Orvana Announces Taguas Project Phase I Infill & Growth Drilling Results
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Date: June 6, 2022 #10-2022
ORVANA ANNOUNCES TAGUAS PROJECT PHASE I INFILL & GROWTH DRILLING RESULTS
TORONTO, ONTARIO, June 6, 2022 – Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”)
is pleased to announce the recent completion of Phas e I of its infill and resour ce-growth drilling campaign
targeting the Oxides Horizon (“Oxides”) of its 100%-owned Taguas Project in San Juan Province, Argentina. A
five-month final Phase II is expected to start in November 2022.
Phase I consisted of 6,482.6 meters in 41 diamond drill holes (DDH’s), with over 4,900 assa y samples. The
main goal of the program was to upgrade Cerros Tagua s Oxides Sector to Measured & Indicated Resource
categories, as those terms are defined in National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”) while moderately expanding the ore tonnage previously reported in the Company’s NI
43-101 compliant Taguas preliminary economic asse ssment report dated December 29, 2021 and filed on
SEDAR on February 11, 2022 (the “Taguas 2021 PEA”). The second goal was to incorporate satellite Cerro
Campamento Sector into the Oxides scope, going forward.
“The DDH’s average drilling results an d key intercepts continue to su pport Orvana’s Oxides development
strategy for our Taguas multimillion-ounce Au-Ag Oxides-Sulfides Project. Also, the decision to incorporate the
satellite higher-grade Cerro Campamento Sector will be key to improving proj ect economics. We are excited,
and eagerly awaiting, resource re-modeling by July 2022. Completion of Phase II will be the foundation of the
43-101 Pre-Feasibility Study for our Oxides Project in Taguas”, said Orvana CEO Juan Gavidia.
Highlights:
Phase I infill and growth drilling program on Tagu as Oxides completed ( 41 holes totaling 6,482.6
meters).
Mineralization encountered in all 41 holes.
Grades generally equaling-improving average previous resource grades included in the Taguas 2021
PEA.
Best drilling results included:
o TADD244: 61.2 meters @ 0.82 g/t Au and 16.59 g/t Ag
o TADD265: 72.8 meters @ 0.46 g/t Au and 6.04 g/t Ag
o TADD274: 27.7 meters @ 2.51 g/t Au and 10.61 g/t Ag
Potential to reduce strip ratio in next open pit re-design.
Phase II infill and growth drilling pr ogram expected to start in November 2022: additional 11,000 meters
in Cerros Taguas Sector and 3,000 meters in Cerro Campamento Sector.
Drilling Program Overview:
Phase I was conducted between late-December 2021 and mid-May 2022. Out of the total 41 drill holes drilled
in Phase I, assay results from the first 12 holes (TAD D237 to TADD248) were outlined in Orvana’s March 31,
2022 news release. The assay results for the subsequ ent 29 holes are summarized in Table 1 and Table 2 of
this news release.
Phases I & II results to be used for Taguas Oxides prefeasibility studies purposes.
Cerros Taguas
- 34 core holes totaling 5,748.6 meters drilled.
- Targets:
Oxides mineralization upgrade to Measured and Indicated categories.
Resource growth with oxides extensions to the northeast and northwest.
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Resource growth in areas within the pi t proposed in the Tagua s 2021 PEA that were
outside the block model due to lack of drilling (e.g., TADD246 and TADD249 in Figure
1).
- Table 1, below, shows promising results, identif ying thicker high-grade structures than previously
modeled:
27.7 meters @ 2.51 g/t Au and 10.61 g/t Ag
14.0 meters @ 1.38 g/t Au and 10.42 g/t Ag
72.8 meters @ 0.46 g/t Au and 6.04 g/t Ag
- Under-drilled area inside Taguas 2021 PEA open pit m odel is now preliminarily showing a high
possibility to improve mining strip ratio.
- High grade structures like the ones intercepted in TADD258 leave open the possibility of increasing
resources towards the northeast.
- Phase II (additional 11,000 meters) is expected to be completed by March 2023.
Figure 1. Summary Map of 2022 Drilling Campaign in Cerros Taguas, with selected intercepts
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Cerro Campamento
- 7 core holes totaling 734 meters drilled.
- Focused on defining the shallower part of high gold grade oxides, which can potentially be mined
by open pit.
- First interpretations show the existence of a low-grade envelope around high-grade veins.
Additional drilling is necessary to continue delineating shallower parts of high gold grade veins; with
the aim for open pit mining modeling.
- Best intercepts shown in Table 2. Highlights:
7.0 meters @ 3.07 g/t Au and 31.03 g/t Ag
23.5 meters @ 0.72 g/t Au and 31.51 g/t Ag
11.3 meters @ 0.59 g/t Au and 24.06 g/t Ag
- Phase II (additional 3,000 meters) is expected to be completed by March 2023.
Figure 2. Summary Map of 2022 Drilling Campaign in Cerro Campamento, with selected intercepts
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Quality Assurance-Quality Control (“QA/QC”)
Samples were prepared and analyzed by Alex Stewart International Argentina SA Laboratory in Mendoza. This
laboratory is ISO 9001; IS O 17025, and ISO 14001 certified. Sample s were prepared following the P-5
laboratory preparation code: the samples were dried, crushed to passing 10 mesh (>80%), riffle split of 1kg
sample and pulverized to 106 microns (>95%). The assays included 50 g Au by fire assay (FA), AA finish and
39 element package with aqua regia dilution and ICP OES finish. Over limits for Au and Ag were run in 50 g
sample by FA and gravimetric method finish. Coarse and pulp rejects were returned and are stored in the
Piuquenes storage facilities.
The reported work has been completed using i ndustry standard procedures, including a quality
assurance/quality control (“QA/QC”) program consisting of the insertion of quarter core field duplicates, coarse
duplicates split after laboratory crushing, pulp duplicates split after laboratory pulveri zation, coarse analytical
blank samples and 2 different CRMs inserted in batches of roughly 50 samples.
The exploration update was pr epared under the supervision of Raúl Al varez Cifuentes, a qualified person for
the purposes of NI 43-101 and an employee of the company.
Table 1 – Intercepts from Cerros Taguas
The assay results from the first 12 holes (TADD237 to TADD248) were outlined in the news release dated
March 31, 2022. The assay results for the subsequent 29 holes are summarized below:
DDH FROM TO Downhole
length
True
width* Au (g/t) Ag (g/t) Cu (%) Ore Type
TADD249 18.20 40.30 22.10 14.37 0.28 10.77 0.02 Oxide
TADD249 111.50 114.20 2.70 1.76 0.25 22.15 0.03 Oxide
TADD250 59.00 67.00 8.00 5.20 0.26 7.12 0.10 Oxide
TADD250 157.00 163.00 6.00 3.90 1.61 122.43 0.44 Sulfide
TADD251 8.00 10.00 2.00 1.30 0.25 2.30 <0.01 Oxide
TADD251 21.00 34.20 13.20 8.58 0.23 2.27 0.01 Oxide
TADD251 61.00 62.00 1.00 0.65 0.77 1.50 <0.01 Oxide
TADD251 82.40 135.00 52.60 34.19 0.44 4.31 <0.01 Oxide
TADD251 143.40 148.80 5.40 3.51 0.32 6.20 0.02 Oxide
TADD251 158.10 160.30 2.20 1.43 0.27 1.20 0.01 Oxide
TADD252 43.50 48.50 5.00 3.25 0.21 13.87 <0.01 Oxide
TADD252 81.10 83.60 2.50 1.63 0.21 6.32 0.01 Oxide
TADD252 103.60 107.15 3.55 2.31 0.31 6.94 <0.01 Oxide
TADD252 111.50 113.70 2.20 1.43 0.27 6.46 <0.01 Oxide
TADD252 132.55 135.10 2.55 1.66 0.61 12.26 <0.01 Oxide
TADD252 138.90 144.00 5.10 3.32 1.54 26.52 0.11 Sulfide
TADD253 18.00 20.00 2.00 1.30 0.24 7.10 <0.01 Oxide
TADD253 24.95 57.90 32.95 21.42 0.56 5.11 <0.01 Oxide
TADD253 81.45 101.20 19.75 12.84 0.23 6.89 0.03 Oxide
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TADD254 8.00 24.40 16.40 10.66 0.30 11.58 <0.01 Oxide
TADD254 34.20 37.35 3.15 2.05 0.35 5.40 <0.01 Oxide
TADD254 68.90 75.20 6.30 4.10 0.29 7.63 0.04 Oxide
TADD254 92.20 128.00 35.80 23.27 0.39 3.51 <0.01 Oxide
TADD254 132.60 134.45 1.85 1.20 0.68 12.50 <0.01 Oxide
TADD254 146.40 149.00 2.60 1.69 0.67 29.58 0.66 Sulfide
TADD254 162.45 185.00 22.55 14.66 0.49 15.03 0.19 Sulfide
TADD256 2.00 6.00 4.00 2.60 0.25 10.05 <0.01 Oxide
TADD256 42.80 44.50 1.70 1.11 1.00 71.10 0.01 Oxide
TADD258 77.45 79.30 1.85 1.20 0.42 21.40 0.01 Oxide
TADD258 121.80 124.80 3.00 1.95 24.99 29.20 0.02 Oxide
TADD259 0.00 2.80 2.80 1.82 0.38 3.20 <0.01 Oxide
TADD259 47.30 50.30 3.00 1.95 0.21 9.59 <0.01 Oxide
TADD259 54.00 55.20 1.20 0.78 0.41 24.30 0.02 Oxide
TADD259 61.20 64.60 3.40 2.21 0.40 11.74 <0.01 Oxide
TADD259 106.00 107.80 1.80 1.17 0.77 47.80 0.01 Oxide
TADD261 12.10 15.70 3.60 2.34 0.33 12.70 0.02 Oxide
TADD261 51.10 53.10 2.00 1.30 0.41 18.55 0.01 Oxide
TADD261 56.90 64.30 7.40 4.81 0.59 8.51 <0.01 Oxide
TADD262 0.00 2.00 2.00 1.30 0.55 7.90 <0.01 Oxide
TADD262 38.20 70.20 32.00 20.80 0.56 10.74 <0.01 Oxide
including 40.20 44.20 4.00 2.60 2.82 39.90 0.01 Oxide
TADD262 78.20 80.20 2.00 1.30 0.94 6.20 <0.01 Oxide
TADD262 86.20 89.00 2.80 1.82 0.31 13.00 0.02 Oxide
TADD262 98.00 100.00 2.00 1.30 0.30 11.50 <0.01 Oxide
TADD262 125.60 127.60 2.00 1.30 0.34 14.00 <0.01 Oxide
TADD262 183.20 184.70 1.50 0.98 2.49 35.00 0.04 Oxide
TADD262 230.50 233.00 2.50 1.63 0.41 5.24 0.01 Oxide
TADD262 244.00 251.10 7.10 4.62 0.22 6.31 0.01 Oxide
TADD262 258.00 262.00 4.00 2.60 0.46 8.40 <0.01 Oxide
TADD263 20.40 24.10 3.70 2.41 0.23 13.82 <0.01 Oxide
TADD263 28.10 36.00 7.90 5.14 0.25 9.60 0.01 Oxide
TADD263 55.10 78.90 23.80 15.47 0.32 5.12 0.06 Oxide
TADD263 89.00 120.00 31.00 20.15 0.23 5.47 0.12 Sulfide
TADD263 126.00 132.00 6.00 3.90 0.18 10.30 0.32 Sulfide
TADD265 14.00 23.00 9.00 5.85 0.21 6.07 174.00 Oxide
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TADD265 41.00 153.00 112.00 72.80 0.46 6.04 <0.01 Oxide
Including 149.80 151.80 2.00 1.30 11.75 70.30 0.04 Oxide
TADD266 0.00 60.90 60.90 39.59 0.37 9.27 <0.01 Oxide
TADD266 66.80 143.60 76.80 49.92 0.30 15.03 0.03 Oxide
TADD267 141.00 145.00 4.00 2.60 0.32 5.50 0.01 Oxide
TADD267 166.30 169.00 2.70 1.76 2.59 51.93 1.18 Sulfide
TADD268 24.00 30.00 6.00 3.90 0.28 12.73 36.00 Oxide
TADD268 37.40 43.00 5.60 3.64 0.39 3.81 <0.01 Oxide
TADD268 53.00 55.00 2.00 1.30 0.26 10.10 <0.01 Oxide
TADD268 59.40 60.20 0.80 0.52 5.03 57.30 <0.01 Oxide
TADD268 64.00 66.60 2.60 1.69 0.28 14.17 <0.01 Oxide
TADD268 99.60 101.00 1.40 0.91 0.26 5.40 0.02 Oxide
TADD270 85.00 88.50 3.50 2.28 0.24 9.63 <0.01 Oxide
TADD270 97.00 99.00 2.00 1.30 0.89 6.00 <0.01 Oxide
TADD270 124.00 126.00 2.00 1.30 0.36 12.40 0.02 Oxide
TADD270 136.00 143.50 7.50 4.88 0.39 13.43 <0.01 Oxide
TADD270 182.50 188.20 5.70 3.71 0.80 27.58 0.24 Sulfide
TADD272 22.00 36.00 14.00 9.10 0.24 1.90 <0.01 Oxide
TADD272 50.30 58.90 8.60 5.59 0.30 3.15 <0.01 Oxide
TADD272 60.90 62.90 2.00 1.30 0.17 2.00 <0.01 Oxide
TADD272 66.90 75.50 8.60 5.59 0.39 2.93 <0.01 Oxide
TADD272 82.00 84.50 2.50 1.63 0.44 10.50 0.03 Oxide
TADD274 35.40 37.00 1.60 1.04 17.45 387.00 1.28 Sulfide
TADD274 44.00 86.60 42.60 27.69 2.51 10.61 0.01 Oxide
TADD275 9.00 21.00 12.00 7.80 0.39 5.84 0.01 Oxide
TADD275 23.80 25.90 2.10 1.37 0.21 2.13 <0.01 Oxide
TADD275 65.00 80.80 15.80 10.27 0.29 6.15 0.02 Oxide
TADD275 123.00 131.00 8.00 5.20 0.77 19.73 <0.01 Oxide
TADD276 40.00 42.00 2.00 1.30 0.68 15.70 <0.01 Oxide
TADD276 49.80 71.40 21.60 14.04 1.38 10.42 <0.01 Oxide
TADD276 79.15 81.30 2.15 1.40 0.16 8.75 0.01 Oxide
TADD276 84.80 90.00 5.20 3.38 0.27 14.14 <0.01 Oxide
TADD276 98.45 100.65 2.20 1.43 0.31 12.45 0.01 Oxide
TADD276 146.60 148.60 2.00 1.30 0.42 1.90 <0.01 Oxide
TADD276 178.35 181.40 3.05 1.98 0.52 29.39 <0.01 Oxide
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TADD276 268.65 269.65 1.00 0.65 2.00 6.80 0.02 Oxide
TADD277 33.80 51.90 18.10 11.77 0.83 9.70 0.01 Oxide
TADD277 84.70 87.40 2.70 1.76 0.31 4.40 <0.01 Oxide
TADD277 90.90 95.70 4.80 3.12 0.34 5.74 0.01 Oxide
*True width is averaged to 65% of the down-hole intercept, although ranges from 60-70% subject to intersection
with sub-vertical veins and drilling dip.
Table 2 – Intercepts from Cerro Campamento
The table shows the most significant results:
DDH FROM TO Downhole
length
True
width* Au (g/t) Ag (g/t) Cu (%) Ore Type
TADD255 44.00 61.30 17.30 5.76 0.79 8.46 0.02 Oxide
including 55.85 61.30 5.45 1.81 1.74 21.61 0.04 Oxide
TADD255 65.85 68.20 2.35 0.78 0.27 2.78 <0.01 Oxide
TADD257 41.00 43.60 2.60 0.87 0.22 3.90 0.01 Oxide
TADD257 61.70 71.00 9.30 3.10 0.98 6.73 0.07 Sulfide
TADD260 0.00 3.00 3.00 1.67 0.32 11.15 <0.01 Oxide
TADD260 19.00 21.00 2.00 1.11 0.24 4.80 <0.01 Oxide
TADD260 44.60 48.00 3.40 1.89 0.37 2.15 <0.01 Oxide
TADD260 110.00 119.80 9.80 5.44 0.68 20.34 0.02 Oxide
TADD260 138.00 141.70 3.70 2.05 0.34 38.94 0.02 Oxide
TADD260 169.00 181.50 12.50 6.94 0.54 12.69 0.03 Oxide
TADD264 84.00 107.45 23.45 23.45 0.72 31.51 0.03 Oxide
TADD264 131.25 147.35 16.10 16.10 0.76 9.68 0.03 Oxide
TADD264 161.00 163.15 2.15 2.15 0.32 16.15 0.39 Sulfide
TADD269 62.50 76.05 13.55 11.29 0.59 24.06 0.01 Oxide
Including 66.30 66.90 0.60 0.50 8.96 389.00 0.09 Oxide
TADD271 13.40 16.20 2.80 1.55 0.39 5.50 <0.01 Oxide
TADD271 29.90 33.25 3.35 1.86 1.57 9.33 0.01 Oxide
TADD271 57.00 59.70 2.70 1.50 0.36 18.28 0.05 Sulfide
TADD271 71.60 73.60 2.00 1.11 0.37 7.90 0.11 Sulfide
TADD271 79.00 83.50 4.50 2.50 0.33 37.31 0.22 Sulfide
TADD273 0.00 2.70 2.70 1.35 0.53 4.87 <0.01 Oxide
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TADD273 13.60 27.60 14.00 7.00 3.07 31.03 0.01 Oxide
Including 15.60 23.60 8.00 4.00 5.19 45.12 0.02 Oxide
*True width varies between 33 and 100% of the down-hole in tercept, subject to intersection with sub-vertical
veins and drilling dip.
Cautionary Notes to Investors - Mineral Reserves and Resources Estimates
Pursuant to Canadian Institute of Mining Metallurg y and Petroleum's "CIM Standards on Mineral Resources
and Reserves Definitions and Guidelines" (the "CIM Guide lines"), mineral resources have a higher degree of
uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred
mineral resources, when compared with measured or indi cated mineral resources, 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 resu lt of continued exploration. Pursuant to NI 43-101,
inferred mineral resources may not fo rm the basis of any ec onomic analysis, including any feasibility 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 legally mineable or recovered.
ABOUT ORVANA - Orvana is a multi-mine gold-copper-silver co mpany. 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).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Cautionary Statements - Forward-Looking Information
Certain statements in this presentation c onstitute forward-looking statements or forw ard-looking information within the meaning of
applicable securities laws (“forward-looking statements”). Any statements that express or involve discussions with respect to p redictions,
expectations, beliefs, plans, proj ections, objectives, assumptions, potentials, fu ture 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 re sults “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 thin gs, 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 estima tes including specifically, but not limited to, in the case of Don Mario, the pro cessing of the
mineral stockpiles and the reprocessing of the tailings material ; Orvana’s ability to optimize its assets to deliver shareholde r value; the
Company’s ability to optimize productivity at Don Mario and El Valle; estimates of future production, operating costs and capit al
expenditures; mineral resource and reserve estimates; statem ents and information regarding future feasibility studies and their results;
future transactions; future metal prices; the ability to achi eve additional growth and geographic diversification; and future f inancial
performance, including the ability to increase cash flow and prof its; future financing requirem ents; mine development plans; an d 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 subj ect to significant business, ec onomic and competitive uncertainti es and
contingencies, which includes, without limitat ion, as particularly set out in the notes accompanying the Company’s most recentl y filed
financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this information, which
may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana’s most recent ly 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 other wise expressly incorporated her ein by reference as well as: there being no significant disrup tions
affecting operations, whether due to labour disruptions, supply disruptions, power disr uptions, 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 Com pany 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;
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 se curities legislation, including, without limitation, references to the results o f the Taguas