Avino Announces Q3 2018 Production Results; Provides Corporate Update
ASM: TSX/NYSE American
Avino Silver & Gold Mines Ltd. T (604) 682 3701
Suite 900-570 Granville Street F (604) 682 3600
Vancouver, BC V6C 3P1 www.avino.com
October 15, 2018
AVINO ANNOUNCES Q3 2018 PRODUCTION RESULTS; PROVIDES CORPORATE UPDATE
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American, GV6: FSE, “Avino” or “the Company”) is pleased to
announce its third quarter, 2018 production results from its Avino property near Durango, Mexico.
Consolidated Production Highlights for Third Quarter, 2018 (Compared to Third Quarter, 2017)
Silver equivalent production decreased by 7% to 704,429 oz*
Gold production decreased by 18% to 2,204 oz
Silver production decreased by 7% to 342,151 oz
Copper production decreased by 10% to 992,271 lbs
* In Q3 2018, AgEq was calculated using metals prices of $ 15.00 oz Ag, $ 1213 oz Au and $ 2.77 lb Cu. In Q3 2017, AgEq was calculated
using metals prices of $17.45 oz Ag, $1,316 oz Au and $2.99 lb Cu.
“During the third quarter of 2018 , our production results were slight ly lower than anticipated; however, we are
very pleased that we have begun small -scale processing of newly -mined material from the San Luis area of the
Avino Mine through Mill Circuit 2. We feel this highlights that our expansion was well timed and running
smoothly.” said David Wolfin, President and CEO. “As we enter into the fourth quarter, we are on pace to
achieve our internally projected production levels for the full year, and w e remain focused on ensuring that we
are ready to run San Luis material through Mill Circuit 4 in the first quarter of 2019. Additionally, the Company
has undertaken a number of cost reduction initiatives during this time of low precious metal prices, whic h are
outlined further in this news release.”
Production Tables for Third Quarter, 2018 and Year to Date
Comparative production results from the third quarter, 2018 and the third quarter, 2017 are presented below:
* In Q3 2018, AgEq was calculated using metals prices of $15.00 oz Ag, $1213 oz Au and $2.77 lb Cu. In Q3 2017, AgEq was calcul ated
using metals prices of $17.45 oz Ag, $1,316 oz Au and $2.99 lb Cu.
Q3
2018
Q3
2017
Quarterly
Change % 2018 YTD 2017 YTD
Annual
Change
%
Total Silver Eq. Produced (oz) calculated* 704,429 760,756 -7% 2,099,980 2,063,573 2%
Total Gold Produced (oz) calculated 2,204 2,673 -18% 6,004 6,463 -7%
Total Silver Produced (oz) calculated 342,151 368,456 -10% 975,073 1,074,526 -9%
Total Copper Produced (Lbs) calculated 992,271 1,106,305 -7% 3,443,264 3,264,363 5%
N E W S R E L E A S E
October 15, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Q3 2018 Production Results; Provides Corporate Update
Page 2
Avino Mine Third Quarter, 2018 Production Results
Comparative figures for the third quarter, 2018 and the third quarter, 2017 for the Avino Mine are as follows:
Q3
2018
Q3
2017
Quarterly
Change
%
2018
YTD
2017
YTD
Yearly
Change
%
Total Mill Feed (dry tonnes) 81,502 117,862 -31% 279,674 351,802 -21%
Feed Grade Silver (g/t) 58 66 -12% 64 68 -6%
Feed Grade Gold (g/t) 0.52 0.70 -26% 0.57 0.58 -2%
Feed Grade Copper (%) 0.54 0.48 13% 0.60 0.47 28%
Recovery Silver (%) 84% 85% -1% 83% 85% -2%
Recovery Gold (%) 67% 70% -4% 68% 69% -1%
Recovery Copper (%) 88% 88% 0% 88% 89% -1%
Total Silver Produced (kg) 3,935 6,634 -41% 14,881 20,234 -26%
Total Gold Produced (g) 28,309 57,448 -51% 108,087 139,421 -22%
Total Copper Produced (Kg) 392,365 501,812 -22% 1,486,058 1,480,692 0%
Total Silver Equivalent Produced (oz) calculated* 360,018 542,846 -34% 1,369,580 1,494,245 -8%
* In Q3 2018, AgEq was calculated using metals prices of $15.00 oz Ag, $1213 oz Au and $2.77 lb Cu. In Q3 2017, AgEq was calcul ated using metals prices
of $17.45 oz Ag, $1,316 oz Au and $2.99 lb Cu.
During the third quarter, 2018 material mined from the Avino Mine (Elena Tolosa area) was processed using Mill
Circuit 3 as well as Mill Circuit 2 through mid -July. In the later portion of July, Mill Circuit 2 transitioned to
processing Historic Above Ground Stockpiles , and on September 24 th, M ill Circuit 2 began processing mined
material from the newly developed San Luis area of the Avino Mine.
Accordingly, processed tonnage from the E lena Tolosa area of the Avino Mine was down by 3 1% during the
quarter which is reflected in the lower silver, gold and copper production during the quarter. Silver and gold
feed grades decreased by 12 and 26% respectively while the copper increased by 13%. The v ariances of the
metal recoveries were not significant.
Processed tonnage from the San Luis area of the Avino Mine is not included in the Avino Mine production totals,
but is reflected in the consolidated figures. During the final week of September , 3,719 tonnes of San Luis
Material were processed using Mill Circuit 2 resulting in the production of 45 tonnes of bu lk concentrate
containing 119 Kg silver, 2,223 g gold and 6,538 Kg Copper or 12,583 oz AgEq. Production totals for the Historic
Above Ground Surface Stockpiles is reflected in a separate table below.
At the Avino Mine (Elena Tolosa area), underground advancement totaled 931 metres and 118,768 tonnes of
material were broken. At the San Luis area of the Avino Mine, underground advancement totaled 63 metres and
7,366 tonnes of material were broken.
October 15, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Q3 2018 Production Results; Provides Corporate Update
Page 3
San Gonzalo Mine Third Quarter, 2018 Production Highlights
Comparative figures for the third quarter, 2018 and the third quarter , 2017 for the San Gonzalo mine are as
follows:
Q3
2018
Q3
2017
Quarterly
Change %
2018
YTD
2017
YTD
Yearly
Change
%
Total Mill Feed (dry tonnes) 19,691 20,338 -3% 59,703 60,579 -1%
Feed Grade Silver (g/t) 226 281 -20% 238 262 -9%
Feed Grade Gold (g/t) 1.15 1.55 -26% 1.08 1.31 -18%
Recovery Silver (%) 78% 85% -8% 77% 83% -7%
Recovery Gold (%) 75% 82% -9% 75% 78% -4%
Total Silver Produced (kg) 3,461 4,826 -28% 10,959 13,188 -17%
Total Gold Produced (g) 17,086 25,698 -34% 47,934 61,603 -22%
Total Silver Equivalent Produced (oz) calculated* 155,990 217,910 -28% 475,499 569,328 -16%
* In Q3 2018, AgEq was calculated using metals prices of $15.00 oz Ag, $1213 oz Au and $2.77 lb Cu. In Q3 2017, AgEq was calcul ated using metals prices
of $17.45 oz Ag, $1,316 oz Au and $2.99 lb Cu.
The silver grade at San Gonzalo for Q2, 2018 decreased by 20%, and the gold grade decreased by 26% compared
to Q3, 2017, due to lower grades in the areas being mined during the quarter.
Tonnage broken for the quarter was 17,434 tonnes and underground development totalled 765 metres. Plant
availability for the second quarter, 2018 was 97%, and there were no shut downs other than normal scheduled
maintenance.
San Gonzalo is nearing the end of its mine life , thus the reduction in grade and metals produced is in line with
internal expectations.
Historic Above Ground Stockpiles
Q3
2018
2018
YTD
Total Mill Feed (dry tonnes) 88,733 133,797
Feed Grade Silver (g/t) 62 57
Feed Grade Gold (g/t) 0.45 0.40
Feed Grade Copper (%) 0.15 0.15
Recovery Silver (%) 57% 58%
Recovery Gold (%) 52% 53%
Recovery Copper (%) 37% 35%
Total Silver Produced (kg) 3,127 4,370
Total Gold Produced (g) 20,931 28,490
Total Copper Produced (Kg) 51,184 69,244
Total Silver Equivalent Produced (oz) calculated* 175,837 242,318
* In Q3 2018, AgEq was calculated using metals prices of $15.00 oz Ag, $1213 oz Au and $2.77 lb Cu. In Q3 2017, AgEq was calcul ated
using metals prices of $17.45 oz Ag, $1,316 oz Au and $2.99 lb Cu.
October 15, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Q3 2018 Production Results; Provides Corporate Update
Page 4
During the startup, testing and commissioning phase of Mill Circuit 4, which is expected to last through the end
of 2 018, feed has been, and will continue to come from Historic Above G round Avino Mine stockpiles. Once
development is complete, Mill Circuit 4 will transition to processing newly -mined mill feed from the Sa n Luis
area of the Avino Mine.
The Historic Above G round Stockpiles were also processed using Mill Circuit 2 during the second half of July
through September 24 th, at which time Mill Circuit 2 transitioned to processing newly mined material from the
San Luis area of the Avino Mine.
Avino Mine Expansion (San Luis Area)
The San Luis area of the Avino Mine is accessed through a separate portal located approximately 2 km from the
main entrance of the Avino Mine (Elena Tolosa area). Current resources at San Luis were included in the most
recent resource estimate on the Avino property, which can be found in Avino’s news release dated February 21,
2018 on Avino’s website and under the company’s profile on the SEDAR system. The news release was also filed
with the SEC on Form 6-K.
Work at San Luis during the third quarter, 2018 currently focused on restoration of the main haulage ramp ,
which was completed during the quarter. With the haulage ramp now complete, work is underway to begin
drifting on levels 6 and 6.5 , followed by levels 7, 7.5, 8, 8.5 and 9. Most of these areas were partially developed
during the 1980’s and 90’s prior to the mine’s closure.
Zinc Circuit
The Company continued its testing program for recovery of precious me tals and zinc from the San Gonzalo
tailings. In the third quarter, 2018 the Company produced 179 dry tonnes of low grade zinc concentrate grading
670 g/t silver, 3.95 g/t gold and 8.36% zinc, for an additional 8,212 AgEq ounces. So far in 2018 the Company has
produced 611 dry tonnes of low grade zinc concentrate grading 1.155 g/t silver, 5.87 g/t gold and 10.03% zinc
for a total of 43,582 AgEq ounces. As this product has been marketed and sold, the testing program will
continue.
Corporate Update
The Company recently raised US$4.6 million by way of an underwritten public offering during a very difficult
precious metals environment. For detailed information on the financing, please click on the attached press
release dated Septem ber 25, 2018. “Avino Announces Closing Of US$4.6 Million Underwritten Public Offer ing,
Including the Partial Exercise of Underwriters' Overallotment Option”.
The funds raised have been allocated to alleviate financial constraints that were caused by a variety of items
including but not limited to: significantly lower metals prices, t he cost of the expansion at the Avino Mine which
we have funded using cash reserves rather than debt, cash flow postponement due to an unforeseen delay in
shipping of concentrates, and the construction of buttresses for the Tailings Storage Facility in Mexico to extend
its life by 3 years, which was not included in the 2018 budget.
October 15, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Q3 2018 Production Results; Provides Corporate Update
Page 5
Avino has worked to keep production costs and cash costs competitive and the Company is committed to
vigorously protecting our cost models. Further, while we continue to experience challenges in the mining sector,
Management has commenced cost reduction initiatives that span the Company, and call for reduction in capital,
operating, and administrative costs in Mexico, British Columbia, and the corporate offices in Vancouver. Cost
reduction measures include temp orarily postponing exploration in Mexico, postponing the paste backfill
decision in Mexico, as well as reducing general and administrative costs through Investor Relations initiatives
and marketing. The fully-funded exploration program will continue at Bralorne.
These strategic changes will help to reduce costs in all areas of the business , as well as conserve cash, increase
efficiencies, and preserve our profitable operations.
Quality Assurance/Quality Control
Mill assays are performed at the Avino property’s on -site lab. Check samples are sent to SGS Labs in Durango,
Mexico for verification. All concentrate shipments are assayed by one of the following independent third party
labs: AHK, and Inspectorate in the UK and LSI in the Netherlands.
Qualified Person(s)
Avino's Mexican projects are under the supervision of Jasman Yee P.Eng, Avino director, who is a qualified
person within the context of National Instrument 43 -101. He has reviewed and approved the techn ical data in
this news release.
About Avino
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico
and Canada employing close to 600 people. Avino produces from its wholly owned Avino and San Gonzalo Mines
near Durango, Mexico, and is currently planning for future production at the Bralorne Gold Mine in British
Columbia, Canada. The Company’s gold and silver production remains unhedged. The Company’s mission and
strategy is to create shareholde r value through its focus on profitable organic growth at the historic Avino
Property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties.
Avino is committed to managing all business activities in an environment ally responsible and cost -effective
manner, while contributing to the well-being of the communities in which we operate.
ON BEHALF OF THE BOARD
“David Wolfin”
David Wolfin
President & Chief Executive Officer
Safe Harbor Statement - This news release contains “forward-looking information” and “forward -looking statements” (together, the “forward looking
statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including the updated
mineral resource estimate for the Company’s Avino Property located near Durango in west -central Mexico (the “Property”) with an effective date of
January 31, 2018 prepared for the Company, and reference to Measured, Indicated, Inferred Resources referr ed to in this press release. These forward -
looking statements are made as of the date of this news release and the dates of technical reports, as applicable. Readers ar e cautioned not to place
undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward -looking statements are based will occur.
While we have based these forward-looking statements on our expectations about future events as at the date that such statements were prepared, the
statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause
events or outcomes to differ materially from those expressed or implied by such forward -looking statements. No assurance can be given that the
Company’s Property does not have the amount of the mineral resources indicated i n the updated report or that such mineral resources may be
economically extracted.
October 15, 2018 – Avino Silver & Gold Mines Ltd. – News Release
Avino Announces Q3 2018 Production Results; Provides Corporate Update
Page 6
Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copp er, changing foreign
exchange rates and actions by government authorities, uncertainties associated with legal proceedings and neg otiations and misjudgments in the course
of preparing forward -looking information. In addition, there are known and unknown risk factors which could cause our actual results, performance or
achievements to differ materially from any future results, perform ance or achievements expressed or implied by the forward -looking statements. Known
risk factors include risks associated with project development; the need for additional financing; operational risks associat ed with mining and mineral
processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environment al liability
claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers , directors or promoters with certain
other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the our common shar e price and volume; tax
consequences to U.S. investors; and other risks and uncertainties. Al though we have attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be no assurance that forward -looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. We are under no obligation to update or alter any forward -looking statements except as required under applicable securities
laws.
Neither the TSX nor its Regulation Services Provider (as that term is de fined in the policies of the TSX) accepts responsibility for the adequacy or accuracy
of this release.