PEA Completed Update For The Avino Mine

VANCOUVER - Avino Silver & Gold Mines Ltd. has completed an updated Preliminary Economic Assessment (PEA) or retreating the  Avino mine tailings in Durango, Mexico, which includes the results from the Company’s recent 2016 Resource Estimate for the Avino property which included the San Gonzalo Mine, the main Avino Mine system, and the property’s oxide tailings.  Summaries of the current resources used for the PEA, a preliminary Life of Mine Plan (LOMP), operating costs, capital costs and project economics.  The PEA has been prepared in accordance with National Instrument 43-101, and a compliant Technical Report is being completed.

David Wolfin, President and CEO said, “We are extremely pleased with the very attractive economics of the Oxide Tailings Resource PEA.  These positive results will enable us to plan the next steps, identify any additional studies and move forward in advancing the oxide tailings project.  We intend to follow the recommendations contained in the Technical Report, which will include the pre-feasibility phase, and we continue to review alternative approaches for the storage of existing tailings.”

The Oxide Tailings deposit comprises historic recovery plant residue material deposited during the earlier period of open pit mining of the Avino Vein, when there were  poor process plant recoveries for silver and gold. The oxide tailings are partially covered by younger unconsolidated sulphide tailings on the northwest side of the property. The PEA incorporated Base Case metal prices of $18.50/oz silver, and $1,250/oz gold. Highlights of the Base Case economic estimates for the Oxide Tailings Resource. The base case PEA provides a solid foundation for focused growth and demonstrates the value of the existing infrastructure, and outlines a low capital cost option with attractive returns. The PEA focuses on the Oxide Tailings Retreatment of the Avino mine as a stand alone project with an initial 7 year life of mine plan (LOMP).  The Sulphides will be considered during the pre-feasibility study stage, and evaluated as to their own economic viability.  This approach provides attractive economic returns using lower initial capital costs.