Progress Update on Avino’s Mine Operation in Mexico

Gold Investing

Avino Silver & Gold Mines Ltd. (TSXV:ASM,FWB:GV6) provided updates on the 1st quarter 2012 at its Avino mine operation located near Durango, Mexico.

As quoted in the press release:

SAN GONZALO DEVELOPMENT
The decline from level 3 to level 4 has advanced 238 metres to date, a total of 155 metres remain until the level 4 elevation of 2172 metres is reached. Drifting on the San Gonzalo vein on the 3rd level is almost complete with the length of mineralized zone approaching 80 metres. The installation of the extraction drift to mine this zone with the accompanying draw points and raises have been planned for this month.
ET (AVINO) DEVELOPMENT
As indicated in our news release of March 5th, 2012, we have started to add key staff for the reopening of the Avino mine that was shutdown in 2001 due to low metal prices and the closure of the smelter. We expect to continue adding staff as we ramp up the different activities that are slated in the coming year.
MILLING
Milling operations have continued with the processing of the old Avino ET stockpiles at the rate of approximately 180tpd. With more than expected mill feed available from old stockpile tonnage, the mill has been operating 7 days per week, 24 hours per day since the beginning of March. The company will continue with this mill work schedule unless there is an issue with the quantity of mill feed. For the 1st quarter, the mill processed an estimated 14,600 tonnes of feed material producing 176 tonnes of concentrate grading approximately 3169 g/t silver and 39 g/t gold with minor amounts of copper. Proposals are being solicited for the sale of this concentrate.
All remaining concentrate inventory produced in 2011 has been sold with the last shipment trucked to Manzanillo in February. The provisional invoice for this shipment is being prepared for payment; the final invoice is not expected for another 2 months until the final weights, assays and metal prices are established.
TAILINGS STUDY
The updated technical report (PEA) in the tailings has been finalized by Tetra Tech (Wardrop) and filed on SEDAR as well as the Avino website. The recommendations outlined by Wardrop on grid drilling to firm up the resource estimate and metallurgical test work are proceeding as planned.