6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

May, 2023

Commission File Number: 001-35254

AVINO SILVER & GOLD MINES LTD.

Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. ☒ Form 20-F ☐  Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ☐   No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Exhibits:

99.1	Consolidated Financial Statements For the three months ended March 31, 2023 and 2022
99.2	Management Discussion and Analysis
99.3	CEO Certification
99.4	CFO Certification

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AVINO SILVER & GOLD MINES LTD.
	(Registrant)
Date: May 10, 2023	By:	/s/ Jennifer Trevitt
		Jennifer Trevitt
		Corporate Secretary

3

EX-99.1

  EXHIBIT 99.1

AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Financial Statements

For the three months ended March 31, 2023 and 2022

(Unaudited)

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Financial Position - Unaudited

(Expressed in thousands of US dollars)

	Note	March 31, 2023			December 31, 2022
ASSETS
Current assets
Cash		$	2,697		$	11,245
Amounts receivable			2,015			2,672
Taxes recoverable	5		4,363			3,737
Prepaid expenses and other assets			1,689			1,671
Inventory	6		7,670			6,260
Total current assets			18,434			25,585
Exploration and evaluation assets	8		50,094			49,804
Plant, equipment and mining properties	10		48,608			44,056
Long-term investments	7		1,466			1,746
Other assets			4			5
Total assets		$	118,606		$	121,196
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities		$	10,922		$	9,469
Amounts due to related parties	11(b)		67			28
Taxes payable			28			895
Note payable	12		-			4,926
Warrant liability			771			475
Current portion of equipment loans	13		165			-
Current portion of finance lease obligations			1,372			971
Total current liabilities			13,325			16,764
Equipment loans			316			-
Finance lease obligations			1,306			745
Reclamation provision	14		505			445
Deferred income tax liabilities			5,207			5,221
Total liabilities			20,659			23,175
EQUITY
Share capital	15		146,229			145,515
Equity reserves			9,679			9,852
Treasury shares (14,180 shares, at cost)			(97	)		(97	)
Accumulated other comprehensive loss			(5,486	)		(5,223	)
Accumulated deficit			(52,378	)		(52,026	)
Total equity			97,947			98,021
Total liabilities and equity		$	118,606		$	121,196

Commitments – Note 18

Approved by the Board of Directors on May 10, 2023:

Peter Bojtos Director  David Wolfin Director

The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)

(Expressed in thousands of US dollars, except per share amounts - Unaudited)

INCOME STATEMENT

	Note	Three months ended March 31,
		2023			2022
Revenue from mining operations	16	$	9,825		$	11,050
Cost of sales	16		7,974			6,306
Mine operating income			1,851			4,744
Operating expenses:
General and administrative expenses	17		1,184			1,116
Share-based payments	15		339			200
Income before other items			328			3,428
Other items:
Interest and other income (loss)			209			(7	)
Loss on long-term investments			(319	)		(686	)
Fair value adjustment on warrant liability	13		(293	)		233
Unrealized foreign exchange loss			(136	)		(605	)
Project evaluation expenses			-			(81	)
Finance cost			(74	)		(13	)
Accretion of reclamation provision	14		(11	)		(10	)
Interest expense			(45	)		(21	)
Income (loss) before income taxes			(341	)		2,238
Income taxes:
Current income tax expense			(25	)		(140	)
Deferred income tax recovery (expense)			14			(1,452	)
Income tax expense			(11	)		(1,592	)
Net income (loss)			(352	)		646
Other comprehensive income (loss):
Currency translation differences			(263	)		357
Total comprehensive income (loss)		$	(615	)	$	1,003
Income (loss) per share	15(e)
Basic		$	(0.00	)	$	0.01
Diluted		$	(0.00	)	$	0.01
Weighted average number of common shares outstanding	15(e)
Basic			118,572,700			103,819,481
Diluted			122,602,929			107,234,957

 The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Changes in Equity

(Expressed in thousands of US dollars - Unaudited)

EQUITY STATEMENT

	Note	Number of Common Shares		Share Capital Amount			Equity Reserves			Treasury Shares			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total  Equity
Balance, January 1, 2022			102,243,211	$	129,953		$	9,573		$	(97	)	$	(4,969	)	$	(55,953	)	$	78,507
Common shares issued:
Exercise of options			48,000		46			(15	)		-			-			-			31
Common shares issued for acquisition of La Preciosa			14,000,000		13,650			-			-			-			-			13,650
Share-based payments			-		-			200			-			-			-			200
Net income for the period			-		-			-			-			-			646			646
Currency translation differences			-		-			-			-			357			-			357
Balance, March 31, 2022			116,291,211	$	143,649		$	9,758		$	(97	)	$	(4,612	)	$	(55,307	)	$	93,391
Balance, January 1, 2023			118,349,090	$	145,515		$	9,852		$	(97	)	$	(5,223	)	$	(52,026	)	$	98,021
Common shares issued:
At the market issuances	15		253,700		207			-			-			-			-			207
Carrying value of RSUs exercised	15		592,667		512			(512	)		-			-			-			-
Issuance costs	15		-		(5	)		-			-			-			-			(5	)
Share-based payments	15		-		-			339			-			-			-			339
Net loss for the period			-		-			-			-			-			(352	)		(352	)
Currency translation differences			-		-			-			-			(263	)		-			(263	)
Balance, March 31, 2023			119,195,457	$	146,229		$	9,679		$	(97	)	$	(5,486	)	$	(52,378	)	$	97,947

 The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in thousands of US dollars - Unaudited)

	Note	Three months ended March 31,
		2023			2022
Cash generated by (used in):
Operating Activities
Net income (loss)		$	(352	)	$	646
Adjustments for non-cash items:
Deferred income tax recovery			(14	)		1,452
Depreciation and depletion			705			490
Accretion of reclamation provision			11			10
Loss on investments			319			686
Unrealized foreign exchange loss (gain)			(161	)		392
Unwinding of fair value adjustment			74			9
Fair value adjustment on warrant liability			293			(233	)
Share-based payments			339			200
			1,214			3,652
Net change in non-cash working capital items	19		(766	)		(202	)
Cash provided by operating activities			448			3,450
Financing Activities
Shares and units issued for cash, net of issuance costs			202			30
Finance lease payments			(280	)		(320	)
Equipment loan payments			(88	)		-
Cash used in financing activities			(166	)		(290	)
Investing Activities
Exploration and evaluation expenditures			389	)		(85	)
Additions to plant, equipment and mining properties			(3,450	)		853	)
Acquisition of La Preciosa	4,12		(5,000	)		(15,308	)
Cash used in investing activities			(8,839	)		(16,246	)
Change in cash			(8,557	)		(13,086	)
Effect of exchange rate changes on cash			9			7
Cash, Beginning			11,245			24,765
Cash, Ending		$	2,697		$	11,686

Supplementary Cash Flow Information (Note 19)

 The accompanying notes are an integral part of the condensed consolidated interim financial statements

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

1. NATURE OF OPERATIONS

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

The Company operates the Avino Mine which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V . (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

2. BASIS OF PRESENTATION

Statement of Compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2022, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value.  In addition, these unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2022, annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.

Significant Accounting Judgments and Estimates

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2022.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Basis of Consolidation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

Subsidiary	Ownership Interest	Jurisdiction	Nature of Operations
Oniva Silver and Gold Mines S.A. de C.V.	100%	Mexico	Mexican operations and administration
Nueva Vizcaya Mining, S.A. de C.V.	100%	Mexico	Mexican administration
Promotora Avino, S.A. de C.V. (“Promotora”)	79.09%	Mexico	Holding company
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”)	98.45% direct 1.22% indirect (Promotora) 99.67% effective	Mexico	Mining and exploration
La Luna Silver & Gold Mines Ltd.	100%	Canada	Holding company
La Preciosa Silver & Gold Mines Ltd.	100%	Canada	Holding company
Proyectos Mineros La Preciosa S.A. de C.V.	100%	Mexico	Mining and exploration
Cervantes LLP	100%	U.S.	Holding company

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the unaudited condensed consolidated interim financial statements.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Future Changes in Accounting Policies Not Yet Effective as at March 31, 2023:

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the current or future reporting periods.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

4. ACQUISITION OF LA PRECIOSA

On March 21, 2022, the Company closed the acquisition with Coeur Mining Inc. (“Coeur”) of all of the issued and outstanding shares of Proyectos Mineros La Preciosa S.A de C.V, a Mexican corporation, and Cervantes LLC, a Delaware LLC, that together hold the La Preciosa property in Mexico (“La Preciosa”).

Total consideration paid to Coeur was comprised of:

a)	Cash consideration of $15.3 million paid;
b)	A promissory note for $5 million in favour of Coeur, payable without interest on or before March 21, 2023;
c)	14,000,000 common shares of Avino, with a value of 13.65 million on issuance;
d)	7,000,000 share purchase warrants with a total value at $2.24 million exercisable at $1.09 per share until September 21, 2023, representing a 25% premium to Avino’s 20-day volume weighted average trading price as of October 26, 2021;

Additionally, Avino issued the following consideration for which payment is contingent on a future event and due to acquisition date uncertainty these are valued at Nil. A liability for these contingent payments will be recognized when related activity and events occur.

e)	An additional cash payment of $8.75 million, to be paid no later than 12 months after initial production at La Preciosa, up to one-half of which may be paid in common shares of Avino (provided Coeur’s total shareholdings cannot exceed 19.9% of the Company’s total issued and outstanding shares);
f)	A 1.25% net smelter returns royalty on the Gloria and Abundancia areas of La Preciosa, and a 2.00% gross value royalty on all other areas of La Preciosa; and
g)	A payment of $0.25 per silver equivalent ounce (subject to inflationary adjustment) of new mineral reserves (as defined by NI 43-101) discovered and declared outside of the current mineral resource area at La Preciosa, subject to a cap of $50 million, and any such payments will be credited against any existing or future payments owing on the gross value royalty.

The transaction has been accounted for as an asset acquisition as La Preciosa is in the exploration and evaluation stage and had not demonstrated technical feasibility, commercial viability, or the ability to provide economic benefits. La Preciosa did not have the workforce, resources and/or reserves, mine plan, or financial resources to the meet the definition of a business for accounting purposes.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

The purchase consideration has been assigned based on the relative fair values of the assets acquired and liabilities assumed and is summarized as follows:

Cash paid	$	15,301
Note payable		4,665
Common shares		14,630
Share purchase warrants		2,240
Total purchase consideration		36,836
Transaction costs		270
Total acquisition cost	$	37,106
Cash	$	168
Other current assets		471
Plant and equipment		1,621
Exploration and evaluation assets		37,618
Accounts payable		(2,772	)
Net assets acquired	$	37,106

5. TAXES RECOVERABLE

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

	March 31, 2023		December 31, 2022
VAT recoverable	$	1,826	$	1,385
GST recoverable		39		25
Income taxes recoverable		2,498		2,327
	$	4,363	$	3,737

6. INVENTORY

	March 31, 2023		December 31, 2022
Process material stockpiles	$	2,662	$	2,788
Concentrate inventory		2,654		1,617
Materials and supplies		2,354		1,855
	$	7,670	$	6,260

The amount of inventory recognized as an expense for the three months ended March 31, 2023 totalled $7,794 (March 31, 2022 – $6,598). See Note 16 for further details.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

7. LONG-TERM INVESTMENTS

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

For the three months ended March 31, 2023:

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value March 31,
	2023		Net Additions		exchange			for the period			2023
Talisker Resources Common Shares	$	1,640	$	-	$	2		$	(293	)	$	1,349
Silver Wolf Exploration Ltd. Common Shares		51		41		(3	)		(10	)		79
Endurance Gold Corp		55		-		(1	)		(16	)		38
	$	1,746	$	41	$	(2	)	$	(319	)	$	1,466

Silver Wolf Exploration Ltd

During the three months ended March 31, 2023, the Company received 500,000 common shares as part of the terms in the Option Agreement with Silver Wolf Exploration Ltd.. Upon acquisition, the fair value of these common shares and share purchase warrants were recorded as “Option Income” as a credit to exploration and evaluation assets (see Note 8). Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments.

For the year ended December 31, 2022:

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value December 31,
	2022		Net Additions		Exchange			for the period			2022
Talisker Resources Common Shares	$	3,880	$	-	$	(134	)	$	(2,106	)	$	1,640
Silver Wolf Exploration Ltd. Common Shares		59		30		(35	)		(3	)		51
Endurance Gold Corp		-		53		(4	)		6			55
	$	3,939	$	83	$	(173	)	$	(2,103	)	$	1,746

During the year ended December 31, 2022, the Company received 250,000 common shares as part of the terms in the Option Agreement with Silver Wolf Exploration Ltd. Upon acquisition, the fair value of these common shares and share purchase warrants were recorded as “Option Income” as a credit to exploration and evaluation assets (see Note 8). Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments.

Endurance Gold Corp.

During the year ended December 31, 2022, the Company received 200,000 common shares as part of the terms of the Option Agreement with Endurance Gold Corp. Upon acquisition, the fair value of these common shares were recorded as “Other Income” on the statement of profit and loss. Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments. See Note 8 for full details of the Option Agreement.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

8. EXPLORATION AND EVALUATION ASSETS

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

	Avino,  Mexico			La Preciosa, Mexico			British Columbia & Yukon, Canada		Total
Balance, January 1, 2022	$	11,052		$	-		$	1	$	11,053
Costs incurred during 2022:
Acquisition costs – Note 4		-			37,618			-		37,618
Drilling and exploration		719			296			-		1,015
Assessments and taxes		94			61			-		155
Effect of movements in exchange rates		(30	)		-			-		(30	)
Option income – Note 9(a)(ii)		(7	)		-			-		(7	)
Balance, December 31, 2022	$	11,828		$	37,975		$	1	$	49,804
Costs incurred during 2023:
Drilling and exploration		168			183			-		351
Assessments and taxes		56			23			-		79
Effect of movements in exchange rates		10			(109	)		-		(99	)
Option income – Note 9(a)(ii)		(41	)		-			-		(41	)
Balance, March 31, 2023	$	12,021		$	38,072		$	1	$	50,094

(a) Avino, Mexico

Option Agreement – Silver Wolf Exploration Ltd. (formerly Gray Rock Resources Ltd.) (“Silver Wolf”)

On March 11, 2021, the Company was informed that Silver Wolf received TSX Venture Exchange approval on the previously-announced entrance into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”). In exchange, Avino received Silver Wolf share purchase warrants to acquire 300,000 common shares of Silver Wolf at an exercise price of C$0.20 per share for a period of 36 months from the date of the TSX Venture Exchange’s final acceptance of the Option Agreement (the “Approval Date”). In order to exercise the option, Silver Wolf will:

1. Issue to Avino a total of C$600 in cash or common shares of Silver Wolf as follows:

a.	C$50 in common shares of Silver Wolf within 30 days of March 8, 2021 (received on March 26, 2021 – see Note 7 for details);
b.	A further C$50 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2022 (received on March 30, 2022 – See Note 7 for details);
c.	A further C$100 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2023 (received on March 13, 2023 – See Note 7 for details);
d.	A further C$200 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2024; and
e.	A further C$200 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2025; and

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

2. Incur a total of C$750 in exploration expenditures on the properties, as follows:

a.	C$50 on or before March 8, 2022;
b.	A further C$100 on or before March 8, 2023; and
c.	A further C$600 on or before March 8, 2025.

All exploration expenditure requirements on the properties have been met as of March 31, 2023

Under the Option Agreement, all share issuances will be based on the average volume weighted trading price of Silver Wolf’s shares on the TSX Venture Exchange for the ten (10) trading days immediately preceding the date of issuance of the shares, and the shares will be subject to resale restrictions under applicable securities legislation for 4 months and a day from their date of issue.

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

Unification La Platosa properties

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.

The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

(b) La Preciosa, Mexico

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc. (“Coeur”). See Note 4 for further details

(c) British Columbia & Yukon, Canada

Eagle Property - Yukon

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property.

During the three months ended March 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The claims were transferred on March 28, 2023, and subsequent to March 31, 2023, cash proceeds were received.

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AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Minto and Olympic-Kelvin properties – British Columbia

On May 2, 2022, the Company has granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

Under the terms of the letter agreement, Endurance can earn a 100% interest in the Olympic Claims if they pay Avino a total cash consideration in the aggregate amount of C$100, issue up to a total of 1,500,000 common shares (“Shares”) of Endurance and incur exploration expenditures in the aggregate amount of C$300; all of which is to be incurred by December 31, 2024. In the event that Endurance earns the 100% interest, the Olympic Claims will be subject to a 2% net smelter return royalty (“NSR”), of which 1% NSR can be purchased by the Endurance for C$750 and the remaining balance of the NSR can be purchased for C$1,000.

As part of the final requirement to earn its interest, Endurance agreed to grant to Avino 750,000 share purchase warrants (“Warrants”) by December 31, 2024, that offer Avino the option to purchase additional shares in the Company for a period of three years from the date of issuance. The exercise price of the Warrants will be set at a 25% premium to the 20-day VWAP share price at the issuance date. During the Option, if Endurance is successful in defining a compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic Claims then Endurance will be obliged to pay Avino a C$1,000 discovery bonus.

The Option agreement is subject to the TSX Venture Exchange acceptance, and any Shares or Warrants to be issued will be subject to a four-month hold period on issuance as per the policies of the TSX Venture Exchange.

During the year ended December 31, 2022, Endurance granted 200,000 common shares and paid C$25 as per the terms of the agreement, which required payment upon signing of a letter agreement between the two parties.

As of March 31, 2023, Endurance was in compliance with all terms of the Option agreement.

9. NON-CONTROLLING INTEREST

At March 31, 2023, the Company had an effective 99.67% (December 31, 2022 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2022 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been recognized in the unaudited condensed consolidated interim financial statements. 

- 13 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

10. PLANT, EQUIPMENT AND MINING PROPERTIES

	Mining properties		Office equipment, furniture, and fixtures			Computer equipment			Mine machinery and transportation equipment			Mill machinery and processing equipment			Buildings and construction in process		Total
	$		$			$			$			$			$		$
COST
Balance at January 1, 2022		13,038		595			335			14,240			18,613			11,778		58,599
Additions / Transfers		1,649		185			441			2,383			4,781			2,907		12,346
Writedowns Effect of movements in										(1,692	)		(100	)		-		(1,792	)
Effect of movements in exchange rates		-		(17	)		(2	)		(1	)		-			8		(12	)
Balance at December 31, 2022		14,687		763			774			14,930			23,294			14,693		69,141
Additions / Transfers		698		46			12			1,998			2,429			62		5,245
Effect of movements in exchange rates		-		-			-			-			-			4		4
Balance at March 31, 2023		15,385		809			786			16,928			25,723			14,759		74,390
ACCUMULATED DEPLETION AND DEPRECIATION
Balance at January 1, 2022		8,856		294			267			4,944			6,667			1,896		22,924
Additions / Transfers		250		147			331			1,616			146			1,133		3,623
Effect of movements in exchange rates		-		-			-			(1,382	)		(80	)		-		(1,462	)
Balance at December 31, 2022		9,106		441			598			5,178			6,733			3,029		25,085
Additions / Transfers		85		29			14			24			475			70		697
Effect of movements in exchange rates		-		-			-			-			-			-		-
Balance at March 31, 2023		9,191		470			612			5,202			7,208			3,099		25,782
NET BOOK VALUE
At March 31, 2023		6,194		339			174			11,726			18,515			11,660		48,608
At December 31, 2022		5,581		322			176			9,752			16,561			11,664		44,056
At January 1, 2022		4,182		301			68			9,296			11,946			9,882		35,675

- 14 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Included in Buildings above are assets under construction of $3,966 as at March 31, 2023 (December 31, 2022 - $3,817) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

As at March 31, 2023, plant, equipment and mining properties included a net carrying amount of $4,507 (December 31, 2022 - $2,417) for mining equipment and right of use assets under finance lease and equipment loan.

11. RELATED PARTY TRANSACTIONS AND BALANCES

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party. 

(a) Key management personnel

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the three months ended March 31, 2023 and 2022 is as follows:

	Three months ended March 31,
	2023		2022
Salaries, benefits, and consulting fees	$	284	$	439
Share‐based payments		321		157
	$	605	$	596

(b) Amounts due to/from related parties

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. The following table summarizes the amounts were due to related parties:

	March 31, 2023			December 31, 2022
Oniva International Services Corp.	$	100		$	100
Silver Wolf Exploration Ltd.		(77	)		(72	)
Directors Fees		44			-
	$	67		$	28

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s president and CEO and also a director, for consulting services. For the three months ended March 31, 2023, the Company paid $71 (March 31, 2022 - $126) to ICC.

(c) Other related party transactions

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

- 15 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

The transactions with Oniva during the three months ended March 31, 2023 and 2022 are summarized below:

	March 31, 2023		March 31, 2022
Salaries and benefits	$	245	$	220
Office and miscellaneous		133		97
	$	378	$	317

12. NOTE PAYABLE

On March 21, 2022, the Company closed the acquisition of the La Preciosa property from Coeur Mining Inc. (see Note 4 for further details). As part of the agreement, the Company issued a promissory note payable of $5 million due on or before March 21, 2023. The present value of $4,665 of the note payable was calculated using a discount interest rate of 6.71%.

Prior to March 21, 2023, the Company repaid the promissory note payable in full.

The continuity of the note payable is as follows:

	March 31,			December 31,
	2023			2022
Balance at beginning of the period	$	4,926		$	-
Additions		-			4,665
Repayments		(5,000	)		-
Unwinding of fair value adjustment		74			261
Balance at end of the period		-			4,926
Less: Current portion		-			(4,926	)
Non-current portion	$	-		$	-

- 16 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

13. WARRANT LIABILITY

The Company’s warrant liability arises as a result of the issuance of warrants exercisable in US dollars. As the denomination is different from the Canadian dollar functional currency of the entity issuing the underlying shares, the Company recognizes a derivative liability for these warrants and re-measures the liability at the end of each reporting period using the Black-Scholes model. Changes in respect of the Company’s warrant liability are as follows:

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	475	$	741
Warrants issued		-		2,240
Fair value adjustment		293		(2,935	)
Effect of movement in exchange rates		3		(111	)
Balance at end of the period	$	771	$	475

Continuity of warrants during the periods is as follows:

	Underlying Shares		Weighted Average Exercise Price
Warrants outstanding and exercisable, January 1, 2022		1,950,412	$	0.80
Granted		7,000,000	$	1.09
Warrants outstanding and exercisable, December 31, 2022, and March 31, 2023		8,950,412	$	1.03

			All Warrants Outstanding and Exercisable
Expiry Date	Exercise Price per Share		March 31, 2023		December 31, 2022
September 21, 2023	$	1.09		7,000,000		7,000,000
September 25, 2023	$	0.80		1,950,412		1,950,412
				8,950,412		8,950,412

As at March 31, 2023, the weighted average remaining contractual life of warrants outstanding was 0.48 years (December 31, 2022 – 0.73 years).

Valuation of the warrant liability requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing warrants is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the warrant liability was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.78	%		4.07	%
Expected dividend yield		0	%		0	%
Expected warrant life (years)		0.48			0.73
Expected stock price volatility		49.96	%		56.80	%
Weighted average fair value	$	0.09		$	0.05

- 17 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

14. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at March 31, 2023, is $505 (December 31, 2022 – $445), and the undiscounted value of the obligation is $1,598 (December 31, 2022 – $1,454).

The present value of the obligation was calculated using a risk-free interest rate of 9.09% (December 31, 2022 – 9.65%) and an annual inflation rate of 6.04% (December 31, 2022 – 7.82%). Reclamation activities are estimated to begin in 2025 for the San Gonzalo Mine and in 2041 for the Avino Mine.

A reconciliation of the changes in the Company’s reclamation provision is as follows:

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	445	$	726
Changes in estimates		-		(364	)
Unwinding of discount related to continuing operations		11		44
Effect of movements in exchange rates		49		39
Balance at end of the period	$	505	$	445

15. SHARE CAPITAL AND SHARE-BASED PAYMENTS

(a)	Authorized: Unlimited common shares without par value.
(b)	Issued:

(i)	During the three months ended March 31, 2023, the Company issued 253,700 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $207. The Company paid a 2.75% cash commission of $5 on gross proceeds, for net proceeds of $202.
During the three months ended March 31, 2023, the Company issued 592,667 common shares upon exercise of RSUs. As a result, $512 was recorded to share capital.
(ii)	During the year ended December 31, 2022, the Company issued 14,000,000 common shares as part of the acquisition of La Preciosa from Coeur Mining Inc.. As a result, $13,650 was recorded to share capital, and exploration and evaluation assets as acquisition costs, representing the closing price on the Toronto Stock Exchange on March 21, 2022, the date of the issuance and closing.

The Company further issued 1,075,000 common shares as payment for services provided during the acquisition, and as a result $980 was recorded to share capital and exploration and evaluation assets as acquisition costs.

During the year ended December 31, 2022, the Company issued 48,000 common shares following the exercise of 48,000 options. As a result, $46 was recorded to share capital, representing cash proceeds of $31 and the fair value upon issuance of $15.

During the year ended December 31, 2022, the Company issued 982,879 common shares upon exercise of RSUs. As a result, $899 was recorded to share capital.

(c) Stock options:

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

- 18 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Continuity of stock options is as follows:

	Underlying Shares			Weighted Average Exercise Price (C$)
Stock options outstanding, January 1, 2022		2,839,000		$	1.68
Granted		2,390,000		$	1.20
Exercised		(48,000	)	$	0.79
Expired		(880,000	)	$	1.98
Cancelled / Forfeited		(45,000	)	$	1.40
Stock options outstanding, December 31, 2022		4,256,000		$	1.36
Granted		2,395,000		$	1.12
Stock options outstanding, March 31, 2023		6,651,000		$	1.27
Stock options exercisable, March 31, 2023		4,249,750		$	1.36

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2023:

			Outstanding				Exercisable
Expiry Date	Price (C$)		Number of Options		Weighted Average Remaining Contractual Life (Years)		Number of Options		Weighted Average Remaining Contractual Life (Years)
August 28, 2023	$	1.30		105,000		0.41		105,000		1.41
August 21, 2024	$	0.79		126,000		1.39		126,000		2.39
August 4, 2025	$	1.64		1,660,000		2.35		1,660,000		3.35
March 25, 2027	$	1.20		2,340,000		3.99		2,340,000		3.99
May 4, 2027	$	0.92		25,000		4.10		18,750		4.10
March 29, 2028	$	1.12		2,395,000		5.00		-		4.99
				6,651,000		3.84		4,249,750		3.18

Valuation of stock options requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.05	%		2.49	%
Expected dividend yield		0	%		0.0	%
Expected option life (years)		5.00			5.00
Expected stock price volatility		61.05	%		59.98	%
Expected forfeiture rate		17	%		20	%
Weighted average fair value	$	0.61		$	0.63

During the three months ended March 31, 2023, the Company charged $62 (three months ended March 31, 2022 - $32) to operations as share-based payments for the fair value of stock options granted.

- 19 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

(d) Restricted Share Units:

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

Continuity of RSUs is as follows:

	Underlying Shares			Weighted Average Price (C$)
RSUs outstanding, January 1, 2022		1,439,477		$	1.32
Granted		1,799,000			1.19
Exercised		(982,879	)	$	1.18
Cancelled / Forfeited		(64,932	)	$	1.40
RSUs outstanding, December 31, 2022		2,190,666		$	1.27
Granted		1,809,000		$	1.12
Exercised		(592,667	)	$	1.19
RSUs outstanding, March 31, 2023		3,406,999		$	1.21

The following table summarizes information about the RSUs outstanding at March 31, 2023:

Issuance Date	Price (C$)		Number of RSUs Outstanding
August 4, 2020	$	1.64		412,666
March 25, 2022	$	1.19		1,185,333
March 29, 2023	$	1.12		1,809,000
				3,238,477

During the three months ended March 31, 2023, 1,809,000 RSUs (year ended December 31, 2022, 1,799,000) were granted. The weighted average fair value at the measurement date was C$1.12 (December 31, 2022 – C$1.19), based on the TSX market price of the Company’s shares on the date the RSUs were granted.

During the three months ended March 31, 2023, the Company charged $277 (March 31, 2022 - $168) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

- 20 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

(e) Earnings (loss) per share:

The calculations for basic earnings (loss) per share and diluted earnings (loss) per share are as follows:

	Three months ended March 31,
	2023			2022
Net income (loss) for the period	$	(352	)	$	646
Basic weighted average number of shares outstanding		118,572,700			103,819,481
Effect of dilutive share options, warrants, and RSUs		4,030,229			3,415,476
Diluted weighted average number of shares outstanding		122,602,929			107,234,957
Basic loss per share	$	(0.00	)	$	0.01
Diluted loss per share	$	(0.00	)	$	0.01

16. REVENUE AND COST OF SALES

The Company’s revenues for the three months ended March 31, 2023 and 2022, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

	March 31, 2023			March 31, 2022
Concentrate sales	$	9,992		$	9,789
Provisional pricing adjustments		(167	)		1,261
	$	9,825		$	11,050

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

	March 31, 2023		March 31, 2022
Production costs	$	7,304	$	5,847
Depreciation and depletion		670		459
	$	7,974	$	6,306

17. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses on the condensed consolidated interim statements of operations consist of the following:

	March 31, 2023		March 31, 2022
Salaries and benefits	$	395	$	438
Professional fees		239		208
Office and miscellaneous		192		174
Management and consulting fees		106		116
Investor relations		81		52
Travel and promotion		54		10
Directors fees		44		41
Regulatory and compliance fees		38		47
Depreciation		35		30
	$	1,184	$	1,116

- 21 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

18. COMMITMENTS

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 11.

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

	March 31, 2023		December 31, 2022
Not later than one year	$	103	$	105
Later than one year and not later than five years		347		347
Later than five years		375		398
	$	825	$	850

Office lease payments recognized as an expense during the three months ended March 31, 2023, totalled $4 (March 31, 2022 - $16).

19. SUPPLEMENTARY CASH FLOW INFORMATION

	March 31, 2023			March 31, 2022
Net change in non-cash working capital items:
Inventory	$	(1,419	)	$	339
Prepaid expenses and other assets		(18	)		(327	)
Taxes recoverable		(625	)		210
Taxes payable		(867	)		(28	)
Accounts payable and accrued liabilities		1,466			(1,013	)
Amounts receivable		843			(1,394	)
Amounts due to related parties		39			(15	)
	$	(582	)	$	(202	)

	March 31, 2023		March 31, 2022
Other non-cash supplementary information:
Interest paid	$	42	$	20
Taxes paid		5		-
	$	47	$	20
	March 31, 2023		March 31, 2022
Non-cash investing and financing activities:
Acquisition of La Preciosa, net of cash & transaction costs	$	-	$	21,535
Shares acquired under terms of option agreements		41		31
Transfer of share-based payments reserve upon exercise of RSUs		512		-
Transfer of share-based payments reserve upon option exercise		-		15
Equipment acquired under finance leases and equipment loans		1,808		1,101
	$	2,361	$	22,682

- 22 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

20. FINANCIAL INSTRUMENTS

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

(a) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two (December 31, 2022 – two) counterparty (see Note 21). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the unaudited condensed consolidated interim statement of financial position. At March 31, 2023 and December 31, 2022, no amounts were held as collateral.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2023, in the amount of $2,697 and working capital of $5,109 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of note payable and finance lease obligations are due within 12 months of the condensed consolidated interim statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2023, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,922	$	10,922	$	-	$	-
Amounts due to related parties		67		67		-		-
Minimum rental and lease payments		849		105		346		398
Equipment Loans		481		165		316		-
Finance lease obligations		2,925		1,523		1,402		-
Total	$	15,244	$	12,782	$	2,064	$	398

(c) Market Risk

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

- 23 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Interest Rate Risk

Interest rate risk consists of two components:

(i)	To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.
(ii)	To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

In management’s opinion, the Company is exposed to interest rate risk primarily on its outstanding term facility, as the interest rate is subject to floating rates of interest. A 10% change in the interest rate would not a result in a material impact on the Company’s operations.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

	March 31, 2023						December 31, 2022
	MXN			CDN			MXN			CDN
Cash	$	5,063		$	219		$	4,097		$	250
Due from related parties		1,402			-			1,402			-
Long-term investments		-			1,984			-			2,365
Reclamation bonds		-			6			-			4
Amounts receivable		1,549			302			-			34
Accounts payable and accrued liabilities		(76,052	)		(54	)		(85,486	)		(108	)
Due to related parties		-			(195	)		-			(135	)
Finance lease obligations		(880	)		(331	)		(161	)		(343	)
Net exposure		(68,918	)		1,931			(80,148	)		2,067
US dollar equivalent	$	(3,811	)	$	1,426		$	(4,136	)	$	1,526

Based on the net US dollar denominated asset and liability exposures as at March 31, 2023, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2023, by approximately $251 (year ended December 31, 2022 - $275). The Company has not entered into any foreign currency contracts to mitigate this risk.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2023, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $17 (December 31, 2022 - $65).

- 24 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2023, a 10% change in market prices would have an impact on net earnings (loss) of approximately $143 (December 31, 2022 - $175).

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

(d) Classification of Financial Instruments

IFRS 7 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2023:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,697	$	-	$	-
Amounts receivable		-		2,015		-
Long-term investments		1,466		-		-
Total financial assets	$	4,163	$	2,015	$	-
Financial liabilities
Warrant liability		-		-		(771	)
Total financial liabilities	$	-	$	-	$	(771	)

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2023, the Company’s Level 3 financial instruments consisted of the warrant liability.

For the Company’s warrant liability valuation and fair value adjustments during the three months ended March 31, 2023 and the year ended December 31, 2022, see Note 13.

- 25 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

21. SEGMENTED INFORMATION

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined that each producing mine represents an operating segment, of which there is one as of March 31, 2023.

The Company’s revenues for the three months ended March 31, 2023 of $9,825 (March 31, 2022 - $11,050) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine.

On the condensed consolidated interim statements of operations, the Company had revenue from the following product mixes:

	March 31, 2023			March 31, 2022
Silver	$	3,608		$	3,896
Gold		3,135			2,442
Copper		4,689			7,053
Penalties, treatment costs and refining charges		(1,607	)		(2,344	)
Total revenue from mining operations	$	9,825		$	11,050

For the three months ended March 31, 2023, the Company had two customers (March 31, 2022 – four customer) that accounted for total revenues as follows:

	March 31, 2023		March 31, 2022
Customer #1	$	9,225	$	8,985
Customer #2		600		-
Other customers		-		2,065
Total revenue from mining operations	$	9,825	$	11,050

- 26 -

AVINO SILVER & GOLD MINES LTD.

Notes to the unaudited condensed consolidated interim financial statements

For the three months ended March 31, 2023 and 2022

(Expressed in thousands of US dollars, except where otherwise noted - Unaudited)

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

	March 31, 2023		December 31, 2022
Exploration and evaluation assets - Mexico	$	50,093	$	49,803
Exploration and evaluation assets - Canada		1		1
Total exploration and evaluation assets	$	50,094	$	49,804

	March 31, 2023		December 31, 2022
Plant, equipment, and mining properties - Mexico	$	48,368	$	43,812
Plant, equipment, and mining properties - Canada		240		244
Total plant, equipment, and mining properties	$	48,608	$	44,056

- 27 -

EX-99.2

EXHIBIT 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The following discussion and analysis of the operations, results, and financial position of Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three months ended March 31, 2023, and the Company’s audited consolidated financial statements as at and for the year ended December 31, 2022, and the notes thereto.

This Management’s Discussion and Analysis (“MD&A”) is dated May 10, 2023 and discloses specified information up to that date. The condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Unless otherwise cited, references to dollar amounts are in US dollars. This MD&A contains “forward-looking statements” that are subject to risk factors including those set out in the “Cautionary Statement” at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Company’s Board of Directors as of May 10, 2023, unless otherwise indicated. Throughout this report we refer to “Avino”, the “Company”, “we”, “us”, “our”, or “its”. All these terms are used in respect of Avino Silver & Gold Mines Ltd.  We recommend that readers consult the “Cautionary Statement” on the last page of this report. Additional information relating to the Company is available on the Company’s website at www.avino.com and on SEDAR at www.sedar.com.

Business Description

Founded in 1968, the Company is engaged in the production and sale of silver, gold, and copper bulk concentrate, and the acquisition, exploration, and evaluation of mineral properties. The Company holds mineral claims and leases in Durango, Mexico, and in British Columbia and Yukon, Canada. Avino is a reporting issuer in all of the provinces of Canada, except for Quebec, and a foreign private issuer with the Securities and Exchange Commission in the United States. The Company’s shares trade on the Toronto Stock Exchange (“TSX”) and the NYSE American under the symbol “ASM”, and on the Berlin and Frankfurt Stock Exchanges under the symbol “GV6”.

Discussion of Operations

The Company’s production, exploration, and evaluation activities during the three months ended March 31, 2023, have been conducted on its Avino Property.

The Company holds a 99.67% effective interest in Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”), a Mexican corporation which owns the Avino Property. The Avino Property covers approximately 1,104 contiguous hectares, and is located approximately 80 km north-east of the city of Durango. The Avino Property is equipped with milling and processing facilities that presently process all output from the Avino Mine located on the property.

The Company operates the Avino Mine which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V . (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Operational Highlights

HIGHLIGHTS (Expressed in US$)	First Quarter 2023		First Quarter 2022		Change	First Quarter 2023		Fourth Quarter 2022		Change1
Operating
Tonnes Milled	159,757		111,138		44%	159,757		150,292		6%
Silver Ounces Produced	234,338		164,358		43%	234,338		309,856		-24%
Gold Ounces Produced	2,286		801		185%	2,286		2,426		-6%
Copper Pounds Produced	1,397,637		1,217,349		15%	1,397,637		1,540,851		-9%
Silver Equivalent Ounces1 Produced	678,247		457,798		48%	678,247		770,127		-12%
Concentrate Sales and Cash Costs
Silver Equivalent Payable Ounces Sold2	506,727		459,109		10%	506,727		756,636		-33%
Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	14.22	$	11.21	27%	$	14.22	$	11.76	21%
All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce1,2,3	$	20.17	$	19.90	10%	$	20.17	$	18.63	8%

1. In Q1 2023, AgEq was calculated using metals prices of $22.56 oz Ag, $1,888 oz Au and $4.05 lb Cu. In Q4 2022, AgEq was calculated using metals prices of $21.18 oz Ag, $1,729 oz Au and $3.63 lb Cu. In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce and all-in sustaining cash cost per payable ounce,. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Financial Highlights

HIGHLIGHTS (Expressed in 000’s of US$)	First Quarter 2023		First Quarter 2022		Change	First Quarter 2023		Fourth Quarter 2022		Change
Financial Operating Performance
Revenues	$	9,825	$	11,050	-11%	$	9,825	$	14,649	-33%
Mine operating income (loss)	$	1,851	$	4,744	-61%	$	1,851	$	4,356	-58%
Net income (loss)	$	(352)	$	646	-154%	$	(352)	$	1,296	-127%
Earnings before interest, taxes and amortization (“EBITDA”)1	$	286	$	2,777	-90%	$	286	$	3,207	-91%
Adjusted earnings1	$	1,054	$	3,350	-69%	$	1,054	$	4,026	-74%
Cash flow from operations	$	448	$	3,450	-87%	$	448	$	3,320	-87%
Per Share Amounts
Earnings (loss) per share	$	(0.00)	$	0.01	-100%	$	(0.00)	$	0.01	-100%
Adjusted earnings1 per share	$	0.01	$	0.03	-67%	$	0.01	$	0.03	-67%
HIGHLIGHTS (Expressed in 000’s of US$)	March 31, 2023		March 31, 2022		Change	March 31, 2023		December 31, 2022		Change
Liquidity & Working Capital
Cash	$	2,697	$	11,686	-75%	$	2,697	$	11,245	-76%
Working capital	$	5,109	$	14,528	-58%	$	5,109	$	8,821	-42%

1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted earnings, adjusted earnings per share, and working capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

1^st Quarter 2023 Highlights

Another Quarter of Steady Production at Avino

· Silver equivalent production of 678,247 ounces is another consistent quarter and represents a 48% increase from Q1 2022. Production decreased when compared to Q3 and Q4 2022, primarily due to ore mining in a lower grade zone of the Avino Mine

Updated Mineral Resource Estimate (“MRE”) including Integration of La Preciosa MRE and Inaugural MREs on the Guadalupe and La Potosina deposits

· Together, Avino’s consolidated mineral resources total 368 million silver equivalent ounces. This recent update added a significant boost to the mineral resources at the Avino Property. The measured and indicated silver equivalent ounces increased by 38% to 161 million, silver ounces increased 35% to 70 million, copper tonnes increased 18% to 136.7 thousand, and gold increased 23% to 596,000 ounces.

Metallurgical Testing Completed at the Oxide Tailings Project

· On April 5, 2023, Avino announced metallurgical results from the testwork program that was completed and will form the basis of the metallurgical analysis in a Pre-Feasibility Study (“PFS) on the project. This Project has been in our portfolio for many years and factors prominently into our five-year growth plan to become an intermediate silver producer in Mexico. These results also build on the studies in the 2017 Preliminary Economic Assessment (“PEA”) and increase the level of confidence in the Project through the extensive testwork completed. In the recent update, The Oxide Tailings mineral resource was increased by 407% in the measured and indicated categories to total 5.7 million tonnes, and an increase of 287% to the silver equivalent ounces resulting in 17.4 million.

Dry-Stack Tailings Facility Completed and Operational:

· The dry-stack tailings facility is now complete and fully operational. During the quarter, the conveyor system was installed and is currently transporting the pressed dry tailings to the Avino open pit area. The dry-stack facility was a top environmental, social and governance (“ESG”) priority and demonstrates a commitment to safety for the community and the environment. In addition, dry-stack tailings require a smaller footprint. A selection of short videos of the facility in operation can be viewed on our website under Videos and Media.

Announced ET Area Drilling Results:

· On January 5, 2023, Avino announced drill results from 4 drill holes at the Avino Elena Tolosa (“ET”) area below the current deepest workings at the mine. These drill results show the Avino Vein to extend a further 315 metres downdip. This exploration program was designed to test the continuity of the steeply dipping mineralization and to understand the genesis of the mineralization. As a result, the Avino Vein is now known to extend 800 metres deep downdip. Additionally, it appears that the Avino Vein is getting richer in copper as we go deeper with a grade of 1.63% copper over 16.66 metres in Hole ET 22. Geological modelling is ongoing to determine the potential geometry and controls of the mineralization. The 2023 drill program is underway with 8,000 metres planned.

La Preciosa Update:

· The Company is conducting community engagement in the nearby towns adjacent to the property and will provide further updates as plans develop. Avino is fully committed to moving this project forward as it factors prominently in the Company’s 5-year growth strategy.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Financial Results – Three months ended March 31, 2023, compared to three months ended March 31, 2022

	Three months ended March 31,
	2023			2022
Revenue from mining operations	$	9,825		$	11,050
Cost of sales		7,974			6,306
Mine operating income		1,851			4,744
Operating expenses:
General and administrative expenses		1,184			1,116
Share-based payments		339			200
Income before other items		328			3,428
Other items:
Interest and other income (loss)		209			(7	)
Loss on long-term investments		(319	)		(686	)
Fair value adjustment on warrant liability		(293	)		233
Unrealized foreign exchange loss		(136	)		(605	)
Project evaluation expenses		-			(81	)
Finance cost		(74	)		(13	)
Accretion of reclamation provision		(11	)		(10	)
Interest expense		(45	)		(21	)
Income (loss) before income taxes		(341	)		2,238
Income taxes:
Current income tax expense		(25	)		(140	)
Deferred income tax expense		14			(1,452	)
Income tax expense		(11	)		(1,592	)
Net income (loss)		(352	)		646
Other comprehensive income (loss):
Currency translation differences		(263	)		357
Total comprehensive income (loss)	$	(615	)	$	1,003
Income (loss) per share
Basic	$	(0.00	)	$	0.01
Diluted	$	(0.00	)	$	0.01
Weighted average number of common shares outstanding
Basic		118,572,700			103,819,481
Diluted		122,602,929			107,234,957

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Revenues

The Company recognized revenues net of penalties, treatment costs and refining charges, of $9.8 million on the sale of Avino Mine bulk copper/silver/gold concentrate, compared to revenues of $11.1 million for Q1 2022, a decrease of $1.3 million.

The decrease in revenues is a direct result of 11% lower realized copper prices in the quarter compared to Q1 2022, as well as a negative adjustment for provisionally priced revenues of $0.2 million compared to a positive adjustment of $1.3 million in Q1 2022.

Metal prices for revenues recognized during the period were $23.29 per ounce of silver, $1,878 per ounce of gold, and $8,992 per tonne of copper, with comparable prices for Q1 2022, were $23.96 per ounce of silver, $1,866 per ounce of gold, and $10,047 per tonne of copper.

Cost of Sales & Mine Operating Income

Cost of sales was $8.0 million, compared to $6.3 million in Q1 2022, an increase of $1.7 million. The increase in cost of sales is partially attributable to 44% higher processed & milled tonnes in Q1 2023 compared to Q1 2022, which resulted in higher overall overhead costs despite similar ounces sold in the two comparable quarters. The increase is also attributable to a stronger Mexican peso during the quarter, and additional scheduled and budgeted maintenance during the period on the haulage ramp, as well as in the mill complex.

Mine operating income, after depreciation and depletion, was $1.9 million, compared to $4.7 million in Q1 2022. The decrease in mine operating income of the increased cost of sales noted above, with lower revenues than the comparative quarter, primarily due to timing of concentrate shipments and provisional pricing adjustments mentioned in Revenues above.

General and Administrative Expenses & Share-Based Payments

General and administrative expenses was $1.2 million, compared to $1.1 million in Q1 2022, with the small increases coming from the increased corporate activity surrounding ramp up procedures and the acquisition of La Preciosa.

Share-based payments was $0.3 million, compared to $0.2 million in Q1 2022, an increase of $0.1 million. The increase is a direct result of the timing of option and RSU grants, and fluctuations in share price from period to period.

Other Items

Other Items totaled a loss of $0.7 million for the period, a positive movement of $0.5 million compared to a loss of $1.2 million related to Other Items in Q1 2022.

Unrealized loss on long-term investment was $0.3 million, a positive movement of $0.4 million compared to a loss of $0.7 million in Q1 2022. This is a direct result of fluctuations in the Company’s investment in shares of Talisker Resources from period to period, as well as the Company’s investment in shares of Silver Wolf Exploration and Endurance Gold.

Fair value adjustment on warrant liability was a loss of $0.3 million, a negative movement of $0.5 million compared to a gain of $0.2 million in Q1 2022. The fair value adjustment on the Company’s warrant liability relates to the issuance of US dollar-denominated warrants, which are re-valued each reporting period, and the value fluctuates with changes in the US-Canadian dollar exchange rate, and in the variables used in the valuation model, such as the Company’s US share price, and expected share price volatility.

Foreign exchange loss for the period was $0.1 million, a positive movement of $0.5 million compared to a loss of $0.6 million in Q1 2022. Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar functional currency. During the quarter, the Canadian dollar and the US dollar depreciated in relation to the Mexican peso, resulting in a foreign exchange gain. During the three months ended March 31, 2022, the US dollar appreciated slightly in relation to the Canadian dollar but depreciated in relation to the Mexican peso, resulting in a foreign exchange loss.

The remaining Other Items had no impact on net income, a positive change of $0.1 million compared to a loss impact of $0.1 million for Q1 2022.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Current and Deferred Income Taxes

Current income tax expense decreased to Nil in Q1 2023, compared to $0.1 million in Q1 2022. The Company was able to use existing tax losses to offset income in the current period, as well as Q1 2022, and as such had minimal current income tax expense.

Deferred income tax recovery was Nil, a change of $1.5 million compared to expense of $1.5 million in Q1 2022. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to the special mining duty in Mexico and to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes during the current and comparable periods primarily relate to movements in the tax bases and mining profits and/or losses in Mexico.

Net Income/Loss

Net loss was $0.4 million for the period, or $0.00 per share, compared to net income of $0.6 million, or $0.01 per share during Q1 2022. The changes are a result of the items noted above, which are primarily decreases in revenues and mine operating income, increases in share-based payments between the two comparable quarters. Net income/loss was further impacted by movements in unrealized foreign exchange, fair value adjustments on the warrant liability, and an increased unrealized loss on investments as noted above.

EBITDA & Adjusted Income/Loss (see “Non-IFRS Measures”)

EBITDA was $0.3 million, a decrease of $2.5 million when compared to $2.8 million for Q1 2022. The changes in EBITDA are primarily a factor of the items above, excluding any changes in depreciation and depletion, and any changes in income taxes. See Non-IFRS Measures for a reconciliation for EBITDA.

Adjusted earnings for the period was $1.1 million, a decrease of $2.3 million when compared to adjusted earnings of $3.4 million in the corresponding quarter in 2022. Changes to adjusted losses are a result of the items noted above in EBITDA, further excluding share-based payments, gains and losses related to warrants, and movements in unrealized foreign exchange. See Non-IFRS Measures for a reconciliation for adjusted earnings.

Cash Costs & All-in Sustaining Cash Costs (see “Non-IFRS Measures”)

Cash costs per silver equivalent payable ounce, excluding stand-by costs, was $14.22, compared to $11.21 for Q1 2022. The increase in cost per ounce is a result of higher milled tonnes, resulting in higher overhead, with similar ounces sold in Q1 2023 when compared to Q1 2022, primarily due to the timing of concentrate shipments. The increase is also attributable to a stronger Mexican peso during the quarter increase, as well as additional scheduled and budgeted maintenance during the period on the haulage ramp, and at the mill complex.

All-in sustaining cash costs per silver equivalent payable ounce was $20.17, compared to $19.90 for Q1 2022, representing a minimal increase of 1%.

See Non-IFRS Measures for a reconciliation for cash costs and all-in sustaining cash costs.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Avino Mine Production Highlights

	Q1 2023	Q1 2022	Change %	Q1 2023	Q4 2022	Change %
Total Mill Feed (dry tonnes)	159,757	111,138	44%	159,757	150,292	6%
Feed Grade Silver (g/t)	51	50	2%	51	70	-27%
Feed Grade Gold (g/t)	0.58	0.29	100%	0.58	0.62	-6%
Feed Grade Copper (%)	0.47	0.56	-16%	0.47	0.53	-12%
Recovery Silver (%)	89%	92%	-3%	89%	92%	-3%
Recovery Gold (%)	77%	77%	-%	77%	81%	-5%
Recovery Copper (%)	84%	89%	-5%	84%	88%	-4%
Total Silver Produced (oz)	234,338	164,358	43%	234,338	309,856	-24%
Total Gold Produced (oz)	2,286	801	185%	2,286	2,426	-6%
Total Copper Produced (lbs)	1,397,637	1,217,349	15%	1,397,637	1,540,851	-9%
Total Silver Equivalent Produced (oz)*	678,247	457,798	48%	678,247	770,127	-12%

*In Q1 2023, AgEq was calculated using metals prices of $22.56 oz Ag, $1,888 oz Au and $4.05 lb Cu. In Q4 2022, AgEq was calculated using metals prices of $21.18 oz Ag, $1,729 oz Au and $3.63 lb Cu. In Q1 2022, AgEq was calculated using metals prices of $23.94 oz Ag, $1,874 oz Au and $4.53 lb Cu Calculated figures may not add up due to rounding.

Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company’s decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company’s discovery of the San Gonzalo and Avino Mine resources, and in the Company’s record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012.

Exploration

The Company has budgeted 8,000 metres of drilling in 2023, with a focus on at depth below the current Elena Tolosa production area. To date, the Company has completed approximately 4,200 metres of drilling in 2023. Further results on the area below the current production area at Elena Tolosa will be released in the coming weeks.

Additional information on the Company’s exploration and evaluation properties by region is as follows:

(a) Avino, Mexico

The Company’s subsidiary Avino Mexico owns 42 mineral claims and leases four mineral claims in the state of Durango, Mexico. The Company’s mineral claims in Mexico are divided into the following four groups:

(i) Avino Mine area property

The Avino mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares.

(ii) Gomez Palacio/Ana Maria property

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The Ana Maria property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares, and is also known as the Ana Maria property.

(iii) Santiago Papasquiaro property

The Santiago Papasquiaro property is located near the village of Santiago Papasquiaro, and consists of four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares.

(iv) Unification La Platosa properties

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine. 

(b) La Preciosa, Mexico

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc. (“Coeur”).

La Preciosa consists of 15 exploration concessions totaling 6,011 hectares located in Durango, Mexico, within the municipalities of Panuco de Coronado and Canatlan. The property is located within 20 kilometres of the Company’s current Avino mining operations.

(c) British Columbia & Yukon, Canada

Eagle Property - Yukon

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property.

During the three months ended March 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The claims were transferred on March 28, 2023, and subsequent to March 31, 2023, cash proceeds were received.

Minto and Olympic-Kelvin properties – British Columbia

On May 2, 2022, the Company has granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

As of March 31, 2023, Endurance was in compliance with all terms of the Option agreement. See Note 8 of the financial statements for further details.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Mineral Resource Update

During Q1 2023, the Company announced an updated mineral resource estimate (“MRE”) on the Avino Property, inclusive of the La Preciosa Property. The results of the MRE are summarized in the following table:

Avino Silver & Gold Mines – Consolidated Mineral Resources Summary1-2
Measured & Indicated Mineral Resources			Average Grade					Metal Contents
Resource Category	Deposit	Cut off (AgEq g/t)	Metric Tonnes (000s)	AgEq (g/t)	Ag (g/t)	Au (g/t)	Cu (%)	AgEq (M oz)	Ag (M oz)	Au (k oz)	Cu (M lb)
Measured	Avino – All Deposits	50 to 130	8,023	145	73	0.54	0.33	37.42	18.89	138.42	58.91
Total Measured	All Deposits	50 to 130	8,023	145				37.42	18.89	138.42	58.91
Indicated	Avino – All Deposits	50 to 130	26,638	144	60	0.54	0.41	123.34	51.06	459.23	242.48
Indicated	La Preciosa – All Deposits	120	17,441	202	176	0.34	-	113.14	98.59	189.19	-
Total Indicated	All Deposits	50 to 130	44,079	167				236.48	149.65	648.42	242.48
Total Measured & Indicated	All Deposits	50 to 130	52,103	164				273.90	168.55	785.84	301.40
Inferred Mineral Resources			Average Grade					Metal Contents
Inferred	Avino – All Deposits	See Above	19,313	112	46	0.34	0.37	69.61	28.42	212.64	158.49
Inferred	La Preciosa – All Deposits	120	4,397	170	151	0.25	-	24.10	21.33	35.48	-
Total Inferred	All Deposits		23,710	123				93.71	49.75	248.12	158.49

1.	Figures may not add to totals shown due to rounding. All ounces are troy ounces.
2.	Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3.	The Mineral Resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s (CIM) Definition Standards for Mineral Resources and Mineral Reserves incorporated by reference into National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects.
4.	Based on recent mining costs Mineral Resources are reported at AgEq cut-off grades of 60 g/t, 130 g/t, and 50 g/t for ET, San Gonzalo, and Oxide Tailings, respectively. The cut-off grades for Guadalupe and La Potosina are 100 g/t.
5.	AgEQ or silver equivalent ounces are notional, based on the combined value of metals expressed as silver ounces.
6.	The silver equivalent was back-calculated using the following formulas:

1.	ET, Guadalupe, La Potosina: AgEq (g/t) = Ag (g/t) + (71.43 x Au (g/t) + (113.04 x Cu (%))
2.	San Gonzalo: AgEq (g/t) = Ag (g/t) + (75.39 x Au (g/t))
3.	Oxide Tailings: AgEq (g/t) = Ag (g/t) + (81.53 x Au (g/t))

7.	Cut-off grades were calculated using the following consensus metal price assumptions: gold price of US$1,800/oz, silver price of US$21.00/oz, and copper price of US$3.50/lb.
8.	Metal recovery is based on operational results and column testing.

Avino Property Highlights (Comparisons are to 2020 Mineral Resource Estimate on the Avino Property)

· 161 million measured and indicated silver equivalent ounces, an increase of 38%, made up of:

· 70 million silver ounces, an increase of 35%

· 136.7 thousand copper tonnes, an increase of 18%

· 596 thousand gold ounces, an increase of 23%, contained in:

· 34.7 million measured and indicated metric tonnes, increase of 28% overall, also

· 70 million inferred silver equivalent ounces, an increase of 90%

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Oxide Tailings Highlights (Comparisons are to 2020 Mineral Resource Estimate on the Avino Property)

· 5.7 million tonnes of measured and indicated mineral resources, an increase of 407%

· 17.4 million measured and indicated silver equivalent ounces, an increase of 287%

Oxide Tailings Metallurgical Testwork

On April 5, 2023, the Company announced metallurgical results from the testwork program on its oxide tailings project (“Oxide Tailings” or the “Project”). The Project hosts gold and silver from past producing historic operations in an inactive tailings facility located on the Avino property with a 5.7 million tonnes of measured and indicated resource grading 95 g/t of silver equivalent. Historically, near surface oxidised material was not recovered well by Avino’s conventional flotation mill, which has created this opportunity for re-processing the tailings with a cyanide leaching process.

Highlights from the testwork:

The project consists of three types of tailings that are categorized by grade as well as identified in three stratigraphic layers within the deposit based on the time period when they were processed. They are, Ancient Oxides, Recent Oxides and Sulphides, and each type was sampled and tested separately.  The average grades are shown below.

Table 1: Average Grade of Each Tailings Type

Sample	Description	Au g/t	Ag g/t
Ancient Oxides	Original Duplicate	0.45 0.43	101.0 92.0
Recent Oxides	Original Duplicate	0.48 0.49	37.0 49.0
Sulphides	Original Duplicate	0.24 0.25	21.0 19.0

The project exhibits an excellent response using conventional metallurgical techniques.

Recovery Highlights include:

Ancient Oxides

· Gold Recovery up to 89.5% and silver recovery of up 90.4% in a conventional bottle roll.

Recent Oxides

· Gold Recovery up to 85.8% and silver recovery of up 83.4% in a conventional bottle roll.

Sulphides

· Gold Recovery up to 82.8% and silver recovery of up 76.1% in a conventional bottle roll.

The conventional bottle roll test parameters for the three samples were achieved at a particle size of eighty percent passing 75 microns using 500 to 1000ppm sodium cyanide and a retention time of 60-72 hours. The metallurgical test program was completed by SGS de Mexico (“SGS”), a leading metallurgical testing and consulting firm based in Durango Mexico. The testwork was completed on a composite sample from approximately 437 kg of HQ core from a sonic drill from 127 drill holes drilled into the oxide tailings resource in 2021 and 2022.  Each type of tailings was identified and separated so that a composite for each style of tailings could be created. Both the deposition style and appearance of the tailings within the drill core allowed for relatively straight forward categorization. The sulphides section used 158.9 kg of sample, the ancient oxides used 135.5 kg and the recent oxides 142.7 kg.

The testwork program included chemical analysis, size fraction analysis, agglomeration, bulk leaching extractable gold test, bottle roll test to simulate agitated leaching, column leaching tests to simulate heap leaching, flotation, and cyanide detoxification using sodium hypochlorite.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Table 2: Summary of Recoveries for the Sulphides Sample
Description	Au %	Ag %
Flotation Agitation leaching Heap leaching	45.8 82.7 74.0	46.5 68.9 88.8

Table 3: Summary of Recoveries for the Ancient Oxide Sample
Description	Au %	Ag %
Flotation Agitation leaching Heap leaching	46.3 88.2 75.5	45.5 86.0 76.2

Table 4: Summary of Recoveries for the Recent Oxide Sample
Description	Au %	Ag %
Flotation Agitation leaching Heap leaching	47.6 85.7 76.0	45.5 78.6 63.7

Ongoing Testwork

In addition to these leaching and flotation results, ongoing testing consists of the thickening, filtering, communition optimization, cyanide detoxification, gravity testwork as well as specific gravity and bulk density testwork that will be fed into the PFS for appropriate flowsheet design, sizing and costing.

Qualified Person(s)

Peter Latta, P.Eng, MBA, VP Technical Services, Avino, is a qualified person within the context of National Instrument 43-101, and has reviewed and approved the technical data in this document.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Non – IFRS Measures

EBITDA and Adjusted earnings

Earnings, or loss, before interest, taxes and amortization (“EBITDA”) is a non IFRS financial measure which excludes the following items from net earnings:

· Income tax expense

· Finance cost

· Amortization and depletion

Adjusted earnings excludes the following additional items from EBITDA

· Share based compensation;

· Non-operational items including foreign exchange movements, fair value adjustments on outstanding warrants and other non-recurring items

Management believes EBITDA and adjusted earnings provides an indication of continuing capacity to generate operating cash flow to fund capital needs, service debt obligations and fund capital expenditures. These measures are intended to provide additional information to investors and analysts. There are not standardized definitions under IFRS and should not be considered in isolation or as a substitute for measures of operating performance prepared in accordance with IFRS.

Adjusted earnings excludes share-based payments, and non-operating or recurring items such as foreign exchange gains and losses and fair value adjustments on outstanding warrants. Under IFRS, entities must reflect within compensation expense the cost of share-based payments. In the Company’s circumstances, share-based compensation can involve significant amounts that will not be settled in cash but are settled by issuance of shares in exchange. The Company discloses adjusted earnings to aid in understanding the results of the company.

The following table provides a reconciliation of net earnings in the financial statements to EBITDA and adjusted earnings:

Expressed in 000’s of US$, unless otherwise noted	Q1 2023	Q1 2022	Q1 2023	Q4 2022
Net income (loss) for the period	$             (352)	$             646	$           (366)	$          1,296
Depreciation and depletion	705	489	705	628
Interest income and other	(209)	7	(209)	47
Interest expense	45	21	45	33
Finance cost	74	13	74	85
Accretion of reclamation provision	11	10	11	12
Current income tax expense	26	140	26	502
Deferred income tax expense (recovery)	(14)	1,452	(14)	604
EBITDA	$             286	$          2,778	$             286	$          3,207
Fair value adjustment on warrant liability	293	(233)	293	297
Share-based payments	339	200	339	406
Write down of equipment	-	-	-	330
Foreign exchange loss (gain)	136	605	136	214
Adjusted earnings (loss)	$          1,054	$          3,350	$          1,054	$          4,026
Shares outstanding (diluted)	122,602,929	107,234,957	122,602,929	120,097,423
Adjusted earnings (loss) per share	$            0.01	$            0.03	$            0.01	$            0.03

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Cash cost per payable ounce, all-in sustaining cash cost per payable ounce, and cash flow per share

Cash cost per payable ounce, all-in sustaining cash cost per payable ounce, and cash flow per share are measures developed by mining companies in an effort to provide a comparable standard. However, there can be no assurance that our reporting of these non-IFRS measures is similar to that reported by other mining companies. Total cash cost per payable ounce, all-in sustaining cash cost per payable ounce, and cash flow per share are measures used by the Company to manage and evaluate operating performance of the Company’s mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS, and are disclosed in addition to IFRS measures.

Management believes that the Company’s ability to control the cash cost per payable silver equivalent ounce is one of its key performance drivers impacting both the Company’s financial condition and results of operations. Achieving a low silver equivalent production cost base allows the Company to remain profitable from mining operations even during times of low commodity prices, and provides more flexibility in responding to changing market conditions. In addition, a profitable operation results in the generation of positive cash flows, which then improve the Company’s financial condition.

The Company has adopted the reporting of “all-in sustaining cash cost per silver equivalent payable ounce”. This measure has no standardized meaning throughout the industry. However, it is intended to provide additional information. Avino presents all-in sustaining cash cost, because it believes that it more fully defines the total current cost associated with producing a silver equivalent payable ounce. Further, the Company believes that this measure allows investors of the Company to better understand its cost of producing silver equivalent payable ounces, and better assess the Company’s ability to generate cash flow from operations. Although the measure seeks to reflect the full cost per silver equivalent ounce of production from current operations, it does not include capital expenditures attributable to mine expansions, exploration, and evaluation costs attributable to growth projects, income tax payments, and financing costs. In addition, the calculation of all-in sustaining cash costs does not include depreciation and depletion expense as it does not reflect the impact of expenditures incurred in prior periods.

The Company’s calculation of all-in sustaining cash costs includes sustaining capital expenditures of $164 for the three months ended March 31, 2023 (March 31, 2022 - $576) and all of which is attributable to the Avino Mine

The Company also presents cash flow per share, as it believes it assists investors and other stakeholders in evaluating the Company’s overall performance and its ability to generate cash flow from current operations. To facilitate a better understanding of these measures as calculated by the Company, detailed reconciliations between the non-IFRS measures and the Company’s consolidated financial statements are provided below. The measures presented are intended to provide additional information, and should not be considered in isolation nor should they be considered substitutes for IFRS measures. Calculated figures may not add up accurately due to rounding.

Cash Cost and All-in Sustaining Cash Cost per Silver Equivalent Payable Ounce

The following table provide a reconciliation of cost of sales from the consolidated financial statements to cash cost and all-in sustaining cash cost per silver equivalent payable ounce sold. In each table, “silver equivalent payable ounces sold” consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices for the corresponding period.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The following table reconciles cost of sales to cash cost per payable AgEq oz and all-in sustaining cash cost per payable AgEq oz for the preceding quarters:

Expressed in 000’s of US$, unless otherwise noted	Avino – Consolidated
	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
Cost of sales	$  7,974	$  10,293	$  7,058	$  5,468	$  6,306	$  4,912	$  1,043	$  1,017
Exploration expenses	(95)	(472)	(336)	(305)	(296)	(214)	(308)	(129)
Stand-by costs during strike action	-	-	-	-	-	-	-	(425)
Write down of equipment	-	(330)	-	-	-	-	-	-
Depletion and depreciation	(670)	(592)	(514)	(481)	(459)	(741)	(319)	(463)
Cash production cost	7,209	8,899	6,208	4,682	5,551	3,957	416	-
Payable silver equivalent ounces sold	506,727	756,536	603,360	594,700	495,109	435,885	107,112	-
Cash cost per silver equivalent ounce	$   14.22	$   11.76	$  10.29	$  7.87	$  11.21	$    9.08	$  3.87	$       -
General and administrative expenses	1,524	2,094	1,553	2,218	1,316	967	1,094	1,475
Treatment & refining charges	709	784	568	700	766	529	127	-
Penalties	898	1,649	1,705	897	1,578	1,200	255	-
Sustaining capital expenditures	164	639	672	1,586	576	774	855	57
Exploration expenses	95	472	336	305	296	214	308	129
Stand-by costs during stoppages	-	-	-	-	-	-	-	425
Share-based payments and G&A depreciation	(374)	(442)	(591)	(899)	(230)	(125)	(312)	(528)
Cash operating cost	$  10,223	$  14,095	$  10,451	$  9,489	$  9,853	$  7,516	$  2,743	$  1,558
AISC per silver equivalent ounce	$  20.17	$  18.63	$  17.32	$  15.95	$  19.90	$  17.24	$  25.60	$          -

Working Capital

	March 31, 2023			December 31, 2022
Current assets	$	18,434		$	25,585
Current liabilities		(13,325	)		(16,764	)
Working capital	$	5,109		$	8,821

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Results of Operations

Summary of Quarterly Results

(000’s)	2023			2022		2022			2022		2022		2021		2021			2021
Quarter ended	Mar 31 Q1			Dec 31 Q4		Sep 30 Q3			Jun 30 Q2		Mar 31 Q1		Dec 31 Q4		Sep 30 Q3			Jun 30 Q2
Revenue	$	9,825		$	14,649	$	9,118		$	9,370	$	11,050	$	9,318	$	1,881			-
Net income (loss) from all operations  for the quarter		(352	)		1,296		(1,129	)		2,283		646		2,629		(214	)		(2,654	)
Earnings (loss) per share from all operations - basic	$	0.00		$	0.01	$	(0.01	)	$	0.02	$	0.01	$	0.03	$	(0.00	)	$	(0.03	)
Earnings (loss) per share from all operations - diluted	$	0.00		$	0.01	$	(0.01	)	$	0.02	$	0.01	$	0.04	$	(0.00	)	$	(0.03	)
Total Assets	$	118,606		$	121,196	$	118,404		$	118,092	$	114,507	$	86,264	$	82,109		$	83,024

· Revenue decreased in Q1 2023 compared to Q4 2022 due to lower concentrate tonnes shipped & sold during the current quarter. This was partially due to the timing of concentrate shipments, with one shipment planned for Q1 2023 being pushed into Q2 2023, which led to 33% lower ounces sold in Q1 2023 when compared to Q4 2022. This was after having seen Q4 2022 increase compared to other previous quarters following the restart of operations during Q3 2021 and the commencement of sales in September 2021.

· A net loss was generated in Q1 2023 primarily due to lower revenues and ounces sold than Q4 2022. For further details see “Financial Results” section.

· Total assets increased have increased overall when compared to previous quarters excluding Q4 2022, as result of the acquisition of La Preciosa as well as the increased operating cash flow generation.

Quarterly results will fluctuate with changes in revenues, cost of sales, general and administrative expenses, including non-cash items such as share-based payments, and other items including foreign exchange and deferred income taxes.

Cash Flow

(000’s)	March 31, 2023			March 31, 2022
Cash generated by operating activities	$	448		$	3,450
Cash generated by (used in) financing activities		(166	)		(290	)
Cash used in investing activities		(8,839	)		(16,246	)
Change in cash		(8,557	)		(13,086	)
Effect of exchange rate changes on cash		9			7
Cash, beginning of period		11,686			24,765
Cash, end of period	$	2,697		$	11,686

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Operating Activities

Cash generated by operating activities for the three months ended March 31, 2023, was $0.4 million compared to $3.5 million used for the three months ended March 31, 2022. Cash movements from operating activities can fluctuate with changes in net income and working capital movements. In Q1 2023, cash generated from operating activities decreased by $3.0 million primarily due to lower mine operating income as a result of higher levels of production with limited increase in sales volumes during the quarter.

Financing Activities

Cash used in financing activities was $0.2 million for the three months ended March 31, 2023, compared to $0.3 million for the three months ended March 31, 2022. The decrease is a result of higher lease and equipment loan payments, partially offset by proceeds from shares issued on the ATM. During the three months ended March 31, 2023, the Company received net proceeds from issuance of shares for cash of $0.2 million (March 31, 2022 – Nil). The Company also made finance lease and equipment loan payments totalling $0.4 million (March 31, 2022 - $0.3 million).

Investing Activities

Cash used in investing activities for the three months ended March 31, 2023, was $8.8 million compared to $16.2 million for the three months ended March 31, 2022. Cash used in investing activities included cash capital expenditures and exploration and evaluation expenditures of $3.8 million (March 31, 2022 - $0.9 million) on the acquisition of property and equipment and exploration expenditures, as well as $5.0 million related to the repayment of the promissory note associated with the acquisition of La Preciosa, compared to $15.3 million on the upfront payments in Q1 2022.

Liquidity and Capital Resources

The Company’s ability to generate sufficient amounts of cash, in both the short term and the long term, to maintain existing capacity and to fund ongoing exploration, is dependent upon the discovery of economically recoverable reserves or resources and the ability of the Company to obtain the financing necessary to generate and sustain profitable operations.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Management expects that the Company’s ongoing liquidity requirements will be funded from cash generated from current operations and from further financing, as required, in order to fund ongoing exploration activities, and meet its objectives, including ongoing advancement at the Avino Mine. The Company continues to evaluate financing opportunities to advance its projects. The Company’s ability to secure adequate financing is, in part, dependent on overall market conditions, the prices of silver, gold, and copper, and other factors outside the Company’s control. There is no guarantee the Company will be able to secure any or all necessary financing in the future. The Company’s recent financing activities are summarized in the table below.

Intended Use of Proceeds	Actual Use of Proceeds
During 2021, the Company received net proceeds of $18.1 million in connection with a brokered at-the-market offering issued under prospectus supplements, $0.8 million in connection with warrants exercised and $0.2 million in connection with stock options exercised.	As of the date of this MD&A, the Company is using the funds as intended. During 2021, the Company announced an increase to its exploration from 12,000 to 30,600 metres of exploration and resource drilling. As of the date of this MD&A, over 20,000 metres of the program had been completed. In supporting mining operations in Mexico, the Company acquired la Preciosa for net cash consideration of $15.4 million. During 2022, the remaining $3.7 million was used for exploration and evaluation activities, the acquisition of property and equipment, the repayment of capital equipment acquired under lease and loan.
During 2020, the Company received net proceeds of $4.7 million in connection with a brokered at-the-market offering issued under prospectus supplements and $3.7 million in connection with warrants exercised.	As of the date of this MD&A, the Company had used, and was continuing to use, the funds as intended. There has been no impact on the ability of the Company to achieve its business objectives and milestones. The Company intends to continue to explore its properties, as described above, subject to market conditions and the ability to continue to obtain suitable financing.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Transactions with Related Parties

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party. 

(a) Key management personnel

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the three months ended March 31, 2023 and 2022 is as follows:

	Three months ended March 31,
	2023		2022
Salaries, benefits, and consulting fees	$	284	$	439
Share‐based payments		321		157
	$	605	$	596

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

(b) Amounts due to related parties

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. The following table summarizes the amounts due to related parties:

	March 31, 2023			December 31, 2022
Oniva International Services Corp.	$	100		$	100
Silver Wolf Exploration Ltd.		(77	)		(72	)
Directors Fees		44			-
	$	67		$	28

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s president and CEO and also a director, for consulting services. For the three months ended March 31, 2023, the Company paid $71 (March 31, 2022 - $126) to ICC.

(c) Other related party transactions

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

The transactions with Oniva during the three months ended March 31, 2023 and 2022 are summarized below:

	March 31, 2023		March 31, 2022
Salaries and benefits	$	245	$	220
Office and miscellaneous		133		97
	$	378	$	317

Financial Instruments and Risks

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

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MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

(a) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with four (December 31, 2022 – two) counterparty. However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the highly-rated nature of the counterparties.

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the unaudited consolidated statement of financial position. At March 31, 2023, no amounts were held as collateral.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2023, in the amount of $2,697 and working capital of $5,109 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of term facility, equipment loans, and finance lease obligations are due within 12 months of the consolidated statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2023, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,922	$	10,922	$	-	$	-
Amounts due to related parties		67		67		-		-
Minimum rental and lease payments		849		105		346		398
Equipment loans		481		165		316		-
Finance lease obligations		2,925		1,523		1,402		-
Total	$	15,244	$	12,782	$	2,064	$	398

(c) Market Risk

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

19 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Interest Rate Risk

Interest rate risk consists of two components:

(i)	To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.
(ii)	To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

In management’s opinion, the Company is exposed to interest rate risk primarily on its outstanding term facility, as the interest rate is subject to floating rates of interest. A 10% change in the interest rate would not result in a material impact on the Company’s operations.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

	March 31, 2023						December 31, 2022
	MXN			CDN			MXN			CDN
Cash	$	5,063		$	219		$	4,097		$	250
Due from related parties		1,402			-			1,402			-
Long-term investments		-			1,984			-			2,365
Reclamation bonds		-			6			-			4
Amounts receivable		1,549			302			-			34
Accounts payable and accrued liabilities		(76,052	)		(54	)		(85,486	)		(108	)
Due to related parties		-			(195	)		-			(135	)
Finance lease obligations		(880	)		(331	)		(161	)		(343	)
Net exposure		(68,918	)		1,931			(80,148	)		2,067
US dollar equivalent	$	(3,811	)	$	1,426		$	(4,136	)	$	1,526

Based on the net US dollar denominated asset and liability exposures as at March 31, 2023, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2023, by approximately $251 (year ended December 31, 2022 - $275). The Company has not entered into any foreign currency contracts to mitigate this risk.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2023, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $17 (December 31, 2022 – loss of $65).

20 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2023, a 10% change in market prices would have an impact on net earnings (loss) of approximately $143 (December 31, 2022 - $175).

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

(d) Classification of Financial Instruments

IFRS 7 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2023:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,697	$	-	$	-
Amounts receivable		-		2,015		-
Long-term investments		1,466		-		-
Total financial assets	$	4,163	$	2,015	$	-
Financial liabilities
Warrant liability		-		-		(771	)
Total financial liabilities	$	-	$	-	$	(771	)

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2023, the Company’s Level 3 financial instruments consisted of the warrant liability.

For the Company’s warrant liability valuation and fair value adjustments during the three months ended March 31, 2023 and the year ended December 31, 2022, see Note 13 of the condensed consolidated interim statements of operations.

21 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Commitments

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in the “Transactions with Related Parties” section.

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

	March 31, 2023		December 31, 2022
Not later than one year	$	103	$	105
Later than one year and not later than five years		347		347
Later than five years		375		398
	$	825	$	850

Office lease payments recognized as an expense during the three months ended March 31, 2023, totalled $4 (March 31, 2022 - $16).

Outstanding Share Data

The Company’s authorized share capital consists of an unlimited number of common shares without par value.

As at May 10, 2023 the following common shares, warrants, and stock options were outstanding:

	Number of shares		Exercise price		Remaining life (years)
Share capital		119,195,457		-		-
Warrants (US$)		8,950,412	$0.80 - $1.09		0.37 – 0.38
Restricted Share Units (“RSUs”)		3,406,999		-	0.24 – 2.89
Stock options		6,626,000	C$0.79 - C$1.64		0.30 – 4.89
Fully diluted		138,178,868

The following are details of outstanding stock options as at March 31, 2023 and May 10, 2023:

Expiry Date	Exercise Price Per Share	Number of Shares Remaining Subject to Options (March 31, 2023)		Number of Shares Remaining Subject to Options (May 10, 2023)
August 28, 2023	C$1.30		105,000		105,000
August 21, 2024	C$0.79		126,000		126,000
August 4, 2025	C$1.64		1,680,000		1,680,000
March 25, 2027	C$1.20		2,340,000		2,340,000
May 4, 2027	C$0.92		25,000		25,000
March 29, 2028	C$1.12		2,370,000		2,370,000
Total:			6,626,000		6,626,000

22 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

The following are details of outstanding warrants as at March 31, 2023 and May 10, 2023:

Expiry Date	Exercise Price Per Share		Number of Underlying Shares (March 31, 2023)		Number of Underlying Shares (May 10, 2023)
September 21, 2023	$	1.09		7,000,000		7,000,000
September 25, 2023	$	0.80		1,950,412		1,950,412
Total:				8,950,412		8,950,412

The following are details of outstanding RSUs as at March 31, 2023 and May 10, 2023:

Expiry Date	Number of Shares Remaining Subject to RSUs (March 31, 2023)		Number of Shares Remaining Subject to RSUs (May 10, 2023)
August 4, 2023		412,666		412,666
March 25, 2025		1,185,333		1,185,333
March 29, 2026		1,809,000		1,809,000
Total:		3,406,999		3,406,999

Recent Accounting Pronouncements

Application of new and revised accounting standards:

Future Changes in Accounting Policies Not Yet Effective as at March 31, 2023:

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the current or future reporting periods.

Disclosure Controls and Procedures

Management, including our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures on financial reporting (as defined in NI 52-109 - Certification of Disclosure in Issuers’ Annual and Interim Filings and as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) and has concluded that, based on its evaluation, that the Company’s disclosure controls and procedures were not effective as of March 31, 2023 due to a material weakness in internal control over financial reporting that was disclosed in our management’s discussion and analysis for the year ended December 31, 2022.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the three months ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Based on this evaluation, management concluded that as of March 31, 2023, the Company’s internal controls over financial reporting, as defined in NI 52-109 - Certification of Disclosure in Issuer’s Annual and Interim Filings and as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) were ineffective as of March 31, 2023.

23 | Page

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2023

Remediation

The Company has begun implementing a remediation plan to address the material weakness described in the audited financial statements for the year ended December 31, 2022. The material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We expect that the remediation of the material weakness will be completed prior to the end of the year ended December 31, 2023.

Cautionary Statement

This MD&A is based on a review of the Company’s operations, financial position and plans for the future based on facts and circumstances as of May 10, 2023. Except for historical information or statements of fact relating to the Company, this document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements in this document include, but are not limited to, those regarding the economic outlook for the mining industry, expectations regarding metals prices, expectations regarding production output, production costs, cash costs and other operating results, expectations regarding growth prospects and the outlook for the Company’s operations, and statements regarding the Company’s liquidity, capital resources, and capital expenditures. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change, except as required by applicable securities regulations. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

24 | Page

EX-99.3

EXHIBIT 99.3

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, David Wolfin, Chief Executive Officer, of Avino Silver & Gold Mines Ltd., certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Avino Silver & Gold Mines Ltd. (the “issuer”) for the interim period ended March 31, 2023.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

1

5.2 ICFR – material weakness relating to design – The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the financial year end:

(a)	A description of the material weakness;
(b)	The impact of the material weakness on the issuer’s financial reporting and its ICFR; and
(c)	The issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness

5.3 Limitation on scope of design - N/A

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2023 and ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 10, 2023

“David Wolfin”                                                                           

David Wolfin

Chief Executive Officer

2

EX-99.4

EXHIBIT 99.4

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Nathan Harte, Chief Financial Officer, of Avino Silver & Gold Mines Ltd., certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Avino Silver & Gold Mines Ltd. (the “issuer”) for the interim period ended March 31, 2023.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

1

5.2 ICFR – material weakness relating to design – The issuer has disclosed in its interim MD&A for each material weakness relating to design existing at the financial year end:

(a)	A description of the material weakness;
(b)	The impact of the material weakness on the issuer’s financial reporting and its ICFR; and
(c)	The issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness

5.3	Limitation on scope of design - N/A
6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2023 and ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 10, 2023

“Nathan Harte”                                                                          

Nathan Harte

Chief Financial Officer

2

XML

Cover	3 Months Ended
	Mar. 31, 2023
Cover [Abstract]
Entity Registrant Name	AVINO SILVER & GOLD MINES LTD
Entity Central Index Key	0000316888
Document Type	6-K
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Entity File Number	001-35254
Entity Address Address Line 1	Suite 900
Entity Address Address Line 2	570 Granville Street
Entity Address City Or Town	Vancouver
Entity Address State Or Province	BC
Entity Address Postal Zip Code	V6C 3P1

XML

Condensed Consolidated Interim Statements of Financial Position - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash	$ 2,697,000	$ 11,245,000
Amounts receivable	2,015,000	2,672,000
Taxes recoverable	4,363,000	3,737,000
Prepaid expenses and other assets	1,689,000	1,671,000
Inventory	7,670,000	6,260,000
Total current assets	18,434,000	25,585,000
Exploration and evaluation assets	50,094,000	49,804,000
Plant, equipment and mining properties	48,608,000	44,056,000
Long-term investments	1,466,000	1,746,000
Other assets	4,000	5,000
Total assets	118,606,000	121,196,000
Current liabilities
Accounts payable and accrued liabilities	10,922,000	9,469,000
Amounts due to related parties	67,000	28,000
Taxes payable	28,000	895,000
Note payable	0	4,926,000
Warrant liability	771,000	475,000
Current portion of equipment loans	165,000	0
Current portion of finance lease obligations	1,372,000	971,000
Total current liabilities	13,325,000	16,764,000
Equipment loans	316,000	0
Finance lease obligations	1,306,000	745,000
Reclamation provision	505,000	445,000
Deferred income tax liabilities	5,207,000	5,221,000
Total liabilities	20,659,000	23,175,000
EQUITY
Share capital	146,229,000	145,515,000
Equity reserves	9,679,000	9,852,000
Treasury shares (14,180 shares, at cost)	(97,000)	(97,000)
Accumulated other comprehensive loss	(5,486,000)	(5,223,000)
Accumulated deficit	(52,378,000)	(52,026,000)
Total equity	97,947,000	98,021,000
Total liabilities and equity	$ 118,606,000	$ 121,196,000

XML

Condensed Consolidated Interim Statements of Financial Position (Parenthetical) - shares	Mar. 31, 2023	Dec. 31, 2022
Condensed Consolidated Interim Statements of Financial Position
Treasury Shares	14,180	14,180

XML

Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (Unaudited)
Revenue from mining operations	$ 9,825	$ 11,050
Cost of sales	7,974	6,306
Mine operating income	1,851	4,744
Operating expenses:
General and administrative expenses	1,184	1,116
Share-based payments	339	200
Income before other items	328	3,428
Other items:
Interest and other income (loss)	209	(7)
Loss on long-term investments	(319)	(686)
Fair value adjustment on warrant liability	(293)	233
Unrealized foreign exchange loss	(136)	(605)
Project evaluation expenses	0	(81)
Finance cost	(74)	(13)
Accretion of reclamation provision	(11)	(10)
Interest expense	(45)	(21)
Income (loss) before income taxes	(341)	2,238
Income taxes:
Current income tax expense	(25)	(140)
Deferred income tax recovery (expense)	14	(1,452)
Income tax expense	(11)	(1,592)
Net income (loss)	(352)	646
Other comprehensive income (loss):
Currency translation differences	(263)	357
Total comprehensive income (loss)	$ (615)	$ 1,003
Income (loss) per share
Basic	$ (0.00)	$ 0.01
Diluted	$ (0.00)	$ 0.01
Weighted average number of common shares outstanding
Basic	118,572,700	103,819,481
Diluted	122,602,929	107,234,957

XML

Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Equity Reserve	Treasury Shares	Number of Common Shares	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance, shares at Dec. 31, 2021				102,243,211
Balance, amount at Dec. 31, 2021	$ 78,507	$ 9,573	$ (97)	$ 129,953	$ (4,969)	$ (55,953)
Statement [Line Items]
Exercise of options, shares				48,000
Exercise of options, amount	31	(15)	0	$ 46	0	0
Common shares issued for acquisition of La Preciosa, shares				14,000,000
Common shares issued for acquisition of La Preciosa, amount	13,650	0	0	$ 13,650	0	0
Share-based payments	200	200	0	0	0	0
Net income for the period	646	0	0	0	0	646
Currency translation differences	357	0	0	0	357	0
Balance, amount at Mar. 31, 2022	93,391	9,758	(97)	$ 143,649	(4,612)	(55,307)
Balance, shares at Mar. 31, 2022				116,291,211
Balance, shares at Dec. 31, 2022				118,349,090
Balance, amount at Dec. 31, 2022	98,021	9,852	(97)	$ 145,515	(5,223)	(52,026)
Statement [Line Items]
Share-based payments	339	339	0	0	0	0
Net income for the period	(352)	0	0	0	0	(352)
Currency translation differences	(263)	0	0	$ 0	(263)	0
At the market issuances, shares				253,700
At the market issuances, amount	207	0	0	$ 207	0	0
Carrying value of RSUs exercised, shares				592,667
Carrying value of RSUs exercised, amount	0	(512)	0	$ 512	0	0
Issuance costs	(5)	0	0	(5)	0	0
Balance, amount at Mar. 31, 2023	$ 97,947	$ 9,679	$ (97)	$ 146,229	$ (5,486)	$ (52,378)
Balance, shares at Mar. 31, 2023				119,195,457

XML

Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Activities
Net income (loss)	$ (352)	$ 646
Adjustments for non-cash items:
Deferred income tax recovery	(14)	1,452
Depreciation and depletion	705	490
Accretion of reclamation provision	11	10
Loss on investments	319	686
Unrealized foreign exchange loss (gain)	(161)	392
Unwinding of fair value adjustment	74	9
Fair value adjustment on warrant liability	293	(233)
Share-based payments	339	200
Cash Flows From Used In Operations Before Changes In Working Capital	1,214	3,652
Net change in non-cash working capital items	448	3,450
Cash provided by operating activities	766	202
Financing Activities
Shares and units issued for cash, net of issuance costs	202	30
Finance lease payments	(280)	(320)
Equipment loan payments	(88)	0
Cash used in financing activities	(166)	(290)
Investing Activities
Exploration and evaluation expenditures	(389)	(85)
Additions to plant, equipment and mining properties	(3,450)	(853)
Acquisition of La Preciosa	(5,000)	(15,308)
Cash used in investing activities	(8,839)	(16,246)
Change in cash	(8,557)	(13,086)
Effect of exchange rate changes on cash	9	7
Cash, Beginning	11,245	24,765
Cash, ending	$ 2,697	$ 11,686

XML

NATURE OF OPERATIONS

3 Months Ended

Mar. 31, 2023

Nature Of Operations

1. NATURE OF OPERATIONS

Avino Silver & Gold Mines Ltd. (the “Company” or “Avino”) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties.

The Company’s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada and the United States, and trades on the Toronto Stock Exchange (“TSX”), the NYSE American, and the Frankfurt and Berlin Stock Exchanges.

The Company operates the Avino Mine which produces copper, silver and gold at the historic Avino property in the state of Durango, Mexico. The Company also holds 100% interest in Proyectos Mineros La Preciosa S.A. de C.V . (“La Preciosa”), a Mexican corporation which owns the La Preciosa Property. The Company also owns interests in mineral properties located in British Columbia and Yukon, Canada.

XML

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2023

Basis Of Presentation

2. BASIS OF PRESENTATION

Statement of Compliance

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 – Interim Financial Reporting under International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These unaudited condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual audited consolidated financial statements of the Company. These unaudited condensed consolidated interim financial statements do not contain all of the information required for full annual consolidated financial statements. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s December 31, 2022, annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB.

These unaudited condensed consolidated interim financial statements are expressed in US dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value.  In addition, these unaudited condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out in the December 31, 2022, annual consolidated financial statements are applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as if the policies have always been in effect.

Significant Accounting Judgments and Estimates

The Company’s management makes judgments in its process of applying the Company’s accounting policies to the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of the impacts on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements for the three months ended March 31, 2023, are consistent with those applied and disclosed in Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2022.

Basis of Consolidation

The unaudited condensed consolidated interim financial statements include the accounts of the Company and its Mexican subsidiaries as follows:

Subsidiary	Ownership Interest	Jurisdiction	Nature of Operations
Oniva Silver and Gold Mines S.A. de C.V.	100%	Mexico	Mexican operations and administration
Nueva Vizcaya Mining, S.A. de C.V.	100%	Mexico	Mexican administration
Promotora Avino, S.A. de C.V. (“Promotora”)	79.09%	Mexico	Holding company
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”)	98.45% direct 1.22% indirect (Promotora) 99.67% effective	Mexico	Mining and exploration
La Luna Silver & Gold Mines Ltd.	100%	Canada	Holding company
La Preciosa Silver & Gold Mines Ltd.	100%	Canada	Holding company
Proyectos Mineros La Preciosa S.A. de C.V.	100%	Mexico	Mining and exploration
Cervantes LLP	100%	U.S.	Holding company

Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the unaudited condensed consolidated interim financial statements.

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RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2023

Recent Accounting Pronouncements

3. RECENT ACCOUNTING PRONOUNCEMENTS

Future Changes in Accounting Policies Not Yet Effective as at March 31, 2023:

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the current or future reporting periods.

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ACQUISITION OF LA PRECIOSA

3 Months Ended

Mar. 31, 2023

Acquisition Of La Preciosa

4. ACQUISITION OF LA PRECIOSA

On March 21, 2022, the Company closed the acquisition with Coeur Mining Inc. (“Coeur”) of all of the issued and outstanding shares of Proyectos Mineros La Preciosa S.A de C.V, a Mexican corporation, and Cervantes LLC, a Delaware LLC, that together hold the La Preciosa property in Mexico (“La Preciosa”).

Total consideration paid to Coeur was comprised of:

a)	Cash consideration of $15.3 million paid;
b)	A promissory note for $5 million in favour of Coeur, payable without interest on or before March 21, 2023;
c)	14,000,000 common shares of Avino, with a value of 13.65 million on issuance;
d)	7,000,000 share purchase warrants with a total value at $2.24 million exercisable at $1.09 per share until September 21, 2023, representing a 25% premium to Avino’s 20-day volume weighted average trading price as of October 26, 2021;

Additionally, Avino issued the following consideration for which payment is contingent on a future event and due to acquisition date uncertainty these are valued at Nil. A liability for these contingent payments will be recognized when related activity and events occur.

e)	An additional cash payment of $8.75 million, to be paid no later than 12 months after initial production at La Preciosa, up to one-half of which may be paid in common shares of Avino (provided Coeur’s total shareholdings cannot exceed 19.9% of the Company’s total issued and outstanding shares);
f)	A 1.25% net smelter returns royalty on the Gloria and Abundancia areas of La Preciosa, and a 2.00% gross value royalty on all other areas of La Preciosa; and
g)	A payment of $0.25 per silver equivalent ounce (subject to inflationary adjustment) of new mineral reserves (as defined by NI 43-101) discovered and declared outside of the current mineral resource area at La Preciosa, subject to a cap of $50 million, and any such payments will be credited against any existing or future payments owing on the gross value royalty.

The transaction has been accounted for as an asset acquisition as La Preciosa is in the exploration and evaluation stage and had not demonstrated technical feasibility, commercial viability, or the ability to provide economic benefits. La Preciosa did not have the workforce, resources and/or reserves, mine plan, or financial resources to the meet the definition of a business for accounting purposes.

The purchase consideration has been assigned based on the relative fair values of the assets acquired and liabilities assumed and is summarized as follows:

Cash paid	$	15,301
Note payable		4,665
Common shares		14,630
Share purchase warrants		2,240
Total purchase consideration		36,836
Transaction costs		270
Total acquisition cost	$	37,106
Cash	$	168
Other current assets		471
Plant and equipment		1,621
Exploration and evaluation assets		37,618
Accounts payable		(2,772	)
Net assets acquired	$	37,106

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TAXES RECOVERABLE

3 Months Ended

Mar. 31, 2023

TAXES RECOVERABLE

5. TAXES RECOVERABLE

The Company’s taxes recoverable consist of the Mexican I.V.A. (“VAT”) and income taxes recoverable and Canadian sales taxes (“GST/HST”) recoverable.

	March 31, 2023		December 31, 2022
VAT recoverable	$	1,826	$	1,385
GST recoverable		39		25
Income taxes recoverable		2,498		2,327
	$	4,363	$	3,737

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INVENTORY

3 Months Ended

Mar. 31, 2023

Inventory

6. INVENTORY

	March 31, 2023		December 31, 2022
Process material stockpiles	$	2,662	$	2,788
Concentrate inventory		2,654		1,617
Materials and supplies		2,354		1,855
	$	7,670	$	6,260

The amount of inventory recognized as an expense for the three months ended March 31, 2023 totalled $7,794 (March 31, 2022 – $6,598). See Note 16 for further details.

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LONG-TERM INVESTMENTS

3 Months Ended

Mar. 31, 2023

Long Term Investments

7. LONG-TERM INVESTMENTS

The Company classifies its long-term investments as designated at fair value through profit and loss under IFRS 9. Long-term investments are summarized as follows:

For the three months ended March 31, 2023:

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value March 31,
	2023		Net Additions		exchange			for the period			2023
Talisker Resources Common Shares	$	1,640	$	-	$	2		$	(293	)	$	1,349
Silver Wolf Exploration Ltd. Common Shares		51		41		(3	)		(10	)		79
Endurance Gold Corp		55		-		(1	)		(16	)		38
	$	1,746	$	41	$	(2	)	$	(319	)	$	1,466

Silver Wolf Exploration Ltd

During the three months ended March 31, 2023, the Company received 500,000 common shares as part of the terms in the Option Agreement with Silver Wolf Exploration Ltd.. Upon acquisition, the fair value of these common shares and share purchase warrants were recorded as “Option Income” as a credit to exploration and evaluation assets (see Note 8). Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments.

For the year ended December 31, 2022:

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value December 31,
	2022		Net Additions		Exchange			for the period			2022
Talisker Resources Common Shares	$	3,880	$	-	$	(134	)	$	(2,106	)	$	1,640
Silver Wolf Exploration Ltd. Common Shares		59		30		(35	)		(3	)		51
Endurance Gold Corp		-		53		(4	)		6			55
	$	3,939	$	83	$	(173	)	$	(2,103	)	$	1,746

During the year ended December 31, 2022, the Company received 250,000 common shares as part of the terms in the Option Agreement with Silver Wolf Exploration Ltd. Upon acquisition, the fair value of these common shares and share purchase warrants were recorded as “Option Income” as a credit to exploration and evaluation assets (see Note 8). Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments.

Endurance Gold Corp.

During the year ended December 31, 2022, the Company received 200,000 common shares as part of the terms of the Option Agreement with Endurance Gold Corp. Upon acquisition, the fair value of these common shares were recorded as “Other Income” on the statement of profit and loss. Any subsequent revaluation under IFRS 9 at fair value through profit and loss will be recorded as a gain or loss on long-term investments. See Note 8 for full details of the Option Agreement.

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EXPLORATION AND EVALUATION ASSETS

3 Months Ended

Mar. 31, 2023

Exploration And Evaluation Assets

8. EXPLORATION AND EVALUATION ASSETS

The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:

	Avino,  Mexico			La Preciosa, Mexico			British Columbia & Yukon, Canada		Total
Balance, January 1, 2022	$	11,052		$	-		$	1	$	11,053
Costs incurred during 2022:
Acquisition costs – Note 4		-			37,618			-		37,618
Drilling and exploration		719			296			-		1,015
Assessments and taxes		94			61			-		155
Effect of movements in exchange rates		(30	)		-			-		(30	)
Option income – Note 9(a)(ii)		(7	)		-			-		(7	)
Balance, December 31, 2022	$	11,828		$	37,975		$	1	$	49,804
Costs incurred during 2023:
Drilling and exploration		168			183			-		351
Assessments and taxes		56			23			-		79
Effect of movements in exchange rates		10			(109	)		-		(99	)
Option income – Note 9(a)(ii)		(41	)		-			-		(41	)
Balance, March 31, 2023	$	12,021		$	38,072		$	1	$	50,094

(a) Avino, Mexico

Option Agreement – Silver Wolf Exploration Ltd. (formerly Gray Rock Resources Ltd.) (“Silver Wolf”)

On March 11, 2021, the Company was informed that Silver Wolf received TSX Venture Exchange approval on the previously-announced entrance into an option agreement to grant Silver Wolf the exclusive right to acquire a 100% interest in the Ana Maria and El Laberinto properties in Mexico (the “Option Agreement”). In exchange, Avino received Silver Wolf share purchase warrants to acquire 300,000 common shares of Silver Wolf at an exercise price of C$0.20 per share for a period of 36 months from the date of the TSX Venture Exchange’s final acceptance of the Option Agreement (the “Approval Date”). In order to exercise the option, Silver Wolf will:

1. Issue to Avino a total of C$600 in cash or common shares of Silver Wolf as follows:

a.	C$50 in common shares of Silver Wolf within 30 days of March 8, 2021 (received on March 26, 2021 – see Note 7 for details);
b.	A further C$50 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2022 (received on March 30, 2022 – See Note 7 for details);
c.	A further C$100 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2023 (received on March 13, 2023 – See Note 7 for details);
d.	A further C$200 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2024; and
e.	A further C$200 in cash or shares of Silver Wolf at Avino’s discretion on or before March 8, 2025; and

2. Incur a total of C$750 in exploration expenditures on the properties, as follows:

a.	C$50 on or before March 8, 2022;
b.	A further C$100 on or before March 8, 2023; and
c.	A further C$600 on or before March 8, 2025.

All exploration expenditure requirements on the properties have been met as of March 31, 2023

Under the Option Agreement, all share issuances will be based on the average volume weighted trading price of Silver Wolf’s shares on the TSX Venture Exchange for the ten (10) trading days immediately preceding the date of issuance of the shares, and the shares will be subject to resale restrictions under applicable securities legislation for 4 months and a day from their date of issue.

The Option Agreement between the Company and Silver Wolf is considered a related party transaction as the two companies have directors in common.

Unification La Platosa properties

The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property near the towns of Panuco de Coronado and San Jose de Avino and surrounding the Avino Mine.

In February 2012, the Company’s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (“Minerales”) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the “ET zone”. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on July 1, 2015.

Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of C$250 during the year ended December 31, 2012.

The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes.

Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property.

(b) La Preciosa, Mexico

On March 21, 2022, the Company received approval for the closing of the acquisition of the La Preciosa property from Coeur Mining Inc. (“Coeur”). See Note 4 for further details

(c) British Columbia & Yukon, Canada

Eagle Property - Yukon

The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property.

During the three months ended March 31, 2023, the Company sold to a subsidiary of Hecla Mining Company (“Hecla”) the Eagle Property for cash consideration of C$250. The claims were transferred on March 28, 2023, and subsequent to March 31, 2023, cash proceeds were received.

Minto and Olympic-Kelvin properties – British Columbia

On May 2, 2022, the Company has granted Endurance Gold Corporation the right to acquire an option to earn 100% ownership of the former Minto Gold Mine, Olympic and Kelvin gold prospects contained within a parcel of crown grant and mineral claims (the “Olympic Claims”).

Under the terms of the letter agreement, Endurance can earn a 100% interest in the Olympic Claims if they pay Avino a total cash consideration in the aggregate amount of C$100, issue up to a total of 1,500,000 common shares (“Shares”) of Endurance and incur exploration expenditures in the aggregate amount of C$300; all of which is to be incurred by December 31, 2024. In the event that Endurance earns the 100% interest, the Olympic Claims will be subject to a 2% net smelter return royalty (“NSR”), of which 1% NSR can be purchased by the Endurance for C$750 and the remaining balance of the NSR can be purchased for C$1,000.

As part of the final requirement to earn its interest, Endurance agreed to grant to Avino 750,000 share purchase warrants (“Warrants”) by December 31, 2024, that offer Avino the option to purchase additional shares in the Company for a period of three years from the date of issuance. The exercise price of the Warrants will be set at a 25% premium to the 20-day VWAP share price at the issuance date. During the Option, if Endurance is successful in defining a compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic Claims then Endurance will be obliged to pay Avino a C$1,000 discovery bonus.

The Option agreement is subject to the TSX Venture Exchange acceptance, and any Shares or Warrants to be issued will be subject to a four-month hold period on issuance as per the policies of the TSX Venture Exchange.

During the year ended December 31, 2022, Endurance granted 200,000 common shares and paid C$25 as per the terms of the agreement, which required payment upon signing of a letter agreement between the two parties.

As of March 31, 2023, Endurance was in compliance with all terms of the Option agreement.

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NON-CONTROLLING INTEREST

3 Months Ended

Mar. 31, 2023

Non-controlling Interest

9. NON-CONTROLLING INTEREST

At March 31, 2023, the Company had an effective 99.67% (December 31, 2022 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2022 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income attributable to the non-controlling interest are insignificant and accordingly have not been recognized in the unaudited condensed consolidated interim financial statements. 

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PLANT EQUIPMENT AND MINING PROPERTIES

3 Months Ended

Mar. 31, 2023

Plant, Equipment And Mining Properties

10. PLANT, EQUIPMENT AND MINING PROPERTIES

	Mining properties		Office equipment, furniture, and fixtures			Computer equipment			Mine machinery and transportation equipment			Mill machinery and processing equipment			Buildings and construction in process		Total
	$		$			$			$			$			$		$
COST
Balance at January 1, 2022		13,038		595			335			14,240			18,613			11,778		58,599
Additions / Transfers		1,649		185			441			2,383			4,781			2,907		12,346
Writedowns Effect of movements in										(1,692	)		(100	)		-		(1,792	)
Effect of movements in exchange rates		-		(17	)		(2	)		(1	)		-			8		(12	)
Balance at December 31, 2022		14,687		763			774			14,930			23,294			14,693		69,141
Additions / Transfers		698		46			12			1,998			2,429			62		5,245
Effect of movements in exchange rates		-		-			-			-			-			4		4
Balance at March 31, 2023		15,385		809			786			16,928			25,723			14,759		74,390
ACCUMULATED DEPLETION AND DEPRECIATION
Balance at January 1, 2022		8,856		294			267			4,944			6,667			1,896		22,924
Additions / Transfers		250		147			331			1,616			146			1,133		3,623
Effect of movements in exchange rates		-		-			-			(1,382	)		(80	)		-		(1,462	)
Balance at December 31, 2022		9,106		441			598			5,178			6,733			3,029		25,085
Additions / Transfers		85		29			14			24			475			70		697
Effect of movements in exchange rates		-		-			-			-			-			-		-
Balance at March 31, 2023		9,191		470			612			5,202			7,208			3,099		25,782
NET BOOK VALUE
At March 31, 2023		6,194		339			174			11,726			18,515			11,660		48,608
At December 31, 2022		5,581		322			176			9,752			16,561			11,664		44,056
At January 1, 2022		4,182		301			68			9,296			11,946			9,882		35,675

Included in Buildings above are assets under construction of $3,966 as at March 31, 2023 (December 31, 2022 - $3,817) on which no depreciation was charged in the periods then ended. Once the assets are available for use, they will be transferred to the appropriate class of plant, equipment and mining properties.

As at March 31, 2023, plant, equipment and mining properties included a net carrying amount of $4,507 (December 31, 2022 - $2,417) for mining equipment and right of use assets under finance lease and equipment loan.

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RELATED PARTY TRANSACTIONS AND BALANCES

3 Months Ended

Mar. 31, 2023

Related Party Transactions And Balances

11. RELATED PARTY TRANSACTIONS AND BALANCES

All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party. 

(a) Key management personnel

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the three months ended March 31, 2023 and 2022 is as follows:

	Three months ended March 31,
	2023		2022
Salaries, benefits, and consulting fees	$	284	$	439
Share‐based payments		321		157
	$	605	$	596

(b) Amounts due to/from related parties

In the normal course of operations the Company transacts with companies related to Avino’s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. The following table summarizes the amounts were due to related parties:

	March 31, 2023			December 31, 2022
Oniva International Services Corp.	$	100		$	100
Silver Wolf Exploration Ltd.		(77	)		(72	)
Directors Fees		44			-
	$	67		$	28

For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (“ICC”), a company controlled by David Wolfin, the Company’s president and CEO and also a director, for consulting services. For the three months ended March 31, 2023, the Company paid $71 (March 31, 2022 - $126) to ICC.

(c) Other related party transactions

The Company has a cost sharing agreement with Oniva International Services Corp. (“Oniva”) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company’s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. David Wolfin, President & CEO, and a director of the Company, is the sole owner of Oniva. The cost sharing agreement may be terminated with one-month notice by either party without penalty.

The transactions with Oniva during the three months ended March 31, 2023 and 2022 are summarized below:

	March 31, 2023		March 31, 2022
Salaries and benefits	$	245	$	220
Office and miscellaneous		133		97
	$	378	$	317

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NOTES PAYBLE

3 Months Ended

Mar. 31, 2023

Notes Payble

12. NOTE PAYABLE

On March 21, 2022, the Company closed the acquisition of the La Preciosa property from Coeur Mining Inc. (see Note 4 for further details). As part of the agreement, the Company issued a promissory note payable of $5 million due on or before March 21, 2023. The present value of $4,665 of the note payable was calculated using a discount interest rate of 6.71%.

Prior to March 21, 2023, the Company repaid the promissory note payable in full.

The continuity of the note payable is as follows:

	March 31,			December 31,
	2023			2022
Balance at beginning of the period	$	4,926		$	-
Additions		-			4,665
Repayments		(5,000	)		-
Unwinding of fair value adjustment		74			261
Balance at end of the period		-			4,926
Less: Current portion		-			(4,926	)
Non-current portion	$	-		$	-

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WARRANT LIABILITY

3 Months Ended

Mar. 31, 2023

Warrant Liability

13. WARRANT LIABILITY

The Company’s warrant liability arises as a result of the issuance of warrants exercisable in US dollars. As the denomination is different from the Canadian dollar functional currency of the entity issuing the underlying shares, the Company recognizes a derivative liability for these warrants and re-measures the liability at the end of each reporting period using the Black-Scholes model. Changes in respect of the Company’s warrant liability are as follows:

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	475	$	741
Warrants issued		-		2,240
Fair value adjustment		293		(2,935	)
Effect of movement in exchange rates		3		(111	)
Balance at end of the period	$	771	$	475

Continuity of warrants during the periods is as follows:

	Underlying Shares		Weighted Average Exercise Price
Warrants outstanding and exercisable, January 1, 2022		1,950,412	$	0.80
Granted		7,000,000	$	1.09
Warrants outstanding and exercisable, December 31, 2022, and March 31, 2023		8,950,412	$	1.03

			All Warrants Outstanding and Exercisable
Expiry Date	Exercise Price per Share		March 31, 2023		December 31, 2022
September 21, 2023	$	1.09		7,000,000		7,000,000
September 25, 2023	$	0.80		1,950,412		1,950,412
				8,950,412		8,950,412

As at March 31, 2023, the weighted average remaining contractual life of warrants outstanding was 0.48 years (December 31, 2022 – 0.73 years).

Valuation of the warrant liability requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing warrants is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the warrant liability was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.78	%		4.07	%
Expected dividend yield		0	%		0	%
Expected warrant life (years)		0.48			0.73
Expected stock price volatility		49.96	%		56.80	%
Weighted average fair value	$	0.09		$	0.05

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RECLAMATION PROVISION

3 Months Ended

Mar. 31, 2023

RECLAMATION PROVISION

Reclamation Provision

14. RECLAMATION PROVISION

Management’s estimate of the reclamation provision at March 31, 2023, is $505 (December 31, 2022 – $445), and the undiscounted value of the obligation is $1,598 (December 31, 2022 – $1,454).

The present value of the obligation was calculated using a risk-free interest rate of 9.09% (December 31, 2022 – 9.65%) and an annual inflation rate of 6.04% (December 31, 2022 – 7.82%). Reclamation activities are estimated to begin in 2025 for the San Gonzalo Mine and in 2041 for the Avino Mine.

A reconciliation of the changes in the Company’s reclamation provision is as follows:

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	445	$	726
Changes in estimates		-		(364	)
Unwinding of discount related to continuing operations		11		44
Effect of movements in exchange rates		49		39
Balance at end of the period	$	505	$	445

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SHARE CAPITAL AND SHARE-BASED PAYMENTS

3 Months Ended

Mar. 31, 2023

SHARE CAPITAL AND SHARE-BASED PAYMENTS

Share Capital And Share-based Payments

15. SHARE CAPITAL AND SHARE-BASED PAYMENTS

(a)	Authorized: Unlimited common shares without par value.
(b)	Issued:

(i)	During the three months ended March 31, 2023, the Company issued 253,700 common shares in an at-the-market offering under prospectus supplement for gross proceeds of $207. The Company paid a 2.75% cash commission of $5 on gross proceeds, for net proceeds of $202.
During the three months ended March 31, 2023, the Company issued 592,667 common shares upon exercise of RSUs. As a result, $512 was recorded to share capital.
(ii)	During the year ended December 31, 2022, the Company issued 14,000,000 common shares as part of the acquisition of La Preciosa from Coeur Mining Inc.. As a result, $13,650 was recorded to share capital, and exploration and evaluation assets as acquisition costs, representing the closing price on the Toronto Stock Exchange on March 21, 2022, the date of the issuance and closing.

The Company further issued 1,075,000 common shares as payment for services provided during the acquisition, and as a result $980 was recorded to share capital and exploration and evaluation assets as acquisition costs.

During the year ended December 31, 2022, the Company issued 48,000 common shares following the exercise of 48,000 options. As a result, $46 was recorded to share capital, representing cash proceeds of $31 and the fair value upon issuance of $15.

During the year ended December 31, 2022, the Company issued 982,879 common shares upon exercise of RSUs. As a result, $899 was recorded to share capital.

(c) Stock options:

The Company has a stock option plan to purchase the Company’s common shares, under which it may grant stock options of up to 10% of the Company’s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees, and to persons providing investor relations or consulting services, the limits being based on the Company’s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed ten years from the grant date.

Continuity of stock options is as follows:

	Underlying Shares			Weighted Average Exercise Price (C$)
Stock options outstanding, January 1, 2022		2,839,000		$	1.68
Granted		2,390,000		$	1.20
Exercised		(48,000	)	$	0.79
Expired		(880,000	)	$	1.98
Cancelled / Forfeited		(45,000	)	$	1.40
Stock options outstanding, December 31, 2022		4,256,000		$	1.36
Granted		2,395,000		$	1.12
Stock options outstanding, March 31, 2023		6,651,000		$	1.27
Stock options exercisable, March 31, 2023		4,249,750		$	1.36

The following table summarizes information about the stock options outstanding and exercisable at March 31, 2023:

			Outstanding				Exercisable
Expiry Date	Price (C$)		Number of Options		Weighted Average Remaining Contractual Life (Years)		Number of Options		Weighted Average Remaining Contractual Life (Years)
August 28, 2023	$	1.30		105,000		0.41		105,000		1.41
August 21, 2024	$	0.79		126,000		1.39		126,000		2.39
August 4, 2025	$	1.64		1,660,000		2.35		1,660,000		3.35
March 25, 2027	$	1.20		2,340,000		3.99		2,340,000		3.99
May 4, 2027	$	0.92		25,000		4.10		18,750		4.10
March 29, 2028	$	1.12		2,395,000		5.00		-		4.99
				6,651,000		3.84		4,249,750		3.18

Valuation of stock options requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the stock options was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values:

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.05	%		2.49	%
Expected dividend yield		0	%		0.0	%
Expected option life (years)		5.00			5.00
Expected stock price volatility		61.05	%		59.98	%
Expected forfeiture rate		17	%		20	%
Weighted average fair value	$	0.61		$	0.63

During the three months ended March 31, 2023, the Company charged $62 (three months ended March 31, 2022 - $32) to operations as share-based payments for the fair value of stock options granted.

(d) Restricted Share Units:

On April 19, 2018, the Company’s Restricted Share Unit (“RSU”) Plan was approved by its shareholders. The RSU Plan is administered by the Compensation Committee under the supervision of the Board of Directors as compensation to officers, directors, consultants, and employees. The Compensation Committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period.

Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attached to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares.

Continuity of RSUs is as follows:

	Underlying Shares			Weighted Average Price (C$)
RSUs outstanding, January 1, 2022		1,439,477		$	1.32
Granted		1,799,000			1.19
Exercised		(982,879	)	$	1.18
Cancelled / Forfeited		(64,932	)	$	1.40
RSUs outstanding, December 31, 2022		2,190,666		$	1.27
Granted		1,809,000		$	1.12
Exercised		(592,667	)	$	1.19
RSUs outstanding, March 31, 2023		3,406,999		$	1.21

The following table summarizes information about the RSUs outstanding at March 31, 2023:

Issuance Date	Price (C$)		Number of RSUs Outstanding
August 4, 2020	$	1.64		412,666
March 25, 2022	$	1.19		1,185,333
March 29, 2023	$	1.12		1,809,000
				3,238,477

During the three months ended March 31, 2023, 1,809,000 RSUs (year ended December 31, 2022, 1,799,000) were granted. The weighted average fair value at the measurement date was C$1.12 (December 31, 2022 – C$1.19), based on the TSX market price of the Company’s shares on the date the RSUs were granted.

During the three months ended March 31, 2023, the Company charged $277 (March 31, 2022 - $168) to operations as share-based payments for the fair value of the RSUs vested. The fair value of the RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.

(e) Earnings (loss) per share:

The calculations for basic earnings (loss) per share and diluted earnings (loss) per share are as follows:

	Three months ended March 31,
	2023			2022
Net income (loss) for the period	$	(352	)	$	646
Basic weighted average number of shares outstanding		118,572,700			103,819,481
Effect of dilutive share options, warrants, and RSUs		4,030,229			3,415,476
Diluted weighted average number of shares outstanding		122,602,929			107,234,957
Basic loss per share	$	(0.00	)	$	0.01
Diluted loss per share	$	(0.00	)	$	0.01

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REVENUE AND COST OF SALES

3 Months Ended

Mar. 31, 2023

REVENUE AND COST OF SALES

Revenue And Cost Of Sales

16. REVENUE AND COST OF SALES

The Company’s revenues for the three months ended March 31, 2023 and 2022, are all attributable to Mexico, from shipments of concentrate from the Avino Mine.

	March 31, 2023			March 31, 2022
Concentrate sales	$	9,992		$	9,789
Provisional pricing adjustments		(167	)		1,261
	$	9,825		$	11,050

Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products.

Cost of sales is based on the weighted average cost of inventory sold for the periods and consists of the following:

	March 31, 2023		March 31, 2022
Production costs	$	7,304	$	5,847
Depreciation and depletion		670		459
	$	7,974	$	6,306

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GENERAL AND ADMINISTRATIVE EXPENSES

3 Months Ended

Mar. 31, 2023

General And Administrative Expenses

17. GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses on the condensed consolidated interim statements of operations consist of the following:

	March 31, 2023		March 31, 2022
Salaries and benefits	$	395	$	438
Professional fees		239		208
Office and miscellaneous		192		174
Management and consulting fees		106		116
Investor relations		81		52
Travel and promotion		54		10
Directors fees		44		41
Regulatory and compliance fees		38		47
Depreciation		35		30
	$	1,184	$	1,116

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COMMITMENTS

3 Months Ended

Mar. 31, 2023

Commitments

18. COMMITMENTS

The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva’s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 11.

The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements are as follows:

	March 31, 2023		December 31, 2022
Not later than one year	$	103	$	105
Later than one year and not later than five years		347		347
Later than five years		375		398
	$	825	$	850

Office lease payments recognized as an expense during the three months ended March 31, 2023, totalled $4 (March 31, 2022 - $16).

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SUPPLEMENT CASH FLOW INFORMATION

3 Months Ended

Mar. 31, 2023

Supplementary Cash Flow Information

19. SUPPLEMENTARY CASH FLOW INFORMATION

	March 31, 2023			March 31, 2022
Net change in non-cash working capital items:
Inventory	$	(1,419	)	$	339
Prepaid expenses and other assets		(18	)		(327	)
Taxes recoverable		(625	)		210
Taxes payable		(867	)		(28	)
Accounts payable and accrued liabilities		1,466			(1,013	)
Amounts receivable		843			(1,394	)
Amounts due to related parties		39			(15	)
	$	(582	)	$	(202	)

	March 31, 2023		March 31, 2022
Other non-cash supplementary information:
Interest paid	$	42	$	20
Taxes paid		5		-
	$	47	$	20
	March 31, 2023		March 31, 2022
Non-cash investing and financing activities:
Acquisition of La Preciosa, net of cash & transaction costs	$	-	$	21,535
Shares acquired under terms of option agreements		41		31
Transfer of share-based payments reserve upon exercise of RSUs		512		-
Transfer of share-based payments reserve upon option exercise		-		15
Equipment acquired under finance leases and equipment loans		1,808		1,101
	$	2,361	$	22,682

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FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2023

Financial Instruments

20. FINANCIAL INSTRUMENTS

The fair values of the Company’s amounts due to related parties and accounts payable approximate their carrying values because of the short-term nature of these instruments. Cash, amounts receivable, long-term investments, and warrant liability are recorded at fair value. The carrying amounts of the Company’s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.

(a) Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash, long-term investments and amounts receivable. The Company manages credit risk, in respect of cash and short-term investments, by maintaining the majority of cash and short-term investments at highly rated financial institutions.

The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two (December 31, 2022 – two) counterparty (see Note 21). However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.

The Company’s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the unaudited condensed consolidated interim statement of financial position. At March 31, 2023 and December 31, 2022, no amounts were held as collateral.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at March 31, 2023, in the amount of $2,697 and working capital of $5,109 in order to meet short-term business requirements. Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of note payable and finance lease obligations are due within 12 months of the condensed consolidated interim statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.

The maturity profiles of the Company’s contractual obligations and commitments as at March 31, 2023, are summarized as follows:

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,922	$	10,922	$	-	$	-
Amounts due to related parties		67		67		-		-
Minimum rental and lease payments		849		105		346		398
Equipment Loans		481		165		316		-
Finance lease obligations		2,925		1,523		1,402		-
Total	$	15,244	$	12,782	$	2,064	$	398

(c) Market Risk

Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.

Interest Rate Risk

Interest rate risk consists of two components:

(i)	To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.
(ii)	To the extent that changes in prevailing market rates differ from the interest rates on the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

In management’s opinion, the Company is exposed to interest rate risk primarily on its outstanding term facility, as the interest rate is subject to floating rates of interest. A 10% change in the interest rate would not a result in a material impact on the Company’s operations.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and Canadian dollars:

	March 31, 2023						December 31, 2022
	MXN			CDN			MXN			CDN
Cash	$	5,063		$	219		$	4,097		$	250
Due from related parties		1,402			-			1,402			-
Long-term investments		-			1,984			-			2,365
Reclamation bonds		-			6			-			4
Amounts receivable		1,549			302			-			34
Accounts payable and accrued liabilities		(76,052	)		(54	)		(85,486	)		(108	)
Due to related parties		-			(195	)		-			(135	)
Finance lease obligations		(880	)		(331	)		(161	)		(343	)
Net exposure		(68,918	)		1,931			(80,148	)		2,067
US dollar equivalent	$	(3,811	)	$	1,426		$	(4,136	)	$	1,526

Based on the net US dollar denominated asset and liability exposures as at March 31, 2023, a 10% fluctuation in the US/Mexican and Canadian/US exchange rates would impact the Company’s earnings for the three months ended March 31, 2023, by approximately $251 (year ended December 31, 2022 - $275). The Company has not entered into any foreign currency contracts to mitigate this risk.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.

The Company is exposed to price risk with respect to its amounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company’s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At March 31, 2023, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $17 (December 31, 2022 - $65).

The Company is exposed to price risk with respect to its long-term investments, as these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At March 31, 2023, a 10% change in market prices would have an impact on net earnings (loss) of approximately $143 (December 31, 2022 - $175).

The Company’s profitability and ability to raise capital to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.

(d) Classification of Financial Instruments

IFRS 7 Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at March 31, 2023:

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,697	$	-	$	-
Amounts receivable		-		2,015		-
Long-term investments		1,466		-		-
Total financial assets	$	4,163	$	2,015	$	-
Financial liabilities
Warrant liability		-		-		(771	)
Total financial liabilities	$	-	$	-	$	(771	)

The Company uses Black-Scholes model to measure its Level 3 financial instruments. As at March 31, 2023, the Company’s Level 3 financial instruments consisted of the warrant liability.

For the Company’s warrant liability valuation and fair value adjustments during the three months ended March 31, 2023 and the year ended December 31, 2022, see Note 13.

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SEGMENTED INFORMATION

3 Months Ended

Mar. 31, 2023

Segmented Information

21. SEGMENTED INFORMATION

The Company reviews its segment reporting to ensure it reflects the operational structure of the Company and enables the Company's Chief Operating Decision Maker (the Company’s CEO) to review operating segment performance. We have determined that each producing mine represents an operating segment, of which there is one as of March 31, 2023.

The Company’s revenues for the three months ended March 31, 2023 of $9,825 (March 31, 2022 - $11,050) are all attributable to Mexico, from shipments of concentrate produced by the Avino Mine.

On the condensed consolidated interim statements of operations, the Company had revenue from the following product mixes:

	March 31, 2023			March 31, 2022
Silver	$	3,608		$	3,896
Gold		3,135			2,442
Copper		4,689			7,053
Penalties, treatment costs and refining charges		(1,607	)		(2,344	)
Total revenue from mining operations	$	9,825		$	11,050

For the three months ended March 31, 2023, the Company had two customers (March 31, 2022 – four customer) that accounted for total revenues as follows:

	March 31, 2023		March 31, 2022
Customer #1	$	9,225	$	8,985
Customer #2		600		-
Other customers		-		2,065
Total revenue from mining operations	$	9,825	$	11,050

Geographical information relating to the Company’s non-current assets (other than financial instruments) is as follows:

	March 31, 2023		December 31, 2022
Exploration and evaluation assets - Mexico	$	50,093	$	49,803
Exploration and evaluation assets - Canada		1		1
Total exploration and evaluation assets	$	50,094	$	49,804

	March 31, 2023		December 31, 2022
Plant, equipment, and mining properties - Mexico	$	48,368	$	43,812
Plant, equipment, and mining properties - Canada		240		244
Total plant, equipment, and mining properties	$	48,608	$	44,056

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BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2023

schedule of audited consolidated financial statements

Subsidiary	Ownership Interest	Jurisdiction	Nature of Operations
Oniva Silver and Gold Mines S.A. de C.V.	100%	Mexico	Mexican operations and administration
Nueva Vizcaya Mining, S.A. de C.V.	100%	Mexico	Mexican administration
Promotora Avino, S.A. de C.V. (“Promotora”)	79.09%	Mexico	Holding company
Compañía Minera Mexicana de Avino, S.A. de C.V. (“Avino Mexico”)	98.45% direct 1.22% indirect (Promotora) 99.67% effective	Mexico	Mining and exploration
La Luna Silver & Gold Mines Ltd.	100%	Canada	Holding company
La Preciosa Silver & Gold Mines Ltd.	100%	Canada	Holding company
Proyectos Mineros La Preciosa S.A. de C.V.	100%	Mexico	Mining and exploration
Cervantes LLP	100%	U.S.	Holding company

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ACQUISITION OF LA PRECIOSA (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of fair values of assets acquired and liabilities assumed

Cash paid	$	15,301
Note payable		4,665
Common shares		14,630
Share purchase warrants		2,240
Total purchase consideration		36,836
Transaction costs		270
Total acquisition cost	$	37,106
Cash	$	168
Other current assets		471
Plant and equipment		1,621
Exploration and evaluation assets		37,618
Accounts payable		(2,772	)
Net assets acquired	$	37,106

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TAXES RECEOVERABLE (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Income Taxes Recoverable And Canadian Sales Taxes

	March 31, 2023		December 31, 2022
VAT recoverable	$	1,826	$	1,385
GST recoverable		39		25
Income taxes recoverable		2,498		2,327
	$	4,363	$	3,737

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INVENTORY (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Inventory

	March 31, 2023		December 31, 2022
Process material stockpiles	$	2,662	$	2,788
Concentrate inventory		2,654		1,617
Materials and supplies		2,354		1,855
	$	7,670	$	6,260

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LONG-TERM INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Long-term Investments

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value March 31,
	2023		Net Additions		exchange			for the period			2023
Talisker Resources Common Shares	$	1,640	$	-	$	2		$	(293	)	$	1,349
Silver Wolf Exploration Ltd. Common Shares		51		41		(3	)		(10	)		79
Endurance Gold Corp		55		-		(1	)		(16	)		38
	$	1,746	$	41	$	(2	)	$	(319	)	$	1,466

	Fair Value January 1,				Movements in foreign			Fair value adjustments			Fair Value December 31,
	2022		Net Additions		Exchange			for the period			2022
Talisker Resources Common Shares	$	3,880	$	-	$	(134	)	$	(2,106	)	$	1,640
Silver Wolf Exploration Ltd. Common Shares		59		30		(35	)		(3	)		51
Endurance Gold Corp		-		53		(4	)		6			55
	$	3,939	$	83	$	(173	)	$	(2,103	)	$	1,746

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EXPLORATION AND EVALUATION ASSETS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Exploration And Evaluation Costs

	Avino,  Mexico			La Preciosa, Mexico			British Columbia & Yukon, Canada		Total
Balance, January 1, 2022	$	11,052		$	-		$	1	$	11,053
Costs incurred during 2022:
Acquisition costs – Note 4		-			37,618			-		37,618
Drilling and exploration		719			296			-		1,015
Assessments and taxes		94			61			-		155
Effect of movements in exchange rates		(30	)		-			-		(30	)
Option income – Note 9(a)(ii)		(7	)		-			-		(7	)
Balance, December 31, 2022	$	11,828		$	37,975		$	1	$	49,804
Costs incurred during 2023:
Drilling and exploration		168			183			-		351
Assessments and taxes		56			23			-		79
Effect of movements in exchange rates		10			(109	)		-		(99	)
Option income – Note 9(a)(ii)		(41	)		-			-		(41	)
Balance, March 31, 2023	$	12,021		$	38,072		$	1	$	50,094

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PLANT EQUIPMENT AND MINING PROPERTIES (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Plant, Equipment And Mining Properties

	Mining properties		Office equipment, furniture, and fixtures			Computer equipment			Mine machinery and transportation equipment			Mill machinery and processing equipment			Buildings and construction in process		Total
	$		$			$			$			$			$		$
COST
Balance at January 1, 2022		13,038		595			335			14,240			18,613			11,778		58,599
Additions / Transfers		1,649		185			441			2,383			4,781			2,907		12,346
Writedowns Effect of movements in										(1,692	)		(100	)		-		(1,792	)
Effect of movements in exchange rates		-		(17	)		(2	)		(1	)		-			8		(12	)
Balance at December 31, 2022		14,687		763			774			14,930			23,294			14,693		69,141
Additions / Transfers		698		46			12			1,998			2,429			62		5,245
Effect of movements in exchange rates		-		-			-			-			-			4		4
Balance at March 31, 2023		15,385		809			786			16,928			25,723			14,759		74,390
ACCUMULATED DEPLETION AND DEPRECIATION
Balance at January 1, 2022		8,856		294			267			4,944			6,667			1,896		22,924
Additions / Transfers		250		147			331			1,616			146			1,133		3,623
Effect of movements in exchange rates		-		-			-			(1,382	)		(80	)		-		(1,462	)
Balance at December 31, 2022		9,106		441			598			5,178			6,733			3,029		25,085
Additions / Transfers		85		29			14			24			475			70		697
Effect of movements in exchange rates		-		-			-			-			-			-		-
Balance at March 31, 2023		9,191		470			612			5,202			7,208			3,099		25,782
NET BOOK VALUE
At March 31, 2023		6,194		339			174			11,726			18,515			11,660		48,608
At December 31, 2022		5,581		322			176			9,752			16,561			11,664		44,056
At January 1, 2022		4,182		301			68			9,296			11,946			9,882		35,675

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RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Related Party Transactions With Oniva

	Three months ended March 31,
	2023		2022
Salaries, benefits, and consulting fees	$	284	$	439
Share‐based payments		321		157
	$	605	$	596

Schedule Of Related Party Transactions And Balances

	March 31, 2023			December 31, 2022
Oniva International Services Corp.	$	100		$	100
Silver Wolf Exploration Ltd.		(77	)		(72	)
Directors Fees		44			-
	$	67		$	28

Schedule Of Due To Related Parties

	March 31, 2023		March 31, 2022
Salaries and benefits	$	245	$	220
Office and miscellaneous		133		97
	$	378	$	317

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NOTE PAYABLE (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of note payable

	March 31,			December 31,
	2023			2022
Balance at beginning of the period	$	4,926		$	-
Additions		-			4,665
Repayments		(5,000	)		-
Unwinding of fair value adjustment		74			261
Balance at end of the period		-			4,926
Less: Current portion		-			(4,926	)
Non-current portion	$	-		$	-

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WARRANT LIABILITY (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Change In Warrant Liability

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	475	$	741
Warrants issued		-		2,240
Fair value adjustment		293		(2,935	)
Effect of movement in exchange rates		3		(111	)
Balance at end of the period	$	771	$	475

Schedule Of Warrants Outstanding And Exercisable

	Underlying Shares		Weighted Average Exercise Price
Warrants outstanding and exercisable, January 1, 2022		1,950,412	$	0.80
Granted		7,000,000	$	1.09
Warrants outstanding and exercisable, December 31, 2022, and March 31, 2023		8,950,412	$	1.03

			All Warrants Outstanding and Exercisable
Expiry Date	Exercise Price per Share		March 31, 2023		December 31, 2022
September 21, 2023	$	1.09		7,000,000		7,000,000
September 25, 2023	$	0.80		1,950,412		1,950,412
				8,950,412		8,950,412

Schedule Of Fair Value Of Warrant Liability

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.78	%		4.07	%
Expected dividend yield		0	%		0	%
Expected warrant life (years)		0.48			0.73
Expected stock price volatility		49.96	%		56.80	%
Weighted average fair value	$	0.09		$	0.05

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RECLAMATION PROVISION (Tables)

3 Months Ended

Mar. 31, 2023

RECLAMATION PROVISION

Reconciliation Of The Changes In The Company's Reclamation Provision

	March 31, 2023		December 31, 2022
Balance at beginning of the period	$	445	$	726
Changes in estimates		-		(364	)
Unwinding of discount related to continuing operations		11		44
Effect of movements in exchange rates		49		39
Balance at end of the period	$	505	$	445

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SHARE CAPITAL AND SHARE-BASED PAYMENTS (Tables)

3 Months Ended

Mar. 31, 2023

SHARE CAPITAL AND SHARE-BASED PAYMENTS

Schedule Of Stock Options

	Underlying Shares			Weighted Average Exercise Price (C$)
Stock options outstanding, January 1, 2022		2,839,000		$	1.68
Granted		2,390,000		$	1.20
Exercised		(48,000	)	$	0.79
Expired		(880,000	)	$	1.98
Cancelled / Forfeited		(45,000	)	$	1.40
Stock options outstanding, December 31, 2022		4,256,000		$	1.36
Granted		2,395,000		$	1.12
Stock options outstanding, March 31, 2023		6,651,000		$	1.27
Stock options exercisable, March 31, 2023		4,249,750		$	1.36

Schedule Of Stock Options Outsanding And Exercisable

			Outstanding				Exercisable
Expiry Date	Price (C$)		Number of Options		Weighted Average Remaining Contractual Life (Years)		Number of Options		Weighted Average Remaining Contractual Life (Years)
August 28, 2023	$	1.30		105,000		0.41		105,000		1.41
August 21, 2024	$	0.79		126,000		1.39		126,000		2.39
August 4, 2025	$	1.64		1,660,000		2.35		1,660,000		3.35
March 25, 2027	$	1.20		2,340,000		3.99		2,340,000		3.99
May 4, 2027	$	0.92		25,000		4.10		18,750		4.10
March 29, 2028	$	1.12		2,395,000		5.00		-		4.99
				6,651,000		3.84		4,249,750		3.18

Schedule of fair value of the stock options was calculated using the Black-Scholes model

	March 31, 2023			December 31, 2022
Weighted average assumptions:
Risk-free interest rate		3.05	%		2.49	%
Expected dividend yield		0	%		0.0	%
Expected option life (years)		5.00			5.00
Expected stock price volatility		61.05	%		59.98	%
Expected forfeiture rate		17	%		20	%
Weighted average fair value	$	0.61		$	0.63

Schedule Of Rsu Outstanding

	Underlying Shares			Weighted Average Price (C$)
RSUs outstanding, January 1, 2022		1,439,477		$	1.32
Granted		1,799,000			1.19
Exercised		(982,879	)	$	1.18
Cancelled / Forfeited		(64,932	)	$	1.40
RSUs outstanding, December 31, 2022		2,190,666		$	1.27
Granted		1,809,000		$	1.12
Exercised		(592,667	)	$	1.19
RSUs outstanding, March 31, 2023		3,406,999		$	1.21

Schedule of summarizes information about the RSUs

Issuance Date	Price (C$)		Number of RSUs Outstanding
August 4, 2020	$	1.64		412,666
March 25, 2022	$	1.19		1,185,333
March 29, 2023	$	1.12		1,809,000
				3,238,477

Schedule Of Basic Earnings Per Share And Diluted Earnings Per Share

	Three months ended March 31,
	2023			2022
Net income (loss) for the period	$	(352	)	$	646
Basic weighted average number of shares outstanding		118,572,700			103,819,481
Effect of dilutive share options, warrants, and RSUs		4,030,229			3,415,476
Diluted weighted average number of shares outstanding		122,602,929			107,234,957
Basic loss per share	$	(0.00	)	$	0.01
Diluted loss per share	$	(0.00	)	$	0.01

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REVENUE AND COST OF SALES (Tables)

3 Months Ended

Mar. 31, 2023

REVENUE AND COST OF SALES

Schedule Of Revenue

	March 31, 2023			March 31, 2022
Concentrate sales	$	9,992		$	9,789
Provisional pricing adjustments		(167	)		1,261
	$	9,825		$	11,050

Schedule Of Cost Of Sales

	March 31, 2023		March 31, 2022
Production costs	$	7,304	$	5,847
Depreciation and depletion		670		459
	$	7,974	$	6,306

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GENERAL AND ADMINISTRATIVE EXPENSES (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of General And Administrative Expenses

	March 31, 2023		March 31, 2022
Salaries and benefits	$	395	$	438
Professional fees		239		208
Office and miscellaneous		192		174
Management and consulting fees		106		116
Investor relations		81		52
Travel and promotion		54		10
Directors fees		44		41
Regulatory and compliance fees		38		47
Depreciation		35		30
	$	1,184	$	1,116

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COMMITMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Commitments

	March 31, 2023		December 31, 2022
Not later than one year	$	103	$	105
Later than one year and not later than five years		347		347
Later than five years		375		398
	$	825	$	850

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SUPPLEMENT CASH FLOW INFORMATION (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Supplement Cash Flow Information

	March 31, 2023			March 31, 2022
Net change in non-cash working capital items:
Inventory	$	(1,419	)	$	339
Prepaid expenses and other assets		(18	)		(327	)
Taxes recoverable		(625	)		210
Taxes payable		(867	)		(28	)
Accounts payable and accrued liabilities		1,466			(1,013	)
Amounts receivable		843			(1,394	)
Amounts due to related parties		39			(15	)
	$	(582	)	$	(202	)

	March 31, 2023		March 31, 2022
Other non-cash supplementary information:
Interest paid	$	42	$	20
Taxes paid		5		-
	$	47	$	20
	March 31, 2023		March 31, 2022
Non-cash investing and financing activities:
Acquisition of La Preciosa, net of cash & transaction costs	$	-	$	21,535
Shares acquired under terms of option agreements		41		31
Transfer of share-based payments reserve upon exercise of RSUs		512		-
Transfer of share-based payments reserve upon option exercise		-		15
Equipment acquired under finance leases and equipment loans		1,808		1,101
	$	2,361	$	22,682

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FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Contractual Obligations And Commitments

	Total		Less Than 1 Year		1-5 years		More Than 5 Years
Accounts payable and accrued liabilities	$	10,922	$	10,922	$	-	$	-
Amounts due to related parties		67		67		-		-
Minimum rental and lease payments		849		105		346		398
Equipment Loans		481		165		316		-
Finance lease obligations		2,925		1,523		1,402		-
Total	$	15,244	$	12,782	$	2,064	$	398

Schedule Of Foreign Currency Risk

	March 31, 2023						December 31, 2022
	MXN			CDN			MXN			CDN
Cash	$	5,063		$	219		$	4,097		$	250
Due from related parties		1,402			-			1,402			-
Long-term investments		-			1,984			-			2,365
Reclamation bonds		-			6			-			4
Amounts receivable		1,549			302			-			34
Accounts payable and accrued liabilities		(76,052	)		(54	)		(85,486	)		(108	)
Due to related parties		-			(195	)		-			(135	)
Finance lease obligations		(880	)		(331	)		(161	)		(343	)
Net exposure		(68,918	)		1,931			(80,148	)		2,067
US dollar equivalent	$	(3,811	)	$	1,426		$	(4,136	)	$	1,526

Schedule Of Fair Value On Recurring Basis

	Level 1		Level 2		Level 3
Financial assets
Cash	$	2,697	$	-	$	-
Amounts receivable		-		2,015		-
Long-term investments		1,466		-		-
Total financial assets	$	4,163	$	2,015	$	-
Financial liabilities
Warrant liability		-		-		(771	)
Total financial liabilities	$	-	$	-	$	(771	)

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SEGMENTED INFORMATION (Tables)

3 Months Ended

Mar. 31, 2023

Schedule Of Condensed Consolidated Interim Statements Of Operations

	March 31, 2023			March 31, 2022
Silver	$	3,608		$	3,896
Gold		3,135			2,442
Copper		4,689			7,053
Penalties, treatment costs and refining charges		(1,607	)		(2,344	)
Total revenue from mining operations	$	9,825		$	11,050

Schedule Of Revenues From Customers

	March 31, 2023		March 31, 2022
Customer #1	$	9,225	$	8,985
Customer #2		600		-
Other customers		-		2,065
Total revenue from mining operations	$	9,825	$	11,050

Schedule Of Geographical Information Of Company's Non-current Assets

	March 31, 2023		December 31, 2022
Exploration and evaluation assets - Mexico	$	50,093	$	49,803
Exploration and evaluation assets - Canada		1		1
Total exploration and evaluation assets	$	50,094	$	49,804

	March 31, 2023		December 31, 2022
Plant, equipment, and mining properties - Mexico	$	48,368	$	43,812
Plant, equipment, and mining properties - Canada		240		244
Total plant, equipment, and mining properties	$	48,608	$	44,056

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BASIS OF PRESENTATION (Details)	3 Months Ended
	Mar. 31, 2023
Oniva Silver And GoldMines SADeCV [Member]
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	Mexico
Nature of Operations	Mexican operations and administration
Nueva Vizcaya Mining, S.A. de C.V. (Member)
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	Mexico
Nature of Operations	Mexican administration
Promotora Avino, S.A. de C.V. (Member)
Statement [Line Items]
Ownership Interest	79.09%
Jurisdiction	Mexico
Nature of Operations	Holding company
La Luna Silver & Gold Mines Ltd. (Member)
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	Canada
Nature of Operations	Holding company
La Preciosa Silver & Gold Mines Ltd.(Member)
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	Canada
Nature of Operations	Holding company
Proyectos Mineros La Preciosa S.A. de C.V. (Member)
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	Mexico
Nature of Operations	Mining and exploration
Cervantes LLP (Member)
Statement [Line Items]
Ownership Interest	100.00%
Jurisdiction	U.S.
Nature of Operations	Holding company
Compania Minera Mexicana de Avino, S.A. de C.V. (Member)
Statement [Line Items]
Jurisdiction	Mexico
Nature of Operations	Mining and exploration
Ownership Interest	98.45

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ACQUISITION OF LA PRECIOSA (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement [Line Items]
Plant And Equipment	$ 48,608,000	$ 44,056,000	$ 35,675,000
Fair values of the Assets acquired and Liabilities
Statement [Line Items]
Cash Paid	15,301,000
Note Payable	4,665,000
Common Shares	14,630,000
Share Purchase Warrants	2,240,000
Total Purchase Consideration	36,836,000
Transaction Costs	270,000
Total Acquisition Cost	37,106,000
Cash	168,000
Other Current Assets	471,000
Plant And Equipment	1,621,000
Exploration And Evaluation Assets	37,618,000
Accounts payable	(2,772,000)
Net Assets Acquired	$ 37,106,000

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ACQUISITION OF LA PRECIOSA (Details Narrative)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Statement [Line Items]
Inflationary Adjustment Description	A payment of $0.25 per silver equivalent ounce (subject to inflationary adjustment) of new mineral reserves (as defined by NI 43-101) discovered and declared outside of the current mineral resource area at La Preciosa, subject to a cap of $50 million, and any such payments will be credited against any existing or future payments owing on the gross value royalty.
Avino
Statement [Line Items]
Common Stock Shares Issuance, Shares | shares	14,000,000
Common Shares Issuance, Value	$ 136,500
La Preciosa Silver & Gold Mines Ltd.(Member)
Statement [Line Items]
Royalty Returns	2.00%
Gloria and Abundancia
Statement [Line Items]
Royalty Returns	1.25%
Coeur
Statement [Line Items]
Cash Consideration	$ 15,300,000
Promissory Note	$ 5,000,000
Warrants Purchase | shares	7,000,000
Warrants Value	$ 22,400
Warrants Exercisable Price Per Shares | $ / shares	$ 1.09
Warrants Premium	25.00%
Additional Cash Payment	$ 8,750,000

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TAXES RECOVERABLE (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
VAT Recoverable	$ 1,826	$ 1,385
GST Recoverable	39	25
Income taxes recoverable	2,498	2,327
Total Taxes Recoverable	$ 4,363	$ 3,737

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INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Process Material Stockpiles	$ 2,662	$ 2,788
Concentrate Inventory	2,654	1,617
Materials And Supplies	2,354	1,855
Inventories	$ 7,670	$ 6,260

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INVENTORY (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cost Of Sales	$ 7,794	$ 6,598

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LONG TERM INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Fair Value Of Long Term Investments, Beginning Balance	$ 1,746	$ 3,939
Net Additions	41	83
Movements In Foreign Exchange	(2)	(173)
Fair Value Adjustments For The Period	(319)	(2,103)
Fair Value Of Long Term Investments, Ending Balance	1,466	1,746
Endurance Gold Corp. Common Shares
Statement [Line Items]
Fair Value Of Long Term Investments, Beginning Balance	55	0
Net Additions	0	53
Movements In Foreign Exchange	(1)	(4)
Fair Value Adjustments For The Period	(16)	6
Fair Value Of Long Term Investments, Ending Balance	38	55
Talisker Resources Ltd [Member] | Common Shares [Member]
Statement [Line Items]
Fair Value Of Long Term Investments, Beginning Balance	1,640	3,880
Net Additions	0	0
Movements In Foreign Exchange	2	(134)
Fair Value Adjustments For The Period	(293)	(2,106)
Fair Value Of Long Term Investments, Ending Balance	1,349	1,640
Silver Wolf Exploration Ltd. [Member] | Common Share [Member]
Statement [Line Items]
Fair Value Of Long Term Investments, Beginning Balance	51	59
Net Additions	41	30
Movements In Foreign Exchange	(3)	(35)
Fair Value Adjustments For The Period	(10)	(3)
Fair Value Of Long Term Investments, Ending Balance	$ 79	$ 51

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LONG TERM INVESTMENTS (Details Narrative) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Silver Wolf Exploration Ltd. [Member] | Common Share [Member]
Statement [Line Items]
Receipt of common stock as part of option agreement	500,000	250,000
Endurance Gold Corp. [Member]
Statement [Line Items]
Receipt of common stock as part of option agreement	200,000

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EXPLORATION AND EVALUATION ASSETS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Beginning Balance	$ 49,804,000	$ 11,053,000
Acquisition costs - Note 5		37,618,000
Drilling And Exploration	351,000	1,015,000
Assessments And Taxes	79,000	155,000
Effect Of Movements In Exchange Rates	(99,000)	(30,000)
Option income (Note 9)	(41,000)	(7,000)
Ending Balance	50,094,000	49,804,000
Avino, Mexico [Member]
Statement [Line Items]
Beginning Balance	11,828,000	11,052,000
Acquisition costs - Note 5	0	0
Drilling And Exploration	168,000	719,000
Assessments And Taxes	56,000	94,000
Effect Of Movements In Exchange Rates	10,000	(30,000)
Option income (Note 9)	(41,000)	(7,000)
Ending Balance	12,021,000	11,828,000
British Columbia & Yukon, Canada [Member]
Statement [Line Items]
Beginning Balance	1,000	1,000
Acquisition costs - Note 5	0
Drilling And Exploration	0	0
Assessments And Taxes	0	0
Effect Of Movements In Exchange Rates	0	0
Option income (Note 9)	0	0
Ending Balance	1,000	1,000
La Preciosa, Mexico [Member]
Statement [Line Items]
Beginning Balance	37,975,000	0
Acquisition costs - Note 5	0	37,618,000
Drilling And Exploration	183,000	296,000
Assessments And Taxes	23,000	61,000
Effect Of Movements In Exchange Rates	(109,000)	0
Option income (Note 9)	0	0
Ending Balance	$ 38,072,000	$ 37,975,000

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EXPLORATION AND EVALUATION ASSETS (Details Narrative)	3 Months Ended		12 Months Ended
	Mar. 31, 2023 CAD ($) $ / shares shares	Mar. 31, 2022 shares	Dec. 31, 2022 CAD ($) shares	Dec. 31, 2012 CAD ($) shares	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Statement [Line Items]
Letter Agreement Description	Endurance can earn a 100% interest in the Olympic Claims if they pay Avino a total cash consideration in the aggregate amount of C$100, issue up to a total of 1,500,000 common shares (“Shares”) of Endurance and incur exploration expenditures in the aggregate amount of C$300; all of which is to be incurred by December 31, 2024. In the event that Endurance earns the 100% interest, the Olympic Claims will be subject to a 2% net smelter return royalty (“NSR”), of which 1% NSR can be purchased by the Endurance for C$750 and the remaining balance of the NSR can be purchased for C$1,000.
Granted Shares | shares			200,000
Payment			$ 25
Exploration Expenditures Properties					$ 50,094,000		$ 49,804,000	$ 11,053,000
Warrants Acquire Shares Purchase | shares	122,602,929	107,234,957
Durango, Mexico [Member] | Unification La Platosa properties [Member]
Statement [Line Items]
Description For Exploration Period	the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years
Exploration And Mining Rights Acquisition Consideration Transferred, Shares Issued | shares				135,189
Exploration And Mining Rights Acquisition Consideration Transferred Shares Issued, Value				$ 250,000
Durango, Mexico [Member] | Unification La Platosa properties [Member] | Minerales [Member]
Statement [Line Items]
Description Of Royalty Terms	The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (“NSR”). In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on the processing at a monthly rate of 15,000 tonnes
Description For Exclusive Right Acquisition Under Agreement	Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of $8 million within 15 days of the Company’s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property
Eagle property option agreement [Member] | Mayo Mining Division [Member] | Yukon, Canada [Member]
Statement [Line Items]
Ownership Percentage	100.00%
Terms Of Agreement	The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property
Cash consideration	$ 250
Silver Wolf Exploration Ltd. [Member]
Statement [Line Items]
Common Stock Shares Issued Value	50,000
Exploration Expenditures Properties						$ 750
Silver Wolf Exploration Ltd. [Member] | First Anniversary [Member]
Statement [Line Items]
Common Stock Shares Issued Value	50,000
Exploration Expenditures Properties						50,000
Silver Wolf Exploration Ltd. [Member] | Second Anniversary [Member]
Statement [Line Items]
Common Stock Shares Issued Value	100,000
Exploration Expenditures Properties						100,000
Silver Wolf Exploration Ltd. [Member] | Third Anniversary [Member]
Statement [Line Items]
Common Stock Shares Issued Value	200,000
Silver Wolf Exploration Ltd. [Member] | Fourth Anniversary [Member]
Statement [Line Items]
Common Stock Shares Issued Value	200,000
Exploration Expenditures Properties						$ 600,000
Silver Wolf Exploration Ltd. [Member] | Option Agreement [Member]
Statement [Line Items]
Common Stock Shares Issued Value	$ 600
Warrants Acquire Shares Purchase | shares	300,000
Exercise Price | $ / shares	$ 0.20
Ownership Percentage	100.00%
Avino, Mexico [Member]
Statement [Line Items]
Exploration Expenditures Properties					$ 12,021,000		$ 11,828,000	$ 11,052,000
Warrants Purchase | shares	750,000
Warrants Premium	25.00%
Option Description	Endurance is successful in defining a compliant mineral resource of at least 500,000 gold-equivalent ounces on the Olympic Claims then Endurance will be obliged to pay Avino a C$1,000 discovery bonus

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NONCONTROLLING INTEREST (Details Narrative)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Ownership Interest, Percentage	99.67%	99.67%
Non-controlling Interest	0.33%	0.33%

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PLANT EQUIPMENT AND MINING PROPERTIES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Beginning Balance	$ 69,141,000	$ 58,599,000
Additions/ Transfers	5,245,000	12,346,000
Writedowns Effect of movements in		(1,792,000)
Effect Of Movements In Exchange Rates	4,000	(12,000)
Ending Balance	74,390,000	69,141,000
Accumulated Depletion And Depreciation, Beginning Balance	25,085,000	22,924,000
Accumulated Depletion And Depreciation, Additions / Transfers	697,000	3,623,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	(1,462,000)
Accumulated Depletion And Depreciation, Ending Balance	25,782,000	25,085,000
Net book value, Beginning balance	44,056,000	35,675,000
Net book value, Ending	48,608,000	44,056,000
Office Equipment Furniture And Fixtures [Member]
Statement [Line Items]
Beginning Balance	763,000	595,000
Additions/ Transfers	46,000	185,000
Effect Of Movements In Exchange Rates	0	(17,000)
Ending Balance	809,000	763,000
Accumulated Depletion And Depreciation, Beginning Balance	441,000	294,000
Accumulated Depletion And Depreciation, Additions / Transfers	29,000	147,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	0
Accumulated Depletion And Depreciation, Ending Balance	470,000	441,000
Net book value, Beginning balance	322,000	301,000
Net book value, Ending	339,000	322,000
Mine Machinery And Transportation Equipment [Member]
Statement [Line Items]
Beginning Balance	14,930,000	14,240,000
Additions/ Transfers	1,998,000	2,383,000
Writedowns Effect of movements in		(1,692,000)
Effect Of Movements In Exchange Rates	0	(1,000)
Ending Balance	16,928,000	14,930,000
Accumulated Depletion And Depreciation, Beginning Balance	5,178,000	4,944,000
Accumulated Depletion And Depreciation, Additions / Transfers	24,000	1,616,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	(1,382,000)
Accumulated Depletion And Depreciation, Ending Balance	5,202,000	5,178,000
Net book value, Beginning balance	9,752,000	9,296,000
Net book value, Ending	11,726,000	9,752,000
Mill Machinery And Processing Equipment [Member]
Statement [Line Items]
Beginning Balance	23,294,000	18,613,000
Additions/ Transfers	2,429,000	4,781,000
Writedowns Effect of movements in		(100,000)
Effect Of Movements In Exchange Rates	0	0
Ending Balance	25,723,000	23,294,000
Accumulated Depletion And Depreciation, Beginning Balance	6,733,000	6,667,000
Accumulated Depletion And Depreciation, Additions / Transfers	475,000	146,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	(80,000)
Accumulated Depletion And Depreciation, Ending Balance	7,208,000	6,733,000
Net book value, Beginning balance	16,561,000	11,946,000
Net book value, Ending	18,515,000	16,561,000
Mining Property [Member]
Statement [Line Items]
Beginning Balance	14,687,000	13,038,000
Additions/ Transfers	698,000	1,649,000
Writedowns Effect of movements in	0	0
Effect Of Movements In Exchange Rates	0	0
Ending Balance	15,385,000	14,687,000
Accumulated Depletion And Depreciation, Beginning Balance	9,106,000	8,856,000
Accumulated Depletion And Depreciation, Additions / Transfers	85,000	250,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	0
Accumulated Depletion And Depreciation, Ending Balance	9,191,000	9,106,000
Net book value, Beginning balance	5,581,000	4,182,000
Net book value, Ending	6,194,000	5,581,000
Computer equipment [member]
Statement [Line Items]
Beginning Balance	774,000	335,000
Additions/ Transfers	12,000	441,000
Effect Of Movements In Exchange Rates	0	(2,000)
Ending Balance	786,000	774,000
Accumulated Depletion And Depreciation, Beginning Balance	598,000	267,000
Accumulated Depletion And Depreciation, Additions / Transfers	14,000	331,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	0
Accumulated Depletion And Depreciation, Ending Balance	612,000	598,000
Net book value, Beginning balance	176,000	68,000
Net book value, Ending	174,000	176,000
Buildings and construction in process [Member]
Statement [Line Items]
Beginning Balance	14,693,000	11,778,000
Additions/ Transfers	62,000	2,907,000
Writedowns Effect of movements in	0	0
Effect Of Movements In Exchange Rates	0	8,000
Ending Balance	14,759,000	14,693,000
Accumulated Depletion And Depreciation, Beginning Balance	3,029,000	1,896,000
Accumulated Depletion And Depreciation, Additions / Transfers	70,000	1,133,000
Accumulated Depletion And Depreciation, Effect Of Movements In Exchange Rates	0	0
Accumulated Depletion And Depreciation, Ending Balance	3,099,000	3,029,000
Net book value, Beginning balance	11,664,000	9,882,000
Net book value, Ending	$ 11,660,000	$ 11,664,000

XML

PLANT EQUIPMENT AND MINING PROPERTIES (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets Under Construction	$ 3,966	$ 3,817
Property Plant Equipment, Net Carrying Amount	$ 4,507	$ 2,417

XML

RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Salaries, Benefits, And Consulting Fees	$ 284	$ 439
Share-based Payments	321	157
Total Key Management Personnel Compensation	$ 605	$ 596

XML

RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Total amounts due to related parties	$ 67,000	$ 28,000
Oniva International Services Corp. [Member]
Statement [Line Items]
Due To Related Parties	100,000	100,000
Directors [Member]
Statement [Line Items]
Due To Related Parties	44,000	0
Silver Wolf Exploration Ltd. [Member]
Statement [Line Items]
Due To Related Parties	$ (77)	$ (72,000)

XML

RELATED PARTY TRANSACTIONS AND BALANCES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement [Line Items]
Salaries And Benefits	$ 284	$ 439
Office And Miscellaneous	192	174
Oniva International Services Corp. [Member]
Statement [Line Items]
Salaries And Benefits	245	220
Office And Miscellaneous	133	97
Total Cost	$ 378	$ 317

XML

RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement [Line Items]
Salaries, Benefits, And Consulting Fees	$ 284	$ 439
ICC [Member]
Statement [Line Items]
Salaries, Benefits, And Consulting Fees	$ 71	$ 126

XML

NOTE PAYABLE (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Note Payable At Beginning Of The Period	$ 4,926	$ 0
Additions	0	4,665
Repayments	(5,000)	0
Unwinding Of Fair Value Adjustment	74,000	261
Note Payable At Ending Of The Period	0	4,926,000
Less: Current portion	0	(4,926)
Non-current portion	$ 0	$ 0

XML

NOTE PAYABLE (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Present value of notes payable	$ 4,665
Discount Interest Rate	6.71%
Promissory Note Payable Issued	$ 5,000

XML

WARRANT LIABILITY (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Balance At Beginning Of The Year	$ 745,000
Balance At End Of The Year	1,306,000	$ 745,000
Warrants [Member]
Statement [Line Items]
Balance At Beginning Of The Year	475,000	741,000
Warrants Issued	0	2,240
Fair Value Adjustment	293,000	(2,935,000)
Effect Of Movement In Exchange Rates	3,000	(111,000)
Balance At End Of The Year	$ 771,000	$ 475,000

XML

WARRANT LIABILITY (Details 1) - Warrants [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Outstanding And Exercisable Underlying Shares, Beginning	1,950,412	1,950,412
Warrants Granted, Underlying Share	$ 7,000,000	$ 7,000,000
Outstanding And Exercisable Underlying Shares, Ending	8,950,412	8,950,412
Outstanding And Exercisable Weighted Average Exercise Price, Beginning	$ 0.80	$ 0.80
Warrants Excersied Weighte Average Granted	1.09	1.09
Outstanding And Exercisable Weighted Average Exercise Price, Ending	$ 1.03	$ 1.03

XML

WARRANT LIABILITY (Details 2) - $ / shares	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Warrants Outstanding And Exercisable	8,950,412	8,950,412
September 21, 2023 [Member]
Statement [Line Items]
Warrants Outstanding And Exercisable	7,000,000	7,000,000
Expiry Date	Sep. 21, 2023
Exercise Price	$ 1.09
September 25, 2023 [Member]
Statement [Line Items]
Warrants Outstanding And Exercisable	1,950,412	1,950,412
Expiry Date	Sep. 25, 2023
Exercise Price	$ 0.80

XML

WARRANT LIABILITY (Details 3) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Weighted Average Assumptions:
Risk-free Interest Rate	3.78%	4.07%
Expected Dividend Yield	0.00%	0.00%
Expected warrant life (years)	5 months 23 days	8 months 23 days
Expected Stock Price Volatility	49.96%	56.80%
Weighted Average Fair Value	$ 0.09	$ 0.05

XML

WARRANT LIABILITY (Details Narrative)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Weighted Average Remaining Contractual Life (years)	5 months 23 days	8 months 23 days

XML

RECLAMATION PROVISION (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2021
RECLAMATION PROVISION
Balance At Beginning Of The Year	$ 445	$ 726
Changes In Estimates	0	(364)
Unwinding Of Discount Related To Continuing Operations	11	44
Effect Of Movements In Exchange Rates	49	39
Balance At End Of The Year	$ 505	$ 445

XML

RECLAMATION PROVISION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Management's estimate one [Member]
Statement [Line Items]
Risk Free Interest Rate	9.09%	9.65%
Inflation Rate	6.04%	7.82%
Management's Estimate [Member]
Statement [Line Items]
Reclamation Provision	$ 505	$ 445
Reclamation Provision Undiscounted Value	$ 1,598	$ 1,454

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details) - Stock options [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Stock Options Outstanding, Beginning	4,256,000	2,839,000
Granted	2,390,000	2,395,000
Exercised	0	(48,000)
Expired	0	(880,000)
Cancelled / Forfeited	0	(45,000)
Stock Options Outstanding, Ending	6,651,000	4,256,000
Stock Options Exercisable	4,249,750
Outstanding And Exercisable Weighted Average Exercise Price, Beginning	$ 1.36	$ 1.68
Weighted Average Exercise Price, Granted	1.12	1.20
Weighted Average Exercise Price, Exercised		0.79
Weighted Average Exercise Price, Expired		1.98
Weighted Average Exercise Price, Cancelled / Forfeited		1.40
Outstanding And Exercisable Weighted Average Exercise Price, Ending	1.27	$ 1.36
Weighted Average Exercise Price, Stock Options Exercisable	$ 1.36

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 1)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Stock options [Member]
Statement [Line Items]
Stock Options Exercisable	4,249,750
Stock Options Outstanding	6,651,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	3 years 2 months 4 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	3 years 10 months 2 days
Stock options [Member] | August 21, 2024 [Member]
Statement [Line Items]
Expiry Date	Aug. 21, 2024
Stock Options Exercisable	126,000
Exercise Price | $ / shares	$ 0.79
Stock Options Outstanding	126,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	2 years 4 months 20 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	1 year 4 months 20 days
Stock options [Member] | August 4, 2025 [Member]
Statement [Line Items]
Expiry Date	Aug. 04, 2025
Stock Options Exercisable	1,660,000
Exercise Price | $ / shares	$ 1.64
Stock Options Outstanding	1,660,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	3 years 4 months 6 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	2 years 4 months 6 days
Stock options [Member] | March 25, 2027 [Member]
Statement [Line Items]
Expiry Date	Mar. 25, 2027
Stock Options Exercisable	2,340,000
Exercise Price | $ / shares	$ 1.20
Stock Options Outstanding	2,340,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	3 years 11 months 26 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	3 years 11 months 26 days
Stock options [Member] | March 29, 2028 [Member]
Statement [Line Items]
Expiry Date	Mar. 29, 2028
Stock Options Exercisable	0
Exercise Price | $ / shares	$ 1.12
Stock Options Outstanding	2,395,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	4 years 11 months 26 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	5 years
Stock options [Member] | August 28, 2023 [Member]
Statement [Line Items]
Expiry Date	Aug. 28, 2023
Stock Options Exercisable	105,000
Exercise Price | $ / shares	$ 1.30
Stock Options Outstanding	105,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	1 year 4 months 28 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	12 days
Stock Option [Member] | May 4, 2027 [Member]
Statement [Line Items]
Expiry Date	May 04, 2027
Stock Options Exercisable	18,750
Stock Options Outstanding	25,000
Weighted Average Remaining Contractual Life (years), Stock Options Exercisable	4 years 1 month 6 days
Weighted Average Remaining Contractual Life (years), Stock Options Outstanding	4 years 1 month 6 days
Exercise price | $ / shares	$ 0.92

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 2) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Expected option life (years)	5 months 23 days	8 months 23 days
Weighted Average Fair Value	$ 0.09	$ 0.05
Stock options [Member]
Statement [Line Items]
Risk-free Interest Rate	3.05%	2.49%
Expected Dividend Yield	0.00%	0.00%
Expected option life (years)	5 years	5 years
Expected Stock Price Volatility	61.05%	59.98%
Expected Forfeiture Rate	17.00%	20.00%
Weighted Average Fair Value	$ 0.61	$ 0.63

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Detail 3) - Restricted Share Units [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Stock Options Outstanding, Beginning	2,190,666	1,439,477
Granted	1,809,000	1,799,000
Exercised	(592,667)	(982,879)
Cancelled / Forfeited	0	(64,932)
Stock Options Outstanding, Ending	3,406,999	2,190,666
Outstanding And Exercisable Weighted Average Exercise Price, Beginning	$ 1.27	$ 1.32
Weighted Average Exercise Price, Granted	1.12	1.19
Weighted Average Exercise Price, Exercised	1.19	1.18
Weighted Average Exercise Price, Cancelled / Forfeited		1.40
Outstanding And Exercisable Weighted Average Exercise Price, Ending	$ 1.21	$ 1.27

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 4) - Restricted Share Units [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Statement [Line Items]
Stock Options Outstanding	3,238,477
August 4, 2020 [Member]
Statement [Line Items]
Exercise Price | $ / shares	$ 1.64
Stock Options Outstanding	412,666
Issuance Date	Aug. 04, 2020
March 25, 2022 [Member]
Statement [Line Items]
Exercise Price | $ / shares	$ 1.19
Stock Options Outstanding	1,185,333
Issuance Date	Mar. 25, 2022
March 29, 2028 [Member]
Statement [Line Items]
Exercise Price | $ / shares	$ 1.12
Stock Options Outstanding	1,809,000
Issuance Date	Mar. 29, 2023

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details 5) - Earning loss Per Share [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement [Line Items]
Net income (loss) for the period	$ (352)	$ 646
Basic weighted average number of shares outstanding	118,572,700	103,819,481
Effect of dilutive share options, warrants, and RSUs ('000)	4,030,229	3,415,476
Diluted weighted average number of shares outstanding	122,602,929	107,234,957
Basic loss per share	$ (0.00)	$ 0.01
Diluted loss per share	$ (0.00)	$ 0.01

XML

SHARE CAPITAL AND SHAREBASED PAYMENTS (Details Narrative)	3 Months Ended
	Mar. 31, 2023 USD ($) shares	Mar. 31, 2023 $ / shares shares	Mar. 31, 2022 USD ($) shares	Mar. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 shares
Statement [Line Items]
Common Shares Issued | shares	253,700	253,700
Gross Proceeds On Cash Commission	$ 5,000
Net Proceeds	$ 202,000
Paid cash commission	2.75%
Prospectus supplement for gross proceeds	$ 207
Issued common shares upon exercise of RSUs | shares	592,667
Fair Value Of Stock Options Granted, Share-based Payments	$ 62,000		$ 32,000
Restricted Share Units | shares	1,809,000		1,799,000
Weighted Average Fair Value Per Share | $ / shares		$ 1.12		$ 1.19
Share-based Payments	$ 339,000		$ 200,000
Share Capital Two [Member]
Statement [Line Items]
Fair Value Of Stock Options Granted, Share-based Payments	277,000		$ 168,000
Share-based Payments	31,000
Share Capital [Member]
Statement [Line Items]
Common Shares Issued | shares			14,000,000	14,000,000	48,000
Exercise Of Warrants | shares					48,000
Share-based Payments	512,000
Share issued for service			$ 1,075,000	$ 1,075,000
Additional Share Issuance Cost	15,000
Share Capital Three [Member]
Statement [Line Items]
Common Shares Issued | shares					982,879
Share-based Payments	$ 899,000

XML

REVENUE AND COST OF SALES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUE AND COST OF SALES
Concentrate Sales	$ 9,992	$ 9,789
Provisional Pricing Adjustments	(167)	1,261
Total Revenue	$ 9,825	$ 11,050

XML

REVENUE AND COST OF SALES (Details1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUE AND COST OF SALES
Production costs	$ 7,304	$ 5,847
Depreciation and depletion	670	459
Total cost	$ 7,974	$ 6,306

XML

GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Salaries And Benefits	$ 395	$ 438
Professional Fees	239	208
Office And Miscellaneous	192	174
Management And Consulting Fees	106	116
Investor Relations	81	52
Travel And Promotion	54	10
Directors Fees	44	41
Regulatory And Compliance Fees	38	47
Depreciation	35	30
General and administrative expenses	$ 1,184	$ 1,116

XML

COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Minimum Rental And Lease Payments	$ 825	$ 850
Later than five years [member]
Statement [Line Items]
Minimum Rental And Lease Payments	375	398
Not later than one year [member]
Statement [Line Items]
Minimum Rental And Lease Payments	103	105
Later than one year and not later than five years [member]
Statement [Line Items]
Minimum Rental And Lease Payments	$ 347	$ 347

XML

COMMITMENTS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Office Lease Payments Recognized As Expense	$ 4	$ 16

XML

SUPPLEMENTARY CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net change in non-cash working capital items:
Inventory	$ (1,419)	$ 339
Prepaid expenses and other assets	(18)	(327)
Taxes recoverable	(625)	210
Taxes payable	(867)	(28)
Accounts payable and accrued liabilities	1,466	(1,013)
Amounts receivable	843	(1,394)
Amounts due to related parties	39	(15)
Net change in non-cash working capital	$ (582)	$ (202)

XML

SUPPLEMENTARY CASH FLOW INFORMATION (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest paid	$ 42	$ 20
Taxes paid	5	0
Equipment acquired under finance leases and equipment loans	$ 47	$ 20

XML

SUPPLEMENTARY CASH FLOW INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Acquisition of La Preciosa, net of cash & transaction costs	$ 0	$ 21,535
Shares acquired under terms of option agreements	41	31
Transfer of share-based payments reserve upon exercise of RSUs	512	0
Transfer of share-based payments reserve upon option exercise	0	15
Equipment acquired under finance leases and equipment loans	1,808	1,101
Non-cash investing and financing activities	$ 2,361	$ 22,682

XML

FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Accounts Payable And Accrued Liabilities	$ 10,922	$ 9,469
Amounts Due To Related Parties	67	28
Equipment Loans	316	$ 0
Less Than One Year [Member]
Statement [Line Items]
Accounts Payable And Accrued Liabilities	10,922
Amounts Due To Related Parties	67
Minimum rental and lease payments	105
Equipment Loans	165
Finance Lease Obligations	1,523
Total	12,782
Financial Instruments [Member]
Statement [Line Items]
Accounts Payable And Accrued Liabilities	10,922
Amounts Due To Related Parties	67
Minimum rental and lease payments	849
Equipment Loans	481
Finance Lease Obligations	2,925
Total	15,244
Later than one year and not later than five years [member]
Statement [Line Items]
Accounts Payable And Accrued Liabilities	0
Amounts Due To Related Parties	0
Minimum rental and lease payments	346
Equipment Loans	316
Finance Lease Obligations	1,402
Total	2,064
More Than 5 Years [Member]
Statement [Line Items]
Accounts Payable And Accrued Liabilities	0
Amounts Due To Related Parties	0
Minimum rental and lease payments	398
Equipment Loans	0
Finance Lease Obligations	0
Total	$ 398

XML

FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Long-term Investments	$ 1,466	$ 1,746
Amounts Receivable	2,015	2,672
Accounts Payable And Accrued Liabilities	10,922	9,469
Due To Related Parties	67	28
MXN [Member]
Statement [Line Items]
Cash	5,063	4,097
Due from related parties	1,402	1,402
Long-term Investments	0	0
Reclamation Bonds	0	0
Amounts Receivable	1,549	0
Accounts Payable And Accrued Liabilities	(76,052)	(85,486)
Due To Related Parties	0	0
Finance Lease Obligations	(880)	(161)
Net Exposure	(68,918)	(80,148)
Us Dollar Equivalent	(3,811)	(4,136)
CDN [Member]
Statement [Line Items]
Cash	219	250
Due from related parties	0	0
Long-term Investments	1,984	2,365
Reclamation Bonds	6	4
Amounts Receivable	302	34
Accounts Payable And Accrued Liabilities	(54)	(108)
Due To Related Parties	(195)	(135)
Finance Lease Obligations	(331)	(343)
Net Exposure	1,931	2,067
Us Dollar Equivalent	$ 1,426	$ 1,526

XML

FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement [Line Items]
Amounts Receivable	$ 2,015	$ 2,672
Long-term Investments	1,466	1,746
Warrant Liability	1,306	$ 745
Level 1 of fair value hierarchy [member]
Statement [Line Items]
Cash	2,697
Amounts Receivable	0
Long-term Investments	1,466
Total Financial Assets	4,163
Warrant Liability	0
Total Financial Liabilities	0
Level 2 of fair value hierarchy [member]
Statement [Line Items]
Cash	0
Amounts Receivable	2,015
Long-term Investments	0
Total Financial Assets	2,015
Warrant Liability	0
Total Financial Liabilities	0
Level 3 of fair value hierarchy [member]
Statement [Line Items]
Cash	0
Amounts Receivable	0
Long-term Investments	0
Total Financial Assets	0
Warrant Liability	(771)
Total Financial Liabilities	$ 771

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FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Foreign Currency Risk [Member]
Statement [Line Items]
Asset And Liability Exposure, Description	A 10% change in the interest rate would not a result in a material impact on the Company’s operations.
Impact On Net Earning (loss)	$ 251	$ 275
Price Risk [Member]
Statement [Line Items]
Impact On Net Earning (loss)	17	65
Price Risk [Member] | Long-term investments [Member]
Statement [Line Items]
Impact On Net Earning (loss)	143	$ 175
Liquidity Risk [Member]
Statement [Line Items]
Cash	2,697
Working Capital	$ 5,109

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SEGMENTED INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Silver	$ 3,608	$ 3,896
Gold	3,135	2,442
Copper	4,689	7,053
Penalties, Treatment Costs And Refining Charges	(1,607)	(2,344)
Total Revenue From Mining Operations	$ 9,825	$ 11,050

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SEGMENTED INFORMATION (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Customer 1	$ 9,225	$ 8,985
Customer 2	600	0
Other Customer	0	2,065
Total Revenue From Mining Operations	$ 9,825	$ 11,050

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SEGMENTED INFORMATION (Details 2) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Exploration And Evaluation Assets - Mexico	$ 50,093	$ 49,803
Exploration And Evaluation Assets - Canada	1	1
Total Exploration And Evaluation Assets	$ 50,094	$ 49,804

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SEGMENTED INFORMATION (Details 3) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Plant, Equipment And Mining Properties - Mexico	$ 48,368	$ 43,812
Plant, Equipment And Mining Properties - Canada	240	244
Total Plant, Equipment And Mining Properties	$ 48,608	$ 44,056

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SEGMENTED INFORMATION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total Revenue From Mining Operations	$ 9,825	$ 11,050