Orvana Reports Hoist Incident and Provides Company Update
TORONTO, ONTARIO -- (Marketwired) -- 06/17/13 -- Orvana Minerals Corp. (TSX: ORV) (the "Company") reports that in the early hours of June 16, 2013 an incident occurred at its El Valle-Boinas/Carles ("EVBC") gold-copper mine in northern Spain resulting in material damage to its hoist/shaft system at the Boinas Mine. A fully loaded skip overran the safety interlocks in the headframe, the hoisting rope broke, and the skip dropped to shaft bottom damaging the loading pocket. No injuries occurred and an investigation is underway. The Company is updating its production plans using ramp haulage at the Boinas Mine, which was the methodology in 2012 prior to the hoist system becoming operational. Operations at the Carles Mine continue unaffected.
"We are grateful that there were no injuries related to this incident and are reviewing what the impact will be to our operations at Boinas" stated Michael Winship, Interim President and CEO. The Company will provide updated information as it becomes known.
The Company also announces results for April and May at its EVBC operations, its Don Mario copper-gold-silver mine ("UMZ") in eastern Bolivia and provides an update on the Copperwood copper Project in Michigan, USA.
At EVBC, with strong mining and processing performance and higher than average grade, record production numbers for the month of May were achieved with 6,963 ounces of gold, 663,562 pounds of copper and 19,499 ounces of silver produced. Production for the month of April was 5,586 ounces of gold, 593,973 pounds of copper and 17,563 ounces of silver.
At UMZ, production for the month of May was 1,343 ounces of gold, 868,696 pounds of copper and 64,579 ounces of silver. April production was 1,062 ounces of gold, 846,028 pounds of copper and 77,020 ounces of silver. Optimization of the mining and blending of ore feed to the processing plant has resulted in improved recoveries.
The Company is also pleased to report receipt of the Safe Dams Permit Draft for the Copperwood Project. With the most significant permitting complete, optimization work continues further to the feasibility study, with a focus on additional metallurgical testing and mine design.
"Our excellent production numbers at our EVBC Mine during our third quarter to date highlight our commitment to continuing to ramp up production while initiating cost reductions" said Michael Winship, Interim President and CEO. "Progress continues to be made at our Copperwood Project and we continue to evaluate options to enhance the value of Copperwood to Orvana's shareholders"
About Orvana
Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com).
Forward Looking Disclaimer
Certain statements in this press release 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.
Forward-looking statements relate to, among other things, all aspects of the development of the Upper Mineralized Zone deposit ("the UMZ Mine") at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles Mine (the "EVBC Mine") in Spain and the Copperwood project (the "Copperwood Project") in Michigan and their operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting time lines; statements and information regarding future feasibility studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future operating costs; 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 Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana 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 the Company's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Annual 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 the UMZ Mine, the EVBC Mine and the Copperwood Project 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 UMZ Mine and/or the EVBC Mine or develop the Copperwood Project; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; 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 Annual Disclosures under the heading "Risks and Uncertainties". 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 Annual Disclosures for a description of additional risk factors.
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.
Contacts:
Orvana Minerals Corp.
Michael Winship
President and Chief Executive Officer
(416) 369-1629
Orvana Minerals Corp.
Daniella Dimitrov
Chief Financial Officer
(416) 369-1629
Orvana Minerals Corp.
Natalie Frame
Investor Relations
(289) 200-7640
ask_us@orvana.com
www.orvana.com