Orvana Reports Measured and Indicated Resources Increase of 50% for Pre-Feasibility Study at Copperwood, Michigan, USA
TORONTO, ONTARIO -- (Marketwire) -- 02/25/11 -- Orvana Minerals Corp. (TSX: ORV), through its wholly-owned subsidiary, Orvana Resources US Corp ('Orvana USA'), announced today an updated resource estimate for the Copperwood copper project, Upper Peninsula, Michigan, USA. This estimate includes the mineralization in the adjacent area, previously referred to as Copperwood S6, and will be the basis for the mine plan and design that will be included in the prefeasibility study expected to be released in June, 2011. The estimate is summarized in the table below.
Metric
Resource Short Tons Tonnes Copper,
Category (millions) (millions) Copper, % Silver, gpt million lbs
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Measured 25.7 23.2 1.71 4.7 877
Indicated 7.6 6.8 1.44 3.0 219
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TOTAL M & I 33.2 30.1 1.65 4.3 1,098
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Inferred 3.1 2.9 1.07 2.0 67
The resources assume a $2.50/lb copper price, $10/tonne mining cost, $10.80/ton processing cost, 83% copper recovery, $2.75/ton G&A, $5.63/ton sales cost, a minimum of 1.5 metres (5 feet) mining height, and a 0.8% cutoff. Marston & Marston,, Inc., St. Louis, MO, under the supervision of Michael B. Ward, a qualified person who is independent of Orvana for the purposes of NI 43-101, prepared the resource estimate, which effective date is January 25th,2011.
'We will now optimize the throughput for the prefeasibility study since this estimate increased M&I tonnage by over 50% and contained copper by about 40% as compared to that used for the September Preliminary Economic Assessment,' said Bill Williams, President of Orvana USA.
Marston & Marston of St. Louis, Missouri was retained to prepare the updated mine plan and design. KD Engineering of Tucson, Arizona will oversee the prefeasibility study.
As reported in the December 14, 2010 press release, the resource estimate of 25.01 million tonnes of 1.40% indicated (771 million pounds) and 36.14 million tonnes of inferred (1,033 million pounds) in the area of Copperwood, referred to as the Copperwood Satellites, will be evaluated after the mine is operating in order to assess expansion possibilities.
Copperwood is a sedimentary stratiform copper deposit hosted by the Precambrian Nonesuch Formation. The mineralized unit, or the copper-bearing sequence ('CBS'), lies at depths between about 30 metres (100 feet) and 265 metres (870 feet). The CBS is amenable to underground, room-and-pillar mining. The mineralization is analogous to the White Pine mine, located 30 kilometres (18 miles) to the east, where nearly 2 million tonnes of copper was produced between 1953 and 1996.
Mineral resources that are not mineral reserves do not have a demonstrated economic viability.
Marston & Marston, under the supervision of Michael B. Ward, who is an independent qualified person for the purposes of NI 43-101, prepared the resource estimate. A summary report will be made available on the Company's website, www.orvana.com, and on SEDAR, www.sedar.com, within 45 days.
About Orvana
Orvana Minerals is a gold producer with a strong balance sheet and is transforming itself into a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles ('EVBC') gold-copper project in northern Spain, which is expected to be in production early in 2011. Orvana owns and operates the Don Mario gold mine in Bolivia where the company is developing the fully permitted copper-gold-silver Upper Mineralized Zone ('UMZ') deposit, which is expected to commence initial production within weeks. In addition, Orvana is 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 ('UMZ') deposit at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles project in Spain and the Copperwood project in Michigan and their potential 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 production 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 Annual Information Form, 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 deposit, El Valle- Boinas/Carles and the Copperwood projects 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 develop the UMZ deposit, the Copperwood project or the El Valle-Boinas/Carles 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 Orvana's Management's Discussion and Analysis for the period ended September 30, 2009 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 Information Form 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.
Natalie Frame
Investor Relations
(289) 200-7640
Orvana Minerals Corp.
Dr. Bill Williams
Vice President, Corporate Development
(480) 522-7925
Orvana Minerals Corp.
Roland Horst
Chief Executive Officer
(416) 369-1629
ask_us@orvana.com
www.orvana.com