Avino's La Preciosa Drilling Success Fuels Stock Surge and Mining Plan Rethink
Shares of Avino Silver & Gold Mines Ltd. (TSX: ASM) have surged following the release of robust drill results from its La Preciosa project in Durango, Mexico. The 2025 program returned silver and gold grades that surpassed expectations, providing strong confirmation for the company's existing vein model of the deposit.
This validation is more than a geological win; it has operational implications. Management indicated that the higher-than-anticipated grades are leading to a reassessment of the planned underground mining method. The potential shift could allow for larger blast volumes, thereby increasing throughput and driving down unit mining costs over the long term.
The news has propelled Avino's stock significantly, rewarding investors who bet on the company's ability to develop La Preciosa into a cornerstone asset. However, the rally also raises the stakes. With the stock now trading at a premium to many peers and above some analyst price targets, the company's execution in the coming quarters—covering mine planning, permitting, and the eventual ramp-up to production targeted for 2026—faces heightened scrutiny. Any misstep or downturn in metal prices could have an amplified impact on the share price.
The market's valuation of Avino reflects a wide spectrum of expectations. Analyst and community fair value estimates remain sharply divided, underscoring the debate over how much the promising La Preciosa results will translate into future cash flows.
Investor Perspectives:
Michael Thorne, Resource Sector Portfolio Manager: "This is exactly the de-risking event Avino needed. Confirming the model at La Preciosa reduces geological uncertainty and opens the door to more efficient mine design. The re-rating is justified, but the real work starts now."
David Chen, Mining Engineer & Independent Analyst: "The grade is encouraging, but the devil is in the details of 'reassessing the mining method.' Switching methods mid-plan can introduce delays and cost overruns. The market seems to be pricing in a flawless execution path, which is rarely the case in junior mining."
Sarah Jenkins, Retail Investor & Newsletter Author: "It's another classic pump on drill results. The stock is up 38% on a report, not on actual ore being mined or sold. The valuation is disconnected from the real, ongoing risks on the ground in Mexico. This feels speculative and overheated."
Elena Rodriguez, Latin America Metals & Mining Analyst: "For the region, this strengthens Durango's profile as a premier silver district. A successful, efficient Avino operation could attract more exploration capital and benefit the local economy, provided community and environmental stewardship are prioritized."
This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence.