Orvana Provides Update from El Valle-Boinas/Carles Mine, Northern Spain, Including Drill Results of 10m of 10 g/t Gold and 3m of 14 g/t Au
TORONTO, ONTARIO -- (Marketwire) -- 03/24/11 -- Orvana Minerals Corp. (TSX: ORV) today is pleased to provide a development and exploration update as well as drill results from deposits at the El Valle-Boinas/Carles ('EVBC') gold-copper mine in northern Spain.
The drilling is a part of a planned program that commenced in September, 2010. The results reported herein are from A107, a subvertical structure, and its intersection with the San Martin subhorizontal skarn body as well as the Boinas Este skarn. Drilling in A107 and San Martin was for stope definition and dewatering purposes and in Boinas Este for upgrade of resources. Results are summarized in the table below.
True
Thick- Reco-
From, To, ness, Au, Ag, Cu, very,
Hole Zone metres metres metres gpt gpt % % Purpose
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less Stope
11A1071001 A107 6.10 27.30 20.35 6.40 than 5 0.52 77 definition
less
including 17.10 27.30 9.79 10.24 than 5 0.71 92
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less Stope
11A1071002 A107 10.20 14.10 3.32 14.13 than 5 0.58 83 definition
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11V1195H SM-A107 16.40 35.00 8.18 2.86 12.5 0.71 99 Dewatering
including 20.60 22.00 0.62 4.68 43.1 1.33 100
including 23.40 25.10 0.75 4.89 20.4 0.56 100
including 30.15 35.00 2.13 4.74 6.0 0.48 98
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11V1196H SM-A107 poor recovery Dewatering
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11V1197H SM-A107 59.80 68.80 5.76 16.22 32.8 1.82 25 Dewatering
including 65.80 67.30 0.96 66.70 89.30 3.55 24
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11V1198H SM-A107 61.50 98.45 7.39 5.44 21.6 1.48 93 Dewatering
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10BE1001 Boinas E. no intercepts Stepout
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10BE1002 Boinas E. no intercepts Stepout
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11BE1003 Boinas E. no intercepts Stepout
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11BE1004 Boinas E. 59.45 90.35 20.70 1.09 13.0 0.77 99 Stepout
including 59.45 61.95 1.68 2.32 32.7 1.67 100
including 64.70 67.70 2.01 1.99 12.4 0.40 100
including 85.30 90.40 3.42 1.09 130.3 1.64 100
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11BE1005 Boinas E. 16.40 28.10 5.85 6.41 4.5 0.02 99 Stepout
including 20.40 22.95 1.28 15.62 12.9 0.04 99
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11BE1006 Boinas E. 78.25 100.00 14.36 1.07 11.7 0.69 100 Stepout
including 87.80 89.40 1.06 1.47 63.6 3.70 99
including 97.00 100.00 1.98 3.31 11.7 0.79 100
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11BE1007 Boinas E. no intercepts Stepout
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11BE1008 Boinas E. 78.75 80.25 1.26 2.10 18.0 1.29 100 Stepout
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11BE1009 Boinas E. 1.60 4.80 0.90 9.25 28.2 0.52 91 Stepout
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11BE1010 Boinas E. 20.95 28.05 1.78 4.21 34.8 0.83 100 Stepout
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Note: True thicknesses were determined graphically by measuring the distance
approximately perpendicular to the contacts. No values were capped.
'These results not only increase our confidence in the existing reserve base in the A107 orebody, but have upgraded inferred resources at the Boinas Este skarn in key areas,' said Agne Ahlenius, Director General of Kinbauri Espana S.L., a wholly-owned subsidiary of Orvana Minerals Corp. 'The 3 rigs underground at EVBC will continue to drill strategic areas that will help us better define the mine plan as well as upgrade resources.'
Mine development has improved over the last few months as workers have become more familiar with ground conditions and more efficient working procedures have been implemented. Working faces have been established at the A107, San Martin, Black Skarn and Boinas Este orebodies as well as the Charnela subvertical structure. Development and mining continues at the Carles satellite deposit. Currently there are about 35,000 tonnes of ore from both mines that have been stockpiled near the plant. Mobilization of the raise boring equipment to start shaft sinking has started this week. First production is scheduled for May. Initial production is expected to be at a rate of 70,000 ounces gold per annum ('opa'), increasing to about 100,000 opa once the shaft is completed about one year from now.
In one month, exploration drilling is planned to start at the Godan prospect, which is located approximately two kilometres northwest of Carles. The target is Au-Cu skarn mineralization. Previous drilling along strike encountered both gold and moly mineralization in the intrusion adjacent to the targeted skarn.
More information related to the EVBC geology and mineralization can be found on the Company's website www.orvana.com.
QA/QC
Security measures were taken to ensure the integrity and validity of the mineralization and proximal rocks in the new drill core under the supervision of Santiago Gonzalez-Nistal, Chief Geologist, Kinbauri Espana S.L.U., a qualified person for the purposes of NI 43-101. The core was sampled based on lithologic and alteration considerations. Assays were completed by ALS Chemex, except for 11A1071001 and 11A1071002, which were analyzed at Kinbauri Espana SLU laboratory on site. The QA/QC protocol included internal and laboratory certified reference materials, blanks, duplicates and check assays. A 30-gram sample was analyzed by fire assay methods for gold and a conventional ICP-AES analysis was used for the analysis of 35 elements at ALS Chemex. Copper values exceeding 10,000 ppm and silver values exceeding 100 ppm were re-analyzed by atomic absorption using a 4-acid digestion. At the EVBC laboratory, a 30-gram sample was analyzed by fire assay methods for gold, and copper, silver, arsenic and antimony were analyzed by atomic absorption after an agua regia digestion. Pulps were sent to the ALS Chemex laboratory for check analyses.
Qualified Person
The technical information contained in this document was prepared under the supervision of Bill Williams, Ph.D., VP Corporate Development, a qualified person for the purposes of NI 43-101.
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 construction is complete on the leaching-precipitation-flotation ('LPF') plant to process its fully permitted copper-gold-silver Upper Mineralized Zone ('UMZ') deposit. Start-up and commissioning is in progress. 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.
Carlos Mirabal
COO and President
(416) 369-1629
Orvana Minerals Corp.
Roland Horst
Chief Executive Officer
(416) 369-1629
ask_us@orvana.com
www.orvana.com