Eng., of Vancouver, British Columbia, do hereby certify:
● I am a Senior Mining Engineer with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.
● This certificate applies to the technical report entitled “Technical Report on the Avino Property” dated July 24, 2012 (the “Technical Report”).
● I am a graduate of Assiut University, (B.Sc Mining Engineering, 1991; M.Sc. in Mining Engineering, 1996; Ph.D. in Mineral Economics, 2000). I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#34975). My relevant experience is in mine evaluation. I have more than 19 years of experience in the evaluation of mining projects, advanced financial analysis, and mine planning and optimization. My capabilities range from the conventional mine planning and evaluation to the advanced simulation-based techniques that incorporate both market and geological uncertainties. I have been involved in the technical studies of several base metals, gold, coal, and aggregate mining projects in Canada and abroad. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).
● I have not completed a personal inspection of the Property that is the subject of this Technical Report.
● I am responsible for Sections 1.9, 22.0, 25.6, and 28.0 of the Technical Report.
● I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.
● I have no prior involvement with the Property that is the subject of the Technical Report.
● I have read the Instrument and the parts of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.
● As of the date of this certificate, to the best of my knowledge, information and belief, the parts 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 24th day of July, 2012 at Vancouver, British Columbia

“Original document signed and sealed by Sabry Abdel Hafez, Ph.D., P.Eng.” |
Sabry Abdel Hafez, Ph.D., P.Eng. Senior Mining Engineer Tetra Tech WEI Inc. |

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HARVEY WAYNE STOYKO, P.ENG
I, Harvey Wayne Stoyko, P.Eng., of Vancouver, British Columbia, do hereby certify:
● I am the Estimating Manager with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia V6B 1M1.
● This certificate applies to the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012 (the “Technical Report”).
● I am a graduate of the University of Saskatchewan, (B.Sc. Mechanical Engineering, 1985). I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#17092). My relevant experience with respect to mine development and costing includes over 20 years in mine expansion, capital cost engineering for both green and brownfield construction, planning, costing and execution of mine/concentrate handling facilities including plant, road, rail and port and the preparation of studies. I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).
● I have not completed a personal inspection of the Property that is the subject of this Technical Report.
● I am responsible for Sections 1.8, 1.10, 18.0, 21.1, 25.5, 26.4, and 28.0 of the Technical Report.
● I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.
● I have no prior involvement with the Property that is the subject of the Technical Report.
● I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.
● As of the date of this certificate, to the best of my knowledge, information and belief, the sections 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 24th day of July, 2012 at Vancouver, British Columbia.

“Original document signed and sealed by Harvey Wayne Stoyko, P.Eng.” |
Harvey Wayne Stoyko, P.Eng. Manager of Estimating Tetra Tech WEI Inc. |

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Hassan Ghaffari, P.Eng.
I, Hassan Ghaffari, P.Eng., of Vancouver, British Columbia, do hereby certify:

• | I am a Manager of Metallurgy with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.
• | This certificate applies to the technical report entitled "Technical Report on the Avino Property" dated July 24, 2012 (the "Technical Report").
• | I am a graduate of the University of Tehran (M.A.Sc., Mining Engineering, 1998) and the University of British Columbia (M.A.Sc., Mineral Process Engineering, 2004). I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#30408). My relevant experience includes 23 years of experience in mining and plant operation, project studies, management, and engineering. I am a "Qualified Person" for purposes of National Instrument 43-101 (the "Instrument").
• | My most recent personal inspection of the Property was on March 30, 2011 for one day.
• | I am responsible for Sections 1.5, 2.0, 3.0, 13.0, 17.0, 19.0, 21.2, 24.0, 25.3, 26.2, 27.0, and 28.0 of the Technical Report.
• | I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.
• | I have no prior involvement with the Property that is the subject of the Technical Report.
• | I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.
• | As of the date of this certificate, to the best of my knowledge, information and belief, the sections 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 24th day of July, 2012 at Vancouver, British Columbia.

"Original document signed and sealed by |
Hassan Ghaffari, P.Eng." |
Hassan Ghaffari, P.Eng. |
Manager of Metallurgy |
Tetra Tech WEI Inc. |

Avino Silver & Gold Mines Ltd. Technical Report on the Avino Property | 28-5 |

Monica Danon-Schaffer, Ph.D., P.Eng.
I, Monica Danon-Schaffer, Ph.D., P.Eng., of Vancouver, British Columbia, do hereby certify:

• | I am a Manager, Environment and Sustainable Development with Tetra Tech Inc., with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.

• | This certificate applies to the technical report entitled "Technical Report on the Avino Property" dated July 24, 2012 (the "Technical Report").

• | I am a graduate of the University of British Columbia (Ph.D, Chemical and Biological Engineering, 2010), University of British Columbia (M.Eng. Civil Engineering, 1993), and the Universidad Iberoamericana (B.Sc. Chemical Engineering, 1988). I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#22768), Professional Engineers Ontario (#100045213), Association of Professional Engineers and Geoscience of Saskatchewan (#20307), Association of Professional Engineers of Yukon (#1655), Northwest Territories and Nunavut Association of Professional Engineers and Geoscientists (#L2018). My relevant experience includes preparation of environmental risk assessments, evaluation of Equator Principles, environmental health and safety compliance audits and due diligence at mines, mine waste and management, as well as regulatory reviews. I am a "Qualified Person" for purposes of National Instrument 43-101 (the "Instrument").

• | I have not completed a personal inspection of the Property that is the subject of this Technical Report.

• | I am responsible for Sections 1.7, 20.0, 26.3, and 28.0 of the Technical Report.

• | I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.

• | I have no prior involvement with the Property that is the subject of the Technical Report.

• | I have read the Instrument and the sections of the Technical Report for which I am responsible have been prepared in compliance with the Instrument.

• | As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Signed and dated this 24th day of July, 2012 at Vancouver, British Columbia.

"Original document signed and sealed by |
Monica Danon-Schaffer, Ph.D., P.Eng." |
Monica Danon-Schaffer, Ph.D., P.Eng. |
Manager, Environment and Sustainable Development |
Tetra Tech Inc. |

Avino Silver & Gold Mines Ltd. Technical Report on the Avino Property | 28-6 |

APPENDIX A

Drillhole Assay Data

ET-12-01
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 97.65 | 99.05 | 1.40 | 0.024 | 1.3 | 25 | 23 | 139
| 99.05 | 99.40 | 0.35 | 0.019 | 2.6 | 404 | 54 | 794
| 99.40 | 100.40 | 1.00 | 0.122 | 42.6 | 2548 | 554 | 276
| 100.40 | 101.00 | 0.60 | 0.02 | 3.8 | 1606 | 151 | 215
| 101.00 | 101.85 | 0.85 | 0.149 | 29.1 | 1302 | 265 | 189
| 101.85 | 102.15 | 0.30 | 0.027 | 7.2 | 1236 | 1223 | 3628
| 102.15 | 103.40 | 1.25 | 0.038 | 14.1 | 1131 | 136 | 1465
| 103.40 | 104.65 | 1.25 | 0.014 | 17.9 | 904 | 49 | 973
| 104.65 | 105.40 | 0.75 | 0.017 | 12.1 | 559 | 114 | 1285
| 105.40 | 106.10 | 0.70 | 0.173 | 41.8 | 465 | 385 | 352
| 106.10 | 107.40 | 1.30 | 0.013 | 6.3 | 601 | 54 | 1795
| 203.40 | 204.90 | 1.50 | 0.047 | 15 | 747 | 51 | 131
| 204.90 | 205.85 | 0.95 | 0.013 | 1.3 | 412 | 14 | 150
| 205.85 | 207.35 | 1.50 | 0.675 | 10.3 | 958 | 27 | 606
| 207.35 | 208.85 | 1.50 | 0.328 | 8 | 599 | 38 | 567
| 208.85 | 210.05 | 1.20 | 0.275 | 5.9 | 283 | 27 | 735
| 210.05 | 211.25 | 1.20 | 0.262 | 3.8 | 260 | 43 | 869
| 211.25 | 212.75 | 1.50 | 1.521 | 58.1 | 2585 | 227 | 409
| 212.75 | 214.25 | 1.50 | 4.026 | 64.6 | 3961 | 233 | 281
| 214.25 | 215.75 | 1.50 | 0.486 | 15.7 | 888 | 59 | 273
| 215.75 | 217.25 | 1.50 | 0.126 | 30.8 | 1475 | 92 | 311
| 217.25 | 218.75 | 1.50 | 0.039 | 7.6 | 1217 | 31 | 248
| 218.75 | 220.25 | 1.50 | 0.208 | 6.1 | 599 | 31 | 373
| 220.25 | 221.75 | 1.50 | 0.218 | 14 | 302 | 83 | 283
| 221.75 | 222.55 | 0.80 | 0.07 | 0.4 | 128 | 34 | 482
| 222.55 | 223.35 | 0.80 | 1.124 | 55 | 1309 | 146 | 283
| 223.35 | 224.75 | 1.40 | 0.006 | 0.2 | 9 | 6 | 169
| 224.75 | 226.25 | 1.50 | 0.311 | 34.7 | 2704 | 79 | 674
| 226.25 | 227.75 | 1.50 | <0.005 | 0.4 | 104 | 34 | 401
| 227.75 | 229.25 | 1.50 | 0.02 | 1.2 | 166 | 24 | 551
| 229.25 | 230.75 | 1.50 | 0.015 | 0.8 | 488 | 14 | 426
| 230.75 | 232.25 | 1.50 | 0.043 | <0.1 | 54 | 10 | 496
| 232.25 | 233.75 | 1.50 | 0.287 | 38.5 | 1295 | 82 | 743
| 233.75 | 235.25 | 1.50 | 0.333 | 28.2 | 3950 | 111 | 483
| 235.25 | 236.75 | 1.50 | 0.078 | 6.9 | 721 | 40 | 643
| 236.75 | 238.25 | 1.50 | 1.236 | 50.6 | 669 | 249 | 697
| 238.25 | 239.75 | 1.50 | 0.747 | 61.8 | 4349 | 354 | 684
| 239.75 | 241.25 | 1.50 | 0.59 | 96.9 | 1177 | 837 | 917
| 241.25 | 242.40 | 1.15 | 0.063 | 10.4 | 1105 | 428 | 714
| 242.40 | 243.40 | 1.00 | 0.057 | 6.1 | 670 | 757 | 833
| 243.40 | 243.90 | 0.50 | 0.019 | 1.5 | 509 | 2537 | 1494
| 243.90 | 245.30 | 1.40 | 0.013 | 3.2 | 293 | 1616 | 1769
| 245.30 | 246.30 | 1.00 | 0.073 | 50.3 | 1728 | 1110 | 2134
| 246.30 | 247.00 | 0.70 | 0.384 | 247.5 | 1105 | 1735 | 405
| 247.00 | 247.60 | 0.60 | 0.292 | 96.4 | 2699 | 794 | 1010
| 247.60 | 249.10 | 1.50 | 0.07 | 27.6 | 2273 | 182 | 1290
| 249.10 | 250.60 | 1.50 | 0.499 | 44 | 770 | 206 | 869
| 250.60 | 252.10 | 1.50 | 0.34 | 21 | 2872 | 120 | 1042
| 252.10 | 252.90 | 0.80 | 0.153 | 7.6 | 470 | 51 | 935
| 252.90 | 254.40 | 1.50 | 0.507 | 66.1 | 4924 | 249 | 1128
| 254.40 | 255.90 | 1.50 | 0.54 | 102.5 | 4069 | 337 | 792
| 255.90 | 257.40 | 1.50 | 0.352 | 110.1 | 2081 | 1018 | 711
| 257.40 | 258.90 | 1.50 | 0.302 | 127.4 | 487 | 1343 | 417
| 258.90 | 260.40 | 1.50 | 0.09 | 69 | 1436 | 322 | 776
| 260.40 | 261.90 | 1.50 | 0.124 | 42.5 | 1174 | 344 | 462
| 261.90 | 263.40 | 1.50 | 0.065 | 26.1 | 5406 | 152 | 401
| 263.40 | 264.90 | 1.50 | 0.111 | 38.6 | 8434 | 177 | 675
| 264.90 | 266.40 | 1.50 | 0.055 | 21.5 | 1805 | 111 | 449
| 266.40 | 267.90 | 1.50 | 0.055 | 72.3 | 5513 | 1384 | 994
| 267.90 | 268.60 | 0.70 | 0.019 | 36.2 | 2832 | 822 | 472
| 268.60 | 269.60 | 1.00 | 0.03 | 30.3 | 4508 | 2056 | 1011
| 269.60 | 271.10 | 1.50 | 0.497 | 171.5 | 7715 | 1479 | 1205
| 271.10 | 272.60 | 1.50 | 0.473 | 408 | 8671 | 1549 | 1309
| 272.60 | 274.10 | 1.50 | 1.938 | 1063 | 22800 | 2598 | 2108
| 274.10 | 275.10 | 1.00 | 0.504 | 191.2 | 8649 | 614 | 739
| 275.10 | 276.00 | 0.90 | 0.048 | 67.8 | 4783 | 826 | 848
| 276.00 | 277.50 | 1.50 | 0.022 | 29.4 | 2166 | 104 | 768
| 277.50 | 279.00 | 1.50 | 0.011 | 4.8 | 691 | 80 | 1462
| 279.00 | 280.50 | 1.50 | 0.023 | 7.5 | 286 | 438 | 1083

ET-12-02
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 78.50 | 79.85 | 1.35 | 0.012 | 1.7 | 897 | 19 | 161
| 79.85 | 80.25 | 0.40 | 0.24 | 29.4 | 883 | 38 | 67
| 80.25 | 81.70 | 1.45 | 0.014 | 4 | 1266 | 33 | 271
| 89.40 | 90.75 | 1.35 | 0.02 | 2.5 | 489 | 20 | 315
| 90.75 | 91.20 | 0.45 | 0.514 | 6 | 480 | 105 | 321
| 91.20 | 91.70 | 0.50 | 0.014 | 2.8 | 510 | 18 | 384
| 275.70 | 276.85 | 1.15 | 0.035 | 5.6 | 1266 | 29 | 397
| 276.85 | 277.30 | 0.45 | 0.419 | 101.1 | 24100 | 328 | 431
| 277.30 | 278.80 | 1.50 | <0.005 | 4.1 | 668 | 34 | 314
| 278.80 | 280.40 | 1.60 | 0.027 | 5.7 | 276 | 309 | 311
| 280.40 | 281.90 | 1.50 | 0.113 | 6.9 | 2165 | 37 | 275
| 281.90 | 283.40 | 1.50 | 0.013 | 4.6 | 1016 | 26 | 443
| 283.40 | 284.35 | 0.95 | 0.137 | 22.6 | 3676 | 43 | 368
| 284.35 | 285.40 | 1.05 | 0.023 | 6 | 651 | 25 | 551
| 285.40 | 286.45 | 1.05 | 0.009 | 2.1 | 108 | 158 | 1839
| 286.45 | 287.25 | 0.80 | 0.123 | 41.3 | 5038 | 127 | 638
| 287.25 | 288.75 | 1.50 | 0.068 | 16 | 2058 | 57 | 764
| 288.75 | 290.25 | 1.50 | 0.024 | 13.6 | 1945 | 55 | 652
| 290.25 | 291.75 | 1.50 | 0.073 | 20.1 | 1212 | 113 | 844
| 291.75 | 293.25 | 1.50 | 0.037 | 22.2 | 705 | 74 | 1331
| 293.25 | 294.50 | 1.25 | 0.097 | 11 | 689 | 125 | 978
| 294.50 | 295.55 | 1.05 | 0.044 | 20.9 | 1502 | 91 | 1192
| 295.55 | 296.00 | 0.45 | 0.07 | 29 | 645 | 272 | 4118
| 296.00 | 297.50 | 1.50 | 0.065 | 13.7 | 431 | 130 | 2074
| 297.50 | 299.00 | 1.50 | 0.165 | 38 | 1661 | 277 | 1036
| 299.00 | 300.50 | 1.50 | 0.045 | 5.4 | 345 | 100 | 1471
| 300.50 | 302.00 | 1.50 | 0.037 | 8.2 | 274 | 69 | 1100
| 302.00 | 303.50 | 1.50 | 0.38 | 30.4 | 980 | 302 | 1288
| 303.50 | 304.80 | 1.30 | 0.174 | 39.6 | 1282 | 196 | 1043
| 304.80 | 306.15 | 1.35 | 0.728 | 80.6 | 1378 | 93 | 1072
| 306.15 | 307.65 | 1.50 | 0.417 | 100.9 | 3686 | 267 | 600
| 307.65 | 309.15 | 1.50 | 0.369 | 192.3 | 8379 | 688 | 462
| 309.15 | 310.65 | 1.50 | 0.253 | 68.3 | 5315 | 297 | 598
| 310.65 | 312.15 | 1.50 | 0.099 | 105.6 | 7368 | 357 | 445
| 312.15 | 313.65 | 1.50 | 0.352 | 46.6 | 7927 | 255 | 633
| 313.65 | 315.15 | 1.50 | 0.079 | 86.3 | 10500 | 477 | 656
| 315.15 | 316.65 | 1.50 | 0.115 | 31.3 | 10100 | 245 | 495
| 316.65 | 318.15 | 1.50 | 0.09 | 22.2 | 6363 | 268 | 364
| 318.15 | 319.05 | 0.90 | 0.053 | 49 | 7453 | 266 | 402
| 319.05 | 320.55 | 1.50 | 0.161 | 118.2 | 12900 | 455 | 306
| 320.55 | 322.05 | 1.50 | 0.188 | 92.1 | 10800 | 546 | 326
| 322.05 | 323.55 | 1.50 | 0.371 | 52.2 | 11700 | 220 | 262
| 323.55 | 325.05 | 1.50 | 0.354 | 47.7 | 11300 | 311 | 295
| 325.05 | 326.55 | 1.50 | 0.19 | 67.5 | 11800 | 214 | 570
| 326.55 | 328.05 | 1.50 | 0.275 | 30.9 | 7033 | 68 | 464
| 328.05 | 329.55 | 1.50 | 0.623 | 106.7 | 11800 | 163 | 467
| 329.55 | 331.05 | 1.50 | 0.394 | 62.8 | 20200 | 179 | 1272
| 331.05 | 332.55 | 1.50 | 0.881 | 49 | 18600 | 132 | 510
| 332.55 | 334.05 | 1.50 | 0.03 | 26.5 | 15000 | 68 | 152
| 334.05 | 335.60 | 1.55 | 0.056 | 154.8 | 8912 | 382 | 586
| 335.60 | 337.10 | 1.50 | 0.006 | 3.2 | 657 | 15 | 568
| 337.10 | 338.60 | 1.50 | 0.007 | 4.1 | 251 | 51 | 308
| 338.60 | 338.90 | 0.30 | 0.28 | 46.3 | 1482 | 4818 | 3578
| 338.90 | 339.80 | 0.90 | 0.02 | 1 | 93 | 58 | 298
| 339.80 | 340.20 | 0.40 | 0.032 | 41 | 13200 | 169 | 623
| 340.20 | 340.55 | 0.35 | 0.006 | 3.7 | 527 | 34 | 768
| 340.55 | 342.00 | 1.45 | <0.005 | 2.3 | 911 | 72 | 487
| 342.00 | 343.45 | 1.45 | <0.005 | 0.1 | 43 | 7 | 410
| 343.45 | 343.95 | 0.50 | 0.006 | 21.5 | 6191 | 56 | 595

ET-12-03
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 77.20 | 78.30 | 1.10 | 0.011 | 0.4 | 206 | 12 | 440
| 78.30 | 79.70 | 1.40 | 0.075 | 2.9 | 482 | 68 | 495
| 79.70 | 80.80 | 1.10 | 0.035 | 3.1 | 633 | 21 | 662
| 80.80 | 81.45 | 0.65 | 0.162 | 2.3 | 1016 | 13 | 407
| 81.45 | 82.55 | 1.10 | 0.051 | 1.3 | 677 | 10 | 388
| 82.55 | 83.70 | 1.15 | 0.638 | 8.5 | 466 | 25 | 244
| 103.75 | 105.10 | 1.35 | 0.027 | <0.1 | 329 | 124 | 1803
| 105.10 | 105.55 | 0.45 | 0.02 | 2.5 | 563 | 918 | 2937
| 105.55 | 106.25 | 0.70 | 0.126 | 20.3 | 590 | 716 | 2750
| 106.25 | 107.70 | 1.45 | 0.031 | 1.6 | 311 | 122 | 2529
| 287.20 | 288.60 | 1.40 | 0.007 | <0.1 | 84 | 7 | 186
| 288.60 | 289.70 | 1.10 | 0.318 | 14.8 | 2641 | 47 | 506
| 289.70 | 291.20 | 1.50 | 0.076 | 2.6 | 840 | 20 | 921
| 291.20 | 292.70 | 1.50 | <0.005 | <0.1 | 76 | 7 | 471
| 292.70 | 294.20 | 1.50 | 0.871 | 33.6 | 2700 | 105 | 418
| 294.20 | 295.70 | 1.50 | 0.008 | 0.3 | 138 | 26 | 408
| 295.70 | 297.20 | 1.50 | 0.033 | 6.2 | 566 | 26 | 333
| 297.20 | 298.70 | 1.50 | 0.014 | 7.3 | 2424 | 52 | 245
| 298.70 | 300.20 | 1.50 | 0.023 | 2.6 | 1297 | 10 | 263
| 300.20 | 301.70 | 1.50 | 0.096 | 10.9 | 1387 | 35 | 388
| 301.70 | 303.20 | 1.50 | <0.005 | <0.1 | 90 | 4 | 304
| 303.20 | 304.70 | 1.50 | <0.005 | 5.8 | 211 | 27 | 473
| 304.70 | 306.20 | 1.50 | 0.059 | 4.5 | 580 | 22 | 493
| 306.20 | 307.70 | 1.50 | 0.011 | 2.8 | 447 | 35 | 683
| 307.70 | 309.20 | 1.50 | 0.058 | 9.4 | 2651 | 314 | 869
| 309.20 | 310.35 | 1.15 | 0.03 | 11 | 1137 | 711 | 910
| 310.35 | 311.15 | 0.80 | <0.005 | 6.9 | 1199 | 1158 | 1838
| 311.15 | 312.65 | 1.50 | 0.062 | 14.5 | 1283 | 463 | 1094
| 312.65 | 314.15 | 1.50 | 0.155 | 1.4 | 391 | 125 | 954
| 314.15 | 315.15 | 1.00 | 0.402 | 8.4 | 993 | 62 | 1282
| 315.15 | 316.25 | 1.10 | 0.023 | <0.1 | 77 | 38 | 1621
| 316.25 | 317.75 | 1.50 | 0.162 | 17.1 | 1793 | 85 | 1178
| 317.75 | 319.25 | 1.50 | 0.169 | 7.5 | 1136 | 87 | 721
| 319.25 | 320.75 | 1.50 | 0.182 | 21.5 | 1384 | 396 | 1021
| 320.75 | 322.25 | 1.50 | 0.547 | 9.6 | 1154 | 103 | 612
| 322.25 | 323.75 | 1.50 | 0.416 | 19.3 | 1860 | 114 | 503
| 323.75 | 325.25 | 1.50 | 0.392 | 18.6 | 2354 | 105 | 490
| 325.25 | 326.75 | 1.50 | 1.051 | 79.7 | 3938 | 486 | 452
| 326.75 | 328.25 | 1.50 | 0.92 | 122.6 | 6603 | 542 | 642
| 328.25 | 329.75 | 1.50 | 0.353 | 31.2 | 1174 | 151 | 294
| 329.75 | 331.25 | 1.50 | 0.413 | 42.4 | 2653 | 154 | 330
| 331.25 | 332.75 | 1.50 | 0.382 | 33.8 | 5646 | 100 | 593
| 332.75 | 334.25 | 1.50 | 0.224 | 29.1 | 8257 | 66 | 509
| 334.25 | 335.75 | 1.50 | 0.1 | 28.1 | 5745 | 80 | 680
| 335.75 | 337.25 | 1.50 | 0.6 | 52.7 | 5941 | 379 | 856
| 337.25 | 338.75 | 1.50 | 1.351 | 180.9 | 14000 | 1089 | 1125
| 338.75 | 340.25 | 1.50 | 0.457 | 194.8 | 7580 | 785 | 1159
| 340.25 | 341.75 | 1.50 | 0.198 | 91 | 5262 | 606 | 872
| 341.75 | 342.95 | 1.20 | 0.085 | 104.3 | 10600 | 1166 | 1045
| 342.95 | 344.15 | 1.20 | 0.171 | 112 | 3822 | 782 | 644
| 344.15 | 345.55 | 1.40 | 0.141 | 165.6 | 943 | 825 | 1060
| 345.55 | 346.30 | 0.75 | 0 | 163.6 | 1893 | 1320 | 3149
| 346.30 | 347.15 | 0.85 | 0.059 | 29.9 | 3232 | 2517 | 2495
| 347.15 | 348.00 | 0.85 | 0.208 | 158.5 | 8943 | 4892 | 2855
| 348.00 | 349.65 | 1.65 | 0.04 | 56.1 | 4920 | 1649 | 3399
| 349.65 | 349.90 | 0.25 | 0.181 | 1034.9 | 103100 | 1290 | 1745
| 349.90 | 351.20 | 1.30 | <0.005 | 0.6 | 93 | 49 | 1270
| 351.20 | 352.50 | 1.30 | <0.005 | <0.1 | 120 | 7 | 1037
| 352.50 | 352.75 | 0.25 | 0.038 | 164.9 | 63700 | 171 | 6780
| 352.75 | 354.35 | 1.60 | <0.005 | 0.2 | 233 | 11 | 489

ET-12-04
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 56.35 | 57.25 | 0.9 | 0.015 | 9.9 | 957 | 67 | 182
| 57.25 | 58.25 | 1 | 0.154 | 27.2 | 1098 | 84 | 180
| 58.25 | 59.4 | 1.15 | 1.184 | 41.3 | 2230 | 970 | 246
| 59.4 | 60.25 | 0.85 | 0.161 | 54.7 | 6228 | 964 | 151
| 60.25 | 60.9 | 0.65 | 0.219 | 104.9 | 2689 | 403 | 457
| 60.9 | 62.2 | 1.3 | 0.01 | 2.1 | 611 | 20 | 82
| 283 | 284.5 | 1.5 | 0 | 2.3 | 459 | 24 | 297
| 284.5 | 284.8 | 0.3 | 1.042 | 735.5 | 23000 | 858 | 497
| 284.8 | 286.3 | 1.5 | 0 | 2.9 | 430 | 18 | 182
| 304.05 | 304.2 | 0.15 | 0.045 | 19.1 | 2897 | 70 | 273
| 304.2 | 305.6 | 1.4 | 0 | 0.4 | 197 | 51 | 928
| 305.6 | 306.45 | 0.85 | 0.008 | 3.8 | 760 | 65 | 1010
| 306.45 | 307.95 | 1.5 | 0.017 | 15.5 | 3848 | 169 | 978
| 307.95 | 309.45 | 1.5 | 0.106 | 46 | 3530 | 280 | 905
| 309.45 | 310.95 | 1.5 | 0 | 10.5 | 227 | 214 | 1343
| 310.95 | 312.45 | 1.5 | 0 | 4 | 515 | 269 | 1429
| 312.45 | 313.45 | 1 | 0.041 | 7.2 | 1586 | 1301 | 1970
| 313.45 | 314.4 | 0.95 | 0.072 | 7.4 | 810 | 1392 | 1130
| 314.4 | 315.9 | 1.5 | 0.275 | 49.7 | 1008 | 431 | 142
| 315.9 | 317.4 | 1.5 | 0.329 | 23 | 2296 | 150 | 47
| 317.4 | 318.9 | 1.5 | 0.34 | 41.9 | 2591 | 370 | 208
| 318.9 | 320.4 | 1.5 | 0.666 | 110.1 | 9866 | 505 | 436
| 320.4 | 321.9 | 1.5 | 0.346 | 163.1 | 6773 | 685 | 621
| 321.9 | 323.4 | 1.5 | 0.52 | 122.4 | 7982 | 1045 | 1032
| 323.4 | 324.9 | 1.5 | 0.358 | 84.3 | 8138 | 1296 | 1251
| 324.9 | 326.4 | 1.5 | 0.327 | 59.9 | 8883 | 754 | 522
| 326.4 | 327.75 | 1.35 | 0.345 | 73.2 | 4446 | 569 | 389
| 327.75 | 329.25 | 1.5 | 0.288 | 60.9 | 6772 | 835 | 725
| 329.25 | 330.75 | 1.5 | 0.138 | 112.5 | 7362 | 1128 | 785
| 330.75 | 332.25 | 1.5 | 0.158 | 69.7 | 7102 | 971 | 655
| 332.25 | 333.4 | 1.15 | 0.197 | 54 | 3685 | 254 | 504
| 333.4 | 334.5 | 1.1 | 0.281 | 25.8 | 6512 | 134 | 703
| 334.5 | 336 | 1.5 | 0.273 | 80.2 | 8858 | 1145 | 650
| 336 | 337.5 | 1.5 | 0.893 | 101.5 | 7996 | 526 | 509
| 337.5 | 339 | 1.5 | 0.614 | 59.8 | 11200 | 798 | 475
| 339 | 340.5 | 1.5 | 0.495 | 90.3 | 12300 | 878 | 774
| 340.5 | 342 | 1.5 | 0.523 | 47.5 | 8229 | 697 | 464
| 342 | 343.5 | 1.5 | 0.666 | 91.3 | 13100 | 862 | 819
| 343.5 | 345 | 1.5 | 0.842 | 58.5 | 4774 | 598 | 1194
| 345 | 346.5 | 1.5 | 0.082 | 11.8 | 891 | 357 | 700
| 346.5 | 348 | 1.5 | 0.071 | 10.4 | 951 | 153 | 553
| 348 | 349.5 | 1.5 | 0.087 | 46.5 | 6583 | 186 | 490
| 349.5 | 351 | 1.5 | 0.041 | 44.8 | 6833 | 125 | 1014
| 351 | 352.5 | 1.5 | 0.04 | 47 | 8750 | 168 | 1145
| 352.5 | 354 | 1.5 | 0.057 | 103.3 | 21100 | 350 | 920
| 354 | 355.4 | 1.4 | 0.276 | 235.1 | 22000 | 1191 | 2970
| 355.4 | 355.8 | 0.4 | 0.053 | 17.4 | 6013 | 386 | 1720
| 355.8 | 357.15 | 1.35 | 0.135 | 100.4 | 10200 | 1426 | 1601
| 357.15 | 357.75 | 0.6 | 0.035 | 44.3 | 1644 | 739 | 1245
| 357.75 | 358.3 | 0.55 | 0.223 | 274.1 | 94700 | 475 | 3703
| 358.3 | 359.5 | 1.2 | 0.056 | 34.8 | 5645 | 47 | 1277
| 359.5 | 360.65 | 1.15 | 0 | 0.9 | 170 | 94 | 534
| 360.65 | 360.9 | 0.25 | 0.088 | 45.6 | 3129 | 1006 | 3936

ET-12-05
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 44.1 | 44.5 | 0.4 | 0.247 | 8.2 | 1028 | 76 | 119
| 47.75 | 49.1 | 1.35 | 0.147 | 7.1 | 1156 | 28 | 523
| 49.1 | 49.55 | 0.45 | 0.342 | 14.6 | 189 | 53 | 104
| 49.55 | 50.65 | 1.1 | 0.743 | 14.5 | 257 | 134 | 92
| 50.65 | 51.65 | 1 | 1.294 | 54.3 | 487 | 84 | 77
| 51.65 | 52.3 | 0.65 | 0.082 | 12.8 | 870 | 125 | 336
| 52.3 | 53.45 | 1.15 | 0.295 | 30.2 | 1816 | 1617 | 889
| 53.45 | 54.15 | 0.7 | 0.106 | 19.2 | 1001 | 1798 | 925
| 54.15 | 55.65 | 1.5 | 0.018 | 5.1 | 458 | 45 | 324
| 314.25 | 314.95 | 0.7 | 0.012 | 7 | 778 | 40 | 774
| 314.95 | 316 | 1.05 | 0.069 | 11.5 | 1267 | 690 | 1780
| 316 | 317.5 | 1.5 | 0.009 | 1 | 480 | 31 | 457
| 317.5 | 319 | 1.5 | 0.006 | 1.2 | 1931 | 38 | 535
| 319 | 320.35 | 1.35 | 0.018 | 20.3 | 1368 | 107 | 529
| 320.35 | 321.1 | 0.75 | 0.211 | 85.7 | 32600 | 238 | 572
| 321.1 | 322.6 | 1.5 | 0.018 | 9.7 | 2349 | 439 | 745
| 322.6 | 323.35 | 0.75 | 0.019 | 26.2 | 1256 | 383 | 874
| 323.35 | 324.15 | 0.8 | 0.148 | 136.4 | 6806 | 4557 | 4058
| 324.15 | 325.4 | 1.25 | 0.485 | 62.5 | 5715 | 407 | 630
| 325.4 | 326.15 | 0.75 | 0.313 | 156.7 | 19700 | 438 | 552
| 326.15 | 327.65 | 1.5 | 0.148 | 32.1 | 1939 | 354 | 314
| 327.65 | 329.15 | 1.5 | 0.71 | 58.3 | 7691 | 297 | 337
| 329.15 | 330.65 | 1.5 | 0.171 | 17.4 | 3278 | 75 | 491
| 330.65 | 332.15 | 1.5 | 0.22 | 38.8 | 4668 | 592 | 623
| 332.15 | 333.65 | 1.5 | 0.128 | 16.2 | 3543 | 74 | 391
| 333.65 | 335.15 | 1.5 | 0.111 | 16.4 | 3387 | 102 | 342
| 335.15 | 336.65 | 1.5 | 0.243 | 47.7 | 4283 | 214 | 403
| 336.65 | 338.15 | 1.5 | 0.331 | 27.9 | 5925 | 90 | 377
| 338.15 | 339.65 | 1.5 | 0.092 | 7.6 | 1386 | 34 | 378
| 339.65 | 341.15 | 1.5 | 0.17 | 32.5 | 3083 | 140 | 428
| 341.15 | 342.65 | 1.5 | 0.051 | 11 | 2569 | 73 | 703
| 342.65 | 344.15 | 1.5 | 0.149 | 55.1 | 3849 | 580 | 1085
| 344.15 | 345.1 | 0.95 | 0.119 | 60.1 | 2437 | 506 | 841
| 345.1 | 345.5 | 0.4 | 48.054 | 1811.3 | 33600 | 2839 | 514
| 345.5 | 345.8 | 0.3 | 28.311 | 346.5 | 12100 | 1316 | 1110
| 345.8 | 347.3 | 1.5 | 0.842 | 138.4 | 6264 | 512 | 1307
| 347.3 | 348.8 | 1.5 | 0.252 | 50.3 | 4351 | 144 | 870
| 348.8 | 350.3 | 1.5 | 0.035 | 20.3 | 5326 | 134 | 1567
| 350.3 | 351.8 | 1.5 | 0.116 | 346.6 | 13000 | 1732 | 1531
| 351.8 | 353.3 | 1.5 | 0.19 | 172 | 11000 | 1426 | 568
| 353.3 | 354.8 | 1.5 | 0.182 | 237.9 | 7285 | 5612 | 18400
| 354.8 | 355.8 | 1 | 0.109 | 186.8 | 8994 | 7449 | 2600
| 355.8 | 356.9 | 1.1 | 0.12 | 293.3 | 5825 | 4873 | 2195
| 356.9 | 358.4 | 1.5 | 0.012 | 5.3 | 1001 | 88 | 992
| 358.4 | 359.9 | 1.5 | <0.005 | <0.1 | 70 | 28 | 1649

ET-12-06
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 36.55 | 37.7 | 1.15 | 0.135 | 5.2 | 695 | 114 | 295
| 37.7 | 39 | 1.3 | 1.989 | 82.4 | 683 | 193 | 91
| 39 | 40.45 | 1.45 | 0.483 | 44.2 | 546 | 297 | 150
| 40.45 | 42.1 | 1.65 | 2.076 | 271.1 | 471 | 391 | 77
| 42.1 | 43.15 | 1.05 | 0.171 | 101.8 | 1296 | 2726 | 514
| 43.15 | 44.6 | 1.45 | 0.026 | 3 | 686 | 993 | 403
| 300.85 | 302.35 | 1.5 | 0.009 | 1.2 | 414 | 84 | 506
| 302.35 | 303.65 | 1.3 | 0.019 | 10.1 | 1989 | 63 | 439
| 303.65 | 305.1 | 1.45 | 0.067 | 18.7 | 3562 | 64 | 312
| 305.1 | 306.2 | 1.1 | <0.005 | 1.5 | 1111 | 45 | 1097
| 306.2 | 307 | 0.8 | <0.005 | 2.9 | 624 | 23 | 1031
| 307 | 308 | 1 | 0.006 | 0.4 | 1083 | 52 | 897
| 346 | 347.5 | 1.5 | <0.005 | 0.2 | 824 | 23 | 501
| 347.5 | 349 | 1.5 | <0.005 | 0 | 870 | 11 | 384
| 349 | 350 | 1.5 | 0.021 | 0 | 747 | 30 | 465
| 350.5 | 352 | 1.5 | 0.048 | 10.2 | 5501 | 193 | 612
| 352 | 353.5 | 1.5 | 0.07 | 3.8 | 2213 | 35 | 427
| 353.5 | 355 | 1.5 | 0.137 | 11.7 | 2903 | 206 | 458
| 355 | 356.5 | 1.5 | 0.053 | 19.9 | 2169 | 161 | 373
| 356.5 | 358 | 1.5 | 0.17 | 6.3 | 2550 | 29 | 404
| 358 | 359.5 | 1.5 | 0.214 | 4.6 | 1391 | 58 | 470
| 359.5 | 361 | 1.5 | 0.042 | 7.5 | 2847 | 26 | 383
| 361 | 362.3 | 1.3 | 0.164 | 13.8 | 3200 | 39 | 390
| 362.3 | 363.25 | 0.95 | 0.1 | 113.5 | 5368 | 536 | 819
| 363.25 | 364.55 | 1.3 | 0.05 | 17.9 | 2488 | 425 | 878
| 364.55 | 365.55 | 1 | 0.014 | 1.3 | 1450 | 34 | 544
| 365.55 | 366 | 0.45 | 0.109 | 25.7 | 23600 | 104 | 771
| 366 | 367.5 | 1.5 | 0.006 | 0 | 1250 | 18 | 393
| 367.5 | 369 | 1.5 | 0.075 | 5.5 | 4134 | 809 | 851
| 369 | 370.15 | 1.15 | 0.023 | 0 | 1768 | 14 | 538
| 370.15 | 371.65 | 1.5 | 0.022 | 6.1 | 4864 | 35 | 396
| 371.65 | 373.15 | 1.5 | 0.025 | 10.1 | 6176 | 26 | 352
| 373.15 | 374.65 | 1.5 | 0.011 | 7.1 | 3538 | 31 | 431
| 374.65 | 376.15 | 1.5 | 0.012 | 3.2 | 3839 | 20 | 341
| 376.15 | 377.55 | 1.4 | 0.006 | 1.1 | 2125 | 30 | 248
| 377.55 | 379.1 | 1.55 | 0.016 | 13.9 | 5945 | 34 | 374
| 379.1 | 380.6 | 1.5 | 0.009 | 12.4 | 3641 | 41 | 374
| 380.6 | 382.15 | 1.55 | 0.066 | 143.1 | 10500 | 249 | 641
| 382.15 | 383.25 | 1.1 | 0.03 | 90.2 | 16700 | 463 | 806
| 383.25 | 384.35 | 1.1 | 0.081 | 371 | 28100 | 5031 | 3196
| 384.35 | 385.3 | 0.95 | 0.112 | 401.6 | 12700 | 5407 | 1677
| 385.3 | 386 | 0.7 | 0.254 | 152.5 | 3007 | 738 | 370
| 386 | 387.15 | 1.15 | 0.114 | 133.9 | 5127 | 394 | 322
| 387.15 | 388.65 | 1.5 | 0.17 | 469.9 | 4283 | 6127 | 575
| 388.65 | 390.1 | 1.45 | 0.074 | 55.4 | 2458 | 1268 | 2394
| 390.1 | 391.2 | 1.1 | 0.007 | 0.4 | 169 | 19 | 575

| 2006-2008 Elena Tolosa Zone drill results

ET-08-08 | Intersected the main Avino vein 192.95-203.5m (10.3m), gold & silver values were low
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 192.95 | 194.45 | 1.5 | 1.456 | 4.6 | 318 | 57 | 508
| 194.45 | 195.95 | 1.5 | 0.431 | 4.4 | 329 | 256 | 502
| 195.95 | 197.1 | 1.15 | 0.325 | 13.5 | 1523 | 2446 | 3813
| 197.1 | 198.6 | 1.5 | 0.1 | 2.5 | 133 | 355 | 1688
Main Avino Vein | 198.6 | 199.7 | 1.1 | 0.048 | 4.4 | 101 | 36 | 1206
| 199.7 | 200.8 | 1.1 | 0.046 | 5.7 | 69 | 72 | 896
| 200.8 | 201.75 | 0.95 | 0.203 | 27.2 | 120 | 301 | 627
| 201.75 | 203.25 | 1.5 | 0.03 | 6.5 | 431 | 43 | 1048

ET-08-07 | Drilled 150m east of ET 08-04 it did not intersect the Avino vein
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn(ppm)

ET-08-06 | Intersected the Avino vein 237.6-288,7m (51.1m), Au & Ag values were low, copper of interest
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn(ppm)
| 237.6 | 238.25 | 0.65 | 0.14 | 74.2 | 3526 | 7260 | 909
| 238.25 | 239.75 | 1.5 | 0.065 | 22.4 | 2260 | 344 | 383
| 239.75 | 241.25 | 1.5 | 0.02 | 8.7 | 883 | 43 | 528
| 241.25 | 242.75 | 1.5 | 0.115 | 10.1 | 2249 | 374 | 1981
| 242.75 | 244.25 | 1.5 | 0.045 | 8.7 | 2641 | 40 | 631
| 244.25 | 245.75 | 1.5 | 0.105 | 14.4 | 3472 | 87 | 651
| 245.75 | 247.25 | 1.5 | 0.072 | 17.1 | 4780 | 41 | 876
| 247.25 | 248.75 | 1.5 | 0.053 | 20.5 | 6107 | 100 | 950
| 248.75 | 250.25 | 1.5 | 0.1 | 11 | 4619 | 191 | 1044
| 250.25 | 251.75 | 1.5 | 0.12 | 10.4 | 4869 | 282 | 784
| 251.75 | 253.25 | 1.5 | 0.035 | 4 | 1261 | 45 | 662
| 253.25 | 254.75 | 1.5 | 0.163 | 14.9 | 2553 | 78 | 835
| 254.75 | 256.25 | 1.5 | 0.045 | 25.4 | 6483 | 95 | 734
| 256.25 | 257.75 | 1.5 | 0.015 | 12 | 5544 | 40 | 871
| 257.75 | 259.25 | 1.5 | 0.025 | 39.8 | 5758 | 217 | 521
| 259.25 | 260.75 | 1.5 | 0.025 | 20.6 | 6136 | 89 | 465
Main Avino Vein | 260.75 | 262.25 | 1.5 | 0.015 | 10.5 | 3202 | 74 | 327
| 262.25 | 263.75 | 1.5 | 0.059 | 24 | 3670 | 105 | 533
| 263.75 | 265.25 | 1.5 | 0.049 | 28.7 | 3252 | 183 | 718
| 265.25 | 266.75 | 1.5 | 0.053 | 14.2 | 6129 | 112 | 584
| 266.75 | 268.25 | 1.5 | 0.156 | 47.3 | 7192 | 217 | 399
| 268.25 | 269.75 | 1.5 | 0.102 | 19.8 | 3342 | 125 | 326
| 269.75 | 271.25 | 1.5 | 0.03 | 9.1 | 4101 | 38 | 414
| 271.25 | 272.75 | 1.5 | 0.01 | 9.3 | 2611 | 94 | 455
| 272.75 | 274.25 | 1.5 | 0.02 | 7.9 | 3355 | 41 | 391
| 274.25 | 275.75 | 1.5 | 0.02 | 16.5 | 4405 | 58 | 496
| 275.75 | 277.25 | 1.5 | 0.076 | 82.7 | 4570 | 422 | 979
| 277.25 | 278.75 | 1.5 | 0.084 | 58.4 | 5545 | 956 | 593
| 278.75 | 280.25 | 1.5 | 0.01 | 16.6 | 5749 | 74 | 659
| 280.25 | 281.75 | 1.5 | 0.02 | 18.7 | 4592 | 68 | 575
| 281.75 | 283.25 | 1.5 | 0.015 | 16.1 | 4219 | 74 | 651
| 283.25 | 284.75 | 1.5 | 0.038 | 23.6 | 3526 | 7260 | 909
Main Avino Vein | 284.75 | 286.25 | 1.5 | <0.005 | 6.7 | 2841 | 22 | 1225
| 286.25 | 287.75 | 1.5 | 0.092 | 49.4 | 25700 | 44 | 2712
| 287.75 | 288.7 | 0.95 | 0.105 | 62.5 | 27200 | 57 | 2669

ET-08-05 | Intersected the Avino vein 29335-302.7 (9.35m) low Au & Ag, copper values are of interest
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 290.95 | 292.3 | 1.35 | 0.172 | 16.7 | 533 | 3964 | 643
| 292.3 | 293.35 | 1.05 | 0.096 | 0.5 | 581 | 5078 | 2842
| 293.35 | 294.85 | 1.5 | 0.379 | 30.8 | 2116 | 8000 | 559
| 294.85 | 296.35 | 1.5 | 0.05 | 12.3 | 2654 | 7063 | 582
Main Avino Vein | 296.35 | 297.6 | 1.25 | 0.568 | 67.3 | 3564 | 3688 | 164
| 297.6 | 299.1 | 1.5 | 0.062 | 42.4 | 5360 | 1771 | 688
| 299.1 | 300.6 | 1.5 | 0.02 | 31.8 | 14900 | 896 | 3473
| 300.6 | 301.7 | 1.1 | 0.06 | 34.4 | 11300 | 282 | 1743
| 301.7 | 302.7 | 1 | 0.13 | 44.2 | 10000 | 469 | 1265

ET-08-04 | Intersected the Avino Vein from 321-341.1m (20.1m) 128 g/t Ag, 0.04 g/t Au
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn(ppm)
| 307.5 | 308.6 | 1.1 | 0.02 | 6.6 | 594 | 434 | 1291
| 308.6 | 309.9 | 1.3 | 0.034 | 0.3 | 43 | 203 | 272
| 311.9 | 312.6 | 0.7 | 0.115 | 27.2 | 2661 | 635 | 1330
| 315 | 316.5 | 1.5 | 0.063 | 9.3 | 1558 | 257 | 1115
| 316.5 | 318 | 1.5 | 0.065 | 19.1 | 4899 | 367 | 1122
| 318 | 319.5 | 1.5 | 0.04 | 13 | 900 | 441 | 1265
| 319.5 | 321 | 1.5 | 0.071 | 12.7 | 1765 | 400 | 846
| 321 | 322.5 | 1.5 | 0.501 | 34.2 | 2378 | 264 | 426
| 322 | 324 | 2 | 1.146 | 71 | 3147 | 421 | 496
| 324 | 325.5 | 1.5 | 0.904 | 55.2 | 4652 | 230 | 288
| 325.5 | 327 | 1.5 | 0.262 | 54.9 | 1395 | 203 | 236
| 327 | 328.5 | 1.5 | 2.174 | 165 | 8408 | 509 | 286
| 328.5 | 330 | 1.5 | 0.173 | 101.9 | 7194 | 8582 | 3727
| 330 | 331.5 | 1.5 | 0.053 | 56 | 4926 | 5923 | 18300
| 331.5 | 333 | 1.5 | 0.095 | 54.9 | 4081 | 2559 | 561
| 333 | 334 | 1 | 0.08 | 23.1 | 1089 | 1199 | 301
| 334 | 336 | 2 | 0.052 | 56.6 | 11000 | 536 | 597
| 336 | 337.5 | 1.5 | 0.03 | 49.7 | 10900 | 170 | 618
| 337 | 339 | 2 | 0.032 | 156.6 | 14700 | 395 | 853
| 339 | 340 | 1 | 0.025 | 48.4 | 6149 | 174 | 595
| 340 | 341.1 | 1.1 | 0.064 | 161.8 | 8252 | 2170 | 1765
| 341 | 342.6 | 1.6 | 0.042 | 38.4 | 2734 | 662 | 1564
| 342.63 | 344.1 | 1.47 | 0.025 | 34 | 8428 | 193 | 1194
| 344.1 | 345.6 | 1.5 | 0.082 | 14.4 | 7693 | 109 | 826
| 345.6 | 347.1 | 1.5 | 0.086 | 13.4 | 3645 | 113 | 435
| 347.1 | 348.6 | 1.5 | 0.025 | 6.5 | 2553 | 51 | 203
| 348.6 | 350.1 | 1.5 | <0.005 | 3.2 | 2505 | 9 | 379
| 350 | 351.6 | 1.6 | 0.058 | 68.5 | 254 | 415 | 369
| 351.6 | 352.7 | 1.1 | 0.01 | 5.4 | 657 | 25 | 276

ET-08-03
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn(ppm)
| 79.75 | 80.4 | 0.65 | 0.02 | 14.7 | 409 | 40 | 2080
| 80.4 | 81.9 | 1.5 | 1.396 | 48 | 2641 | 148 | 435
| 81.9 | 83.2 | 1.3 | 6.72 | 174.4 | 2456 | 327 | 21
| 83.2 | 84.5 | 1.3 | 3.703 | 96.4 | 1815 | 818 | 94
| 84.5 | 85.7 | 1.2 | 0.11 | 8.9 | 315 | 241 | 217
| 192.25 | 193.75 | 1.5 | 0.275 | 24.6 | 257 | 618 | 318
| 193.75 | 195.2 | 1.45 | 0.458 | 20.4 | 1528 | 298 | 330
| 195.2 | 196.7 | 1.5 | 0.185 | 11.5 | 405 | 253 | 275
| 196.7 | 198.3 | 1.6 | 0.294 | 40.4 | 760 | 449 | 147
| 198.3 | 199.65 | 1.35 | 0.145 | 29.7 | 520 | 687 | 391
| 199.65 | 200.95 | 1.3 | 0.065 | 20.1 | 1592 | 5318 | 570
| 200.95 | 202.45 | 1.5 | 0.087 | 0.3 | 631 | 331 | 750
| 202.45 | 203.95 | 1.5 | 0.082 | 3.8 | 432 | 167 | 487
| 212.8 | 213.8 | 1 | 0.162 | 4.9 | 517 | 1910 | 584
| 213.8 | 214.55 | 0.75 | 0.02 | 4.5 | 484 | 4282 | 3006
| 214.55 | 216.05 | 1.5 | 0.135 | 21.2 | 490 | 301 | 1090
| 216.05 | 217.55 | 1.5 | 0.109 | 40.8 | 393 | 893 | 489
| 217.55 | 219.05 | 1.5 | 3.017 | 113.2 | 1830 | 1120 | 636
| 219.05 | 220.55 | 1.5 | 0.096 | 7.9 | 1170 | 229 | 989
| 220.55 | 222.05 | 1.5 | 0.025 | 8.8 | 967 | 307 | 668
| 222.05 | 223.55 | 1.5 | 0.128 | 11.9 | 1546 | 117 | 585
| 223.55 | 225.05 | 1.5 | 0.049 | 9.6 | 1875 | 229 | 671
| 225.05 | 226.05 | 1 | 0.105 | 8.4 | 1269 | 122 | 641
| 226.55 | 228.05 | 1.5 | 0.084 | 21.1 | 499 | 1455 | 1210
| 228.05 | 229.55 | 1.5 | 0.1 | 21.7 | 272 | 441 | 784
| 229.55 | 231.05 | 1.5 | 0.723 | 82.3 | 2988 | 596 | 599
| 231.05 | 232.55 | 1.5 | 1.31 | 94.9 | 3753 | 565 | 674
| 232.55 | 234.05 | 1.5 | 1.89 | 58.4 | 574 | 474 | 619
| 234.05 | 235.55 | 1.5 | 1.658 | 69.1 | 1117 | 412 | 687
| 235.55 | 237.05 | 1.5 | 2.756 | 53 | 2590 | 396 | 711
| 237.05 | 238.55 | 1.5 | 1.065 | 28.7 | 1816 | 280 | 410
| 238.55 | 240.05 | 1.5 | 0.219 | 66.5 | 1263 | 916 | 416
| 240.05 | 241.55 | 1.5 | 0.185 | 45.3 | 369 | 191 | 424
| 241.55 | 243.05 | 1.5 | 0.167 | 42 | 1220 | 482 | 438
| 243.05 | 244.55 | 1.5 | 0.382 | 48.1 | 8097 | 525 | 2111
| 244.55 | 246.05 | 1.5 | 0.648 | 60.7 | 1638 | 766 | 716
| 246.05 | 247.55 | 1.5 | 0.506 | 49.7 | 1311 | 549 | 415
| 247.55 | 249.05 | 1.5 | 0.125 | 39.7 | 1343 | 911 | 475
| 249.05 | 250.55 | 1.5 | 0.16 | 78.1 | 3430 | 790 | 737
| 250.55 | 252.05 | 1.5 | 0.135 | 92.9 | 3617 | 551 | 506
| 252.05 | 253.55 | 1.5 | 0.13 | 44.4 | 5739 | 351 | 603
| 253.55 | 255.05 | 1.5 | 0.07 | 42.6 | 3395 | 796 | 357
| 255.05 | 256.55 | 1.5 | 0.045 | 30 | 2971 | 365 | 374
| 256.55 | 257.85 | 1.3 | 0.025 | 31.4 | 5772 | 1510 | 686
| 257.85 | 259.35 | 1.5 | <0.005 | <0.1 | 133 | 374 | 1041
| 259.35 | 260.85 | 1.5 | <0.005 | 2.6 | 469 | 114 | 935
| 260.85 | 262.35 | 1.5 | <0.005 | 1.1 | 457 | 94 | 1548

ET-08-02
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn(ppm)
| 68.4 | 70.2 | 1.8 | <0.005 | 91.6 | 1008 | 196 | 324
| 70.2 | 71 | 0.8 | 0.342 | 1.3 | 326 | 149 | 3386
| 71 | 72.2 | 1.2 | 0.065 | 11.1 | 1480 | 53 | 922
| 72.2 | 73.3 | 1.1 | 0.981 | 130 | 1150 | 472 | 192
| 73.3 | 74.4 | 1.1 | 0.931 | 72.9 | 321 | 237 | 69
| 74.4 | 75.1 | 0.7 | 0.026 | 4.8 | 1082 | 127 | 924
| 164.55 | 166.15 | 1.6 | 0.065 | 33.4 | 3343 | 2393 | 688
| 166.15 | 166.85 | 0.7 | 0.115 | 16.5 | 2433 | 740 | 329
| 166.85 | 167.5 | 0.65 | 0.614 | 35.8 | 354 | 301 | 176
| 170.05 | 170.4 | 0.35 | 0.276 | 39.4 | 2779 | 359 | 462
| 178.55 | 179.5 | 0.95 | 0.281 | 24.9 | 383 | 102 | 1900
| 185.55 | 186.75 | 1.2 | 0.236 | 2.4 | 82 | 41 | 2177
| 186.75 | 188.25 | 1.5 | 0.215 | 6.4 | 138 | 50 | 1358
| 188.25 | 189.75 | 1.5 | 0.585 | 8.6 | 766 | 561 | 1079
| 189.75 | 191.25 | 1.5 | 2.635 | 19.4 | 692 | 724 | 817
| 191.25 | 192.75 | 1.5 | 3.225 | 12 | 113 | 95 | 612
| 192.75 | 194.25 | 1.5 | 2.08 | 27.7 | 224 | 125 | 595
| 194.25 | 195.75 | 1.5 | <0.005 | 40.5 | 1734 | 454 | 847
| 195.75 | 197.25 | 1.5 | <0.005 | 3.4 | 28 | 184 | 1074
| 197.25 | 198.75 | 1.5 | <0.005 | 4 | 42 | 168 | 690
| 198.75 | 200.25 | 1.5 | <0.005 | 4.9 | 201 | 352 | 1042
| 200.25 | 201.75 | 1.5 | <0.005 | 10.6 | 276 | 162 | 670
| 201.75 | 203.25 | 1.5 | <0.005 | 20.3 | 68 | 320 | 1091
| 203.25 | 204.75 | 1.5 | 0.035 | 12.7 | 226 | 413 | 871
| 204.75 | 206.25 | 1.5 | <0.005 | 32.2 | 751 | 317 | 530
| 206.25 | 207.75 | 1.5 | <0.005 | 8.5 | 1200 | 83 | 410
| 207.75 | 209.25 | 1.5 | <0.005 | 10.3 | 957 | 134 | 660
| 209.25 | 210.75 | 1.5 | <0.005 | 25.5 | 1180 | 185 | 522
| 210.75 | 212.25 | 1.5 | <0.005 | 22.9 | 2220 | 423 | 3806
| 212.25 | 213.5 | 1.25 | <0.005 | 36.9 | 400 | 473 | 2021
| 213.5 | 215 | 1.5 | <0.005 | 3.1 | 217 | 85 | 1775
| 215 | 216.5 | 1.5 | <0.005 | 21.1 | 2919 | 365 | 2243
| 216.5 | 218 | 1.5 | <0.005 | 0.4 | 118 | 33 | 3004
| 218 | 219.5 | 1.5 | <0.005 | 1.1 | 66 | 34 | 2246
| 219.5 | 221 | 1.5 | 0.136 | 8.1 | 145 | 126 | 905

ET-08-01
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 84.35 | 85.05 | 0.7 | 0.045 | 43.3 | 8621 | 168 | 240
| 192.95 | 194.4 | 1.45 | 0.02 | 2.6 | 64 | 49 | 1029
| 194.4 | 195.4 | 1 | 0.084 | 6 | 738 | 670 | 1076
| 195.4 | 196.9 | 1.5 | 0.125 | 5 | 263 | 267 | 2706
| 196.9 | 198.4 | 1.5 | 0.322 | 3.6 | 259 | 149 | 719
| 198.4 | 199.9 | 1.5 | 0.02 | 7.8 | 97 | 68 | 554
| 199.9 | 201.4 | 1.5 | 0.054 | 5.2 | 331 | 180 | 665
| 201.4 | 202.9 | 1.5 | <0.005 | 2.4 | 306 | 45 | 2079
| 202.9 | 204.4 | 1.5 | 0.09 | 1.6 | 271 | 54 | 5950
| 204.4 | 205.9 | 1.5 | 0.005 | 0.6 | 456 | 25 | 2784
| 205.9 | 207.4 | 1.5 | <0.005 | 0.8 | 168 | 16 | 4381
| 207.4 | 208.9 | 1.5 | <0.005 | 0.8 | 229 | 18 | 2361
| 208.9 | 210.4 | 1.5 | 0.04 | 1.3 | 178 | 34 | 3494
| 210.4 | 211.9 | 1.5 | 0.015 | 0.3 | 320 | 23 | 2502
| 211.9 | 213.4 | 1.5 | 0.005 | 3 | 621 | 29 | 3857
| 213.4 | 214.3 | 0.9 | 0.005 | 1.6 | 1134 | 479 | 3560
| 214.3 | 216.25 | 1.95 | 0.015 | 10.4 | 1452 | 1308 | 3269
| 216.25 | 217.75 | 1.5 | <0.005 | 4.1 | 1732 | 2163 | 2690
| 217.75 | 219.25 | 1.5 | <0.005 | 12.2 | 1563 | 2077 | 1292
| 219.25 | 220.75 | 1.5 | 0.044 | 9.4 | 913 | 1562 | 1029
| 220.75 | 221.49 | 0.74 | <0.005 | 19.9 | 1993 | 1896 | 4123

ET-07-010 | Bearing 336 Dip -63 Length 308.7m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino quartz vein with sulphides | 257.3 | 258.8 | 1.5 | 0.16 | 85.3 | 15700
Avino quartz vein with sulphides | 258.8 | 260.3 | 1.5 | 0.08 | 86.6 | 23400
Avino quartz vein with sulphides | 260.3 | 261.8 | 1.5 | 0.125 | 27.7 | 14100
Avino quartz vein with sulphides | 261.8 | 263.3 | 1.5 | 0.101 | 21.8 | 15400
Avino quartz vein with sulphides | 263.3 | 264.8 | 1.5 | 0.098 | 20.3 | 13500
Avino quartz vein with sulphides | 266.3 | 267.8 | 1.5 | 0.574 | 43.4 | 6613
Avino quartz vein with sulphides | 267.8 | 269.3 | 1.5 | 0.457 | 39.8 | 4211
Avino quartz vein with sulphides | 269.3 | 270.8 | 1.5 | 0.089 | 19.3 | 15200
Avino quartz vein with sulphides | 282.8 | 284.3 | 1.5 | 0.02 | 9.3 | 16000
Avino quartz vein with sulphides | 284.3 | 285.8 | 1.5 | 0.01 | 10.2 | 19300
Avino quartz vein with sulphides | 285.8 | 287.3 | 1.5 | 0.035 | 27 | 31600
Avino quartz vein with sulphides | 287.3 | 288.8 | 1.5 | 0.07 | 37.4 | 21500
Avino quartz vein with sulphides | 288.8 | 290.3 | 1.5 | 0.049 | 27.1 | 34200
Avino quartz vein with sulphides | 290.3 | 291.8 | 1.5 | 0.065 | 51.3 | 72600
Avino quartz vein with sulphides | 291.8 | 293.3 | 1.5 | 0.02 | 14.8 | 33300
Avino quartz vein with sulphides | 293.3 | 294.8 | 1.5 | 0.335 | 28.8 | 15000
Avino quartz vein with sulphides | 294.8 | 295.8 | 1 | 0.035 | 23.2 | 17200
Avino quartz vein with sulphides | 295.8 | 297.3 | 1.5 | 1.31 | 37.9 | 16100
Avino quartz vein with sulphides | 297.3 | 299.1 | 1.8 | 0.51 | 51.5 | 7570

ET-07-09 | Bearing 336 Dip -62 Length 328.6m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino vein with massive chalopyrite | 290.8 | 292.3 | 1.5 | 0.04 | 101.9 | 12100
Avino vein with massive chalopyrite | 292.3 | 293.8 | 1.5 | 0.16 | 0.69 | 11500
Avino vein with massive chalopyrite | 295.3 | 296.8 | 1.5 | 0.146 | 0.94 | 11200
Avino vein with massive chalopyrite | 299.8 | 301.3 | 1.5 | 0.07 | 1.49 | 6327
Avino vein with massive chalopyrite | 301.3 | 302.8 | 1.5 | 0.36 | 1.18 | 14600
Avino vein with massive chalopyrite | 302.8 | 304.3 | 1.5 | 0.015 | 0.53 | 8029
Avino vein with massive chalopyrite | 304.3 | 305.8 | 1.5 | 0.02 | 0.82 | 8475

ET-07-08 | Bearing 346.65 Dip -69 Length 339.7m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino vein. Moderate diss cpy-py | 355.85 | 357.35 | 1.5 | 0.111 | 257.5 | 6959
Avino vein. Moderate diss cpy-py | 357.35 | 359.15 | 1.8 | 0.125 | 170 | 9341

ET-07-07 | Bearing 330 Dip -59 Length 304.85m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 272.3 | 273.8 | 1.5 | 0.615 | 80.6 | 2199
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 273.8 | 275.3 | 1.5 | 0.148 | 160.9 | 20500
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 275.3 | 276.8 | 1.5 | 0.118 | 203.5 | 19700
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 276.8 | 278.3 | 1.5 | 0.28 | 172.8 | 17800
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 278.3 | 279.8 | 1.5 | 0.368 | 441.4 | 24600
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 279.8 | 281.3 | 1.5 | 0.22 | 327 | 12600
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 281.3 | 282.8 | 1.5 | 0.081 | 110.8 | 3002
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 282.8 | 284.3 | 1.5 | 0.065 | 184.6 | 3317
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 284.3 | 285.8 | 1.5 | 0.07 | 89.2 | 8786
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 285.8 | 287.3 | 1.5 | 0.07 | 209.3 | 54400
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 287.3 | 288.8 | 1.5 | 0.035 | 32.8 | 13200
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 288.8 | 290.3 | 1.5 | 0.047 | 76.1 | 29300
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 290.3 | 291.8 | 1.5 | 0.126 | 339.7 | 44300
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 291.8 | 293.3 | 1.5 | 0.06 | 20.8 | 6361
Avino Vein. Wh qtz veining w/moderate diss cpy and str | 293.3 | 295.15 | 1.85 | 0.202 | 166.9 | 55500

ET-07-06 | Bearing 336 Dip -55 Length 320.05m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino vein Wh qtz stockwork veining textures w'diss py- | 289 | 290.5 | 1.5 | 0.95 | 228.9 | 23200
Avino vein Wh qtz stockwork veining textures w'diss py- | 298 | 299.5 | 1.5 | 0.165 | 72.3 | 14800
Avino vein Wh qtz stockwork veining textures w'diss py- | 299.5 | 301 | 1.5 | 0.485 | 54.6 | 8401
Avino vein Wh qtz stockwork veining textures w'diss py- | 301 | 302.5 | 1.5 | 0.09 | 40.8 | 11500
Avino vein Wh qtz stockwork veining textures w'diss py- | 302.5 | 304 | 1.5 | 0.147 | 55.6 | 14400
Avino vein Wh qtz stockwork veining textures w'diss py- | 304 | 305.5 | 1.5 | 0.093 | 55.8 | 8321
Avino vein Wh qtz stockwork veining textures w'diss py- | 305.5 | 307 | 1.5 | 1.59 | 90.4 | 15100
Avino vein Wh qtz stockwork veining textures w'diss py- | 307 | 308.6 | 1.5 | 0.15 | 73.8 | 8729
Intrusive rock. Wh qtz veining w/cpy | 308.6 | 310.1 | 1.5 | 0.04 | 54.6 | 5962
Intrusive rock. Wh qtz veining w/cpy | 310.1 | 311.6 | 1.5 | 0.075 | 98 | 6217
Intrusive rock. Wh qtz veining w/cpy | 311.6 | 313.1 | 1.5 | 0.075 | 81.9 | 10800
Intrusive rock. Wh qtz veining w/cpy | 313.1 | 314.6 | 1.5 | 0.04 | 97.9 | 7765

ET-07-05 | Bearing 333 Dip -66 Length 351.5m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 301.95 | 303.45 | 1.5 | 1.152 | 83 | 1971
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 303.45 | 304.95 | 1.5 | 1.483 | 26.7 | 683
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 304.95 | 306.45 | 1.5 | 2.119 | 36.9 | 2030
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 312.45 | 312.95 | 0.5 | 1.752 | 10.7 | 533
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 312.95 | 315.45 | 2.5 | 1.015 | 119.7 | 1268
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 315.45 | 316.95 | 1.5 | 0.195 | 204.2 | 8565
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 316.95 | 318.45 | 1.5 | 0.075 | 123.6 | 2212
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 319.95 | 321.45 | 1.5 | 0.155 | 86.2 | 20300
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 321.45 | 322.95 | 1.5 | 0.12 | 30.4 | 13000
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 322.95 | 324.45 | 1.5 | 0.115 | 45.2 | 15400
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 324.45 | 325.95 | 1.5 | 0.075 | 40.2 | 18400
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 325.95 | 327.45 | 1.5 | 0.07 | 27.5 | 10200
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 327.45 | 328.95 | 1.5 | 0.05 | 48.1 | 17500
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 328.95 | 330.45 | 1.5 | 0.053 | 38.2 | 16700
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 330.45 | 331.95 | 1.5 | 0.095 | 61.9 | 20200
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 331.95 | 333.45 | 1.5 | 0.144 | 75.2 | 18900
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 333.45 | 334.95 | 1.5 | 0.13 | 45.7 | 15800
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 337.95 | 339.45 | 1.5 | 0.328 | 69 | 12200
Avino vein. Wh qtz stkwk-veining w/diss f.g cpy+py+spec | 339.45 | 340.95 | 1.5 | 0.236 | 41 | 12200
ET-07-04 | Bearing 331 Dip -56 Length 318.7m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 271.45 | 272.95 | 1.5 | 0.155 | 44.1 | 3618
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 272.95 | 274.45 | 1.5 | 0.397 | 106.1 | 2842
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 274.45 | 275.95 | 1.5 | 1.08 | 76.1 | 3862
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 275.95 | 277.45 | 1.5 | 1.314 | 126.9 | 4010
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 277.45 | 278.95 | 1.5 | 0.874 | 53 | 381
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 278.95 | 280.45 | 1.5 | 0.534 | 61.4 | 675
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 280.45 | 281.95 | 1.5 | 0.436 | 97.3 | 2649
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 287.95 | 289.45 | 1.5 | 0.25 | 63.5 | 7555
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 289.45 | 290.95 | 1.5 | 0.101 | 31.4 | 5156
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 290.95 | 292.45 | 1.5 | 1.115 | 138.6 | 3558
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 292.45 | 293.95 | 1.5 | 0.151 | 86.3 | 4162
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 293.95 | 295.45 | 1.5 | 0.161 | 34.9 | 3521
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 295.45 | 296.95 | 1.5 | 0.568 | 41.6 | 5047
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 296.95 | 298.45 | 1.5 | 0.115 | 29.1 | 10000
Avino Vein. Wh qtz veining w/ fine grain diss cpy-py | 298.45 | 300.1 | 1.65 | 0.08 | 29.8 | 8408

ET-07-03 | Bearing 336 Dip -71 Length 349.5
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu g/t
Avino vein. Oxidized material | 280.75 | 282.25 | 1.5 | 7.68 | 121.9 | 6048
Avino vein. Oxidized material | 282.25 | 283.75 | 1.5 | 6.034 | 196.3 | 5034
Avino vein. Oxidized material | 283.75 | 285.25 | 1.5 | 1.692 | 69.9 | 10400
Avino vein. Oxidized material | 285.25 | 286.75 | 1.5 | 13.988 | 295.3 | 19600
Avino vein. Oxidized material | 286.75 | 288.25 | 1.5 | 4.731 | 104.7 | 16100
Avino vein. Oxidized material | 288.25 | 289.75 | 1.5 | 2.158 | 103.7 | 3948
Avino vein. Oxidized material | 289.75 | 291.25 | 1.5 | 0.158 | 31.5 | 3789
Avino vein. Oxidized material | 291.25 | 292.75 | 1.5 | 2.411 | 60 | 2683
Avino vein. Oxidized material | 292.75 | 294.25 | 1.5 | 2.733 | 27.5 | 2793
Avino vein. Oxidized material | 294.25 | 295.75 | 1.5 | 0.548 | 89.6 | 7268
Avino vein. Silicified quartz with diss cpy-py-specularite | 295.75 | 297.25 | 1.5 | 3.086 | 161.8 | 5934
Avino vein. Silicified quartz with diss cpy-py-specularite | 297.25 | 298.75 | 1.5 | 7.954 | 75.7 | 1476
Avino vein. Silicified quartz with diss cpy-py-specularite | 298.75 | 300.25 | 1.5 | 2.265 | 97 | 10500
Avino vein. Silicified quartz with diss cpy-py-specularite | 300.25 | 301.75 | 1.5 | 1.057 | 60.4 | 1486
Avino vein. Silicified quartz with diss cpy-py-specularite | 301.75 | 303.25 | 1.5 | 1.911 | 42 | 3258
ET-07-02 | Bearing 358 - Dip 75 - Length 311.9m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (g/t)
no significant assays |  |  |  |  |  |
ET-07-01 | Bearing 1 Dip -69 Length 298.6m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (g/t)
Avino Vein. Silicified quart with diss cpy-py-specularite | 284.9 | 285.85 | 0.95 | 0.068 | 201.7 | 3149
Avino Vein. Silicified quart with diss cpy-py-specularite | 285.85 | 286.8 | 0.95 | 0.025 | 35.4 | 969
Avino Vein. Silicified quart with diss cpy-py-specularite | 286.8 | 287 | 0.2 | 0.226 | 808.8 | 100200
Avino Vein. Silicified quart with diss cpy-py-specularite | 287 | 288.5 | 1.5 | 0.045 | 27.3 | 2540
Avino Vein. Silicified quart with diss cpy-py-specularite | 288 | 290 | 1.5 | 0.052 | 101.6 | 10000
ET-06-04 | Bearing 340 Dip -50 Length 444.05m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (g/t)
Avino Vein | 272.4 | 273.4 | 1.00 | 0.35 | 8.0 | 900
Avino Vein | 273.4 | 274.4 | 1.00 | 0.004 | 0.5 | 30
Avino Vein | 274.4 | 275.4 | 1.00 | 0.004 | 6.4 | 780
Avino Vein | 275.4 | 276.4 | 1.00 | 0.004 | 1.4 | 63
Avino Vein | 276.4 | 277.4 | 1.00 | 0.004 | 4.5 | 430
Avino Vein | 277.4 | 278.4 | 1.00 | 0.004 | 1.0 | 51
Avino Vein | 278.4 | 279.4 | 1.00 | 0.05 | 5.1 | 235
Avino Vein | 279.4 | 280.4 | 1.00 | 0.004 | 1.3 | 77
Avino Vein | 280.4 | 281.4 | 1.00 | 0.04 | 4.2 | 223
Avino Vein | 281.4 | 282.4 | 1.00 | 0.015 | 2.6 | 185
Avino Vein | 282.4 | 283.4 | 1.00 | 0.059 | 12.0 | 1710
Avino Vein | 283.4 | 284.4 | 1.00 | 0.01 | 1.2 | 111
Avino Vein | 284.4 | 285.4 | 1.00 | 0.196 | 28.1 | 5900
Avino Vein | 285.4 | 286.4 | 1.00 | 0.035 | 4.7 | 530
Avino Vein | 286.4 | 287.4 | 1.00 | 0.004 | 2.6 | 520
Avino Vein | 287.4 | 287.4 | 0.00 | 0.015 | 2.4 | 214
Avino Vein | 288.4 | 289.4 | 1.00 | 0.02 | 2.6 | 840
Avino Vein | 289.4 | 290.4 | 1.00 | 0.004 | 1.5 | 185
Avino Vein | 290.4 | 291.4 | 1.00 | 0.075 | 33.3 | 7500
Avino Vein | 291.4 | 292.4 | 1.00 | 0.03 | 6.0 | 1250
Avino Vein | 292.4 | 293.4 | 1.00 | 0.15 | 10.9 | 910
Avino Vein | 293.4 | 294.4 | 1.00 | 0.08 | 66.0 | 11500
Avino Vein | 294.4 | 295.4 | 1.00 | 0.15 | 21.0 | 1380
Avino Vein | 295.4 | 296.4 | 1.00 | 0.004 | 1.5 | 211
Avino Vein | 296.4 | 297.4 | 1.00 | 0.04 | 7.2 | 810
Avino Vein | 297.4 | 298.4 | 1.00 | 0.05 | 13.3 | 1690
Avino Vein | 298.4 | 299.4 | 1.00 | 0.01 | 2.8 | 149
Avino Vein | 299.4 | 300.4 | 1.00 | 0.045 | 4.0 | 319
Avino Vein | 300.4 | 301.4 | 1.00 | 0.015 | 5.0 | 375
Avino Vein | 301.4 | 302.4 | 1.00 | 0.06 | 9.2 | 630

Avino Vein | 302.4 | 303.4 | 1.00 | 0.095 | 28.6 | 6400
Avino Vein | 303.4 | 304.4 | 1.00 | 0.07 | 10.2 | 1130
Avino Vein | 304.4 | 305.4 | 1.00 | 0.045 | 9.3 | 430
Avino Vein | 305.4 | 306.4 | 1.00 | 0.085 | 12.0 | 550
Avino Vein | 306.4 | 307.4 | 1.00 | 0.155 | 28.0 | 2050
Avino Vein | 307.4 | 308.45 | 1.05 | 0.37 | 31.0 | 1480
Avino Vein | 308.45 | 309.45 | 1.00 | 0.04 | 24.3 | 1000
Avino Vein | 309.45 | 310.45 | 1.00 | 0.065 | 17.6 | 1120
Avino Vein | 310.45 | 311.45 | 1.00 | 0.185 | 7.0 | 308
Avino Vein | 311.45 | 312.45 | 1.00 | 0.12 | 7.1 | 720
Avino Vein | 312.45 | 313.45 | 1.00 | 0.08 | 3.1 | 107
Avino Vein | 313.45 | 314.45 | 1.00 | 0.418 | 100.0 | 1760
Avino Vein | 314.45 | 315.45 | 1.00 | 0.07 | 7.0 | 153
Avino Vein | 315.45 | 316.45 | 1.00 | 0.28 | 29.0 | 1480
Avino Vein | 316.45 | 317.45 | 1.00 | 0.22 | 13.2 | 1450
Avino Vein | 317.45 | 318.45 | 1.00 | 0.06 | 36.0 | 1500
Avino Vein | 318.45 | 319.45 | 1.00 | 0.25 | 545.8 | 7500
Avino Vein | 319.45 | 320.45 | 1.00 | 0.05 | 96.0 | 5900
Avino Vein | 320.45 | 321.45 | 1.00 | 0.105 | 72.0 | 8500
Avino Vein | 321.45 | 322.45 | 1.00 | 0.035 | 23.0 | 8700
Avino Vein | 322.45 | 323.45 | 1.00 | 0.054 | 25.4 | 7500
Avino Vein | 323.45 | 324.45 | 1.00 | 0.03 | 41.6 | 10400
Avino Vein | 324.45 | 325.45 | 1.00 | 0.04 | 43.6 | 14700
Avino Vein | 325.45 | 326.45 | 1.00 | 0.075 | 41.5 | 9900
Avino Vein | 326.45 | 327.45 | 1.00 | 0.065 | 45.0 | 8800
Avino Vein | 327.45 | 328.45 | 1.00 | 0.06 | 55.0 | 3880
Avino Vein | 328.45 | 329.45 | 1.00 | 0.144 | 42.0 | 6800
Avino Vein | 329.45 | 330.45 | 1.00 | 0.17 | 40.0 | 7300
Avino Vein | 330.45 | 331.45 | 1.00 | 1.24 | 80.0 | 22000
Avino Vein | 331.45 | 332.45 | 1.00 | 0.653 | 157.0 | 22000
Avino Vein | 332.45 | 333.45 | 1.00 | 1.051 | 176.0 | 21400
Avino Vein | 333.45 | 334.45 | 1.00 | 0.12 | 111.0 | 13000
Avino Vein | 334.45 | 335.45 | 1.00 | 0.12 | 78.0 | 18300
Avino Vein | 335.45 | 336.45 | 1.00 | 0.125 | 80.0 | 16500
Avino Vein | 336.45 | 337.45 | 1.00 | 0.205 | 33.6 | 7500
Avino Vein | 337.45 | 338.45 | 1.00 | 0.3 | 53.0 | 4050
Avino Vein | 338.45 | 339.45 | 1.00 | 0.04 | 38.4 | 11500
Avino Vein | 339.45 | 340.45 | 1.00 | 0.015 | 2.6 | 950
Avino Vein | 340.45 | 341.45 | 1.00 | 0.015 | 15.5 | 2450
Avino Vein | 341.45 | 342.6 | 1.15 | 0.015 | 20.5 | 8900
Avino Vein | 342.6 | 343.75 | 1.15 | 0.01 | 7.0 | 960
Avino Vein | 343.75 | 344.75 | 1.00 | 0.02 | 17.4 | 4010
Avino Vein | 344.75 | 345.75 | 1.00 | 0.004 | 4.0 | 1650
Avino Vein | 345.75 | 346.75 | 1.00 | 0.004 | 4.2 | 169
ET-06-03 | Bearing 339 Dip -48 Length 421.15m |  |  |
| From | To | Down Hole | Au | Ag |
Description | (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (g/t)
HW SPLIT | 327.40 | 328.40 | 1.00 | 0.015 | 2.9 | 325
HW SPLIT | 328.40 | 329.40 | 1.00 | 0.17 | 17.1 | 1161
HW SPLIT | 329.40 | 330.45 | 1.05 | 0.055 | 0.4 | 239
HW SPLIT | 330.45 | 331.45 | 1.00 | 0.59 | 1.1 | 244
HW SPLIT | 331.45 | 332.45 | 1.00 | 0.004 | 0 | 40
HW SPLIT | 332.45 | 333.50 | 1.05 | 0.281 | 1.6 | 70
HW SPLIT | 333.50 | 334.50 | 1.00 | 0.015 | 0 | 56
HW SPLIT | 334.50 | 335.50 | 1.00 | 0.004 | 0 | 41
HW SPLIT | 335.50 | 336.60 | 1.10 | 0.01 | 1.9 | 213
HW SPLIT | 336.60 | 337.60 | 1.00 | 0.385 | 0.8 | 326
HW SPLIT | 337.60 | 338.60 | 1.00 | 0.345 | 0.4 | 187
HW SPLIT | 338.60 | 339.60 | 1.00 | 1.29 | 6.5 | 1077
HW SPLIT | 339.60 | 340.60 | 1.00 | 0.185 | 11.3 | 8208
HW SPLIT | 340.60 | 341.60 | 1.00 | 0.12 | 0 | 127
HW SPLIT | 341.60 | 342.60 | 1.00 | 0.035 | 0 | 54
HW SPLIT | 342.60 | 343.60 | 1.00 | 0.27 | 3.1 | 227
HW SPLIT | 343.60 | 344.65 | 1.05 | 0.38 | 2.5 | 686
HW SPLIT | 344.65 | 345.65 | 1.00 | 0.191 | 1.6 | 406

HW SPLIT | 345.65 | 346.65 | 1.00 | 0.533 | 1.7 | 319
HW SPLIT | 346.65 | 347.70 | 1.05 | 0.04 | 0.5 | 283
HW SPLIT | 347.70 | 348.70 | 1.00 | 0.369 | 16.5 | 1799
HW SPLIT | 348.70 | 349.70 | 1.00 | 0.24 | 6.6 | 932
HW SPLIT | 349.70 | 350.75 | 1.05 | 0.579 | 7.5 | 330
HW SPLIT | 350.75 | 351.75 | 1.00 | 0.584 | 63.4 | 5402
HW SPLIT | 351.75 | 352.75 | 1.00 | 1.725 | 32.8 | 2596
HW SPLIT | 352.75 | 353.80 | 1.05 | 1.211 | 27.4 | 3353
HW SPLIT | 353.80 | 355.05 | 1.25 | 1.923 | 25 | 1614
AVINO VEIN | 368.25 | 369.25 | 1.00 | 0.449 | 68.3 | 3580
AVINO VEIN | 369.25 | 370.30 | 1.05 | 0.595 | 224.7 | 1474
AVINO VEIN | 370.30 | 371.30 | 1.00 | 0.303 | 68.5 | 2016
AVINO VEIN | 371.30 | 372.30 | 1.00 | 0.105 | 62.5 | 1390
AVINO VEIN | 372.30 | 373.35 | 1.05 | 0.212 | 132.5 | 3088
AVINO VEIN | 373.35 | 374.35 | 1.00 | 0.185 | 238.7 | 9637
AVINO VEIN | 374.35 | 375.35 | 1.00 | 0.085 | 34.9 | 1796
AVINO VEIN | 375.35 | 376.05 | 0.70 | 0.135 | 142.8 | 5590
AVINO VEIN | 376.05 | 377.05 | 1.00 | 0.109 | 71 | 2789
AVINO VEIN | 377.05 | 378.05 | 1.00 | 0.25 | 74 | 4069
AVINO VEIN | 378.05 | 379.10 | 1.05 | 0.133 | 91.4 | 6007
AVINO VEIN | 379.10 | 380.40 | 1.30 | 0.055 | 49.3 | 10000
AVINO VEIN | 380.40 | 381.40 | 1.00 | 0.06 | 90.4 | 16300
AVINO VEIN | 381.40 | 382.40 | 1.00 | 0.04 | 74.5 | 24900
AVINO VEIN | 382.40 | 383.45 | 1.05 | 0.035 | 45.6 | 10900
AVINO VEIN | 383.45 | 384.50 | 1.05 | 0.03 | 36.6 | 12200
AVINO VEIN | 384.50 | 385.65 | 1.15 | 0.435 | 46.5 | 16300
AVINO VEIN | 385.65 | 386.65 | 1.00 | 0.045 | 65.2 | 12100
AVINO VEIN | 386.65 | 387.65 | 1.00 | 0.01 | 27 | 3893
AVINO VEIN | 387.65 | 388.70 | 1.05 | 0.025 | 34.7 | 4745
AVINO VEIN | 388.70 | 389.90 | 1.20 | 0.035 | 34.3 | 4675
AVINO VEIN | 389.90 | 390.90 | 1.00 | 0.13 | 31.2 | 8051

ET-06-02 | Bearing 340 Dip -50 Length 416.7m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (g/t)
Avino Vein | 324.95 | 326.00 | 1.05 | 0.035 | 5.5 | 309
Avino Vein | 326.00 | 327.00 | 1.00 | 0.04 | 32 | 72
Avino Vein | 327.00 | 328.00 | 1.00 | 0.004 | 2 | 62
Avino Vein | 328.00 | 328.75 | 0.75 | 0.04 | 10 | 48
Avino Vein | 328.75 | 329.75 | 1.00 | 0.045 | 6.2 | 768
Avino Vein | 329.75 | 330.75 | 1.00 | 0.01 | 6.2 | 731
Avino Vein | 330.75 | 331.80 | 1.05 | 0.144 | 6.8 | 917
Avino Vein | 331.80 | 332.80 | 1.00 | 0.01 | 1.6 | 204
Avino Vein | 332.80 | 333.80 | 1.00 | 0.03 | 5.3 | 930
Avino Vein | 333.80 | 334.85 | 1.05 | 0.045 | 25 | 3411
Avino Vein | 334.85 | 335.85 | 1.00 | 0.004 | 4.3 | 981
Avino Vein | 335.85 | 336.85 | 1.00 | 0.01 | 4 | 1187
Avino Vein | 336.85 | 337.90 | 1.05 | 0.02 | 20 | 259
Avino Vein | 337.90 | 338.90 | 1.00 | 0.01 | 1 | 138
Avino Vein | 338.90 | 339.90 | 1.00 | 0.004 | 1.5 | 380
Avino Vein | 339.90 | 340.95 | 1.05 | 0.065 | 7.2 | 1985
Avino Vein | 340.95 | 341.95 | 1.00 | 0.045 | 16 | 5461
Avino Vein | 341.95 | 342.95 | 1.00 | 0.305 | 4.7 | 1371
Avino Vein | 342.95 | 344.00 | 1.05 | 0.075 | 14.2 | 5834
Avino Vein | 344.00 | 345.00 | 1.00 | 0.054 | 15 | 2054
Avino Vein | 345.00 | 346.00 | 1.00 | 0.035 | 9 | 3386
Avino Vein | 346.00 | 347.05 | 1.05 | 0.025 | 4.6 | 2267
Avino Vein | 347.05 | 347.75 | 0.70 | 0.319 | 9 | 3007
Avino Vein | 347.75 | 348.75 | 1.00 | 1.085 | 14 | 3692
Avino Vein | 348.75 | 349.75 | 1.00 | 2.044 | 27.6 | 6363
Avino Vein | 349.75 | 350.80 | 1.05 | 0.622 | 9.6 | 3094
Avino Vein | 350.80 | 351.80 | 1.00 | 0.315 | 12 | 1554
Avino Vein | 351.80 | 352.80 | 1.00 | 0.13 | 11 | 1785
Avino Vein | 352.80 | 353.85 | 1.05 | 0.145 | 8.3 | 2966
Avino Vein | 353.85 | 354.85 | 1.00 | 2.568 | 18 | 6847
Avino Vein | 354.85 | 355.85 | 1.00 | 0.195 | 14 | 4514

Avino Vein | 355.85 | 356.90 | 1.05 | 0.19 | 30 | 6402
Avino Vein | 356.90 | 357.95 | 1.05 | 0.41 | 60 | 7928
Avino Vein | 357.95 | 359.00 | 1.05 | 0.295 | 10.5 | 1883
Avino Vein | 359.00 | 360.05 | 1.05 | 4.31 | 41.6 | 7101
Avino Vein | 360.05 | 361.05 | 1.00 | 0.485 | 9 | 2649
Avino Vein | 361.05 | 362.05 | 1.00 | 0.45 | 8 | 1994
Avino Vein | 362.05 | 363.05 | 1.00 | 0.09 | 4.4 | 1223
Avino Vein | 363.05 | 364.05 | 1.00 | 2.329 | 17.7 | 5679
Avino Vein | 364.05 | 365.10 | 1.05 | 0.045 | 14.4 | 2474
Avino Vein | 365.10 | 366.40 | 1.30 | 0.353 | 18.4 | 9891
Avino Vein | 366.40 | 367.70 | 1.30 | 1.549 | 100 | 7541
Avino Vein | 367.70 | 368.70 | 1.00 | 1.24 | 16.7 | 2920
Avino Vein | 368.70 | 369.70 | 1.00 | 0.215 | 13 | 2897
Avino Vein | 369.70 | 370.75 | 1.05 | 0.201 | 35.2 | 5427
Avino Vein | 370.75 | 371.75 | 1.00 | 0.285 | 27.6 | 4973
Avino Vein | 371.75 | 372.75 | 1.00 | 0.978 | 50 | 6924
Avino Vein | 372.75 | 373.80 | 1.05 | 0.11 | 32 | 3580
Avino Vein | 373.80 | 374.80 | 1.00 | 0.51 | 57 | 1908
Avino Vein | 374.80 | 375.80 | 1.00 | 0.365 | 57 | 4479
Avino Vein | 375.80 | 376.80 | 1.00 | 0.769 | 45 | 5086
Avino Vein | 376.80 | 377.90 | 1.10 | 1.24 | 50 | 10100
Avino Vein | 377.90 | 379.90 | 1.00 | 0.675 | 52 | 9239
Avino Vein | 379.90 | 380.90 | 1.00 | 0.1 | 47 | 3619
Avino Vein | 380.90 | 381.90 | 1.00 | 0.045 | 18 | 1653
Avino Vein | 381.90 | 382.95 | 1.05 | 0.035 | 12.1 | 4089
Avino Vein | 382.95 | 383.55 | 0.60 | 0.015 | 8.5 | 1752
Avino Vein | 383.55 | 384.55 | 1.00 | 0.05 | 10.2 | 3829
Avino Vein | 384.55 | 385.55 | 1.00 | 0.088 | 19 | 3662
Avino Vein | 385.55 | 386.60 | 1.05 | 0.03 | 44 | 1794
Avino Vein | 386.60 | 387.65 | 1.05 | 0.125 | 35.7 | 2262
Avino Vein | 387.65 | 388.75 | 1.10 | 0.158 | 126 | 7586
Avino Vein | 388.75 | 389.75 | 1.00 | 0.06 | 21 | 3231
Avino Vein | 389.75 | 390.75 | 1.00 | 0.045 | 10.7 | 2086
Avino Vein | 390.75 | 391.80 | 1.05 | 0.89 | 26.8 | 3966
Avino Vein | 391.80 | 392.80 | 1.00 | 1.49 | 36 | 4180
Avino Vein | 392.80 | 393.80 | 1.00 | 0.195 | 13.5 | 2903
Avino Vein | 393.80 | 394.95 | 1.15 | 0.095 | 24.5 | 4045
Avino Vein | 394.95 | 395.95 | 1.00 | 0.035 | 11.3 | 1317
Avino Vein | 395.95 | 396.95 | 1.00 | 0.06 | 21.9 | 1707
Avino Vein | 396.95 | 398.00 | 1.05 | 0.01 | 2.5 | 378
Avino Vein | 398.00 | 399.30 | 1.30 | 0.05 | 20.1 | 2242
Avino Vein | 399.30 | 400.30 | 1.00 | 0.07 | 31.3 | 1927
Avino Vein | 400.30 | 401.30 | 1.00 | 0.045 | 15.8 | 514
Avino Vein | 401.30 | 402.35 | 1.05 | 0.025 | 28.1 | 497
Avino Vein | 402.35 | 403.35 | 1.00 | 0.025 | 8.3 | 515
Avino Vein | 403.35 | 404.35 | 1.00 | 0.04 | 1.3 | 61
Avino Vein | 404.35 | 405.50 | 1.15 | 0.051 | 27.2 | 2913
Avino Vein | 405.50 | 406.40 | 0.90 | 0.1 | 48 | 1326
Avino Vein | 406.40 | 407.40 | 1.00 | 0.05 | 37.4 | 1259

ET-06-01 | Bearing 337 Dip 90 Length 219.15m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (g/t)
Avino Vein | 366.90 | 367.90 | 1.00 | 0.010 | 0.5 | 64
Avino Vein | 367.90 | 368.90 | 1.00 | 0.005 | 19.4 | 952
Avino Vein | 368.90 | 369.95 | 1.05 | 0.010 | 1.8 | 379
Avino Vein | 369.95 | 370.95 | 1.00 | 0.030 | 33.7 | 2955
Avino Vein | 370.95 | 371.95 | 1.00 | 0.049 | 40.0 | 2359
Avino Vein | 371.95 | 373.00 | 1.05 | 0.010 | 4.8 | 607
Avino Vein | 373.00 | 374.00 | 1.00 | 0.020 | 36.9 | 1985
Avino Vein | 374.00 | 375.00 | 1.00 | <0.005 | 1.1 | 194
Avino Vein | 375.00 | 376.05 | 1.05 | <0.005 | 8.2 | 1071
Avino Vein | 376.05 | 376.80 | 0.75 | <0.005 | <0.1 | 122
Avino Vein | 376.80 | 377.80 | 1.00 | <0.005 | 2.1 | 326
Avino Vein | 377.80 | 378.80 | 1.00 | 0.015 | 6.1 | 1046
Avino Vein | 378.80 | 379.85 | 1.05 | 0.030 | 41.6 | 97

Avino Vein | 379.85 | 380.85 | 1.00 | 0.020 | 3.0 | 658
Avino Vein | 380.85 | 381.85 | 1.00 | 0.033 | 16.2 | 1530
Avino Vein | 381.85 | 382.90 | 1.05 | 0.020 | 1.3 | 147
Avino Vein | 382.90 | 383.90 | 1.00 | 0.015 | 8.5 | 451
Avino Vein | 383.90 | 384.90 | 1.00 | 0.048 | 29.5 | 1735
Avino Vein | 384.90 | 385.95 | 1.05 | 0.020 | 11.1 | 976
Avino Vein | 385.95 | 386.95 | 1.00 | 0.078 | 45.9 | 3533
Avino Vein | 386.95 | 387.95 | 1.00 | 0.055 | 44.5 | 510
Avino Vein | 387.95 | 389.00 | 1.05 | 0.015 | 5.8 | 702
Avino Vein | 389.00 | 390.00 | 1.00 | <0.005 | 11.6 | 1651
Avino Vein | 390.00 | 391.00 | 1.00 | 0.030 | 24.1 | 6692
Avino Vein | 391.00 | 392.05 | 1.05 | 0.015 | 21.2 | 6118
Avino Vein | 392.05 | 393.05 | 1.00 | 0.015 | 52.1 | 13800
Avino Vein | 393.05 | 394.05 | 1.00 | 0.010 | 48.4 | 3282
Avino Vein | 394.05 | 395.10 | 1.05 | 0.055 | 15.8 | 1193
Avino Vein | 395.10 | 396.10 | 1.00 | 0.020 | 27.2 | 5666
Avino Vein | 396.10 | 397.10 | 1.00 | 0.015 | 25.2 | 3589
Avino Vein | 397.10 | 398.15 | 1.05 | 0.030 | 54.7 | 5950
Avino Vein | 398.15 | 399.15 | 1.00 | 0.010 | 21.9 | 2030
Avino Vein | 399.15 | 400.25 | 1.10 | 0.015 | 12.9 | 1927
Avino Vein | 400.25 | 401.25 | 1.00 | 0.015 | 17.2 | 1346
Avino Vein | 401.25 | 402.25 | 1.00 | 0.120 | 15.0 | 4123
Avino Vein | 402.25 | 403.30 | 1.05 | 0.020 | 2.6 | 1266
Avino Vein | 403.30 | 404.30 | 1.00 | 0.015 | 10.1 | 3046
Avino Vein | 404.30 | 405.30 | 1.00 | 0.030 | 19.7 | 3607
Avino Vein | 405.30 | 406.35 | 1.05 | 0.030 | 4.4 | 2202
Avino Vein | 406.35 | 407.55 | 1.20 | 0.132 | 12.2 | 4958
Avino Vein | 407.55 | 408.80 | 1.25 | 0.112 | 16.6 | 3099
Avino Vein | 408.80 | 409.80 | 1.00 | 0.085 | 17.6 | 2568
Avino Vein | 409.80 | 410.80 | 1.00 | 0.262 | 136.6 | 6680
Avino Vein | 410.80 | 411.85 | 1.05 | 0.004 | 81.4 | 3346
Avino Vein | 411.85 | 412.85 | 1.00 | 0.020 | 14.4 | 1248
Avino Vein | 412.85 | 413.85 | 1.00 | 0.040 | 9.8 | 917
Avino Vein | 413.85 | 414.90 | 1.05 | 0.060 | 11.7 | 826
Avino Vein | 414.90 | 415.90 | 1.00 | 0.004 | 16.5 | 2209
Avino Vein | 415.90 | 416.90 | 1.00 | <0.005 | 11.0 | 733
Avino Vein | 416.90 | 417.95 | 1.05 | <0.005 | 6.4 | 682

2007 - 2011 San Gonzalo Drilling |

SG-11-01
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 79.70 | 80.15 | 0.45 | 0.063 | 47.5 | 175 | 288 | 670
San Gonzalo Vein | 80.15 | 81.35 | 1.20 | 0.586 | 203.1 | 206 | 768 | 1114
| 81.35 | 81.95 | 0.60 | 0.682 | 100.5 | 54 | 174 | 304
| 81.95 | 82.75 | 0.80 | 0.478 | 201.2 | 111 | 444 | 468
| 82.75 | 83.10 | 0.35 | 0.161 | 373.6 | 197 | 434 | 1498
| 83.10 | 83.80 | 0.70 | 0.139 | 185.2 | 399 | 322 | 1142
| 83.80 | 84.90 | 1.10 | 0.023 | 10.4 | 110 | 56 | 1686
| 90.30 | 91.80 | 1.50 | 0.045 | 6 | 160 | 792 | 2854
| 91.80 | 92.60 | 0.80 | 0.36 | 182.6 | 2602 | 646 | 718
| 92.60 | 93.95 | 1.35 | 0.051 | 21.9 | 1729 | 276 | 1006

SG-11-02
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 120.05 | 121.55 | 1.50 | 0.01 | 3.2 | 49 | 334 | 998
| 121.55 | 121.90 | 0.35 | 0.063 | 170 | 404 | 10800 | 26000
| 121.90 | 123.15 | 1.25 | 0.239 | 49.2 | 530 | 1136 | 1534
San Gonzalo Vein | 123.15 | 124.05 | 0.90 | 0.118 | 83.8 | 2423 | 6855 | 7103
| 124.05 | 125.25 | 1.20 | 0.228 | 13 | 240 | 2164 | 3662
| 125.25 | 125.90 | 0.65 | 0.017 | 40.9 | 141 | 4832 | 1500
| 125.90 | 127.25 | 1.35 | 0.144 | 26 | 122 | 1254 | 4323
| 127.25 | 127.85 | 0.60 | 0.223 | 241.4 | 954 | 1276 | 1856
| 127.85 | 128.45 | 0.60 | 0.087 | 27.4 | 57 | 422 | 704
| 128.45 | 129.30 | 0.85 | 0.508 | 112.8 | 237 | 404 | 1308
| 129.30 | 130.10 | 0.80 | 1.632 | 264.9 | 178 | 368 | 1586
| 130.10 | 130.95 | 0.85 | 1.314 | 307.9 | 333 | 1226 | 1622
| 130.95 | 132.60 | 1.65 | 0.076 | 18.4 | 83 | 356 | 1324

SG-11-03
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 63 | 63.2 | 0.2 | 0.435 | 308.9 | 145 | 1700 | 1762
| 63.2 | 64.55 | 1.35 | <0.005 | 10.3 | 31 | 142 | 826
San Gonzalo Vein | 64.55 | 65.2 | 0.65 | 0.046 | 15.7 | 15 | 70 | 248
| 65.2 | 65.6 | 0.4 | 0.746 | 173.7 | 103 | 736 | 1626
| 65.6 | 66.2 | 0.6 | 0.024 | 17.8 | 18 | 38 | 370
| 81.65 | 82.1 | 0.45 | 0.054 | 15.9 | 26 | 52 | 290
| 82.1 | 82.5 | 0.4 | 0.132 | 28.9 | 55 | 108 | 756
| 82.5 | 83 | 0.5 | 0.446 | 70.7 | 91 | 154 | 414
| 83 | 83.55 | 0.55 | 0.108 | 31.1 | 50 | 60 | 278
| 83.55 | 84.8 | 1.25 | 0.006 | 5.8 | 43 | 8 | 350
| 84.8 | 85.45 | 0.65 | 0.45 | 163.3 | 107 | 266 | 366

SG-11-04
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 41.05 | 41.4 | 0.35 | 0.047 | 6.6 | 26 | 1494 | 5130
| 46.95 | 47.15 | 0.2 | 0.114 | 111.3 | 1567 | 766 | 1514
| 94.35 | 95.9 | 1.55 | 0.076 | 26.2 | 140 | 7978 | 9884
| 95.9 | 96.7 | 0.8 | 1.522 | 18.9 | 183 | 6321 | 10800
| 98.1 | 98.3 | 0.2 | 0.411 | 30.7 | 35 | 356 | 1398
San Gonzalo Vein | 118.75 | 120.5 | 1.75 | 0.065 | 9.5 | 41 | 1006 | 3790
| 120.5 | 121 | 0.5 | 0.307 | 52.2 | 146 | 2634 | 8844
| 121 | 121.45 | 0.45 | 0.868 | 205.2 | 230 | 762 | 3976
| 121.45 | 122.45 | 1 | 0.085 | 24.7 | 268 | 1362 | 9475
| 122.45 | 123.6 | 1.15 | 0.046 | 9.3 | 147 | 2298 | 10500
| 147.3 | 148.75 | 1.45 | 0.124 | 34.7 | 49 | 376 | 1092
| 148.75 | 149.25 | 0.5 | 1.26 | 104.7 | 95 | 224 | 676
| 149.25 | 149.75 | 0.5 | 0.199 | 35.8 | 74 | 236 | 804
| 149.75 | 150.3 | 0.55 | 0.242 | 62.3 | 395 | 690 | 1968
| 150.3 | 151.1 | 0.8 | 0.043 | 3.6 | 10 | 100 | 534

SG-11-05
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | cu (ppm) | Pb (ppm) | Zn (ppm)
| 123.1 | 123.7 | 0.6 | 0.013 | 0.9 | 15 | 246 | 366
San Gonzalo Vein | 123.7 | 124.15 | 0.45 | 0.028 | 1.7 | 14 | 786 | 1932
| 124.15 | 124.4 | 0.25 | 2.714 | 19.1 | 167 | 3266 | 7942
| 124.4 | 124.9 | 0.5 | 0.078 | 3.4 | 34 | 1872 | 1082

SG-11-06
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | cu (ppm) | Pb (ppm) | Zn (ppm)
| 107.9 | 108.75 | 0.85 | 0.007 | 0.4 | 6 | 58 | 386
| 108.75 | 109.25 | 0.5 | 0.007 | 3.6 | 559 | 118 | 214
San Gonzalo Vein | 109.25 | 109.9 | 0.65 | 0.015 | 14.3 | 1903 | 382 | 292
| 109.9 | 110.25 | 0.35 | 0.045 | 218 | 17700 | 3206 | 546
| 110.25 | 110.9 | 0.65 | 0.013 | 5.8 | 816 | 196 | 362
| 117.65 | 118.4 | 0.75 | 0.091 | 6.9 | 305 | 524 | 1270

SG-11-07
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppb)
| 21.6 | 22.8 | 1.2 | <0.005 | 2.2 | 13 | 112 | 146
| 22.8 | 23.6 | 0.8 | 0.015 | 3.8 | 14 | 130 | 160
| 23.6 | 24.15 | 0.55 | 0.013 | 2.8 | 10 | 102 | 106
| 24.15 | 25.25 | 1.1 | 0.017 | 5 | 14 | 546 | 702
| 25.25 | 26.05 | 0.8 | 0.022 | 2 | 7 | 64 | 760
| 26.05 | 27.3 | 1.25 | 0.053 | 6.3 | 13 | 192 | 528
San Gonzalo Vein | 27.3 | 27.8 | 0.5 | 0.007 | 1.5 | 5 | 140 | 394
| 46.75 | 47.15 | 0.4 | <0.005 | 8.4 | 16 | 42 | 748
| 47.15 | 47.45 | 0.3 | 0.209 | 200.6 | 64 | 138 | 708
| 47.45 | 47.7 | 0.25 | 0.473 | 74.3 | 61 | 130 | 390
| 47.7 | 48.1 | 0.4 | 0.014 | 52.2 | 23 | 74 | 258
| 48.1 | 48.95 | 0.85 | 0.047 | 6.7 | 9 | 52 | 138
| 95.65 | 97.05 | 1.4 | <0.005 | 0.7 | 10 | 62 | 280
| 97.05 | 97.9 | 0.85 | 0.008 | 1.7 | 25 | 304 | 1160

SG-11-08
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppb)
| 21.6 | 22.8 | 1.2 | <0.005 | 2.2 | 13 | 112 | 146
| 22.8 | 23.6 | 0.8 | 0.015 | 3.8 | 14 | 130 | 160
| 23.6 | 24.15 | 0.55 | 0.013 | 2.8 | 10 | 102 | 106
| 24.15 | 25.25 | 1.1 | 0.017 | 5 | 14 | 546 | 702
| 25.25 | 26.05 | 0.8 | 0.022 | 2 | 7 | 64 | 760
| 26.05 | 27.3 | 1.25 | 0.053 | 6.3 | 13 | 192 | 528
San Gonzalo Vein | 27.3 | 27.8 | 0.5 | 0.007 | 1.5 | 5 | 140 | 394
| 46.75 | 47.15 | 0.4 | <0.005 | 8.4 | 16 | 42 | 748
| 47.15 | 47.45 | 0.3 | 0.209 | 200.6 | 64 | 138 | 708
| 47.45 | 47.7 | 0.25 | 0.473 | 74.3 | 61 | 130 | 390
| 47.7 | 48.1 | 0.4 | 0.014 | 52.2 | 23 | 74 | 258
| 48.1 | 48.95 | 0.85 | 0.047 | 6.7 | 9 | 52 | 138
| 95.65 | 97.05 | 1.4 | <0.005 | 0.7 | 10 | 62 | 280
| 97.05 | 97.9 | 0.85 | 0.008 | 1.7 | 25 | 304 | 1160

SG-11-09
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 60.95 | 61.2 | 0.25 | 0.022 | 4 | 26 | 508 | 954
| 63.85 | 65.3 | 1.45 | 0.019 | 1.9 | 13 | 290 | 292
| 65.3 | 66.25 | 0.95 | 0.008 | 0.5 | 7 | 120 | 430
| 66.25 | 67.7 | 1.45 | 0.033 | 3.8 | 84 | 644 | 758
| 67.7 | 68.3 | 0.6 | 0.192 | 35.4 | 328 | 1128 | 292
| 68.3 | 69.9 | 1.6 | 0.027 | 5.8 | 19 | 1234 | 286
| 69.9 | 70.05 | 0.15 | 0.019 | 3.6 | 65 | 190 | 264
| 70.05 | 71.8 | 1.75 | 0.052 | 5.6 | 131 | 1136 | 1972
| 71.8 | 72.6 | 0.8 | 0.092 | 16 | 621 | 3314 | 8266

SG-11-10
| From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppb)
| 60.95 | 61.2 | 0.25 | 0.022 | 4 | 26 | 508 | 954
| 63.85 | 65.3 | 1.45 | 0.019 | 1.9 | 13 | 290 | 292
| 65.3 | 66.25 | 0.95 | 0.008 | 0.5 | 7 | 120 | 430
| 66.25 | 67.7 | 1.45 | 0.033 | 3.8 | 84 | 644 | 758
| 67.7 | 68.3 | 0.6 | 0.192 | 35.4 | 328 | 1128 | 292
| 68.3 | 69.9 | 1.6 | 0.027 | 5.8 | 19 | 1234 | 286
| 69.9 | 70.05 | 0.15 | 0.019 | 3.6 | 65 | 190 | 264
| 70.05 | 71.8 | 1.75 | 0.052 | 5.6 | 131 | 1136 | 1972
| 71.8 | 72.6 | 0.8 | 0.092 | 16 | 621 | 3314 | 8266

| 2007 - 2008 San Gonzalo Zone Drill result

SG-08-06 | Intersected San Gonzalo between 214.5 - 219.70m (5.65m} 0.88g/t Au, 235 g/t Ag
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 214.05 | 214.85 | 0.8 | 0.729 | 204 | 2944 | 21400 | 17600
San Gonzalo Vein With Sulphide | 214.85 | 215.95 | 1.1 | 0.523 | 95 | 1189 | 5264 | 6417
Minerals | 215.95 | 216.8 | 0.65 | 0.335 | 47.5 | 398 | 1486 | 2918
| 216.8 | 218 | 1.2 | 0.36 | 87.3 | 1960 | 5342 | 7772
| 218 | 218.85 | 0.85 | 3.228 | 758.9 | 3731 | 18500 | 19000
| 218.85 | 219.7 | 0.85 | 0.402 | 316.1 | 7094 | 17500 | 14800

SG-08-05 | Didn't intersect SG vein but hit breccia zone which may be part of another system
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 437.75 | 438.5 | 0.75 | 0.03 | 0.1 | 5 | 33 | 32
Breccia Zone | 438.5 | 438.9 | 0.4 | <0.005 | <0.1 | 6 | 22 | 76
| 438.9 | 439.55 | 0.65 | 0.015 | <0.1 | 7 | 18 | 65
| 439.55 | 440.35 | 0.8 | 0.01 | <0.1 | 8 | 14 | 30

SG-08-04 | Intersected San Gonzalo vein 261.25 - 264.6m (3.35m} 0.5 g/t Gold, 59 g/t Silver
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 261.25 | 261.75 | 0.5 | 0.802 | 81 | 145 | 754 | 1251
| 261.75 | 262.75 | 1 | 0.331 | 61.4 | 234 | 1014 | 2002
San Gonzalo Vein | 262.75 | 263.15 | 0.4 | 0.04 | 11.2 | 39 | 109 | 353
| 263.15 | 263.7 | 0.55 | 0.99 | 85 | 119 | 396 | 794
| 263.7 | 264.6 | 0.9 | 0.424 | 49.7 | 208 | 440 | 702

SG-08-03 | Intersected SG Vein 322.2-325.7m (3.7m} 0.41 g/t Gold, 119 g/t Silver
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 321.04 | 322 | 0.6 | 0.016 | 1.6 | 33 | 126 | 423
Andesite volcanic with quartz veins | 322 | 322.85 | 0.65 | 0.215 | 74.1 | 409 | 11500 | 2725
| 322.85 | 323.7 | 0.85 | 0.195 | 75.2 | 389 | 2665 | 3405
| 323.7 | 324.1 | 0.4 | 0.109 | 221 | 3668 | 65000 | 3569
| 324.1 | 324.9 | 0.8 | 0.925 | 55 | 264 | 6449 | 3610
| 324.9 | 325.7 | 0.8 | 0.457 | 223.5 | 729 | 15500 | 4012
| 325.7 | 327 | 1.3 | 0.288 | 31.8 | 483 | 2241 | 2408

SG-08-02 | Intersected 2 zones of mineralization 1.6m @ 1.72 g/t Au, 704 g/t Ag & 3.0m
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 257.5 | 258.05 | 0.55 | 0.42 | 150.2 | 318 | 2832 | 5393
| 258.05 | 258.7 | 0.65 | 3.84 | 1564.4 | 264 | 13100 | 13900
| 258.7 | 259.1 | 0.4 | 0.075 | 68.1 | 79 | 266 | 502
| 263.05 | 263.75 | 0.7 | 10.765 | 1275.6 | 7394 | 106000 | 146000
| 263.75 | 263.95 | 0.2 | 0.115 | 62.3 | 364 | 4916 | 31000
| 263.95 | 264.7 | 0.75 | 2.606 | 587.4 | 3427 | 76200 | 200000
| 264.7 | 265.3 | 0.6 | 7.337 | 224.1 | 2363 | 146000 | 355000
| 264.3 | 266.05 | 0.75 | 22.56 | 204.2 | 917 | 80000 | 126000
SG-08-01 | Intersected a 2.75m zone @ 1.13 g/t gold and 155 g/t silver
| From | To | Down Hole | Au | Ag |  |  |
| (Metres) | (Metres) | Lengths (metres) | (g/t) | (g/t) | Cu (ppm) | Pb (ppm) | Zn (ppm)
| 143.05 | 144.4 | 1.35 | 1.33 | 168.6 | 309 | 530 | 3598
| 144.4 | 145.8 | 1.4 | 0.93 | 142.1 | 131 | 560 | 1540

SG-07-40 | Bearing 230 - Dip 74 - Length 516.05m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Santiago vein | 33.2 | 33.7 | 0.5 | 5.966 | 2851.9 | 576 | 748 | 1558
Qtz veining w/chalcopyrite | 255.65 | 256.75 | 1.1 | 0.03 | 212.6 | 6115 | 1386 | 2887
Quartz veinlet w/sulfides | 275.9 | 276.45 | 0.55 | 0.059 | 390 | 978 | 17000 | 364
Quartz veinlet w/sulfides along cor | 382.9 | 383.25 | 0.35 | 1.926 | 208.7 | 331 | 270 | 307
San Gonzalo vein | 500.25 | 501.65 | 1.4 | 0.075 | 14.1 | 71 | 263 | 833
San Gonzalo vein | 501.65 | 502.45 | 0.8 | 0.015 | 3.1 | 25 | 49 | 81
SG-07-39 | Bearing 220 - Dip 73 - Length 128.05m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 76.5 | 77 | 0.5 | 0.286 | 25.5 | 61 | 943 | 918
San Gonzalo vein | 77 | 77.8 | 0.8 | 0.192 | 66.5 | 118 | 324 | 357
San Gonzalo vein | 77.8 | 78.6 | 0.8 | 0.082 | 58.5 | 142 | 1001 | 1032
SG-07-38 | Bearing 221 - Dip 66.5 - Length 214.15m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
S Gonzalo Vein Ox-milky wh qtz vei | 168.65 | 170 | 1.35 | 0.716 | 88.2 | 231 | 1278 | 2217
SG-07-37 | Bearing 219 Dip 53 Length 154.35m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo Vein | 145.45 | 146.55 | 1.1 | 0.21 | 220.7 | 104 | 698 | 2554
San Gonzalo Vein | 146.55 | 147.55 | 1 | 0.108 | 63.6 | 68 | 670 | 1257
SG-07-36 | Bearing 215 - Dip 45 - Length 102.15m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 65.3 | 65.65 | 0.35 | <0.005 | 6 | 13 | 60 | 520
Los Angeles vein | 78.05 | 78.8 | 0.75 | 0.03 | 12.1 | 13 | 29 | 428
Silicif tuff | 78.8 | 80.45 | 1.65 | 0.01 | 3.8 | 103 | 95 | 456
Los Angeles vein | 80.45 | 81.95 | 1.5 | 0.105 | 19.5 | 73 | 144 | 281
SG-07-34 | Bearing 215 - Dip 45 - Length 100m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 161.5 | 162.6 | 1.1 | 0.258 | 28 | 60 | 129 | 231
Silicif tuff | 162.6 | 163.95 | 1.35 | 0.072 | 6.8 | 9 | 42 | 285
Quartz veining | 163.95 | 165.02 | 1.1 | 0.05 | 7 | 26 | 43 | 220
Quartz veining | 165.05 | 166.2 | 1.15 | 0.066 | 5.1 | 22 | 43 | 355
San Gonzalo vein | 166.2 | 167.3 | 1.1 | 0.058 | 19.7 | 24 | 58 | 822
SG-07-33 | Bearing 209 - Dip 45 - Length 130.6
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 116.15 | 117.15 | 1 | 0.283 | 0.01 | 361 | 8295 | 25100
San Gonzalo vein | 117.15 | 118.4 | 1.25 | 0.337 | 0.01 | 659 | 7934 | 32900
San Gonzalo vein | 118.4 | 119.55 | 1.15 | 0.934 | 0.03 | 475 | 10000 | 39300
San Gonzalo vein | 119.55 | 120.55 | 0.95 | 0.168 | 0.005 | 193 | 2418 | 7965
San Gonzalo vein | 120.5 | 121.85 | 1.35 | 1.996 | 0.06 | 878 | 31400 | 17400
San Gonzalo vein | 121.85 | 122.7 | 0.85 | 0.378 | 0.01 | 954 | 17700 | 61800
San Gonzalo vein | 122.7 | 123.6 | 0.9 | 0.115 | 0.003 | 192 | 1495 | 1573
SG-07-32 | Bearing 215 - Dip 70 - Length 390.2m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Hanging wall vein | 392.5 | 393.2 | 0.7 | 2.149 | 192.8 | 5.62 | 1484 | 1153
Strong silicif and quartz veining | 393.2 | 394.6 | 1.4 | 0.123 | 24.1 | 0.7 | 393 | 1081
Strong silicif and quartz veining | 394.6 | 396.2 | 1.6 | 0.14 | 7.7 | 0.22 | 148 | 522
San Gonzalo vein system | 396.2 | 397.75 | 1.55 | 0.419 | 65.9 | 0.92 | 528 | 919

SG-07-31 | Bearing 215 - Dip 70 - Length 71.85m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 51.25 | 51.7 | 0.45 | 1.085 | 449.3 | 294 | 1812 | 7272

SG-07-30 | Bearing 215 - Dip 64 - Length 158.4
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Strong argillized rock+diss pyrite | 79.4 | 80.25 | 0.85 | 0.605 | 213.8 | 3741 | 990 | 2370
Veinlets with sulfides | 116.35 | 116.9 | 0.55 | 1.38 | 519.1 | 6162 | 18200 | 11600
Caliche zone | 138.85 | 139.9 | 1.05 | 0.105 | 10.5 | 30 | 110 | 541
no core recovered between 139.9-: | 140.8 | 141.45 | 0.65 | 0.786 | 53.7 | 179 | 439 | 394

SG-07-29 | Bearing 215 - Dip 45 - Length 100m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
HW San Gonzalo vein | 70.2 | 71.2 | 1 | 0.185 | 69.6 | 862 | 1956 | 5259
Wh qtz veining w/ strong pyrite | 71.2 | 72.35 | 1.15 | 0.091 | 13.6 | 173 | 1151 | 2622
Wh qtz veining w/ strong pyrite | 72.35 | 73.3 | 0.95 | 0.125 | 18.6 | 174 | 1242 | 2799
Silicified material | 75.45 | 76.35 | 0.9 | 0.025 | 21 | 831 | 973 | 983
San Gonzalo vein | 76.35 | 77.2 | 0.85 | 0.153 | 299.1 | 3456 | 218 | 2242
San Gonzalo vein | 77.2 | 78 | 0.8 | 0.542 | 243.8 | 3774 | 4778 | 3515
San Gonzalo vein | 78 | 78.9 | 0.9 | 0.185 | 207.1 | 563 | 3317 | 3559
SG-07-28 | Bearing 215 - Dip 73 - Length 319.5m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo Vein | 310.1 | 311.05 | 0.95 | 0.794 | 102.4 | 315 | 1695 | 3781

SG-07-27 | Bearing 215 - Dip 70 - Length 237.75m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Qtz veinlet w/ diss sulfs | 139.4 | 139.95 | 0.55 | 6.13 | 153.7 | 1298 | 13000 | 20900
San Gonzalo HW vein | 206.45 | 207.4 | 0.95 | 0.986 | 100.1 | 410 | 1349 | 2824
San Gonzalo HW vein | 207.4 | 207.8 | 0.4 | 2.272 | 754.1 | 252 | 2373 | 6703
San Gonzalo vein | 217.15 | 217.55 | 0.4 | 0.711 | 60.7 | 166 | 260 | 949
Veinlet w/ base metal mineralizatio | 227.65 | 228 | 0.35 | 1.644 | 94.7 | 6092 | 17400 | 65100
Host Rock Silicied tuff | 233 | 233.65 | 0.65 | 0.122 | 57.5 | 3864 | 4459 | 3409
Wh qz vein | 233.65 | 234.1 | 0.45 | 10.63 | 117.3 | 953 | 1424 | 1631

SG-07-26 | Bearing 215 - Dip 75 - Length 393.4m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo Vein | 381.55 | 382.45 | 0.9 | 0.015 | 11.3 | 187 | 375 | 1149
San Gonzalo Vein | 382.45 | 383.15 | 0.7 | 0.175 | 22.7 | 101 | 492 | 2262
San Gonzalo Vein | 383.15 | 383.85 | 0.7 | 0.378 | 59.7 | 194 | 1437 | 838

SG-07-25 | Bearing 215 - Dip 65 Length 190.45m
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Side Vein | 103.95 | 104.2 | 0.25 | 0.165 | 209.2 | 920 | 5600 | 196
Side Vein | 104.75 | 105.05 | 0.3 | 0.239 | 283.4 | 10800 | 3540 | 1450
Side Vein | 133.35 | 133.65 | 0.3 | 1.517 | 79 | 950 | 39300 | 1180
San Gonzalo Footwall vein | 175.85 | 176.75 | 0.9 | 1.096 | 343.2 | 11000 | 6100 | 2840
San Gonzalo vein | 179.4 | 179.95 | 0.55 | 0.243 | 39.5 | 281 | 670 | 1500
San Gonzalo vein | 179.95 | 180.85 | 0.9 | 0.123 | 12.1 | 48 | 91 | 700
San Gonzalo vein | 180.85 | 181.7 | 0.85 | 0.541 | 61.5 | 50 | 66 | 560
San Gonzalo vein | 181.7 | 182.8 | 1.1 | 0.851 | 62.6 | 67 | 135 | 640
San Gonzalo vein | 182.8 | 183.3 | 0.5 | 1.396 | 113 | 128 | 209 | 780
San Gonzalo vein | 183.3 | 184.25 | 0.95 | 2.88 | 368.8 | 197 | 780 | 1790

SG‐07‐24 | Bearing 215 ‐ Dip 53 ‐ Length 124.4m |  |  |  |  |
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Side Vein | 69.3 | 69.6 | 0.3 | 0.82 | 631.1 | 153 | 6500 | 6800
San Gonzalo vein | 113.9 | 114.7 | 0.8 | 0.135 | 27.7 | 172 | 1530 | 5000
San Gonzalo vein | 114.7 | 115.8 | 1.1 | 0.097 | 12.2 | 246 | 3230 | 7500
San Gonzalo vein | 115.8 | 116.6 | 0.8 | 16.32 | 2804.4 | 227 | 1350 | 15600
San Gonzalo vein | 116.6 | 117.25 | 0.65 | 10.491 | 5265.2 | 910 | 15200 | 28900
San Gonzalo vein | 117.25 | 118.4 | 1.15 | 0.147 | 28.9 | 27 | 1040 | 2350
San Gonzalo vein | 118.4 | 119.45 | 1.05 | 0.23 | 18.1 | 110 | 2110 | 2980

SG‐07‐23 | Bearing 215 ‐ Dip 69 ‐ Length 303.45m |  |  |  |  |
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Silicified Tuff rock | 293.8 | 294.5 | 0.7 | 0.425 | 254 | 114 | 820 | 1933
San Gonzalo vein | 294.5 | 295.55 | 1.05 | 2.512 | 502.7 | 3059 | 11400 | 39800
San Gonzalo vein | 295.55 | 296.1 | 0.55 | 1.408 | 63.1 | 131 | 412 | 3345
San Gonzalo vein | 296.1 | 297.6 | 1.5 | 15.771 | 1511.8 | 2570 | 60600 | 42300
San Gonzalo vein | 297.6 | 297.85 | 0.25 | 13.988 | 763.7 | 1328 | 30500 | 36900
San Gonzalo vein | 297.85 | 298.75 | 0.9 | 0.214 | 56.3 | 144 | 437 | 732

SG‐07‐22 | Bearing 215 ‐ dip 55 ‐ Length 232.5m |  |  |  |  |
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
San Gonzalo vein | 227.05 | 228.1 | 1.05 | 2.052 | 211.2 | 1277 | 6398 | 4162
San Gonzalo vein | 228.1 | 229.25 | 1.15 | 0.868 | 109.2 | 165 | 487 | 690
San Gonzalo vein | 229.25 | 229.75 | 0.5 | 1.778 | 126.7 | 199 | 859 | 1763

SG‐07‐21 | Bearing 033 ‐ Dip 54 ‐ Length 295m |  |  |  |  |
Description | From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
Wh qtz veining w/ diss fine sulfs | 135 | 136.35 | 1.35 | 0.215 | 20.7 | 840 | 1168 | 8682
Silicified Tuff rock | 280.05 | 280.6 | 0.55 | 0.04 | 4.7 | 11 | 459 | 699
San Gonzalo Vein | 280.6 | 281.25 | 0.65 | 0.358 | 32 | 45 | 1884 | 5101
San Gonzalo Vein | 281.6 | 282.35 | 0.75 | 0.209 | 35.3 | 184 | 778 | 4569
San Gonzalo Vein | 282.35 | 283.5 | 1.15 | 2.172 | 24.9 | 127 | 444 | 1123
San Gonzalo Vein | 283.5 | 284.1 | 0.6 | 1.37 | 59.2 | 521 | 7016 | 1299
San Gonzalo Vein | 284.1 | 284.9 | 0.8 | 0.055 | 5.5 | 66 | 1043 | 975
San Gonzalo Vein | 284.9 | 285.3 | 0.4 | 0.233 | 133.1 | 1056 | 24800 | 29000

SG‐07‐20 | Bearing 215 ‐ Dip 66 ‐ Length 247.4m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
11.4 | 12.6 | 1.2 | 0.125 | 64.5 | 57 | 106 | 167
12.6 | 13.25 | 0.65 | 0.419 | 648.8 | 534 | 1182 | 2124
13.25 | 14.1 | 0.85 | 0.099 | 18.1 | 84 | 302 | 2080
51.05 | 51.55 | 0.5 | 0.206 | 22.2 | 22 | 109 | 218
53.45 | 54 | 0.55 | 2.454 | 839.2 | 536 | 5927 | 7122
112.1 | 112.5 | 0.4 | 0.135 | 131.7 | 8533 | 756 | 413
146.8 | 147.55 | 0.75 | 0.145 | 32.2 | 1568 | 382 | 830
195.65 | 195.85 | 0.2 | 0.07 | 187.3 | 10700 | 240 | 1730

SG‐07‐19 | Bearing ‐ 252 ‐ Dip 66 ‐ Length 345.0m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
126.4 | 129.9 | 0.5 | 94.421 | 265.7 | 25500 | 3379 | 1631
131.2 | 131.5 | 0.3 | 1.385 | 68 | 18000 | 426 | 343
133.85 | 134.6 | 0.75 | 1.011 | 27.3 | 5173 | 138 | 229
229.05 | 229.7 | 0.65 | 0.21 | 10.1 | 58 | 1588 | 2154
230.4 | 230.8 | 0.4 | 0.973 | 116.1 | 1237 | 1245 | 2821
236.55 | 237.4 | 0.85 | 0.07 | 22.3 | 90 | 127 | 1560
237.4 | 238.25 | 0.85 | 0.097 | 45 | 50 | 209 | 1581
244.8 | 245.7 | 0.9 | 0.068 | 6.9 | 17 | 98 | 1406
252.95 | 253.5 | 0.55 | 0.164 | 10.3 | 178 | 279 | 653
253.5 | 254.65 | 1.15 | 0.04 | 39.4 | 1767 | 1096 | 814

SG‐07‐18 | Bearing 215 ‐ Dip 66 ‐ Length 238.05m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
166.6 | 167.5 | 0.9 | 0.198 | 16.5 | 490 | 2612 | 4085
167.5 | 168.2 | 0.7 | 0.63 | 55 | 2035 | 2219 | 692
168.2 | 168.75 | 0.55 | 0.215 | 145.5 | 6887 | 835 | 302
171.15 | 171.4 | 0.25 | 0.454 | 132 | 5281 | 1611 | 3216
214.2 | 214.6 | 0.4 | 0.185 | 14.7 | 13 | 711 | 144
219.75 | 221 | 1.25 | 0.109 | 23.6 | 164 | 1334 | 2321
221 | 222.2 | 1.2 | 0.725 | 66 | 117 | 863 | 1836
222.2 | 223.4 | 1.2 | 0.01 | 5.3 | 113 | 136 | 473
232.65 | 233.35 | 0.7 | 0.01 | 4 | 72 | 71 | 981
233.35 | 234.1 | 0.75 | 1.369 | 112.8 | 126 | 1045 | 1571
234.1 | 234.9 | 0.8 | 0.485 | 66.7 | 305 | 1626 | 3523
234.9 | 235.8 | 0.9 | 0.015 | 46.8 | 1643 | 583 | 395
235.8 | 237 | 1.2 | 0.01 | 44.2 | 1678 | 443 | 274
237 | 238.05 | 1.05 | 0.02 | 9.7 | 370 | 222 | 373

SG‐07‐17 | Bearing 251 ‐ Dip 55 ‐ Length 69.8m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
46.7 | 47.6 | 0.9 | 0.054 | 15.5 | 82 | 1259 | 1801
47.6 | 48.2 | 0.6 | 0.02 | 5.2 | 84 | 2129 | 1270
53.05 | 53.95 | 0.9 | 0.055 | 7.1 | 53 | 1793 | 11300

SG‐07‐16 | Bearing 215 ‐ Dip 55 ‐ Length 99.85m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
48.6 | 49.05 | 0.45 | 6.171 | 1189 | 241 | 2844 | 7658
95.75 | 96.2 | 0.45 | 0.078 | 9.6 | 27 | 193 | 430
96.2 | 96.75 | 0.55 | 0.253 | 326.4 | 6489 | 3126 | 4661
96.75 | 97.55 | 0.8 | 0.159 | 19.2 | 483 | 336 | 752

SG‐07‐15 | Bearing 215 ‐ Dip 49 ‐ Length 96.2m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
32.25 | 33.2 | 0.95 | 0.063 | 20.8 | 67 | 93 | 4727
33.2 | 33.9 | 0.7 | 0.045 | 6.3 | 35 | 23 | 662
63.5 | 63.9 | 0.4 | 0.743 | >200 | 104 | 2725 | 2998

SG‐07‐14 | Bearing 053 ‐ Dip 52 ‐ Length 295.20m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
287.6 | 288.5 | 0.9 | 2.356 | 179.1 | 727 | 1267 | 2755
288.5 | 289.05 | 0.55 | 0.427 | 55.3 | 188 | 381 | 1440
289.05 | 289.85 | 0.8 | 1.594 | 107.8 | 710 | 1386 | 4558
289.85 | 290.85 | 1 | 3.84 | 3623.2 | 2727 | 29300 | 48300
290.85 | 291.85 | 1 | 0.478 | 202.6 | 236 | 1796 | 3579
291.85 | 293 | 1.15 | 0.215 | 64.9 | 125 | 1096 | 1600

SG‐07‐13 | Bearing 012 ‐ Dip 49 ‐ Length 158.6m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
147.45 | 148.45 | 1 | 0.55 | 91.5 | 3199 | 2205 | 2436
148.45 | 149.05 | 0.6 | 0.155 | 77.9 | 326 | 724 | 7039
149.05 | 149.7 | 0.65 | 1.209 | 150.8 | 192 | 1284 | 1670
149.7 | 150.7 | 1 | 0.778 | 500.6 | 264 | 1.779 | 3037
150.7 | 151.5 | 0.8 | 3.153 | 238.9 | 1910 | 11000 | 10700
151.5 | 152.2 | 0.7 | 0.822 | 121.3 | 241 | 922 | 4552
152.2 | 153 | 0.8 | 1.057 | 44.5 | 91 | 783 | 1730

SG‐07‐12 | Bearing 037 ‐ Dip 45 ‐ Length 106.6m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
165.65 | 166.4 | 0.75 | 22.902 | 1609.9 | 840 | 2106 | 3692
166.4 | 167.05 | 0.65 | 8.366 | 898 | 262 | 974 | 2266
167.05 | 67.75 | 0.7 | 13.508 | 427.6 | 261 | 1188 | 1282
167.75 | 168.55 | 0.8 | 1.89 | 283.6 | 1169 | 9356 | 4652
168.55 | 169.45 | 0.9 | 2.792 | 194.4 | 293 | 427 | 723

SG‐07‐11 | Bearing 012 ‐ Dip 52 ‐ Length 158.6m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
146.75 | 147.45 | 0.7 | 0.676 | 40 | 1488 | 13100 | 14200
147.45 | 148.15 | 0.7 | 0.21 | 21 | 379 | 5831 | 12900
148.15 | 149.15 | 1 | 1.86 | 66.6 | 61 | 439 | 1206
149.15 | 150 | 0.85 | 1.331 | 222.4 | 451 | 3627 | 6933

SG‐07‐10 | Bearing 046 ‐ Dip 58 ‐ Length 162.9m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
154.3 | 154.65 | 0.35 | 5.143 | 992.3 | 756 | 2793 | 5026
154.65 | 155.25 | 0.6 | 0.381 | 27.5 | 102 | 657 | 923
155.25 | 155.9 | 0.65 | 0.667 | 130.2 | 154 | 729 | 1010
155.9 | 156.8 | 0.9 | 2.914 | 291.8 | 190 | 797 | 1757
156.8 | 157.55 | 0.75 | 4.183 | 926.8 | 1015 | 2995 | 3153
157.55 | 158.05 | 0.5 | 4.114 | 575.9 | 671 | 1486 | 1947

SG‐07‐09 | Bearing 037 ‐ Dip 45 ‐ Length 106.6m |  |  |  |
From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Cu ppm | Pb ppm | Zn ppm
99.75 | 100.55 | 0.8 | 1.02 | 147.1 | 80 | 552 | 1189
100.55 | 101.35 | 0.8 | 0.62 | 78.9 | 290 | 1300 | 1685
101.35 | 102.25 | 0.9 | 0.06 | 2.2 | 164 | 835 | 2108
102.25 | 102.95 | 0.7 | 2.051 | 297.9 | 4492 | 10070 | 23900

SG‐07‐08 | Bearing 35 ‐ Dip 55 ‐ Length 377.8 |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
missed ore shoot | N/A | N/A | N/A | N/A | N/A | N/A | N/A

SG‐07‐07 | Bearing 36 ‐ Dip 44 ‐ Length 281.55 |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
San Gonzalo Vein | 247.75 | 250.35 | 2.6 | 2.85 | 351 | 1.04 | 0.66

SG‐07‐06 | Bearing 47 ‐ Dip 58 ‐ Length 387.2m |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
Santiago Vein | 24.8 | 28.3 | 3.5 | 0.4 | 226 | NS | NS
Cross Vein | 280.65 | 280.9 | 0.25 | 0.5 | 2120 | 7.82 | NS
San Gonzalo | 367.35 | 371.5 | 3.85 | 0.1 | 11 | NS | NS

SG‐07‐05 | Bearing 51 ‐ Dip 69 ‐ Length 137m |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
Santiago Vein | 28.7 | 31.8 | 3.1 | 0.49 | 201 | NS | NS
Includes | 31.1 | 31.8 | 0.7 | 1.54 | 272 | NS | NS

SG‐07‐04 | Bearing 45 ‐ Dip 49 ‐ Length 312.7 |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
Saintiago Vein | 18.55 | 25 | 6.45 | 0.21 | 364 | NS | NS
(includes) | 20.85 | 21.9 | 1.05 | 0.29 | 990 | 0.21 | NS
" " | 21.9 | 22.8 | 0.9 | 0.49 | 433 | 0.16 | NS
Cross Vein | 31 | 34.05 | 3.05 | 0.18 | 86 | 0.17 | NS
San Gonzalo HW | 248.15 | 249.25 | 1.1 | 0.43 | 58 | 0.25 | 0.26
FW | 258.75 | 259 | 0.25 | 2.66 | 114 | 4.8 | 4.22

SG‐07‐03 | Bearing 66 ‐ Dip 43 ‐ Length 315m |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
San Gonzalo Vein | 187.45 | 188.7 | 1.25 | 3.57 | 341 | 0.6 | 0.87

SG‐07‐02 | Bearing 30 ‐ Dip 48 ‐ Length 323.7m |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
San Gonzalo Vein Hanging Wall Zone | 214.65 | 219.1 | 4.45 | 6.11 | 583.8 | 1.4 | 2.54
San Gonzalo Vein Foot Wall Zone | 252.65 | 256 | 3.35 | 6.91 | 21.1 | 1.55 | 2.33

SG‐07‐01 | Bearing 42 ‐ Dip 60 ‐ Length 386.8m |  |  |  |
| From (Metres) | To (Metres) | Down Hole Lengths (metres) | Au (g/t) | Ag (g/t) | Pb (%) | Zn (%)
Santiago Vein | 147 | 149.7 | 2.7 | 1.19 | 227 | >1% | >1%
San Gonzalo Vein Hanging Wall Zone | 357.3 | 362.15 | 4.85 | 0.64 | 343.2 | 0.36% | 0.63%
San Gonzalo Vein Foot Wall Zone | 372.65 | 375.05 | 2.4 | 2.41 | 712.4 | 0.50% | 0.13%

APPENDIX B

VERIFICATION DATA

Certificate of Analysis
Work Order: DU18580

To: | JOSE CARLOS RODRIGUEZ M. COMPANIA MINERA MEXICANA DE AVINO S.A DE C.V CALLE ALONSO DE PACHECO 300 COL. NUEVA VIZCAYA DURANGO DGO. 34080 MEXICO | Date: Jun 25, 2012

P.O. No. | : | SAN GONZALO
Project No. | : | SAN GONZALO
No. Of Samples | : | 8
Date Submitted | : | Jun 12, 2012
Report Comprises | : | Pages 1 to 2
|  | (Inclusive of Cover Sheet)

Comments:
ICP12B o 148 tiene una digesti6n es recomendable para Ia disoluci6n de minerales sulturosos y 6xidos de hierro debido a sus propiedades de oxidaci6n. Sin embargo, esta es Ia digesti6n geoquimica de SGS mas debil y no atacara a los minerales silicates. Per tal motive, debera considerarse una digesti6n parcial para Ia mayor!a de los elementos y no debera ser utilizado para determinaci6n de concentrados.

Certified By: |  |  |
|  | Martin Fernandez |
|  | Technician |

Report Footer: | L.N.R. | = Listed not received n.a. | I.S. | = Insufficient Sample |
| n.a. | = Not applicable | - | = No result |
| *INF | = Composition of this sample makes detection impossible by this method |
| M after a result denotes ppb to ppm conversion, % denotes ppm to % conversion |
| Methods marked with an asterisk (e.g. *NAAOBV) were subcontracted |
| Methods marked with the @symbol (e.g. @AAS21E) denote accredited tests |
This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms and conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. |
WARNING: The sample(s) to which the findings recorded herein (the "Findings") relate was (were) drawn and I or provided by the Client or by a third party acting at the Client's direction. The Findings constitute no warranty of the sample's representatiof the goods and strictly relate to the sample(s). The Company accepts no liability regard to the origin or source from which the sample(s) is/are said to be extracted. The findings report on the samples provided by the client and are not intended for commercial or contractual settlement purposes. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. |

SGS DE MEXICO, S.A. DE C.V. | Servicios Minerales Laboratorio Durango 2* de Selenio y Aluminio-Cd. Industrial Durango Mexico t(618) 814-09-32 f(618) 814-27-39 www.mx.sqs.com
|  | Member of the SGS Group (Societe Generale de Surveillance)

Final : DU18580 Order: SAN GONZALO | Page 2 of 2

Element Method Det.Lim. Units | WtKg WGH79 0 kg | Au @FAA313 0.01 g | Ag @AAS21E 0.5 gl | Ag @ICP14B 2 ppm | CL @ICP14 E 1 ppm | Pt @ICP14B 4 ppm | Zn @ICP14B 5 ppm
165019 | 3.320000 | 0.62E | 43.8 | >10 | 90 | 2660 | 421
165020 | 4.160000 | 0.615 | 42.8 | >10 | 1020 | 2400 | 553
165021 | 3.740000 | 0.587 | 38.5 | >10 | 2610 | 2660 | 751
165022 | 3.160000 | 0.565 | 69.0 | >10 | 1120 | 6650 | 779
165023 | 4.120000 | 0.505 | 58.1 | >10 | 1030 | 7540 | 868
165024 | 3.420000 | 0.470 | 92.1 | >10 | 1060 | 7070 | 1220
165025 | 3.160000 | 0.533 | 73.1 | >10 | 1230 | 8260 | 1250
165026 | 3.120000 | 0.473 | 55.7 | >10 | 583 | 5890 | 1380

This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms and conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. |
WARNING: The sample(s) to which the findings recorded herein (the "Findings") relate was (were) drawn and I or provided by the Client or by a third party acting at the Client's direction. The Findings constitute no warranty of the sample's representatiof the goods and strictly relate to the sample(s). The Company accepts no liability regard to the origin or source from which the sample(s) is/are said to be extracted. The findings report on the samples provided by the client and are not intended for commercial or contractual settlement purposes. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. |

SGS DE MEXICO, S.A. DE C.V. | Servicios Minerales Laboratorio Durango 2* de Selenio y Aluminio-Cd. Industrial Durango Mexico t(618) 814-09-32 f(618) 814-27-39 www.mx.sqs.com
|  | Member of the SGS Group (Societe Generale de Surveillance)

Certificate of Analysis
Work Order: VC121140

To: | Jose Ortiz COD SGS ASSAYERS C/0 F406501 SGS ASSAYERS 8282 SHERBROOKE STREET VANCOUVER BC V5X 4R6 | Date: Jul 11, 2012

P.O. No. | : | Samples: DU18580 165019-165026
Project No. | : | -
No. Of Samples | : | 8
Date Submitted | : | Jun 19, 2012
Report Comprises | : | Pages 1 to 2
|  | (Inclusive of Cover Sheet)

Distribution of unused material:
Store for 90 days:

Certified By: |  |  |
|  | Satpaul Gill |
|  | QAQC Chemist |

| SGS Minerals Services Geochemlstry Vancower conforms to the requirements of I SO/IEC 17025 for specific tests a s listed on their scope of accreditation which can be found at http://www.scc.ca/en/search/palcan/sgs |

Report Footer: | L.N.R. | = Listed not received n.a. | I.S. | = Insufficient Sample |
| n.a. | = Not applicable | - | = No result |
| *INF | = Composition of this sample makes detection impossible by this method |
| M after a result denotes ppb to ppm conversion, % denotes ppm to % conversion |
| Methods marked with an asterisk (e.g. *NAAOBV) were subcontracted |
| Methods marked with the @symbol (e.g. @AAS21E) denote accredited tests |
This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms and conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. |
WARNING: The sample(s) to which the findings recorded herein (the "Findings") relate was (were) drawn and I or provided by the Client or by a third party acting at the Client's direction. The Findings constitute no warranty of the sample's representatiof the goods and strictly relate to the sample(s). The Company accepts no liability regard to the origin or source from which the sample(s) is/are said to be extracted. The findings report on the samples provided by the client and are not intended for commercial or contractual settlement purposes. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. |

SGS Canada Inc. | Mineral Services 8282 Sherbrooke Street Vancouver BC t(604) 327-3436 f(604) 327-3423 www.ca.sgs.com
|  | Member of the SGS Group (Societe Generale de Surveillance)

Final: VC121140 Order: Samples: DU18580 165019-165026 | Page 2 of 2

Element Method Det.Lim. Units | Au FAA313 5 ppb | Cu ICP148 0.5 ppm | Pb ICP14B 2 ppm | Zn ICP148 1 ppm | Ag AAS21E 0.3 g/t
DU18580 165019 | 649 | 854 | 2880 | 431 | 41.2
DU18580 165020 | 647 | 997 | 2640 | 559 | 42.3
DU18580 185021 | 501 | 2430 | 2790 | 725 | 38.3
DU18580 185022 | 490 | 1060 | 6690 | 791 | 66.5
DU18580 165023 | 564 | 953 | 8140 | 895 | 57.8
DU18580 185024 | 510 | 1000 | 8850 | 1100 | 78.6
DU18580 165025 | 542 | 1110 | 6560 | 960 | 69.4
DU18580 185028 | 365 | 589 | 5530 | 1340 | 51.9

This document is issued by the Company under its General Conditions of Service accessible at http://www.sgs.com/terms and conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. |
WARNING: The sample(s) to which the findings recorded herein (the "Findings") relate was (were) drawn and I or provided by the Client or by a third party acting at the Client's direction. The Findings constitute no warranty of the sample's representatiof the goods and strictly relate to the sample(s). The Company accepts no liability regard to the origin or source from which the sample(s) is/are said to be extracted. The findings report on the samples provided by the client and are not intended for commercial or contractual settlement purposes. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law. |

SGS Canada Inc. | Mineral Services 8282 Sherbrooke Street Vancouver BC t(604) 327-3436 f(604) 327-3423 www.ca.sgs.com
|  | Member of the SGS Group (Societe Generale de Surveillance)

APPENDIX C

PROCESS FLOW DIAGRAMS

APPENDIX D

DESIGN CRITERIA

| PROCESS DESIGN CRITERIA |
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
GENERAL
Type Of Material (Tailings) |  | Silver-gold bearing material (oxide) |
Tailings Characteristics |  |  |
Tailings Specific Gravity |  | 2.720 | 7
Tailings Bulk Density | t/m3 | 1.605 | 2
Agglomerated Tailings Bulk Density | t/m3 | 1.2407 | 7
Tailing moisture content-Primary | % | 10.0 | 4
Tailing moisture content-Design | % | 12.5 | 7
Operating Schedule |  |  |
Shift/Day |  | 3 | 2
Hours/Shift | h | 8 | 2
Hours/Day | h | 24 | 2
Days/Year | days | 365 | 2
Plant Availability/Utilization |  |  |
Overall Plant Availability | % | 90 | 3
Annual Processing Rate | t | 500,000 | 1
Daily Processing Rate - Nominal | t/d | 1,370 | 5
Daily Processing Rate - Design | t/d | 1522.1 | 1/5
Daily Processing Rate - Assumed | t/d | 1522.1 | 1
Processing Rate | t/h | 63.4 | 5
Production-Oxide Tailings |  |  |
Total Oxide Tailings Tonnage - Actual | t | 2,091,074 | 2
Total Oxide Tailings Tonnage - Assumed | t | 2,000,000 | 1
Sulphide Tailings Tonnage - available | t | 3,000,000 | 2
Sulphide Tailings Tonnage - for treatment | t | 0 | 1
Total Tailings Treatment | t | 2,000,000 |
Period of Treatment | d | 1,460 |
Period of Treatment | y | 4 |
Head Grade: |  |  |
Silver | Ag g/t | 95.50 | 2
Gold | Au g/t | 0.53 | 2
P80 | microns | 225.00 | 7
Extraction: |  |  |
Silver | % | 73.0 | 7
Gold | % | 78.9 | 7
Laboratory Extraction: |  |  |
Silver | % | 67.8 | 7
Gold | % | 81.8 | 7
AGLOMERATION |  |
PLANT FEED PREPARATION / AGGLOMERATION |  |  |
Operating Shifts/Day |  | 3 | 3
Operating Hours/Day/Shift | hr | 8 | 2
Processing Rate | t/h | 63.42 | 5

Page 1 of 7

| PROCESS DESIGN CRITERIA |
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Agglomerator Type |  | Drum | 4/7
Agglomerator Processing Rate - maximum | t/h | 79 | 7
Agglomerator Dimensions: L/D ratio |  | 3.0 | 4
Agglomerator Size - Diameter | m | 2.0 | 4
Agglomerator Size - Length | m | 6.0 | 4
Rotation Speed | rpm | 10.5 | 4
Agglomerator Slope | degrees | 4 | 4
Cement Addition-Column Test | kg/t | 21.80 | 7
Lime Addition-Column Test | kg/t | 13.73 | 7
Cyanide Consumption-Column Test | kg/t | 2.32 | 7
Cement Addition-Design | kg/t | 10.90 | 3/4
Lime Addition-Design | kg/t | 6.87 | 3/4
Cyanide Consumption-Design | kg/t | 0.93 | 3/4
Agglomerated Product Size | mm | 6 to 15 | 7
Cement Addition | t/hr | 0.62 | 5
Lime Addition | t/hr | 0.39 | 5
Cyanide Addition | t/hr | 0.018 | 5
Moisture Content of Agglomerated Feed | % | 12.50 | 7
HEAP LEACH PAD |  |
Pad Liner Type |  | pvc | 4
Number of Pads |  | 1 | 1/2
Number of Lifts |  | 4 | 1/2
Height of Pad - 1 lift | m | 6.5 | 1/2
Maximum Height of Pad | m | 26 |
Slope of Leach Pad | % | 1.5 | 4
Tons on Pad per Lift | t | 500,000 |
Volume of Pad: one lift | m3 | 403010.8 |
Area of Pad: one lift | m2 | 62001.67 |
Volume of Heap required for Oxide tailings | m3 | 1,612,043 | 5
Dimensions of Pad: 4 lifts |  |  |
Width of Pad | m | 230 |
Length of Pad | m | 269.57 |
Volume of Pad ex Berms | m3 | 1612043 | 5
Maximum Length of Pad required - with berms | m | 283 |
Maximum Width of Pad - with berms | m | 243 |
Total Surface Area of Pad: |  |  |
Sloping Berm Width & Height-Bottom Lift | m | 6.50 |
Total Surface Area of Pad | m2 | 68665 |
Volume of Sloping Berm | m3 | 86625 |
Total Volume of Leach Pad | m3 | 1,698,668 | 5
Method of Stacking |  | Conveyor | 4
Curing Time | d | 5 | 4
HEAP LEACH PAD CONSTRUCTION |  |
Tailings Feed - actual | t/d | 1370 |
Tailings Feed - design | t/d | 1522 |
Reagents to Agglomerator | t/d | 25 |

Page 2 of 7

| PROCESS DESIGN CRITERIA |
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Daily Processing Rate - Total Feed | t/d | 1395 | 1
Volume of Daily Production of Heap Leach Feed | m3/d | 1124 | 7
Height of Pad | m | 6.5 |
Area of Daily Production | m2/d | 173 |
Width of Pad | m | 230 |
Length of Daily Advance of Pad | m/d | 0.75 |
LEACHING CIRCUIT
Diameter of Column | m | 0.102 | 7
Measured Flowrate through Column | ml/s | 0.05 | 7
Area of Column | m2 | 0.008171 | 5
Flowrate in Column Test | l/s/m2 | 0.00612 | 5
Solution Flowrate - Assumed | l/s/m2 | 0.00204 | 4
Solution Flowrate - Assumed | l/hr/m2 | 7.3 | 5
Solution pH |  | 10.5 | 7
Cyanide Solution Strength | g/l | 0.5 | 4/7
Leaching Period - Column Test | d | 81 |
Kinetic Leaching Rate on Heap-Slower |  | 1.6 |
Leaching Period - Assumed | d | 130 | 4
Calculation of Duration of Wash Period |  |  |
Total Wash Solution | l | 18.1 |
Flowrate Through Column | ml/s | 0.05 |
Flowrate Through Column | ml/hr | 180 |
Duration of Wash Period | hr | 100.6 |
Duration of Wash Period | d | 4.2 |
Duration of Wash Period on Heap | d | 6.7 |
Duration of Wash Period -Design | d | 7 |
Total Leach/Rinse Cycle | d | 137 |
Pad Life / Cycle Time per Lift | d | 365 |
Area of Pad Under Irrigation every day | m2 | 22412.74 |
Area of Pad Under Rinse/Wash every day | m2 | 1210.56 |
Volume of Solution to Heap for Leaching | m3/hr | 164.60 |
Volume of Solution to Heap for Rinsing | m3/hr | 8.89 |
Total Volume of Solution to Heap | m3/hr | 173.49 |
Impervious Layer | mm | 400 | 4
Solution Application / Spray | drippin | g |
Geomembrane Liner | mm | 1.5 |
Total Loading/Curing/Leaching/Rinsing Cycle | d | 142 |
Height of Column for Column Test | m | 3.048 | 7
Cyanide Addition to Barren Solution to Heap | t/hr | 0.044 |
Cyanide Addition as 20% solution | m3/hr | 0.221 |
METAL RECOVERY
Metal Recovery Process |  | Merrill Crowe | 4
Column Test Extraction: |  |  |
Column Test Sample Weight | kg | 30.940 | 7
Total Volume of Solution used for Column Test | l | 349.92 | 7
Silver | mg | 2156.982 | 7
Gold | mg | 12.938 | 7

Page 3 of 7

| PROCESS DESIGN CRITERIA |
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Pregnant Solution Assay: |  |  |
Silver | mg/l | 6.164 |
Gold | mg/l | 0.037 |
Calculated Pregnant Solution Assay: |  |  |
Silver | mg/l | 22.019 |
Gold | mg/l | 0.132 |
Daily Metal Production: |  |  |
Silver | kg/d | 91.680 |
Gold | kg/d | 0.550 |
PREGNANT and BARREN SOLUTION HANDLING
Rainfall - average per month | mm | 47 | 2
Rainfall - over Cure/Leach/Rinse Cycle | mm | 219 | 5
Rainfall | m3/hr | 4.42 |
Evaporation - assume | % | 10 | 4
Evaporation | m3/hr | 17.35 |
Pregnant Solution Pond Size - capacity in hours | hr | 15 |
Pregnant Solution Pond Size - Volume | m3 | 2408 |
Pregnant Solution Flowrate | m3/hr | 160.56 |
Barren Solution Pond Size - capacity in hours | hr | 15 |
Barren Solution Pond Size - Volume | m3 | 2408 |
Barren Solution Flowrate - ex Pregnant Solution | m3/hr | 160.56 |
Volume of Solution to Heap | m3/hr | 173.49 |
Make-Up Water Required | m3/hr | 12.93 |
Overflow Solution Pond Size - capacity in hours | hr | 28 |
Overflow Solution Pond Size - Volume | m3 | 4858 |
Pregnant Solution Pond - dimensions | m | 25x25x4.6 |
Barren Solution Pond - dimensions | m | 25x25x4.6 |
Overflow Solution Pond - dimensions | m | 35x35x4.6 |
Solids in Pregnant Solution | % | 0.01 | 4
Conventional Clarifier Flowrate | m3/hr/m2 | 0.58 |
Conventional Clarifier Area Required | m2 | 299.12 |
Diameter of Clarifier | m | 25 |
Filter Pre-Coat: Total | kg/m3 | 0.1 | 4
Filter Pre-Coat: Total | t/d | 0.39 |
Gland Service Water to Backwash Pumps | m3/hr | 0 |
Frequency of Backwash | no./day | 1 |
Duration of Backwash | hr | 0.5 |
Gland Service Water per Backwash per day | m3/hr | 0 |
Barren Solution per Backwash per day | m3/hr | 0.33 |
Total Solution for Backwash | m3/hr | 0.33 |
Total Solution for Evaporation | m3/hr | 17.68 |
Solids in Pregnant Solution | t/hr | 0.0161 |
Filter Pre-Coat | t/hr | 0.0161 |
Total Solids + Precoat per Backwash | t/day | 0.7707 |

Page 4 of 7

| PROCESS DESIGN CRITERIA
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Total Solids in Backwash | t/hr | 0.0321 |
Total Solids in Backwash | % | 8.759124088 |
Cyanide Addition to Precipitate Mixing Tank | t/hr | 0.044 |
Cyanide Addition at 20% solution | m3/hr | 0.22 |
Lead Nitrate Addition | t/day | 0.13 |
Lead Nitrate Addition at 20% solution | m3/hr | 0.03 |
Filter Pre-Coat | m3/hr | 0.14 |
PREGNANT SOLUTION
Precipitation Efficiency | % | 96 |
Barren Solution Assay: |  |  |
Silver | mg/l | 0.2466 |
Gold | mg/l | 0.0015 |
METAL PRECIPITATE PRODUCTION
Metal Production - Silver + Gold | kg/d | 92.23 |
Metal Precipitate Production | kg/d | 461.15 |
Precipitate Moisture Content | % | 20 |
Weight of Precipitate - wet | kg | 576.44 |
Weight of Precipitate - dry | kg | 461.15 |
Precipitate Assay: |  |  |
Silver | % | 19.88 |
Gold | % | 0.12 |
Base Metals | % | 80 |
Metal Precipitate Bag Capacity | t/bag | 2 |
Number of Days Production per Bag | day/bag | 4.3 |
Number of Bags per week | bag/week | 1.6 |
REAGENTS
Cement |  |  |
Cement-Actual | kg/t | 21.8 | 7
Cement-Design | kg/t | 10.9 | 3/4
SG | 3.14 |  |
Lime |  |  |
Lime-Actual | kg/t | 13.73 | 7
Lime-Design | kg/t | 6.865 | 3/4
SG | 2.45 |  |
Cyanide |  |  |
Cyanide, Solid [NaCN]-Assume | kg/t | 2.32 | 7
Cyanide, Solid [NaCN]-Design | kg/t | 0.928 | 3/4
SG | 1.6 |  |
Zinc Dust |  |  |
Zinc Dust-Actual & Design | kg/t | 0.96 | 4
SG | 7.1 |  |

Page 5 of 7

| PROCESS DESIGN CRITERIA
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Lead Nitrate |  |  |
Lead Nitrate-Actual & Design | kg/t | 0.19 | 4
SG |  | 4.6 |
Filter Pre-Coat |  |  |
Filter Pre-Coat -Design | kg/m3 | 0.10 | 4
SG |  |  |
Calcium Hypochlorite |  |  |
Calcium Hypochlorite-Design | kg/t | 0.05 | 4
SG |  |  |
Filter Aid |  |  |
Filter Aid-Design | kg/m3 | 0.10 | 4
SG |  |  |
Sodium Hydroxide |  |  |
Sodium Hydroxide-Design | kg/t | 0.09 |
SG |  | 2.13 |
Sulphuric Acid |  |  |
Sulphuric Acid-Design | kg/t | 0.76 |
SG | 1.84 |  |
REAGENT STOCKS: STORAGE AND SUPPLY FOR 1 WEEK
Cement Consumption | t/week | 104.52 |
Cement Stock- design | t/week | 135.88 |
Lime Consumption | t/week | 65.83 |
Lime Stock - design | t/week | 85.58 |
Cyanide [NaCN] Consumption | t/week | 8.90 |
Cyanide [NaCN] Stock - design | t/week | 11.6 |
Zinc Dust Consumption | t/week | 9.2 |
Zinc Dust Stock - design | t/week | 12.0 |
Lead Nitrate Consumption | t/week | 1.8 |
Lead Nitrate Stock - design | t/week | 2.4 |
Filter Pre-Coat Consumption | t/week | 2.70 |
Filter Pre-Coat Stock-Design | t/week | 3.5 |
Calcium Hypochlorite Consumption | t/week | 0.5 |
Calcium Hypochlorite Stock - design | t/week | 0.6 |
Filter Aid Consumption | t/week | 2.70 |
Filter Aid Stock - design | t/week | 3.5 |
Cement Consumption | t/d | 14.93 |
Cement Stock- design | t/d | 19.41 |
Lime Consumption | t/d | 9.40 |
Lime Stock - design | t/d | 12.23 |
Cyanide [NaCN] Consumption | t/d | 1.27 |
Cyanide [NaCN] Stock - design | t/d | 1.65 |
Zinc Dust Consumption | t/d | 1.32 |
Zinc Dust Stock - design | t/d | 1.71 |
Lead Nitrate Consumption | t/d | 0.26 |

Page 6 of 7

| PROCESS DESIGN CRITERIA
|  | CODES
PROJE C T: | Tailing s R et r e a tment-S c op i n g Stud y | 1 Client
CLIEN T: | Av i n o S il ve r & G o l d M i ne s | 2 MineStart Management Inc. NI43-101 Report
PROJE CT N UMB E R: | 11519201 | 3 Experience
DA T E: | 15-A ug-1 1 | 4 Refernce Literature
RE V: | A | 5 Calculation
|  | 6 Mass Balance
|  | 7 PRA Metallurgical Test Program
| All values are in metric units. |

DESCRIPTION | UNIT | VALUE | SOURCES
Lead Nitrate Stock - design | t/d | 0.34 |
Filter Pre-Coat Consumption | t/d | 0.39 |
Filter Pre-Coat Stock-Design | t/d | 0.50 |
Calcium Hypochlorite Consumption | t/d | 0.07 |
Calcium Hypochlorite Stock - design | t/d | 0.09 |
Filter Aid Consumption | t/d | 0.39 |
Filter Aid Stock - design | t/d | 0.50 |

Page 7 of 7

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0009-00

Subject Consent of Author
I, Jacques Ouellet, P.Eng., Ph.D., consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Jacques Ouellet, P.Eng., Ph.D.” |
Signature of Qualified Person |
Jacques Ouellet, P.Eng., Ph.D. |
Print name of Qualified Person |

| 555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 604.408.3788 | Fax 604.408.3722 | www.tetratech.com
| QP Consent - Jacques Ouellet

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0004-02

Subject Consent of Author
I, Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM, consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Michael F. O’Brien, M.Sc., Pr. Sci. Nat., |
FGSSA, FAusIMM, FSAIMM” |
Signature of Qualified Person |
Michael F. O’Brien, M.Sc., Pr. Sci. Nat., |
FGSSA, FAusIMM, FSAIMM |
Print name of Qualified Person |

| 555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 604.408.3788 | Fax 604.408.3722 | www.tetratech.com
| QP Consent - Michael F. O'Brien

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0004-02

Subject Consent of Author
I, Sabry Abdel Hafez, Ph.D., P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Sabry Abdel Hafez, Ph.D., P.Eng.” |
Signature of Qualified Person |
Sabry Abdel Hafez, Ph.D., P.Eng. |
Print name of Qualified Person |

| 555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 604.408.3788 | Fax 604.408.3722 | www.tetratech.com
| QP Consent - Sabry Abdel Hafez

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0005-02

Subject Consent of Author
I, Harvey Wayne Stoyko, P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Harvey Wayne Stoyko, P.Eng.” |
Signature of Qualified Person |
Harvey Wayne Stoyko, P.Eng. |
Print name of Qualified Person |

| 555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 604.408.3788 | Fax 604.408.3722 | www.tetratech.com
| QP Consent - Harvey Wayne Stoyko

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0006-02

Subject Consent of Author
I, Hassan Ghaffari, P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Hassan Ghaffari, P.Eng.” |
Signature of Qualified Person |
Hassan Ghaffari, P.Eng. |
Print name of Qualified Person |

| 555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 604.408.3788 | Fax 604.408.3722 | www.tetratech.com
| QP Consent - Hassan Ghaffari

Ju l y 2 4, 2 0 1 2 | 1151920100-COA-R0002-02

Subject Consent of Author
I, Monica Danon-Schaffer, Ph.D., P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property”, and dated July 24, 2012 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.
I also consent to any extracts from or a summary of the Technical Report in the news release, dated March 20, 2012, May 11, 2012, July 3, 2012, and July 18, 2012, of Avino Silver & Gold Mines Ltd.
I certify that I have read the news release being filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.
Dated this 24th day of July, 2012

“Original document signed and sealed by |
Monica Danon-Schaffer, Ph.D., P.Eng.” |
Signature of Qualified Person |
Monica Danon-Schaffer, Ph.D., P.Eng. |
Print name of Qualified Person |

| 330 Bay Street, Suite 900, Toronto, Ontario M5H 2S8, Canada
complex world |  |
| CLEAR SOLUTIONS TM | Tel 416.368.9080 | Fax 416.368.1963 | www.tetratech.com
| QP Consent - Monica Danon-Schaffer