COMPLETES SUCCESSFUL TWO-YEAR RAMP-UP & PROVIDES 2019
PRODUCTION GUIDANCE
TSX:ORV
TORONTO, Oct. 17, 2018 /PRNewswire/ -- Orvana
Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased
to provide production results for the fourth quarter of fiscal 2018
("Q4 2018") and full fiscal year 2018 ("FY 2018") for its El Valle
Mine ("El Valle") in Spain and
Don Mario Mine ("Don Mario") in
Bolivia.
Production Highlights
- Record consolidated annual gold production of 103,384
ounces, an increase of 14% compared to YE 2017 (90,292 ounces) and
a 57% increase compared to YE 2016 (65,784 ounces);
- Consolidated gold equivalent production of 126,017
ounces;
- Record consolidated quarter gold production of 28,661
ounces, an increase of 7% compared to Q3 2018;
- FY 2019 production guidance of 100,000 to 110,000 ounces of
gold, aligns with successful completion of two-year ramp-up
effort;
- Orvana will continue to drive productivity improvements and
reduction of unitary costs at both sites through the continued
transition of higher grade oxides at El Valle and the opening up of
new areas at Don Mario.
Juan Gavidia, CEO of Orvana
Minerals stated, "We are pleased to have produced above 100,000
ounces of gold in FY 2018. While achieving record gold production,
we continued to maintain our high safety and environmental policy
standards. Our production success caps a two-year effort to
aggressively improve operations at El Valle and Don Mario."
Mr. Gavidia further stated, "We are also firmly committed to
lowering unitary costs and maximizing free cash flow. We anticipate
2019 to be key to our expanding exploration and business
development programs."
FY 2018 Production – El Valle Mine
- Gold production of 58,259 ounces or an increase of 13% compared
to 51,546 ounces in 2017;
- Copper production was 5.1 million pounds, compared to 5.5
million pounds in 2017;
- Higher grade drifts (oxides ore) increased by 82%, to 6,861
meters during FY 2018, contributing to successful production
results for the year;
- Higher-grade oxides production was 37% of mill ore feed,
compared to 22% in 2017;
- Q4 gold grade of 3.06 g/t was below Q3's 3.36 g/t, as per
planned mining schedule.
FY 2018 Production – Don Mario
Mine
- Gold production of 45,125 ounces, or an increase of 16%
compared to 38,746 ounces in FY 2017;
- Gold recovery of 90.2% largely surpassed targeted gold recovery
of 80% for the first fiscal year after CIL circuit
re-commissioning;
- There was no copper production in Q4 2018 as the flotation
circuit was shut down at the end of Q2 2018.
Production Results
|
|
|
|
|
|
|
|
Q4
2018
|
Q3
2018
|
FY
2018
|
FY
2018
|
FY
2017
|
FY
2016
|
|
El
Valle
|
|
Don
Mario
|
Total
|
El
Valle
|
Don
Mario
|
Total
|
Total
|
Revised
Guidance
|
Total
|
Total
|
Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled (tonnes)
(dmt)
|
170,927
|
|
184,094
|
355,021
|
169,958
|
176,400
|
346,358
|
1,342,464
|
|
1,375,738
|
1,258,190
|
Gold
Equivalent
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
(oz)
|
18,970
|
|
13,251
|
32,221
|
21,357
|
9,968
|
31,525
|
126,017
|
|
124,039
|
98,960
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade
(g/t)
|
3.06
|
|
2.41
|
2.72
|
3.36
|
1.90
|
2.62
|
2.61
|
|
|
|
|
Recovery
(%)
|
92.2
|
|
92.2
|
92.2
|
91.8
|
92.4
|
92.1
|
91.4
|
|
|
|
|
Production
(oz)
|
15,490
|
|
13,171
|
28,661
|
16,845
|
9,916
|
26,761
|
103,384
|
100,000 –
110,000
|
90,292
|
65,784
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%)
|
0.44
|
|
|
0.44
|
0.51
|
|
0.51
|
0.53
|
|
|
|
|
Recovery
(%)
|
77.4
|
|
|
77.4
|
81.6
|
|
81.6
|
73.7
|
|
|
|
|
Production ('000
lbs)
|
1,291
|
|
|
1,291
|
1,575
|
|
1,575
|
8,234
|
8,000 –
8,400
|
13,893
|
14,735
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Performance
COC and AISC guidance as well as other financial highlights will
be released with the year end financials, expected early
December 2018.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana's
operating assets consist of the producing El Valle and Carlés
gold-copper-silver mines in northern Spain and the producing Don Mario gold mine in
Bolivia. Additional information is
available at Orvana's website (www.orvana.com).
Cautionary Statements - Forward-Looking
Information
Certain statements in this information
constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions, potentials,
future events or performance (often, but not always, using words or
phrases such as "believes", "expects", "plans", "estimates" or
"intends" or stating that certain actions, events or results "may",
"could", "would", "might", "will" or "are projected to" be taken or
achieved) are not statements of historical fact, but are
forward-looking statements.
The forward-looking statements herein relate to, among other
things, Orvana's ability to achieve improvement in free cash flow;
the potential to extend the mine life of El Valle and Don Mario
beyond their current life-of-mine estimates including specifically,
but not limited to in the case of Don Mario, the completion of the
major tailings storage facility expansion, the mining of the Cerro
Felix deposit, the processing of the mineral stockpiles and the
reprocessing of the tailings material; Orvana's ability to optimize
its assets to deliver shareholder value; the Company's ability to
optimize productivity at Don Mario and El Valle; estimates of
future production, operating costs and capital expenditures;
mineral resource and reserve estimates; statements and information
regarding future feasibility studies and their results; future
transactions; future metal prices; the ability to achieve
additional growth and geographic diversification; future financial
performance, including the ability to increase cash flow and
profits; future financing requirements; and mine development
plans.
Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by the Company as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The estimates and
assumptions of the Company contained or incorporated by reference
in this information, which may prove to be incorrect, include, but
are not limited to, the various assumptions set forth herein and in
Orvana's most recently filed Management's Discussion & Analysis
and Annual Information Form in respect of the Company's most
recently completed fiscal year (the "Company Disclosures") or as
otherwise expressly incorporated herein by reference as well as:
there being no significant disruptions affecting operations,
whether due to labour disruptions, supply disruptions, power
disruptions, damage to equipment or otherwise; permitting,
development, operations, expansion and acquisitions at El Valle and
Don Mario being consistent with the Company's current expectations;
political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; certain
price assumptions for gold, copper and silver; prices for key
supplies being approximately consistent with current levels;
production and cost of sales forecasts meeting expectations; the
accuracy of the Company's current mineral reserve and mineral
resource estimates; and labour and materials costs increasing on a
basis consistent with Orvana's current expectations.
A variety of inherent risks, uncertainties and factors, many
of which are beyond the Company's control, affect the operations,
performance and results of the Company and its business, and could
cause actual events or results to differ materially from estimated
or anticipated events or results expressed or implied by forward
looking statements. Some of these risks, uncertainties and factors
include fluctuations in the price of gold, silver and copper; the
need to recalculate estimates of resources based on actual
production experience; the failure to achieve production estimates;
variations in the grade of ore mined; variations in the cost of
operations; the availability of qualified personnel; the Company's
ability to obtain and maintain all necessary regulatory approvals
and licenses; the Company's ability to use cyanide in its mining
operations; risks generally associated with mineral exploration and
development, including the Company's ability to continue to operate
the El Valle and/or Don Mario and/or ability to resume long-term
operations at the Carlés Mine; the Company's ability to acquire and
develop mineral properties and to successfully integrate such
acquisitions; the Company's ability to execute on its strategy; the
Company's ability to obtain financing when required on terms that
are acceptable to the Company; challenges to the Company's
interests in its property and mineral rights; current, pending and
proposed legislative or regulatory developments or changes in
political, social or economic conditions in the countries in which
the Company operates; general economic conditions worldwide; and
the risks identified in the Company's disclosures.
This list is not exhaustive of the factors that may affect any
of the Company's forward-looking statements and reference should
also be made to the Company's Disclosures for a
description of additional risk factors.
Any forward-looking statements made in this information with
respect to the anticipated development and exploration of the
Company's mineral projects are intended to provide an overview of
management's expectations with respect to certain future activities
of the Company and may not be appropriate for other
purposes.
Forward-looking statements are based on management's current
plans, estimates, projections, beliefs and opinions and, except as
required by law, the Company does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Readers are cautioned not to put undue reliance on forward-looking
statements.
The forward-looking statements made in this information are
intended to provide an overview of management's expectations with
respect to certain future operating activities of the Company and
may not be appropriate for other purposes.
Cautionary Notes to Investors – Reserve and Resource
Estimates
In accordance with applicable Canadian securities regulatory
requirements, all mineral reserve and mineral resource estimates of
the Company disclosed in this AIF have been prepared in accordance
with NI 43-101 (as defined below), classified in accordance with
Canadian Institute of Mining Metallurgy and Petroleum's "CIM
Standards on Mineral Resources and Reserves Definitions and
Guidelines" (the "CIM Guidelines").
Pursuant to the CIM Guidelines, mineral resources have a
higher degree of uncertainty than mineral reserves as to their
existence as well as their economic and legal feasibility. Inferred
mineral resources, when compared with measured or indicated mineral
resources, have the least certainty as to their existence, and it
cannot be assumed that all or any part of an inferred mineral
resource will be upgraded to an indicated or measured mineral
resource as a result of continued exploration. Pursuant to NI
43-101, inferred mineral resources may not form the basis of any
economic analysis, including any feasibility study. Accordingly,
readers are cautioned not to assume that all or any part of a
mineral resource exists, will ever be converted into a mineral
reserve, or is or will ever be economically or legally mineable or
recovered.
For further information: Nuria Menéndez, Chief Financial
Officer, E: nmenendez@orvana.com; Joanne Jobin, Investor
Relations Officer, E: jjobin@orvana.com, T: 647 964 0292