Asm 6262013


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Asm 6262013

  1. 1. June 2013
  2. 2. Cautionary Disclaimer:Forward-Looking StatementsSafe Harbour Statement - This presentation contains "forward-looking information" and "forward-looking statements" (together, the "forward looking statements") within themeaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including our belief as to the extent and timing of various studiesincluding the PEA, and exploration results, the potential tonnage, grades and content of deposits, timing and establishment and extent of resources estimates. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. Readers are 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 orthat plans, intentions or expectations upon which the forward-looking statements are based will occur. While we have based these forward-looking statements on ourexpectations 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 torisks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-lookingstatements.Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold and silver, changing foreign exchange rates and actions bygovernment authorities, uncertainties associated with legal proceedings and negotiations 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, performance orachievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; the need for additional financing;operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreigncountries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain of our officers, directors or promoters ofwith certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the our common share price and volume; tax consequences toU.S. investors; and other risks and uncertainties. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materiallyfrom 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 canbe 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 asrequired under applicable securities laws.Cautionary Note to United States Investors - The information contained herein and incorporated by reference herein has been prepared in accordance with the requirements ofCanadian securities laws, which differ from the requirements of United States securities laws. In particular, the term "resource" does not equate to the term "reserve". TheSecurities Exchange Commissions (the "SEC") disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicatedmineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by SEC standards,unless such information is required to be disclosed by the law of the Companys jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S. investorsshould also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility.Disclosure of "contained ounces" is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does notconstitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.Mr. Chris Sampson, P. Eng (Consulting Geologist) and Mr. Jasman Yee P.Eng (Avino Director)are the Qualified Persons for the Company as required by NI 43-101. Thesequalified persons have reviewed the technical information concerning the properties contained in this power point presentation for accuracy and have authorized itsdisclosure. The Company expressly disclaims any obligation to update any forward-looking statements.2
  3. 3.  Mexico – The world’s largest silver producer Near Durango (pop 630,000) Located in Sierra Madre silver/gold belt Excellent infrastructure Access to highly-skilled labor Geopolitically secure Long-term surface agreements on claims Year-round access3
  4. 4. The Avino Mine was foundedby Spaniards in 1558 and was one of thefirst Spanish mines in Mexico4The Avino deposit first was discovered by Spanish nobleman, Juan deTolosa and later developed by Captain Francisco Ibarra of Cortez’sarmy.
  5. 5. By the end of the 18th Century Avino hosted the largest open cut mine inthe world. The mine was owned by a British company listed on theLondon Stock Exchange. At that time the company was organized with acapital of £1,000,000 in shares of £1 each5
  6. 6. Avino acquired the project in 1974 and produced silver,gold, copper and lead for 27 years.16 M oz of silver96,000 oz of gold24Million lbs of copperProven Track RecordThe vein was never mined out, production ceasedin 2001 due to low metals prices and the closure ofa key smelter6
  7. 7. 5. Continue to explore regional targets on the property andconsider acquisition opportunities.San Gonzalo VeinExplorationAvino’s PlanTailingsAvino Vein1. Increase profitable mining operations at San Gonzalo by decreasingoperating costs and improving efficiency;4. Continue to review and develop plans to process the oxide tailingsresource left from historic milling operations;3. Develop the Avino mine for commercial production commencing in2014;7Surface Stockpiles2. Increase mill throughput using the new circuit (“Circuit 2”) that wentonline in April 2013;
  8. 8. 32184
  9. 9. 9ResourcesResourceCategoryDepositCut-off AgEq*TonnesContained Metal GradeAg_Eq Ag Au Cu Ag_Eq Ag Au Cu(oz) (oz) (oz) (t) (g/t) (g/t) (g/t) (%)MeasuredSanGonzaloSystem150 71,416 914,791 759,801 3,288 N/A 398 331 1.432 N/ATotal Measured - AllDeposits71,416 914,791 759,801 3,288 N/AIndicatedAvinoSystem100 4,253,968 23,838,629 10,835,338 72,207 30,914 174.3 79.2 0.528 0.727IndicatedSanGonzaloSystem150 222,407 2,763,069 2,043,514 15,263 N/A 386 286 2.134 N/ATotal Indicated - AllDeposits4,476,375 26,601,698 12,878,852 87,470 30,914Total Measured &Indicated – All Deposits4,547,791 27,516,489 13,638,653 90,758 30,914InferredAvinoSystem100 3,220,896 16,262,944 7,068,831 75,858 17,719 157 68.3 0.733 0.55InferredSanGonzaloSystem150 1,085,276 10,494,843 8,158,834 49,549 N/A 300.8 233.8 1.42 N/AInferredOxideTailings50* 2,340,000 N/A 6,660,000 39,530 N/A N/A 91.3 0.54 N/ATotal Inferred - AllDeposits6,646,172 26,757,787 21,887,665 164,937 17,719Note: Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may bematerially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade ofreported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources asan Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineralresource categoryThe effective dates of the resource estimates are June 10, 2013 for San Gonzalo and Avino Mines, while the effective date forthe Oxide Tailings is July 24, 2012, but it is still consideredcurrent. T he base case scenario used in the estimation assumes a silver price of $US20 which translates into a cut-off grade of 150 g/t silver equivalent at San Gonzalo and 150 g/t atthe Avino Mine.To calculate the above silver equivalent grades, Avino has assumed a price of silver of US $20 per oz., a price of copper of US $3.66 per lb. with a recovery rate of 85%for copper, and a price of gold of US $1,507 per oz., with 75% recovery rate for gold at the Avino Mine and 70% recovery rate for gold at the San Gonzalo Mine. The Avino and SanGonzalo mineral resource estimates were prepared by Robert Morrison, Ph.D., P.Geo., while the oxide tailings resource was prepared by Mike OBrien, M.Sc., P.Geo. Dr. Morrison andMr. OBrien are both employees of Tetra Tech, and independent of the Company, as defined by Section 1.5 of NI 43-101.
  10. 10. In 2006, management completed theacquisition of the remaining 51% interest in theAvino property. Hired technical personnel fromprevious operation Conducted 33,200 meters ofdrilling between 2006 and 2012 Re-furbished the facilities Raised $13 million between2003 and 2006 (non brokered) Numerous veins and prospectivesurface showings identified 80 Km of IP Geophysics 1,500 soil samples and Satellite imagery done Modern software (Gemcom)9.
  11. 11. 1. San Gonzalo Drilling HighlightsHole # FROM TO Width * Au (g/t) Ag (g/t) Ag (oz/t)Hole – 4 20.85 21.90 1.05 0.29 989 28.7Hole – 6 280.65 280.90 0.25 0.47 2,119 61.5Hole – 10 154.30 154.65 0.35 5.143 992 28.8Hole – 10 156.80 157.55 0.75 4.183 926 26.9Hole – 12 165.65 166.40 0.75 22.902 1,609 46.7Hole – 16 48.60 49.05 0.45 6.171 1,189 34.5Hole – 23 296.10 297.60 1.50 15.771 1,511 43.8Hole – 24 115.80 116.60 0.80 16.320 2,804 81.3Hole - 24 116.60 117.25 0.65 10.491 5,265 152.7Hole - 27 233.65 234.10 0.45 10.630 1,117 32.4 Independently verified preliminary metallurgical test work on coresamples of mineralized intercepts from deeper in the mine (sulphides)provided recoveries of 93% for silver and 90% for gold.*Down hole intersection lengths are reported, true widths are unknownGrade is King!11
  12. 12. Modernized Mill & Infrastructure (2008 – 2010)Decision to rebuild mill made in 2008 (During global financial crisis)Total rebuild completed in August 2010 for a 250 tpd mill operation Mill and surface infrastructure valued at US $40 million* Built 2 new core storage facilities Hired key personnel Full grid power restored in 2010 Commenced milling late August 201012* Independently verified by H.C. Osborne and Associates in a 2006 report titled ”Technical Review of The Avino Silver andGold Mines LTD Avino Mine”
  13. 13. 1. San Gonzalo MineThe best place to find a mine is where mining has occurred before!12
  14. 14. 141. San Gonzalo Production (Oct 2012 - May 2013)Oct2012Nov2012Dec2012Jan2013Feb2013Mar2013Apr2013May2013Average Daily Throughput(TPD)214 218 235 228 229 230 223 232Days of Operation 31 30 27 28 28 30 29 30Feed Grade Silver (g/t) 233 256 287 315 306 307 274 279Feed Grade Gold (g/t) 0.93 0.99 1.19 1.275 1.19 1.4 1.36 1.13Recovery Silver (%) 82 78 78 81 80 83 81 82Recovery Gold (%) 72 69 68 70 66 73 73 72Total Silver Produced (oz’s)calculated40,671 41,870 46,066 52,779 50,315 56,513 45,899 50,923Total Gold Produced (oz’s)calculated144 144 167 184 162 229 206 183Total Silver EquivalentProduced (oz’s)47,888 49,083 54,401 62,781 59,228 69,098 57,235 60,999Silver Equivalent Ounces*Silver equivalent for January was calculated using a 55:1 ratio for silver to gold. For the months of October, November and December, a 50:1 ratiowas used in the calculation. (The ratio was changed to reflect the more current gold and silver prices.) Mill production figures have not beenreconciled and are subject to adjustment with concentrate sales. Year-to-date and calculated figures may not add up due to rounding.010,00020,00030,00040,00050,00060,00070,00047,888 49,08354,40162,781 59,22869,09857,235 60,999
  15. 15. 151. San Gonzalo FinancialsAvino commenced commercial production starting on October 1st2012, select financial and operational highlights from Q4 2012 andQ1 2013 are outlined below:Q4 2012 Q1 2013Revenues reported for the quarter $2,255,376 $3,490,004Mine operating income $820,807 $1,040,847General and admin expenses $889,152 $1,151,904Earnings before income taxes $443,981 $87,978Earnings for the period $173,660 $87,978Earnings per share (Q4) $0.01 $0.00Processed ore for Q4 2012 19,539 tonnes 19,723 tonnesSilver ounces sold for Q4 2012 107,850 123,166Gold ounces sold for Q4 2012 413 475Cash cost per equivalent silver ounce $14.22 $14.74
  16. 16. 162. Second 250 tpd Circuit (Historic Avino Mine (ET) Surface Stockpiles)• In April 2013, Avino opened a second 250 tpd mill circuit to accommodate mill feedremaining from existing historic stockpiled material taken from the main Avino mine priorto shut down in 2001. (Estimated 7 months of production @ 250 tpd)• Once the historic stockpiled material is depleted, the circuit will be used to expandthrough-put at the San Gonzalo or the Main Avino mine if needed.**During the first 3 quarters of 2012, Avino processed the historic surface stockpiledmaterial using the existing 250 tpd circuit. The feed material graded approximately 70 g/tAg and 1 g/t Au generating the following results:010,00020,00030,00040,00050,00060,000Q1 Q2 Q328,87523,12950,074Calculated Silver Equivalent Ounces (Q1 – Q3 2012)*Silver equivalent ounces in 2012 werecalculated using prices of US$1,700per oz and US$34.00 per oz for goldand silver respectively and applied tothe recovered metal content of theconcentrates that was produced fromthe historic ET stockpiles**In Quarters 1 through 3 the Companyproduced and sold all of the bulkconcentrate generated from processing oldET stockpiles. During the first 3 quarters of2012, the Company was considered anexploration stage company, therefore theproceeds from the sale of this concentratewas charged as a reduction of mineralproperties and exploration costs.
  17. 17. 17Silver Equivalent Production Totals Since Jul 2012 (oz)010,00020,00030,00040,00050,00060,00070,00080,000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May14,91417,439 17,72147,888 49,08354,40162,78159,22869,09866,71975,022• July through Sept 2012 – Historic surface stockpiles are processed using circuit 1• Oct 2012 through March 2013 – Circuit 1 is used to process San Gonzalo material• April 2013 – Circuit 2 comes online to process historic surface stockpiles
  18. 18. Mill capacity is 1,500 tpd on three separate circuits 250 tpd circuit is online – San Gonzalo (circuit 1) 250 tpd circuit – ET surface stockpiles (circuit 2) 1,000 tpd circuit is being re-furbished, online 2014 (circuit 3) Most pieces already in place for expansion New mill components for expansion are being assembled US$5 million credit facility in place with Caterpillar for newequipment16
  19. 19. 3. Re-opening the Avino Mine New 20 year royalty agreement (3.5% NSR) on 3 concessions covering 80% ofthe Avino Vein Mine de-watering is estimated to be complete by Q4 201319Water table (downto level 9 as ofJune 24, 2013)
  20. 20. 203. Avino Mine Production Prior to Shut Down in 2001700,000800,000900,0001,000,0001998 1999 2000 2001876,621987,760912,726853,18305,00010,0001998 1999 2000 20018,7107,631 7,9535,08001,000,0002,000,0003,000,0004,000,0001998 1999 2000 20012,824,291 3,055,711 3,410,966 3,655,9611,400,0001,500,0001,600,0001,700,0001,800,0001998 1999 2000 20011,675,3431,751,4791,733,5651,539,988Silver (oz’s) Gold (oz’s)Copper (lbs) Silver Equivalent (oz’s)*• The Avino mine shut down due to low metals prices and the closure of a keysmelter part way through 2001.• When operations resume in 2014, Avino will be processing Avino Vein material atthe same rate as is in 2001*Silver equivalent calculated using current metal prices ($1,681 Au /oz, $30 Ag /oz, $3.60 Cu /lb)Re-opening 2014
  21. 21. 4. Oxide Tailings Resource (does not include sulphide tailings)*** Base CaseSilver: $20.38Gold: $1,256Spot Prices CaseSilver: $28.36Gold: $1,622Total Metal Value2.34 Mt Oxide Tailings with 91.3 g/tsilver, 0.54 g/t gold US $131 million US $179 millionCapexCapital Cost for 500,000 tonne perannum agglomeration/heap leachoperation US $29.1 million US 29.1 millionOpex(US$/t Treated)Estimated operating cost per tonneof tailings treated (stripping costsnot included) US $14.25 US $14.25NPV $38.6 million $74.1 millionIRR 54% 92%21*Data disclosed in July 25th, 2012technical report by Tetra Tech: ATechnical Report on the AvinoProperty. Michael OBrian, M.Sc.,Pr.Sci.Nat, FGSSA, FAusIIM, FSAIIM,Hassan Ghaffari, P.Eng., JacquesOuellet, P.Eng., Ph.D., MonicaDanon-Schaffer, Ph.D, P.Eng., SabryAbdel Hafex, Ph.D., P.Eng andWayne Stoyko, P.Eng., are theQualified Persons, as defined underNational Instrument 43-101, whosupervised and are responsible forthe Techncial Report on the AvinoProperty ** A preliminary economic assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technicalviability of the Project have not been demonstrated at this time. The preliminary economic assessment is preliminary in nature and includesinferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that wouldenable them to be categorized as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will berealized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
  22. 22. 224. Oxide Tailings Resource – Projected Metal Production** A preliminary economic assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the Projecthave not been demonstrated at this time. The preliminary economic assessment is preliminary in nature and includes inferred mineral resources that areconsidered 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 preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not havedemonstrated economic viability.Total Resource (Ag Eq.) 9,103,162Total Tonnes to Mill 2,340,000Annual Tonnes to Mill 500,000Mine Life 5 yearsAverage Grade Ag (g/t) 91.3Average Grade Au (g/t) 0.54Average Annual Production Ag (oz) 1,028,860Average Annual Production Au (oz) 6,580Average Annual Production Silver Equivalent (oz)* 1,390,760**Silver equivalent was calculatedusing a 55:1 ratio for silver to goldSilver Equivalent Ounces - Calculated0200,000400,000600,000800,0001,000,0001,200,0001,400,000Y1 Y2 Y3 Y4 Y51,390,760 1,390,760 1,390,760 1,390,760 1,390,760
  23. 23. Production Totals 2010 – 2012*23* Silver and gold ounces were calculated and are approximate, 2010 and 2012 figures include output from SanGonzalo as well as historic above ground Avino Mine stockpiles** Silver equivalent calculated using a gold silver ratio of 50:1 for 2010 – 2012, 2013 estimates are based on a ratio of55:1 due to changing metals pricesSilver Oz’s - Calculated Gold Oz’s - Calculated0200,000400,000600,000800,0002010 2011 2012 201325,966133,064191,63501,0002,0003,0004,0002010 2011 2012 20131846861,2360200,000400,000600,000800,0001,000,0002010 2011 2012 201335,166167,364253,451Silver Equivalent – Calculated**
  24. 24. Conceptual Timeline for Development ofAvino Project Resources24
  25. 25. David Wolfin, President, CEO & DirectorOver 26 years’ experience in mining and finance. Has helped raise over C$60 million for the OnivaMining Group.Carlos Rodriguez, COO25 years experience, specialized in ore quality control and regional exploration for LuisMin, Hecla MiningCompany, Luzon Minerals Ltd, Kings Minerals and has been with Avino since 2001. Mr. Rodgiruezreceived a Professional Degree in Mineral Exploration from the Colorado School of MinesMalcolm Davidson, CFOFinancial Accountant with over 8 years of experience in public practice specializing in Assurance,Corporate taxation and business advisory engagementsJasman Yee, P.Eng, Director, Project Manager and Metallurgist43 years’ experience as practical mineral processing engineer. Chemical Engineering graduate of theUniversity of British Columbia.Gary Robertson, Director (Independent)Certified Financial Planner who has worked in the financial industry for the past 30 years. Presentlyserves on the board of several private companies as well as six Canadian junior gold mining companiesand is a top producing financial planner at Dundee Wealth Management who is frequently in theChairmans club for top performersChris Sampson, Consulting Geologist P.Eng, BSc, ARSMProfessional geologist and graduate of the London School of Mines with more than 35 years’ industryexperience on hundreds of mineral projects worldwide. (Rio Algom, Rio Tinto, Noranda, Brinco)Andrew Kaplan, Director (Independent)24 years involved in deal structure, mergers and acquisitions, trading and IR as well as manages the Ato B Capital Special Situations Fund, LP.Key Personnel – 200 years combined experience25
  26. 26. SilverAvinoSilver26Avino’s share price vs. the price of silver (% basis) since 2009Courtesy of Yahoo Finance1. Avino’s mill re-commissioned2. First Sprott Financing3. Second Sprott Financing4. COMEX raises margin requirements for silver5. Avino announces positive results from SG bulk sample6. Euro debt crises sets in7. Tax loss selling8. New Avino Mine (ET zone) royalty agreement signed9. New tailings resource PEA published10. Avino begins full time production at San Gonzalo Mine1. 10.
  27. 27. With a market cap of only $23 million, Avinois undervalued compared to its peers.CompanySharesOutstandingSharePriceMarketCap2012ApproximateAnnualProductionSilver Eq.Endeavour Silver 99,741,010 $3.74 $373 m 6.4 milAurcana 58,409,564 $1.52 $88 m 2.5 milGreat Panther 138,095,052 $0.82 $113 m 2.4 milScorpio 198,388,913 $0.31 $61 m 2.3 milSilvercrest 108,593,205 $1.70 $184 m 2.3 milAlexco 62,573,898 $1.19 $74 m 2.2 milAvino 27,433,934 $0.86 $ 23 m 253,45127As at June 21st, 2013
  28. 28. InfoFinancials Issued and Outstanding - 27,433,934Warrants - 5,211,000 Options - 2,348,482 Fully Diluted - 34,908,416 Current Cash  $3.6 million Fully diluted cash  $18.3 million 52 week high/low $1.90/0.85Largest Shareholders Sprott Asset Management Sprott Private WealthContact604.682.3701ir@avino.comwww.avino.comExchanges TSX Venture: ASM NYSE – MKT : ASM FSE: GV628*financial figures taken from Q1 2013 interim financial statementShares outstanding taken on June 21, 2013
  29. 29. Why Own Avino?29• PROVEN TRACK RECORD: 27 years of continuous production; 40+ years inbusiness; rebuilt and re-opened Avino and San Gonzalo Mines.• PROVEN MANAGEMENT TEAM: 200 Combined years experience inMining Industry.• SHARE STRUCTURE: Only 27 Million issued.• LOCATION: Abundant local labor surrounding mine; 1 hour drive to city ofDurango.• LOW SECURITY RISK: Due to close proximity to Durango.• EXISTING INFRASTRUCTURE: Paved road to the mine, water rights, gridpower.• ORGANIC GROWTH PIPELPINE: No luck required, everything is in place,good explorationdevelopment prospects.• EXCELLENT EXPLORATION POTENTIAL – Majority of the property isunexplored.
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