TSX:ORV
TORONTO, Jan. 18, 2019 /PRNewswire/ -- Orvana Minerals
Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to
provide production results for the first quarter of fiscal 2019
("Q1 2019") for its El Valle Mine ("El Valle") in Spain and Don Mario
Mine ("Don Mario") in Bolivia.
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Q1 FY2019 Production Highlights under sustainable mining
principles:
- First quarter gold production of 27,272 ounces; on
track to meet 2019 guidance;
- First quarter gold equivalent production of 30,988
ounces;
- Orvana continues to drive productivity improvements at both
sites, with sustained higher-grade oxides throughput at El Valle
and the consolidation of Cerro Felix open pit at Don
Mario.
Juan Gavidia, CEO of Orvana
Minerals stated, "We are proud of our fiscal 2019 first quarter,
which strongly supports our production guidance as well as
maintains production levels achieved in fiscal 2018. El Valle
and Don Mario teams are focused on sustainable and reliable
production profiles and on improving unitary costs. At El Valle, we
are delivering on higher head-grades, productivity enhancements and
improving the oxides and skarns blend at the mill. At Don
Mario, we continue to mine Cerro Felix while reviewing the
potential of extending the mine life by up to three more years
through a new processing circuit to treat high-value oxides
stockpiles."
El Valle
- Increased gold production of 16,546 ounces; an increase of 7%
compared to 15,490 ounces in Q4 FY2018 and 53% compared to 10,785
ounces in Q1 FY2018. Production increase due to higher average
head-grade on improved oxides/skarns blend throughput.
- Higher-grade oxides production was 41% of mill feed, compared
to 38% in Q4 FY2018.
- Gold head grade of 3.24 g/t improved, compared to 3.06 g/t
reported in Q4 FY2018.
- Copper production was 1.4 million pounds, compared to 1.3
million pounds in Q4 FY2018.
Don Mario
- Gold production of 10,726 ounces; a decrease of 19% compared to
13,171 ounces in Q4 FY2018 and a decrease of 13% compared to 12,388
ounces in Q1 FY2018. Production decrease was due to lower
head-grade areas mined, according to plan and on track to meet
FY2019 guidance.
- Gold recovery of 94.1% or 2% above 92.2% recovery compared to
Q4 FY2018.
- Engineering is in progress to develop an economic metallurgical
option to treat 2.1Mt oxides stockpile by implementing a
Sulphidization-Acidification-Recycling-Thickening "(SART") circuit
with associated leach pad and ancillary facilities. Target is to
have metallurgical option deployed by fiscal 2020.
- Exploration continues apace to extend Don Mario's mine
life.
Production Results
|
|
|
Q1
2019
|
|
|
Q4
2018
|
|
Q1
2018
|
FY
2019
|
|
El
Valle
|
Don
Mario
|
Total
|
El
Valle
|
Don
Mario
|
Total
|
El
Valle
|
Don
Mario
|
Total
|
Guidance
|
Operating
Performance
|
|
|
|
|
|
|
|
|
|
|
Ore milled (tonnes)
(dmt)
|
170,399
|
186,996
|
357,395
|
170,927
|
184,094
|
355,021
|
131,286
|
181,090
|
312,376
|
|
Gold
Equivalent
|
|
|
|
|
|
|
|
|
|
|
|
Production
(oz)
|
20,186
|
10,802
|
30,988
|
18,970
|
13,251
|
32,221
|
13,434
|
17,223
|
30,657
|
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
Grade
(g/t)
|
3.24
|
1.90
|
2.54
|
3.06
|
2.41
|
2.72
|
2.69
|
2.48
|
2.57
|
|
|
Recovery
(%)
|
93.2
|
94.1
|
93.7
|
92.2
|
92.2
|
92.2
|
95.0
|
85.8
|
89.8
|
|
|
Production
(oz)
|
16,546
|
10,726
|
27,272
|
15,490
|
13,171
|
28,661
|
10,784
|
12,388
|
23,172
|
100,000 –
110,000
|
Copper
|
|
|
|
|
|
|
|
|
|
|
|
Grade (%)
|
0.48
|
|
0.48
|
0.44
|
|
0.44
|
0.38
|
0.82
|
0.64
|
|
|
Recovery
(%)
|
75.9
|
|
75.9
|
77.4
|
|
77.4
|
81.2
|
57.0
|
63.1
|
|
|
Production ('000
lbs)
|
1,375
|
|
1,375
|
1,291
|
|
1,291
|
886
|
1,873
|
2,759
|
3,200 –
3,600
|
Financial Performance
COC and AISC as well as other financial highlights will be released
with the first quarter results expected to be published in
mid-February, 2019.
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 mining of the
Cerro Felix deposit, the processing of the mineral stockpiles
(including the implementation of the SART circuit) 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; mine development plans; and
closing the new facility announced on December 21, 2018.
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; labour and materials costs increasing on a
basis consistent with Orvana's current expectations; and closing
the new financing facility announced on December 21, 2018.
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
successfully implement the SART circuit to process the current
oxides stockpiles at Don Mario; 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.
Nuria Menéndez, Chief Financial Officer, E:
nmenendez@orvana.com; Joanne Jobin,
Investor Relations Officer, E: jjobin@orvana.com, T: 647 964
0292