TORONTO, Jan. 18, 2022 /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 2022 ("Q1 FY2022), being the period ended
December 31, 2021.
Highlights
- Q1 2022 production of 15,921 gold equivalent ounces – a 32%
sequential increase
- 7,022 m of infill and brownfield
drilling in Orovalle, Spain
- 1,415 m of greenfield drilling in
Orovalle, Spain
- 20.66 g/t Au over 2.9 meters intercepted in Ortosa-Godán,
Orovalle, Spain
Juan Gavidia, CEO of Orvana
stated: "We are encouraged by the most recent intercepts in the
west zone of Ortosa-Godán, which confirm the presence of a
mineralized structure in an area previously undrilled. The Company
has made a strong commitment to organic growth in Orovalle through
brownfield and greenfield exploration, and results such as the ones
released today continue to demonstrate that this investment is
paying off with the potential to further grow our mineral
resources".
Q1 2022 Production Results
- Production of 15,921 gold equivalent ounces, a 32% increase
from Q4 2021
- 11,731 gold ounces produced, on track to meet fiscal year 2022
guidance of 48,000 - 53,000 Oz.
- 1.5 million copper pounds produced, on track to meet fiscal
year 2022 guidance of 5,800 – 6,500 Oz.
|
|
Q1
FY2022
|
Q4
FY2021
|
Q1
FY2021
|
FY 2022
Guidance
|
|
|
|
|
|
|
Ore milled
(tones)
|
|
176,288
|
134,626
|
180,380
|
|
Gold Equivalent
(oz)
|
|
15,921
|
12,042
|
18,398
|
|
Gold
|
|
|
|
|
|
Grade (g/t)
|
|
2.27
|
2.18
|
2.60
|
|
Recovery (%)
|
|
91.1
|
91.3
|
92.6
|
|
Production (oz)
|
|
11,731
|
8,621
|
14,127
|
48,000 -
53,000
|
Copper
|
|
|
|
|
|
Grade (%)
|
|
0.45
|
0.52
|
0.63
|
|
Recovery (%)
|
|
83.7
|
80.9
|
81.6
|
|
Production (K
lbs)
|
|
1,451
|
1,253
|
2,044
|
5,800 -
6,500
|
Q1 FY2022 Drilling Update
Drilling
Summary
|
Infill
(m)
|
Brownfield (m)
|
Greenfield
(m)
|
TOTAL (m)
|
Ortosa-Godán
|
-
|
-
|
1,031
|
1,031
|
Lidia
|
-
|
-
|
384
|
384
|
El Valle
Boinás
|
|
|
|
|
Boinas South (SB)
|
2,484
|
-
|
-
|
2,484
|
Boinas East (BE)
|
1,486
|
-
|
-
|
1,486
|
Breccia East (BX)
|
1,117
|
-
|
-
|
1,117
|
A208 East (E2)
|
-
|
492
|
-
|
492
|
Carles West
(CW)
|
1,444
|
-
|
-
|
1,444
|
TOTAL
|
6,530
|
492
|
1,415
|
8,437
|
Table 1. Orovalle Drilling Q1 FY2022
Ortosa-Godán
Ortosa-Godán Project is located close to Carlés mine, three
kilometers northwest and into the same gold belt. Different
exploration works were carried out before 2011 including airborne
geophysics, geochemistry, rock sampling and drill holes
intersecting skarn mineralization (see Figure 1)
Orovalle started an exploration drilling program at the end of
August 2021 in order to define the
skarn continuity and check the oxide mineralization related to
N40ºE structures. Six drill holes totaling 2,072 m were completed in this Project up to
date. The first four drill holes were focused on defining skarn
mineralization at depth and in N-S direction. Calcic skarn with
sulfides was intersected in several bands. Intercepts are shown in
table below.
The last two drill holes were planned to intersect
mineralization related with N40ºE structures. Drill hole 21ORW05
intercepted 2.9 mts with 20.66 g/t Au in a undrilled area.
21ORW06 was completed to the South from previous one and sample
assays are pending (see Figure 2)
The drilling campaign will continue in the second quarter of
fiscal year 2022 targeting the establishment of continuity of the
mineralization intersected in 21ORW05.
Intercepts
Zone
|
DDH
|
From
(m)
|
To
(m)
|
Thick
(m)
|
Au(gpt)
|
|
|
|
|
|
|
ORT W
|
21ORW01
|
256.75
|
259.65
|
2.90
|
2.15
|
ORT W
|
21ORW02
|
318.40
|
320.35
|
1.95
|
0.52
|
ORT W
|
21ORW03
|
59.20
|
59.85
|
0.65
|
2.60
|
ORT W
|
21ORW03
|
246.55
|
248.00
|
1.45
|
1.59
|
ORT W
|
21ORW03
|
357.00
|
357.60
|
0.60
|
0.87
|
ORT W
|
21ORW04
|
No intercepts Au
>0.5 g/t
|
ORT W
|
21ORW05
|
256.50
|
259.40
|
2.90
|
20.66
|
ORT W
|
21ORW05
|
266.00
|
268.00
|
2.00
|
0.62
|
ORT W
|
21ORW05
|
324.10
|
325.10
|
1.00
|
0.76
|
ORT W
|
21ORW06
|
Pending
results
|
|
|
|
|
|
|
* Not true
widths
|
|
|
|
|
Quality Control
21OWR01 and 21ORW02 ddh samples were analyzed by the Orovalle
laboratory, which is ISO 9001:2015 certified. Drill holes 21ORW03,
21ORW04, 21ORW05 and 21OWR06 samples were sent to an external
laboratory (ALS Laboratory) for analyses.
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.
Lidia
Orovalle's Lidia Project is located in Navelgas Gold Belt.
The program started in fiscal 2021, with a total 1,017
drilled in the year. Second phase of program started in
December 2021, with 384 meters
drilled in the month, and will be completed in the second quarter
of fiscal 2022. Information is under evaluation and results will be
provided in due course once completed the second phase.
El Valle Boinás
Orovalle's main operation Q1 FY2022 drilling program continued
with its focus on upgrading Inferred resources, with a total of
5,086 m of infill drilling. Further
492 m of brownfield drilling were
completed to define the continuity of the recently discovered E2
structure to the North. The drilling program for next months will
be in line with this quarter.
Carlés
1,444 meters were completed during de first quarter of fiscal
2022. It is expected to complete the infill program in the second
quarter.
Financial Performance
Q1 FY2022 financials will be released mid-February, 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" 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 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,
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;
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, 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 presentation also contains
certain "forward-looking statements" within the meaning of
applicable securities legislation, including, without limitation,
statements with respect to the results of the preliminary economic
assessment, including but not limited to the 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; the potential for
discovery of additional mineral resources; timing for completion of
a feasibility study; timing for first gold production at Taguas;
processing the stockpile at El Valle in connection with the metal
production catch-up program; identifying additional resources
beyond the replenishment of annual depletion rates at El Valle for
the extension of mine life; issuing an expanded resource PEA for
Taguas in a timely manner; completion of the infill drilling
program at Taguas; making a decision on the oxides stockpile at Don
Mario in a timely manner; 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; 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;
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/orvana-reports-solid-q1-fy2022-production-results-and-announces-2-9-meters--20-66-gt-au-intercept-at-greenfield-project-in-orovalle-spain-301462624.html
SOURCE Orvana Minerals Corp.