Orvana Reports Q1 FY2023 Production and Provides Exploration Update
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For Immediate Release TSX:ORV
Date: January 16, 2023 #01-2023
ORVANA REPORTS Q1 FY2023 PRODUCTION
AND PROVIDES EXPLORATION UPDATE
TORONTO, ONTARIO, January 16 , 2023 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or
“Orvana”) is pleased to report production results and drilling updates from Orovalle, Orvana’s unit in
Spain, for the first quarter of fiscal year 2023 (“Q1 FY2023), being the period ended December 31, 2022.
Highlights
• Q1 2023 production of 13,815 gold equivalent ounces
• 2,868 m of infill drilling in Orovalle, Spain
• 733 m of greenfield drilling in Orovalle, Spain
Juan Gavidia, CEO of Orvana stated: “We successfully completed the quarter by achieving production
levels at El Valle that keep us on target for our FY2023 guidance, while continuing our aggressive
brownfield and greenfield exploration program in Spain, aimed to replenish depletion, quarter per quarter”.
Q1 2023 Production Results
• 10,711 gold ounces produced, on track to meet fiscal year 2023 guidance of 46,000 - 51,000 Oz.
• 1.2 million copper pounds produced, on track to meet fiscal year 2023 guidance of 4,000 – 4,400 Oz.
Q1 FY2023 Q4 FY2022 Q1 FY2022 FY 2023
Guidance
Ore milled (tones) 156,681 174,493 176,288
Gold Equivalent (oz) 13,815 15,344 15,921
Gold
Grade (g/t) 2.30 2.36 2.27
Recovery (%) 92.5 92.7 91.2
Production (oz) 10,711 12,272 11,731 46,000 - 51,000
Copper
Grade (%) 0.43 0.40 0.45
Recovery (%) 82.6 83.2 83.7
Production (K lbs) 1,216 1,267 1,451 4,000 - 4,400
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Q1 FY2023 Drilling Update
Drilling Summary Infill (m) Greenfield (m) TOTAL (m)
Ortosa-Godán - 733 733
El Valle Boinás
Boinas South (SB) 2,868 - 2,868
TOTAL 2,868 733 3,601
Table 1. Orovalle Drilling Q1 FY2023
FY2023 Greenfield Drilling Program
Greenfield drilling program will continue focused on Ortosa-Godán and Lidia, with a total of 4,300 meters
planned for the fiscal year.
Ortosa-Godán Project is located close to Carlés mine, three kilometers northwest and into the same gold
belt. Orovalle commenced the drilling program in Ortosa West in August 2021 to define skarns continuity
and to verify mineralization related to N40ºE structures. A total of 14 drill holes were completed up to date
with 5,716 meters. 3,800 meters are planned for FY2023 focused on defining skarn mineralization In
Ortosa West and Godan areas.
Lidia Project is located in the Navelgas Gold Belt, 20 km from El Valle mine. Gold porphyry Lidia
Project occurs within the easternmost part of the Navelgas fracture systems. A granodiorite intrusive
outcrops over an area of approximately 1 km2. It is dissected by a set of northeast trending mineralized
quartz veins and affected by different alteration phases.
A total of 2,421 meters in 5 drill holes were completed between fiscal years 2021 and 2022, confirming the
presence of gold in the granodiorite. A drilling campaign with 500 meters is planned for the second half of
fiscal 2023, with the target to extend the orebody definition to the North.
FY2023 Infill-Brownfield Drilling Program
11,500 meters are planned for FY2023 in El Valle- Boinás, focused on Inferred material conversion and
oxide mineral definition in the North of the deposit.
Quality Control
Greenfield drill hole samples were sent to an external laboratory (ALS Laboratory) for analyses. Infill and
brownfield drill holes samples were analyzed in Orovalle's Laboratory.
Sample preparation was carried out at the El Valle facility. All diamond core samples have been prepared
using the following procedure, once split:
The core samples are dried at a temperature of 105ºC and then crushed through a jaw crusher to 95%<6
mm. The coarse -crushed sample is further reduced to 95%<425 microns using an LM5 bow l-and-puck
pulverizer. An Essa rotary splitter is used to take a 450 g to 550 g sub-sample of each split for pulverizing.
The remaining reject portion is bagged and stored. The sample is reduced to a nominal -200 mesh using
an LM2 bowl-and-puck pulverizer. 140 g sub-samples are split using a special vertical-sided scoop to cut
channels through the sample which has been spread into a pancake on a sampling mat. Samples are then
sent to the laboratory for gold and base metal analysis. Leftover pulp is bagged and stored.
After sample preparation, 30g samples are analyzed for Au by fire assay with an atomic absorption
spectroscopy (AAS) finish and two-gram samples for Ag, As, Bi, Cu, Hg, Pb, Sb, Se, and Zn by ICP-optical
emission spectroscopy (ICP-OES) after an aqua regia digestion.
In case of the samples sent to an external laboratory, 30 g samples are analyzed for Au by fire assay with
an atomic absorption (Au AA -25) and 35 elements by ICP (ME -ICP41) after an agua region digestion.
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When Au and Ag values are >100 ppm and Cu and As values are >10,000 ppm, specific analysis methods
are used to determinate the final grade.
The reported work has been completed using industry standard procedures, including a quality
assurance/quality control (“QA/QC”) program consisting of the insertion of certified reference material,
blanks and duplicates samples into the sample stream.
The exploration update was prepared under the supervision of Guadalupe Collar Menéndez, a qualified
person for the purposes of NI 43-101 and an employee of Orovalle Minerals S.L., a subsidiary of Orvana.
Reference to “gold equivalent ounces” - Gold equivalent ounces is a non -GAAP financial performance
measure. This non-GAAP financial performance measure referenced in this news release is intended to
provide additional information to investors and do not have any standardized meaning under IFRS, and
therefore may not be comparable to other issuers, and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS. For further information and
detailed reconciliations, please see the “Non -GAAP Financial Performance Measures” section of the
Company’s MD&A dated December 19, 2022.
ABOUT ORVANA - 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, the Don Mario gold- silver
property in Bolivia, currently in care and maintenance, and the Taguas property located in Argentina.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Cautionary Statements – Forward-Looking Information
Certain statements in this presentation 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”, “are projected to” or “confident of” 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
ability to maintain expected mining rates and expected throughput rates at El Valle Plant; 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, Orvana’s ability to optimize
its assets to deliver shareholder value; El Valle; estimates of future production (including without limitation, production guidance),
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; and future financial performance, including the ability to increase cash flow and profits; future financing requirements;
mine development plans; and the possibility of the conversion of inferred mineral resources to mineral reserves.
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, which includes, without limitation, 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 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 dis ruptions,
damage to equipment or otherwise; permitting, development, operations, expansion 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; labour and materials costs increasing on a basis consistent with
Orvana’s current expectations; and the availability of necessary funds to execute the Company’s plan. Without limiting the generality
of the foregoing, this news release also contains certain "forward -looking statements" within the meaning of applicable securities
legislation, including, without limitation, references to the results of the Company’s exploration activities, including but not limited to,
drilling results and analyses, mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities,
taxes, net present value, potential recoveries, design parameters, operating costs, capital costs, production data and economic
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potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned expl oration
programs; and the Company's general objectives and strategies.
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: the potential impact of the COVID-19 on the Company’s business and operations, including: our ability to continue operations;
our ability to manage challenges presented 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 our mines; the general economic, political
and social impacts of the continuing conflict between Russia and Ukraine, our ability to support the sustainability of our business
including through 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; fluctuations in the price of gold, silver and c opper;
the need to recalculate estimates of resources based on actual production experience; the failure to achiev e 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 t he El
Valle 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
successfully carry out development plans at Taguas; sufficient funding to carry out development plans at Taguas and to process the
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 abili ty 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; the challenges presented by COVID -19; fluctuating operational costs
such as, but not limited to, power supply costs; current and future environmental matters; 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 ar e
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.