Avino Silver & Gold Mines Ltd. Technical Report On The Avino Property, Durango, Mexico Document No. 1251920100-Rep-R0001-02.1


The following excerpt is from the company's SEC filing.

above mean sea level amsl acre ac ampere A annum (year) a billion B billion tonnes Bt billion years ago Ga British thermal unit BTU centimetre cm cubic centimetre cm3 cubic feet per minute cfm cubic feet per second ft3/s cubic foot ft3 cubic inch in3 cubic metre m3 cubic yard yd3 Coefficients of Variation CVs day d days per week d/wk days per year (annum) d/a dead weight tonnes DWT decibel adjusted dBa decibel dB degree ° degrees Celsius °C diameter ø dollar (American) US$ dol lar (Canadian) Cdn$ dry metric ton dmt foot ft gallon gal gallons per minute (US) gpm Gigajoule GJ gigapascal GPa gigawatt GW gram g grams per litre g/L grams per tonne g/t greater than > hectare (10,000 m2) ha hertz Hz horsepower hp hour h hours per day h/d hours per week h/wk hours per year h/a inch in kilo (thousand) k     xiv       kilogram kg kilograms per cubic metre kg/m3 kilograms per hour kg/h kilograms per square metre kg/m2 kilometre km kilometres per hour km/h kilopascal kPa kilotonne kt kilovolt kV kilovolt-ampere kVA kilovolts kV kilowatt kW kilowatt hour kWh kilowatt hours per tonne kWh/t kilowatt hours per year kWh/a less than < litre L litres per minute L/m megabytes per second Mb/s megapascal MPa megavolt-ampere MVA megawatt MW metre m metres above sea level masl metres Baltic sea level mbsl metres per minute m/min metres per second m/s microns µm milligram mg milligrams per litre mg/L millilitre mL millimetre mm million M million bank cubic metres Mbm3 million bank cubic metres per annum Mbm3/a million tonnes Mt minute (plane angle) ' minute (time) min month mo ounce oz pascal Pa centipoise mPa∙s parts per million ppm parts per billion ppb percent % pound(s) lb pounds per square inch psi revolutions per minute rpm     xv       second (plane angle) " second (time) s short ton (2,000 lb) st short tons per day st/d short tons per year st/y specific gravity SG square centimetre cm2 square foot ft2 square inch in2 square kilometre km2 square metre m2 three-dimensional 3D tonne (1,000 kg) (metric ton) t tonnes per day t/d tonnes per hour t/h tonnes per year t/a tonnes seconds per hour metre cubed ts/hm3 volt V week wk weight/weight w/w wet metric ton wmt yard yd

acid-base accounting ABA atomic absorption AA Avino Mine the Property or the Project Avino Silver & Gold Mines Ltd. Avino caliper volume calculation CV Cannon-Hicks & Associates Ltd. Cannon-Hicks capital cost estimate CAPEX carbon-in-pulp CIP Compañía Minera Mexicana de Avino CMMA     xvi       continuous vat leaching CVL digital terrain model DTM Elena Toloso Zone ET Zone Environmental Impact Assessment EIA fire assay FA general and administrative G&A global positioning system GPS inductively coupled plasma spectroscopy method ICP-MS inductively coupled plasma ICP internal rate of return IRR International Organization for Standardization ISO inverse distance squared ID2 inverse distance ID Kriging Efficiency KE Minerales de Avino, Sociedad Anonima de Capital Variable Minerales MineStart Management Inc. MMI nearest neighbor NN net present value NPV net smelter returns NSRs New York Stock Exchange NYSE operating cost estimate OPEX ordinary kriging OK preliminary economic assessment PEA Process Research Associates Ltd. PRA Qualified Person QP quality assurance/quality control QA/QC reverse circulation RC silver equivalent Ag_Eq standard reference materials SRMs theoretical slope of regression ZZ Toronto Stock Exchange Venture Exchange TSXV Universal Transverse Mercator UTM water displacement WD     xvii  

The Avino Mine (the Property or the Project), near Durango, Mexico, is Avino’s principal asset and is the subject of this technical report, which includes a current resource estimate on the Avino and San Gonzalo veins, as well as the previously reported estimate on the oxide tailings (Tetra Tech 2012). Avino holds a 96.5996% interest in the Property through its subsidiary company called Compañía Minera Mexicana de Avino (CMMA). Avino commenced development, including drilling and bulk sampling, on the San Gonzalo vein in 2010 and this work is ongoing. This marks the resumption of activity on the Property since 2001, when low metal prices and the closure of a key smelter caused the mine to close after having been in operation continuously for 27 years. Between 1976 and 2001, the mine produced approximately 497 t of silver, 3 t of gold, and 11,000 t of copper (Slim 2005) as well as an apparently undocumented amount of lead.

This report includes a summary of material information concerning a preliminary economic assessment (PEA) conducted on part of the Property by Tetra Tech and filed in 2012. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the resource estimate will be realized.

The majority of the information has been sourced from data provided by Avino, Avino internal reports, Slim (2005d), and Gunning (2009). The majority of the information was provided in English, but some information was written in Spanish and subsequently translated into English.

The Property is located in Durango State in North Central Mexico, within the Sierra Madre Silver Belt, 82 km northeast of Durango City (Figure 1.1). The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha. Of these, 22 mineral concessions, totalling 1,005.104 ha, are held by CMMA (Avino’s Mexican subsidiary company), by Promotora Avino SA de CV, and by Susesion de la Sra. Elena del Hoyo Algara de Ysita. Ownership proportions are summarized in Table 1.1.

Through its subsidiary company, Avino entered into an agreement (the Agreement) on February 18, 2012 with Minerales de Avino, Sociedad Anonima de Capital Variable (Minerales), whereby Minerales has indirectly granted to Avino the exclusive mining and occupation rights to the La Platosa concession.  The La Platosa concession covers 98.83 ha and hosts the Avino vein and Elena Toloso Zone (ET Zone).

Pursuant to the Agreement, Avino has the exclusive right to explore and mine the concession for an initial period of 15 years, with the option to extend the agreement for another 5 years.  In consideration of the grant of these rights, Avino must pay to Minerales the sum of US$250,000 by the issuance of common shares of Avino.  Avino will have a period of 24 months for the development of mining facilities.  Avino has also agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (NSRs), at the commencement of commercial production from the concession.

All concessions are current and up to date based on information received.  Mineral concessions in Mexico do not include surface rights and Avino has entered into agreements with communal landowners (Ejidos) of San Jose de Avino, for the temporary occupation and surface rights of the concessions.

The Property is located within the Sierra de Gamon, on the east flank of the Sierra Madre Occidental. The area is a geological window into the Lower Volcanic series and consists mainly of volcanic flows, sills, and tuffaceous layers of andesite, rhyolite, and trachyte.  Individual rock units vary from 300 to 800 m in thickness.  Andesitic rocks outcrop over most of the region with other rock types occurring more sparsely to the north (Slim, 2005d).

A large monzonitic intrusion is observed in the region in the form of dykes and small stocks, which appear to be linked to the onset of the Avino vein mineralization.  Other post-mineralization dykes of intermediate to felsic composition outcrop in various areas and appear to cause minor structural displacements.  A number of thin mafic sills are also found in various parts of the region and are related to recent volcanism.

Regionally, the Avino concession is situated within a 12 km north-south by 8.5 km caldera, which hosts numerous low sulphidation epithermal veins, breccias, stockwork and silicified zones. These zones grade into a “near porphyry” environment, particularly in the Avino Mine area. The caldera has been uplifted by regional north trending block faulting (a graben structure), exposing a window of andesitic pyroclastic rocks of the lower volcanic sequence, a favourable host rock, within the caldera. This sequence is overlain by rhyolite to trachytes with extensive ignimbrite layers forming the upper volcanic sequence and is intruded by monzonite bodies. The basal andesite-bearing conglomerate and underlying Paleozoic basement sedimentary rocks (consisting of shales, sandstones and conglomerates) have been identified on the Avino concession in the south-central portion of the caldera, covering the Guadalupe, Santiago, San Jorge, the San Gonzalo Trend, Malinche, Porterito and Yolanda areas. A northerly trending felsic dyke, probably a feeder to the upper volcanic sequence, transects the Property and many of the veins. The Aguila Mexicana low temperature vein system, with significant widths but overall low precious metal values, trends north-northwest, similar to the felsic dyke and with similar continuity across the property. The two structures may occupy deep crustal faults that controlled volcanism and mineralization, with the felsic dyke structure controlling the emplacement of the Avino, Nuestra Senora and El Fuerte-Potosina volcanic centres and the Aguila Mexicana controlling the Cerro San Jose and El Fuerte-Potosina volcanic centres (Paulter 2006).

Silver- and gold-bearing veins crosscut the various lithologies and are generally oriented north-northwest to south-southeast and northwest to southeast. The rocks have been weathered and leached in the upper sections, as a result of contact with atmospheric waters. The oxide tailings material is primarily from this source, whereas the sulphide tailings are predominantly from material sourced at depth from the underground workings. In Mexico, these types of deposits can have large lateral extents, but can be limited in the vertical continuity of grades.

The valuable minerals found during the period of mining of the oxide zone were reported to be argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver, gold and native copper. The gangue minerals include hematite, chlorite, quartz, barite, pyrite, arsenopyrite and pyrrhotite. Malachite, anglesite, and limonite are common in the quartz zones of the weathered parts of the oxide material.

The Avino vein was the primary deposit mined during the 27 years of open pit and underground production prior to 2001. It is 1.6 km long and 60 m wide on the surface. To date, the deepest level mined was at the 2,070 m level (330 m below surface).

The San Gonzalo vein system, including the crosscutting Angelica vein, is located 2 km northeast of the Avino vein. It constitutes a strongly developed vein system over 25 m across, trending 300 to 325°/80° northeast to 77° south. It is characterized by banded textures and open-space filling and has an average width of 2 m. The silica-pyrite or iron oxide-sericite alteration with additional stockworking extends across 300 m, south of the main San Gonzalo vein. The vein was mined historically and underground workings extend over an area approximately 150 m along strike and 136 m in depth. The age of the tailings associated with the vein is unclear.

The tailings are situated approximately 500 m west-southwest of the main shaft to the old underground workings. The oxide tailings (at the bottom of the pile) are primarily derived from weathered and oxidized rocks close to the surface on the Property, whereas the sulphide tailings (at the top of the pile) are predominantly derived from material sourced at depth from the underground workings. At this time, it is not clear what the real nature of the chemical difference between the two is, but they are distinctly different in colour. The sulphide tailings, in the absence of any definitive sampling data penetrating the depth of the pile, are an exploration target at best.

The Avino system and San Gonzalo system mineral resources were modelled and estimated using Datamine™ software version 3.20.6140.0. The reported mineral resource was interpolated using ordinary kriging (OK) and capped grades. Avino mineralization included the interpolation of silver, gold and copper, while San Gonzalo mineralization included the interpolation of silver and gold. Reported cut-offs utilize a silver equivalent (Ag_Eq) calculation where the total metal value is converted into an in situ silver resource. For reporting purposes, a base-case Ag_Eq cut-off of 100 g/t is used for the Avino system and an Ag_Eq cut-off of 150 g/t is used for the San Gonzalo system. Current cut-offs used for financial projections by Avino, based on recent market prices, include 80 g/t for the Avino system and 120 g/t for the San Gonzalo system.

The oxide tailings mineral resource was estimated using Geovariance Isatis™ software and OK interpolation with uncapped grades. The assay values for this estimate are based on 28 drillholes which were completed on the tailings by CMMA in 1990, and include 407.75 m of drilling and 383 assays of both gold and silver. A specific gravity of 1.605 was used based on the global average for the oxide tailings reported by Slim (2005d). For reporting purposes, a silver cut-off of 50 g/t was used; an Ag_Eq value was not calculated for the oxide tailings. This mineral resource was estimated by Mr. Mike O’Brien, and has an effective date of July 24, 2012. It was originally disclosed by Tetra Tech (2012), but is considered current.

Table 1.2 provides the base case values for all current mineral resources for the Avino Mine, including the Avino and San Gonzalo systems and the oxide tailings.

Avino is not conducting mining activity on the Avino vein. No mineral processing methods or metallurgical testing is underway or proposed for the Avino vein.

Prior to the mine shutting down in 2001, Avino operated a 1,000 t/d processing plant producing a copper concentrate that was sold to a smelter in San Luis Potosi. The plant consisted of a conventional three-stage crushing circuit with the tertiary crusher in closed circuit with a screen. Fine crushed material was fed to a ball mill and classified with a cyclone. The fines from the cyclone reported to the flotation circuit where typical flotation reagents for copper minerals were used. The concentrate from the rougher and scavenger circuits were upgraded in a cleaner circuit with the final concentrate reporting to a thickener, vacuum filter and dryer. The concentrate was dried to approximately 8% moisture and then shipped to the smelter. Flotation tailing was pumped to the permitted tailings impoundment where decant water is reclaimed for process use.

Avino is currently conducting mining activity on the San Gonzalo vein, including processing of San Gonzalo vein material at the mine plant.

The process plant consists of crushing and grinding facilities, followed by a flotation process circuit to recover and upgrade silver and gold from the feed material. Common reagents were used within the flotation circuit. The flotation concentrate is thickened, filtered to 9.9% moisture content, and sent to the concentrate stockpile for subsequent shipping to customers.

Tetra Tech used the estimated grade values and test work results as reported by MineStart Management Inc. (MMI) and Process Research Associates Ltd. (PRA), who conducted the metallurgical tests.

Tetra Tech investigated gravity separation, flotation, cyanide leach, carbon-in-pulp, and heap leach processing options. Using the recoveries and process conditions resulting from these tests, the capital costs to construct a processing plant using selected process options were developed while the operating costs associated with each option were determined and a financial model compiled. A heap leach operation indicated the best financial alternative.

Avino is not currently conducting mining activity on the Avino vein. In addition, no mining methods are currently proposed for any potential mining activity on the Avino vein.

Avino is currently conducting mining activity on the San Gonzalo vein. Both cut-and-fill and shrinkage stoping are used to feed the mill which is currently configured to accommodate 230 t/d of dry material from San Gonzalo. A contractor is used for haulage. More information can be found in Section 16.2.

This tailings mineral resource will be mined through surface methods and without blasting. A truck/front-end loader arrangement has been selected and will operate one 8 h shift per day, 365 d/a for the 4.7-year life of this Project.

Initially the oxide tailings will be processed without having to move the sulphide tailings, which covers a portion of the oxide tailings. Not all of the sulphide tailings need to be removed to gain access to the oxide tailings. Approximately 0.5 Mt/a of oxide tailings will be sent to the heap leach pad.

Environmental settings, permits and registrations, and environmental management strategies that may be required for the Project are summarized in Section 20.0. Permits and authorizations required for the operation of the Project may include an operating permit, an application for surface tenures, a waste water discharge registration, a hazardous waste generator's registration, and an Environmental Impact Assessment (EIA) or Evaluación de Impacto Ambiental. Acid-base accounting (ABA) tests have indicated that mild acid generation may already have started on the tailings dam. A gap analysis and additional tests to further characterize current conditions of the tailings should be completed to properly design a tailings management plan.

Avino is not currently conducting mining activity on the Avino vein.  No capital or operating costs have been proposed for any potential mining activity on the Avino vein.

The actual capital expenditures to date on the San Gonzalo vein are summarized in Table 1.3.  The capital expenditures (in US dollars) have been broken down by year and area.

Mine and mill capital costs were attributed to equipment purchases. Development was for the construction of the haulage ramp and installation labour and geological for engineering services.

The mine and milling costs included operating and maintenance labour together with the associated consumable supplies.  Power was included in the milling costs.  The geological component was mostly technical labour.

Tetra Tech (2012) developed the capital cost estimate (CAPEX) for the Project based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings.  A total cost of US$29.1 million, including contingency, was estimated as the CAPEX for the Project (Table 1.5).

Table 1.6 gives the overall estimated cost summary for the processing facility and the G&A costs based on 1,370 t/d, with an availability of 90% and 365 operating days per year.

The annual operating cost estimate (OPEX) for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at a processing rate of 1,370 t/d.  An incremental increase in the G&A OPEX is estimated to be US$752,656, or US$1.51/t of tailings treated.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.  Furthermore, there is no certainty that the resource estimate will be realized.  Mineral resources that are not mineral reserves and have not demonstrated economic viability.

Tetra Tech’s recommendations are summarized below.  These recommendations are not required for continued mine development on the Property, and therefore a cost estimate for this work is not provided.  The recommendations cover a variety of concerns noted by Tetra Tech regarding database management, quality assurance/quality control (QA/QC), health and safety, and environmental factors.

Tetra Tech recommends a single, compiled database be maintained, containing all drillhole and channel sample data for both veins. Additional detailed recommendations related to this database are provided in Section 26.1.1.

Geology data for the mine is not currently being stored in a digital format, and the geology interpretation is inconsistent and at times incorrect. Specific recommendations for improving geology data capture and interpretation are provided in Section 26.1.2.

Tetra Tech recommends that a multi-shot, non-magnetic instrument (Reflex Gyro or Reflex Maxibor) be used for downhole surveys on all future drillholes on the Property. Survey measurements should be collected at least every 10 m down the hole, and all drillholes should be cemented following completion.

Tetra Tech recommends that all future specific gravity analyses be completed using the water displacement method, which is generally more accurate than caliper measurement. Additional detailed recommendations are provided in Section 26.1.4.

Tetra Tech recommends QA/QC samples be included in all drilling and channel sampling completed on the Property, according to industry best practices. Additional detailed recommendations are provided in Section 26.1.5.

For the confidence in the Inferred Mineral Resource of oxide tailings to be improved, a drilling campaign should be carried out with suitable equipment (sonic drilling is recommended to recover unconsolidated material with variable moisture content). At the same time, the overlying deposit of sulphide tailings should be drilled. To achieve a nominal drill collar spacing of 50 m by 50 m, 90 holes with an average length of 20 m would be required for a total of 1,800 m of drilling.

Additional surface drilling on the Avino and San Gonzalo veins is not currently planned by Avino. Drilling on the San Gonzalo vein using Avino’s underground diamond drill is planned as drift development progresses, with the goal of further definition of the San Gonzalo vein and in particular of high grade areas.

A resource estimate for the sulphide tailings should be completed for mine planning purposes, in addition to an updated oxide tailings resource estimate, following the drilling program recommended above.

Both the Avino and San Gonzalo veins contain mineral resources estimated at a classification level of Indicated or higher.  As such, further drilling would not be required to include these resources in economic analyses at a prefeasibility or feasibility level.  Further drilling would be required in order to include any Inferred resources in these studies, however.

For the next phase of the study, Tetra Tech recommends that Avino submit representative samples from both the Avino and San Gonzalo veins for further metallurgical tests.

Based on the conclusions within the components of this technical report, it is recommended that the following tasks could be executed for verifying the material within the tailings:

·   drill the surface of both tailings dam areas to determine the volumes and bulk density of each of the oxide and sulphide tailings material

·   take sufficient amounts of samples from both oxide and sulphide tailings to obtain representative samples for assay and metallurgical test work to confirm the grade of the deposit and the recovery of silver and gold from the heap leach process

·   use the metallurgical results from the test work program to confirm/define the duration of leaching on the pad, the reagent consumption values and the silver and gold precipitation efficiencies

·   based on accurate assay and reproducible metallurgical test work data, prepare an economic analysis for the retreatment of the oxide tailings dam material, the sulphide tailings dam material, and for the treatment of both oxide and sulphide tailings material.

The suitability and/or the possibility of refurbishing the existing equipment at the Avino Mine plant site needs to be evaluated more closely.  The general availability of used equipment from other locations in the Durango district, or in Mexico, would need to be investigated.

The option of whether the sulphide tailings should be re-treated on the heap or relocated and dumped elsewhere, while possibly being treated for environmental remediation, is not known at this stage.  The absence of reliable sulphide tailings dump metallurgical information makes quantification difficult.  A detailed trade-off study should be undertaken to determine whether the re-treatment of this material would contribute to the profitability of the Project.

Government agencies should be consulted prior to the permitting process to determine if current permits for the San Gonzalo Mine can been revised.  The cost of expropriating agricultural land for the leach pad, and the cost of water which would have to be redirected to the heap leach project but which is currently used for agricultural purposes has not been assessed.  Once the mine plan, site layout and tailings management plan are further along and have definitive locations, the cost of these factors should be addressed.  The cost for monitoring environmental effects post mine closure needs to be estimated.

A detailed trade-off study should be undertaken to characterize current conditions of the sulphide tailings and to determine whether the re-treatment of this material would contribute to the profitability of the Project.

There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings was initiated in 2012 following the construction of a water treatment plant.

Tetra Tech has numerous recommendations related to mining of the Avino and San Gonzalo veins, including many with health and safety implications. These are provided in detail in Section 26.4.

Tetra Tech recommends that a PEA be completed for the entire Property, including a resource estimate for the sulphide tailings and an updated estimate for the oxide tailings.

  2.0   INTRODUCTION   Avino is a Canadian-based mining and exploration company listed on the TSXV and NYSE, trading under the symbol “ASM”.  Avino has precious metal properties in Mexico and Canada and has a head office located at 900-570 Granville Street, Vancouver, BC, Canada, V6C 3P1.   Tetra Tech has been retained by Avino to produce a new technical report on the Avino Property.  The primary purpose of this new report is to disclose two new mineral resource estimates for the Avino vein and San Gonzalo vein portions of the Property.  The report also includes a summary of curent information previously disclosed in a Tetra Tech report filed in 2012, comprising a mineral resource estimate and preliminary economic assessment on the oxide tailings portion of the Property.  This report has been prepared in accordance with National Instrument 43-101 and Form 43-101F.   2.1.1  Units of Measurement   All units of measurement used in this technical report and resource estimate are in metric, and currency is expressed in US dollars, unless otherwise stated.   2.2   Effective Dates   The effective date of this report is July 19, 2013.   2.3   Information and Data Sources   The majority of the information has been sourced from data provided by Avino, Avino internal reports, Slim (2005d), and Gunning (2009).  The majority of the information was provided in English, but some information was written in Spanish and subsequently translated into English.   In preparation of this report, various historical engineering, geological and management reports compiled about the Project or site were reviewed and supplemented by direct site examinations and investigations.  All the data files reviewed for this study were provided by Avino in the form of hard copy documents, .pdf reports, .xls files, email correspondence, and personal communication with management and personnel from Avino.  Work completed by Avino includes several decades of open pit and underground mining, drilling and sampling, trenching, metallurgical testing, and geophysical surveying.         Avino Silver & Gold Mines Ltd. 2-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The main sources of information in preparing this report are:   ·   Gunning, D.  2009.  Resource Estimate on the San Gonzalo Vein – A Part of the Avino Mine, Durango, Mexico, for Avino Silver and Gold Mines Ltd.  Prepared by Orequest.  Effective date August 31, 2009.   ·   Slim, B.  2005d.  A Tailings Resource.  Prepared for Avino Silver & Gold Mines Ltd.  Report prepared by Bryan Slim, MineStart Management Inc.  October 25, 2005.   ·   Huang, J. and Tan, G.  2005.  Metallurgical Test Work on Avino Tailings, Durango, Mexico.  Report to Brian Slim, MineStart Management Inc.  Prepared by Process Research Associates Ltd.  March 28, 2005.   A complete list of references is provided in Section 27.0.         Avino Silver & Gold Mines Ltd. 2-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  3.0  RELIANCE ON OTHER EXPERTS   In preparation of this report, Tetra Tech has relied upon others for information, and disclaims responsibility for information derived from reports pertaining to mineral tenure, property ownership, surface rights, environment, royalties, and social issues, as discussed in the following sections:   ·   mineral tenure, property ownership, royalties and surface rights and discussed in Sections 4.2 and 4.3   ·   environmental and and social issues are discussed in Section 20.0 and in greater detail in Tetra Tech’s previous report (Tetra Tech 2012).             Avino Silver & Gold Mines Ltd. 3-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  4.0   PROPERTY DESCRIPTION AND LOCATION   4.1   Location   The Property is located in Durango State in North Central Mexico, within the Sierra Madre Silver Belt on the eastern edge of the Sierra Madre Occidental mountain range. The nearest major center is the city of Durango, 82 km to the southwest of the Property. The Property is within the municipality of Pánuco de Coronado between the towns of Pánuco de Coronado and San José de Avino. The Property is located at latitude N 24° 53', longitude W 104° 31', 14 km northwest of Highway 40D.   The Property is situated as illustrated in Figure 4.1 and Figure 4.2.   4.2   Property Ownership   The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha.   In 1968, Avino Mines and Resources Ltd. acquired a 49% interest in CMMA and Minera San José de Avino SA, which together held mineral claims totalling 2,626 ha (6,488 ac). Avino Mines and Resources Ltd. retained Vancouver based Cannon-Hicks & Associates Ltd. (Cannon-Hicks), a mining consulting firm, to conduct the exploration and development of the Property. Cannon-Hicks exploration activities included surface and underground sampling and diamond drilling (VSE 1979).   In early 1970, Avino Mines and Resources Ltd. signed a letter of intent with Denison Mines Ltd. for the future development of the Avino Mine. However, the agreement was never signed.   In May 1970, Avino Mines and Resources Ltd. signed a formal agreement with Selco Mining and Development (Selco), a division of Selection Trust Company. Due to other commitments, Selco abandoned its interest in the Project in 1973 (VSE 1979).   In October 1973, Avino Mines and Resources Ltd. signed a new agreement with S.G.L. Ltd. and Sheridan Geophysics Ltd. Under the terms of the agreement, S.G.L. Ltd. was to provide up to $500,000 plus the management to erect a production plant. The agreement provided for the return of the capital from first cash flow, plus a management fee and interest payment together with an option to convert a portion of the advanced funds to common shares. The agreement with S.G.L. Ltd. was terminated in mid-1976.         Avino Silver & Gold Mines Ltd. 4-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 4.1 General Property Location Map     4.3 Mineral Concessions and Agreements   The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha (Figure 4.3). Of these, 22 mineral concessions totalling 1,005.104 ha, are held by CMMA (Avino’s Mexican subsidiary company), Promotora Avino SA de CV, and Susesion de la Sra. Elena del Hoyo Algara de Ysita. Ownership proportions and mineral concessions are summarized in Table 4.1 and Table 4.2, respectively.         Avino Silver & Gold Mines Ltd. 4-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 4.2 Property Location Map     Table 4.1 Summary of Property Ownership   Company Relationship to Avino Silver and Gold Mines Ltd. Effective Ownership of Avino Mine Property (%) CMMA Subsidiary 96.60 Promotora Avino, S.A. de C.V. Subsidiary 2.68 Total Effective Ownership of Avino Mine Property - 99.28 Estate of Ysita Non-controlling interest 0.72 Total - 100.00       Avino Silver & Gold Mines Ltd. 4-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 4.2 Mineral Concessions – Avino Property   Concession Name Concession No. Location Hectares (ha) Date Acquired Expiration Date Cost (US$/ha) Payment (US$) Agrupamiento San Jose (Purisma Chica) 155597 Pánuco 136.708 30/09/1971 29/09/2021 124.74 17,052.91 Agrupamiento (San Jose) 164985 Pánuco 8 13/08/1979 12/8/2029 124.74 997.92 Agrupamiento San Jose (El Trompo) 184397 Pánuco 81.547 13/10/1989 12/10/2039 124.74 10,172.12 Agrupamiento San Jose (Gran Lucero) 189477 Pánuco 161.468 5/12/1990 4/12/2040 124.74 20,141.57 Agrupamiento San Jose (San Carlos) 117411 Pánuco 4.451 5/2/1961 16/12/2061 124.74 555.16 Agrupamiento San Jose (San Pedro Y San Pablo) 139615 Pánuco 12 22/06/1959 21/06/2061 124.74 1,496.88 Aguila Mexicana 215733 Pánuco 36.768 12/3/2004 29/06/2044 70.88 2,606.12 Ampliacion La Malinche 204177 Pánuco 6.01 18/12/1996 17/12/2046 124.74 749.72 Ampliacion San Gonzalo 191837 Pánuco 5.85 19/12/1991 18/12/2041 124.74 729.67 Avino Grande Ix 216005 Pánuco 19.558 2/4/2002 1/4/2052 70.88 1,386.24 Avino Grande Viii 215224 Pánuco 22.882 14/02/2002 13/02/2052 70.88 1,621.85 El Caracol 215732 Pánuco 102.382 12/3/2002 28/04/2044 70.88 7,256.84 El Potrerito 185328 Pánuco 9 14/12/1989 13/12/2039 124.74 1,122.66 Fernando 205401 Pánuco 72.129 29/08/1997 28/08/2047 124.74 8,997.33 La Estela 179658 Pánuco 14 11/12/1986 12/12/2036 124.74 1,746.36 La Malinche 203256 Pánuco 9 28/06/1996 27/06/2046 124.74 1,122.66 Los Angeles 154410 Pánuco 23.713 25/03/1971 24/03/2021 124.74 2,957.96 Negro Jose 218252 Pánuco 58 17/10/2002 16/10/2052 70.88 4,111.04 San Gonzalo 190748 Pánuco 12 29/04/1991 28/04/2041 124.74 1,496.88 San Martin De Porres 222909 Pánuco 30 15/09/2004 14/09/2054 70.88 2,126.40 Santa Ana 195678 Pánuco 136.182 14/09/1992 13/09/2042 124.74 16,987.38 Yolanda 191083 Pánuco 43.458 29/04/1991 28/04/2041 124.74 5,420.91 Total - - 1,005.106 - - - -   Note:           Concession “La Platosa” is not included because it is not held by Avino.       Avino Silver & Gold Mines Ltd. 4-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 4.3 Map of Avino Mine Property Concessions     On February 18, 2012, through its subsidiary company CMMA, Avino re-entered into an agreement (the Agreement) with Minerales, whereby Minerales has indirectly granted to Avino the exclusive mining and occupation rights to the La Platosa concession. The La Platosa concession covers 98.83 ha and hosts the Avino vein and ET Zone.   Pursuant to the Agreement, Avino has the exclusive right to explore and mine the concession for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the grant of these rights, Avino must pay to Minerales the sum of US$250,000, by the issuance of common shares of Avino. Avino will have a period of 24 months for the development of mining facilities.   Avino has agreed to pay to Minerales a royalty equal to 3.5% of NSRs, at the commencement of commercial production from the concession. In addition, after the development period, if the minimum monthly processing rate of the mine facilities is less than 15,000 t, then Avino must pay to Minerales in any event a minimum royalty equal to the applicable NSR royalty based on processing at a minimum monthly rate of 15,000 t. In the event of a force majeure, Avino shall pay the minimum royalty as follows:   ·   first quarter: payment of 100% of the minimum royalty   ·   second quarter: payment of 75% of the minimum royalty   ·   third quarter: payment of 50% of the minimum royalty       Avino Silver & Gold Mines Ltd. 4-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               ·   fourth quarter: payment of 25% of the minimum royalty   ·   in the case of force majeure still in place after one-year of payments, payment shall recommence at a rate of 100% of the minimum royalty and shall continue being made as per the quarterly schedule.   Minerales has also granted to Avino the exclusive right to purchase a 100% interest in the concession at any time during the term of the Agreement (or any renewal thereof), upon payment of US$8 million within 15 days of Avino's notice of election to acquire the Property. The purchase would be completed under a separate purchase agreement for the legal transfer of the concession. This agreement replaces all other previous agreements.   During the month of May of each year, Avino must file assessment work made on each concession for the immediately preceding calendar year. During the months of January and July of each year, Avino must pay in advance the mining taxes which are based on the surface of the concession and the number of years that have elapsed since it was issued.   Consistent with the mining regulations of Mexico, cadastral surveys have been carried out for all the listed mineral concessions as part of the field staking prior to recording (Slim 2005d). It is believed that all concessions are current and up to date. Mineral concessions in Mexico do not include surface rights. Avino has entered into agreements with communal land owners (Ejidos) of San José de Avino, for the temporary occupation and surface rights of the concessions.   A current title opinion dated April 4, 2012, has been prepared by Juan Manuel González Olguin of the Mexican law firm Bufete González Olguin SC. Based on the review of legal opinion, issued title certificates and the unhindered residence on the Property, Tetra Tech has verified that Avino owns the concessions through its Mexican subsidiary company, CMMA, and that there is no indication of any encumbrances at the site. Furthermore, the legal document prepared by Jesús Bermúdez Fernández, dated February 18, 2012, delineating the terms of the agreement on the La Platosa concession has been sourced for information.       Avino Silver & Gold Mines Ltd. 4-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  5.0   ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY   5.1   Topography, Elevation and Vegetation   The average elevation of the Property is approximately 2,200 masl. Local relief is estimated to be roughly 100 m ranging from the bottom bench of the tailings to the top of the open pit.   Vegetation is sparse and consists of shrubs and grasses typical of the high desert.   5.2   Accessibility and Local Resources   The Property is easily accessible by road and is an important part of the local community from which skilled workers are available. Access is provided by Highway 40, a four-lane highway leading from Durango, past the airport and on to the city of Torreon in Coahuila. Successive turn-offs for the Property are at Francisco I Madero, Ignacio Zaragoza, and San José de Avino (Slim 2005d). The Avino mineral concessions are covered by a network of dirt roads which provide easy transport access between all areas of interest on the Property and the mill at the main Avino Mine (Gunning 2009).   The nearest major city is Durango, with a population of approximately 465,000. Durango is a major mining center in Mexico where experienced labour and services can be obtained. The two towns nearest the mine are Pánuco de Coronado and San José de Avino, where the majority of the employees lived while working at the mine when it was in operation. Pánuco de Coronado has a population of approximately 12,000, and San José de Avino is a small center with a population of less than 1,000.           Avino Silver & Gold Mines Ltd. 5-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               5.3   Climate and length of Operating Season   The climate is temperate and semi-arid. In the region, the mean annual rainfall is 580.6 mm and the average annual temperature is 16.9°C. July and January average temperatures are 21.8°C and 11.3°C, respectively (www.worldclimate.com – Durango). The majority of the rainfall occurs between June and September. In the winter months, frost can occur.   Exploration, development, and mining activities may take place throughout the year without any significant seasonal impact.   5.4   Infrastructure   Infrastructure is disclosed in Section 18.0.                     Avino Silver & Gold Mines Ltd. 5-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  6.0   HISTORY   6.1   Avino Mine, 1555-1968   The Avino deposit was originally discovered around 1555 by the Spanish conquistador, Don Francisco de Ibarra. In 1562, Francisco de Ibarra, was appointed governor of the newly formed province of Nueva Vizcaya, in the Viceroyalty of Nueva España (New Spain) and, in 1563, founded the town of Durango. Francisco de Ibarra led several expeditions in search of silver deposits in the region and is recognized as having established Minas de Avino, present day Avino Mine; San Martín, Durango; and Pánuco, Sinaloa. Mining operations at the Avino Mine are said to have commenced in 1562-1563 and have been in production until the early 1900s. Operations at the Avino Mine continued up to the onset of the War of Independence (1810) when operations were interrupted but continued through to the early 1900s.   In 1880, the mines were taken over by Avino Mines Ltd., a company controlled by American and English interests. With aid of new industrial technology the Avino mine developed into a more efficient mining operation. By 1908, the Avino Mine was considered one of the largest open pit mines in the world and equipped with one of the largest lixification smelters (Gallegos 1960; Bannon 1970; VSE 1977; Slim 2005d).   During the outbreak of the Mexican Revolution in 1910, proceeds from the mine supplied funds to the revolutionary forces. Since much of the fighting occurred in and around Durango and the risk posed by brigands hiding in the mountains was high, the mine was abandoned in 1912.   Between 1912 and 1968, the mine was worked intermittently on a very small scale (Avino Annual Report 1980). There is no known historical record of production from the Avino Mine during this period.   The Avino Property was acquired under current ownership in 1968.   6.1.1   San Gonzalo Deposit   The history of the San Gonzalo deposit is not well known. Shallow workings from an old mine are present in the San Gonzalo vein, and consist of small underground workings which were originally accessed by a five-level vertical shaft. These workings were sampled by M. Evans in 1954. The workings are accessible through a raise that was driven in 2012 which is being used for ventilation. No attempts have been made to duplicate the results of the 1954 sampling. The limits of past workings have been taken from old maps but are assumed to be reasonably accurate (Gunning 2009).         Avino Silver & Gold Mines Ltd. 6-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               7.0   GEOLOGICAL SETTING AND MINERALIZATION   7.1   Regional Geology   The Property Is located within the Sierra de Gamon, on the east flank of the Sierra Madre Occidental. The area is a geological window into the Lower Volcanic series and consists mainly of volcanic flows, sills, and tuffaceous layers of andesite, rhyolite, and trachyte. Individual rock units typically vary from 300 to 800 m in thickness. Andesitic rocks outcrop over most of the region with other rock types occurring more sparsely to the north (Slim 2005d).   A large monzonitic intrusion is observed in the region in the form of dykes and small stocks, which appear to be linked to the onset of the Avino vein mineralization. Other post-mineralization dykes of intermediate to felsic composition outcrop in various areas and appear to cause minor structural displacements. A number of thin mafic sills are also found in various parts of the region and are related to recent volcanism.   Higher areas of the Sierra Madre Occidental surrounding the mine are composed of rhyolites and ignimbrites of the Upper Volcanic Series, with thicknesses approaching 1,500 m.   The Avino district has been affected by a number of tectonic events, some possibly related to the Laramide orogenic event. Other tectonic events in the region appear to be associated with later igneous events, both extrusive and intrusive, causing the formation of various systems of pre-mineralization faulting. These fault systems usually produced normal displacement of the pre-existing rocks, and generally strike northwest-southeast. Additional normal fault systems are also observed in the region, striking northeast-southwest and dipping towards the south.   Post-mineralization faulting has produced the present rough topography. One of the most significant regional features of the district is the Avino Fault which strikes northwest 20° southeast and dips southeast and appears to cut off the mineralization, juxtaposing the Upper and Lower Volcanic series.         Avino Silver & Gold Mines Ltd. 7-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               7.2   Property Geology and Mineralization   The Avino concession is located within a 12 km (north-south) by 8.5 km (east-west) caldera.  The Property contains numerous low-sulphidation epithermal veins, breccias, stockwork, and silicified zones that grade into a “near porphyry” environment, particularly in the Avino Mine area.  The caldera has been uplifted by regional north-trending block faulting (a graben structure), exposing a window of andesitic pyroclastic rocks of the lower volcanic sequence within the caldera.  The lower volcanic sequence is overlain by the upper volcanic sequence, consisting of rhyolite to trachyte flows and extensive ignimbrites and intruded by monzonite bodies.  The basal andesite-bearing conglomerate and underlying Paleozoic basement sedimentary rocks (consisting of shales, sandstones and conglomerates) have been identified on the Avino concession in the south-central portion of the caldera, covering the Guadalope, Santiago, San Jorge, the San Gonzalo Trend, Malinche, Porterito and Yolanda areas.  A northerly trending felsic dyke, possibly a feeder to the upper volcanic sequence, transects the Property and many of the veins.  The Aguila Mexicana low temperature vein system, with significant widths but overall low precious metal values, trends north-northwest at a similar orientation to the felsic dyke and with similar continuity across the Property.  The two structures may occur along deep crustal faults that controlled volcanism and mineralization, with the felsic dyke structure controlling the emplacement of the Avino, Nuestra Senora and El Fuerte-Potosina volcanic centres and the Aguila Mexicana structure controlling the Cerro San Jose and El Fuerte-Potosina volcanic centres (Paulter 2006).   Silver- and gold-bearing veins cross-cut the various lithologies and are generally oriented north northwest-south southeast and northwest-southeast (Figure 7.1 and Figure 7.2).  The rocks have been weathered and leached in the upper sections, as a result of contact with atmospheric waters; the oxide tailings material (Section 7.2.3) is primarily from this source, whereas the sulphide tailings are predominantly from material sourced at depth, below the leached zone.  In Mexico, these types of deposits can have large lateral extents, but can be limited in the vertical continuity of grades.   In the oxide zone, mineralization is primarily hosted by the minerals argentite, bromargyrite, chalcopyrite, chalcocite, galena, sphalerite, bornite, native silver, gold, and native copper.  Other minerals present in mineralized areas, but not hosting the metals of interest, include hematite, chlorite, quartz, barite, pyrite, arsenopyrite and pyrrhotite.  Malachite, anglesite and limonite are common in the quartz zones of the weathered parts of the oxide material.           Avino Silver & Gold Mines Ltd. 7-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 7.1 General Map of Property Geology   Source: Modified after Gunning (2009)         Avino Silver & Gold Mines Ltd. 7-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 7.2 Plan Map of San Gonzalo Veins and Other Nearby Veins   Source: Modified after Gunning (2009)           Avino Silver & Gold Mines Ltd. 7-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               7.2.1   Avino Vein   Geology and mineralization of the Avino vein are summarized from Slim (2005d).   The Avino vein is 1.6 km long and 60 m wide on the surface. To date, the deepest level accessed was at the 2,070 m level (330 m below surface).   The Avino vein is the most striking and important example of the epithermal mineralization of the district whose structures are normally weathered and leached in their upper section as a result of contact with atmospheric waters producing a band of oxide minerals and zones of supergene enrichment to a depth of about 70 m.   In the oxide portion of the Avino vein, the common minerals encountered include hematite, limonite, anglesite and copper carbonate in white or green, somewhat chloritized, quartz zones. The common primary and secondary minerals encountered are argentite, bromargyrite, chalcopyrite, chalcocite, galena sphalerite, bornite, native silver, free gold, and native copper. Other minerals present in mineralized areas include quartz, pyrite, chlorite, barite, arsenopyrite, pyrrhotite and specularite.   Higher silver values, which appear to be found at or near the surface, are reported to decrease overall with depth, except at vein intersections where higher values are more persistent. The same can be said for gold, although the higher values start just below the onset of silver mineralization, at or near the surface. In contrast, higher copper values coincide with vein intersections and may increase with depth.   The Avino vein has been followed longitudinally for more than 1,300 m and vertically for more than 600 m. It strikes north 66° east with an east-west splay, and dips to the south and southeast at 60° to 70°. Steeply dipping, acicular high grade zones within the vein and stock-work zones are frequently found in the upper part of the vein, as well as at its intersections with a number of lateral veins. An example of a higher grade area of mineralization encountered with major lateral vein intersecting the Avino was the El Hundido, which exceeded 40 m in thickness. In the lower areas of the vein and mine, mineralized cross-veins, branch-veins, and stockwork zones have been found in the footwall at San Luis and at El Hundido, and are assumed to persist with depth. The hanging wall of the Avino vein is andesite, while the footwall is a monzonite intrusive with andesite sections. A post-mineralization fault parallel with the vein occurs in the hanging wall at a distance of several metres in the area of San Luis, while in the central part of El Hundido, this fault is located at the contact with the vein over a distance of about 300 m, up to the area of Santa Elena and San Antonio. From that point, and proceeding toward the El Chirumbo Mine, this fault cuts the vein between the face at San Carlos to the face exposed at the underground ramp. The fault then enters the footwall where it remains until a point about 30 m east of the west face of the Chirumbo area, producing a downward displacement of the vein of between 50 to 100 m.   At Chirumbo, the fault largely replaces the vein due to strong leaching by post-mineralization circulating of water in the gouge. On the east face at Chirumbo, the fault again enters the hanging wall; in this zone the vein is composed of branches and stockwork and to the east of this point the fault crosses the vein numerous times.         Avino Silver & Gold Mines Ltd. 7-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The deposit is epithermal and made up of veins and dependent stockwork structures, mainly in the hanging wall and often associated with vein intersections. Four vein systems have been described which, in decreasing order of importance, are:   ·   system striking east-west, dipping south at 60° to 70°, including the Avino Vein and its possible extension in the Cerro de San Jose   ·   system striking north 60° to 70° west, dipping 60° to 80° southwest, comprising the following important veins: El Trompo, San Juventino, San Jorge, Platosa, Los Reyes, Potosina, El Fuerte, and Conejo   ·   system striking north 20° to 30° west, dipping between 60° to 80° to either the southwest or northeast, comprising the following significant veins: San Gonzalo, Aguila Mexicana, and La Calcita, as well as the Stockwork La Potosina, and the Stockwork El Fuerte   ·   systems striking north 60° to 80° east, dipping 60° to 80° southeast, comprising the following veins: Santiago, Retana, Nuestra Senora, and San Pedro and San Pablo.   Alteration has been reported in three main types:   ·   Propylitic alteration is most common in andesite, giving the andesite a greenish tint.   ·   Argillaceous alteration appears mainly in the upper parts of the veins and manifests itself as a whitening of the country rock due to alunite and montmorillonite clays.   ·   Silicification, chloritization, and pyritization alteration is observed in the hanging wall and footwall, and is more prominent closer to the vein.   7.2.2   San Gonzalo Vein   The San Gonzalo vein is located approximately 1.4 km northeast of the eastern modelled extent of the Avino vein. The San Gonzalo vein system constitutes a strongly developed vein system over 25 m wide, trending 300° to 325°/80° northeast to 77° south. It is characterized by banded textures and open-space filling. The main vein has an average width of 2 m, but the silica-pyrite or iron oxide-sericite alteration with additional stock working extends across 300 m, south of the main San Gonzalo vein to the Los Angeles vein. The San Gonzalo vein appears to be related to the Los Angeles vein and the two are separated by a suspect offset fault (Figure 7.1 and Figure 7.2). The San Gonzalo is a typical narrow vein precious metal deposit with some erratic values and extends approximately 2 km to the northwest to the Santa Ana-Malinche area (Gunning 2009).       Avino Silver & Gold Mines Ltd. 7-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The Cerro San Jose-La Estella-San Gonzalo Cerro San Jose represents a distinct hydrothermal centre with similar characteristics to the Avino system which include the following (Paulter 2006):   ·   occur on a topographic high   ·   strong to intense silicification and brecciation   ·   easterly trending stockwork system similar to the trend of the Avino vein   ·   similar temperatures of formation to Avino   ·   presence of an intersecting northwesterly trending vein system (la Estella at San Jose and San Juventino at Avino)   ·   emplacement along a northerly trending, deep crustal fault zone (defined by the Aguila Mexicana Vein at Cerro San Jose and the felsic dyke at Avino).   7.2.3   Oxide and Sulphide Tailings   The Avino tailings dam is located approximately 500 m west-southwest of the main shaft to the old underground workings and 2.5 km southwest of the San Gonzalo vein. An orthogonal view of the tailings dam is shown in Figure 7.3.   Within the tailings dam, there are three distinct benches:   ·   Lower oxide bench (referred to as Phase 1.1 in Section 14.3).   ·   Upper oxide bench (referred to as Phase 1.2 in Section 14.3).   ·   Upper bench or sulphide bench (referred to as Phase 2 in Sections 14.3 and 14.4).   The oxide tailings are primarily derived from weathered and oxidized rocks close to the surface on the Property, whereas the sulphide tailings are predominantly derived from material sourced at depth from the underground workings, below the weathered/leached zone. At this time, it is not clear what the real nature of the chemical difference between the two is, but they are distinctly different in colour.   The oxide tailings (both the upper and lower benches) have been analyzed in greater details than the sulphide tailings, and are included in the current mineral resource for the oxide tailings (Section 14.3). The sulphide tailings, in the absence of any definitive sampling data penetrating the depth of the pile, are an exploration target at best (Section 14.4). Figure 7.4 shows a photograph of the tailings dam illustrating the clear division between the three benches.         Avino Silver & Gold Mines Ltd. 7-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 7.3 Orthogonal View of Tailings Pile (Looking Roughly to the North)     Note: brown = Phase 2 (sulphide), blue = Phase 1.2 (oxide, upper bench), yellow = Phase 1.1 (oxide, lower bench)           Avino Silver & Gold Mines Ltd. 7-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 7.4 Photograph of the Tailings Deposit (Viewed from the Northeast)           Avino Silver & Gold Mines Ltd. 7-9 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  8.0   DEPOSIT TYPES   Regionally, the Property is situated within a 12 km by 8.5 km caldera that hosts numerous low- to intermediate-sulphidation silver-gold epithermal veins, breccias, stockwork and silicified zones, grading into a “near porphyry” environment in the Avino Mine area.   The historic mining on the Property was on the Avino vein, a silver-gold-copper rich epithermal vein. The San Gonzalo vein, however, has a much lower copper content than the Avino vein and is more equivalent to other silver±lead-zinc deposits of the Sierra Madres.   Low-sulphidation vein systems are commonly characterized by low concentrations of sulphide minerals, alteration mineralogy dominated by quartz-adularia-sericite, and a lack of extensive wall-rock alteration. Conversely, high-sulphidation vein systems are commonly characterized by sulphur saturation leading to the presence of native sulphur and sulphide minerals, quartz-alunite alteration, and extensive wall-rock alteration. The Mexican silver deposits are usually within the intermediate sulphidation range, rather than either of the end member classifications.   In Mexico, and particularly within the Mexican Silver Belt, these types of deposits can have large lateral extents, but may be limited vertically. There are many silver-gold mines in Mexico, some of which form large mining districts, and others which exploit multiple veins over limited vertical horizons which are sometimes only 100 m in depth (Gunning 2009).   On the Property, the oxide tailings have been predominantly sourced from earlier open pit operations and the sulphide tailings have been predominantly sourced from later underground workings.           Avino Silver & Gold Mines Ltd. 8-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  9.0   EXPLORATION   9.1   Early Exploration (Prior to Mine Closure), 1968 to 2001   Exploration on the Property has been ongoing since before production commenced in 1976, and the majority of the work focused on the main Avino vein and surrounding area. The following is a summary of significant exploration work conducted either by Avino, or on behalf of Avino, until the mine closed in 2001.   Pre-production exploration was carried out by CMMA and others, and covered 2,500 m of drifting and cross-cuts, as well as 8,000 m of surface and underground diamond drilling. Extensive rehabilitation was completed involving Selco, including connecting three of the old — possibly pre-1900 — underground mine workings.   In 1970, a contract was signed with Selco, who spent more than US$1 million in exploration and feasibility studies before returning the Property back to CMMA in 1972, reportedly because of low metal prices. The majority of the documentation examined covered feasibility work and was related to investigations of old underground workings that were likely developed in the late 1800s. A contract was signed in October 1973 with S.G.L. Ltd. and Sheridan Geophysics Ltd., under which a new 500 t/d plant was completed in May 1974.   Since 1992 exploration in/for the mine has been limited to traditional underground mine development with associated sampling and planning for production feed. In the late 1990s it appears that development was not kept up as company monthly reports showed decreasing historical reserve allocations for production and mill feed.   The only recorded property exploration, apart from limited prospecting, is documented in the 1993 report by Servicios Administratos Luismin, SA de CV, the engineering branch of Cía Minera de San Luis Exploration. The study reported on detailed analysis and sampling of the then known showings on the Property with the emphasis on the Avino vein and Potosina/El Fuerte area. The extensive underground sampling programme carried out by Luismin provided later direction for underground mining. The report made recommendations for follow-up for drilling and underground development for the main Avino vein, as well as trenching and drilling recommendations for the Potosina/El Fuerte area. It is believed that these recommendations were never implemented for the prospective areas. Additionally, the report included a property-scale geological mapping and lithogeochemical sampling programme which was contoured and coloured for gold, silver, copper, lead, zinc, arsenic, antimony and mercury.         Avino Silver & Gold Mines Ltd. 9-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Other notable observations from the study include the following;   ·   All mineralization, with the exception of the Nuestra Senora and Potosina/El Fuerte area radiate outwards in a west to north-west direction from the Cerro San Jose. The Cerro San Jose is a silicified and partly hornfelsed body of volcanic rock probably overlying an intrusive stock, which could have been the source of most mineralization on the Property.   ·   Mineralization in all radiating structures is described as being strongest 2 to 3 km from Cerro San Jose. This resembles many of the gold deposits in Nevada where the source of mineralization is a near surface acid-intrusive but with mineralized bodies lying 1 to 5 km away along high angle faults.   ·   The two strongest and widest structures appear to be the Avino and Aguila Mexicana veins.   ·   The Avino vein has three main mineralized zones—San Luis, Elena Tolosa (La Gloria/Hundido) and Chirumbo areas—which rake to the west and are open at depth. While silver values decrease with depth, gold appears to increase.   ·   The existence of other mineralization cutting the Cerro San Jose mineralization in the Nuestra Senora and Potosina/El Fuerta areas could offer the potential for bulk mineable stockwork zones.   Assay values from outcrop sampling of surface-mapped veins towards the San Jose hill ranged from lows of 2 g/t silver and trace gold over a true thicknesses from 0.1 to 2.3 m up to a high of 755 g/t silver with a corresponding 1.5 g/t gold over 0.45 m.   No systematic sampling, trenching or drilling on either the outcrops or the veins is known to have occurred during the program undertaken in 1993.   9.2   Recent Exploration (Post Mine Closure), 2001 to Present   Since mine closure in 2001, Avino has intermittently conducted exploration work on the Property, with the intention of expanding and better defining known areas of mineralization. Historic near-to-surface mining activities are being relied upon for guidance, and modern techniques are being employed to integrate, manage and interpret results. Included in the list of exploration activities is an induced polarization (IP) geophysical survey, 1,500 soil samples, satellite imagery, mapping, trenching, tailings investigations, bulk sampling, and underground channel sampling.   9.2.1   Tailings Investigations (Oxides), 2003 and 2004   Two specific mineralogical assessments were conducted in 2003 and 2004 on samples from the tailings on the Property. The purpose of the program was to provide data for independent investigation of the 1990 drilling results on the oxide tailings (discussed in Section 10.0) in terms of verifying assay grades and volumes, as well to examine the metallurgical characteristics of the material. The results and implications of these findings are discussed further in Section 13.0. The 2004 sample composites assays are given in Table 9.1 and sample locations are illustrated in Figure 9.1, relative to the drill fences of the 1990/1991 drillholes.       Avino Silver & Gold Mines Ltd. 9-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Table 9.1 2004 Sample Composites Assays   Area Composite No. Ag (ppm) Multi/ICP Au (g/t) FA/AA Lower Bench 1 82.03 0.34 3 99.80 0.33 5 134.08 0.53 6 122.18 0.28 7 103.88 0.31 8 96.75 0.36 9 105.28 0.33 10 87.73 0.26 Middle Bench 1 83.40 0.48 2 105.33 0.59 3 78.83 0.42 4 103.05 0.59 5 72.55 0.40 6 77.70 0.61   Note:  ICP – inductively coupled plasma   FA – fire assay   AA – atomic absorption     Figure 9.1 Plan View Location Map of Samples from Oxide Tailings   Source: Slim (2005d)   The following information regarding the 2004 sampling is summarized from Slim (2005d).       Avino Silver & Gold Mines Ltd. 9-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The 2004 tailings field-work was under the direction of MineStart and excavation of the sample pits was under contract to Desarrollos Rod Construcciones of Durango. Local casual labour were hired as needed.   Given the hydraulic deposition of the tailings, four important factors required examination: anomaly characteristics of the samples and total population, assay comparison by fence, examination of downstream decrease in assays and factors arising from the downstream construction.   Comparison of the 2004 assays with those from 1990 show consistency in assay values and provide confidence in the 1990 sampling and assaying program.   The preliminary investigations in 2003 showed the need for a sampling of the oxide tailings to validate the assay results of the 1990 drilling and to carry out metallurgical characterization, the latter requiring large samples. In deciding on test pitting, the costs, timing and sample size were important. Backhoes were available locally and could be mobilized within a few days whereas drills would have to be brought in from up to 500 km away, for minimum contracts in excess of the project needs and with limited immediate availability. Backhoe sampling was chosen.   The sampling exercise carried out in 2004, using shallow (4 m deep) backhoe trenches and hand-dug pits, represented a local corroboration of the previous sampling but cannot be considered to constitute a representative random sampling of the oxide tailings for the following reasons:   ·   The positions of the sampling pits and trenches were sketched on previous maps but were not surveyed, unlike the drillhole collars from the 1990 campaign.   ·   Full sections through the tailings were not obtained and access was limited to the eastern portion of the oxide tailings; thus the sampling is vertically and laterally biased to represent only the topmost 4 m of the easternmost oxide tailings.   The trench sampling material (Z-series) from the 1993 campaign is also likely to be non-representative as samples were taken in the surficial zone in the vicinity of the middle bench wall of the tailings heap, where cycloning of the material to aid the construction of the wall will have produced significantly coarser material than in the rest of the tailings deposit. Furthermore, these trench samplings also do not cover the full thickness of the upper (second) phase of the oxide tailings, so they cannot be considered fully representative of material, even on a local scale.   Consequently, it was decided to use only the drillhole assay data (excluding the Z-series trenches) from the 1990 campaign for the oxide tailings resource estimate (Section 14.2), as it represents unbiased vertical profiles through the entire oxide tailings and has positional control.       Avino Silver & Gold Mines Ltd. 9-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               9.2.2   Tailings Sampling (Sulphides), 2005   Some sampling was carried out in 2005 by means of hand-dug pits on the “upper bench” of sulphide tailings. The silver and gold values generally ranged from 40.0 to 100.0 g/t and 0.3 to 0.6 g/t, respectively. While these values give a general idea of the potential grade of the sulphide tailings, they are not considered to be representative of the sulphide tailings, even at a local scale.   9.2.3   Bulk Sample Program of San Gonzalo Vein, 2011   Avino completed a 10,000 t bulk sample program at the San Gonzalo deposit following a comprehensive review of the data and discussions with Tetra Tech. The bulk sample feed grade was 261 g/t silver and 0.9 g/t gold. Silver and gold recoveries were stated to be 76% and 59%, respectively, and 232 dry tonnes of flotation concentrate were produced. Results are summarized in Table 9.2.     Table 9.2 San Gonzalo Bulk Sample     Weight (t) Assay (g/t) Contents (kg) Contents (oz) Recovery (%) Au Ag Au Ag Au Ag Au Ag Feed 10,519* 0.9 261 9.35 2,746.75 300.9 88,311.70 100 100 Concentrate 232 23.8* 8,998* 5.52 2,087.53 177.5 67,116.90 59 76 Tail 10,287 0.4 64 3.83 659.22 123.4 21,194.80 41 24     Source: Avino 2011   Note: *These figures have been reconciled to the weighed feed tonnage and the final concentrate assays.  They also have been rounded for clarity.   9.2.4   Underground Channel Sampling of San Gonzalo and Angelica Veins, 2010-Present   Underground channel sampling began in 2010 and has continued to the present. Channel sampling is currently being conducted on the San Gonzalo and Angelica veins, coinciding with drift development. Results are current to March 19, 2013 and include results from levels 1 through 4 of the San Gonzalo mine, as well as ramps and off-shoots into the Angelica vein.   Table 9.3 summarizes the number and lengths of channels by level. Table 9.4 summarizes the assay results by level. Figure 9.2 shows the location of all channels, colour coded by grade, included in the current resource estimate (Section 14.2), within the San Gonzalo vein (green solid) and Angelica vein (purple solid) wireframes.       Avino Silver & Gold Mines Ltd. 9-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Table 9.3 Summary of San Gonzalo and Angelica Channel Samples, By Level     Number of Channels Strike Length of Vein Covered (m) Total Channel Length (m)* Average Channel Length (m) Max Channel Length (m) Level 1 120 225 82.01 0.68 1.51 Level 2 223 285 585.54 2.63 10.77 Level 2 Ramp 43 75 58.48 1.36 1.75 Level 3 217 280 618.99 2.85 6.85 Level 4 265 400 673.61 2.54 5.60 Total 868 1,265 2,018.66 - -   Note:            *Channels are approximately perpendicular to the strike of the veins.     Table 9.4 Summary of San Gonzalo and Angelica Channel Assay Results, By Level       Ag Au Cu Pb Zn Level 1 Number of Assays 433 433 433 433 433 Maximum Grade (ppm) 3,170.0 10.86 3,263 14,500 13,400 Mean Grade (ppm) 171.2 0.44 207 1,348 1,088 Level 2 Number of Assays 861 861 861 861 861 Maximum Grade (ppm) 5,522.9 9.88 7,160 117,200 106,000 Mean Grade (ppm) 170.0 0.57 426 3,247 5,255 Level 2 Ramp Number of Assays 115 115 115 115 115 Maximum Grade (ppm) 5,962.0 13.95 6,141 22,900 12,300 Mean Grade (ppm) 285.9 1.09 453 3,738 1,176 Level 3 Number of Assays 726 726 726 726 726 Maximum Grade (ppm) 5,348.4 9.47 41,000 89,000 138,600 Mean Grade (ppm) 141.9 0.49 595 2,265 4,993 Level 4 Number of Assays 1,025 1,025 1,025 1,025 1,025 Maximum Grade (ppm) 14,768.4 185.20 12,300 91,500 154,900 Mean Grade (ppm) 395.8 1.90 542 4,276 7,997 All Number of Assays 3,160 3,160 3,160 3,160 3,160 Maximum Grade (ppm) 14,768.4 185.20 41,000 117,200 154,900 Mean Grade (ppm) 238.3 0.97 476 3,092 5,355       Avino Silver & Gold Mines Ltd. 9-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 9.2 Channel Samples, Colour Coded by Grade, Within the San Gonzalo and Angelica Vein Wireframes     Note: Looking south southwest.   Green solid = San Gonzalo vein; purple solid = Angelica vein.  Assay colours indicated by cutoffs in legend.  Easting and elevation values in metres.           Avino Silver & Gold Mines Ltd. 9-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               10.0   DRILLING   Drilling activities performed by Avino since acquisition of the Property are summarized below. Drillhole assay results have been previously reported (except ET-12-07 to ET-12-09; Appendix A) by Gunning (2009) and Tetra Tech (2012) and are not disclosed here.   10.1   Early Drilling (Prior to Mine Closure), 1968 to 2001   10.1.1   Avino Vein   Between 1968 and 2001, at least 25 diamond drillholes, ranging in length from 132.20 to 575.20 m, are reported to have been drilled from surface into the Avino vein. Included in this total are 10 holes that were drilled by Selco in 1970 when they were re-habilitating some of the old underground workings to provide access for sampling (Slim 2005d). No further information on these drillholes was available to Tetra Tech and they are not included in the resource estimate for the Avino vein (Section 14.1).   10.1.2   Oxide Tailings, 1990 to 1991   Between November 10 and December 5, 1990 and March 8 and May 30, 1991, Avino completed six trenches and 28 vertical drillholes in the tailings (Table 10.1) along 7 fences at a spacing of roughly 50 m by 50 m (Figure 10.1) (Benitez Sanchez 1991). Drilling was completed transversely to the drainage pattern of the tailings. Cut at 1 m vertical increments, 461 samples were assayed for silver and gold at the mine assay lab and occasional moisture contents were reported. Assay results from these drillholes have been previously reported (Tetra Tech 2012). Although the Z-series trenches are included in Table 10.1 and Figure 10.1, they are not included in the oxide tailings resource estimate (Section 14.3) as they are not considered representative of the tailings at a local scale (see Section 9.2.1).     Table 10.1 Summary of 1990/1991 Holes   Hole ID Easting (m) Northing (m) Elevation (m) Assay Length (m) Measured Length (m) A1 570205 2712340 2,204 5.0 5.00 A2 570184 2712306 2,203 7.0 7.25 A3 570192 2712267 2,203 8.0 8.00 A4 570167 2712236 2,203 9.0 9.00 A5 570175 2712197 2,203 15.0 16.25 A6 570152 2712167 2,202 18.0 18.00 table continues…     Avino Silver & Gold Mines Ltd. 10-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Hole ID Easting (m) Northing (m) Elevation (m) Assay Length (m) Measured Length (m) A7 570159 2712128 2,201 16.0 16.00 A8 570149 2712094 2,200 8.0 8.00 Z1* 570197 2712411 2,218 9.0 9.50 Z2* 570176 2712365 2,218 16.0 16.00 Z3* 570165 2712317 2,217 13.0 13.25 Z4* 570153 2712269 2,217 13.0 13.50 Z5* 570142 2712221 2,216 13.0 13.00 Z6* 570135 2712175 2,215 14.0 14.00 B1 570132 2712365 2,217 10.0 10.00 B2 570114 2712318 2,217 19.0 19.25 B3 570101 2712268 2,216 26.0 26.75 B4 570079 2712207 2,216 23.5 23.50 B5 570082 2712140 2,214 18.0 18.00 C1 570085 2712383 2,218 8.5 8.75 C3 570077 2712354 2,217 15.0 15.00 C4 570049 2712250 2,216 24.0 24.00 C5 570028 2712164 2,216 14.0 14.00 C6 570017 2712117 2,216 10.0 10.00 D1 570029 2712373 2,218 13.0 13.00 D2 570018 2712329 2,217 19.0 19.25 D3 570003 2712273 2,218 19.5 19.50 D4 569961 2712167 2,216 6.0 6.00 E1 569977 2712369 2,217 13.0 13.25 E2 569960 2712311 2,216 18.5 18.50 E3 569952 2712267 2,216 12.0 12.00 F1 569936 2712401 2,216 18.5 18.50 F2 569926 2712364 2,216 16.0 16.00 F3 569915 2712324 2,216 15.0 15.00   Note:            *Trenches completed on the A1-A1’ section line, Figure 10.1.       Avino Silver & Gold Mines Ltd. 10-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico             Figure 10.1 Plan View of 1990 Hole Locations     Source: Slim (2005d) Note: Drillholes mislabelled along C-C’ line and C2-C5 on this map reflect C3-C6 in Table 10.1.       Avino Silver & Gold Mines Ltd. 10-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               10.2   Recent Drilling (Post Mine Closure), 2001 to Present   A total of 98 drillholes have been completed on the Avino and San Gonzalo veins, totalling 26,147.32 m. Additional exploration holes have been drilled elsewhere on the Property, but those drilling results are not considered material. Most holes were surveyed downhole using a Tropari single-shot magnetic instrument. Of those holes for which downhole surveys were completed, the majority contain three or fewer measurements, typically at the collar and near the end of hole, and sometimes part-way down the hole. Many holes were not surveyed to within 10 m of the end of the hole.   10.2.1   Avino Vein (Including ET Zone) and Nearby Veins   Since 2001, Avino has drilled 34 holes below Level 12, where mining ceased, for a total of 11,523.2 m of drilling. Drilling has targeted the ET Zone in particular. There were 5 holes completed in 2006 (2,166.85 m), 12 holes in 2007 (3,906.5 m), 8 holes in 2008 (2,186.7), and 9 holes in 2012 (3,263.15 m). No drilling has been completed on the Avino Vein since 2012. Collar coordinates for all drillholes included in the Avino vein resource estimate (Section 14.1) are provided in Table 10.2. Assay results from all drillholes up to and including ET-12-06 have been previously reported (Tetra Tech 2012). Assay results from drillholes ET-12-07 to ET-12-09 are provided in Appendix A. A location map of Avino vein drillholes is provided in Figure 10.2.   Tecmin Servicios, S.A. de C.V., was contracted for the 2007 and 2008 drilling programs at the ET Zone of the Avino vein. Since the Avino deposit strikes approximately east-west and dips at 60 to 70° to the south, holes are generally oriented from south to north at various bearings and dip angles in order to intersect the structure at a target depth. Holes were drilled using Avino's Longyear 44 core rig at thin wall NQ diameter.     Table 10.2 Drillholes Completed from 2006 to 2012 on the Avino Vein   Hole ID Azimuth (°) Dip (°) Depth (m) Easting (m) Northing (m) Elevation (m) CH-06-03 338 -50 453.75 571013 2712796 2,208 ET-06-01 337 -55 431.20 570271 2712262 2,187 ET-06-02 340 -50 416.70 570337 2712309 2,190 ET-06-03 339 -48 421.15 570457 2712361 2,194 ET-06-04 340 -50 444.05 570501 2712468 2,215 ET-07-01 001 -69 298.60 570176 2712453 2,222 ET-07-02 358 -75 311.90 570206 2712467 2,224 ET-07-03 336 -71 349.50 570344 2712498 2,226 ET-07-04 331 -56 318.70 570440 2712511 2,226 ET-07-05 333 -65.5 351.50 570440 2712510 2,226 ET-07-06 336 -55 320.05 570520 2712524 2,225 ET-07-07 330 -56.5 304.85 570585 2712569 2,230 ET-07-08 346 -69 399.70 570584 2712569 2,231 table continues…       Avino Silver & Gold Mines Ltd. 10-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Hole ID Azimuth (°) Dip (°) Depth (m) Easting (m) Northing (m) Elevation (m) ET-07-09 336 -62 328.55 570629 2712604 2,235 ET-07-10 338 -62 308.65 570645 2712650 2,245 ET-07-11 337 -69 329.80 570682 2712654 2,241 ET-07-12 337 -48 284.70 570735 2712654 2,234 ET-08-01 329 -45 221.45 570807 2712712 2,236 ET-08-02 330 -54 234.50 570341 2712549 2,244 ET-08-03 333 -64 265.10 570341 2712549 2,244 ET-08-04 337 -65 358.65 570579 2712568 2,231 ET-08-05 338 -66 371.10 570658 2712629 2,240 ET-08-06 338 -59 292.45 570676 2712654 2,243 ET-08-07 343 -70 174.40 570747 2712656 2,234 ET-08-08 344 -45 269.05 570906 2712766 2,227 ET-12-01 332 -62 288.15 570354 2712501 2,226 ET-12-02 335 -53 360.90 570507 2712472 2,214 ET-12-03 335 -61 367.75 570507 2712471 2,214 ET-12-04 335 -64 373.75 570544 2712497 2,216 ET-12-05 336 -62 369.20 570566 2712508 2,218 ET-12-06 336 -70 396.10 570589 2712523 2,219 ET-12-07 336 -64 327.60 570678 2712594 2,227 ET-12-08 336 -72 384.35 570678 2712594 2,227 ET-12-09 336 -72 395.35 570646 2712555 2,222   Note: Datum: NAD 27   10.2.2   San Gonzalo and Nearby Veins   At San Gonzalo, Avino drilled 40 holes in 2007 (9,222.9 m), 6 in 2008 (1,782.65 m), and 18 in 2011 (3,618.57 m), for a total of 64 drillholes and 14,624.12 m of drilling. No drilling has been completed on the San Gonzalo vein since 2011. All holes were of thin wall NQ size core diameter and were completed using Avino’s Longyear 44 core rig. Additional holes also explored the nearby Guadalupe, San Juventino, San Lucerno, Mercedes, San Jorge, and Yolanda veins.   According to Gunning (2009), the collars for 2007 and 2008 drillholes were marked by concrete monuments and the collars have been surveyed. A check of the coordinates with a handheld global positioning system (GPS) revealed a possible 10 m constant error which may simply mean that all of the mine coordinates are not precisely Universal Transverse Mercator (UTM). However, this could also indicate the existence of a small surveying error on the Property.   In 2011, a total of 69 holes totalling 9,943 m were drilled principally in the following locations: San Gonzalo (18 holes), La Potosina (9 holes), Guadalupe (23 holes), San Juventino (3 holes), San Lucero (5 holes), Mercedes (1 hole), San Jorge (3 holes), Yolanda (2 holes). With the exception of the San Gonzalo vein, all of these locations are considered targets for further exploration.       Avino Silver & Gold Mines Ltd. 10-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Collar coordinates for all drillholes included in the San Gonzalo resource estimate (Section 14.2) are provided in Table 10.3. Assay results from these drillholes have been previously reported (Gunning 2009; Tetra Tech 2012). A location map of drillholes on the San Gonzalo vein is provided in Figure 10.3.     Table 10.3 Drillholes Completed from 2007 to 2011 on the San Gonzalo Vein   Hole ID Azimuth (°) Dip (°) Depth (m) Easting (m) Northing (m) Elevation (m) SG-07-01 050 -60 386.80 571713 2713982 2297 SG-07-02 038 -48 323.70 571714 2713983 2297 SG-07-03 074 -43 315.00 571714 2713981 2297 SG-07-04 053 -49 312.70 571651 2714059 2276 SG-07-05 059 -69 137.00 571650 2714058 2276 SG-07-06 055 -58 387.20 571650 2714058 2276 SG-07-07 044 -44 281.55 571578 2714117 2281 SG-07-08 043 -55 383.70 571578 2714116 2281 SG-07-09 038 -45 106.60 571677 2714137 2277 SG-07-10 053 -58 162.90 571677 2714136 2277 SG-07-11 015 -49 158.60 571676 2714135 2277 SG-07-12 089 -53 175.45 571678 2714133 2277 SG-07-13 055 -49 160.55 571770 2713993 2315 SG-07-14 054 -53 295.20 571716 2713971 2297 SG-07-15 218 -49 96.20 571689 2714268 2296 SG-07-16 219 -54 99.85 571552 2714354 2285 SG-07-17 252 -55 69.80 571428 2714421 2268 SG-07-18 218 -65 238.05 571765 2714318 2293 SG-07-19 257 -66 344.90 571763 2714320 2293 SG-07-20 215 -67 247.40 571650 2714345 2281 SG-07-21 038 -53 294.00 571713 2713979 2297 SG-07-22 218 -54 232.50 572007 2714128 2343 SG-07-23 216 -70 303.45 572007 2714128 2343 SG-07-24 217 -53 124.40 571969 2714077 2351 SG-07-25 216 -65 190.45 571969 2714078 2351 SG-07-26 216 -69 395.40 572033 2714172 2337 SG-07-27 218 -55 237.75 572078 2714077 2345 SG-07-28 218 -74 319.50 572078 2714078 2345 SG-07-29 221 -43 103.55 572033 2714010 2356 SG-07-30 221 -64 158.40 572034 2714010 2356 SG-07-31 218 -43 71.85 571954 2714056 2352 SG-07-32 223 -70 407.95 572122 2714135 2330 SG-07-33 211 -43 130.60 572069 2714009 2353 SG-07-34 210 -58 183.05 572069 2714010 2353 SG-07-35 211 -68 272.15 572069 2714010 2353 SG-07-36 215 -41 102.15 572050 2713959 2358 table continues…       Avino Silver & Gold Mines Ltd. 10-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Hole ID Azimuth (°) Dip (°) Depth (m) Easting (m) Northing (m) Elevation (m) SG-07-37 219 -53 154.35 572115 2713975 2351 SG-07-38 221 -66.5 214.15 572115 2713975 2351 SG-07-39 220 -73 128.05 572120 2713898 2353 SG-07-40 220 -74 516.05 571899 2714211 2321 SG-08-01 035 -51 210.05 571776 2713974 2314 SG-08-02 215 -57 269.05 571964 2714167 2335 SG-08-03 215 -70 331.95 571964 2714168 2335 SG-08-04 215 -63 269.95 572029 2714121 2343 SG-08-05 035 -55 475.25 571701 2713893 2285 SG-08-06 048 -64 226.40 571679 2714137 2277 SG-11-01 215 -59 100.95 571981 2714009 2357 SG-11-02 215 -63 141.15 571995 2714030 2355 SG-11-03 215 -44 98.45 572020 2713994 2357 SG-11-04 212 -54 176.50 571969 2714079 2351 SG-11-05 040 -43 151.40 571892 2713832 2317 SG-11-06 189 -44 122.32 571732 2714379 2274 SG-11-07 030 -68 74.00 572030 2713946 2358 SG-11-08 037 -67 125.35 572043 2713888 2360 SG-11-09 181 -48 71.10 571585 2714366 2278 SG-11-10 201 -61 78.40 571240 2714538 2235 SG-11-11 201 -61 91.95 571329 2714397 2274 SG-11-12 218 -71 312.15 571811 2714288 2305 SG-11-13 218 -71 345.40 571847 2714258 2310 SG-11-14 209 -61 330.50 571939 2714214 2326 SG-11-15 211 -68 363.45 572030 2714172 2337 SG-11-16 209 -62 334.25 572092 2714173 2331 SG-11-17 210 -70 383.10 571836 2714336 2306 SG-11-18 218 -71 318.15 571765 2714321 2293   Note:            Datum: NAD 27   10.2.3   Specific Gravity Results   Bulk density samples were analyzed from all 2006-2012 drilling programs on both the Avino and San Gonzalo veins. Analytical procedures are discussed in Section 11.8 and a review of the data and Qualified Person (QP) opinion is discussed in Section 12.2 and 12.5.1, respectively. Table 10.4 summarizes the results of these specific gravity measurements.         Avino Silver & Gold Mines Ltd. 10-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Table 10.4 Summary of Specific Gravity Results     Number of Samples Average SG – All Rock Types Average SG - Veins Average SG – Country Rock All Samples 262 2.64 2.67 2.61 San Gonzalo Vein 152 2.62 2.67 2.59 Avino Vein 110 2.66 2.68 2.64   Note: SG = specific gravity         Avino Silver & Gold Mines Ltd. 10-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 10.2 Plan View Map Illustrating the Location of Drillholes on the Avino Vein           Avino Silver & Gold Mines Ltd. 10-9 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 10.3 Plan View Map Illustrating the Location of Drillholes on the San Gonzalo Vein             Avino Silver & Gold Mines Ltd. 10-10 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY   11.1 Drilling and Trenching of Oxide Tailings, 1990 to 1991   The oxide tailings were sampled prior to institution of NI 43-101 and associated QA/QC requirements, and as such no QA/QC measures were utilized during the 1990-1991 program. As a result, the resource estimate for the oxide tailings in Section 14.3 is all classified as Inferred. Twenty-eight holes were drilled and six trenches completed, from which a total of 461 samples were collecting for assaying. The analyses were completed in the on-site laboratory, which is described in Section 11.7 and was visited during the site visit, as summarized in Section 12.4.   Avino’s current on-site, non-certified, laboratory facility consists of sample preparation, crushing and pulverizing, a fire assay and an AA section. However, the procedures and facilities used in 1990 to 1991 may be different from the current sample analysis procedures. As a result of the uncertainty associated with these analyses, two separate verification exercises have been completed. Slim (2005d) collected numerous samples from across the oxide tailings, and the results of this verification are discussed in Section 11.2. In 2012, Mr. O’Brien, QP, of Tetra Tech collected numerous verification samples from the oxide tailings, and these results are discussed in Section 12.3.2.   11.2   Tailings Investigations (Test Pits in Oxide Tailings), 2004   The sampling method and approach adopted by Slim (2005d) on the test pits in the oxide tailings incorporated the following steps:   1.   A backhoe was used to excavate sample pits to a depth of 4 m.  Hand samples were taken at 1 m vertical increments from the sidewalls of each pit.   2.   The sample mass collected from each sampling point generally amounted to between 2 and 5 kg.   3.   The sampling program was ostensibly based on the 1990 CMMA sampling program.  Fourteen sample pits were excavated to a depth of 4 m and generated 86 samples.       Avino Silver & Gold Mines Ltd. 11-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The samples were air-freighted to PRA in Vancouver, British Columbia, from Durango, Mexico. The samples had been initially bagged and sealed with identification tags attached. The samples were allotted new identification numbers, and were subsequently un-bagged and dried. The dry samples were individually mixed and blended, and then split into four one-quarter fractions as directed by Slim (2005d). One fraction was used to determine the head grade assay, while another quarter was used to create composite samples used for the subsequent metallurgical test work program. Instructions were followed with the compositing of the samples, and the test work program. Excess sample was archived for future test work or analyses. For analytical techniques employed during the test work program, the standard fire assay (with AA spectrophotometric finish) was initially used for the silver analyses. However, this method is not very accurate for silver values of less than 100 g/t. Subsequently, the inductively coupled plasma spectroscopy method (ICP-MS), which uses multi-acid digestion, was used for silver. This method also resulted in analyses being obtained for other elements of interest (e.g. copper, zinc, lead, etc.). The standard fire assay method was used for gold analyses. Cyanide and lime concentrations were measured using standard titrimetric methods. Total sulphur was measured using a standard Leco furnace, and sulphide sulphur assays were measured using the standard wet chemical gravimetric analysis (Slim 2005d).   The PRA labs (part of Inspectorate labs) in Nevada and British Columbia are International Organization for Standardization (ISO) 9001:2008 certified, full service laboratories that are independent of Avino. Tetra Tech did not independently verify nor compare the results of the sampling program.   11.3 Drilling Program, San Gonzalo, 2007, 2008, and 2011   For the drilling programs at San Gonzalo, core is sawed at Avino's core storage facility at the secure mine site. Samples of vein material, usually from a few centimeters to 1.5 m, are placed and sealed in plastic bags, which are collected by personnel from Inspectorate Labs in Durango at the mine site facilities. Samples are prepared in Durango, and pulps are sent to the Inspectorate facility in Sparks, Nevada for analysis.   Sample preparation in Durango involves the initial drying of the entire sample. Two-stage crushing is used to create a product which is at least 80% minus 10 mesh. A Jones riffle splitter is then used to separate a nominal 300 g portion of the sample. This 300 g sub-sample is then pulverized to more than 90% passing a 150-mesh screen. Inspectorate Labs states that they use sterile sand to clean the pulverizer between samples (Gunning 2009).   Gold analyses are by 30 g fire assay with an AA finish. Silver, zinc, and lead are analyzed as part of a multi-element inductively coupled argon plasma package using a four-acid digestion with over-limit results for silver being reanalyzed with assay procedures using fire assay and gravimetric. Avino employs a rigorous quality control program that includes standardized material, blanks, and core duplicates. However, for the 2007 program, Avino did not perform any independent QA/QC and relied on the internal QA/QC procedures completed by the labs (Gunning, 2009).   Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino.   Avino used a series of standard reference materials (SRMs), blank reference materials (blanks) and duplicates as part of their QA/QC program during analysis of assays from San Gonzalo vein drillholes. Tetra Tech compiled and reviewed these results in Section 12.1.4.       Avino Silver & Gold Mines Ltd. 11-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               11.4 Drilling Programs, ET Zone of the Avino Vein, 2006, 2007, 2008 and 2012   Sample lengths of NQ drill core were diamond sawed into halves by mine staff and shipped to Inspectorate Labs in Durango for preparation into pulps and rejects. Pulps were analyzed at Inspectorate Labs in Sparks, Nevada. Gold and silver were analyzed by fire assay using aqua regia leach and AA finish. Other elements are reported from a 29-element ICP-MS package. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.   Avino used a series of standard reference materials (SRMs), blank reference materials (Blanks) and duplicates as part of their QA/QC program during analysis of assays from Avino vein drillholes. Tetra Tech compiled and reviewed these results in Section 12.1.4.   11.5 Underground Channel Sampling of San Gonzalo Vein, 2010 to Present   Samples from channels cut across the San Gonzalo vein were assayed by Inspectorate Labs. Samples were crushed and ground in Durango with pulps assayed in Richmond, British Columbia using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver. Base metals were analyzed via aqua regia digestion and ICP-MS. Inspectorate Labs in Durango and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample preparation and analysis and QA/QC procedures are as described in Section 11.3.   For the 2011 bulk sampling program of San Gonzalo, samples were obtained from channels cut across the vein, and were assayed by Inspectorate Labs. Samples were crushed and ground in Durango with pulps assayed in Richmond, British Columbia using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver. Base metals were analyzed via aqua regia digestion and ICP-MS for base metals. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino.   Samples from 2012 and 2013 underground channel sampling of the San Gonzalo vein are shipped to Inspectorate Labs for analysis for gold, silver, arsenic, bismuth, copper, molybdenum, lead, antimony, zinc, and mercury. Samples are crushed and ground in Durango with pulps assayed in Reno, Nevada using fire assay and AA finish for gold, four acid digestion and AA for most silver with fire assay and gravimetric finish for very high silver, and aqua regia digestion and ICP-MS for base metals. Inspectorate Labs in Nevada and British Columbia are ISO 9001:2008 certified, full service laboratories that are independent of Avino. Sample QA/QC procedures are as described in Section 11.3.       Avino Silver & Gold Mines Ltd. 11-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               11.6 Avino Laboratory   The Avino laboratory has fire assay, AA and sieving analysis equipment. Head grade assay data comparisons (Figure 11.1) suggest that recent gold assay results from the Avino laboratory are consistently slightly higher than those from the SGS laboratory in Durango. Silver analyses are similar overall, with slightly higher grades reported from the Avino laboratory at low silver values (below approximately 80 ppm) but with slightly lower grades reported at high silver values.   Figure 11.1 Head Grade Composite Assay Comparison for Gold and Silver Between the Avino and SGS Durango Laboratories (January to May 2012)     11.7 Specific Gravity Samples   Avino completed specific gravity measurements on drillcore from both the Avino and San Gonzalo veins. All measurements were completed by Avino staff on the mine site. Two different methods were employed to obtain these specific gravity values: caliper volume calculation (CV) and water displacement (WD). The procedures followed for each method are summarized below.   A total of 262 samples were measured for bulk density, 110 from the Avino vein and 152 from the San Gonzalo vein. Tetra Tech provides recommendations regarding specific gravity sampling procedures in Section 26.1.4 and a QP opinion in Section 12.5.1.   11.7.1 Caliper Volume Calculation Method   The CV method of determining the specific gravity of drillcore samples involved the following procedures, based on the methodology outlined by Lipton (2001):   ·   Each measurement involves pieces of whole core with the ends neatly cut perpendicular to the core axis.       Avino Silver & Gold Mines Ltd. 11-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               ·   The core diameter is determined using a pair of vernier calipers, and the diameter should be measured at several points along the length of core and averaged.   ·   The core length is measured using a tape measure.   ·   The mass is determined by weighing the core; weighing should be completed once the core is dried.   ·   The dry bulk density is calculated by: density = mass/volume where volume =  x (average core diameter/2)2 x core length.   11.7.2   Water Displacement Method   The WD method of determining the specific gravity of drillcore samples involved the following procedures, based on Archimedes’ Principle:   ·   The mass is determined by weighing the core; weighing should be completed once the core is dried.   ·   A graduated cylinder, of an appropriate size to completely submerse the core, is used to determine the volume.  The volume of water in the graduated cylinder is measured prior to submersing the core.   ·   The core is then submersed in water in the graduated cylinder and the total volume is measured.   ·   The difference in the volume of water before and after sample submersion is the volume of the sample.   ·   The dry bulk density = mass/volume.   11.8   QP Opinion   Tetra Tech is not aware of any drilling, sampling or recovery factors affecting the reliability of the samples.  It is Tetra Tech’s opinion that the sample preparation, security and analytical procedures followed by Avino are adequate for the purpose of this study and technical report.       Avino Silver & Gold Mines Ltd. 11-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               12.0   DATA VERIFICATION   12.1   Avino and San Gonzalo Vein Drillhole Database Verification   Tetra Tech compiled the drillhole data provided by Avino on a hole-by-hole basis, including drillhole collar, survey, lithology, and assay data. A variety of partially-compiled data sources were provided to Tetra Tech at various times during development of this study, indicating that the technical database on the Avino mine site is poorly-organized and inconsistently managed. Although many of the drillholes have been previously disclosed by Gunning (2009) and Tetra Tech (2012), the lack of a compiled and unified database and inconsistent data management has resulted in an overall low confidence in the data as provided. As a result, Tetra Tech verified the collar and assay data from at least 10% of all drillholes and channel samples included in the current, compiled database. Survey data could not be verified. Lithology data could not be verified due to inconsistent and conflicting geology data (see Section 12.1.3).   Tetra Tech selected the following drillholes for verification: ET-06-01, ET-07-03, ET-08-05, ET-12-08, SG-07-01, SG-07-14, SG-07-28, SG-07-40, SG-08-03, SG-11-02, and SG-11-16.   The San Gonzalo underground channel samples were provided to Tetra Tech in the form of AutoCAD™ plan and section views and in spreadsheets containing only assay results; 3D location coordinates and from-to values for each channel sample were not provided. The location of channel samples was compiled by Tetra Tech using the plan and section views provided by Avino. Each channel was treated as a drillhole and digitized with collar and survey information, as indicated on the plan and section views. This data was cross-referenced with the assay data provided by Avino, and a unique channel identifier, including from-to values for each assay sample, was assigned for each channel in the database. Following data compilation, more than 10% of all assays from these channels were verified against the laboratory assay certificates; these results are included in the verification results discussed in Section 12.1.1.   The QP opinion of the reliability of the Avino drillhole data is discussed in Section 12.5.1 and detailed recommendations are provided in Section 26.1.   12.1.1   Collar and Assay Data   The overall rate of significant errors was less than 1% for gold, silver, copper, lead, and zinc. Table 12.1 summarizes the validation results and Table 12.2 documents errors observed. The most frequent errors in the assay database are related to inconsistent application of rounding parameters and an inconsistent approach to below detection limit values, which are considered to be minor errors that do not impact the overall confidence in the database.       Avino Silver & Gold Mines Ltd. 12-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 12.1 Validation Summary   Database Description Unit Collar Table Number of Records 490 Number of Records Reviewed 55 Validation Percentage 11.2% Errors Found 6 Errors Found (>1 m difference) 1 Error Rate 10.9% Rate of Significant Errors 1.8% Assay Table Number of Records (Au, Ag, Cu, Pb, Zn) 31,385 Number of Records Reviewed 5,765 Validation Percentage 18.4% Errors Found 34 Errors Found (> 1 decimal place) 1 Error Rate 0.6% Rate of Significant Errors 0.0%   Note: Positional information not reviewable for channel samples; assay errors not including inconsistencies in reporting below-detection-limit values.   Table 12.2 Collar and Assay Database Errors   Database Drillhole/ Channel Sample ID Item Error Collar ET-08-05 N/A Elevation Value in database 2239.836; value in log 2284.991. Collar ET-12-08 N/A Easting Value in database 570678.266; value in log 570678.469. Collar ET-12-08 N/A Northing Value in database 2712593.838; value in log 2712593.381. Collar ET-12-08 N/A Elevation Value in database 2226.767; value in log 2226.776. Collar SG-07-28 N/A Northing Value in database 2714077.851; value in log 2714077.012. Collar SG-08-03 N/A Elevation Value in database 2335.066; value in log 2335.766. Assay SG-07-01 150678 Ag Value in database 1342; value in certificate 1342.4. Assay SG-11-02 157262 Ag Value in database 170; value in certificate 170.4. Assay L4-L-0 165979 Ag Value in database 36; value in certificate 36.4. Assay L4-L-1 O 165981 Ag Value in database 4; value in certificate 4.3. Assay L4-L-1 O 165982 Ag Value in database 23; value in certificate 23.3. Assay L4-L-2 O 165983 Ag Value in database 6; value in certificate 5.8. Assay L4-L-2 O 165984 Ag Value in database 18; value in certificate 18.4. Assay L4-L-2 O 165985 Ag Value in database 8, value in certificate 7.7. Assay L4-L-3 O 165987 Ag Value in database 496; value in certificate 495.7. Assay L4-L-3 O 165988 Ag Value in database 14; value in certificate 13.7. Assay L4-L-4 O 165989 Ag Value in database 50; value in certificate 50.3. Assay L4-L-4 O 165990 Ag Value in database 26; value in certificate 25.8. Assay L4-L-4 O 165991 Ag Value in database 250; value in certificate 250.3. Assay L4-L-5O 165992 Ag Value in database 51; value in certificate 51.4. Assay L4-L-5 O 165993 Ag Value in database 323; value in certificate 322.6. Assay L4-L-5 O 165994 Ag Value in database 273; value in certificate 273.3. table continues…       Avino Silver & Gold Mines Ltd. 12-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Database Drillhole/ Channel Sample ID Item Error Assay L4-L-6 O 165995 Ag Value in database 111; value in certificate 110.7. Assay L4-L-6 O 165996 Ag Value in database 1799; value in certificate 1799.3. Assay L4-L-6 O 165997 Ag Value in database 289; value in certificate 289.3. Assay L4-L-6 O 165998 Ag Value in database 66; value in certificate 65.8. Assay L4-L-60 P 166873 Au Value in database 7.597; value in certificate 7.579. Assay L-4-L-147-O 169156 Zn Value in databse 1900; value in certificate 19000   Note: Positional information not reviewable for channel samples; assay errors not including inconsistencies in reporting below-detection-limit values.   A previous validation exercise was completed for assay results from post-2009 drilling by Tetra Tech (2012). Original assay certificates were compared against the data as reported by Avino. Assay results from drillholes SG-11-13 to SG-11-17, and ET-12-01 to ET-12-09 were verified. For all metals in the database (gold, silver, copper, lead, zinc, and bismuth), the error incidence was less than 1%. Table 12.3 documents these errors.   Table 12.3 Assay Database Errors From Previous Validation (Tetra Tech, 2012)   Hole Number Sample Number From (m) To (m) Error ET-12-05 162686 345.10 345.50 Value entered as 4.8 g/t Au, should be 48.1 g/t Au; Value entered as 350 g/t Ag, should be 1,811.3 g/t Ag ET-12-05 162687 345.50 345.80 Value entered as 2.8 g/t Au, should be 28.3 g/t Au ET-12-02 162463 276.85 277.3 Value entered as 101.1 g/t Ag, should be 101.8 g/t Ag ET-12-06 162720 Standard Value entered as 1.02 ppm Pb, should be 10,200 ppm Pb ET-12-05 162694 354.8 355.8 Value entered as 2,600 ppm Zn, should be 26,000 ppm Zn   Drillhole SG-08-01 was excluded from resource estimation of the San Gonzalo vein (Section 14.2) because the vein intersection is inconsistent with the vein intersections of nearby drillholes and underground workings. It is possible that the collar location of SG-08-01 was incorrectly surveyed, but this cannot be confirmed by Tetra Tech.   12.1.2   Downhole Survey Data   Downhole survey data exists for 87 of the 98 drillholes completed in the Avino and San Gonzalo veins. Most drillholes have three or fewer downhole survey points, which is less frequent than typical industry practice. Many of these holes contain a survey data point at the collar and near the end of hole, and sometimes part-way down the hole. However, 26 of the 87 holes for which downhole survey data exists were not surveyed to within 10 m of the end of the hole. All measurements were completed by a magnetic survey method, which is not recommended in general, and particularly not in locations with extensive underground infrastructure such as those present on the Property. Given the abundance of historical infrastructure on the Property and the potential for any drillholes to intersect active workings, downhole survey measurements should be collected at a frequency of at least every 10 m and all drillholes should be cemented following completion.       Avino Silver & Gold Mines Ltd. 12-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Downhole survey data for hole SG-07-06 was disregarded below 50 m depth due to an unrealistic kink in the drillhole orientation below this depth, which could be due to an instrument malfunction or to magnetic interference.   12.1.3   Geology Data and Interpretation   Tetra Tech has the following observations on the Avino geology database and interpretation:   ·   To Tetra Tech’s knowledge, routine photography of drillcore and underground drifts is being completed. A digital photographic record is kept of all drillcore and underground drifts for future reference, and to facilitate consistent core logging and geology interpretation.   ·   Geology logs for both the Avino and San Gonzalo veins have not been entered into a digital format. Although digital cross-sections exist for all holes, these were not created from a geology database and in many instances it appears that the depths of lithology contacts on these sections are only approximate (see point 3 below).   ·   From-to depths of drillcore intersections are frequently inconsistent between data sources. The most common example of this is inconsistent depths of geological contacts between geological sections created by Avino and paper drillhole logs.   ·   Rock type names are frequently inconsistent from one data source to another (such as between paper core logs, cross sections, and lithology comments for assay intervals and density samples). For example, Tetra Tech observed numerous instances of the same interval in a drillhole called both an andesite and an intrusion in different data sources. Photography (point 1 above) would facilitate more consistent logging.   ·   Rock type names are frequently applied incorrectly, and a primary cause of this appears to be that the distinction between rock names for volcanic and intrusive rocks is not clear. An example frequently observed is the rock type name “andesitic intrusion”, which is incorrect. If the rock unit appears to be an extrusive volcanic rock, the term andesite is appropriate. If the rock appears to be an intrusive igneous rock and is of intermediate composition, then the term diorite should be used. Mis-application of volcanic (i.e. extrusive) versus intrusive igneous rock terminology has lead to an inconsistent geological interpretation of the mine geology.   ·   The information on the regional and property geology (Slim 2005d; Paulter 2006) suggests a greater diversity in the chemical composition of volcanic and intrusive rocks than is reflected in any of the Avino mine geology logs or sections. The mine geology also does not appear to correlate distinct lava flows, volcaniclastic units, or intrusive phases. Further work is warranted in establishing the stratigraphy on the Property, and particularly within the mine areas. Establishing this should improve the confidence of correlations between drillholes and may help identify additional targets for exploration on the Property.       Avino Silver & Gold Mines Ltd. 12-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               12.1.4   Review of Drillhole Quality Assurance/Quality Control Samples   Avino used a number of SRMs, blank reference materials (blanks) and duplicates as part of their QA/QC program. QA/QC samples were submitted in the sample stream during all 2006 to 2012 drilling programs on both the Avino and San Gonzalo veins, although not in a consistent manner. These results were reviewed by Tetra Tech and are discussed below.   The rate of QA/QC sample insertion is slightly below recommended industry standards on the Avino vein (close to 5% of total samples), but significantly below industry standards on the San Gonzalo vein (less than 3% of total samples). Based on the information provided to Tetra Tech, it also does not appear that industry standard plots of SRM, blank, and duplicate results (see below) are being constructed and reviewed by Avino on a routine basis.   Standards   A total of 76 standards were analyzed during the 2006, 2007, 2008, 2011, and 2012 drilling programs. Avino used five laboratory-certified standards for their 2007, 2008, 2011, and 2012 drilling programs, and the results of these standards are discussed below. Although standards were also analyzed during the 2006 drilling program, a variety of different standards were used and these miscellaneous results are not discussed further here.   A rough sinusoidal pattern is observed for most standards, which is indicative of laboratory calibration drift and suggests that more frequent instrument calibration should be completed by the Inspectorate laboratory used by Avino.   Overall, there does not appear to be any systematic bias in sample grades, although one low grade SRM (Cu136) showed a slight bias to higher silver and copper grades. This same bias was not observed with the other SRMs and is therefore not considered representative of a general analytical bias. This may, however, suggest a lower degree of analytical accuracy at low silver and copper grades.   SRM Cu119   There were 13 Cu119 SRMs used through all drilling programs. The Cu119 SRM is from WCM Minerals of Burnaby, British Columbia and has reported results of 0.506±0.0269% copper and 158.388±11.343 g/t silver (within two standard deviations). This SRM is not ideal for the Project because it is not certified for gold, one of the primary metals of economic interest in the Avino mine. SRM Cu119 results are shown in Figure 12.1 for silver and Figure 12.2 for copper.       Avino Silver & Gold Mines Ltd. 12-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Silver values for SRM Cu119 were generally within the acceptable limits, with two marginal fails above the accepted value and one marginal fail below. The copper results show more variability, with several high and low failures. It appears that instrument calibration drift is more evident with the copper results. Overall, SRM Cu119 indicates a lack of analytical bias.   Figure 12.1 SRM Cu119 Results – Silver     Figure 12.2 SRM Cu119 Results – Copper     SRM Cu136   There were 14 Cu136 SRMs used through all drilling programs. An additional two SRMs labelled as CU136 were excluded because of apparent sample mis-labelling. The Cu136 SRM is from WCM Minerals of Burnaby, British Columbia and has reported results of 0.069±0.0042% copper, 29.1±2.185 g/t silver, and 2.278±0.140 g/t gold (within two standard deviations). SRM Cu136 results are shown in Figure 12.3 for silver, Figure 12.4 for gold, and Figure 12.5 for copper.       Avino Silver & Gold Mines Ltd. 12-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               SRM Cu136 has numerous silver and copper fails above the acceptable limits, which is a concern. Other standards do not show a similar failure pattern, which suggests that it is not an overall analytical bias with the instrument. However, this is a lower grade standard than others used in this QA/QC program, and it is possible that the instrument may not be accurately calibrated at lower grades, or that sample contamination during preparation is most evident in lower grade samples.   Four failures are noted for gold, however there is no consistent bias with the gold results. Rather, the gold results show a rough sinusoidal pattern.   Figure 12.3 SRM Cu136 Results – Silver     Figure 12.4 SRM Cu136 Results – Gold           Avino Silver & Gold Mines Ltd. 12-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.5 SRM Cu136 Results - Copper     SRM CDN-GS-5G   There were 12 CDN-GS-5G SRMs used through all drilling programs. The CDN-GS-5G SRM is from CDN Resource Laboratories in Langley, British Columbia and has reported results of 101.8±7.0 g/t silver and 4.77±0.40 g/t (within two standard deviations). SRM CDN-GS-5G results are shown in Figure 12.6 for silver and Figure 12.7 for gold.   One high and one low silver failure was noted for SRM CDN-GS-5G, but there is no apparent analytical bias for this SRM. All gold values were within the accepted range.   Figure 12.6 SRM CDN-GS-5G Results – Silver         Avino Silver & Gold Mines Ltd. 12-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.7 SRM CDN-GS-5G Results – Gold     SRM CDN-GS-1P5D   There were 11 CDN-GS-1P5D SRMs used through all drilling programs. The CDN-GS-1P5D SRM is from CDN Resource Laboratories in Langley, British Columbia and has reported results of 1.47±0.15 g/t gold (within two standard deviations). This SRM is not ideal for the Project because it is not certified for silver, the primary metal of economic interest in the Avino mine. SRM CDN-GS-1P5D results are shown in Figure 12.8 for gold.   One high and one low failure was noted for SRM CDN-GS-1P5G, however there is no apparent analytical bias.   Figure 12.8 SRM CDN-GS-1P5G Results – Gold           Avino Silver & Gold Mines Ltd. 12-9 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               SRM CDN-ME-6   There were 12 CDN-ME-6 SRMs used through all drilling programs. The CDN-ME-6 SRM is from CDN Resource Laboratories in Langley, British Columbia and has reported results of 101±7.1 g/t silver, 0.27±0.028 g/t gold, 0.613±0.034% copper, 1.02±0.08% lead, and 0.517±0.040% zinc (within two standard deviations). SRM CDN-ME-6 results are shown in Figure 12.9 for silver, Figure 12.10 for gold, Figure 12.11 for copper, Figure 12.12 for lead, and Figure 12.13 for zinc.   Failures for SRM CDN-ME-6 include three for silver, one for gold, two for copper, 4 for lead, and 2 for zinc. Most failures are marginal however, and there is no apparent analytical bias for any element. All elements appear to show a rough sinusoidal pattern.   Figure 12.9 SRM CDN-ME-6 Results – Silver     Figure 12.10 SRM CDN-ME-6 Results – Gold           Avino Silver & Gold Mines Ltd. 12-10 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.11 SRM CDN-ME-6 Results – Copper     Figure 12.12 SRM CDN-ME-6 Results – Lead             Avino Silver & Gold Mines Ltd. 12-11 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.13 SRM CDN-ME-6 Results – Zinc     Blanks   A total of 49 blanks were analyzed during the 2007, 2008, 2011, and 2012 drilling programs. Two different materials were used as blanks. No blank was used for the 2006 drilling program, a locally-sourced basalt was used for the 2007 and 2008 drilling programs, and a laboratory-certified blank was used for the 2011 and 2012 drilling programs.   Basalt Blank   For the 2007 and 2008 drilling programs, Avino used a locally-sourced basalt as blank material. A total of 26 basalt blanks were analyzed. To Tetra Tech’s knowledge, no expected results were determined for this basalt material. As a result, the blank analysis below applies arbitrary reasonable upper limits for the analyses in order to gain some idea of lab performance on the three primary metals of economic importance in the Avino mine (silver, gold, and copper). For gold, the same upper limit is applied as reported for the CDN-BL-9 blank (0.01 g/t). For silver, an upper limit of three times the detection limit was used, or 0.3 g/t. For copper, an arbitrary upper limit of 0.005% (50 ppm) was used, or roughly the average background level of copper in the earth (Emsley 2003).   The results for the basalt blank are shown in Figure 12.14 for silver, Figure 12.15 for gold, and Figure 12.16 for copper. Six silver samples failed, or 23% of all blanks. Three gold samples failed, or 11% of all samples. For copper, 13 samples failed or 50% of all samples. Although the upper failure limits applied to the basalt are arbitrary, they are reasonable values which any blank (for these three elements of interest) should be below. Therefore, this basalt is not a good source of blank material for the Avino mineralization and should not be used for future QA/QC studies. Nonetheless, the plots below do provide some idea of lab contamination; overall, it does not appear that a systematic bias is present due to contamination.         Avino Silver & Gold Mines Ltd. 12-12 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               If a locally-sourced blank is used, a more appropriate material should be selected that contains less than three times the detection limit of any elements of economic interest. In addition, the material should first be sent to a number of laboratories to provide an upper limit for acceptable analyses.   Figure 12.14 Basalt Blank – Silver     Figure 12.15 Basalt Blank – Gold             Avino Silver & Gold Mines Ltd. 12-13 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.16 Basalt Blank – Copper     CDN-BL-9 Blank   One laboratory-certified blank was used during the 2011 and 2012 drilling programs on both the Avino and San Gonzalo veins. The blank is CDN-BL-9, from CDN Resource Laboratories in Langley, British Columbia, it is derived from granite material, and it has a reported upper limit for gold of 0.01 g/t. A total of 23 CDN-BL-9 blanks were analyzed. This blank is only certified for gold, which is not ideal because silver is the primary metal of economic interest in the Avino mine. In order to gain some idea of the performance of the lab on silver and copper, the same arbitrary upper limits were used as applied to the basalt blank (0.3 g/t silver and 0.005% copper).   The results for the CDN-BL-9 blank are shown in Figure 12.17 for silver, Figure 12.18 for gold, and Figure 12.19 for copper. For silver, seven failures were noted, or 30% of all blanks. One gold sample failed, or 4% of all samples. There were no copper failures. Although the upper failure limits applied for silver and copper are arbitrary, they are reasonable values which any true blank (for these elements) should be below. Therefore, CDN-BL-9 is not a good source of blank material for silver (even without certification by the laboratory). If a laboratory-certified blank is used, it should at minimum be certified for gold and silver, the primary metals of economic interest in the Avino mine.   Nonetheless, the plots below do provide some idea of lab contamination; overall, it does not appear that a systematic bias is present due to contamination.         Avino Silver & Gold Mines Ltd. 12-14 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.17 CDN-BL-9 Blank – Silver     Figure 12.18 CDN-BL-9 Blank – Gold           Avino Silver & Gold Mines Ltd. 12-15 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.19 CDN-BL-9 Blank – Copper     Duplicates   Field duplicates were collected from 33 samples from both the Avino and San Gonzalo veins. The results of duplicate samples are shown in Figure 12.20 (silver), Figure 12.21 (gold), Figure 12.22 (copper), Figure 12.23 (lead), and Figure 12.24 (zinc). In some cases, very high grade samples were excluded from the graph in order to allow better resolution of the lower-grade results. An incorrect original sample for a duplicate is apparent in one instance.   The target results are 90% within a 20% relative difference of the original sample. For the elements shown below, 73% of gold analyses, 76% of silver analyses, 85% of copper analyses, 91% of lead analyses, and 91% of zinc analyses are within the 20% relative difference window. There does not appear to be a consistent trend in the samples that fall outside of this window. The number of samples that are outside this window therefore likely reflects the inherent variability in element distribution within the deposit.   Figure 12.20 Duplicates Results – Silver           Avino Silver & Gold Mines Ltd. 12-16 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.21 Duplicates Results – Gold     Figure 12.22 Duplicates Results – Copper     Figure 12.23 Duplicates Results – Lead           Avino Silver & Gold Mines Ltd. 12-17 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.24 Duplicates Results – Zinc     12.2 Avino and San Gonzalo Vein Bulk Density   A limited number of specific gravity measurements were originally collected by Avino from drillholes in the Avino and San Gonzalo Veins. These measurements were not representative of the veins spatially or by drilling program, and Tetra Tech requested additional specific gravity measurements be completed on drillcore from both veins. These additional measurements were completed by Avino in 2013. These new measurements are part of the specific gravity database discussed in more detail in Section 10.2.3, Section 11.7 and Section 14.5.   Table 12.4 shows a comparison of the maximum, minimum, and mean results for specific gravity samples from the San Gonzalo vein, from the Avino vein, and from all samples.   Table 12.4 Percent Differences in Specific Gravity Values   Deposit Maximum Value Minimum Value Average Value % Difference (Max-Min) % Difference (Max-Mean) % Difference (Mean-Min) San Gonzalo Vein 3.23 2.0 2.62 62 23 31 Avino Vein 3.38 2.1 2.66 69 27 27 All 3.38 2.0 2.64 69 28 32   The 2013 specific gravity measurements included some samples that were measured by a CV method, and some by a WD method (see Section 11.7). As part of this exercise, Tetra Tech also requested that Avino complete duplicate measurements on whole drillcore by each method. These duplicate measurements were reviewed by Tetra Tech as a check on the reliability of the procedures followed on site. Table 12.5 shows the results from these duplicate measurements. The results show good agreement between the CV and WD methods, with an overall slight bias to lower values using the CV method.         Avino Silver & Gold Mines Ltd. 12-18 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 12.5 Comparison Between Specific Gravity Measurement By CV and WD: Avino Check Samples   Drillhole Depth (m) CV Density (g/cm3) WD Density (g/cm3) % Difference (WD-CV) SG-07-01 334.90 2.55 2.56 0.3 SG-07-07 272.10 2.77 2.79 0.9 SG-07-16 85.00 2.60 2.63 1.1 SG-07-28 295.00 2.58 2.61 1.2 SG-07-36 45.05 2.55 2.55 -0.3 SG-07-40 512.00 2.69 2.68 -0.3 SG-08-06 200.00 2.60 2.58 -0.7 SG-11-04 155.25 2.55 2.54 -0.5 SG-11-16 332.15 2.48 2.49 0.4 ET-07-05 280.00 2.66 2.66 0.1 ET-12-01 200.00 2.60 2.64 1.7 ET-12-09 390.45 2.63 2.64 0.5 Average - - - 0.3   Tetra Tech also reviewed the results by rock type and by analytical method, including previously collected results that were all completed using the CV method. Table 12.6 shows these results, indicating an overall good agreement between results obtained from both the CV and WD methods. However, this comparison does show a slight bias with the CV method yieleding consistently lower average densities.   Table 12.6 Comparison Between Specific Gravity Measurement By CV and WD: By Rock Type   Deposit Number of Samples (VC) Number of Samples (WD) Average Density VC (g/cm3) Average Density WD (g/cm3) % Difference (WD-CV) San Gonzalo Vein 113 39 2.62 2.64 0.8 Avino Vein 69 41 2.63 2.71 3.0 All 182 80 2.62 2.67 1.9   Based on this review, Tetra Tech recommends that Avino use the WD method for future specific gravity measurements, as outlined in Section 26.1. A QP opinion of the reliability of the Avino specific gravity data is discussed in Section 12.5.1.         Avino Silver & Gold Mines Ltd. 12-19 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               12.3   Oxide Tailings Drillhole Database   Tetra Tech compiled the assay data used in the oxide tailings resource estimate by referring to original mine sections (Tetra Tech 2012) and verification of this data is described below. The 1:1,000 scale plans drafted for this exercise were scanned and used to verify the positions of the old drillholes. A transposition error on one collar elevation in mine coordinates was observed and subsequently corrected (drillhole E3 was incorrectly recorded at an elevation of 2,275 m, and was corrected to 2,257 m).   Avino provided the following formulae to convert the collar coordinate data from local mine grid coordinates to UTM coordinates:   ·   local mine grid X + 560421.245 = X UTM   ·   local mine grid Y + 2707618.312 = Y UTM   ·   local elevation - 41.306 = elevation amsl.   Since the trenches (named with Z-series) from the 1990 to 1991 program represent incomplete surface sampling of an unrepresentative part of the pile (at the wall where the outlets for the hydraulic emplacement of the material were sited), these data were not used in the oxide tailings resource estimate.   12.3.1   Assay Verification of 1990/1991 Drillholes in Oxide Tailings   The drillholes in the oxide tailings were completed prior to institution of NI 43-101 and related QA/QC requirements. The analyses were completed in the Avino Mine laboratory and no original assay certificates have been produced or preserved. The database and mine sections were therefore compared with the original hand-written data collected from the mine laboratory. These assay sheets from the mine laboratory show good agreement with the mine sections and resulting database used by Tetra Tech for estimation of the oxide tailings in Section 14.1. Tetra Tech verified 54% of drillholes in this database (15 of 28 drillholes) and 58% of both silver and gold assays (444 of 766 values) used for this estimation (excluding the Z-series trenches). Only two errors were noted in the database, as documented in Table 12.7, yielding an error incidence of less than 1%. An additional discrepancy noted during this verification exercise was a mistake in the hole number sequence along the C-C’ line on the original plan view map (Figure 10.1, Section 10). The original mine sections and assay sheets skip hole C2 and include the drillhole numbers C1 and C3 to C6, whereas the plan view map lists the C-series drillholes sequentially from C1 to C5. The database used for estimation matches the mine sections and original assay sheets, and therefore no hole C2 exists in the database. The original mine sections are provided in Tetra Tech (2012). Also included in Appendix A are the original hand-written assay sheets for all drillholes that were verified (the assay sheets also includes assay data for other, unrelated material which was being processed around the same time as the oxide tailings material).         Avino Silver & Gold Mines Ltd. 12-20 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 12.7 1990/1991 Assay Database Errors   Hole Number From (m) To (m) Error E2 14 15 Ag value entered as 97 g/t, should be 87 g/t C4 18 19 Ag value entered as 119 g/t, should be 113 g/t   In order to verify the reliability of the assay data from the oxide tailings sampling, Tetra Tech collected numerous verification samples (as described in Section 12.3) with the goal of evaluating:   ·   the presence and grade of silver and gold in the tailings   ·   the reliability of the Avino Mine laboratory; to address this, the same samples were analysed at the mine as well as two external labs.   The QP opinion of the reliability of the 1990 to 1991 oxide tailings assays is discussed in Section 12.5.2.   12.3.2   Oxide Tailings Verification Samples   During a site visit conducted on June 7 and 8, 2012, Michael F. O’Brien visited the tailings heaps and supervised the collection of eight samples from the oxide tailings (3 to 4 kg each). The samples were collected from gulleys that had eroded into the tailings pile and provided a vertical section through the tailings. It is believed that while such samples cannot provide a statistically representative reflection of overall grade, they do provide some insight into the grade of the tailings near surface. The eight samples were each split into three separate sub-samples, which were submitted in turn to the Avino Mine laboratory together with SGS laboratories in Durango and Vancouver.   Statistical analysis of the three sets of results demonstrates that there is good correlation between the three labs, as exhibited by linear comparison plots in Figure 12.25 to Figure 12.29, and in correlation coefficient matrices in Table 12.8 to Table 12.12. Assay results from the verification samples are presented in Table 12.13; assay certificates for these results were previously disclosed by Tetra Tech (2012).   Silver values performed excellently, as did two of the three base metals. Zinc values from the Avino lab came back lower than at the two SGS labs, but displayed the same trend. As noted in Section 11.7, gold values from the Avino laboratory came back slightly higher than from the SGS labs. It should be noted that gold assays have a high intrinsic variance compared to other metals, hence the lower correlation numbers for those values, although they are well within normally expected variation. The variance and relative standard error (RSE) for each of the five metals are:   ·   silver: variance = 12.43 (g/t)2, RSE = 3.01%   ·   gold: variance = 0.011 (g/t)2, RSE = 9.16%       Avino Silver & Gold Mines Ltd. 12-21 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               ·   lead: variance = 440,534 ppm2, RSE = 5.24%   ·   zinc: variance = 53,990 ppm2, RSE = 16.91%   ·   copper: variance = 6,088 ppm2, RSE = 3.79%.   Figure 12.25 Linear Plot Comparing Silver Assay Results from Verification Samples     Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory         Avino Silver & Gold Mines Ltd. 12-22 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.26 Linear Plot Comparing Gold Assay Results from Verification Samples     Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Figure 12.27 Linear Plot Comparing Lead Assay Results from Verification Samples     Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory         Avino Silver & Gold Mines Ltd. 12-23 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.28 Linear Plot Comparing Zinc Assay Results from Verification Samples     Note            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Figure 12.29 Linear Plot Comparing Copper Assay Results from Verification Samples     Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory         Avino Silver & Gold Mines Ltd. 12-24 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 12.8 Correlation Coefficient Matrix for Silver Verification Sample Assays     Avino Ag (g/t) SGSD Ag (g/t) SGSV Ag (g/t) Avino Ag (g/t) 1 - - SGSD Ag (g/t) 0.963 1 - SGSV Ag (g/t) 0.984 0.986 1 Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Table 12.9 Correlation Coefficient Matrix for Gold Verification Sample Assays     Avino Au (g/t) SGSD Au (g/t) SGSV Au (g/t) Avino Au (g/t) 1 - - SGSD Au (g/t) 0.612 1 - SGSV Au (g/t) 0.808 0.703 1 Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Table 12.10 Correlation Coefficient Matrix for Lead Verification Sample Assays     Avino Pb (ppm) SGSD Pb (ppm) SGSV Pb (ppm) Avino Pb (ppm) 1 - - SGSD Pb (ppm) 0.948 1 - SGSV Pb (ppm) 0.989227101 0.968924309 1 Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Table 12.11 Correlation Coefficient Matrix for Zinc Verification Sample Assays     Avino Zn (ppm) SGSD Zn (ppm) SGSV Zn (ppm) Avino Zn (ppm) 1 - - SGSD Zn (ppm) 0.940 1 - SGSV Zn (ppm) 0.984 0.955 1 Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   Table 12.12 Correlation Coefficient Matrix for Copper Verification Sample Assays     Avino Cu (ppm) SGSD Cu (ppm) SGSV Cu (ppm) Avino Cu (ppm) 1 - - SGSD Cu (ppm) 0.999 1 - SGSV Cu (ppm) 0.998 0.999 1 Note:            SGSD – SGS Durango Laboratory, SGSV – SGS Vancouver Laboratory   The sampling exercise did provide the opportunity to review the artificial sedimentary deposit that comprises the Avino oxide tailings and supported the previous assumptions of the tailings, such as regarding the oxide tailings as two superimposed units with slightly different chemical and particle size characteristics and pronounced horizontal continuity. The source data and plans prepared more than 20 years ago after the initial drilling campaign were examined at the mine and found to be of professional standard and provide support for their use in the estimation of the oxide tailings. The overall homogeneity of the material, horizontal continuity and relatively high confidence in the volume and tonnage, mitigate any uncertainty in the historical data set.       Avino Silver & Gold Mines Ltd. 12-25 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 12.30 shows a view of one of the channels created to collect these verification samples.   Figure 12.30 Verification Sample 1 Channel     Note:            The pick handle is 1.2 m in length.           Avino Silver & Gold Mines Ltd. 12-26 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 12.13 Results of Verification Samples   Avino Laboratory Results SGS Durango Results SGS Vancouver Results Sample Number Ag (g/t) Pb (ppm) Zn (ppm) Cu (ppm) Au (g/t) Sample Number Ag (g/t) Pb (ppm) Zn (ppm) Cu (ppm) Au (g/t) Sample Number Ag (g/t) Pb (ppm) Zn (ppm) Cu (ppm) Au (g/t) 162185 35 2,812 243 826 0.82 165019 44 2,660 421 907 0.63 165019 41 2,880 431 854 0.65 162188 47 2,125 292 848 0.91 165020 43 2,400 553 1,020 0.62 165020 42 2,640 559 997 0.65 162189 38 2,928 460 2,356 0.62 165021 39 2,660 751 2,610 0.59 165021 38 2,790 726 2,430 0.50 162190 70 8,298 498 993 0.65 165022 69 6,650 779 1,120 0.57 165022 67 6,690 791 1,060 0.49 162191 62 7,398 441 878 0.54 165023 58 7,540 868 1,030 0.51 165023 58 6,140 695 953 0.56 162192 85 8,821 724 951 0.77 165024 92 7,070 1,220 1,060 0.47 165024 79 6,850 1,100 1,000 0.51 162193 76 7,700 553 1,062 0.72 165025 73 8,260 1,250 1,230 0.53 165025 69 6,560 960 1,110 0.54 162194 57 5,689 791 523 0.45 165026 56 5,890 1,380 583 0.47 165026 52 5,530 1,340 569 0.37               Avino Silver & Gold Mines Ltd. 12-27 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               12.4   Site Visit   Michael F. O’Brien conducted a site visit on June 7 and 8, 2012. During this visit, Mr. O’Brien visited the tailings heaps and verified the location of walls and the extent of the oxide and sulphide tailings. Mr. O’Brien supervised the collection of eight samples from the oxide tailings; a Garmin GPSMAP® 60CSx GPS was used to verify locations. The underground, open-pit, and dump sampling sections of the mine were visited to gain familiarity with the geography and deposits of the Avino and San Gonzalo veins. The San Gonzalo mine was toured down to the level 3 ramp to level 4. The Avino underground workings were flooded at the time of the site visit, and only the portal area could be visited. The core shed was visited, where Mr. O’Brien observed the data capture and specific gravity measurement procedures followed by mine staff. Mr. O’Brien also visited the Avino Mine laboratory, and observations related to the lab are presented in Section 11.6.   12.5   Tetra Tech Conclusions and Opinion   The drill dataset has been produced within a brownfield property. All data used for this study is obtained from work carried out by staff of the current issuer, which has owned the Property continuously since the start of this work.   12.5.1   Avino and San Gonzalo Veins   Drillhole Database   A single, compiled database containing all relevant drilling information does not exist for the Property. A variety of partially-compiled data sources were provided to Tetra Tech, indicating poorly-organized and inconsistent database management. In order to verify that the assay data provided by Avino is reliable, Tetra Tech verified the collar and assay data from at least 10% of all drillholes and channel samples included in the current database (as compiled by Tetra Tech). This verification exercise yielded results within an acceptable error rate for collar and assay data.   Based on the data verification completed by Tetra Tech, it is evident that the data collected by Avino is reliable. However, the data management needs to be better organized. The data, as provided by Avino, was only usable for the purpose of this study after extensive data compilation and verification by Tetra Tech.   Downhole Survey Data   Downhole survey data is currently not being collected to industry standards by Avino. However, the location of the Avino and San Gonzalo vein intersections observed in drillholes can be verified by both surface and underground mapping, providing confidence in the location, orientation, and true width of both veins.         Avino Silver & Gold Mines Ltd. 12-28 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Geology Data and Interpretation   Overall confidence in the Avino geology interpretation and database is low. However, the vein intersections were more consistently identified and logged, and the veins of interest are confirmed by assays and surface and underground mapping. Therefore, despite Tetra Tech’s concerns with the geological identification and interpretation on the mine, the lithology database is considered appropriate for this study because the lithology units modelled and included in the resource estimates in Section 14.1 and Section 14.2, the Avino and San Gonzalo veins, were confirmed by separate data sources.   Specific Gravity Samples   Based on a review of specific gravity data from drillholes in the Avino and San Gonzalo veins, Tetra Tech concludes that future bulk density measurements should be completed using a water displacement method. The frequency at which specific gravity measurements are collected should also be increased. A comparison of the two measurement techniques used for these SG samples indicates that the results are acceptable for this study.   QA/QC Samples   The rate of QA/QC sample insertion is slightly below recommended industry standards on the Avino vein, but significantly below industry standards on the San Gonzalo vein. Based on the information provided to Tetra Tech, it also does not appear that industry standard plots of standard, blank, and duplicate results (as in Section 12.3) are being constructed and reviewed by Avino on a routine basis. However, QA/QC samples were collected, albeit inconsistently, from all 2006 to 2012 drilling programs and Tetra Tech reviewed the results of these samples. This review found no evidence of systematic laboratory bias, indicating that the assay results are reliable.   12.5.2   Oxide Tailings   The identified grade pattern is similar in character to other tailings deposits, such as overall homogeneity and a pronounced horizontal continuity.   Verification samples taken by Mr. O’Brien have confirmed the presence of gold and silver mineralization at grades similar to those obtained in the original tailings drilling campaign, with a low silver bias consistent with the superficial position of the samples in the zone most likely to have suffered surface leaching. The verification samples also confirm that the mine lab assays are not materially different from those of external labs.   12.5.3   QP Opinion   There were no limitations on or failure to conduct data verification.   It is Tetra Tech’s opinion that the assay, sample location, vein lithology, and specific gravity data from the Avino and San Gonzalo veins are reliable to support the purpose of this technical report and a current mineral resource on both veins.         Avino Silver & Gold Mines Ltd. 12-29 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               While it has been difficult to verify the oxide tailings drill dataset, the fact pattern identified in Section 12.5.2. suggests to Tetra Tech that it is reasonable to rely on the oxide tailings drill database to support the purpose of this technical report and a current mineral resource.                   Avino Silver & Gold Mines Ltd. 12-30 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               13.0 MINERAL PROCESSING AND METALLURGICAL TESTING   13.1 Avino Vein   Avino is not conducting mining activity on the Avino vein. No mineral processing methods or metallurgical testing is underway or proposed for the Avino vein.   Historical smelter receipts (pre-2001) and recent discussions with concentrate trading firms have suggested bismuth would be an element of concern in the concentrate. There are plans for metallurgical test work with the objective of reducing the bismuth content in the concentrate in order to improve on the smelter return.   13.2 San Gonzalo Vein   Avino is currently conducting mining activity on the San Gonzalo vein, including processing of San Gonzalo vein material at the mine plant.   No current metallurgical testwork has been performed. Production decisions are being made without mineral reserves or any studies of economic viability that have been prepared in accordance with NI 43-101. Avino is basing its economic decisions on the net proceeds of a bulk sample program described in Section 9.3.2 and on the basis of results of the current operations.       Avino Silver & Gold Mines Ltd. 13-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               13.3 Oxide Tailings   Tetra Tech has disclosed mineral processing and metallurgical testing methods and results for the oxide tailings portion of the Property. These were disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   Tetra Tech used the estimated grade values and test work results as reported by MMI and PRA, who conducted the metallurgical tests. From these Tetra Tech reviewed all available data and developed different mining and processing flowsheets during the evaluation of the property. Much of the previous data could not be validated and, therefore, could not be used in the review. The MMI technical report indicated that an economic evaluation of the tailings deposit could not be completed at this stage since the deposit could only be classified as an inferred resource. MMI had arrived at this conclusion based on their acknowledgement that their study was limiting with respect to the sampling of the tailings dam and incomplete metallurgical characterization. However, a conceptual financial model was developed by Tetra Tech using the estimated grade values and test work results as reported by MMI and PRA, who conducted the metallurgical tests. Additionally, Tetra Tech investigated gravity separation, flotation, cyanide leach, carbon-in-pulp (CIP), and heap leach processing options. Using the recoveries and process conditions resulting from these tests, the capital costs to construct a processing plant using selected process options were developed while the operating costs associated with each option were determined and a financial model compiled. A heap leach operation with a four-year mine life indicated the best financial alternative.   13.4 Sulphide Tailings   Avino is not conducting mining activity on the sulphide tailings. No mineral processing methods or metallurgical testing is underway or proposed for the sulphide tailings.       Avino Silver & Gold Mines Ltd. 13-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  14.0 MINERAL RESOURCE ESTIMATES   14.1 Resource Summary   The following tables provide a synopsis of the reported mineral resources reported in this section. Table 14.1 summarizes the base case values for all current mineral resources on the Property. A more detailed summary is also provided for the Avino vein (Avino vein and cross-cutting vein in Table 14.2) and the San Gonzalo vein (San Gonzalo vein and Angelica vein in Table 14.3). The reporting cut-off for the Avino vein is 100 g/t Ag_Eq and the cut-off for the San Gonzalo vein is 150 g/t Ag_Eq. These cut-offs were determined by Avino based on actual mining scenarios and a silver price of $20/oz. Current cut-offs used for financial projections by Avino, based on recent market prices, include 80 g/t for the Avino vein and 120 g/t for the San Gonzalo vein.   The reporting cut-off for the oxide tailings is 50 g/t silver; Ag_Eq values were not calculated for the oxide tailings.   No mineral resource for the sulphide tailings is disclosed in this technical report.     Avino Silver & Gold Mines Ltd. 14-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.1  Summary of Mineral Resources, Avino Mine           Contained Metal Grade Resource Category Deposit Cut-off Ag_Eq* Tonnes Ag_Eq (oz) Ag (oz) Au (oz) Cu (t) Ag_Eq (g/t) Ag (g/t) Au (g/t) Cu (%) Measured San Gonzalo Vein 150 71,416 914,791 759,801 3,288 N/A 398 331 1.432 N/A Total Measured - All Deposits - 71,416 914,791 759,801 3,288 N/A - - - - Indicated Avino Vein 100 4,253,968 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727 Indicated San Gonzalo Vein 150 222,407 2,763,069 2,043,514 15,263 N/A 386 286 2.134 N/A Total Indicated - All Deposits - 4,476,375 26,601,698 12,878,852 87,470 30,914 - - - - Inferred Avino Vein 100 3,220,896 16,262,944 7,068,831 75,858 17,719 157 68.3 0.733 0.55 Inferred San Gonzalo Vein 150 1,085,276 10,494,843 8,158,834 49,549 N/A 300.8 233.8 1.42 N/A Inferred Oxide Tailings 50* 2,340,000 N/A 6,660,000 39,530 N/A N/A 91.3 0.54 N/A Total Inferred - All Deposits - 6,646,172 26,757,787 21,887,665 164,937 17,719 - - - - Note: *Ag_Eq not calculated for the oxide tailings resource; cut-off in g/t Ag.   Table 14.2  Avino Vein Mineral Resource             Metal Grade Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Ag_Eq (oz) Ag (oz) Au (oz) Cu (t) Ag_Eq (g/t) Ag (g/t) Au (g/t) Cu (%) Indicated 50 3,156,176 8,485,813 2.689 33,698,095 14,645,088 105,279 45,384 123.5 53.7 0.386 0.535   80 2,113,760 5,673,771 2.684 27,938,365 12,390,900 86,867 36,874 153.2 67.9 0.476 0.650   100 1,584,648 4,253,968 2.684 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727   150 863,528 2,327,430 2.695 16,205,941 7,697,377 46,408 20,369 216.6 102.9 0.620 0.875   200 405,792 1,105,097 2.723 9,474,178 4,522,283 27,828 11,718 266.7 127.3 0.783 1.060   250 218,048 596,569 2.736 5,820,374 2,792,304 16,552 7,243 303.5 145.6 0.863 1.214 Inferred 50 3,316,272 8,982,925 2.709 29,258,352 12,407,216 130,031 33,978 101.3 43.0 0.450 0.378   80 1,742,616 4,710,633 2.703 20,488,097 8,718,189 97,196 22,668 135.3 57.6 0.642 0.481   100 1,193,320 3,220,896 2.699 16,262,944 7,068,831 75,858 17,719 157.0 68.3 0.733 0.550   150 519,704 1,399,366 2.693 8,967,681 4,229,254 29,878 10,670 199.3 94.0 0.664 0.763   200 204,560 552,562 2.701 4,338,265 2,289,307 7,375 5,539 244.2 128.9 0.415 1.002   250 71,344 195,258 2.737 1,802,917 1,022,743 2,284 2,197 287.2 162.9 0.364 1.125     Avino Silver & Gold Mines Ltd. 14-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.3   San Gonzalo Vein Mineral Resource             Metal Grade Resource Category Ag_Eq Cut-off Volume (m3) Tonnes Density Ag_Eq (oz) Ag (oz) Au (oz) Ag_Eq (g/t) Ag (g/t) Au (g/t) Measured and 50 163,400 425,764 2.606 4,076,578 3,124,273 20,199 297.8 228.2 1.476 Indicated 100 134,112 349,348 2.605 3,901,468 2,987,063 19,396 347.4 265.9 1.727   120 126,688 329,323 2.599 3,830,639 2,927,804 19,150 361.8 276.5 1.809   150 113,264 293,822 2.594 3,677,861 2,803,315 18,550 389.3 296.8 1.964   200 89,704 231,583 2.582 3,325,495 2,528,182 16,912 446.6 339.6 2.271   250 76,672 197,530 2.576 3,079,688 2,339,140 15,708 484.9 368.3 2.473 Inferred 50 560,128 1,476,184 2.635 11,899,790 9,281,947 55,527 250.7 195.6 1.170   100 512,920 1,352,355 2.637 11,615,072 9,055,601 54,289 267.1 208.3 1.249   120 488,944 1,289,240 2.637 11,391,021 8,880,117 53,259 274.8 214.2 1.285   150 412,200 1,085,276 2.633 10,494,843 8,158,834 49,549 300.8 233.8 1.420   200 296,232 779,484 2.631 8,811,481 6,824,184 42,153 351.6 272.3 1.682   250 209,536 551,401 2.632 7,148,532 5,508,613 34,785 403.2 310.7 1.962     Avino Silver & Gold Mines Ltd. 14-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.2 Data   Drillhole data for the Avino and San Gonzalo resource estimates was supplied by Avino to Tetra Tech, who verified and compiled it into .csv files (see Section 12.1).  Wireframes (.dxf files) of the topography and an out-of-date model of the San Gonzalo vein were also supplied by Avino.  Drillhole data was imported into Datamine™ software (version 3.20.6140.0) and subsequently verified by standard internal Datamine™ processes.  These .csv files contain collar, survey, logging and assay data collected by Avino and collated and confirmed by Tetra Tech.  Data includes underground face sampling, reverse circulation (RC), and diamond drill core.  Most samples were obtained from diamond drill core.   Wireframes supplied by Avino assisted in modelling the deposit.  These wireframes were imported and verified in Datamine™ software prior to implementation into the block model.  These wireframes include, but are not limited to:   ·   surface topography   ·   San Gonzalo vein (last updated in 2007).   Additional wireframes were created by Tetra Tech based on cross-section and plan view images (provided by Avino) of the Avino, San Gonzalo, and Angelica veins, as well as the underground workings of both the Avino and San Gonzalo mines. These images included geological interpretations of the position and extent on individual mineralized veins. These were also imported into Datamine™ software, but were, in this situation, used as a guide in developing an independent interpretation by Tetra Tech of the main zones of mineralization for the resource estimate.   14.3 Avino Vein   14.3.1 Geological Interpretation   The Avino vein was separated into two geological units; a relatively continuous mineralized vein system, and a zone of surrounding mineralized breccia.   14.3.2 Wireframing   The Avino vein and the surrounding system are interpreted as part of a low- to intermediate-sulphidation system of silver-gold epithermal veins, breccias, stockworks, and silicified zones. This interpretation was applied in the modeling described below.   Solid wireframe models of the main mineralized lithologies were created in Datamine Studio 3™ (version 3.21.7164). Drillhole data received from Avino was imported from comma-separated-values (.csv) tables containing collar, assay, lithology, and downhole survey data. A digital terrain model (DTM) was created from a contour map provided by Avino. In addition to this, a geology plan map and drill sections were provided by Avino.     Avino Silver & Gold Mines Ltd. 14-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               This data, combined with the wireframe model of the underground workings, was utilized in the creation of the grade domains.   For the main Avino vein, drillhole lithologies, sectional and plan geological maps, and modeled underground workings were sufficient to model the mineralized zone.  A halo of higher-grade material was noted adjacent to the Avino vein lithology.  This was frequently logged as a quartz stockwork or breccia.  It is inferred, based on geometry, that this material would have been mined with the Avino vein in the previously mined material.  This material was also modeled separately from the Avino vein at depth using the available drillhole data.  In some instances, material was included or excluded in this model based on assay grade and not lithology.  A secondary vein, which is noted at surface and in the upper mining areas to cross-cut the main Avino vein, was also modeled.  Similarly to the quartz stockwork zone, this vein was in some instances modeled based on grade as opposed to lithology.   Table 14.4 displays the parameters of the Avino vein solid wireframe models.  Figure 14.1 displays the modeling results graphically.   Table 14.4 Avino Vein Solid Wireframe Model Parameters   Designation Strike (°) Dip (°) Strike Length (m) Down-dip Extension (m) Width (m) Main Avino Vein ~70 (E-NE) -65 to -70 ~1,300 ~550 ~10 to 20 (up to 40) Quartz Stockwork/Breccia ~70 (E-NE) -65 to -68 ~1,050 up to ~350 Variable (0 to 30) Avino Cross-cut Vein ~100 (E-SE) -56 to -45 ~700 ~450 ~4 to 10     Avino Silver & Gold Mines Ltd. 14-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.1 3D Perspective View of the Avino Solid Wireframe Models       Note: Looking down to the west-northwest.  Main Avino vein in red, quartz stockwork/breccia in blue, Avino cross-cut vein in pink, underground mine workings in green, topography in light yellow transparent mesh, and drillhole traces.   To test the validity of these models, and to determine the ideal method for treating the wireframe boundaries, contact profiles were generated, and are discussed in Section 14.2.3.   14.3.3   Contact Profiles   Contact profiles were generated to test the validity of the wireframe models and to determine the ideal method for treating wireframe boundaries.  The mineralized domains displayed strong, hard contacts with the wallrock in silver and copper profiles (as shown in Figure 14.2).  Note that in this figure, elevated silver values appear at distances greater than 15 m from the contact; this is not because the wallrock contains abundant silver at this distance, but rather that this far away from the main vein only mineralization (and not all barren material) is sampled.  The contacts of gold mineralisation are softer than silver, but average grade data still showed that the populations were clearly statistically distinct.  Between the main Avino vein and the adjacent/surrounding mineralized quartz stockwork/breccia, the silver and copper contacts were slightly softer     Avino Silver & Gold Mines Ltd. 14-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               (Figure 14.3), though still mostly acting as a hard boundary. As these two units are geologically distinctive (vein versus breccia), they were treated as a hard boundary for grade interpolation.  All contacts between mineralized and wallrock populations were treated as hard boundaries in estimation.   Figure 14.2 Contact Profile between Main Avino Vein and Wallrock for Silver         Avino Silver & Gold Mines Ltd. 14-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.3 Contact Profile between Avino Vein and Quartz Breccia/Stockwork for Silver     14.4   San Gonzalo Vein     14.4.1   Geological Interpretation   The San Gonzalo vein, like the Avino vein, represents a geologically continuous mineralized vein system. Unlike the Avino vein, the San Gonzalo vein does not have a notable contiguous breccia envelope.   14.4.2   Wireframing   The San Gonzalo vein and the surrounding system is interpreted as part of a low- to intermediate-sulphidation system of silver-gold epithermal veins, breccias, stockworks, and silicified zones.  This interpretation was applied in the modeling described below.   Solid wireframe models of the main mineralized lithologies were created in Datamine Studio 3™.  Drillhole data from Avino was imported from .csv tables containing collar, assay, lithology, and downhole survey data.  A DTM was created from a contour map provided by Avino.  In addition to this, drill sections were provided by Avino.  This data, combined with the wireframe model of the underground workings, was utilized in the creation of the grade domains.     Avino Silver & Gold Mines Ltd. 14-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               For the main San Gonzalo vein, drillhole lithologies and assay grades, sectional geological maps, and modeled underground workings were used to model the mineralized zone.  A secondary vein, the Angelica vein, which is noted in the upper mining areas to cross-cut the main San Gonzalo vein, was also modeled using the same information as that applied to the main San Gonzalo vein.   Table 14.5 displays the parameters of the San Gonzalo vein solid wireframe models.  Figure 14.4 displays the modeling results graphically.   Table 14.5 San Gonzalo Vein Solid Wireframe Model Parameters   Designation Strike (°) Dip (°) Strike Length (m) Down-dip Extension (m) Width (m) Main San Gonzalo Vein ~295 (W-NW) to ~320 (NW) -73 to -80 ~700 ~450 ~2 to 8 Angelica Cross-cut Vein ~100 (E-SE) -80 ~350 ~220 ~1 to 8       Avino Silver & Gold Mines Ltd. 14-9 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.4 3D Perspective View of the San Gonzalo Solid Wireframe Models       Note: Looking down to the east-northeast.  Main San Gonzalo vein in red, Angelica vein in blue, underground mine workings in green, topography in light yellow transparent mesh, and drillhole traces.   To test the validity of these models, contact profiles were generated and are discussed in Section 14.3.3.   14.4.3   Contact Profiles   Contact profiles were generated to test the validity of the wireframe models and to determine the ideal method for treating wireframe boundaries. The mineralized domains displayed strong, hard contacts with the wallrock in silver and copper profiles, with only slight to moderate increases approaching the contact (as evidenced in Figure 14.5). For gold the contacts were less conspicuous, but average grade data still showed that the populations were statistically distinct. All contacts between mineralized and wallrock populations were treated as hard boundaries in estimation.     Avino Silver & Gold Mines Ltd. 14-10 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.5 Contact Profile between Main San Gonzalo Vein and Wallrock for Silver     14.5   Exploratory Data Analysis   14.5.1   Raw Data Assays and Statistics   Avino   Table 14.6 tabulates the raw drillhole assay and length statistics for the Avino mineralization. They are tabulated as a total and also by domain. Assayed metals include silver, gold, copper, zinc, and lead. Metals considered in the Avino resource estimate include silver, gold, and copper.   In general, statistics indicate that the mineralization at Avino belongs to a single grade population; regardless of domains.     Avino Silver & Gold Mines Ltd. 14-11 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               San Gonzalo   Table 14.7 tabulates the raw drillhole assay and length statistics for the San Gonzalo mineralization. It is tabulated as a total and also by domain (4 and 5). Assayed metals considered in the San Gonzalo resource estimate include silver, gold, copper, zinc, and lead. Unlike Avino, San Gonzalo data includes face samples (4f) in domain 4. Data without face samples are also presented (4dh).                 Avino Silver & Gold Mines Ltd. 14-12 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.6 Avino Raw Data Statistics   Domain Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis 1, 2 and 3 Ag_gt 1,623 1,592 0 1811.3 37.06 6441.29 80.26 2.01 10.99 188.97 Au_gt 1,623 1,592 0 48.054 0.2625 2.3509 1.5333 0.0384 23.65 665.57 Cu_pct 1,623 1,592 0.0009 10.31 0.4014 0.5080 0.7127 0.0179 6.8924 73.2701 Zn_pct 1,623 1,592 0 2.5 0.0733 0.0194 0.1391 0.0035 9.8863 136.0172 Pb_pct 1,623 1,592 0 2.28 0.0412 0.0155 0.1245 0.0031 8.9404 115.6834 LENGTH 1,623 1,623 0.04 16.4 1.2448 0.6792 0.8241 0.0205 9.2797 134.3613 1 Ag_gt 767 767 0.3 1811.3 52.41 10188.52 100.9382 3.6447 9.5419 137.14 Au_gt 767 767 0.0025 48.054 0.3630 4.6337 2.1526 0.0777 17.53 350.7454 Cu_pct 767 767 0.0021 10.02 0.5788 0.6893 0.8302 0.0300 5.4219 46.8048 Zn_pct 767 767 0 2.5 0.0902 0.0332 0.1822 0.0066 8.6847 91.4761 Pb_pct 767 767 0 2.28 0.0596 0.0258 0.1606 0.0058 7.4944 77.6199 LENGTH 767 767 0.05 2.5 1.2946 0.1337 0.3657 0.0132 -1.5445 1.9204 2 Ag_gt 749 725 0 1034.9 21.20 2506.68 50.07 1.8594 13.29 241.98 Au_gt 749 725 0 4.31 0.1402 0.1339 0.3660 0.0136 6.9956 62.7635 Cu_pct 749 725 0.0009 10.31 0.2537 0.3185 0.5643 0.0210 10.8615 162.9471 Zn_pct 749 725 0 0.678 0.0569 0.0057 0.0753 0.0028 2.6637 11.0782 Pb_pct 749 725 0 1.21 0.0231 0.0056 0.0751 0.0028 8.8347 107.9050 LENGTH 749 749 0.04 13.7 1.1924 0.8858 0.9412 0.0344 7.6261 80.3417 3 Ag_gt 107 100 0.6 271.1 34.36 2586.09 50.85 5.0854 2.8984 9.0494 Au_gt 107 100 0.0025 6.72 0.3777 0.7153 0.8458 0.0846 5.0857 31.5475 Cu_pct 107 100 0.0025 0.6228 0.1119 0.0083 0.0912 0.0091 2.5720 9.3318 Zn_pct 107 100 0.0021 0.589 0.0614 0.0083 0.0911 0.0091 3.1453 11.7254 Pb_pct 107 100 0.001 0.2726 0.0321 0.0027 0.0522 0.0052 2.8027 8.2988 LENGTH 107 107 0.05 16.4 1.2551 3.1064 1.7625 0.1704 6.4956 49.9188     Avino Silver & Gold Mines Ltd. 14-13 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Domain Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis 4 and 5 Ag_gt 3,535 3,426 0 14,768.4 243.1 503,925 709.877 12.128 9.504 129.2 Au_gt 3,535 3,426 0.0025 185.2 1.0224 20.188 4.493 0.077 26.12 925.8 Cu_pct 3,535 3,426 0.00005 4.1 0.0513 0.021 0.144 0.002 15.69 356.6 Zn_pct 3,535 3,426 0.0068 35.5 0.5744 2.351 1.533 0.026 9.003 126.8 Pb_pct 3,535 3,426 0.000411 14.6 0.3361 0.742 0.862 0.015 6.890 66.01 LENGTH 3,535 3,535 0 10.2 0.6847 0.154 0.392 0.007 10.33 206.2 4 Ag_gt 3,143 3,038 0 14,768.4 251.3 531,849 729 13.231 9.5 128.2 Au_gt 3,143 3,038 0.0025 185.2 1.0861 22.5583 4.7496 0.0862 24.9 834.5 Cu_pct 3,143 3,038 0.00005 3.74 0.0450 0.0131 0.1144 0.0021 16.1 420.2 Zn_pct 3,143 3,038 0.0068 35.5 0.5422 2.4206 1.5558 0.0282 9.38 133.5 Pb_pct 3,143 3,038 0.000411 14.6 0.3477 0.8133 0.9018 0.0164 6.68 61.26 LENGTH 3,143 3,143 0 10.2 0.6795 0.1611 0.4014 0.0072 10.8 211.0 5 Ag_gt 390 386 0.25 5,523 179 282,065 531 27.03 7.427 62.37 Au_gt 389 385 0.005 16.320 0.516 1.333 1.154 0.059 8.839 104.139 Cu_pct 390 386 0.0013 4.1 0.0998 0.0786 0.2804 0.0143 9.963 122.8 Zn_pct 390 386 0.0103 13.14 0.8194 1.7101 1.3077 0.0666 4.723 30.99 Pb_pct 390 386 0.0039 4.7 0.2451 0.1770 0.4208 0.0214 5.093 38.29 LENGTH 390 390 0.05 1.75 0.7269 0.0912 0.3019 0.0153 0.6512 0.3156 4dh Ag_gt 273 264 0 3,623 168 129,852 360 22.18 5.32 38.33 Au_gt 273 264 0.0025 24.85 1.2209 9.7298 3.1193 0.1920 5.26 31.06 Cu_pct 273 264 0.0005 3.74 0.0703 0.0689 0.2625 0.0162 10.97 143.7 Zn_pct 273 264 0.0068 35.5 0.9054 10.3085 3.2107 0.1976 7.47 64.79 Pb_pct 273 264 0.0008 14.6 0.5291 2.6907 1.6403 0.1010 5.46 33.57 LENGTH 273 273 0.2 10.2 0.9539 1.0553 1.0273 0.0622 6.48 46.90 table continues…     Avino Silver & Gold Mines Ltd. 14-14 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Domain Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis 4f Ag_gt 2,880 2,782 0.05 14,768 257 566,454 753 14.27 9.3466 122.5   Au_gt 2,880 2,782 0.0025 185.2 1.0331 23.55 4.8532 0.09 25.35 836.4   Cu_pct 2,880 2,782 0.00005 4.1 0.0502 0.0182 0.1350 0.0026 15.75 372.8   Zn_pct 2,880 2,782 0.007 15.49 0.5682 1.7476 1.3220 0.0251 6.1940 47.62   Pb_pct 2,880 2,782 0.000411 11.72 0.3236 0.5981 0.7734 0.0147 6.0065 49.05   LENGTH 2,880 2,880 0 2 0.6611 0.0692 0.2630 0.0049 0.9094 1.3655           Avino Silver & Gold Mines Ltd. 14-15 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.5.2 Outlier Management and Capping Strategy   When dealing with skewed populations, as well as outliers to the distribution, it is common practice in the industry to restrict the influence of high assays through “top-cutting” or “capping”. Capping was implemented on the raw assay data prior to sample length compositing. Capping limits were chosen as a function of the continuity-discontinuity of the high-grade “tail” of the metals histograms.   Avino and San Gonzalo mineralization are geographically separated. Thus, for the purposes of capping, they are considered separately. The following histograms form the basis for the capping strategy.   Avino   The high-grade “tail” population of length-weighted sample assays forms a cohesive group until just over 250 g/t silver. Afterwards, the population becomes increasing irregular. Thus, it was considered that samples are capped at 700 g/t silver (Figure 14.6).           Avino Silver & Gold Mines Ltd. 14-16 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.6 Avino Vein Silver Histogram           Avino Silver & Gold Mines Ltd. 14-17 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The Avino vein gold histogram high-grade “tail” clearly disaggregates just above 9 g/t (Figure 14.7).  Thus, a gold cap of 9 g/t was applied to the data.   Figure 14.7 Avino Vein Gold Histogram         Avino Silver & Gold Mines Ltd. 14-18 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Similarly, the copper histogram high-grade “tail” disengages immediately above 6% copper (6,000 ppm) (Figure 14.8).  Thus, a cap was applied at 6% for copper.   Figure 14.8 Avino Vein Copper Histogram         Avino Silver & Gold Mines Ltd. 14-19 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               San Gonzalo   The San Gonzalo mineralization was estimated for both zinc and lead as well as copper, gold and silver.  Unlike the Avino vein drillhole sample population, the San Gonzalo vein also has a significant number of underground face samples in the main San Gonzalo vein (domain 4).  As shown in Table 14.8, face samples were included in the capping strategy as there are an order of magnitude more face samples than drillhole samples in the dataset.  Statistics indicate datasets are comparable.   Table 14.8 Drillhole Sample Statistics in Comparison with Face Sample Statistics for San Gonzalo Vein   Type Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Skewness Kurtosis DDH Ag_gt 273 264 0 3,623 168.2 129,852 360.3 5.319 38.334 Au_gt 273 264 0.003 24.85 1.221 9.730 3.119 5.258 31.057 Cu_pct 273 264 0.001 3.740 0.070 0.069 0.263 10.97 143.70 Zn_pct 273 264 0.007 35.500 0.905 10.308 3.211 7.470 64.788 Pb_pct 273 264 0.001 14.600 0.529 2.691 1.640 5.464 33.569 Face Ag_gt 3,196 3,098 0.050 14,768 249.1 534,459 731.1 9.432 125.7 Au_gt 3,196 3,098 0.003 185.2 1.009 21.373 4.623 26.36 913.0 Cu_pct 3,196 3,098 0.000 4.100 0.049 0.017 0.130 16.04 394.436 Zn_pct 3,196 3,098 0.007 15.490 0.548 1.698 1.303 6.353 49.884 Pb_pct 3,196 3,098 0.000 11.720 0.321 0.586 0.765 6.042 49.455   Note:  DDH = diamond drillhole   Table 14.9 summarizes the interrogations of histograms used to define the capping levels in the San Gonzalo vein.   Table 14.9 Capping Summary for San Gonzalo     Silver Gold Copper Zinc Lead Number of Samples 3,423 3,423 3,423 3,423 3,423 Maximum 14,768 185.2 4.1 1.5 14.6 Average 243.1 1.022 0.051 0.573 0.336 Cap Limit 6,000 17 1.5 16 6.5 Number of Capped Samples 7 16 5 3 12 Percentage Affected (%) 0.20 0.47 0.15 0.09 0.35 Capped Average 233.8 0.883 0.049 0.564 0.327   Figure 14.9 to Figure 14.13 illustrates the San Gonzalo silver, gold, copper, zinc, and lead histograms.     Avino Silver & Gold Mines Ltd. 14-20 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.9 Silver Histogram San Gonzalo       Avino Silver & Gold Mines Ltd. 14-21 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.10 Gold Histogram San Gonzalo       Avino Silver & Gold Mines Ltd. 14-22 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.11 Copper Histogram San Gonzalo       Avino Silver & Gold Mines Ltd. 14-23 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.12 Zinc Histogram San Gonzalo       Avino Silver & Gold Mines Ltd. 14-24 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.13 Lead Histogram San Gonzalo     14.5.3   Drillhole Compositing   Compositing of drillholes to a common length occurred after data was capped.  Inspection of the raw data indicated that a common composite length of 2 m would accommodate most sample lengths as the vast majority of sample lengths were less than 2 m.  Thus 2 m was used as the standard composite length for the deposit.  This also averages the data and provides a “smoother” dataset for estimation.  Compositing in Datamine™ employed mode=1 which forces all samples to be included in one of the composites by adjusting the composite length while keeping as close to the nominated interval (2 m).  By doing so, no small sample lengths were excluded from the estimate.  Datamine™ also honoured domain boundaries by utilizing the zone field.  New composites were thus created each time the domain changed.     Avino Silver & Gold Mines Ltd. 14-25 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Avino     Figure 14.14 Avino Sample Length – Raw Data     Avino Silver & Gold Mines Ltd. 14-26 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.15 Avino Sample Length – 2 m Composited Data     San Gonzalo     Figure 14.16 Length Histogram – San Gonzalo Raw Data     Avino Silver & Gold Mines Ltd. 14-27 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.17 Length Histogram – San Gonzalo 2 m Composite     14.5.4   Composite Statistics   The drillhole composite and capped statistics by domain are shown in Table 14.10 and Table 14.11.     Avino Silver & Gold Mines Ltd. 14-28 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.10 Avino Drillhole Composite and Capped Statistics   Domain Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Skewness Kurtosis 1 Ag_gt 964 500 0.513 610.85 47.92 3,682.9 60.69 3.687 21.303 Au_gt 964 500 0.003 7.293 0.281 0.491 0.701 6.262 48.376 Cu_pct 964 500 0.003 5.012 0.557 0.388 0.623 2.741 11.758 LENGTH 964 500 1.850 2.129 1.986 0.002 0.045 0.306 1.779 2 Ag_gt 964 410 0.065 423.80 21.70 1,390.0 37.28 7.159 67.945 Au_gt 964 410 0.000 2.480 0.141 0.085 0.291 4.456 23.719 Cu_pct 964 410 0.002 2.396 0.231 0.070 0.265 3.080 16.232 LENGTH 964 410 1.050 2.600 1.980 0.016 0.127 -1.933 13.665 3 Ag_gt 964 54 2.361 230.09 30.01 1,506.1 38.81 3.258 12.125 Au_gt 964 54 0.008 5.487 0.396 0.626 0.791 5.042 28.937 Cu_pct 964 54 0.035 0.397 0.111 0.005 0.071 2.090 4.750 LENGTH 964 54 1.600 2.200 1.919 0.011 0.107 -1.094 1.996   Avino Silver & Gold Mines Ltd. 14-29 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.11 San Gonzalo Drillhole Composite and Capped Statistics   Domain Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Skewness Kurtosis 4 Ag_gt 1,117 985 2.207 4,188.7 226.271 149,739 386.961 4.648 30.554 Au_gt 1,117 985 0.004 15.505 0.914 2.276 1.509 4.769 30.140 Cu_pct 1,117 985 0.000 0.736 0.042 0.004 0.059 4.829 35.759 Pb_pct 1,117 985 0.002 6.500 0.339 0.381 0.617 4.762 30.914 Zn_pct 1,117 985 0.009 14.300 0.536 1.118 1.057 6.335 60.027 LENGTH 1,117 985 1.000 3.000 2.052 0.212 0.460 0.142 -0.876 5 Ag_gt 1,117 132 1.400 2,801.4 157.788 113,252 336.530 5.880 38.819 Au_gt 1,117 132 0.024 9.842 0.481 0.862 0.928 8.109 76.424 Cu_pct 1,117 132 0.002 0.885 0.087 0.017 0.132 4.175 20.220 Pb_pct 1,117 132 0.012 1.493 0.219 0.061 0.248 2.403 6.269 Zn_pct 1,117 132 0.012 4.980 0.752 0.802 0.895 2.546 7.570 LENGTH 1,117 132 1.050 2.950 2.056 0.161 0.401 -0.157 -0.140     Avino Silver & Gold Mines Ltd. 14-30 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.6   Density   14.6.1   Density Statistics and Spatial Analysis   Density data was supplied by Avino in the form of a set of measurements conducted at site.  Summary statistics for these measurements are provided in Table 14.12 and Table 14.13.     Table 14.12 Avino Density Summary Statistics   Domain Number Minimum Maximum Mean Variance Standard Deviation Coefficient of Variance 1 40 2.530 3.000 2.708 0.019 0.138 0.051 2 42 2.430 2.900 2.678 0.007 0.086 0.032 9 93 2.290 3.000 2.646 0.037 0.193 0.073 Combined 175 2.290 3.000 2.668 0.026 0.163 0.061     Table 14.13 San Gonzalo Density Summary Statistics   Domain Number Minimum Maximum Mean Variance Standard Deviation Coefficient of Variance 4 50 2.400 3.000 2.641 0.034 0.186 0.070 5 2 2.730 2.780 2.755 0.001 0.035 0.013 9 41 2.400 3.000 2.693 0.017 0.130 0.048 Combined 93 2.400 3.000 2.668 0.026 0.161 0.060   14.6.2   Density Interpolation Plan   Density was estimated in the domain cells by OK, inverse distance (ID) and nearest neighbor (NN).  Cells that were not successfully interpolated by OK were assigned the ID or NN interpolation density respectively.  Any cells that could not be interpolated were assigned the average density of 2.73.  This assigned density represents the average value of interpolated cells.   Avino   Variography was performed for density, as depicted in Figure 14.18.  Table 14.14 to Table 14.17 represent the parameter files used for density interpolation in domains 1, 2 and 3.   Results for density estimation by method (OK, ID, NN) are shown in Table 14.14 to Table 14.17.  Approximately 52% of the mineralized domain cells were successfully interpolated.  The remaining cells were assigned the average OK density of 2.71.  Note that the tables below correspond to regularized cells (10 m3).  No statistics were undertaken on sub-celled models.     Avino Silver & Gold Mines Ltd. 14-31 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.18 Avino Density Variogram     Avino Silver & Gold Mines Ltd. 14-32 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.14 Avino Density Estimation Parameter File   EDESC VALUE_IN VALUE_OU NUMSAM_F SVOL_F SREFNUM IMETHOD POWER ADDCON VREFNUM KRIGNEGW av_sg density sg_ok sg_num sg_vol 1 3 - 0 1 0 av_sg density sg_id     1 2 2 0 - 0 av_sg density sg_nn     1 1 - 0 - 0     Table 14.15 Avino Density Search and Sample Parameter File   SDESC SREFNUM SMETHOD SDIST1 SDIST2 SDIST3 SANGLE1 SANGLE2 SANGLE3 SAXIS1 SAXIS2 SAXIS3 av_sg 1 2 67 67 67 0 0 0 3 1 3 SDESC MINNUM1 MAXNUM1 SVOLFAC2 MINNUM2 MAXNUM2 SVOLFAC3 MINNUM3 MAXNUM3 MAXKEY     av_sg 9 12 2 6 10 3 6 10 3       Table 14.16 Avino Density Variogram Parameter File   VREFNUM VDESC VANGLE1 VANGLE2 VANGLE3 VAXIS1 VAXIS2 VAXIS3 NUGGET   1 av_sg 0 0 0 0 0 0 0.1   ST1 ST1PAR1 ST1PAR2 ST1PAR3 ST1PAR4 ST2 ST2PAR1 ST2PAR2 ST2PAR3 ST2PAR4 1 27 27 27 0.755 1 67 67 67 0.145     Avino Silver & Gold Mines Ltd. 14-33 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.17 Avino Density Interpolation by Method   FIELD NRECORDS MINIMUM MAXIMUM MEAN VARIANCE STANDDEV STANDERR SKEWNESS KURTOSIS sg_ok 13,069 2.483 2.919 2.708 0.002 0.043 0.000 -0.452 0.607 sg_id 13,069 2.433 2.995 2.713 0.006 0.075 0.001 0.215 0.947 sg_nn 13,069 2.430 3.000 2.723 0.020 0.141 0.001 0.617 -0.411             Avino Silver & Gold Mines Ltd. 14-34 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               San Gonzalo   Variography was performed for density, as depicted in Figure 14.19.  Table 14.18 to Table 14.21 represent the parameter files used for density interpolation in domains 4 and 5.   Results for density estimation by method (OK, ID, NN) are provided in Table 14.18 to Table 14.21.  All of the mineralized domain cells were successfully interpolated.  The average OK and ID density recorded the value of 2.62.  Note that the tables below corresponds to regularized cells (10 m3).  No statistics were undertaken on sub-celled models.     Figure 14.19 San Gonzalo Density Variogram       Table 14.18 San Gonzalo Density Estimation Parameter File   EDESC VALUE_IN VALUE_OU SREFNUM IMETHOD POWER VREFNUM KRIGNEGW DOMAIN sg_ok density sg_ok 1 3 - 1 0 4 sg_id density sg_id 1 2 2 - 0 4 sg_nn density sg_nn 1 1 - - 0 4 sg_ok density sg_ok 1 3 - 1 0 5 sg_id density sg_id 1 2 2 - 0 5 sg_nn density sg_nn 1 1 - - 0 5     Avino Silver & Gold Mines Ltd. 14-35 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.19 San Gonzalo Search and Sample Parameter File   SDESC SREFNUM SMETHOD SDIST1 SDIST2 SDIST3 SANGLE1 SANGLE2 SANGLE3 SAXIS1 SAXIS2 SAXIS3 density 1 2 74 74 74 0 0 0 3 2 1 SDESC SREFNUM MINNUM1 MAXNUM1 SVOLFAC2 MINNUM2 MAXNUM2 SVOLFAC3 MINNUM3 MAXNUM3 MAXKEY   density 1 8 12 2 8 12 4 8 12 3     Table 14.20 San Gonzalo Variogram Parameter File   VREFNUM VDESC VANGLE1 VANGLE2 VANGLE3 VAXIS1 VAXIS2 VAXIS3 1 density 0 0 0 3 2 1 VREFNUM VDESC NUGGET ST1 ST1PAR1 ST1PAR2 ST1PAR3 ST1PAR4 1 density 0.027 1 74 74 75 0.973   Table 14.21 San Gonzalo Density Interpolation by Method   FIELD NRECORDS MINIMUM MAXIMUM MEAN VARIANCE STANDDEV STANDERR SKEWNESS KURTOSIS sg_ok 3,975 2.406 2.984 2.622 0.007 0.083 0.001 1.160 2.659 sg_id 3,975 2.402 2.987 2.624 0.008 0.088 0.001 0.871 1.608 sg_nn 3,975 2.400 3.000 2.650 0.026 0.161 0.003 0.269 -0.559     Avino Silver & Gold Mines Ltd. 14-36 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.7   Variography and Spatial Analysis   Variography was conducted utilizing Datamine™ software.  The precise orientation of the domains (strike and dip) was first calculated, and experimental variograms constructed on the basis of a sequence of 30° rotations around that plane.  The most robust of these six orientations were used in the final variogram parameter file.  Commonly, the downhole variogram, normally used for determining the nugget effect, was substituted for the shortest orientation (across the domain).   Avino   For the Avino vein, variography (both downhole and spatial) was performed on composited and capped drillhole data for combined domains 1 and 2, and domain 3.  Variograms were completed for silver, gold and copper.  Zinc and lead were not estimated in the Avino vein due to their low concentrations.  A complete list of variography is provided in Appendix B.  Figure 14.20 and Figure 14.21 are representative variograms.     Figure 14.20 Avino Gold Downhole Variography – Domains 1 and 2       Avino Silver & Gold Mines Ltd. 14-37 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.21 Avino Gold Variography – Domains 1 and 2     San Gonzalo   For the San Gonzalo vein, variography (both downhole and spatial) was performed on composited and capped drillhole data for combined domains 4 and 5. Variograms were completed for silver, gold, copper, zinc, and lead.  A complete list of variography is provided in Appendix C.  Figure 14.22 and Figure 14.23 are representative variograms.     Avino Silver & Gold Mines Ltd. 14-38 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.22 San Gonzalo Gold Downhole Variography – Domain 4       Figure 14.23 San Gonzalo Gold Variography – Domain 4       Avino Silver & Gold Mines Ltd. 14-39 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.8   Interpolation Plan and Kriging Parameters   For block model estimation in Datamine™ software, three separate parameter files are required: (1) estimation parameter file, (2) search and sample selection parameter file, and (3) variography parameter file.   14.8.1   Avino   For interpolating metal into the Avino vein, two separate estimations were conducted.  The first estimation interpolated all metals and honoured domains for all search passes.  The second estimation interpolated density.   Estimation Parameter File   Table 14.22 represents the estimation parameter file for Avino, including all domains.     Avino Silver & Gold Mines Ltd. 14-40 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.22 Avino_epar – Avino Estimation Parameter File   EDESC EREFNUM VALUE_IN VALUE_OU SREFNUM NUMSAM_F SVOL_F VAR_F MINDIS_F IMETHOD POWER VREFNUM MAXITER KRIGNEGW KRIGVARS DOMAIN ag_ok 1 Ag_gt ag_ok 1 numsam svol KV tdist 3 - 1 3 0 1 1 au_ok 2 Au_gt au_ok 2         3 - 2 3 0 1 1 cu_ok 3 Cu_pct cu_ok 3         3 - 3 3 0 1 1 ag_id 4 Ag_gt ag_id 1         2 2 - 3 0 1 1 au_id 5 Au_gt au_id 2         2 2 - 3 0 1 1 cu_id 6 Cu_pct cu_id 3         2 2 - 3 0 1 1 ag_nn 7 Ag_gt ag_nn 1         1 - - 3 0 1 1 au_nn 8 Au_gt au_nn 2         1 - - 3 0 1 1 cu_nn 9 Cu_pct cu_nn 3         1 - - 3 0 1 1 ag_f 10 Ag_gt ag_f 1         101 - 1 3 0 1 1 ag_lg 11 Ag_gt ag_lg 1         102 - 1 3 0 1 1 ag_ok 12 Ag_gt ag_ok 1 numsam svol KV tdist 3 - 1 3 0 1 2 au_ok 13 Au_gt au_ok 2         3 - 2 3 0 1 2 cu_ok 14 Cu_pct cu_ok 3         3 - 3 3 0 1 2 ag_id 15 Ag_gt ag_id 1         2 2 - 3 0 1 2 au_id 16 Au_gt au_id 2         2 2 - 3 0 1 2 cu_id 17 Cu_pct cu_id 3         2 2 - 3 0 1 2 ag_nn 18 Ag_gt ag_nn 1         1 - - 3 0 1 2 au_nn 19 Au_gt au_nn 2         1 - - 3 0 1 2 cu_nn 20 Cu_pct cu_nn 3         1 - - 3 0 1 2 ag_f 21 Ag_gt ag_f 1         101 - 1 3 0 1 2 ag_lg 22 Ag_gt ag_lg 1         102 - 1 3 0 1 2 ag_ok 23 Ag_gt ag_ok 4 numsam svol KV tdist 3 - 4 3 0 1 3 au_ok 24 Au_gt au_ok 5         3 - 5 3 0 1 3 cu_ok 25 Cu_pct cu_ok 6         3 - 6 3 0 1 3 table continues...     Avino Silver & Gold Mines Ltd. 14-41 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               EDESC EREFNUM VALUE_IN VALUE_OU SREFNUM NUMSAM_F SVOL_F VAR_F MINDIS_F IMETHOD POWER VREFNUM MAXITER KRIGNEGW KRIGVARS DOMAIN ag_id 26 Ag_gt ag_id 4         2 2 - 3 0 1 3 au_id 27 Au_gt au_id 5         2 2 - 3 0 1 3 cu_id 28 Cu_pct cu_id 6         2 2 - 3 0 1 3 ag_nn 29 Ag_gt ag_nn 4         1 - - 3 0 1 3 au_nn 30 Au_gt au_nn 5         1 - - 3 0 1 3 cu_nn 31 Cu_pct cu_nn 6         1 - - 3 0 1 3 ag_f 32 Ag_gt ag_f 4         101 - 4 3 0 1 3 ag_lg 33 Ag_gt ag_lg 4         102 - 4 3 0 1 3           Avino Silver & Gold Mines Ltd. 14-42 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Search and Sample Parameter File   The search orientation and distance corresponds to the orientation and maximum range of variography.  All Avino variograms are presented as Appendix B.   Table 14.23 Avino_spar – Search and Sample Parameter File (Domains 1, 2 and 3)   SDESC SREFNUM SMETHOD SDIST1 SDIST2 SDIST3 SANGLE1 SANGLE2 SANGLE3 SAXIS1 SAXIS2 SAXIS3 ag 1 2 55 56 9 -57.98 53.41 128.94 3 2 1 au 2 2 125 100 21 7.98 -53.41 -51.06 3 2 1 cu 3 2 14 43 11 245 68 180 3 2 1 ag_3 4 2 48 26 28 42.45 -34.89 -44.22 3 2 1 au_3 5 2 21 76 24 42.45 -34.89 -44.22 3 2 1 cu_3 6 2 17 12 2.8 42.45 -34.89 -44.22 3 2 1 SDESC SREFNUM MINNUM1 MAXNUM1 SVOLFAC2 MINNUM2 MAXNUM2 SVOLFAC3 MINNUM3 MAXNUM3 MAXKEY   ag 1 9 16 2 6 12 4 3 10 3   au 2 9 16 2 6 12 4 3 10 3   cu 3 9 16 2 6 12 4 3 10 3   ag_3 4 9 16 2 6 12 4 3 10 3   au_3 5 9 16 2 6 12 4 3 10 3   cu_3 6 9 16 2 6 12 4 3 10 3       Avino Silver & Gold Mines Ltd. 14-43 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Variogram Parameter File   Table 14.24 Avino_vpar - Avino (Variography Parameter File (Domains 1, 2 and 3)   VDESC VREFNUM VANGLE1 VANGLE2 VANGLE3 VAXIS1 VAXIS2 VAXIS3 NUGGET     ag 1 -57.98 53.41 128.94 3 2 1 0.146     au 2 7.98 -53.41 -51.06 3 2 1 0.095     cu 3 245 68 180 3 2 1 0.088     ag_3 4 42.45 -34.89 -44.22 3 2 1 0.13     au_3 5 42.45 -34.89 -44.22 3 2 1 0.205     cu_3 6 42.45 -34.89 -44.22 3 2 1 0.1     VREFNUM ST1 ST1PAR1 ST1PAR2 ST1PAR3 ST1PAR4 ST2 ST2PAR1 ST2PAR2 ST2PAR3 ST2PAR4 1 1 55 56 9 0.1 1 159 102 22 0.754 2 1 125 100 21 0.905 - - - - - 3 1 14 43 11 0.467 1 126 58 51 0.445 4 1 32 7 5 0.397 1 48 26 28 0.473 5 1 12 5 11 0.359 1 21 76 24 0.436 6 1 17 12 2.8 0.9 - - - - -     Avino Silver & Gold Mines Ltd. 14-44 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.8.2   San Gonzalo   Like Avino, the San Gonzalo estimation honoured domains as hard boundaries.  The first estimation interpolated metals, and a second separate estimation interpolated density in domain 4.  Density was assigned in domain 5 as the average of the domain 4 interpolation.   The following tables present the parameter files used in the San Gonzalo estimation.  They include the estimation parameter file (Table 14.25), the sample and search parameter file (Table 14.26), and the variography parameter file (Table 14.27).           Avino Silver & Gold Mines Ltd. 14-45 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Estimation Parameter File   Table 14.25 Sv_epar – Estimation Parameter File (Domains 4 and 5)   EDESC EREFNUM VALUE_IN VALUE_OU SREFNUM NUMSAM_F SVOL_F VAR_F MINDIS_F IMETHOD POWER VREFNUM MAXITER KRIGNEGW KRIGVARS DOMAIN ag_ok 1 Ag_gt ag_ok 1 numsam svolag KVAG tdist 3 2 1 3 0 1 4 au_ok 2 Au_gt au_ok 2   svolau KVAU   3 2 2 3 0 1 4 cu_ok 3 Cu_pct cu_ok 3         3 2 3 3 0 1 4 zn_ok 4 Zn_pct zn_ok 4         3 2 4 3 0 1 4 pb_ok 5 Pb_pct pb_ok 5         3 2 5 3 0 1 4 ag_nn 6 Ag_gt ag_nn 1         1 2 1 3 0 1 4 au_nn 7 Au_gt au_nn 2         1 2 2 3 0 1 4 cu_nn 8 Cu_pct cu_nn 3         1 2 3 3 0 1 4 zn_nn 9 Zn_pct zn_nn 4         1 2 4 3 0 1 4 pb_nn 10 Pb_pct pb_nn 5         1 2 5 3 0 1 4 ag_id 11 Ag_gt ag_id 1         2 2 1 3 0 1 4 au_id 12 Au_gt au_id 2         2 2 2 3 0 1 4 cu_id 13 Cu_pct cu_id 3         2 2 3 3 0 1 4 zn_id 14 Zn_pct zn_id 4         2 2 4 3 0 1 4 pb_id 15 Pb_pct pb_id 5         2 2 5 3 0 1 4 ag_f 16 Ag_gt ag_f 1         101 2 1 3 0 1 4 ag_lg 17 Au_gt ag_lg 1         102 2 1 3 0 1 4 au_f 18 Ag_gt au_f 1         101 2 1 3 0 1 4 au_lg 19 Au_gt au_lg 1         102 2 1 3 0 1 4 AgOK 1 Ag_gt ag_ok 1 NUMSAM SVOL KV TDIST 3 2 1 3 0 1 5 AgNN 2 Ag_gt ag_nn 1         1 2 1 3 0 1 5 AgID 3 Ag_gt ag_id 1         2 2 1 3 0 1 5 AgF 4 Ag_gt ag_f 1         101 2 1 3 0 1 5 AgLG 5 Ag_gt ag_lg 1         102 2 1 3 0 1 5 table continues…     Avino Silver & Gold Mines Ltd. 14-46 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               EDESC EREFNUM VALUE_IN VALUE_OU SREFNUM NUMSAM_F SVOL_F VAR_F MINDIS_F IMETHOD POWER VREFNUM MAXITER KRIGNEGW KRIGVARS DOMAIN AuOK 6 Au_gt au_ok 2         3 2 2 3 0 1 5 AuNN 7 Au_gt au_nn 2         1 2 2 3 0 1 5 AuID 8 Au_gt au_id 2         2 2 2 3 0 1 5 CuOK 9 Cu_pct cu_ok 3         3 2 3 3 0 1 5 CuNN 10 Cu_pct cu_nn 3         1 2 3 3 0 1 5 CuID 11 Cu_pct cu_id 3         2 2 3 3 0 1 5 PbOK 12 Pb_pct pb_ok 4         3 2 4 3 0 1 5 PbNN 13 Pb_pct pb_nn 4         1 2 4 3 0 1 5 PbID 14 Pb_pct pb_id 4         2 2 4 3 0 1 5 ZnOK 15 Zn_pct zn_ok 5         3 2 5 3 0 1 5 ZnNN 16 Zn_pct zn_nn 5         1 2 5 3 0 1 5 ZnID 17 Zn_pct zn_id 5         2 2 5 3 0 1 5     Avino Silver & Gold Mines Ltd. 14-47 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Search and Sample Parameter File   Table 14.26 Sv2_spar – Search and Sample Parameter File (Domains 4 and 5)     SDESC SREFNUM SMETHOD SDIST1 SDIST2 SDIST3 SANGLE1 SANGLE2 SANGLE3 ag_4 1 2 150 50 8 -55 -75 180 au_4 2 2 150 50 8 35 0 75 cu_4 3 2 50 150 8 -55 -75 180 zn_4 4 2 50 150 8 59.15 56.77 61.81 pb_4 5 2 50 150 8 59.15 56.77 61.81 Ag 6 2 15 15 15 0 0 0 Au 7 2 70 70 70 0 0 0 Cu 8 2 40 40 40 0 0 0 Pb 9 2 69 69 69 0 0 0 Zn 10 2 33 33 33 0 0 0 SDESC SREFNUM SAXIS1 SAXIS2 SAXIS3 MINNUM1 MAXNUM1 SVOLFAC2   ag_4 1 3 2 1 18 24 2   au_4 2 3 2 1 18 24 2   cu_4 3 3 2 1 18 24 2   zn_4 4 3 2 1 18 24 2   pb_4 5 3 2 1 18 24 2   Ag 6 3 3 3 16 20 2   Au 7 3 3 3 16 20 2   Cu 8 3 3 3 16 20 2   Pb 9 3 3 3 16 20 2   Zn 10 3 3 3 16 20 2   SDESC SREFNUM MINNUM2 MAXNUM2 SVOLFAC3 MINNUM3 MAXNUM3 MAXKEY Domain ag_4 1 12 24 4 6 24 3 4 au_4 2 12 24 4 6 24 3 4 cu_4 3 12 24 4 6 24 3 4 zn_4 4 12 24 4 6 24 3 4 pb_4 5 12 24 4 6 24 3 4 Ag 6 12 20 8 6 12 3 5 Au 7 12 20 8 6 12 3 5 Cu 8 12 20 8 6 12 3 5 Pb 9 12 20 8 6 12 3 5 Zn 10 12 20 8 6 12 3 5     Avino Silver & Gold Mines Ltd. 14-48 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Variogram Parameter File   Table 14.27 Sv2_vpar – Variography Parameter File (Domains 4 and 5)   VDESC VREFNUM VANGLE1 VANGLE2 VANGLE3 VAXIS1 VAXIS2 VAXIS3 NUGGET ST1 ST1PAR1 ST1PAR2 ST1PAR3 ST1PAR4 ag_sv 1 -55 -75 180 3 2 1 0.22 1 13 91 10 0.493 au_sv 2 35 0 75 3 2 1 0.21 1 21 81 3 0.374 cu_sv 3 -55 -75 180 3 2 1 0.12 1 46 40 3 0.212 zn_sv 4 59.15 56.77 61.81 3 2 1 0.32 1 112 266 6 0.68 pb_sv 5 59.15 56.77 61.81 3 2 1 0.35 1 117 278 6 0.65 Ag 6 0 0 0 3 3 3 0.3 1 15 15 15 0.7 Au 7 0 0 0 3 3 3 0.1 1 70 70 70 0.9 Cu 8 0 0 0 3 3 3 0.475 1 40 40 40 0.525 Pb 9 0 0 0 3 3 3 0.485 1 69 69 69 0.515 Zn 10 0 0 0 3 3 3 0.549 1 33 33 33 0.451 VDESC VREFNUM ST2 ST2PAR1 ST2PAR2 ST2PAR3 ST2PAR4 ST3 ST3PAR1 ST3PAR2 ST3PAR3 ST3PAR4 DOMAIN   ag_sv 1 1 281 99 12 0.287           4   au_sv 2 1 289 96 16 0.416           4   cu_sv 3 1 112 119 3 0.511 1 128 290 100 0.157 4   zn_sv 4                     4   pb_sv 5                     4   Ag 6                     5   Au 7                     5   Cu 8                     5   Pb 9                     5   Zn 10                     5       Avino Silver & Gold Mines Ltd. 14-49 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.9   Resource Block Model   14.9.1   Configuration   The block model is oriented with the model origin at the lower left hand corner (bottom southwest).  All dimensions are in metres.  The model is not rotated.  Cell and sub-cell sizes configuration was designed to facilitate best fit modelling of the narrow-vein geology of the San Gonzalo and Avino veins.  The block model configuration is recorded in Table 14.28.  Sub-cells were also used to more accurately define the topographic DTM surface and the margins of domain wireframes.  Cells were not assigned to air (i.e. above topographic surface).   14.9.2   Cell Attributes   Categorical, calculated and deterministic variables for the cells of the block model are tabulated in Section 14.9.3.  Categorical variables include, but are not limited to, domains (1, 2, 3 and 4), resource classification (Measured, Indicated and Inferred) and estimation passes (search volumes).  Deterministic variables include, but are not limited to, gold grade, Indicator probability (zero to one), density, Kriging variance.  Calculated variables include Kriging Efficiency (KE) and theoretical slope of regression (ZZ), which is also noted as ZZ* in this report.   14.9.3   Interpolation   The reported resource relies on OK as the best non-biased interpolator of grade and density.  Other methods of interpolation, including inverse distance squared (ID2) and NN are employed for model validation purposes.  The entire Datamine™ macros which are used to generate the drillhole files and interpolated block models for both Avino and San Gonzalo are presented in Appendix D and Appendix E, respectively.     Table 14.28 Block Model Cell Attributes   Name Description Type Association IJK Unique parent cell code Integer Assigned domain Domain (1-5, 9) Integer Assigned XC Cell centroid (x) Variable Assigned YC Cell centroid (y) Variable Assigned ZC Cell centroid (z) Variable Assigned XINC Cell length (x) Variable Assigned YINC Cell width (y) Variable Assigned ZINC Cell height (z) Variable Assigned mstatus Mining Status (0-1) Integer Assigned rescat Resource classification (1-3) Integer Assigned table continues…     Avino Silver & Gold Mines Ltd. 14-50 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Name Description Type Association density Specific Gravity Variable Assigned ZONE Domain (not used) Integer Assigned ag_ok Ag grade (OK) Variable Estimated au_ok Au grade (OK) Variable Estimated cu_ok Cu grade (OK) Variable Estimated pb_ok Pb grade (OK) Variable Estimated zn_ok Zn grade (OK) Variable Estimated ag_id Ag grade (ID2) Variable Estimated au_id Au grade (ID2) Variable Estimated cu_id Cu grade (ID2) Variable Estimated pb_id Pb grade (ID2) Variable Estimated zn_id Zn grade (ID2) Variable Estimated ag_nn Ag grade (NN) Variable Estimated au_nn Au grade (NN) Variable Estimated cu_nn Cu grade (NN) Variable Estimated pb_nn Pb grade (NN) Variable Estimated zn_nn Zn grade (NN) Variable Estimated ag_f Ag (F-Function) Variable Estimated ag_lg Ag (Lagrange Multiplier) Variable Estimated numsam Number of Samples for Metal Estimate Integer Calculated svol Search Estimate Pass (1-3) for Metal Estimate Integer Calculated tdist Sample Distances for Estimate Variable Calculated KV Ag Kriging Variance Variable Calculated sg_ok Specific Gravity (OK) Variable Estimated sg_id Specific Gravity (ID2) Variable Estimated sg_nn Specific Gravity (NN) Variable Estimated sg_num Number of Samples for Specific Gravity Estimate Integer Calculated sg_vol Search Estimate Pass (1-3) for Specific Gravity Estimate Integer Calculated BV Ag Block Variance Variable Calculated KE Ag KE Variable Calculated ZZ Ag ZZ Variable Calculated ag_eq Silver Equivalent - Avino (Ag + Au + Cu) San Gonzalo (Ag+ Au + Cu + Pb + Zn) Variable Calculated XMORIG Block Model Origin (x) Integer Assigned YMORIG Block Model Origin (y) Integer Assigned ZMORIG Block Model Origin (z) Integer Assigned NX Number of Cells (x) Integer Assigned NY Number of Cells (y) Integer Assigned NZ Number of Cells (z) Integer Assigned     Avino Silver & Gold Mines Ltd. 14-51 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.10   Model Validation   Table 14.29 to Table 14.32, for both Avino and San Gonzalo mineralization, compare the estimated resource model statistics with the drillhole file used to estimate the model by domain.  The drillhole file is composed of the capped and composited data, whereas the resource model has been regularized (i.e. no sub-cells) to the parent cell size (10 m3).  Note that domains 1 and 2 have been combined as a single entity.  Also presented in the tables are the statistical comparisons of the three interpolation methods (ID2, NN and OK).   Note that there is no density data in the domain 3 composited drillhole file.  Domain 5 had insufficient data (two measurements only) to interpolate density.   14.10.1   Statistics   Differences between the mean data grade (used for the interpolation) and the model grade is a function of face sample statistics.  Face samples commonly have lower grades, yet influence a relatively smaller number of regularized cells.           Avino Silver & Gold Mines Ltd. 14-52 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Avino   Table 14.29 Model Statistics with Drillhole Statistics – Domains 1 and 2 Combined   Type Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis model ag_ok 170,644 170,644 0 275.1 35.65 1129.1 33.602 0.081 2.287 7.02 ag_id 170,644 170,644 1.346 286.0 35.44 1039.9 32.247 0.078 2.192 6.509 ag_nn 170,644 170,644 0 610.9 30.37 2356.5 48.543 0.118 4.549 31.913 comp Ag_gt 951 913 0 610.9 36.0 2815.1 53.1 1.756 4.438 29.384 model au_ok 172,154 172,154 0.001 5.186 0.269 0.132 0.363 0.001 4.421 32.688 au_id 172,154 172,154 0.005 5.341 0.269 0.127 0.356 0.001 3.712 25.181 au_nn 172,154 172,154 0 7.293 0.362 0.61 0.781 0.002 3.622 17.867 comp Au_gt 951 913 0 7.293 0.217 0.312 0.558 0.018 7.298 70.579 model cu_ok 164,325 164,325 0.023 3.284 0.345 0.097 0.311 0.001 2.178 6.943 cu_id 164,325 164,325 0.015 3.560 0.335 0.116 0.34 0.001 2.294 8.376 cu_nn 164,325 164,325 0.002 5.012 0.318 0.251 0.501 0.001 3.996 24.691 comp Cu_pct 951 913 0.0022 5.012 0.409 0.271 0.520 0.017 3.301 17.331 model sg_ok 174,779 122,340 2.492 2.918 2.689 0.004 0.059 0 -0.201 -0.669 sg_id 174,779 122,340 2.482 2.993 2.694 0.007 0.082 0 0.3 0.091 sg_nn 174,779 122,340 2.43 3.000 2.708 0.018 0.134 0 0.725 -0.204 comp density 951 65 2.43 3.000 2.693 0.016 0.127 0.016 0.444 0.328     Avino Silver & Gold Mines Ltd. 14-53 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.30 Model Statistics with Drillhole Statistics – Domain 3   Type Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis model ag_ok 11,741 11,741 9.354 70.51 30.15 164.4 12.82 0.118 0.641 -0.459 ag_id 11,741 11,741 4.705 88.41 32.92 287.4 16.95 0.156 0.431 -1.140 ag_nn 11,741 11,741 2.361 230.1 27.89 899.0 29.98 0.277 1.724 4.142 comp Ag_gt 69 54 2.361 230.1 30.01 1506.1 38.809 5.281 3.258 12.125 model au_ok 11,590 11,590 0.062 1.535 0.450 0.121 0.348 0.003 0.636 -0.886 au_id 11,590 11,590 0.058 2.365 0.499 0.182 0.426 0.004 1.022 0.544 au_nn 11,590 11,590 0.008 5.487 0.302 0.382 0.618 0.006 5.837 43.85 comp Au_gt 69 54 0.008 5.487 0.396 0.626 0.791 0.108 5.042 28.937 model cu_ok 4,184 4,184 0.058 0.181 0.122 0.001 0.025 0.000 -0.669 0.087 cu_id 4,184 4,184 0.051 0.199 0.122 0.001 0.029 0.000 -0.105 -0.108 cu_nn 4,184 4,184 0.035 0.397 0.093 0.003 0.050 0.001 1.485 4.021 comp Cu_pct 69 54 0.035 0.397 0.111 0.005 0.071 0.010 2.090 4.750 model sg_ok 21,565 3,678 2.644 2.813 2.726 0.001 0.030 0.000 -0.559 0.491 sg_id 21,565 3,678 2.625 2.863 2.735 0.002 0.048 0.001 -0.501 -0.429 sg_nn 21,565 3,678 2.550 3.000 2.766 0.027 0.165 0.003 0.709 -1.494     Avino Silver & Gold Mines Ltd. 14-54 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               San Gonzalo   Table 14.31 Model Statistics with Drillhole Statistics – Domain 4   Type Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis Model ag_ok 3,946 3,946 6.597 1828 217 25876 161 2.561 2.735 17.088 ag_id 3,946 3,946 5.990 1529 262 45676 214 3.402 1.755 4.610 ag_nn 3,946 3,946 2.207 5502 174 130004 361 5.740 6.376 61.213 comp Ag_gt 1,030 985 2.207 4189 226 149739 387 12.330 4.648 30.554 Model au_ok 3,946 3,946 0.089 9.380 1.325 1.571 1.254 0.020 1.940 4.084 au_id 3,946 3,946 0.092 11.363 1.421 3.148 1.774 0.028 2.767 7.811 au_nn 3,946 3,946 0.004 45.635 1.089 6.401 2.530 0.040 7.327 77.043 comp Au_gt 1,030 985 0.004 15.505 0.914 2.276 1.509 0.048 4.769 30.140 Model cu_ok 3,946 3,946 0.002 0.263 0.064 0.002 0.042 0.001 1.286 1.858 cu_id 3,946 3,946 0.002 0.295 0.060 0.002 0.044 0.001 1.852 3.823 cu_nn 3,946 3,946 0.000 0.793 0.063 0.010 0.098 0.002 3.145 11.518 comp Cu_pct 1,030 985 0.000 0.736 0.042 0.004 0.059 0.002 4.829 35.759 Model zn_ok 3,946 3,941 0.050 5.854 0.657 0.359 0.599 0.010 2.893 12.734 zn_id 3,946 3,945 0.044 4.980 0.609 0.269 0.518 0.008 2.378 8.322 zn_nn 3,946 3,945 0.009 10.200 0.604 1.579 1.256 0.020 4.680 26.614 comp Zn_pct 1,030 985 0.009 14.300 0.536 1.118 1.057 0.034 6.335 60.027 Model pb_ok 3,946 3,943 0.004 3.534 0.457 0.160 0.399 0.006 2.145 6.779 pb_id 3,946 3,945 0.006 2.906 0.405 0.117 0.342 0.005 2.202 6.732 pb_nn 3,946 3,945 0.002 6.500 0.443 0.954 0.976 0.016 4.068 17.729 comp Pb_pct 1,030 985 0.002 6.500 0.339 0.381 0.617 0.020 4.762 30.914 Model sg_ok 3,946 3,946 2.406 2.984 2.622 0.007 0.083 0.001 1.165 2.650 sg_id 3,946 3,946 2.402 2.987 2.624 0.008 0.088 0.001 0.873 1.591 sg_nn 3,946 3,946 2.400 3.000 2.650 0.026 0.162 0.003 0.266 -0.573 comp density 330 43 2.4 3 2.621 0.030 0.173 0.026 0.560 -0.320     Avino Silver & Gold Mines Ltd. 14-55 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.32 Model Statistics with Drillhole Statistics – Domain 5   Type Field N Records N Samples Minimum Maximum Mean Variance Standard Deviation Standard Error Skewness Kurtosis Model ag_ok 808 808 36.98 779 185 11483 107 3.770 1.279 2.610 ag_id 808 808 37.13 746 175 13074 114 4.023 1.578 2.890 ag_nn 808 808 8.317 2694 163 35524 188 6.631 4.653 44.12 comp Ag_gt 132 132 1.400 2801 158 113252 337 29.291 5.880 38.819 Model au_ok 808 781 0.000 3.135 0.617 0.272 0.522 0.019 2.085 4.499 au_id 808 808 0.159 3.237 0.504 0.095 0.308 0.011 3.179 17.58 au_nn 808 808 0.063 9.471 0.654 0.767 0.876 0.031 3.439 17.17 comp Au_gt 132 132 0.024 9.842 0.481 0.862 0.928 0.081 8.109 76.424 Model cu_ok 808 808 0.016 0.445 0.135 0.008 0.091 0.003 0.710 -0.183 cu_id 808 808 0.020 0.559 0.121 0.009 0.095 0.003 1.224 1.088 cu_nn 808 808 0.008 0.884 0.135 0.035 0.186 0.007 1.974 3.070 comp Cu_pct 132 132 0.002 0.885 0.087 0.017 0.132 0.011 4.175 20.220 Model zn_ok 808 808 0.161 2.493 0.857 0.172 0.414 0.015 0.502 0.151 zn_id 808 808 0.042 4.180 0.722 0.269 0.519 0.018 1.450 5.441 zn_nn 808 808 0.016 4.490 0.846 1.284 1.133 0.040 2.167 3.920 comp Zn_pct 132 132 0.012 4.980 0.752 0.802 0.895 0.078 2.546 7.570 Model pb_ok 808 808 0.057 0.710 0.303 0.026 0.160 0.006 0.505 -0.707 pb_id 808 808 0.064 0.849 0.270 0.023 0.151 0.005 0.617 -0.406 pb_nn 808 808 0.015 1.000 0.273 0.084 0.289 0.010 1.486 0.773 comp Pb_pct 132 132 0.012 1.493 0.219 0.061 0.248 0.022 2.403 6.269     Avino Silver & Gold Mines Ltd. 14-56 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.10.2   Sections   Figure 14.24 to Figure 14.29 shows the cross-sections and plan maps for Avino and San Gonzalo deposits.     Figure 14.24 Avino Deposit Cross-section – Silver       Avino Silver & Gold Mines Ltd. 14-57 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.25 Avino Deposit Cross-section – Gold       Avino Silver & Gold Mines Ltd. 14-58 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.26 Avino Deposit Plan Map – Silver       Avino Silver & Gold Mines Ltd. 14-59 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.27 Avino Deposit Plan Map – Gold       Avino Silver & Gold Mines Ltd. 14-60 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.28 San Gonzalo Deposit Cross-section – Silver       Avino Silver & Gold Mines Ltd. 14-61 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.29 San Gonzalo Deposit Plan Map – Silver       Avino Silver & Gold Mines Ltd. 14-62 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.10.3   Swath Plots   Avino   Figure 14.30 through Figure 14.32 displays the swath plots for the Avino Deposit block model and raw drillhole file.   San Gonzalo   Figure 14.33 through Figure 14.35 displays the swath plots for the San Gonzalo Deposit block model and raw drillhole file.             Avino Silver & Gold Mines Ltd. 14-63 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.30 Swath Plot of Grade Values by Easting for the Avino Deposit       Avino Silver & Gold Mines Ltd. 14-64 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.31 Swath Plot of Grade Values by Northing for the Avino Deposit       Avino Silver & Gold Mines Ltd. 14-65 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.32 Swath Plot of Grade Values by Elevation for the Avino Deposit         Avino Silver & Gold Mines Ltd. 14-66 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.33 Swath Plot of Grade Values by Easting for the San Gonzalo Deposit     Avino Silver & Gold Mines Ltd. 14-67 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.34 Swath Plot of Grade Values by Northing for the San Gonzalo Deposit     Avino Silver & Gold Mines Ltd. 14-68 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.35 Swath Plot of Grade Values by Elevation for the San Gonzalo Deposit       Avino Silver & Gold Mines Ltd. 14-69 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.10.4   Kriging Efficiency and Theoretical Slope of Regression   Conditional bias is the systematic under- and over-estimation of block estimates in different grade categories (see Figure 14.36).  Krige (1996) presented a practical analysis of the effects of spatial continuity and the available data within the search ellipse as it affects measures of conditional bias.     Figure 14.36 Actual value (Z) versus estimated value (Z*).  Slope of regression is expressed as ZZ*.       Note: Krige DG (1996):  A practical analysis of the effects of spatial structure and data available and used, on conditional biases in ordinary kriging.  Fifth International Geostatistics Congress, Wollongong, Australia.   The two parameters Krige suggested using to investigate whether the block size used for grade estimation is appropriate are KE (KE as a percentage) and regression slope (ZZ*) which can also be used to calibrate the confidence in block estimates and are given as follows:   KE       = (BV-KV)/BV   ZZ* = BV-KV+ |μ|   Where:   BV = theoretical variance of blocks within domain;   KV = variance between Kriged grade and true (unknown) grade, i.e. kriging variance;   μ = LaGrange multiplier     Avino Silver & Gold Mines Ltd. 14-70 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Perfect estimation would give values of KV = 0, KE = 100% and ZZ*=1.   Confidence in the geological framework is all important and generally takes precedence over any mathematical indicator of confidence.  However, KE and ZZ* can be used to identify “challenged” estimated areas within a specified resource classification which require further investigation.  Ultimately, KE and ZZ* are both tools to be used in conjunction with block size, drill spacing, mineralization continuity and geological confidence.   14.11   Mineral Resource Classification   14.11.1   Introduction   Mineral resource classification is the application of Measured, Indicated and Inferred categories, in order of decreasing geological confidence, to the resource block model.  These are CIM definition standards (adopted by the CIM Council on December 11, 2005) for reporting on mineral resources and reserves, which were incorporated, by reference, in NI 43-101.   A Measured Mineral Resource is that part of the total resource for which the physical characteristics are well established for use in production planning and economic evaluation.  Data is sufficient enough to confirm both geological and grade continuity.  An Indicated Mineral Resource is that part of the total resource for which the physical characteristics are well established for use in production planning and economic evaluation.  Data is sufficient enough to reasonably assume, but cannot verify, geological and grade continuity.  An Inferred Mineral Resource is that part of the total resource for which the quantity and grade can be estimated.  Data is sufficient enough to reasonably assume both geological and grade continuity.   These categories are applied in consideration of, but not limited to, drill and sample spacing, QA/QC, deposit-type and mineralization continuity, surface and/or underground mineralization exposure, variography, KE, ZZ* and/or prior mining experience.  With respect to this resource classification, model cells are assigned the classification on the basis of interpolation search pass, drill data density, and, in the case of domain 4, proximity to underground workings.  Solid wireframes or strings were used to define the Measured and Indicated resources.   All modelled mineralization at San Gonzalo and Avino are tightly constrained by geological wireframes.  The Avino resource estimates and reports silver, gold and copper.  The San Gonzalo resource estimates silver, gold, copper, zinc, and lead, and reports only silver and gold.  This is because copper, lead and zinc are not current payable metals, and that San Gonzalo base metal recoveries are poorly constrained.   Resource classification for both Avino and San Gonzalo is in part based on KE and ZZ* of the silver OK interpolation.     Avino Silver & Gold Mines Ltd. 14-71 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.11.2   Measured Resource Classification   Avino   The Avino vein has no resource classified as Measured.   San Gonzalo   The San Gonzalo vein has a resource classified as Measured.  This resource is defined as the volume proximal to underground workings and face samples.  The position of the Measured resource relative to face samples and drillhole data is depicted in Figure 14.37.     Figure 14.37 West-East View of Domain 4 Model Cells as Points with Assay Data     Note that the red points depict the Measured resource, tan-coloured points represent the Indicated resource and yellow points show the Inferred resource.   14.11.2   Indicated Resource Classification   Avino   The Avino vein has a resource classified as Indicated only in domains 1 and 2.  This resource is essentially defined where the ZZ* is greater than 0.8 (Figure 14.38).  Note that the Indicated resource is shown as the volume within the white line.  It encompasses most of the drillholes as shown in green, but does not include peripheral drillholes.     Avino Silver & Gold Mines Ltd. 14-72 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.38 Domain 1 and 2 Cells as Points Coloured by ZZ* looking West     The volume with ZZ* greater than 0.8 also coincides with positive KE as depicted in Figure 14.39.     Figure 14.39 Domain 1 and 2 Cells as Points Coloured by KE looking West       Avino Silver & Gold Mines Ltd. 14-73 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               This volume also coincides with most cells interpolated in the first search pass (Figure 14.40).     Figure 14.40 Domain 1 and 2 Cells as Points Coloured by Search Pass looking West     There is no resource classified as Indicated in domain 3.   San Gonzalo   Only domain 4 was assigned Indicated resource classification. This volume is a function of interpolation search pass, KE, ZZ* and proximity to underground workings.  Figure 14.41 and Figure 14.42 illustrates the rationale.     Avino Silver & Gold Mines Ltd. 14-74 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.41 West-East View of Domain 4 Model Cells as Points with Assay Data Coloured by Search Pass     Note that the red points depict cells estimated in the first search pass, tan-coloured for the second search pass and yellow for the third search pass.  The majority of the Indicated cells (within the green outline) correspond to first search pass cells.     Figure 14.42 West-East View of Domain 4 Model Cells as Points with Assay Data Coloured by KE       Avino Silver & Gold Mines Ltd. 14-75 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Although there are significant volumes of cells which were estimated in the first search pass, KE (Figure 14.42) and ZZ* (Figure 14.43) calculations indicate that the interpolations are less confident or robust.  Thus classification takes into consideration the quality of the interpolation as well as the proximity to sample data.     Figure 14.43 West-East View of Domain 4 Model Cells as Points with Assay Data Coloured by ZZ*     14.11.4   Inferred Resource Classification   Avino   All cells which have been successfully interpolated are classified and an Inferred resource with the exception of the Indicated resource as described above (Section 14.11.3) in domains 1 and 2.   San Gonzalo   All cells which have been successfully interpolated are classified and an Inferred resource with the exception of the Indicated and Measured resources as described above (Section 14.11.3 and Section 14.11.2) in domain 4.     Avino Silver & Gold Mines Ltd. 14-76 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.12   Mineral Resource Tabulation   14.12.1   Cut-offs and Silver Equivalent Calculations   The San Gonzalo and Avino reported mineral resources are tabulated on the basis of Ag_Eq cut-offs (Table 14.33).  In the case of the Avino vein, Ag_Eq takes in consideration the price and metallurgical recoveries of metals (gold) co-existing with silver to produce a single cut-off grade in grams per tonne.  In the case of the San Gonzalo vein, Ag_Eq takes in consideration the price and metallurgical recovery of gold coexisting with silver to produce a single cut-off grade in grams per tonne (Ag_Eq).  Base metals (copper, zinc and lead) were not included in the San Gonzalo Aq_Eq calculation as their recoveries are not well constrained.   The silver price of $20.00 was specifically requested by Avino.  Other metal prices are based on three year trailing average or spot price (April 15, 2013) whichever is lowest, based on a Tetra Tech internal memorandum 1005002001-MEM-R0060-00.     Table 14.33 Metal Prices and Recovery Parameters for Ag_Eq Calculation   Metal Metal Price (US$) Updated Recovery (%) Silver (Ag)*# 20.00/oz n/a Gold (Au)* 1,347/oz 70 Gold (Au)# 1,347/oz 75 Copper (Cu)# 3.23/lb 85   Note: Different recoveries:  (*) in San Gonzalo, and (#) in Avino   The following calculation is used to convert the Avino OK grades for each metal within each interpolated cell to an Ag_Eq grade (g/t) based on the above parameters.  No recoveries are applied for silver as it is considered an in situ resource.   Ag_1=(cu_ok*3.66*22.0462*0.85)   Ag_2=(au_ok/31.1035*1507*0.75)   Ag_3=(ag_ok/31.1035*20)   Ag_4=Ag_1+Ag_2+Ag_3   Ag_Eq=(Ag_4/20*31.1035)   The following is used to calculate San Gonzalo OK grades to Ag_Eq:   Ag_1 = (au_ok/31.1035*1507*0.70)   Ag_2 = (ag_ok/31.1035*20)   Ag_3 = Ag_1+Ag_2     Avino Silver & Gold Mines Ltd. 14-77 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Ag_Eq = (Ag_3/20*31.1035)   14.12.2   Tables   Table 14.34 to Table 14.39 provide a synopsis of the reported resource for the Avino vein (Avino vein plus cross-cutting vein) and the San Gonzalo vein (San Gonzalo vein plus the Angelica vein).  Metals reported include silver, gold and copper in the Avino mineralized system, and only silver and gold in the San Gonzalo mineralized system.  All use an Ag_Eq cut-off for reporting as discussed above.  Note that only the San Gonzalo vein carries a Measured resource, and there is only Inferred resources for the Angelica vein and the cross-cut vein in the Avino vein.             Avino Silver & Gold Mines Ltd. 14-78 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.34 Avino Vein Resource Tabulation – Indicated Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Cu (t) Ag_Eq (g/t) Ag (g/t) Au (g/t) Cu (%) Indicated 50 3,156,176 8,485,813 2.689 33,698,095 14,645,088 105,279 45,384 123.5 53.7 0.386 0.535 80 2,113,760 5,673,771 2.684 27,938,365 12,390,900 86,867 36,874 153.2 67.9 0.476 0.650 100 1,584,648 4,253,968 2.684 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727 150 863,528 2,327,430 2.695 16,205,941 7,697,377 46,408 20,369 216.6 102.9 0.620 0.875 200 405,792 1,105,097 2.723 9,474,178 4,522,283 27,828 11,718 266.7 127.3 0.783 1.060 250 218,048 596,569 2.736 5,820,374 2,792,304 16,552 7,243 303.5 145.6 0.863 1.214 300 101,872 279,226 2.741 3,046,921 1,509,556 8,845 3,604 339.4 168.2 0.985 1.291 350 27,536 75,091 2.727 931,580 429,190 3,953 1,000 385.9 177.8 1.638 1.332 400 4,896 13,123 2.680 189,907 59,198 1,526 177 450.1 140.3 3.617 1.350 450 2,432 6,462 2.657 98,244 29,381 1,066 50 472.9 141.4 5.132 0.767   Table 14.35 Avino Vein Resource Tabulation – Inferred Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Cu (t) Ag_Eq (g/t) Ag (g/t) Au (g/t) Cu (%) Inferred 50 3,316,272 8,982,925 2.709 29,258,352 12,407,216 130,031 33,978 101.3 43.0 0.450 0.378 80 1,742,616 4,710,633 2.703 20,488,097 8,718,189 97,196 22,668 135.3 57.6 0.642 0.481 100 1,193,320 3,220,896 2.699 16,262,944 7,068,831 75,858 17,719 157.0 68.3 0.733 0.550 150 519,704 1,399,366 2.693 8,967,681 4,229,254 29,878 10,670 199.3 94.0 0.664 0.763 200 204,560 552,562 2.701 4,338,265 2,289,307 7,375 5,539 244.2 128.9 0.415 1.002 250 71,344 195,258 2.737 1,802,917 1,022,743 2,284 2,197 287.2 162.9 0.364 1.125 300 20,624 57,052 2.766 592,460 357,509 362 716 323.0 194.9 0.197 1.255 350 2,536 7,056 2.782 84,780 51,332 17 108 373.7 226.3 0.073 1.527     Avino Silver & Gold Mines Ltd. 14-79 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.36 San Gonzalo Vein Resource Tabulation – Measured Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Ag_Eq (g/t) Ag (g/t) Au (g/t) Measured 50 51,064 132,360 2.592 1,087,224 895,604 4,064 255 210 0.955 100 34,592 89,784 2.596 989,239 820,501 3,579 343 284 1.240 120 31,960 82,912 2.594 964,958 800,343 3,492 362.0 300.2 1.310 150 27,504 71,416 2.597 914,791 759,801 3,288 398 331 1.432 200 20,560 53,268 2.591 812,026 680,368 2,793 474 397 1.631 250 16,320 42,073 2.578 732,414 615,974 2,470 541 455 1.826 300 14,024 36,035 2.570 678,990 569,102 2,331 586 491 2.012 350 11,792 30,209 2.562 618,733 515,976 2,180 637 531 2.244 400 10,200 26,066 2.555 569,618 471,300 2,085 680 562 2.488 450 9,552 24,399 2.554 546,761 452,508 1,999 697 577 2.549 500 6,936 17,680 2.549 443,964 366,718 1,638 781 645 2.882 550 4,944 12,547 2.538 355,976 292,673 1,343 882 726 3.328 600 4,200 10,666 2.540 320,790 262,454 1,237 935 765 3.608 650 3,368 8,529 2.532 277,742 226,517 1,087 1,013 826 3.963 700 2,944 7,453 2.532 254,586 206,881 1,012 1,062 863 4.223 750 2,848 7,202 2.529 248,930 201,981 996 1,075 872 4.301     Avino Silver & Gold Mines Ltd. 14-80 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.37 San Gonzalo Vein Resource Tabulation – Indicated Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Ag_Eq (g/t) Ag (g/t) Au (g/t) Indicated 50 112,336 293,404 2.612 2,989,353 2,228,669 16,135 317 236 1.710 100 99,520 259,564 2.608 2,912,229 2,166,562 15,816 349 260 1.895 120 94,728 246,412 2.601 2,865,681 2,127,460 15,659 361.7 268.5 1.977 150 85,760 222,407 2.593 2,763,069 2,043,514 15,263 386 286 2.134 200 69,144 178,315 2.579 2,513,469 1,847,813 14,119 438 322 2.463 250 60,352 155,457 2.576 2,347,274 1,723,166 13,238 470 345 2.649 300 52,472 134,780 2.569 2,167,790 1,585,264 12,356 500 366 2.851 350 45,344 116,297 2.565 1,975,233 1,437,552 11,405 528 384 3.050 400 39,504 101,045 2.558 1,790,069 1,303,496 10,321 551 401 3.177 450 33,056 84,596 2.559 1,564,346 1,134,991 9,107 575 417 3.348 500 23,400 60,020 2.565 1,190,174 855,940 7,090 617 444 3.674 550 15,328 39,511 2.578 845,184 613,198 4,921 665 483 3.874 600 9,128 23,529 2.578 549,859 416,848 2,821 727 551 3.730 650 5,840 14,992 2.567 379,779 287,356 1,960 788 596 4.067 700 3,648 9,367 2.568 257,623 199,580 1,231 855 663 4.088 750 2,320 5,997 2.585 180,029 136,841 916 934 710 4.751     Avino Silver & Gold Mines Ltd. 14-81 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.38 San Gonzalo Vein Resource Tabulation – Inferred Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Ag_Eq (g/t) Ag (g/t) Au (g/t) Inferred 50 560,128 1,476,184 2.635 11,899,790 9,281,947 55,527 251 196 1.170 100 512,920 1,352,355 2.637 11,615,072 9,055,601 54,289 267 208 1.249 120 488,944 1,289,240 2.637 11,391,021 8,880,117 53,259 274.8 214.2 1.285 150 412,200 1,085,276 2.633 10,494,843 8,158,834 49,549 301 234 1.420 200 296,232 779,484 2.631 8,811,481 6,824,184 42,153 352 272 1.682 250 209,536 551,401 2.632 7,148,532 5,508,613 34,785 403 311 1.962 300 154,192 404,900 2.626 5,854,871 4,509,125 28,545 450 346 2.193 350 111,408 291,826 2.619 4,672,550 3,580,014 23,174 498 382 2.470 400 72,344 189,234 2.616 3,443,463 2,614,423 17,585 566 430 2.890 450 53,456 139,859 2.616 2,770,335 2,108,508 14,038 616 469 3.122 500 39,368 102,878 2.613 2,203,892 1,702,551 10,634 666 515 3.215 550 27,496 71,814 2.612 1,681,496 1,314,562 7,783 728 569 3.371 600 20,184 52,686 2.610 1,325,681 1,061,465 5,604 783 627 3.309 650 12,696 33,073 2.605 937,738 766,739 3,627 882 721 3.411 700 8,616 22,440 2.605 706,675 588,282 2,511 979 815 3.481 750 6,504 16,905 2.599 577,413 489,187 1,871 1,062 900 3.443     Avino Silver & Gold Mines Ltd. 14-82 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 14.39 San Gonzalo Vein Resource Tabulation – Measured and Indicated Resource   Resource Category Cut-off Ag Eq Volume (m3) Tonnes Density Metal Grade Ag_Eq oz Ag (oz) Au (oz) Ag_Eq (g/t) Ag (g/t) Au (g/t) Measured and Indicated 50 163,400 425,764 2.606 4,076,578 3,124,273 20,199 297.8 228.2 1.476 100 134,112 349,348 2.605 3,901,468 2,987,063 19,396 347.4 265.9 1.727 120 126,688 329,323 2.599 3,830,639 2,927,804 19,150 361.8 276.5 1.809 150 113,264 293,822 2.594 3,677,861 2,803,315 18,550 389.3 296.8 1.964 200 89,704 231,583 2.582 3,325,495 2,528,182 16,912 446.6 339.6 2.271 250 76,672 197,530 2.576 3,079,688 2,339,140 15,708 484.9 368.3 2.473 300 66,496 170,815 2.569 2,846,780 2,154,366 14,687 518.4 392.3 2.674 350 57,136 146,506 2.564 2,593,966 1,953,529 13,584 550.7 414.7 2.884 400 49,704 127,111 2.557 2,359,687 1,774,796 12,406 577.4 434.3 3.036 450 42,608 108,995 2.558 2,111,107 1,587,499 11,106 602.4 453.0 3.169 500 30,336 77,700 2.561 1,634,139 1,222,658 8,728 654.1 489.4 3.494 550 20,272 52,058 2.568 1,201,159 905,871 6,263 717.7 541.2 3.742 600 13,328 34,195 2.566 870,650 679,302 4,059 791.9 617.9 3.692 650 9,208 23,521 2.554 657,521 513,873 3,047 869.5 679.5 4.029 700 6,592 16,819 2.551 512,209 406,460 2,243 947.2 751.7 4.148 750 5,168 13,199 2.554 428,959 338,821 1,912 1,010.8 798.4 4.505   14.12.3   Grade-Tonnage Curves   Avino   Figure 14.44 to Figure 14.46 represent grade-tonnage curves for the total resource comprised of the Avino vein.     Figure 14.44 Silver – Grade-Tonnage Curve for the Avino Vein       Avino Silver & Gold Mines Ltd. 14-83 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.45 Gold – Grade-Tonnage Curve for the Avino Vein       Avino Silver & Gold Mines Ltd. 14-84 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.46 Copper – Grade-Tonnage Curve for the Avino Vein     San Gonzalo   Figure 14.47 and Figure 14.48 represent grade-tonnage curves for the total resource comprised of San Gonzalo plus the Angelica veins.     Avino Silver & Gold Mines Ltd. 14-85 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico                 Figure 14.47 Silver – San Gonzalo and Angelica Grade-Tonnage Curves       Figure 14.48 Gold – San Gonzalo and Angelica Grade-Tonnage Curves       Avino Silver & Gold Mines Ltd. 14-86 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.13   Oxide Tailings   Tetra Tech completed a recent NI 43-101 resource estimate for the oxide tailings at the Avino Mine.  The effective date of this resource estimate is July 18, 2012.  This resource estimate is discussed in detail in a previous technical report by Tetra Tech, with an effective date of July 24, 2012.   In the Avino oxide tailings, a prominent bench separates the lower portion of the deposit (referred to as the “lower oxide bench” in various documents and as Phase 1.1 in this analysis) from the upper portion of the oxide tailings (referred as the “middle bench” or “upper oxide bench” and as Phase 1.2 in this analysis).  Overlying the oxide tailings is a volume of sulphide tailings material (the “upper bench” or “sulphide tailings” and as Phase 2 in this analysis) which lacks representative sampling data which.  Figure 14.49 and Figure 14.50 illustrate the Phase 1.1, Phase 1.2 and Phase 2 zones.   The drillhole dataset included 28 drillholes with a total metreage of 407.75 m that was completed in the tailings from 1990.  All drillholes intersect the oxide tailings (Phase 1.1 and 1.2), with a total of 383 assays of gold and 383 assays of silver (766 values in total).   Avino conducted bulk density measurements on 432 samples from 20 drillholes in the oxide tailings.  Based on these data, Slim (2005d) determined a global average specific gravity value of 1.605 for the oxide tailings.  As no new specific gravity data representative of the entire tailings pile have been collected since this work, Tetra Tech used the same specific gravity value of 1.605 for the current oxide tailings estimate.   It was determined that capping of the data was not necessary for this dataset.   The oxide tailings mineral resource was estimated using Geovariance Isatis™ software.  No rotation was applied to the variography; the long range is horizontal and the short range is vertical, due to the strong horizontal layering present in the deposit.  Table 14.40 summarizes the variography parameters used for OK interpolation for both silver and gold in the oxide tailings.     Table 14.40 Variography Parameters Gold and Silver in Phases 1.1 and 1.2   Oxide Phase and Metal Search Anisotropy X Range (m) Y Range (m) Z Range (m) C0 Structure C1 Structure Phase 1.1 Au No Rotation 141 141 9 0.011 0.024 Phase 1.2 Au No Rotation 300 300 22 0.011 0.022 Phase 1.1 Ag No Rotation 155 155 23.4 98 149 Phase 1.2 Ag No Rotation 203 203 7.6 71 573   A single block model was created to cover the Avino oxide tailings deposit.  A block size of 50 m by 50 m by 2 m was used for block model and resource estimate, as the average distance between sample drillholes approximates 50 m and the composite length is 1 m. The interpolation method used for populating the block model was OK using a single pass.  A minimum of 5 and maximum of 40 composites were used per block with a maximum of 40 samples per drillhole. The search ellipse parameters were 200 m by 200 m by 30 m (vertical) with no rotation.     Avino Silver & Gold Mines Ltd. 14-87 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The oxide tailings are estimated to contain a 2.34 Mt Inferred Resource at a grade of 91.3 g/t silver and 0.54 g/t gold, at 50 g/t silver cut-off.   The entire resource is classified as an Inferred Mineral Resource based on the historical nature of the drilling (prior to institution of NI 43-101 and associated QA/QC requirements).  The identified grade pattern is similar in character to other tailings deposits, such as overall homogeneity and a pronounced horizontal continuity.  Verification samples collected by Tetra Tech confirm the presence of gold and silver mineralization at grades similar to those obtained in the original tailings drilling campaign and confirm that the mine lab assays are not materially different from those of external labs.  In Tetra Tech’s opinion, the oxide tailings sampling data is considered sufficient to support the purpose of this technical report and a current Inferred Mineral Resource.               Avino Silver & Gold Mines Ltd. 14-88 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.49 Perspective View of the Avino Oxide Tailings Block Model; Looking North-northwest (Showing Drillhole Numbers)     Notes: Phase 2 Sulphide Tailings (brown unit)   Phase 1.2 Upper Oxide Tailings (blue unit)   Phase 1.1 Lower Oxide Tailings (yellow unit)     Avino Silver & Gold Mines Ltd. 14-89 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 14.50 Section View of the Avino Tailings Deposit; Looking Northeast     Notes: Phase 2 Sulphide Tailings (brown unit)   Phase 1.2 Upper Oxide Tailings (blue unit)   Phase 1.1 Lower Oxide Tailings (yellow unit)     Avino Silver & Gold Mines Ltd. 14-90 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               14.1   Sulphide Tailings   There is no current resource estimate for the sulphide tailings (Phase 2 in Figure 4.1 and Figure 4.2).   Some sampling was carried out in 2005 by means of hand-dug pits on the “upper bench” of sulphide tailings.  Regrettably, this information does not provide an unbiased sample, being restricted to the top surface of the deposit and consequently no estimation can be carried out on the sulphide tailings.  The volume of the deposit can be estimated with at least the similar efficiency to the estimate of the oxide tailings but the recoverable metal remains an unknown quantity.  At best, the sulphide tailings are a considered a target for further exploration and results are disclosed as a range of tonnes and grades (Table 14.41).   The potential quantity and grade of the sulphide tailings is conceptual in nature and there has been insufficient exploration to define a mineral resource.  It is uncertain if further exploration (e.g. drilling and sampling) will result in the target (i.e. sulphide tailings) being delineated as a mineral resource.     Table 14.41 Target Resource for Further Exploration within Sulphide Tailings     Tonnes (t) Silver (g/t) Gold (g/t) Silver (oz) Gold (oz) Lower Range 2,800,000 40.0 0.3 3,600,000 27,000 Upper Range 3,200,000 100.0 0.6 10,300,000 61,700   No mineral resource for the sulphide tailings is disclosed in this technical report.     Avino Silver & Gold Mines Ltd. 14-91 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico      

    15.0   MINERAL RESERVE ESTIMATES   There are currently no mineral reserves on the Property.                                   Avino Silver & Gold Mines Ltd. 15-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               16.0   MINING METHODS   16.1   Avino Vein   Avino is not currently conducting mining activity on the Avino vein. No mining methods are currently proposed for any potential mining activity on the Avino vein.   16.2   San Gonzalo Vein   Avino is currently mining actively on the San Gonzalo vein. Production decisions are being made without mineral reserves or any studies of economic viability that have been prepared in accordance with NI 43-101. Avino is basing its economic decisions on the net proceeds of a bulk sample program described below.   16.2.1   Bulk Sample Program   No formal prefeasibility study has been commissioned but a 10,000 t bulk sample program was carried out in 2011. In July 2011, the results were announced. The bulk sample was intended to allow Avino to assess the economics of the zone by confirming mineral grades obtained through earlier diamond drilling. The results were released after a comprehensive review of the data and discussions with Tetra Tech. The bulk sample program was completed during Q1 2011 and Avino sold 188 t of the San Gonzalo bulk concentrate for net proceeds of US$1.83 million. In April 2012, Avino sold the balance of the San Gonzalo concentrate.   The overall bulk sample feed grade was 261 g/t silver and 0.9 g/t gold. Silver and gold recoveries were 76% and 59%, respectively, and 232 dry tonnes of flotation concentrate were produced, of which 188 t were sold for net proceeds of US$1.83 million. If the entire production were sold under the same contract terms, the net proceeds would have been US$2.26 million.   Evaluation costs relating to mining, milling, and overhead for the bulk sample program were US$567,045 or US$7.62/oz silver equivalent, including the costs for the raises and stopes. The cost per tonne produced was US$53.91 and proceeds on 188 t of concentrate sold at US$1.83 million. (The contract prices per ounce of silver and gold were US$36.75 and US$1,511.31, respectively.)   On the basis of internal modelling of the bulk sampling program, Avino has been proceeding with their mine plan to develop the third, fourth and fifth levels and to provide mill feed at the rate of 250 t/d on a sustained basis.       Avino Silver & Gold Mines Ltd. 16-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               It should be noted this production decision is being made without mineral reserves or any studies of economic viability that have been prepared in accordance with NI 43-101.   16.2.2   Production   Production for the past six months is summarized in Table 16.1   Table 16.1 Production at the Avino Mine     October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 Total Mill Feed (dry tonnes) 6,647 6,528 6,364 6,392 6,418 6,913 Average Daily Throughput (t/d) 214 218 235 228 229 230 Feed Grade Silver (g/t) 233 256 287 315 306 307 Feed Grade Gold (g/t) 0.93 0.99 1.19 1.27 1.19 1.40 Bulk Concentrate (dry tonnes) 180 177 181 197 166 206 Bulk Concentrate Grade Silver (kg/t) 7.04 7.37 7.90 8.32 9.43 8.52 Bulk Concentrate Grade Gold (g/t) 25.0 25.4 28.6 29.1 30.4 34.5 Recovery Silver (%) 82 78 78 81 80 83 Recovery Gold (%) 72 69 68 70 66 73 Mill Availability (%) 97.2 98.1 87.9 91.1 99.0 96.7 Total Silver Produced (kg) 1,265 1,302 1,433 1,638 1,565 1,757 Total Gold Produced (g) 4,489 4,487 5,185 5,722 5,036 7,117 Source: Avino 2013c   Concentrate produced have been sold on a regular basis to a concentrate trading firm with shipments taking place monthly. The Q4 financial results indicated the cost as cash per ounce silver for San Gonzalo was US$14.22. Mining and milling operations are continuing even though there has been no prefeasibility or feasibility study commissioned after bulk sample program.   16.2.3   Mine Design   Access to the underground at San Gonzalo is via a 4 m by 4 m decline developed at -12%. Ground conditions are excellent. Ground support is mainly bolting as required.   San Gonzalo is using shrinkage mining for the narrower material, approximately 1.4 m in width and cut and fill mining for mineralized material wider than 2 m.   During shrinkage mining, miners use hand-held jacklegs and stopers to drill and blast in stopes. Material is drilled and blasted using jacklegs to breast horizontally, with two miners from two ends of the stope with several breasts worked on at once. After each blast the swell (approximately 40% of the broken material) is mucked from the extraction drift below to allow room for the miners to drill the next lift. Materials and supplies are carried into the stopes by hand down a small raise equipped with steel ladders and a rope. Only 40% of the material is extracted during mining, with the remainder being extracted after all the mining has been completed, meaning more stopes are required in the development stage at one time to sustain production targets. Scoops are used to muck from the extraction drift below and trammed to a mineralized material pass.       Avino Silver & Gold Mines Ltd. 16-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Cut and fill mining is more mechanized, as access for scoops is maintained in the stopes from the main ramp by a smaller access attack decline/incline ramp. This access means less manhandling of materials and provides material on a steady basis from each lift while mining takes place. This method requires that waste fill be placed after each lift of material has been mined prior to mining the next lift. Stopers are used to drill vertical holes, with half the stope being blasted at once. A 2 yd scoop is used in the stope to place waste and muck material. It is 1.2 m wide and requires 2.0 m wide to operate. No mill discharge is used for backfilling.   The mine is able to achieve a production rate of 230 t/d with three shrinkage stopes and one cut and fill stope being developed/mined at once plus two headings in mineralized material or the shrinkage undercut. The mine works 6 d/wk, or 26 d/mo. A mining contractor has been hired for material haulage.   16.3   Oxide Tailing   Tetra Tech proposed potential mining methods for the oxide tailings portion of the Property. These were disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   The current mineral resources for the oxide tailings will be mined through surface methods and without blasting. A truck/front-end loader arrangement has been selected and will operate one 8 hour shift per day, 365 d/a for the 4.7-year life of this Project.   Initially the oxide tailings will be processed without having to move the sulphide tailings, which covers a portion of the oxide tailings. Not all of the sulphide tailings need to be removed to gain access to the oxide tailings. Approximately 0.5 Mt/a of oxide tailings will be sent to the heap leach pad.   16.4   Sulphide Tailings   Avino is not currently conducting mining activity on the sulphide tailings. In addition, no mining methods are currently proposed for any potential mining activity on the sulphide tailings.         Avino Silver & Gold Mines Ltd. 16-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico             17.0   RECOVERY METHODS   17.1   Avino Vein   Avino is not currently conducting mining activity on the Avino vein. In addition, no recovery methods are currently proposed for the Avino vein.   Historically, prior to the mine shutting down in 2001, Avino operated a 1,000 t/d processing plant producing a copper concentrate that was sold to a smelter in San Luis Potosi. The plant consisted of a conventional three-stage crushing circuit with the tertiary crusher in closed circuit with a screen. Fine crushed material was fed to a ball mill and classified with a cyclone. The fines from the cyclone reported to the flotation circuit where typical flotation reagents for copper minerals were used. The concentrate from the rougher and scavenger circuits were upgraded in a cleaner circuit with the final concentrate reporting to a thickener, vacuum filter and dryer. The concentrate was dried to approximately 8% moisture and then shipped to the smelter. Flotation tailings was pumped to the permitted tailings impoundment where decant water is reclaimed for process use.   A summary of the mill production and balance for the month of October and the year-to-date in 2001 is provided in Table 17.1.         Avino Silver & Gold Mines Ltd. 17-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 17.1 Mill Production     Monthly Annual Estimated Actual Difference Difference (%) Estimated Actual Difference Difference (%) Mill Mineralized Material Milled (tons) 34,800 33,367 -1,433 -4 329,440 325,042 -4,398 -1 Ore Grades Silver (g/t) 167 98 -69 -41 131.25 101.52 -29.73 -23 Gold (g/t) 0.53 0.4 -0.13 -25 0.83 0.61 -0.21 -26 Copper (%) 0.76 0.69 -0.07 -9 0.64 0.57 -0.07 -11 Concentrate Grade Silver (g/t) 6,346 3,152.79 -3,193.21 -50 4,604.94 3,542.67 -1,062.26 -23 Gold (g/t) 19.61 12.44 -7.17 -37 29.01 21.64 -7.37 -25 Copper (%) 31.54 24.19 -7.35 -23 25.36 22.44 -2.91 -11 Metallurgical Recovery Silver (%) 76.00 77.87 1.87 2 75.56 75.91 0.35 0 Gold (%) 74.00 76.20 2.20 3 75.37 76.59 1.22 2 Copper (%) 83.00 85.48 2.48 3 84.95 85.25 0.3 0 Concentrate (tons) 696.00 807.66 111.66 16 7094.48 7070.91 -23.57 0 Silver Produced (kg) 4,416.82 2,546.38 -1,870.44 -42 32,669.64 25,049.94 -7,619.7 -23 Gold Produced (kg) 13.65 10.04 -3.61 -26 205.82 153.01 -52.81 -26 Copper Produced (kg) 219,518 195,370 -24,148 -11 1,799,037 1,587,016 -212,021 -12 Silver Equivalent (oz) 252,605 164,341 -88,264 -35 2,127,822 1,683,791 -444,031 -21   Source: Avino 2001         Avino Silver & Gold Mines Ltd. 17-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               17.2   San Gonzalo Vein   The current process plant consists of crushing and grinding facilities, followed by a flotation process circuit to recover and upgrade silver and gold from the feed material. Common reagents were used within the flotation circuit. The flotation concentrate is thickened, filtered to 9.9% moisture content, and sent to the concentrate stockpile for subsequent shipping to customers.   The final flotation tailing is disposed of in the tailing pond. The simplified flowsheet is shown in Figure 17.1. A summary of the material and metallurgical balances from April 2013 is outlined in Table 17.2.   Table 17.2 Material and Metallurgical Balances     January 2013 February 2013 March 2013 April 2013 May 2013 Total Mill Feed (dry tonnes) 6,392 6,418 6,913 6,460 6,948 Total Mill Feed (dry tonnes) 6,392 6,418 6,913 6,460 6,948 Average Daily Throughput (t/d) 228 229 230 223 232 Days of Operation 28 28 30 29 30 Feed Grade Silver (g/t) 315 306 307 274 279 Feed Grade Gold (g/t) 1.27 1.19 1.4 1.36 1.13 Bulk Concentrate (dry tonnes) 197 166 206 202 209 Bulk Concentrate Grade Silver (kg/t) 8.32 9.43 8.52 7.07 7.58 Bulk Concentrate Grade Gold (g/t) 29.1 30.4 34.5 31.7 27.3 Recovery Silver (%) 81 80 83 81 82 Recovery Gold (%) 70 66 73 73 72 Mill Availability (%) 91.1 99.0 96.7 96.1 97.2 Total Silver Produced (kg) 1,638 1,565 1,758 1,428 1,584 Total Gold Produced (g) 5,722 5,036 7,117 6,411 5,698 Total Silver Produced (oz) Calculated 52,779 50,315 56,513 45,899 50,923 Total Gold Produced (oz) Calculated 184 162 229 206 183 Total Silver Equivalent Produced (oz) 62,781 59,228 69,098 57,235 60,999   Source: Avino 2013a         Avino Silver & Gold Mines Ltd. 17-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 17.1 Simplified Flowsheet             Avino Silver & Gold Mines Ltd. 17-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 17.2 illustrates the recovery variances for silver in gold during production in 2013.   Figure 17.2 Recovery Variances for Silver in Gold     Feed for the month of March 2013 to the plant has an average head grade of 307 g/t silver and 1.4 g/t gold. The plant consists of a conventional crush-grind-flotation followed by thickening and filtration.   The amount of concentrate and metal recoveries were estimated to be as follows:   ·   dry weight of the produced silver and gold bulk concentrate is 206 t   ·   silver recovery of 83% with a concentrate grade of 8,521 g/t silver   ·   gold recovery of 73% with a grade of 34.5 g/t gold.   A summary of the material and metallurgical balances for the month of March is outlined in Table 17.3.   Table 17.3 San Gonzalo March 2013 Material and Metallurgical Balance     Weight (t) Assay (g/t) Contents (kg) Contents (oz) Recovery (%) Au Ag Au Ag Au Ag Au Ag Feed 6,913 1.40 307 9.7 2,121.1 311.3 68,195 100 100 Concentrate 206 34.5 8,521 7.1 1,757.8 228.8 56,513 73 83 Tail 6,707 0.4 54 2.6 363.3 82.5 11,682 41 24   Source: Avino 2013c         Avino Silver & Gold Mines Ltd. 17-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               17.2.1   2011 Bulk Sample   In 2011, Avino completed an approximately 10,000 t bulk sample program on the San Gonzalo deposit. Results from this bulk sample are summarized in Table 17.4 and discussed further in Section 9.2.4.   Table 17.4 San Gonzalo Bulk Sample     Weight (t) Assay (g/t) Contents (kg) Contents (oz) Recovery (%) Au Ag Au Ag Au Ag Au Ag Feed 10,519* 0.9 261 9.35 2,746.75 300.9 88,311.70 100 100 Concentrate 232 23.8* 8,998* 5.52 2,087.53 177.5 67,116.90 59 76 Tail 10,287 0.4 64 3.83 659.22 123.4 21,194.80 41 24   Source: Avino 2011a Note: *These figures have been reconciled to the weighed feed tonnage and the final concentrate assays. They also have been rounded for clarity.   17.3   Oxide Tailings   Tetra Tech proposed potential recovery methods for the oxide tailings portion of the Property. These were disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   Tetra Tech investigated gravity separation, flotation, cyanide leach, CIP, and heap leach processing options. Using the recoveries and process conditions resulting from these tests, the capital costs to construct a processing plant using selected process options were developed while the operating costs associated with each option were determined and a financial model compiled. A heap leach operation indicated the best financial alternative.   17.4   Sulphide Tailings   Avino is not currently conducting mining activity on the sulphide tailings.  In addition, no recovery methods are currently proposed for the sulphide tailings.         Avino Silver & Gold Mines Ltd. 17-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico             18.0 PROJECT INFRASTRUCTURE   18.1 Introduction   The history of operations at the Avino Mine provides ample evidence of sufficient infrastructure and services in the area. Three process circuits are in place and two have been completely refurbished and operating. The third is being upgraded for a throughput of 1,000 t/d. The existing tailings deposition facility has been upgraded and is fully permitted and operational for approximately another 500,000 t of tailings. The offices, miner’s quarters, secured explosives storage facilities, warehouse, laboratory and other associated facilities are all in place.   18.2 Power   The Avino Mine is connected to the local power grid with a line capacity quoted at 4 MW when the mine last operated in 2001. With the shutdown, much of this excess power has been diverted to the surrounding towns in the district. The present power line provides only 1,000 kW of power with 500 kW servicing the mill, 400 kW for San Gonzalo and the balance for the well at Galeana, employee accommodation facility and water reclaim from the tailings dam. The San Gonzalo power line was built in 2009 to replace the contractor’s diesel generator used during mine development. A C-27 CAT diesel power generator, which produces 700 kW, is being used to power the second circuit.   18.3 Water Supply   While water supply was found to be limiting in the past, Avino has taken the necessary steps to secure adequate supply. To supplement the 1 Mm3 dam built by Avino in 1989, a well (Galeana) was drilled to the west of the mine site in 1996 to a depth of 400 m and is reported to have a water level at 40 m below the collar. From this, a pipeline connection has been installed to the mine. Additionally, CMMA, in cooperation with the government, has repaired a government dam (El Caracol) and raised the dam wall by 6 m. A pipeline to the mine has also been installed. This dam is shared with the population of Pánuco de Coronado for their irrigation needs, as 60% for the mine and 40% for the town, with government setting the annual total take to which percent sharing applies. Mine site water use is from a combination of tailings water reclaim, El Caracol, and Galeana with preference given to mine site sources for which no water conservation charge was applicable (Slim 2005).       Avino Silver & Gold Mines Ltd. 18-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               18.4 Water Treatment Plant   Underground mine water at the Avino Mine is acidic. Since October 2012 dewatering of the Avino Mine began and a water treatment plant using lime to raise the pH and to precipitate the heavy metals was constructed and built. The water treatment facility is a typical Mexican design and the effluent water quality had to meet the agricultural standards for discharge. Test results to date show the results do meet the required agricultural standards and being discharged to the El Caracol Dam via gravity. The effluent is being monitored on a daily basis when the treatment plant is operational. Sludge which is considered low density is sent to the tailings dam.   18.5 San Gonzalo Access Road   In 2008, this 1.7 km road was upgraded so it would be suitable for use by the mineralized material haul trucks and heavy equipment. The road was widened and a section had to be blasted because of the competent rock.       Avino Silver & Gold Mines Ltd. 18-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico             19.0   MARKET STUDIES AND CONTRACTS   For the current operating mine, the bulk concentrates produced from the historic stockpile materials and the concentrate from the San Gonzalo Deposit are currently sold to concentrate trading firms, based on two agreements detailed below, as well as on a spot basis.   ·   Avino currently has an agreement with TRAFIGURA MEXICO S.A. DE C.V. (A Trafigura Group Company) for the purchase of the San Gonzalo concentrate until September 2013.  The terms and conditions of this contract are confidential.   ·   Avino has an agreement with MK Metal Trading Mexico S.A. de C.V. (Nexxtrade) for the purchase of the bulk concentrate produced from the historic stockpile material until December 2013.  The terms and conditions of this contract are also confidential.       Avino Silver & Gold Mines Ltd. 19-1 1251920100-REP-R0001-02.1 Technical Report on the Avino Property, Durango, Mexico             20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT   The current environmental setting, permits and registrations, and environmental management strategies that may be required for the Project are disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   To Tetra Tech’s knowledge, no environmental baseline studies specific to individual portions of the Property have been completed. The Property has been previously disturbed by historical operations (Section 6.0).   Permits and authorizations required for the operation of the Project may include an operating permit, an application for surface tenures, a waste water discharge registration, a hazardous waste generator's registration, and an EIA or Evaluación de Impacto Ambiental. ABA tests have indicated that mild acid generation may already have started on the tailings dam. A gap analysis and additional tests to further characterize current conditions of the tailings should be completed to properly design a tailings management plan.       Avino Silver & Gold Mines Ltd. 20-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico           21.0 CAPITAL AND OPERATING COSTS   21.1 Avino Vein   Avino is not currently conducting mining activity on the Avino vein. No capital or operating costs have been estimated for any potential mining activity on the Avino vein.   21.2 San Gonzalo Vein   Avino is currently conducting mining activity on the San Gonzalo vein.   Capital Costs   The actual capital expenditures to date on the San Gonzalo vein are summarized in Table 21.1. The capital expenditures (in US dollars) have been broken down by year and area.   Table 21.1 Capital Costs for the San Gonzalo Vein     2011 2012 2013 Total Mine 695,411 338,474 1,527,106 2,560,991 Mill 270,760 184,451 160,399 615,610 Development 2,881,768 1,841,757 176,360 4,899,885 Geological - 90,660 169,441 260,101 Total - - - 8,336,587   Source: Avino 2013d, 2012, and 2011b   Mine and mill capital costs were attributed to equipment purchases. Development was for the construction of the haulage ramp and installation labour and geological for engineering services.   Operating Costs   The actual operating costs (in US dollars) during Q4 2012 and Q1 2013 are presented in Table 21.2.   The mine and milling costs included operating and maintenance labour together with the associated consumable supplies. Power was included in the milling costs. The geological component was mostly technical labour.     Avino Silver & Gold Mines Ltd. 21-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 21.2 Operating Costs for the San Gonzalo Vein   Description Q4 2012 Q1 2013 Total Cost Cost per tonne Processed Total Milled Tonnes Q4 2012 and Q1 2013 - - - 39,262 Direct Costs - - - - Mining 910,095 1,621,393 2,531,488 64 Milling 168,806 374,031 542,837 14 Geological 178,394 189,715 368,109 9 Total Direct Costs 1,257,295 2,185,139 3,442,434 88 General and Administrative (G&A) 127,393 86,941 214,334 5 Total Operating Costs 1,384,688 2,272,080 3,656,768 93   Source: Avino 2013d, 2012, and 2011b   21.3 Oxide Tailings   Tetra Tech (2012) estimated a CAPEX and OPEX for the oxide tailings portion of the Property.  These were disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   The CAPEX for the oxide tailings was developed based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings.  A total cost of US$29.1 million, including contingency, was estimated as the CAPEX for the oxide tailings (Table 21.3).   Table 21.3 CAPEX Summary   Item/Description Cost (US$) Direct Costs Mining, Agglomeration, and Pad Loading 3,293,320 Process Facilities 3,905,528 Reagents/Auxiliary Services 501,750 Buildings 932,763 Leach Pad and Infrastructure 7,414,974 Power Supply and Distribution 1,457,296 Total Direct Costs 17,505,632 Indirect Costs Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives 2,658,728 Freight and Construction Indirects 3,146,235 Contingency 5,828,000 Total Indirect Costs 11,632,964 Total CAPEX 29,138,596     Avino Silver & Gold Mines Ltd. 21-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 21.4 gives the overall estimated cost summary for the processing facility and the G&A costs based on 1,370 t/d, with an availability of 90% and 365 operating days per year.   The annual OPEX for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at a processing rate of 1,370 t/d.  An incremental increase in the G&A OPEX is estimated to be US$752,656, or US$1.51/t of tailings treated.   Table 21.4 OPEX Summary   Description Personnel Annual Cost (US$) Unit Cost (US$/t Treated) Process Manpower Maintenance Labour 7 175,104 0.35 Operations Labour 35 545,832 1.09 Laboratory 7 139,536 0.28 Subtotal 49 860,472 1.72 Process Supplies Operating Supplies - 4,582,421 9.16 Maintenance Supplies - 450,000 0.90 Power Supply - 479,947 0.96 Subtotal - 5,512,368 11.02 Total Process OPEX 49 6,372,840 12.74 G&A Costs G&A Staff 11 262,656 0.53 G&A Expenses - 490,000 0.98 Total G&A OPEX 11 752,656 1.51 Total OPEX 60 7,125,496 14.25   21.4 Sulphide Tailings   Avino is not currently conducting mining activity on the sulphide tailings portion of the Property.  No capital or operating costs have been estimated for any potential mining activity on the sulphide tailings portion of the Property.     Avino Silver & Gold Mines Ltd. 21-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico             22.0   ECONOMIC ANALYSIS   22.1   Avino Vein   No economic analysis has been performed on the Avino vein.   22.2   San Gonzalo Vein   No economic analysis has been performed on the San Gonzalo vein.   22.3   Oxide Tailings   Tetra Tech has proposed potential mining methods for the oxide tailings portion of the Property. These were dislosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized as follows:   The pre-tax financial results are:   ·   54.5% IRR   ·   1.6-year payback   ·   US$38.6 million NPV at an 8% discount rate.   A PEA should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Project have not been demonstrated at this time. The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.   22.4   Sulphide Tailings   No economic analysis has been performed on the sulphide tailings.         Avino Silver & Gold Mines Ltd.   1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  23.0   ADJACENT PROPERTIES   There are no material properties adjacent to the Property.                                       Avino Silver & Gold Mines Ltd. 23-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

    24.0   OTHER RELEVANT DATA AND INFORMATION   There is no additional information or explanation necessary to make the technical report understandable and not misleading.                                     Avino Silver & Gold Mines Ltd. 24-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               25.0   INTERPRETATION AND CONCLUSIONS   25.1   Geology   The Property is located in Durango State in North Central Mexico, within the Sierra Madre Silver Belt, and 82 km northeast of Durango City. The current Property is comprised of 23 mineral concessions, totalling 1,103.934 ha.   The Property is located within a large caldera which hosts numerous epithermal veins and breccias, grading into a “near porphyry” environment. The dominant rock types in the region of the Avino Mine include andesitic, rhyolitic and trachytic pyroclastic rocks. The area was intruded by monzonite dykes and stocks, which appear to be related to mineralization. Silver- and gold-bearing veins crosscut the various lithologies and are generally oriented north-northwest to south-southeast and northwest to southeast. The rocks have been weathered and leached in the upper sections from contact with atmospheric waters, resulting in an oxidized and a reduced, or sulphide, portion of the mine.   Four deposits are present on the Property: the Avino vein, the San Gonzalo vein, and the tailings dam (which includes an oxide and a sulphide portion). The oxide portion of the tailings deposit is the basis for a previous PEA (Tetra Tech 2012). Current resource estimates are reported in this study for the Avino and San Gonzalo veins as well as the oxide tailings.   25.2   Resource Estimates   At a cut-off of 100 g/t Ag_Eq, the Avino vein is estimated to contain an Indicated Resource of 4.25 Mt at an Ag_Eq grade of 174.3 g/t, including a grade of 79.2 g/t silver, 0.528 g/t gold, and 0.727% copper. With respect to the same Ag_Eq cut-off, the Avino vein is estimated to contain an Inferred Resource of 3.22 Mt at an Ag_Eq grade of 157.0 g/t, including a grade of 68.3 g/t silver, 0.733 g/t gold, and 0.55% copper.   At a cut-off of 150 g/t Ag_Eq, the San Gonzalo vein is estimated to contain a Measured plus Indicated Resource of 293,822 t at an Ag_Eq grade of 389.3 g/t, including a grade of 296.8 g/t silver and 1.964 g/t gold. With respect to the same Ag_Eq cut-off, the San Gonzalo vein is estimated to contain and Inferred Resource of 1.085 Mt at an Ag_Eq grade of 300.8 g/t, including a grade of 233.8 g/t silver and 1.420 g/t gold.   The oxide tailings are estimated to contain a 2.34 Mt Inferred Resource at a grade of 91.3 g/t silver and 0.54 g/t gold, at a 50 g/t silver cut-off.       Avino Silver & Gold Mines Ltd. 25-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               The sulphide tailings are currently considered an exploration target and there has been insufficient exploration to define a mineral resource.   25.3   Mineral Processing   No mineral processing methods or metallurgical test work is underway or proposed for the Avino vein or sulphide tailings.   Avino is currently conducting mining activity on the San Gonzalo vein, including processing of San Gonzalo vein material at the mine plant. No current metallurgical test work has been performed. Production decisions are being made without mineral reserves or any studies of economic viability that have been prepared in accordance with NI 43-101. Avino is basing its economic decisions on the net proceeds of a bulk sample program described in Section 9.3.2 and on the basis of results of the current operations.   Tetra Tech disclosed mineral processing and metallurgical testing methods and results for the oxide tailings portion of the Property. These were disclosed in the technical report entitled “Technical Report on the Avino Property”, dated July 24, 2012, and summarized below.   25.4   Mining   Avino is currently conducting mining activity on the San Gonzalo vein. Both cut and fill and shrinkage stoping are used to feed the mill which is currently configured to accommodate 230 t/d of dry material from San Gonzalo. A contractor is used for haulage (more information can be found in Section 16.2).   The mining of the unconsolidated tailings within the oxide tailing tailings part of the Property is relatively simple. There is moisture in the tailings and in places the ground can be soft. To mitigate the front-end loader from getting stuck, larger tires with chains and a smaller bucket will be employed. The mining group will operate on a one shift per day basis every day of the year. If this work schedule does not prove to be adequate, it is recommended the over-the-road dump trucks pull a trailer, overtime be approved or an additional shift be added.   25.5   Capital and Operating Costs   Capital Costs   The actual capital expenditures to date on the San Gonzalo vein are summarized in Table 25.2. The capital expenditures (in US dollars) have been broken down by year and area.         Avino Silver & Gold Mines Ltd. 25-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 25.2 Capital Costs for the San Gonzalo Vein     2011 2012 2013 Total Mine 695,411 338,474 1,527,106 2,560,991 Mill 270,760 184,451 160,399 615,610 Development 2,881,768 1,841,757 176,360 4,899,885 Geological - 90,660 169,441 260,101 Total - - - 8,336,587   Mine and mill capital costs were attributed to equipment purchases. Development was for the construction of the haulage ramp and installation labour and geological for engineering services.   Operating Costs   The actual operating costs (in US dollars) during Q4 2012 and Q1 2013 are presented in Table 25.3.   Table 25.3 Operating Costs for the San Gonzalo Vein   Description Q4 2012 Q1 2013 Total Cost Cost per tonne Processed Total Milled Tonnes Q4 2012 and Q1 2013 - - - 39,262 Direct Costs - - - - Mining 910,095 1,621,393 2,531,488 64 Milling 168,806 374,031 542,837 14 Geological 178,394 189,715 368,109 9 Total Direct Costs 1,257,295 2,185,139 3,442,434 88 General and Administrative (G&A) 127,393 86,941 214,334 5 Total Operating Costs 1,384,688 2,272,080 3,656,768 93   The mine and milling costs included operating and maintenance labour together with the associated consumable supplies. Power was included in the milling costs. The geological component was mostly technical labour.   The CAPEX for the oxide tailing tailings part of the Property has been developed based on the treatment of 1,370 t/d, or 500,000 t/a of oxide tailings. A total cost of US$29.1 million, including contingency, was estimated as the CAPEX for the Project (Table 25.4).       Avino Silver & Gold Mines Ltd. 25-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Table 25.4 CAPEX Summary   Item/Description Total Cost (US$) Direct Costs Mining, Agglomeration, and Pad Loading 3,293,320 Process Facilities 3,905,528 Reagents/Auxiliary Services 501,750 Buildings 932,763 Leach Pad and Infrastructure 7,414,974 Power Supply and Distribution 1,457,296 Total Direct Costs 17,505,632 Indirect Costs Engineering, Procurement, Construction Management, Quality Assurance and Vendor Representatives 2,658,728 Freight and Construction Indirects 3,146,235 Contingency 5,828,000 Total Indirect Costs 11,632,964 Total CAPEX 29,138,596   Table 25.5 gives the overall estimated cost summary for the processing facility and the G&A costs based on 1,370 t/d, with an availability of 90% and 365 operating days per year.   The annual OPEX for the process facilities is estimated to be US$6.3 million or US$12.74/t of tailings treated at a processing rate of 1,370 t/d. An incremental increase in the G&A OPEX is estimated to be US$750,000, or US$1.5/t of tailings treated.   Table 25.5 OPEX Summary   Description Personnel Annual Cost (US$) Unit Cost (US$/t Treated) Process Manpower Maintenance Labour 7 175,104 0.35 Operations Labour 35 545,832 1.09 Laboratory 7 139,536 0.28 Subtotal 49 860,472 1.72 Process Supplies Operating Supplies - 4,582,421 9.16 Maintenance Supplies - 450,000 0.90 Power Supply - 479,947 0.96 Subtotal - 5,512,368 11.02 Total Process OPEX 49 6,372,840 12.74 table continues…           Avino Silver & Gold Mines Ltd. 25-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Description Personnel Annual Cost (US$) Unit Cost (US$/t Treated) G&A Costs       G&A Staff 11 262,656 0.53 G&A Expenses - 490,000 0.98 Total G&A OPEX 11 752,656 1.51 Total OPEX 60 7,125,496 14.25   25.6   Economic Analysis   No economic analysis has been performed for the Avino vein, the San Gonzalo vein or the sulphide tailings. For the oxide tailing tailings part of the Property, based on US$1,256/oz gold price and US$20.38/oz silver price, the pre-tax NPV at 8% discount rate is US$38.6 million, the IRR is 54.5% and the payback period is 1.6 years. The total LOM undiscounted net cash flow is US$59 million. The Project economics are more sensitive to changes in silver price then gold price, capital costs and operating costs (Tetra Tech 2012).                 Avino Silver & Gold Mines Ltd. 25-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

  26.0 RECOMMENDATIONS   26.1 Introduction   Tetra Tech’s recommendations are itemized below. These recommendations are not required for continued mine development on the Property, and therefore a cost estimate for this work is not provided. The recommendations cover a variety of concerns noted by Tetra Tech regarding database management, QA/QC, health and safety, and environmental factors.   26.2 Geology   26.2.1 Database Management   Tetra Tech has the following recommendations regarding Avino database management:   ·   All drillhole data (including collar, survey, assay, geology, and specific gravity data) should be maintained in a single, compiled database for both the Avino and San Gonzalo veins.   ·   Location information for underground channel samples should also be entered into this database, including UTM coordinates for assay samples.   ·   Software such as Gemcom GEMS, Surpac, or MineSight is recommended, similar to other mining operations.   ·   Data entry in this compiled database should be limited to a select few individuals to avoid introducing inconsistencies to the database.   ·   This database should be verified by a senior geologist on a routine basis (such as weekly or monthly) to identify errors in data entry and to catch systematic issues in data collection quickly.   ·   For assay data, values below detection limit have been treated inconsistently in the past.  It is recommended that these values be recorded as half of the lower detection limit value.  For example, with a detection limit of <0.005 g/t gold, the value entered would be 0.0025.     Avino Silver & Gold Mines Ltd. 26-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               26.2.2   Geology Data and Interpretation   Tetra Tech has the following recommendations regarding Avino geology data and interpretation:   ·   During advancement of the drifts along the veins, it is recommended that the veins are sampled in the face after every round of excavation.   ·   All drillcore should be photographed before logging, and the face of all drifts should be photographed after every round of excavation (preferably once face sampling marks are visible).   ·   All geology logs should be entered into a digital database, including previously completed holes and any future holes.  The database should contain all intervals logged by mine geologists and include from-to values for all identified rock units as well as an appropriate rock code and rock description.   ·   Rock type names are inconsistently and sometimes incorrectly applied (see Section 12.1.3).  Logging procedures, including rock type identification, should be consistent between all geologists logging core.  On-site training is likely required to accomplish this, as well as closer monitoring and data management by a senior geologist.   ·   A stratigraphy of rocks on the Property should be developed, as previous work on the property geology suggest a greater diversity of rocks than is reflected in any of the Avino Mine geology logs or sections.  Establishing this should improve correlations between drillholes and may help identify additional targets for exploration on the Property.  In addition to consistent, detailed core logging, petrography and whole-rock geochemical analysis of drillcore will aid in correct identification of rock types.   26.2.3   Survey Data   Tetra Tech has the following recommendations regarding Avino downhole survey data:   ·   A multi-shot, non-magnetic instrument (Reflex Gyro or Reflex Maxibor) should be used for downhole surveys on all future drillholes on the Property.   ·   Survey measurements should be collected at a frequency of at least every 10 m down the hole, with the first measurement occurring at the collar and the final measurement within 10 m of the end of hole.   ·   Due to the potential for drillhole traces to be intersected by future mine workings, all drillholes should be capped and cemented to avoid becoming conduits for water.     Avino Silver & Gold Mines Ltd. 26-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               26.2.4   Specific Gravity Sampling and Analysis   Tetra Tech has the following recommendations for specific gravity sampling and analysis:   ·   The typical industry practice to determine specific gravity is using the water displacement method, which is generally more accurate than caliper measurement.  This method is recommended for all future specific gravity measurements on the Property.   ·   Samples should be sealed with wax prior to measurement.  The variation in specific gravity values from all rock types, and in particular values of less than 2.5 observed in areas, indicate that there is alteration or porosity/permeability that is not being reflected in the sample descriptions.  The easiest way to avoiding concerns about the lower-density values is to seal the samples with wax prior to measuring using the water displacement method.   ·   A specific gravity measurement should be collected from rock representative of the material in each assay sample from drillcore.   ·   Specific gravity measurements should be collected during underground channel sampling.  Given the current spacing of channel sampling, one specific gravity measurement every two or three channel lines would be sufficient.  The specific gravity sample does not have to be part of an assay sample but should be representative of the rock in the area.   ·   Specific gravity measurements should also be collected from a representative selection of country rock (waste rock) samples for each phase of exploration or mine development (including drilling, channel sampling, and drift development).   ·   Once a sufficiently large specific gravity database has been compiled, the local specific gravity can also be interpolated into the block model along with sample grades.   26.2.5   QA/QC Sampling   Tetra Tech has the following recommendations for QA/QC sampling:   ·   Industry standard procedures are for a minimum of one standard, blank, or duplicate to be inserted in the sample stream every 20 samples, and at least one each per drillhole.  In order to meet this standard, Avino should increase the frequency at which QA/QC samples are included in the sample stream for all assays collected on the Property.  These QA/QC samples are separate from those that the laboratory will process internally.   ·   This particularly applies to the San Gonzalo vein, where the QA/QC sample insertion rate is much lower than for the Avino vein, and where it appears QA/QC samples are not currently being included during underground channel sampling.     Avino Silver & Gold Mines Ltd. 26-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               ·   Avino should also be completing industry standard plots analyzing the performance of QA/QC samples, as per the examples in Section 12.1.4.  These plots should be updated as data is received in order to detect problems while there is an opportunity of re-running sample batches.   ·   The plots of standards indicate laboratory instrument calibration drift, suggesting that more frequent instrument calibration may be needed at the Inspectorate facility used by Avino.   ·   SRM Cu136 results suggest that there may be a lower degree of accuracy in low-grade silver and copper assays, which should be further investigated by Avino.   ·   Standards should be selected that include all elements of economic interest on the mine, as well as a low, medium, and high grade sample of these elements.   ·   The material from any locally-sourced blank should be sent to a number of laboratories to determine appropriateness for use as a blank for the elements of economic interest and to provide an upper limit for acceptable analyses.   ·   Any laboratory-certified blank should be certified for all elements of economic interest in the Avino mine.   26.2.6 Oxide and Sulphide Tailings Drilling   For the confidence in the Inferred Mineral Resource of oxide tailings to be improved, a drilling campaign should be carried out with suitable equipment (sonic drilling is recommended to recover unconsolidated material with variable moisture content). At the same time, the overlying deposit of sulphide tailings should be drilled. To achieve a nominal drill collar spacing of 50 m by 50 m, 90 holes with an average length of 20 m would be required for a total of 1,800 m of drilling.   Additional surface drilling on the Avino and San Gonzalo Veins is not currently planned by Avino. Drilling on the San Gonzalo Vein using Avino’s underground diamond drill is planned as drift development progresses, with the goal of further definition of the San Gonzalo vein and in particular of high grade areas.   26.2.7 Resource Estimate   A resource estimate for the sulphide tailings should be completed for mine planning purposes, in addition to an updated oxide tailings resource estimate following the drilling program recommended above (Section 26.1.6).   There are no plans for surface drilling at either the San Gonzalo or Avino veins in the immediate future. However, Avino intends to use underground access to diamond drill for further definition work at San Gonzalo in the areas of interest such as the high-grade zones and areas rich in lead and zinc mineralization. Such drilling could also be used to convert Inferred mineral inventory to Indicated status, especially in areas of attractively higher grades.   In subsequent resource models, lead and zinc should be estimated along with Au, Ag and Cu. Work needs to be completed to ensure adequate recovery of base metals in the concentrate. This recovery data will need to be factored into any Ag_Eq calculations.   Both the Avino and San Gonzalo veins contain mineral resources estimated at a classification level of Indicated or higher. As such, further drilling would not be required to include these resources in economic analyses at a prefeasibility or feasibility level. Further drilling would be required in order to include any Inferred resources in these studies, however.     Avino Silver & Gold Mines Ltd. 26-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               26.3 Process   26.3.1 Avino and San Gonzalo Veins   For the next phase of the study, Tetra Tech recommends that Avino submit representative samples from both the Avino and San Gonzalo veins for further metallurgical tests, including base metals (Cu, Pb and Zn).   26.3.2 Oxide and Sulphide Tailings   Based on the conclusions within the components of this technical report, it is recommended that the following tasks could be executed for verifying the material within the tailings:   ·   drill the surface of both tailings dam areas to determine the volumes and bulk density of each of the oxide and sulphide tailings material   ·   take sufficient amounts of samples from both oxide and sulphide tailings to obtain representative samples for assay and metallurgical test work to confirm the grade of the deposit and the recovery of silver and gold from the heap leach process   ·   use the metallurgical results from the test work program to confirm/define the duration of leaching on the pad, the reagent consumption values and the silver and gold precipitation efficiencies   ·   use the metallurgical results from the metallurgical test work program to develop a heap leach flowsheet   ·   based on accurate assay and reproducible metallurgical test work data, prepare an economic analysis for the retreatment of the oxide tailings dam material, the sulphide tailings dam material, and for the treatment of both oxide and sulphide tailings material   26.3.3 Refurbished Equipment   The suitability and/or the possibility of refurbishing the existing equipment at the Avino Mine plant site needs to be evaluated more closely. Some water pumps and possibly some conveyors could be returned to service, and some of the existing tanks could be used for water storage/supply. However, it does not appear as if any other equipment could be salvaged and/or refurbished for use in a heap leach plant. The general availability of used equipment from other locations in the Durango district, or in Mexico, would need to be investigated.   26.3.4 Assay Laboratory Equipment   The assay laboratory would require re-equipping with suitable equipment. The availability of suitable, used laboratory equipment and facilities is not known.     Avino Silver & Gold Mines Ltd. 26-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               26.3.5 Sulphide Tailings   The option of whether the sulphide tailings should be re-treated on the heap or relocated and dumped elsewhere, while possibly being treated for environmental remediation, is not known at this stage. The absence of reliable sulphide tailings dump metallurgical information makes quantification of this option difficult. A detailed trade-off study should be undertaken to determine whether the re-treatment of this material would contribute to the profitability of the Project. However, at this stage only limited metallurgical test data is available since no detailed metallurgical test work was undertaken on this material during the MMI 2004 test program.   For the purposes of this report, it will be assumed that the sulphide tailings will be moved to another location northeast of the proposed site for the leach pad. Again, it should also be mentioned that this proposed site is very close to the town of San Jose de Avino, and this may result in objections from the local community.   26.4 Environmental   The cost of permitting has not been considered at this stage of the Project. Government agencies should be consulted prior to the permitting process to determine if current permits for the San Gonzalo Mine can been revised. The cost of expropriating agricultural land for the leach pad, and the cost of water which would have to be redirected to the heap leach project but which is currently used for agricultural purposes have also not been assessed. Once the mine plan, site layout and tailings management plan are further along and have definitive locations, the cost of these factors should be addressed. The cost for monitoring environmental effects post mine closure needs to be estimated.   A detailed trade-off study should be undertaken to characterize current conditions of the sulphide tailings and to determine whether the re-treatment of this material would contribute to the profitability of the Project.   There is potential for the water from the underground workings to be acid producing (Slim 2005d). Treatment of water from the underground workings may be required prior to use depending on the water quality.   26.5 Mining   The following mining work is recommended:   ·   It is recommended that the deposit be accessed via ramp and not shaft.  The current 4 m by 4 m ramp from the portal at 2282 m elevation should be extended to depth and become the haulage and access ramp.   ·   The current ramp design between levels 2 and 3 should be redesigned as it is currently located too close to the orebody.   ·   The shrinkage method appears suitable and should be continued.  The shrinkage method may also be used in wider ore.     Avino Silver & Gold Mines Ltd. 26-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               ·   The sublevel spacing is acceptable and may be maintained at the nominal 43 m.   ·   Rib and sill pillars should be left between stopes.   ·   Reconciliation should be undertaken with the resource model to estimate dilution and recoveries and productivities from the test stopes for future mine planning.   ·   A mine development and stope layout and production plan should be prepared to achieve production targets of 250 t/d.   ·   A forced ventilation circuit is needed for the continuing ramp development.  Current ventilation is natural only and appears to be poor.   ·   In 3 m and 4 m wide development 1.8 m long support is required instead of 1.2 m long split sets that were observed during the visit.   ·   Split sets are not recommended for the ramp, but a resin or cement grouted bolt should be used for permanent excavations.   ·   Installation of a trough at the surface pump discharge is recommended with a v-notch to monitor the inflow rate of water underground.   ·   Safety belts should be installed and in use at all times for all mine equipment.   ·   Rescue stations should be installed at appropriate locations and clearly marked, and signage should exist throughout the mine.   26.6 Project Development   Tetra Tech recommends that a preliminary economic assessment be completed for the entire Property, including the Avino vein, the San Gonzalo vein, the oxide tailings, and the sulphide tailings (including a resource estimate for the sulphide tailings and an updated resource estimate for the oxide tailings, as outlined in Section 26.1.8).   26.7 Project Schedule   A suggested high-level schedule of the oxide tailings retreatment project execution plan has been prepared. This schedule is provided in Figure 26.1     Avino Silver & Gold Mines Ltd. 26-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Figure 26.1Tailings Retreatment Project Suggested High-level Schedule             Avino Silver & Gold Mines Ltd. 26-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               27.0  REFERENCES   Avino Silver & Gold Mines Ltd., 2013a. Avino May Production Report June 06, 2013. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2013b. Management Discussion and Analysis for the Three Months Ended March 31, 2013. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2013c. Avino Q1/March Production Report April 05, 2013. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2013d. Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2013 and 2012. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2012. Consolidated Financial Statements for the years ended December 31, 2012, 2011, and 2010. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2011a. News Release: Avino Reports Results of San Gonzalo Bulk Sample July 11, 2011. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2011b. Consolidated Financial Statements for the years ended December 31, 2011 and 2010. Retrieved July 17, 2013 from www.avino.com.   Avino Silver & Gold Mines Ltd., 2001. Internal Report – Avino Operating Records, October 2001.   Bannon, J.F., 1970. The Spanish Borderlands Frontier 1513–1821, Albuquerque: University of New Mexico Press, p. 29, 53–54   Benitez, Sanchez, 1991. Memorandum: Informe Final de la Cubicacion de Presa de Jales. Prepared for Ing. Rene Cuellar Torres, Cia Minera Mexicana de Avino, S.A. de C.v. June 6, 1991, 5 pages.   Bermúdez Fernández, Jesús, 2012. Legal agreement between Minerales de Avino, Sociedad Anónima de Capital Variable and Compañía Minera Mexicana de Avino, Sociedad Anónima de Capital Variable on the La Platosa Concession. Volume seven hundred and twenty-six/mbq* number fifteen thousand one hundred and ninety-seven. February 18, 2012, 14 pages.   Emsley, J., 2003. Nature’s Building Blocks: an A-Z Guide to the Elements. Oxford University Press, 538 pages.     Avino Silver & Gold Mines Ltd. 27-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Gallegos, J.I., 1960. Durango Colonial, 1563–1821, Mexico City: Editorial Jus, p. 78.   González Olguin, Juan Manuel, 2012. Current title opinion prepared by Bufete González Olguin SC Law Firm for Avino Silver and Gold Mines, Ltd. April 4, 2012, 29 pages.   Gunning, D., 2009. Resource Estimate on the San Gonzalo Vein – A Part of the Avino Mine, Durango, Mexico, for Avino Silver and Gold Mines Ltd. Prepared by Orequest. Effective date August 31, 2009.   Hall, R., 2006. Technical Report: Tailings Retreatment – Process Option. Prepared by Ron Hall, Wardrop Engineering Inc. for Avino Silver & Gold Mines Ltd. March 31, 2006   Huang, J., 2003. Flotation and Cyanidation Scoping Tests and Specific Gravity. Project No. 0302303. Report prepared by John Huang, Process Research Associates Ltd. for Bryan Slim, MineStart Management Inc. March 28, 2003.   Huang, J. and Tan, G., 2005. Metallurgical Test Work on Avino Tailings, Durango, Mexico. Project No, 0406407. Report prepared by John Huang and Gie Tan, Process Research Associates Ltd. for Bryan Slim, MineStart Management Inc. March 28, 2005.   Infomine Inc., 2010 Mine & Mill Equipment Costs: An Estimator's Guide. InfoMine Inc. http://costs.infomine.com. November 2010.   Lipton, I.T., 2001. Measurement of Bulk Density for Resource Estimation. In: Mineral Resource and Ore Reserve Estimation – The AusIMM Guide to Good Practice (ed: A.C. Edwards), pp 57-66. The Australasian Instiute of Mining and Metallurgy: Melbourne.   Paulter, J., 2006. Regional Exploration Evaluation and Recommendations. Unpublished internal report for Avino.   Secretaría de Medio Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources), 2008a. Delegación Federal Durango, Subdelegación de Gestión para la Protección Ambiental y Recursos Naturales. Resolución en material de Impacto Ambiental para el proyecto: “Mina San Gonzalo”, Mpio de Pánuco de Coronado, Dgo. Oficio No. SG/130.2.1.1./001506, Bitácora No. 10/MP-0104/06/08, Clave Sinat: 10DU2008MD024, Clave Estatal: 10DU08M0521. Victoria de Durango, Durango. August 18, 2008.   Secretaría de Medio Ambiente y Recursos Naturales (Ministry of Environment and Natural Resources), 2008b. Delegación Federal Durango, Subdelegación de Gestión para la Protección Ambiental y Recursos Naturales. Unidad de Aprovechamiento y Restauración de Recursos Naturales. Se Autoriza por excepción Cambio de Utilización de Terreno Forestal a Infraestructura Minera. No. de Oficio: SG/130.2.2./001835; No. de bitácora: 10/DS-0265/06/08. Durango, Durango. September 17, 2008.     Avino Silver & Gold Mines Ltd. 27-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Slim, B., 2003. Tailings Valuation. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. November 2003.   Slim, B., 2005a. Preliminary Feasibility. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. May 2005.   Slim, B., 2005b. Tailings Valuation. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. May 2005.   Slim, B., 2005c. A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. July 21, 2005.   Slim, B., 2005d. A Tailings Resource. Prepared for Avino Silver & Gold Mines Ltd. Report prepared by Bryan Slim, MineStart Management Inc. October 25, 2005.   Tetra Tech, 2012. Technical Report on the Avino Property. Prepared for Avino Silver & Gold Mines Ltd. Effective Date: July 24, 2012. www.sedar.com   VSE, 1977. Vancouver Stock Exchange Review. September 1979.     Websites   Avino Annual Reports http://www.avino.com/new/history.asp?ReportID=516318   Index Mundi 2011 http://www.indexmundi.com/   World Climate http://www.worldclimate.com/       Avino Silver & Gold Mines Ltd. 27-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.0   CERTIFICATES OF QUALIFIED PERSONS   28.1   Jacques Ouellet, Ph.D., P.Eng.   I, Jacques Ouellet, Ph.D., P.Eng., of Vancouver, British Columbia, do hereby certify:   ·   I am a Divisional Manager Mining Engineering with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of Laval University (B.Sc.A. Geological Engineering, 1983).  I am a member in good standing of the Association of Professional Engineers and Geoscientists of Saskatchewan (#15140), l'Ordre des ingénieurs du Québec (#38331), and the Association of Professional Engineers and Geoscientists of Yukon (#2013).  My relevant experience is 25 years in various mining projects, studies and designs mainly in North America, both in underground mining and open pit mining.  I was the lead mining engineer for Cameco’s McArthur River Operation project in Saskatchewan and the lead mining engineer for BHP Billiton’s feasibility study for a new greenfield potash mine project in Saskatchewan.  I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).   ·   I have not completed a personal inspection of the Property that is the subject of this Technical Report.   ·   I am responsible for Sections 1.6, 1.10.4, 15.0, 16.0, 25.4, 26.5 and 28.1 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have prior involvement with the Property that is the subject of the Technical Report.  I co-authored the report entitled “Technical Report on the Avino Property” and dated July 24, 2012.   ·   I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.       Avino Silver & Gold Mines Ltd. 28-1 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia   Original document signed and sealed by Jacques Ouellet, Ph.D., P.Eng.   Jacques Ouellet, Ph.D., P.Eng. Divisional Manager Mining Engineering Tetra Tech WEI Inc.         Avino Silver & Gold Mines Ltd. 28-2 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.2   Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo.   I, Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo., of Toronto, Ontario, do hereby certify:   ·   I am a Lead Resource Geologist with Tetra Tech WEI Inc., with a business address at 900-330 Bay Street, Toronto, Ontario, M5H 2S8.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of Acadia University (B.Sc. 1981) and University of Adelaide (Ph.D. 1990).  I am a member in good standing of the Australasian Institute of Mining and Metallurgy (#11212), and I am registered as a Chartered Professional in Geology with the Australasian Institute of Mining and Metallurgy since 2004.  I am a member in good standing of the Association of Professional Geoscientists of Ontario, License #1839 since 2010.  My relevant experience with respect to deposit geology, ore body modelling and resource estimation includes 10 years with WMC Resources and Gold Fields Ltd as an Extensional Exploration Geologist, Senior Project Geologist, Resource Evaluation Geologist and Senior Resource Evaluation Geologist at the St Ives Gold Mine.  I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”) under the Accepted Foreign Associations and Membership Designations (Appendix A).   ·   I have not completed a personal inspection of the Property that is the subject of this Technical Report.   ·   I am responsible for Sections 14.1 to 14.12 and 28.2 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have no prior involvement with the Property that is the subject of the Technical Report.   ·   I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.   Signed and dated this 19th day of July, 2013 at Toronto, Ontario   Original document signed and sealed by Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo.   Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo. Lead Resource Geologist Tetra Tech WEI Inc.         Avino Silver & Gold Mines Ltd. 28-3 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.3   Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM   I, Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM, of Vancouver, British Columbia, do hereby certify:   ·   I am a Chief Geologist with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of the University of Natal, (B.Sc Hons. Geology, 1978).  I am a registered Professional Natural Scientist (Geological Scientist) in good standing of the South African Council for Natural Scientific Professions (South Africa, 400295/87).  My relevant experience is 33 years of experience in operations, mineral project assessment and I have the experience relevant to Mineral Resource estimation of metal deposits.  I have estimated Mineral Resources for greenstone-hosted gold, diatreme complex epithermal gold deposits, porphyry copper-gold and shear zone-hosted deposits.  I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”) under the Accepted Foreign Associations and Membership Designations (Appendix A).   ·   My most recent personal inspection of the Property that is the subject of this Technical Report was June 7 to 8, 2012, inclusive.   ·   I am responsible for Sections 1.1, 1.2, 1.3, 1.4, 1.10.1, 4.0 to 11.0, 12.4, 12.5, 14.13, 14.14, 23.0, 25.1, 25.2, 26.2, 27.0, and 28.3 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have prior involvement with the Property that is the subject of the Technical Report.  I co-authored the report entitled “Technical Report on the Avino Property” and dated July 24, 2012.   ·   I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.   Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia   Original document signed and sealed by Michael F. O’Brien, M.Sc., Pr.Sci.Nat., FGSSA, FAusIMM, FSAIMM   Michael F. O’Brien, M.Sc., Pr.Sci.Nat., FGSSA, FAusIMM, FSAIMM Chief Geologist Tetra Tech WEI Inc.         Avino Silver & Gold Mines Ltd. 28-4 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.4   Margaret Harder, M.Sc., P.Geo.   I, Margaret Harder, M.Sc., P.Geo., of Vancouver, British Columbia, do hereby certify:   ·   I am a Geologist with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of the University of Saskatchewan (B.Sc. in Geology, 2002) and the University of British Columbia (M.Sc. in Geology, 2004).  I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#32139).  I have practiced my profession in geology for a total of eight years with experience in exploration, advanced evaluation, operations, resource estimation, and technical report writing.  I have experience in stratiform manganese deposits (Artillery Peak Project in Arizona), polymetallic volcanogenic massive sulphide deposits including copper, lead, zinc, silver, and gold (Kudz Ze Kayah Project in Yukon) and epithermal silver/gold vein deposits (Guanajuato Project in Mexico).  I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”).   ·   I have not completed a personal inspection of the Property that is the subject of this Technical Report.   ·   I am responsible for Sections 12.1, 12.2, 12.3, and 28.4 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have no prior involvement with the Property that is the subject of the Technical Report.   ·   I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.   Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia.   Original document signed and sealed by Margaret Harder, M.Sc., P.Geo.   Margaret Harder, M.Sc., P.Geo. Geologist Tetra Tech WEI Inc.         Avino Silver & Gold Mines Ltd. 28-5 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.5   Hassan Ghaffari, P.Eng.   I, Hassan Ghaffari, P.Eng., of Vancouver, British Columbia, do hereby certify:   ·   I am a Manager of Metallurgy with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of the University of Tehran (M.A.Sc., Mining Engineering, 1990) and the University of British Columbia (M.A.Sc., Mineral Process Engineering, 2004).  I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#30408).  My relevant experience includes 23 years of experience in mining and plant operation, project studies, management, and engineering.  As the lead metallurgist for the Pebble Copper/Gold Moly Project in Alaska, I am coordinating all metallurgical test work and preparing and peer reviewing the technical report and the operating and capital costs of the plant and infrastructure for both the scoping and prefeasibility studies.  For the Ajax Copper-Gold Project in BC, I was the Project Manager responsible for the process, infrastructure and overall management of the 60,000 t/d mill.  As well, I was the Project Manager responsible for ongoing metallurgical test work and technical assistance for the La Joya Project Copper/Silver/Gold Project in Durango, Mexico.  I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”).   ·   My most recent personal inspection of the Property that is the subject of this Technical Report was on March 30, 2011 for one day.   ·   I am responsible for Sections 1.5, 1.8, 1.10 (except 1.10.1, 1.10.3 and 1.10.4), 2.0, 3.0, 13.0, 17.0, 18.0, 19.0, 21.0, 24.0, 25.3, 25.5, 26.1, 26.3, 26.6, 26.7, 27.0, and 28.5 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have prior involvement with the Property that is the subject of the Technical Report.  I co-authored the report entitled “Technical Report on the Avino Property” and dated July 24, 2012.   ·   I have read the Instrument and the sections of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.       Avino Silver & Gold Mines Ltd. 28-6 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia.   Original document signed and sealed by Hassan Ghaffari, P.Eng.   Hassan Ghaffari, P.Eng. Manager of Metallurgy Tetra Tech WEI Inc.         Avino Silver & Gold Mines Ltd. 28-7 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.6   Sabry Abdel Hafez, Ph.D., P.Eng.   I, Sabry Abdel Hafez, Ph.D., P.Eng., of Vancouver, British Columbia, do hereby certify:   ·   I am a Senior Mining Engineer with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of Assiut University (B.Sc Mining Engineering, 1991; M.Sc. in Mining Engineering, 1996; Ph.D. in Mineral Economics, 2000).  I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#34975).  I have more than 19 years of experience in the evaluation of mining projects, advanced financial analysis, and mine planning and optimization.  My capabilities range from the conventional mine planning and evaluation to the advanced simulation-based techniques that incorporate both market and geological uncertainties.  I have recently been involved in the technical reports for the Copper Fox’s Schaft Creek project feasibility study, Pretium Resources’ Brucejack project feasibility study, AQM’s Zafranal PEA, Castle Resources’ Granduc project PEA study and Seabridge’s KSM project prefeasibility study.  I have been involved in the technical studies of several base metals, gold, coal, and aggregate mining projects in Canada and abroad.  I am a “Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).   ·   I have not completed a personal inspection of the Property that is the subject of this Technical Report.   ·   I am responsible for Sections 1.9, 22.0, 25.6, and 28.6 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have prior involvement with the Property that is the subject of the Technical Report.  I co-authored the report entitled “Technical Report on the Avino Property” and dated July 24, 2012.   ·   I have read the Instrument and the parts of the Technical Report that I am responsible for have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the parts of the Technical Report that I am responsible for contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.   Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia   Original document signed and sealed by Sabry Abdel Hafez, Ph.D., P.Eng.   Sabry Abdel Hafez, Ph.D., P.Eng. Senior Mining Engineer Tetra Tech WEI Inc.       Avino Silver & Gold Mines Ltd. 28-8 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico               28.7   Monica Danon-Schaffer, Ph.D., P.Eng.   I, Monica Danon-Schaffer, Ph.D., P.Eng., of Vancouver, British Columbia, do hereby certify:   ·   I am a Chemical Engineer, currently residing at 8545 Seascape Court, West Vancouver, BC.  I was employed until May 17, 2013 with Tetra Tech WEI Inc. with a business address at 800-555 West Hastings Street, Vancouver, British Columbia, V6B 1M1.   ·   This certificate applies to the technical report entitled “Technical Report on the Avino Property, Durango, Mexico”, dated July 19, 2013 (the “Technical Report”).   ·   I am a graduate of the University of British Columbia (Ph.D, Chemical and Biological Engineering, 2010), University of British Columbia (M.Eng. Civil Engineering, 1993), and the Universidad Iberoamericana (B.Sc. Chemical Engineering, 1988).  I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (#22768), Professional Engineers Ontario (#100045213), Association of Professional Engineers and Geoscience of Saskatchewan (#20307), Association of Professional Engineers of Yukon (#1655), Northwest Territories and Nunavut Association of Professional Engineers and Geoscientists (#L2018).  My relevant experience includes preparation of environmental risk assessments, evaluation of Equator Principles, environmental health and safety compliance audits and due diligence at mines, mine waste and management, as well as regulatory reviews.  I am a “Qualified Person” for the purposes of National Instrument 43-101 (the “Instrument”).   ·   I have not completed a personal inspection of the Property that is the subject of this Technical Report.   ·   I am responsible for Sections 1.7, 1.10.3, 20.0, 26.4, and 28.7 of the Technical Report.   ·   I am independent of Avino Silver & Gold Mines Ltd. as defined by Section 1.5 of the Instrument.   ·   I have prior involvement with the Property that is the subject of the Technical Report.  I co-authored the report entitled “Technical Report on the Avino Property” and dated July 24, 2012.   ·   I have read the Instrument and the sections of the Technical Report for which I am responsible have been prepared in compliance with the Instrument.   ·   As of the date of this certificate, to the best of my knowledge, information and belief, the sections of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.   Signed and dated this 19th day of July, 2013 at Vancouver, British Columbia.   Original document signed and sealed by Monica Danon-Schaffer, Ph.D., P.Eng.   Monica Danon-Schaffer, Ph.D., P.Eng. Chemical Engineer         Avino Silver & Gold Mines Ltd. 28-9 1251920100-REP-R0001-02 Technical Report on the Avino Property, Durango, Mexico          

                                                                                                                                                                                                                                                                                                                                                                                                                                      July 19, 2013 1251920100-COA-R0001-00   Subject   Consent of Qualified Person   I, Jacques Ouellet, Ph.D., P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Jacques Ouellet, Ph.D., P.Eng.   Signature of Qualified Person       Jacques Ouellet, Ph.D., P.Eng.   Print name of Qualified Person                             complex world     555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada      CLEAR SOLUTIONS ™   Tel  604.408.3788   Fax  604.408.3722    www.tetratech.com 1251920100-COA-R0001-00 Jacques Ouellet             July 19, 2013 1251920100-COA-R0002-00   Subject   Consent of Qualified Person   I, Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo.   Signature of Qualified Person       Robert Sinclair Morrison, Ph.D., MAusIMM (CP), P.Geo.   Print name of Qualified Person                         complex world     330 Bay Street, Suite 900, Toronto, Ontario M5H 2S8, Canada      CLEAR SOLUTIONS ™   Tel 416.368.9080   Fax 416.368.1963    www.tetratech.com 1251920100-COA-R0002-00 Robert Morrison             July 19, 2013 1251920100-COA-R0003-00   Subject   Consent of Qualified Person   I, Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM, consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM   Signature of Qualified Person       Michael F. O’Brien, M.Sc., Pr. Sci. Nat., FGSSA, FAusIMM, FSAIMM   Print name of Qualified Person                               complex world     555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada      CLEAR SOLUTIONS ™   Tel  604.408.3788   Fax  604.408.3722    www.tetratech.com 1251920100-COA-R0003-00 Michael O'Brien             July 19, 2013 1251920100-COA-R0004-00   Subject   Consent of Qualified Person   I, Margaret Harder, M.Sc., P.Geo., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Margaret Harder, M.Sc., P.Geo.   Signature of Qualified Person       Margaret Harder, M.Sc., P.Geo.   Print name of Qualified Person                                   complex world     555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada      CLEAR SOLUTIONS ™   Tel  604.408.3788   Fax  604.408.3722    www.tetratech.com 1251920100-COA-R0004-00 Margaret Harder               July 19, 2013 1251920100-COA-R0005-00 Subject   Consent of Qualified Person   I, Hassan Ghaffari, P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Hassan Ghaffari, P.Eng.   Signature of Qualified Person       Hassan Ghaffari, P.Eng.   Print name of Qualified Person                           complex world     555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada      CLEAR SOLUTIONS ™   Tel  604.408.3788   Fax  604.408.3722    www.tetratech.com 1251920100-COA-R0005-00 Hassan Ghaffari             July 19, 2013 1251920100-COA-R0006-00   Subject   Consent of Qualified Person   I, Sabry Abdel Hafez, Ph.D., P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.   Dated this 19th day of July, 2013     Original document signed and sealed by Sabry Abdel Hafez, Ph.D., P.Eng.   Signature of Qualified Person       Sabry Abdel Hafez, Ph.D., P.Eng.   Print name of Qualified Person                         complex world     555 West Hastings Street, Suite 800, Vancouver, British Columbia V6B 1M1, Canada      CLEAR SOLUTIONS ™   Tel  604.408.3788   Fax  604.408.3722    www.tetratech.com 1251920100-COA-R0006-00 Sabry Abdel Hafez           Monica Danon-Schaffer, Ph.D., P.Eng. 8545 Seascape Court West Vancouver, BC Email: monica.danonschaffer@gmail.com   July 22, 2013   Subject   Consent of Qualified Person   I, Monica Danon-Schaffer, Ph.D., P.Eng., consent to the public filing of the technical report titled “Technical Report on the Avino Property, Durango, Mexico”, and dated July 19, 2013 (the “Technical Report”) by Avino Silver & Gold Mines Ltd.   I also consent to any extracts from or a summary of the Technical Report in the news release, dated June 10, 2013, of Avino Silver & Gold Mines Ltd.   I certify that I have read the news release dated June 10, 2013 filed by Avino Silver & Gold Mines Ltd. and that it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible. Dated this 20th day of July, 2013     Original document signed and sealed by Monica Danon-Schaffer, Ph.D., P.Eng.   Signature of Qualified Person       Monica Danon-Schaffer, Ph.D., P.Eng.   Print name of Qualified Person         QP Consent Letter - Monica Danon-Schaffer    

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