Orvana Produces 27,302 GOLD Ounces IN 2nd Quarter Fiscal Year 2019
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For Immediate Release TSX:ORV
Date: April 17, 2019 #06-2019
ORVANA PRODUCES 27,302 GOLD OUNCES IN 2nd QUARTER FISCAL YEAR 2019
TORONTO, ONTARIO, April 17, 2019 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) is pleased to provide production results for the second quarter of fiscal 2019 (“Q2 2019”) for its
El Valle Mine (“El Valle”) in Spain and Don Mario Mine (“Don Mario”) in Bolivia.
Q2 FY2019 Highlights:
Gold output, at 27,302 ounces, on track to meet 2019 guidance
Gold-equivalent output, at 31,112 ounces, bearing strong Copper performance
The Company continues to pursue its objectives of lowering unitary cash costs and maximizing
free cash flow while increasing its output
Brownfield and greenfield exploration continues at EMIPA and Orovalle to extend the life of
both mines
CEO Juan Gavidia stated, “These mid-year results build upon our record achievements in FY2018 and
demonstrates our ability to deliver excellent operational results on a consistent quarter-by-quarter basis.
Orvana’s experienced Spanish and Bolivian teams continue to successfully execute on our annual plans
and longer-term strategy while maintaining safety and environmental standards”.
El Valle
Quarterly 17,738 ounces gold production was 7% higher than previous quarter, and 17% higher
than same quarter last fiscal year. Better results due to higher ore grade on improved
oxides/skarns blending.
Gold head grade of 3.49 g/t improved, compared to 3.24 g/t reported in Q1 FY2019.
Copper production was 1.44 million pounds, compared to 1.37 million pounds in Q1 FY2019.
Mine exploration activities continue to focus on high-grade oxides areas to ensure optimum feed
blending for years to come.
Don Mario
Quarterly 9,564 ounces gold production was 11% lower than previous quarter, but similar to same
quarter last fiscal year. Year-to-date results are on track to meet FY2019 Guidance and are also
consistent with planned lower ore grade.
Gold recovery of 94.0% was in line with 94.1% recovery in Q1 FY2019.
Engineering to develop a Sulphidization-Acidification-Recycling-Thickening “(SART”) circuit, and
associated leach pad, continues to progress. This undertaking is designed to add an additional
three years of mine life, starting in FY2021, for Don Mario.
Mine exploration activities are focused on completing Las Tojas open pit infill drilling in order to
complete tonnage/grade for FY2020 mine plan.
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Production Results
Q2 2019 Q1 2019 Q2 2018 FY 2019
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total Guidance
Ore milled (tones) 170,435 188,606 359,041 170,399 186,996 357,395 150,966 178,698 329,664
Gold Equivalent (oz) 21,435 9,677 31,112 20,186 10,802 30,988 19,022 12,883 31,905
Gold
Grade (g/t) 3.49 1.68 2.54 3.24 1.90 2.54 3.36 1.84 2.54
Recovery (%) 92.7 94.0 93.4 93.2 94.1 93.7 92.9 91.3 92.2
Production (oz) 17,738 9,564 27,302 16,546 10,726 27,272 15,139 9,649 24,788 100,000 - 110,000
Copper
Grade (%) 0.49 0.48 0.48 0.48 0.51 0.62 0.57
Recovery (%) 78.1 78.1 75.9 75.9 80.4 50.3 63.0
Production (K lbs) 1,442 1,442 1,375 1,375 1,372 1,237 2,609 3,200 - 3,600
Financial Performance
Second Quarter costs and financial highlights to be available by mid-May, 2019.
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 Spain 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-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” 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 mining of the Cerro Felix deposit, the processing of the mineral stockpiles (including the
implementation of the SART circuit) 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 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
uncertainties and contingencies. 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 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 disruptions, damage to
equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent
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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 factors
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 operations; 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 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 the SART circuit 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 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.
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.