Avino Re-Starts Mining Operations at the Avino Mine

VANCOUVER - Avino Silver & Gold Mines Ltd. reported the re-opening of the Avino Mine and the re-starting of mining operations. The Avino Mine is located 80km northeast of Durango, Mexico.

Avino CEO David Wolfin said, Since dewatering the mine, Avino has hauled out a total of 5,850 tonnes of material from the underground mine workings. This initial tonnage was blasted mill feed material left underground prior to the mine shutting down 13 years ago. Samples of this material have been assayed at the mine site laboratory and the analytical results indicate they are higher in grade than the historic stockpile material currently being processed in circuit #2. Avino intends to start processing this higher grade underground material in September 2014 using circuit #2. Concentrate produced from this underground feed material will be used for the solicitation of proposals from various trading firms who have expressed interest in buying the concentrate product.

Underground mining operations have also re-commenced at the Avino mine. Full scale mining is now underway at level 11.5 with drifts heading east and west along the vein; the new 1mW Caterpillar diesel generator, jumbo, scoop and air compressor are currently being used in the mining operation. Mining will also proceed on level 12, and the ramp will be extended from level 12.5 to level 17. Stockpiling of development material from mining operations is also underway with plans to feed circuit #2 on a full time basis starting in September 2014.

Circuit# 3 is on schedule for commissioning in the fourth quarter of 2014. The following activities had been completed or were in progress in preparation for the commissioning: Installation of ball mill rubber liners had been completed by personnel from Poligoma using their own equipment and tools with support from Avino's maintenance crew. -- At the crushing plant, the old product screen was dismantled and a new screen together with feed and discharge chutes were installed; additional structural steel and platforms were included to complete the installation. This work was carried out by FIMSA with assistance from Avino; Crushing operations are expected to resume at the end of August 2014. -- Electrical installation of the start/stop switches and wiring for the control system for the thickener was in progress; and construction of a roof over the thickener and filter area had been started.

Wolfin said, "The re-opening of underground mining operations represents a major milestone achieved as we deliver on our promise of growth. The local communities' support has been tremendous as they are thrilled we are creating new jobs for the region. Our dedicated operating team should be congratulated on their efforts to achieve targets under strict scheduling and financial restrictions. We continue to work towards completing our goal of increasing mill capacity from 500 TPD to 1,500 TPD in the fourth quarter of 2014."