Orvana Provides Q3 FY2020 Operational Report
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Date: July 15, 2020 #8-2020
ORVANA PROVIDES Q3 FY2020 OPERATIONAL REPORT
All Amounts in US Dollars Unless Otherwise Stated
• Gold production of 12,046 ounces
• Gold-equivalent production of 14,565 ounces
• Oxides Project metallurgical testing-optimization continues
• Advancement of k ey exploration and permitting activities to extend Life-of-Mine in OroValle,
Spain
• Continuing comprehensive exploration activities at EMIPA, Bolivia
TORONTO, ONTARIO, July 15, 2020 – Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) announced today operational results for the third quarter of fiscal 2020 (“Q3 2020”).
Juan Gavidia, CEO of Orvana Minerals stated: “We are pleased that Q3 production numbers clearly fulfill
our expectations for steady output , notwithstanding the effects of the global pandemic stressing supply
chains. Throughout these challenging conditions, Orvana has maintained focus on the health, safety and
well-being of its workforce by continuously amending its operational protocols to adhere to changing
COVID-19 guidance from the authorities.”
OroValle
• OroValle continued production during the third quarter, notwithstanding the COVID-19 situation in
Spain and the related challenges to the global supply chain.
• Quarterly 11,822 ounces of gold production, 3% lower than previous quarter due to lower ore grade,
partially off-set by higher throughput.
• Copper production was 1.5 million pounds, 7% higher than previous quarter.
• Exploration programs at El Valle and Carlés continued according to plan during third quarter.
• Three pandemic -related Spanish government guaranteed loans for a total of €3.8 million, at
favourable rates between 1.5% and 1.6%, and terms between 12 and 36 months, were secured in
Q3.
EMIPA
• Quarterly 224 ounces gold production resulting from final mill cleaning of in-circuit material.
• Oxides Stockpile Project (OSP): Metallurgical testing and optimization restarted in June, but at a
much slower pace due to the global pandemic. Subject to the favorable completion of technical,
economic and funding analysis, the OSP is expected to require approximately twelve months of
development to start commercial production late in 2021.
• The Company continues to compile historical exploration data and the re-evaluation of geophysical
data in order to prioritize the exploration of EMIPA’s targets within its 58,325 hectares of mining
concessions.
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Production Results
Q3 2020 Q2 2020 Q3 2019
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total
El
Valle
Don
Mario Total
Ore milled (tones) 163,717 - 163,717 148,339 - 148,339 141,246 189,240 330,486
Gold Equivalent (oz) 14,338 227 14,565 14,843 - 14,843 16,548 6,932 23,480
Gold
Grade (g/t) 2.43 - 2.43 2.74 - 2.74 3.25 1.20 2.08
Recovery (%) 92.4 - 92.4 93.0 - 93.0 94.0 93.7 93.8
Production (oz) 11,822 224 12,046 12,139 - 12,139 13,854 6,842 20,696
Copper
Grade (%) 0.51 - 0.51 0.52 - 0.52 0.44 - 0.44
Recovery (%) 81.8 - 81.8 83.1 - 83.1 78.1 - 78.1
Production (K lbs) 1,517 - 1,517 1,422 - 1,422 1,071 - 1,071
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 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, 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 ab ility 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; statement s and information regarding
future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional gro wth and
geographic diversification, including without limitation, the ability to complete the acquisiti on of the Taguas Property; future 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. 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 various assumptions set forth herein and in Orvana’s most
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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 disrupt ions, supply disruptions, power disruptions, damage to
equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consi stent
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 approxima tely
consistent with current levels; production and cost of sales fore casts 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 a ctual 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 regula tory 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 abi lity 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 mi neral 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 te rms that
are acceptable to the Company; challenges to the Company’s interests i n 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 wh ich 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 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.