Orvana Reports 3rd Quarter Consolidated Production of 20,696 Au Ounces, 1.1 Million Copper Pounds ON Track to Meet FY2019 GOLD Production Guidance with Copper Production Exceeding Guidance
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For Immediate Release TSX:ORV
Date: July 16, 2019 #10-2019
ORVANA REPORTS 3rd QUARTER CONSOLIDATED PRODUCTION OF 20,696 AU OUNCES,
1.1 MILLION COPPER POUNDS
ON TRACK TO MEET FY2019 GOLD PRODUCTION GUIDANCE WITH
COPPER PRODUCTION EXCEEDING GUIDANCE
TORONTO, ONTARIO, July 16, 2019 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) is pleased to provide production results for the third quarter of fiscal 2019 (“Q3 2019”) for its El
Valle Mine (“El Valle”) in Spain and Don Mario Mine (“Don Mario”) in Bolivia.
Q3 FY2019 Highlights:
Consolidated gold production of 20,696 ounces, on track to meet FY2019 guidance
Consolidated copper production of 1.1 million pounds; FY2019 copper guidance now achieved
Gold-equivalent production of 23,841 ounces, with strong copper performance
The Company continues to seek optimization of cost efficiencies and maximize free cash flow
while increasing production
Brownfield and greenfield exploration programs continue at Don Mario and Orovalle; Las Tojas
open pit to be advanced in Q4 FY2019
CEO Juan Gavidia stated, “With just one quarter left, Orvana is on track to meet annual production
guidance, while also benefiting from current gold price levels and increased copper production. Both
operations are aggressively engaged in regional brownfield exploration programs. An example of our
brownfields exploration, is the soon to be exploited Las Tojas open pit at Don Mario. The team’s on-going
exploration efforts, coupled with the recently announced Taguas Mining Property PEA, in Argentina, clearly
establishes Orvana’s path to a sustainable future”.
El Valle
Quarterly 13,854 ounces gold production was 22% lower than pre vious quarter, and 18% lower
than same quarter last fiscal year. Production decrease was acc ording to operational planning,
with Carlés not providing skarn in Q3.
Gold head grade of 3.25 g/t, compa red to 3.49 g/t reported in Q2 FY2019.
Copper production was 1.1 million pounds, compared to 1.4 mill ion pounds in Q2 FY2019, with
production now exceeding guidance.
Brownfield and greenfield intensive exploration programs are f ocused on high-grade oxides areas
in and around the mine, near-plant concessions and exploration permits.
Don Mario
Quarterly production of 6,842 ounces gold was 28% lower than p revious quarter, and 31% lower
than 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 while work ing on the last benches of Cerro
Felix open pit.
Gold recovery of 93.7% was in li ne with 94.0% recovery in Q2 FY2019.
Engineering continues on the proposed Sulphidization-Acidifica tion-Recycling-Thickening
(“SART”) circuit, and ancillary facilities. The new circuit, which will allow the processing of oxidized
stockpiles is expected to increase the mine life at Don Mario b y an additional 2-3 years and is
expected to commence in late FY2020.
Las Tojas exploration activities completed in the third quarte r yielded positive results, allowing
production to start in late Q4 FY2019.
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Production Results
Q3 2019 Q2 2019 Q3 2018
YTD
FY2018
FY 2019
El Valle
Don
Mario Total El Valle
Don
Mario Total El Valle
Don
Mario Guidance Total Guidance
Ore milled (tones) 141,246 189,240 330,486 170,435 188,606 359,041 169,958 175,446 345,400
Gold Equivalent (oz) 16,548 6,933 23,481 21,414 9,677 31,091 21,358 9,969 31,327
Gold
Grade (g/t) 3.25 1.20 2.08 3.49 1.68 2.54 3.36 1.90 2.62
R e c o v e r y ( % ) 94.0 93.7 93.8 92.7 94.0 93.2 91.8 92.4 92.0
Production (oz) 13,854 6,842 20,696 17,742 9,564 27,306 16,845 9,916 26,761 75,274 100,000 -
110,000
Copper
Grade (%) 0.44 0.44 0.49 0.49 0.51 0.51
R e c o v e r y ( % ) 78.1 78.1 78.1 78.1 81.6 81.6
Production (K lbs) 1,071 1,071 1,441 1,441 1,575 1,575 3,887 3,200 -
3,600
Financial Performance
Third Quarter financial highlights, including unitary costs will be released in mid-August, 2019.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana’s opera ting 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 (ofte n, 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 and the commencement of mining at Las Tojas, the
processing of the mineral stockpiles (including the implementati on of the SART circuit) and the reprocessing of the tailings ma terial;
Orvana’s ability to optimize its assets to deliver shareholder value; the Company’s ability to optimize productivity at Don Mar io 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 t o achieve
additional growth and geographic diversification; future financ ial 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 inhere ntly 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, dama ge 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 approximate ly
consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company’s curr ent
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 fac tors
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 operat ions; 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 t he SART circuit to process the current oxides stockpiles at D on
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 Comp any
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 in tended 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.