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RECLAMATION PROVISION

12 Months Ended

Dec. 31, 2021

RECLAMATION PROVISION

15. RECLAMATION PROVISION

15.

RECLAMATION PROVISION

Management’s estimate of the reclamation provision at December 31, 2021, is $726 (December 31, 2020 – $808), and the undiscounted value of the obligation is $1,252 (December 31, 2020 – $1,275). The present value of the obligation was calculated using a risk-free interest rate of 7.78% (December 31, 2020 – 5.96%) and an inflation rate of 7.36% (December 31, 2020 – 3.15%). 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 Company’s reclamation provision for the year ended December 31, 2021, and the year ended December 31, 2020, is as follows:

		December 31, 2021				December 31, 2020
Balance at beginning of the period		$	808			$	1,524
Changes in estimates			(105	)			(737	)
Unwinding of discount related to continuing operations			47				99
Effect of movements in exchange rates			(24	)			(78	)
Balance at end of the period		$	726			$	808

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- References

No definition available.

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- Definition

The disclosure of provisions. [Refer: Provisions]

+ References

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