Orvana Announces Resumption of Production at Its Spanish Operations and Provides Q2 FY2020 Production Report
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Date: April 13, 2020 #06-2020
ORVANA ANNOUNCES RESUMPTION OF PRODUCTION AT ITS SPANISH OPERATIONS AND
PROVIDES Q2 FY2020 PRODUCTION REPORT
Toronto, Ontario, April 13, 2020 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”) reports
that production at its Spanish operations have restarted after a temporary suspension, in compliance with the
Spanish Government’s Extended Lockown Order (as defined below) to contain the advancement of the COVID-
19 virus. The Company is also reporting its production results for the second quarter of fiscal 2020 (“Q2 2020”).
Resuming Production Activities
As announced in the Company’s news release on March 30, 2020, the Company temporarily reduced its normal
mining operations at OroValle to the minimum essential activities in accordance with the legislation passed by
the Spain’s Government on March 29 th, 2020 to contain the COVID -19 pandemic in Spain . (the “Extended
Lockdown Order”). However, during the Extended Lockdown Order period, the Company was able to gradually
re-start production activities at OroValle, after the Government passed clarifying rules allowing export industries
to resume production where such production was subject to international contractual commitments. The
Extended Lockdown Order expired on April 9, 2020.
The Company continues to implement comprehensive and proactive measures to respond to the COVID -19
pandemic; and continues to work closely with local governments and authorities to ensure proper protocols are
followed during the ongoing COVID -19 crisis. CEO Juan Gavidia stated, “Our team continues to prioritize and
focus on the health and safety of the workforce through the implementation of preventive protocols and strictly
following the health authority’s recommendations. The Company continues to assess potential COVID -19
impacts on operations and continues to adhere to directives from the central and local governments”.
Q2 FY2020 Highlights:
• Gold output, at 12,139 ounces.
• Gold-equivalent output, at 14,843 ounces.
• Brownfield and greenfield exploration continues at Orovalle to extend the mine life.
El Valle
• Quarterly 12,139 ounces gold production was 12% lower than previous quarter, due to lower throughput
and lower ore grade on weakened oxides/skarns blending.
• Gold head grade of 2.74 g/t declined, compared to 2.98 g/t reported in Q1 FY2020.
• Copper production was 1.4 million pounds, compared to 0.9 million pounds in Q1 FY2020.
• Mine exploration activities continue to focus on high -grade oxides areas to ensure optimum feed
blending for years to come.
• Carlés exploration drilling is in progress, with 1,500 meters drilled to date. Results will be provided in
due course, once the program is completed.
Don Mario
The Company’s Don Mario gold -silver property in Bolivia continues its care and maintenance phase, as
previously announced on November 8, 2019, while development and engineering of the oxides stockpile is
being advance. The small team of essential employees at Don Mario are following both Orvana and
governmental requirements relating to the containment of COVID-19.
Production Results
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Q2 2020 Q1 2020 Q2 2019
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total
Ore milled (tones) 148,339 - 148,339 155,662 64,875 220,537 170,435 188,606 359,041
Gold Equivalent (oz) 14,843 - 14,843 15,654 2,132 17,786 21,414 9,677 31,091
Gold
Grade (g/t) 2.74 - 2.74 2.98 1.07 2.42 3.49 1.68 2.54
Recovery (%) 93.0 - 93.0 92.2 84.4 92.2 92.7 94.0 93.2
Production (oz) 12,139 - 12,139 13,722 2,093 15,815 17,742 9,564 27,306
Copper
Grade (%) 0.52 - 0.52 0.36 - 0.36 0.49 - 0.49
Recovery (%) 83.1 - 83.1 71.5 - 71.5 78.1 - 78.1
Production (K lbs) 1,422 - 1,422 892 - 892 1,441 - 1,441
Fiscal 2020 Guidance
The Company continues to assess and identify opportunities to mitigate the potential effects of COVID -19 on
its day-to-day operations. The Company also continues to closely monitor the very fluid COVID -19 situation,
constantly updating scenarios, reviewing the latest guidance from the health authorities and engaging with local
authorities. Nonetheless, given the uncertainties with respect to future developments, including without
limitation: (i) duration, severity and scope of the COVID -19 pandemic; (ii) the effect of the COVID-19 situation
on the future availability of mining supply and services that support operations; (iii) the effect of the COVID -19
situation could have on the Company's future operations and financial condition; and (iv) the necessary
government responses to limiting the spread of COVID -19 spread, Orvana has decided to suspend its 2020
guidance until the Company is in a better position to quantify the impact. An update to the market on any further
developments as a result of the COVID-19 situation will be provided in mid-May or earlier.
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, and the Don Mario gold -silver
property in Bolivia, currently in care and maintenance. 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 made herein 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”, “intends” or “anticipates” 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.
The forward-looking statements herein relate to, among other things: 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 processing of the mineral stockpiles and the reprocessing of the tailings material; Orvana’s ability t o optimize its
assets to deliver shareholder value; the Company’s ability to optimize productivity at Don Mario and El Valle; any measures taken by the
Company to prevent and/or mitigate the impact of COVID -19 and other infectious diseases at or near the Company’s mines and support
the sustainability of its 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 ; estimates of future
production, 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; 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 the Company as of the date of such statements, are inherently subject to significant business, economic and competitive
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uncertainties and contingencies. The estimates and assumptions of the Company contained or incorporated by reference in this news
release, which may p rove 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 compl eted
fiscal year (the “Company Disclosures”) or as otherwise expressly incorporated herein by reference as well as: there being no signific ant
disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipme nt or
otherwise; permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent with the Company’s
current expectations; political developments in any jurisdiction in which the Company operates being consistent wit h its current
expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent w ith current
levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company’s curren t 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 r isks, uncertainties and factors include the affect of
COVID-19 and other infectious diseases on the Company’s operations, workforce and supply chain, 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 prod uction
estimates; variations in the grade of ore mined; variations in the cost of operati ons; 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 a nd 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 successfully implement a
sulphidization circuit and ancillary fa cilities to process the current oxides stockpiles at Don Mario ; 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 e conomic
conditions in the countries in which the Company operates; general economic conditions worldwide; and the risks identified in the
Company’s disclosures. 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 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.