Orvana Announces Record Year End GOLD Production Completes Successful TWO-Year RAMP-up & Provides 2019 Production Guidance
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For Immediate Release TSX:ORV
Date: October 17, 2018 #11-2018
ORVANA ANNOUNCES RECORD YEAR END GOLD PRODUCTION
COMPLETES SUCCESSFUL TWO-YEAR RAMP-UP &
PROVIDES 2019 PRODUCTION GUIDANCE
TORONTO, ONTARIO, October 17, 2018 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) is pleased to provide production results for the fourth quarter of fiscal 2018 (“Q4 2018”) and full
fiscal year 2018 (“FY 2018”) for its El Valle Mine (“El Valle”) in Spain and Don Mario Mine (“Don Mario”) in
Bolivia.
Production Highlights
Record consolidated annual gold production of 103,384 ounces, an increase of 14% compared
to YE 2017 (90,292 ounces) and a 57% increase compared to YE 2016 (65,784 ounces);
Consolidated gold equivalent production of 126,017 ounces;
Record consolidated quarter gold production of 28,661 ounces, an increase of 7% compared
to Q3 2018;
FY 2019 production guidance of 100,000 to 110, 000 ounces of gold, aligns with successful
completion of two-year ramp-up effort;
Orvana will continue to drive productivity improvements and reduction of unitary costs at both
sites through the continued transition of higher grade oxides at El Valle and the opening up of
new areas at Don Mario.
Juan Gavidia, CEO of Orvana Minerals stated, “We are pleased to have produced above 100,000 ounces of
gold in FY 2018. While achieving record gold producti on, we continued to maintain our high safety and
environmental policy standards. Our pr oduction success caps a two-year effort to aggressively improve
operations at El Valle and Don Mario.” Mr. Gavidia further stated, “We are also firmly committed to lowering
unitary costs and maximizing free cash flow. We antici pate 2019 to be key to our expanding exploration and
business development programs.”
FY 2018 Production – El Valle Mine
Gold production of 58,259 ounces or an increase of 13% compared to 51,546 ounces in 2017;
Copper production was 5.1 million pounds, compared to 5.5 million pounds in 2017;
Higher grade drifts (oxides ore) increased by 82%, to 6,861 meters during FY 2018, contributing to
successful production results for the year;
Higher-grade oxides production was 37% of mill ore feed, compared to 22% in 2017;
Q4 gold grade of 3.06 g/t was below Q3’s 3.36 g/t, as per planned mining schedule.
FY 2018 Production – Don Mario Mine
Gold production of 45,125 ounces, or an increase of 16% compared to 38,746 ounces in FY 2017;
Gold recovery of 90.2% largely surpassed targeted go ld recovery of 80% for the first fiscal year after
CIL circuit re-commissioning;
There was no copper production in Q4 2018 as the flotation circuit was shut down at the end of Q2
2018.
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Production Results
Q4 2018 Q3 2018 FY 2018 FY 2018 FY 2017 FY 2016
El Valle
Don
Mario Total El Valle
Don
Mario Total Total
Revised
Guidance Total Total
Operating Performance
Ore milled (tonnes) (dmt) 170,927 184,094 355,021 169,958 176,400 346,358 1,342,464 1,375,738 1,258,190
Gold Equivalent
Production (oz) 18,970 13,251 32,221 21, 357 9,968 31,525 126,017 124,039 98,960
Gold
Grade (g/t) 3.06 2.41 2.72 3.36 1.90 2.62 2.61
Recovery (%) 92.2 92.2 92.2 91.8 92.4 92.1 91.4
Production (oz) 15,490 13,171 28,661 16,845 9,916 26,761 103,384 100,000 – 110,000 90,292 65,784
Copper
Grade (%) 0.44 0.44 0.51 0.51 0.53
Recovery (%) 77.4 77.4 81.6 81.6 73.7
Production (‘000 lbs) 1,291 1,291 1,575 1,575 8, 234 8,000 – 8,400 13,893 14,735
Financial Performance
COC and AISC guidance as well as other financial high lights will be released with the year end financials,
expected early December 2018.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana’s operating assets consist of the producing El Valle
and Carlés gold-copper-silver mines in northern S pain and the producing Don Mario gold mine in Bolivia.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Joanne Jobin
Investor Relations Officer
T: 647 964 0292
Cautionary Statements - Forward-Looking Information
Certain statements in this information constitute forward-look ing 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, projec tions, objectives, assumptions, potentials, futu re events or performance (often, but not al ways, 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 fo rward-looking
statements.
The forward-looking statements herein relate to, among other th ings, Orvana’s ability to achieve improvement in free cash flow; 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 in the case of Don Mario, the completion of the major ta ilings storage facility expansion, t he mining of the Cerro Felix dep osit, the
processing of the mineral stockpiles and the reprocessing of the tailings material; Orvana’s ability to optimize its assets to deliver
shareholder value; the Company’s ability to optimize productivity at Don Mario and El Valle; estimates of future production, op erating
costs and capital expenditures; mineral res ource and reserve estimates; statements and information regarding future feasibility studies
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and their results; future transactions; fu ture metal prices; the ability to achiev e additional growth and geographic diversific ation; 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 tha t, while considered reasonable b y
the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncerta inties
and contingencies. The estimates and assumptions of the Company cont ained or incorporated by reference in this information, whi ch
may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in Orvana’s most recen tly 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 disrup tions
affecting operations, whether due to labour disruptions, supply disruptions, power di sruptions, damage to equipment or otherwis e;
permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent with the Company’s current
expectations; political developments in any ju risdiction in which the Company operates being consistent with its current expect ations;
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 an ticipated
events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include fl uctuations
in the price of gold, silver and copper; the need to recalculat e 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 o f qualified
personnel; the Company’s ability to obtain and maintain all nece ssary 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 El Valle and/or Don Mario and/or ability to resume long-term operations at the Carlés Mine; 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 t hat 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 i n political,
social or economic conditions in the count ries in which the Company operates; general economic conditions worldwide; and the ri sks
identified in the Company’s disclosures. This list is not exhaustive of the factors that may affect any of the Company’s forwar d-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 in this information with respect to the anticipated develop ment and exploration of the Comp any’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, belie fs 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, projec tions, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-lo oking
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.
Cautionary Notes to Investors – Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requir ements, all mineral reserve and mineral resource estimates o f the
Company disclosed in this AIF have been prepared in accordance wi th NI 43-101 (as defined below), classified in accordance with
Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines"
(the "CIM Guidelines").
Pursuant to the CIM Guidelines, mineral re sources have a higher degree of uncertainty t han mineral reserves as to their existen ce as
well as their economic and legal feasibilit y. Inferred mineral resources, when compared with measured or indicated mineral reso urces,
have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded
to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may
not form the basis of any economic analysis, including any feas ibility study. Accordingly, readers are cautioned not to assume that all or
any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or leg ally mineable
or recovered.