Orvana Announces Production and Exploration Update at El Valle-Boinas/Carles Gold/Copper Mine, Northern Spain
TORONTO, ONTARIO -- (Marketwire) -- 06/28/11 -- Orvana Minerals Corp. (TSX: ORV) is pleased to announce that final approval has been received from the Ministry of the Environment for commercial production at its El Valle-Boinas/Carles ('EVBC') gold-copper mine in Northern Spain by Kinbauri Espana S.L.U. ('Kinbauri'), a wholly-owned subsidiary of Orvana.
EVBC initiated the start-up and commissioning of its mill May 31, 2011, and currently over 450 tonnes of copper-gold-silver concentrate have been produced with the first shipments trucked to port. The first revenues from the concentrate sales and dore is expected in July 2011.
EVBC is initially producing at 70% capacity, or about 1400 tonnes/day and production will increase to around 1900 tonnes/day when the shaft is completed in early 2012. Initial production will be primarily from lower grade skarn-type ore and lesser amounts from higher-grade oxidized ore zones. Consequently, during the initial production stages, head grades will be lower than in the future.
Shaft construction is progressing well, with over 170 metres of the 440-metre deep shaft reamed to a 5.5 metre diameter. With construction of shaft surface facilities expected to be started in August 2011, the shaft should be fully operational by March 31, 2012.
The approval from the Ministry of the Environment is subject to a final inspection and posting of a 5 million Euro bond within the next several weeks, and an additional 5 million Euro bond in one year from now.
Orvana is also pleased to provide drill results and an exploration update from deposits at EVBC.
The drilling is a part of a planned program that commenced in September, 2010; nearly 10,000 metres of drilling have been completed. The results reported herein are from A107, a subvertical structure, as well as the Boinas Este, Black Skarn, and Carles skarn bodies. Drilling in A107 and Carles was for stope definition and in the Boinas and Black Skarn deposits for resource delineation. Selected results are summarized in the table below.
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True
From, To, Thickness, Au, Ag,
Hole Zone metres metres metres gpt gpt
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11A1071003 A107 10.00 11.80 1.21 2.13 less than 5
45.15 49.00 2.58 17.68 less than 5
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11A1071004 A107 1.75 3.50 1.44 11.04 less than 5
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11A1071006 A107 63.50 66.70 2.02 9.07 less than 1
including 63.50 65.00 0.95 16.71 less than 1
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11BE1011 Boinas E. 3.05 5.40 2.09 2.08 15.1
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11BE1012 Boinas E. 7.90 22.10 3.55 2.90 24.4
58.60 65.00 1.60 2.79 23.0
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11BE1013 Boinas E. 7.80 13.60 3.02 3.71 29.7
21.15 26.70 2.89 2.08 20.2
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11BE1014 Boinas E. 5.80 13.00 5.98 2.52 19.1
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11BE1015 Boinas E. 6.80 8.40 0.62 3.66 16.4
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11BE1016 Boinas E. 0.00 4.30 1.29 5.50 36.5
10.7 15.9 1.56 2.66 16.8
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BE111018 Boinas E. 41.35 45.10 3.53 2.24 11.0
48.90 50.30 1.32 3.71 34.7
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11V1199H Bl. Skarn 136.70 138.70 1.76 4.61 21.9
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11V1201 Bl. Skarn 179.10 181.95 2.39 3.74 0.9
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11V1202 Bl. Skarn 201.85 209.95 7.45 4.95 28.0
including 201.85 202.40 0.51 25.67 142.5
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11BE1019 Boinas E. 21.85 25.25 3.23 4.33 42.7
45.70 49.80 3.65 2.96 25.5
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11BE1020 Boinas E. 34.70 45.45 9.14 2.00 20.8
72.00 74.30 1.96 12.80 100.9
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11BE1021 Boinas E. 105.20 119.25 12.93 2.38 22.3
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11BE1022 Boinas E. 114.85 119.00 4.07 3.58 21.2
137.80 140.80 2.94 4.56 10.2
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11BE1023 Boinas E. 50.35 55.00 4.32 9.79 13.9
including 53.65 55.00 1.26 30.30 21.8
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11BE1024 Boinas E. 27.15 31.80 4.42 4.53 34.1
45.50 48.65 2.99 3.53 31.1
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11CE1012 Carles 75.00 77.40 1.39 3.99 7.9
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11CN1025 Carles 82.40 85.55 1.67 3.62 13.8
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11CN1027 Carles 100.70 103.85 1.39 4.08 10.3
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11CN1028 Carles 59.00 68.00 8.82 3.68 6.7
including 61.00 62.30 1.27 8.85 9.5
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11CN1029 Carles 114.00 118.80 2.06 7.03 23.0
including 116.30 117.70 0.60 11.70 42.4
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Cu, Recovery, Resource
Hole % % Purpose Classification
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11A1071003 0.09 97 Stope definition Indicated
0.13 100
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11A1071004 0.00 100 Stope definition Indicated
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11A1071006 0.02 99 Stope definition Indicated
including 0.01 100
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11BE1011 0.49 100 Stepout none
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11BE1012 1.36 99 Stepout none
0.60 99
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11BE1013 0.70 100 Stepout none
0.78 100
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11BE1014 0.55 100 Stepout none
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11BE1015 0.38 96 Stope Definition Infered
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11BE1016 1.17 90 Stepout none
0.58 84
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BE111018 0.45 99 Stepout none
0.96 100
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11V1199H 0.96 99 Dewatering Indicated
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11V1201 0.01 89 Stepout none
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11V1202 0.77 99 Stepout
including 1.66 100
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11BE1019 1.83 100 Stepout none
0.72 100
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11BE1020 0.66 98 Stepout none
1.45 99
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11BE1021 0.71 99 Stepout none
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11BE1022 0.28 100 Stepout none
0.23 99
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11BE1023 0.38 100 Stepout none
including 0.50 92
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11BE1024 0.82 98 Stepout none
1.41 95
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11CE1012 0.72 99 Stepout none
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11CN1025 1.30 90 Stope Definition Indicated
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11CN1027 0.74 100 Stope Definition Indicated
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11CN1028 0.40 99 Stope Definition Indicated
including 0.24 100
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11CN1029 1.00 99 Stope Definition Indicated
including 1.30 99
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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 added to our resource inventory,' said Agne Ahlenius, Director General of Kinbauri Espana S.L.U., 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.'
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 samples from 11A1071001 and 1002, 11BE1019, 1021, 1022, 1023, and 1024, and 11V1202, 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 is transforming itself into a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles gold-copper project in northern Spain, now in production. Orvana also owns the Don Mario Mine in Bolivia where a newly completed leaching-precipitation-flotation plant is processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its major 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/Carle's 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/Carle's 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.
Roland Horst
Chief Executive Officer
(416) 369-1629
Orvana Minerals Corp.
Carlos Mirabal
COO and President
(416) 369-1629
Orvana Minerals Corp.
Dr. Bill Williams
Vice President, Corporate Development
(480) 522-7925
ask_us@orvana.com
www.orvana.com
Kinbauri Espana S.L.U.
Agne Ahlenius
Director General