Yesterday, Avino Silver and Gold Mines Ltd. updated the public on the status of its mining and milling operations from the last three months.

In October 2010, the company tested its new mill facilities by completing the processing of surface stockpiles of copper ore. Avino treated approximately 17,500 tons, which resulted in 419 tons of concentrate. Recovery rates were 66% Gold, 58% Silver and 56% copper. The sale of this concentrate has been finalized with a payment of $1,016,680.00.

In November, the company focused on the relining of the ball mill and the changeover of several conveyor belts in the crushing plant. Processing of the San Gonzalo development material began with a daily treatment rate of approximately 180 tons per day. This rate was maintained until the development material was finished on January 14, 2011. During this period, a total of 5,896 tons of development ore was processed. The resulting 192 tons of concentrate was graded at 11.54g/t gold, 3.617kg/t silver with minor amounts of copper, lead and zinc. Proposals are currently being sought from various interested parties for the sale of the product.

As 2011 began, the mining contractor (DMG) dedicated resources to the extraction of a 10,000-ton bulk sample. At the current milling rate, the broken ore inventory to date will provide approximately 4 months of mill feed. Plans are now in the works to develop the zone to the East on level 2260 towards drill hole SG-07-33 for future mill feed.

Avino also started its regional exploration drill program on January 27th, and the first hole SG-11-01 was completed three days later on January 30th. Holes SG-11-02 thru SG-11-09 will all explore areas of San Gonzalo as a guide to mine development; material from the surface stockpiles was assayed on site and at SGS Labs in Durango. Development material from the San Gonzalo zone was assayed at SGS, Durango.

For more information on the company and the hole locations for the San Gonzalo project, please visit Avino’s website http://www.avino.com