Orvana Reports Increased GOLD Production FOR Q2 2017
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For Immediate Release TSX:ORV
Date: April 20, 2017 #05-2017
ORVANA REPORTS INCREASED GOLD PRODUCTION FOR Q2 2017
TORONTO, ONTARIO, April 20, 2017 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”)
is providing the following production results for t he El Valle Mine (“El Valle”) in Spain and Don Mario Mine
(“Don Mario”) in Bolivia for the second quarter of fiscal 2017 (“Q2 2017”).
Consolidated gold equivalent production of 27,683 ounces in Q2 2017 repr esenting an increase of
14% compared to Q1 2017;
On track to meet fiscal 2017 production guidance;
Highest consolidated quarterly gold production since quarter ended December 31, 2014;
El Valle gold and copper production increased by 11% and 77% compared to Q1 2017, respectively,
due to higher grades;
Don Mario gold production increased by 73% compar ed to Q1 2017, primarily due to higher realized
recoveries from the re-commissioned carbon-in-leach circuit (“CIL Circuit”). Targeted gold recovery of
80% reached by the end of Q2 2017.
Production Highlights
Q2 2017 Q1 2017 FY 2017
El Valle Don Mario Total El Valle Don Mario Total Guidance
Operating Performance
Ore milled (tonnes) (dmt) 157,621 150,231 307,852 162,121 178,480 340,601
Gold Equivalent
Production (oz) 15,908 11,775 27,683 12,818 11,523 24,341
Gold
Grade (g/t) 2.60 2.50 2.55 2.23 1.73 1.97
Recovery (%) 90.4 71.1 81.2 92.4 50.2 72.8
Production (oz) 11,917 8,596 20,513 10,723 4,976 15,699 85,000 – 95,000
Copper
Grade (%) 0.58 0.75 0.66 0.34 1.31 0.85
Recovery (%) 74.1 54.6 63.7 69.3 53.1 56.3
Production (‘000 lbs) 1,503 1,364 2,867 847 2,741 3,588 13,000 – 14,000
Silver
Grade (g/t) 13.49 5.48 9.58 7.64 19.85 14.04
Recovery (%) 74.7 58.2 70.1 73.6 69.3 70.4
Production (oz) 51,080 15,405 66,485 29,321 78,959 108,280 300,000 – 350,000
Jim Gilbert, Chairman and CEO, stated, “We are pleased with the improving production results at both of our
operations this quarter. The major investments we have made into the operations are now beginning to yield
increased gold and gold equivalent production. With the successful implementation of the CIL Circuit at Don
Mario we have achieved a significant increase in gold pr oduction. At El Valle, the results from the continuing
underground development program, together with the supplementary ore from Carlés Mine, are beginning to
demonstrate the potential of this operation with sustained higher mill throughput rates compared to prior years.
We look forward to further progress in this regard over the remainder of fiscal 2017.”
Production – El Valle Mine
The El Valle and Carlés Mines produced 11,917 ou nces of gold in Q2 2017, an increase of 11%
compared to 10,723 ounces of gold produced in Q1 2017.
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The increased production was primarily due to a higher average gold grade of 2.60 g/t in Q2 2017
versus 2.23 g/t in Q1 2017.
Copper production in Q2 2017 was 1.5 million poun ds, compared to 0.8 m illion pounds in Q1 2017.
This 77% increase in copper production was attributed to both higher copper grade in the ore
processed and metallurgical recovery in the mill.
Daily milled tonnes in Q2 2017 was 1,844 tonnes per day (“tpd”), slightly lower than 1,855 tpd in Q1
2017. The plant at El Valle conti nues to work towards consistently achieving a targeted daily mill
throughput rate of 2,000 tpd. Ore availability from the Carlés Mine is expected to increase through the
second half of fiscal 2017, thereby improving processing rates at the mill. The required amended
explosives permit expected to be received during Q1 2017 was received in February 2017.
Production – Don Mario Mine
In Q2 2017, Don Mario completed the re-commission ing and ramp up of the CIL Circuit. This resulted
in gold production of 8,596 ounces, an increase of 73% compared to 4,976 ounces of gold produced
in Q1 2017.
The increased gold production was primarily due to a higher average gold recovery of 71.1% in Q2
2017 versus 50.2% in Q1 2017. Gold production wa s also positively impac ted by a planned higher
gold grade of 2.50 g/t in Q2 2017 versus 1.73 g/t in Q1 2017. During March 2017, Don Mario exceeded
targeted gold recovery of 80%.
Copper production in Q2 2017 was 1.4 million poun ds, compared to 2.7 million pounds in Q1 2017.
The decrease in production was a re sult of the planned transition to process the higher gold grade
and lower copper grade ore from the Lower Mineralized Zone.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana’ s operating assets consist of the producing gold-
copper-silver El Valle and Carlés mines in northern Spain and the producing gold- copper-silver Don Mario
mine in Bolivia. Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Jeff Hillis
Chief Financial Officer
T (416) 369-6281
Cautionary Statements - Forward-Looking Information
Certain statements in this info rmation constitute forward-looking statemen ts 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, projec tions, 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; 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; fu ture 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 necessar ily based upon a number of estimates and assumptions that, while considered
reasonable by the Company as of the dat e of such statements, are inherently subject to significant business, economic
and competitive uncertainties and conti ngencies. The estimates and assumptions of the Company contained or
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incorporated by reference in this information, which may prov e 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 Va lle and Don Mario being consistent with the Company’s
current expectations; political developments in any jurisdict ion in which the Company operates being consistent with its
current expectations; certain price assumptions for gold, c opper 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 beyon d the Company’s cont rol, affect the
operations, performance and results of the Company and its business, and coul d 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 includ e fluctuations in the pric e of gold, silver and cop per; the need to recalculate
estimates of resources based on actual production experience; t he 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 lic enses; the Company’s ability to use cyanide in its mining
operations; risks generally associated with mineral exp loration and development, including the Company’s ability to
continue to operate the El Valle and/or Don Mario and/or ability to resume l ong-term operations at Carlés Mine; the
Company’s ability to acquire and develop mineral properties and to successfully integr ate 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 under the heading “Risks and Uncertainties”. This list is not exhaustive of the factors that may affect any of
the Company’s forward-looking statements and reference shou ld also be made to the Company’s Disclosures for a
description of additional risk factors.
Any forward-looking statements made in this information 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 Comp any 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 informati on are intended to provide an overview of management’s
expectations with respect to certain future operating activi ties of the Company and ma y not be appropriate for other
purposes.