Orvana Identifies 17 New High Probability GOLD Targets at the Taguas Property
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Date: Sept 14, 2020 #10-2020
ORVANA IDENTIFIES 17 NEW HIGH PROBABILITY GOLD TARGETS AT THE TAGUAS
PROPERTY
TORONTO, ONTARIO, September 14, 2020 – Orvana Minerals Corp. (TSX:ORV ) (the “Company” or
“Orvana”) is providing an update on its exploration program at the Taguas mining property (“Taguas” or
the “Property”) located in the San Juan province, Argentina. As a result of the completion of a recent artificial
intelligence assisted data analysis, Orvana has identified a total of 17 new high probability gold targets at
Taguas, consisting of 9 new areas and 8 extended areas of previous known mineralization. All of the newly
identified targets are based on a 96% level of similarity to the known gold mineralization . These results
suggest that there is a n enhanced probability of increasing the potential of the Property ’s oxides and
sulphides resources . The potential of the new gold targets remains subject to additional fieldwork to be
conducted the next summer season in Argentina. If COVID-19 restrictions allow, the field work campaign
will include opening new access points, surface mapping and soil and rock sampling.
Orvana retained Windfall Geotek (“Windfall”), a TSXV-listed company, to analyze existing Taguas data in
connection with the development of the gold exploration targets at Taguas. Utilizing its Computer Aided
Resources Detection System (“CARDS”), Windfall processed the geophysical, geochemical, and geological
data provided by Orvana to analyze the patterns hidden in the large amount of existing data, which consisted
of a drill hole database containing 220 drill holes, a surface samples database containing 854 samples, and
Magnetic (TMI) and Radiometric (K, Th, U & TC) data at 10m resolution (417 ,716 datapoints). The public
SRTM (Shuttle Radar Topography Mission) data was also used to characterize the topography.
Mr. Raúl Álvarez, Head of Exploration of Orvana, stated: “We are excited about the identification of the 17
new gold targets, which , if confirmed through additional fieldwork, will materially increase the potential
upside of Taguas. Field work planned for the following months will provide key informatio n to optimize the
definition of the next drilling campaign”. Mr. Álvarez added that “The Company is taking advantage of new
technologies to optimize the exploration programs and reduce costs, while advancing the project despite
COVID-19 restrictions”.
The new gold exploration targets that have been identified, are represented as red shapes in Figure 1.
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Figure 1. Taguas Property CARDS Gold Targets
Background of the Taguas Mining Property
On May 14, 2019, Orvana entered into a purchase agreement with Compañía Minera Taguas S.A. pursuant
to which Orvana agreed to acquire the Taguas property located in the Province of San Juan, Argentina.
Closing of the transaction is subject to applicable local mining rights registrations and the final acceptance
of the Toronto Stock Exchange. The process to complete the acquisition and registration of the Taguas
Project in Argentina has been delayed due to COVID-19 travel restrictions and national lockdown measures.
The Company is not in a position to determine a timeline to complete the registration of the acquisition of
the Taguas Project in Argentina until the COVID-19 restrictions are lifted.
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Taguas is located at the northern end of the Tertiary -age Valle del Cura volcanic belt in Argentina (Figure
2) and on the eastern flank of the El Indio metallogenic belt1. The Valle Del Cura belt has a similar basement,
comparable volcanism ages and alteration as the volcanism on the Chilean side 2 and constitutes an
extension of the El Indio belt into Argentina.
Figure 2. Regional Geology of Taguas Property
Taguas consists of 15 mining concessions over an area of 3,273.87 ha. The Property is located in the
Province of San Juan, Argentina, on the eastern flank of the Andes, between 3,500 m to 4,300 m above
sea level. The Property is host to a high -sulfidation epithermal gold-silver system hosted in altered tertiary
1 Siddeley, G. and Araneda, R., (1990). Gold-silver Occurrences of the El Indio Belt, Chile: Circum-Pacific Council
Energy Mineral Resources, Volume 11, pages 273-284.
2 Davidson, J. and Mpodozis, C., (1991). Regional Geologic Setting of Epithermal Gold Deposits Chile: Economic
Geology, Volume 86, pages 1174-1186.
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age rhyolite volcaniclastic rocks. Supergene -oxidized gold-silver mineralization occurs on the south half of
the Property.
On July 9, 2019 the Company filed a Preliminary Economic Assessment Report for the Taguas property
(the “PEA”). A copy of the PEA may be obtained on the Company’s profile at www.sedar.com. The PEA
refers only to the oxidized gold-silver mineralization occurring near surface known at the date of the report,
consisting of sub -vertical, northeast striking mineralized structures in an envelope of lower grade
mineralization. The high -grade zones consist of relatively continuous mineralization with gold grades
ranging from 0.2 g/t Au to over 4.0 g/t Au and 10 g/t Ag to over 50 g/t Ag. Oxidation extends from surface
to approximately 100m – 200m below surface. The PEA utilized the following inferred mineral resource:
Estimate of Inferred Mineral Resource reported at 0.25 g/t AuEq Cut-off
COG g/t AuEq Tonnes
Mt Au g/t Ag g/t AuEq g/t
Contained Metal
Au koz Ag koz
0.20 49.6 0.35 12.7 0.45 556 20,237
0.25 38.6 0.40 14.6 0.51 494 18,110
0.30 30.0 0.45 16.5 0.58 435 15,894
Notes:
1. Mineral Resource estimate prepared by Mr. R. Simpson, P.Geo., of GeoSim Services Inc. with an effective date of 14 May 2019.
Mineral Resources are classified using the 2014 CIM Definition Standards.
2. Gold equivalent (AuEq g/t) calculations were based on assumed metal prices of $1300/oz Au, and $17/oz Ag, recoveries of 87 %
Au and 52% Ag. AuEq = Au(g/t) + Ag(g/t) *0.0078
3. An optimized pit shell was generated using the following assumptions: metal prices/recoveries in Note 2 above; a 45° pit slope;
mining costs of $2.00 per tonne, processing costs of $5.20 per tonne, and general & administrative charges of $1.50 per tonne . All
amounts are expressed in US dollars.
4. Totals may not sum due to rounding.
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is
preliminary in nature and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized
as mineral reserves and there is no certainty that the results of the PEA will be realized. The financial
analysis in the PEA does not include the 2.5% royalty associated with the acquisition of the Prope rty by
Orvana. The PEA study is conceptual in nature and the PEA mine plan is based on 100% inferred resources.
The projections, forecasts and estimates presented in the PEA constitute forward -looking statements and
readers are urged not to place undue rel iance on such forward-looking statements. Additional cautionary
and forward-looking statement information is detailed at the end of this news release.
About Orvana Minerals
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 Menendez
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 predicti ons,
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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 othe r things, the potential impact of the COVID -19 on our the Company’s
business and operations, including our its ability to continue operations; our the Company’s ability to manage challenges pre sented
by COVID-19; the accounting treatment of COVID-19 related matters; Orvana’s ability 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 thro ugh 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; Orvana’s ability to achieve improvement in free cash flow; the potenti al 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 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, operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding
future f easibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and
geographic diversification, including without limitation, the ability to complete the acquisition of the Taguas Property; fut ure financial
performance, including the ability to increase cash flow and profits; and 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
uncertainties and contingencies 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 accuracy of the data analysis provided by Windfall Geotek, 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 disruption s, supply
disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, ex pansion 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 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 f actors
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 oper ations; 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 developmen t,
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 facilities 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 w hen 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 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.