Mike Kachanovsky, aka 'Mexico Mike' from his Investor's Digest of Canada column, highlighted Avino Silver & Gold Mines in a recent interview with Streetwise Reports.  In this exclusive interview with The Gold Report, Mike discusses historical changes in the gold-to-silver price ratio, shrinking supply, and what to buy.

Mr. Kachanovsky is a consultant providing analysis of junior mining and exploration stocks.  His work is published on a freelance basis in a variety of publications, including the Mexico Mike column in Investor's Digest of Canada.  Mike is a founder of the website www.smartinvestment.ca , which serves as an online community for the discussion of all topics relating to junior mining stocks.

I thought you would be interested in reading his comments on Avino Silver & Gold Mines. These are provided below.

Regards,


David Wolfin
President & Director

Mr.. Kachanovsky's Comments:

TGR: You have been following Avino Silver & Gold Mines Ltd. (TSX..V:ASM) (OTCBB:ASGMF). What is your feeling about that investment play?

MK: Yes, and I am also a shareholder of Avino. I actually went to visit their mine about a year ago, and I am very excited about the company for a number of reasons. Avino is interesting because it's one of the few companies that was active all the way back to before the mining law in Mexico was revised. They were a minority owner of their project, the Avino Mine, which I believe is in Durango, Mexico.. And even after the contraction of the mining industry in the '90s, and the subsequent recovery, Avino maintained that interest. Currently, they own about 86% or 87% of that project. So, they're one of the few companies that has been active with an unbroken ownership interest in Mexico through the bad years and now into the good years.

I also like the fact that it's been very stable in its share structure. If you look at most of the junior mining stocks through the last 10 years, those that survive that long, many of them continue to issue stock every year or two just to raise enough funds to keep them going. Eventually, the number of shares in circulation expands to the point where there's much less value per share for individual shareholders.

Avino has held the line very well. They've got a strong balance sheet with no debt and several million dollars in the bank; and they have increased their ownership of their core assets. They remained active on the exploration side and discovered new ore bodies, and they also have infrastructure on site (an actual mill that was formerly operating). They have worker facilities, an office, administration, a shop, and rolling stock and spare parts�all of which a mine needs to have in order to function. Many of these assets are very expensive and, in some cases, difficult to secure in the current market. So, companies that already have these things in place are much stronger than they appear.

So, Avino is another one of those companies that trades very cheaply and has a very small float. Therefore, I believe, there is that much more leverage for upside for their shareholders when the company has to produce. I believe they're going to be in production within the next six to eight months. They've gone through the permitting work to get to the point where they're able to recommence production. I believe they're discussing with smelters now or companies that can off-take from their production, and they will be able to make a decision very soon in terms of getting back into operation.

Avino is also focusing on a brand new discovery area, the San Gonzalo deposit. It's very near surface, very high grade. They've got the permitting to go in and start mining that on a small-scale basis. Eventually, when they get back up to speed, they'll de-water the old workings of the old underground mine and advance a new tunnel underground to link up with the new San Gonzalo mine and other outlined targets. That's when they will be able to get back into full-scale production.

Their mill has a capacity of about 1,500 tons per day. When they restart operations in the next few months, their objective will be from maybe 250 to 500 tons a day. So, it will be a much smaller operation but it will be economic and cash-flow positive for them.

To see the entire interview click here:
www.TheAuReport.com/cs/user/print/na/2684

This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.