TORONTO, Jan. 16,
2023 /CNW/ - Orvana Minerals Corp. (TSX: ORV)
(the "Company" or "Orvana") is pleased to report production
results and drilling updates from Orovalle, Orvana's unit in
Spain, for the first quarter of
fiscal year 2023 ("Q1 FY2023), being the period ended December 31, 2022.
Highlights
- Q1 2023 production of 13,815 gold equivalent ounces
- 2,868 m of infill drilling in
Orovalle, Spain
- 733 m of greenfield drilling in
Orovalle, Spain
Juan Gavidia, CEO of Orvana
stated: "We successfully completed the quarter by achieving
production levels at El Valle that keep us on target for our FY2023
guidance, while continuing our aggressive brownfield and greenfield
exploration program in Spain,
aimed to replenish depletion, quarter per quarter".
Q1 2023 Production Results
- 10,711 gold ounces produced, on track to meet fiscal year 2023
guidance of 46,000 - 51,000 Oz.
- 1.2 million copper pounds produced, on track to meet fiscal
year 2023 guidance of 4,000 – 4,400 Oz.
|
Q1
FY2023
|
Q4
FY2022
|
Q1
FY2022
|
FY 2023
Guidance
|
|
|
|
|
|
|
Ore milled
(tones)
|
|
156,681
|
174,493
|
176,288
|
|
Gold Equivalent
(oz)
|
|
13,815
|
15,344
|
15,921
|
|
Gold
|
|
|
|
|
|
Grade (g/t)
|
|
2.30
|
2.36
|
2.27
|
|
Recovery (%)
|
|
92.5
|
92.7
|
91.2
|
|
Production (oz)
|
|
10,711
|
12,272
|
11,731
|
46,000 -
51,000
|
Copper
|
|
|
|
|
|
Grade (%)
|
|
0.43
|
0.40
|
0.45
|
|
Recovery (%)
|
|
82.6
|
83.2
|
83.7
|
|
Production (K
lbs)
|
|
1,216
|
1,267
|
1,451
|
4,000 -
4,400
|
Q1 FY2023 Drilling Update
Drilling
Summary
|
Infill
(m)
|
Greenfield
(m)
|
TOTAL (m)
|
Ortosa-Godán
|
-
|
733
|
733
|
El Valle
Boinás
|
|
|
|
Boinas South (SB)
|
2,868
|
-
|
2,868
|
TOTAL
|
2,868
|
733
|
3,601
|
Table 1. Orovalle
Drilling Q1 FY2023
|
FY2023 Greenfield Drilling Program
Greenfield drilling program will continue focused on
Ortosa-Godán and Lidia, with a total of 4,300 meters planned for
the fiscal year.
Ortosa-Godán Project is located close to Carlés mine, three
kilometers northwest and into the same gold belt. Orovalle
commenced the drilling program in Ortosa West in August 2021 to define skarns continuity and to
verify mineralization related to N40ºE structures. A total of 14
drill holes were completed up to date with 5,716 meters. 3,800
meters are planned for FY2023 focused on defining skarn
mineralization In Ortosa West and Godan areas.
Lidia Project is located in the Navelgas Gold Belt, 20 km from
El Valle mine. Gold porphyry Lidia Project occurs within the
easternmost part of the Navelgas fracture systems. A granodiorite
intrusive outcrops over an area of approximately 1 km2. It is
dissected by a set of northeast trending mineralized quartz veins
and affected by different alteration phases.
A total of 2,421 meters in 5 drill holes were completed between
fiscal years 2021 and 2022, confirming the presence of gold in the
granodiorite. A drilling campaign with 500 meters is planned for
the second half of fiscal 2023, with the target to extend the
orebody definition to the North.
FY2023 Infill-Brownfield Drilling Program
11,500 meters are planned for FY2023 in El Valle-Boinás, focused
on Inferred material conversion and oxide mineral definition in the
North of the deposit.
Quality Control
Greenfield drill hole samples were sent to an external
laboratory (ALS Laboratory) for analyses. Infill and brownfield
drill holes samples were analyzed in Orovalle's Laboratory.
Sample preparation was carried out at the El Valle facility. All
diamond core samples have been prepared using the following
procedure, once split:
The core samples are dried at a temperature of 105ºC and then
crushed through a jaw crusher to 95%<6 mm. The coarse-crushed
sample is further reduced to 95%<425 microns using an LM5
bowl-and-puck pulverizer. An Essa rotary splitter is used to take a
450 g to 550 g sub-sample of each split for pulverizing. The
remaining reject portion is bagged and stored. The sample is
reduced to a nominal -200 mesh using an LM2 bowl-and-puck
pulverizer. 140 g sub-samples are split using a special
vertical-sided scoop to cut channels through the sample which has
been spread into a pancake on a sampling mat. Samples are then sent
to the laboratory for gold and base metal analysis. Leftover pulp
is bagged and stored.
After sample preparation, 30g samples are analyzed for Au by
fire assay with an atomic absorption spectroscopy (AAS) finish and
two-gram samples for Ag, As, Bi, Cu, Hg, Pb, Sb, Se, and Zn by
ICP-optical emission spectroscopy (ICP-OES) after an aqua regia
digestion.
In case of the samples sent to an external laboratory, 30 g
samples are analyzed for Au by fire assay with an atomic absorption
(Au AA-25) and 35 elements by ICP (ME-ICP41) after an agua region
digestion. When Au and Ag values are >100 ppm and Cu and As
values are >10,000 ppm, specific analysis methods are used to
determinate the final grade.
The reported work has been completed using industry standard
procedures, including a quality assurance/quality control ("QA/QC")
program consisting of the insertion of certified reference
material, blanks and duplicates samples into the sample stream.
The exploration update was prepared under the supervision of
Guadalupe Collar Menéndez, a qualified person for the purposes of
NI 43-101 and an employee of Orovalle Minerals S.L., a subsidiary
of Orvana.
Reference to "gold equivalent ounces" - Gold equivalent
ounces is a non-GAAP financial performance measure. This non-GAAP
financial performance measure referenced in this news release is
intended to provide additional information to investors and do not
have any standardized meaning under IFRS, and therefore may not be
comparable to other issuers, and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. For further information and detailed
reconciliations, please see the "Non-GAAP Financial Performance
Measures" section of the Company's MD&A dated December 19, 2022.
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, the Don Mario gold-silver property in
Bolivia, currently in care and
maintenance, and the Taguas property located in Argentina. Additional information is available
at Orvana's website (www.orvana.com).
Cautionary Statements – Forward-Looking
Information
Certain statements in this presentation 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", "are projected to" or "confident of" 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 ability to maintain expected mining rates and expected
throughput rates at El Valle Plant; 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,
Orvana's ability to optimize its assets to deliver shareholder
value; El Valle; estimates of future production (including without
limitation, production guidance), 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; and
future financial performance, including the ability to increase
cash flow and profits; future financing requirements; mine
development plans; and the possibility of the conversion of
inferred mineral resources to mineral reserves.
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, which includes,
without limitation, as particularly set out in the notes
accompanying the Company's most recently filed financial
statements. 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 the availability of necessary
funds to execute the Company's plan. Without limiting the
generality of the foregoing, this news release also contains
certain "forward-looking statements" within the meaning of
applicable securities legislation, including, without limitation,
references to the results of the Company's exploration activities,
including but not limited to, drilling results and analyses,
mineral resource estimation, conceptual mine plan and operations,
internal rate of return, sensitivities, taxes, net present value,
potential recoveries, design parameters, operating costs, capital
costs, production data and economic potential; the timing and costs
for production decisions; permitting timelines and requirements;
exploration and planned exploration programs; and the Company's
general objectives and strategies.
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 potential impact of the COVID-19 on the Company's
business and operations, including: our ability to continue
operations; our ability to manage challenges presented by COVID-19;
the accounting treatment of COVID-19 related matters; Orvana's
ability to prevent and/or mitigate the impact of COVID-19 and other
infectious diseases at or near our mines; the general economic,
political and social impacts of the continuing conflict
between Russia and Ukraine, our ability to support the
sustainability of our 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; 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 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 successfully carry out
development plans at Taguas; sufficient funding to carry out
development plans at Taguas and to process the 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; the challenges presented by
COVID-19; fluctuating operational costs such as, but not limited
to, power supply costs; current and future environmental matters;
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. 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.
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SOURCE Orvana Minerals Corp.