Avino Silver & Gold Mines Ltd. Enters Into Option Agreement With Endeavour Silver Corp.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2012) -Avino Silver & Gold Mines Ltd. (TSX VENTURE:ASM)(NYSE Amex:ASM)(NYSE MKT:ASM)(BERLIN:GV6)(FRANKFURT:GV6) ("Avino" or "the Company"), is pleased to announce that it has entered into an option and joint venture agreement with Endeavour Silver Corp. ("Endeavour"), whereby Endeavour was granted the option to acquire up to a 75% interest in the Laberinto Property ("the Property"), Durango State, Mexico, consisting of approximately 91.7 hectares. In order to exercise the option, Endeavour must pay up to US $200,000 in annual installments over 4 years to Avino in option payments, and incur up to US$3 million in exploration work on the Property over the next 4 years.
Upon Endeavour acquiring its 75% interest, a joint venture will be formed, under which if any party does not contribute its proportionate share of costs, its participating interest will be diluted on a pro rata basis according to the contributions of all parties. If any party's participating interest is reduced to 10% or less, then its interest will be automatically converted into a 2.5% net smelter returns royalty.
The El Laberinto property is situated 60 km's NE of Durango, Mexico and 25 km west of Avino's main mine. It occurs in the Sierra La Silla (hills) which form part of a large volcanic caldera which also contains Avino's main holdings. The Sierra La Silla area contains many silver, gold, lead, zinc and copper veins similar to those at Avino which are also situated in the lower volcanic Andesite sequence.
El Laberinto is a small property today and is a remnant of a much larger land package in the area once controlled by Avino.
During 1995 Avino mapped the La Silla area and sampled the principal veins. Avino had assembled the land package in the district in search of another Avino main vein. (Report August 1995)
Avino drove an adit on the Veta Grande ("Big Vein") in late 1995. Values of silver and gold were sub economic. The adit was stopped at approximately 300 meters length before it reached the main shoot described in the 1995 report. Three holes were drilled below the adit, assays are unavailable.
Avino does not consider that the Big Vein has been adequately explored to date. Although the adit showed low values, it didn't reach the principal shoot and was likely too high on the vein structure.
The disclosure of the technical information contained in this news release has been reviewed and approved by Mr. Chris Sampson, P.Eng., and Mr. Jasman Yee, P.Eng., who are Qualified Persons as defined by NI 43-101.