Management’s estimate of the reclamation provision at December 31, 2020, is $808 (December 31, 2019 - $1,524), and the undiscounted value of the obligation is $1,275 (December 31, 2019 - $1,985).

The present value of the obligation was calculated using a risk-free interest rate of 5.96% (December 31, 2019 - 6.86%) and an inflation rate of 3.15% (December 31, 2019 - 3.54%). Reclamation activities are estimated to begin in 2023 for the San Gonzalo Mine and in 2041 for the Avino Mine.

A reconciliation of the changes in the reclamation provision during the years ended December 31, 2020, and 2019, is as follows:

	December 31, 2020			December 31, 2019

Balance at beginning of the period	$	1,524		$	10,799
Changes in estimates		(737	)		840
Disposition of Bralorne (Note 5)		-			(10,828	)
Unwinding of discount related to Bralorne		-			217
Unwinding of discount related to continuing operations		99			104
Effect of movements in exchange rates		(78	)		392
Balance at end of the period	$	808		$	1,524

During the year ended December 31, 2020, the Company recognized a decrease in the asset retirement obligations in connection with the Avino and San Gonzalo Mines due to the changes in estimated timing of reclamation activities, and closure cost estimates. As a result, a reduction of $544 was recognized in relation to the capitalized costs of the Avino Mine (Note 11 - Plant, equipment and mining properties) and an amount of $193 was recognized in the consolidated statement of operations and comprehensive income (loss) in relation to the reduction of the asset retirement obligation of the San Gonzalo Mine.