Avino Continues to Intersect High-Grade Silver at La Preciosa
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On October 27, 2025, Avino Silver & Gold Mines announced results from four additional drill holes at its La Preciosa project in Mexico. The drilling is part of a program to support the planned underground mining of the Gloria and Abundancia veins. Key highlights include: - Hole PMLP-25-06 intersected 6.8 metres of 787 g/t silver (Ag) and 0.51 g/t gold (Au) in the La Gloria vein. - Hole PMLP-25-08 intersected 5.35 metres of 306 g/t Ag and 1.15 g/t Au in the La Gloria vein, and a separate interval of 4.2 metres of 463 g/t Ag and 0.61 g/t Au in the Abundancia vein. The CEO stated that the results returned "excellent grades that exceed the current resource average" and reinforce the company's strategy of using underground mining methods to develop the deposit.
This news is materially positive as it continues to de-risk Avino's key growth asset, the La Preciosa project. The systematic evaluation of company news shows a clear and positive progression.
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Execution and De-risking: Throughout 2025, Avino has consistently delivered on its plans for La Preciosa. After receiving permits and commencing development in January, the company has provided regular updates showing progress. The October 14 release confirmed that development is ahead of schedule, with stockpiled material already being trucked to the mill for processing. Today's drill results are a critical component of this de-risking process. They follow exceptional results from August 18 (7.9m of 1,638 g/t Ag) and confirm that high-grade, wide intercepts are a consistent feature of the targeted veins. This geological confirmation is crucial ahead of the planned Q1 2026 initial reserve estimate.
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Strategic Prudence: The decision in August 2025 to spend $22 million in cash to buy out all royalties on La Preciosa was a significant and value-accretive move. It demonstrated management's high degree of confidence in the project's future, a confidence that is being validated by these strong drill results. By making the project royalty-free, Avino has substantially improved its future operating cost profile and net asset value per share.
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Financial Strength: Avino entered this growth phase from a position of strength, reporting record financial performance for 2024 and continuing that trend through Q1 and Q2 of 2025. The company's cash balance grew to $55 million by the end of Q3 2025, even after the initial payment for the royalty buyout. This strong balance sheet, coupled with being debt-free, allows Avino to fund the initial development of La Preciosa from internal cash flow, minimizing immediate shareholder dilution.
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Market Recognition: The company's inclusion in the GDXJ junior gold miners index in September 2025 reflects its successful transition towards becoming a more significant producer. This should improve liquidity and attract a wider investor base.
In the context of this timeline, the October 27 drill results are not a surprise but are a vital confirmation step. They reinforce the geological model, support the underground mining plan, and increase the probability of a robust initial mineral reserve in early 2026. For a risk-averse analyst, seeing a company consistently execute its plan and validate its geological thesis is a significant positive.
Avino Silver & Gold Mines Ltd. is a Canadian mining company focused on silver, gold, and copper production in Mexico. Its primary producing asset is the Avino Mine property near Durango. The company's flagship development project and primary growth driver is the 100%-owned La Preciosa property, located approximately 19km from the Avino Mine. La Preciosa is one of the largest undeveloped primary silver resources in Mexico. The corporate strategy involves developing La Preciosa through underground mining and leveraging the existing 2,500 tonne-per-day mill at the Avino Mine for processing, creating a district-scale operation.