ORVANA ACHIEVES FY2023 GUIDANCE WITH 57,250 GOLD EQUIVALENT OUNCES PRODUCED Takes step forward to finance the Oxides Stockpile Project in Bolivia by registering its subsidiary as a Bond Issuer in the Bolivian Stock Market
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For Immediate Release TSX:ORV
Date: October 16, 2023 #08-2023
ORVANA ACHIEVES FY2023 GUIDANCE WITH 57,250 GOLD
EQUIVALENT OUNCES PRODUCED
Takes step forward to finance the Oxides Stockpile Project in Bolivia by registering its
subsidiary as a Bond Issuer in the Bolivian Stock Market
TORONTO, ONTARIO, October 16, 2023 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) reports fourth quarter of fiscal year 2023 (“Q4 FY2023”) production and exploration results from
Spain and announces the registration of its subsidiary, Empresa Minera Paitití, S.A. (“EMIPA”), as a Bond
Issuer in the Bolivian stock market.
Highlights
• Q4 FY2023 production of 15, 567 gold equivalent ounces ( 12,427 gold ounces, 1.4 million copper
pounds and 38,861 silver ounces) (1)
• FY2023 total production of 57, 250 gold equivalent ounces ( 46,259 gold ounces, 4.5 million copper
pounds and 144,729 silver ounces)
• Q4 FY2023 drilling in Spain:
• 2,353 m of infill and brownfield drilling
• DDH23SB151: 12.35 m @ 17.48 g/t Au
• DDH23SB149: 7.15 m @ 5.04 g/t Au
• DDH23SB150: 4.10 m @ 4.29 g/t Au
• DDH23SB154: 2.35 m @ 4.84 g/t Au
• 600 m of greenfield drilling
Juan Gavidia, CEO of Orvana stated: “ We are particularly pleased to have delivered on our annual
production guidance by producing the highest quarterly gold equivalent ounce output of the year in Q4.
Throughout the fiscal year, the Orovalle team remained resilient facing operating challenges while
accomplishing key objectives and focusing on cost reductions”.
“We are continuing our effort in relation to the Oxides Stockpile Project (“OSP”) in Bolivia. The registration
of EMIPA as a bond issuer in Bolivia marks a key milestone in our firm commitment to finance the
expansion and re-start of the Don Mario Plant with locally sourced funding in Bolivia. Now that EMIPA is
eligible to issue bonds in the Bolivian stock market, our efforts will focus on obtaining acceptance of the
bond terms by the Bolivia’s financial regulator and then closing the bond offering. Construction of the OSP
is expected to commence once the project is fully funded through the bonds program and other forms of
financing, which remain subject to closing. The OSP is projected to operate for 35 months starting after
the 13-month construction period,” added Mr. Gavidia.
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FY2023 Production Results
Q4 FY2023 Q4 FY2022 FY2023 FY2022 FY 2023 Guidance
Ore milled (tones) 189,527 174,493 688,054 673,352
Gold equivalent (oz)(1) 15,567 15,344 57,250 57,658
Gold
Grade (g/t) 2.23 2.36 2.28 2.25
Recovery (%) 91.30 92.66 91.60 91.60
Production (oz) 12,427 12,272 46,259 44,698 46,000 - 51,000
Copper
Grade (%) 0.40 0.40 0.37 0.39
Recovery (%) 81.19 83.15 80.71 82.70
Production (K lbs) 1,356 1,267 4,518 4,808 4,000 - 4,400
Silver
Grade (g/t) 8.38 9.94 8.61 9.23
Recovery (%) 76.14 80.10 76.00 78.65
Production (oz) 38,861 44,670 144,729 157,207
(1) Gold equivalent ounces were calculated using the following average market prices:
Q4 FY2023: $1,928.61/oz Au, $23.57/oz Ag, $3.79/lb Cu
Q4 FY2022: $1,728.33/oz Au, $19.22/oz Ag, $3.51/lb Cu
FY2023: $1,880.95/oz Au, $22.88/oz Ag, $3.83/lb Cu
FY2022: $1,817.14/oz Au, $22.28/oz Ag, $4.19/lb Cu
Q4 FY2023 Drilling Update - Orovalle
Drilled Meters Infill Brownfield Greenfield TOTAL
El Valle Boinás
Boinás South (SB) 1,846 - - 1,846
Black Skarn (BS) - 506 - 506
Ortosa-Godán - - 600 600
TOTAL 1,846 506 600 2,953
Table 1. Orovalle Drilling Q4 FY2023
El Valle Boinás
• 1,846 m were drilled in Boinás South continuing with mineral definition in a garnet skarn between
200 and 250 levels and to the North. DDH 23SB151 intersected 12.35 m @ 17.48 g/t Au; DDH
23SB149 intersected 7.15 m @ 5.04 g/t Au, DDH 23SB150 intersected 4.10 m @ 4.29 g/t Au and
DDH 23SB154 intersected 2.35 m @ 4.84 g/t Au; defining mineralization over 60 meters in 215
level using 10*10 drilling grid (See Figure 1). Drilling program in Boinás South will continue during
the first quarter of fiscal year 2024 in order to define the mineralization continuity to the North.
• Black Skarn: 506 m were completed in brownfield drilling in order to define the mineralization
continuity around DDH 23V1914 (9.45 m @ 3.88 g/t Au – 0.9% Cu). Brownfield program continues
in progress.
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Figure 1. Boinás South plan view. Level 215
Ortosa-Godán
This Project is located three kilometers northwest of our Carlés mine, and within the same gold belt. The
exploration program focuses on two areas: Ortosa and Godán. In both cases, the mineral potential is in
relation with intrusives. Currently exploration drilling program is being executed in Godán.
10 drill holes (3,018 m) were completed in Godán between 1981 and 2011, intersecting skarn
mineralization in the contact between the intrusive and the Devonian sedimentary rocks. The orebody is
still open to the North and to the South following the regional structure, and at depth. 2,483 m were
completed in FY2023 up to date in 6 drill holes intersecting calcic skarn bands. 600 meters were completed
in Q4 FY2023, with the last drill hole still in progress. Results will be reported to the market in due course.
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Quality Control
Greenfield drill hole samples were sent to an external laboratory (ALS Laboratory) for analyses. Infill and
brownfield drill holes samples were analyzed in Orovalle's Laboratory.
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 aqua regia 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.
Oxides Stockpile Project – Bolivia
The OSP, consisting of a plant expansion to treat ore stockpiled in the Don Mario Operation from previous
years of mining activity, continues advancing. During the first quarter of fiscal 2023, EMIPA initiated the
process for the issuance of a $47 million Bond Program in the Bolivian stock market. In September 2023,
EMIPA received the approval of its registration as Bond Issuer and it is currently working to complete the
registration of the Bonds Program.
Conditional upon closing the Bonds Program and completing the rest of local funding, EMIPA expects the
OSP construction to start in the first quarter of fiscal 2024. OSP is projected to operate for 35 months,
starting after a 13-month construction period.
Financial Performance & FY2024 Guidance:
Q4 FY2023 financial highlights will be released with the year -end financials, expected mid- December,
2023.
FY2024 guidance will be released with FY2023 year-end financials.
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).
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For further information please contact:
Nuria Menéndez
Chief Financial Officer
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”, “are projected to” or “confident of” 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, Orvana’s ability to optimize
its assets to deliver shareholder value; estimates of future production (including without limitation, production guidance), 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; and future financial performance, including the ability to increase cash flow and profits; future financing requirements;
mine development plans; and the possibility of the conversion of inferred mineral resources to mineral reserves.
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 news release, 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 dis ruptions,
damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle, Don Mario and
Taguas 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 news release also contains certain "forward -looking statements" within the meaning of applicable securities
legislation, including, without limitation, references to the results of the Company’s exploration activities, including but not limited to,
drilling results and analyses, 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 econom ic
potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned exploration
programs; 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 global health and global economic conditions on the Company’s business and operations, including:
our ability to continue operations; and our ability to manage challenges presented by such conditions; the general economic, political
and social impacts of the continuing conflict between Russia and Ukraine, 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 c opper;
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; Orovalle’s ability to complete the permitting process of the
El Valle Tailings Storage Facility increasing the storage capacity; Orovalle’s ability to complete the stabilization project of the legacy
open pit wall; 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; EMIPA’s ability to complete the issuance
of the Bonds Program at Bolivia and any additional required financing to commence the OSP; 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; the
challenges presented by global health conditions; fluctuating operational costs such as, but not limited to, power supply costs; current
and future environmental matters; and the risks identified in the Company’s disclosures. This list is not exhaustive of the factors that
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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.