Avino Silver & Gold Mines has announced commercial production has started at the 'ET' mine on the Avino Property in Durango, Mexico.
The company's announcement came after competion of an advancement and test period of 19 months.
During this period, it was found that mineral recoveries were at levels necessary for positive cash-flows and profitability.
Underground mining commenced at the mine on upper level 11.5 using the long-hole retreat sub-level caving method.
Avino Silver & Gold Mines president, CEO and director David Wolfin said: "We have continued to build our first class mining operation over the last 19 months and declaring commercial production at the Avino Mine marks the achievement of another milestone for the company.
"Avino believes this declaration of commercial production will not only improve our financial performance, but will demonstrate to our shareholders that we continue to build value while we expand our operations and execute our long-term objectives."
The company has now acquired all capital components to achieve desired mining and processing results and secured necessary labour force, including production and development mining contractors to mine and process at planned levels of output.
Avino has also signed an agreement with Samsung C&T UK for a term facility, which has provided capital to facilitate further expansion and development of the mine.
The Avino property covers 1,104ha and is accessible by road with access to water and grid power.
The mine first opened in the 1500s and reportedly supplied Spain with wealth for hundreds of years. It closed in 2001 due to low silver prices and the closure of a key smelter.