TORONTO, April 13, 2020 /PRNewswire/ - Orvana
Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") reports
that production at its Spanish operations have restarted after a
temporary suspension, in compliance with the Spanish Government's
Extended Lockown Order (as defined below) to contain the
advancement of the COVID-19 virus. The Company is also reporting
its production results for the second quarter of fiscal 2020 ("Q2
2020").
Resuming Production Activities
As announced in the Company's news release on March 30, 2020, the Company temporarily reduced
its normal mining operations at OroValle to the minimum essential
activities in accordance with the legislation passed by the
Spain's Government on March 29th, 2020 to contain the
COVID-19 pandemic in Spain. (the
"Extended Lockdown Order"). However, during the Extended Lockdown
Order period, the Company was able to gradually re-start production
activities at OroValle, after the Government passed clarifying
rules allowing export industries to resume production where such
production was subject to international contractual commitments.
The Extended Lockdown Order expired on April
9, 2020.
The Company continues to implement comprehensive and proactive
measures to respond to the COVID-19 pandemic; and continues to work
closely with local governments and authorities to ensure proper
protocols are followed during the ongoing COVID-19 crisis. CEO
Juan Gavidia stated, "Our team
continues to prioritize and focus on the health and safety of the
workforce through the implementation of preventive protocols and
strictly following the health authority's recommendations. The
Company continues to assess potential COVID-19 impacts on
operations and continues to adhere to directives from the central
and local governments".
Q2 FY2020 Highlights:
- Gold output, at 12,139 ounces.
- Gold-equivalent output, at 14,843 ounces.
- Brownfield and greenfield exploration continues at Orovalle
to extend the mine life.
El Valle
- Quarterly 12,139 ounces gold production was 12% lower than
previous quarter, due to lower throughput and lower ore grade on
weakened oxides/skarns blending.
- Gold head grade of 2.74 g/t declined, compared to 2.98 g/t
reported in Q1 FY2020.
- Copper production was 1.4 million pounds, compared to 0.9
million pounds in Q1 FY2020.
- Mine exploration activities continue to focus on high-grade
oxides areas to ensure optimum feed blending for years to
come.
- Carlés exploration drilling is in progress, with 1,500 meters
drilled to date. Results will be provided in due course, once the
program is completed.
Don Mario
The Company's Don Mario gold-silver property
in Bolivia continues its care and
maintenance phase, as previously announced on November 8, 2019, while development and
engineering of the oxides stockpile is being advance. The small
team of essential employees at Don Mario are following both Orvana
and governmental requirements relating to the containment of
COVID-19.
Production Results
|
|
Q2
2020
|
|
|
Q1
2020
|
|
Q2
2019
|
|
El
Valle
|
Don
Mario
|
Total
|
El
Valle
|
Don
Mario
|
Total
|
El
Valle
|
Don
Mario
|
Total
|
|
|
|
|
|
|
|
|
|
|
Ore milled
(tones)
|
148,339
|
-
|
148,339
|
155,662
|
64,875
|
220,537
|
170,435
|
188,606
|
359,041
|
Gold Equivalent
(oz)
|
14,843
|
-
|
14,843
|
15,654
|
2,132
|
17,786
|
21,414
|
9,677
|
31,091
|
Gold
|
|
|
|
|
|
|
|
|
|
Grade (g/t)
|
2.74
|
-
|
2.74
|
2.98
|
1.07
|
2.42
|
3.49
|
1.68
|
2.54
|
Recovery
(%)
|
93.0
|
-
|
93.0
|
92.2
|
84.4
|
92.2
|
92.7
|
94.0
|
93.2
|
Production
(oz)
|
12,139
|
-
|
12,139
|
13,722
|
2,093
|
15,815
|
17,742
|
9,564
|
27,306
|
Copper
|
|
|
|
|
|
|
|
|
|
Grade (%)
|
0.52
|
-
|
0.52
|
0.36
|
-
|
0.36
|
0.49
|
-
|
0.49
|
Recovery
(%)
|
83.1
|
-
|
83.1
|
71.5
|
-
|
71.5
|
78.1
|
-
|
78.1
|
Production (K
lbs)
|
1,422
|
-
|
1,422
|
892
|
-
|
892
|
1,441
|
-
|
1,441
|
Fiscal 2020 Guidance
The Company continues to assess and identify opportunities to
mitigate the potential effects of COVID-19 on its day-to-day
operations. The Company also continues to closely monitor the very
fluid COVID-19 situation, constantly updating scenarios, reviewing
the latest guidance from the health authorities and engaging with
local authorities. Nonetheless, given the uncertainties with
respect to future developments, including without limitation: (i)
duration, severity and scope of the COVID-19 pandemic; (ii) the
effect of the COVID-19 situation on the future availability of
mining supply and services that support operations; (iii) the
effect of the COVID-19 situation could have on the Company's future
operations and financial condition; and (iv) the necessary
government responses to limiting the spread of COVID-19 spread,
Orvana has decided to suspend its 2020 guidance until the Company
is in a better position to quantify the impact. An update to the
market on any further developments as a result of the COVID-19
situation will be provided in mid-May or earlier.
ABOUT ORVANA - Orvana is a multi-mine
gold-copper-silver company. Orvana's assets consist of the
producing El Valle and Carlés gold-copper-silver mines in northern
Spain, and the Don Mario
gold-silver property in Bolivia,
currently in care and maintenance. Additional information is
available at Orvana's website (www.orvana.com).
Cautionary Statements - Forward-Looking
Information
Certain statements made herein 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", "intends" or
"anticipates" 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 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; any measures taken by the Company to prevent and/or
mitigate the impact of COVID-19 and other infectious diseases at or
near the Company's mines and support the sustainability of its
business including through the development of crisis management
plans, increasing stock levels for key supplies, monitoring of
guidance from the medical community, and engagement with local
communities and authorities; 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 news release, 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 the affect of COVID-19 and other infectious diseases on the
Company's operations, workforce and supply chain, 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 a
sulphidization circuit and ancillary facilities 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 herein 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.
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SOURCE Orvana Minerals Corp.