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Avino Silver & Gold Mines Ltd. was formed in 1968 with the mandate of exploring for precious metals in Canada, the United States and Mexico. Avino's two major assets in Mexico are the Avino Mine and the Coneto Mine. The Avino mine was once described by Spaniards as a "mountain of silver." Indeed, the mine first opened in the 1500s and reportedly supplied considerable wealth to Spain for hundreds of years. It has operated intermittently ever since.

Avino Silver & Gold Mines Ltd.            [ASM:TSX-V]  

Avino Silver & Gold Mines Ltd. was formed in 1968 with the mandate of exploring for precious metals in Canada, the United States and Mexico. Since 1969, the Company has owned 49% of Cia Minera Mexicana de Avino, owner and operator of the Avino silver, gold and copper mine located near Durango in central Mexico.

Investigating property acquisition opportunities in Sonora and Chihuahua. Operates in Mexico as Cia. Minera Mexicana de Avino S.A. de C.V. Name changed from International Avino Mines Ltd. on 29Aug97. Owns 49% interest in Cia. Minera Mexicana de Avino which owns 100% interest in the Avino Ag-Au-Cu mine in Durango which has been in production since 1974. 2002 plans inquiring remaining 51% in the company.

Avino Ag-Au-Cu Mine, located 60 mi N of Durango. 27-Year History of Operation
Avino Silver and Gold Mines and Cia Minera Mexicana de Avino operated the mine from 1974 until 2001 when depressed silver prices forced the suspension of operations. During this time, the mine produced 497 tons of silver, 3 tons of gold and 11,000 tons of copper. Silver grades averaged from 3 to 7 ounces per ton. Early in 2003, Avino commissioned MineStart Management to examine the existing ore base, the feasibility of re-opening the mine and also the feasibility of processing the large tailings reserve. Options for the future are outlined in a report dated April, 2003. MineStart, the authors o fthe report, concluded that enough exploration potential exists at the property to "develop a reserve inventory to support a profitable resumption of operations." They also noted that: "Prior prospecting and preliminary exploration has found encouraging mineralized outcrop and veins to the east and north of the mine, and this justifies detailed exploration."

HISTORY:
The mine operated continuously for 28 years before low metals prices forced a temporary closure in 2001. Expectations for 1996 were for the production of 1,069,000 oz Ag, 9,253 oz Au and 2.7 million lbs of Cu. Mill feed is now 79% from underground extraction. Mine is an "antigua" where first production was by Conquistadors. Avino has been in contemporary production since 1974 and now operates at 1000 tpd. Grade averages 4.1 oz Ag, 0.04 oz Au and 0.50% Cu. Recoveries are around 77% for Ag, 74% for Au and 78% for Cu. Annual production figures and revenues were lower in 1996 than 1995 due to water and equipment shortages, lower ore grades and metal prices.

Production 1996 1995
Silver (oz) 771,951 1,069,000
Gold (oz) 6,104 9,253
Copper (lbs) 2,549,660 2,795,073
Metric Tonnes 304,420 325,236
Recovery Rates    
Gold 75% 77%
Silver 72% 72%
Copper 76% 76%
Financial ($U.S.)    
Gross sales 8,410,962 12,754,199
Net profit (pre-tax) 224,447 4,317,113

Shareholder update for May, 1997
CSW 22Nov96
Annual Report, 1996
Randol at Vancouver '96 Exhibitor
GCN #95 17May95

Coneto Au-Ag (Fluorite?) Property 100 km NW of the Avino Mine. The 1,500 ha. property and initial production was expected in early 1997. More than 20 km of vein system have been discovered in area. Has refurbished mill and is conducting further sampling. Preliminary grades show 4 principal veins with grades between 4.95 and 8.8 opt Ag and Au averaging 0.06 opt. A total of 17 potential veins are indicated.

GCN #103 29May97
Shareholder update for Dec. 1996