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RECLAMATION PROVISION

6 Months Ended

Jun. 30, 2022

RECLAMATION PROVISION

Reclamation Provision

14. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at June 30, 2022, is $769 (December 31, 2021 – $726), and the undiscounted value of the obligation is $1,313 (December 31, 2021 – $1,252).

The present value of the obligation was calculated using a risk-free interest rate of 7.78% (December 31, 2021 – 7.78%) and an inflation rate of 7.36% (December 31, 2021 – 7.36%). 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 is as follows:

		June 30, 2022				December 31, 2021
Balance at beginning of the period		$	726			$	808
Changes in estimates			-				(105	)
Unwinding of discount related to continuing operations			21				47
Effect of movements in exchange rates			22				(24	)
Balance at end of the period		$	769			$	726

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- References

No definition available.

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- Definition

The disclosure of provisions. [Refer: Provisions]

+ References

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