Orvana Reports Q2 FY2022 Production, and announces
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Date: April 15, 2022 #08-2022
Orvana Reports Q2 FY2022 Production, and announces
196.50 meters @ 0.53 g/t Au intercept at Greenfield Project in Orovalle, Spain
TORONTO, ONTARIO, April 15, 2022 - 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 second
quarter of fiscal year 2022 (“Q2 FY2022”), being the period ended March 31, 2022.
Highlights
• 0.53 g/t Au over 196.50 meters intercepted in Lidia, Orovalle, Spain
• Q2 FY2022 production of 10,595 gold equivalent ounces
• 6,642 m of infill drilling
• 1,447 m of greenfield drilling
Juan Gavidia, CEO of Orvana: “ Our exploration program continues producing excellent outcomes, reinforcing
Orvana’s internal growth potential to increase resources in Spain.”
He added: “This has been a challenging quarter in terms of production in Spain due to the COVID -19 impact
on the workforce in the first half of the quarter, supply chain strains all around Europe affecting the availability
of spare parts, and the nationwide transport strike in March. Since early April supply chain channels have been
reactivated, production restarted, and we are in the process of reviewing and optimizing the production plan for
the second half of the year”.
Q2 FY2022 Production Results
Q2 FY2022 Q1 FY2022 Q2 FY2021 FY 2022
Guidance
Ore milled (tones) 146,170 176,288 159,603
Gold Equivalent (oz) 10,595 15,921 14,197
Gold
Grade (g/t) 1.94 2.27 2.31
Recovery (%) 91.6 91.1 90.9
Production (oz) 8,341 11,731 10,785 48,000 - 53,000
Copper
Grade (%) 0.31 0.45 0.47
Recovery (%) 80.7 83.7 82.3
Production (K lbs) 797 1,451 1,355 5,800 - 6,500
• Production of 10,595 gold equivalent ounces, a 33% decrease from Q1 FY2022. Production impacted by
the temporary operations stoppage in March as a result of the nationwide transport strike in Spain.
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• The Company is in the process of reviewing its operations and costs as a result of the temporary stoppage
in March, and expects to be in a position to provide a more comprehensive update of the impacts on
operations as part of the Q2 FY2022 reporting process in May.
Q2 FY2022 Exploration Drilling
Summary (all in meters) Infill Greenfield TOTAL
Ortosa-Godán - 426 426
Lidia - 1,021 1,021
El Valle Boinás
Boinas South (SB) 2,802 - 2,802
Breccia East (BX) 3,242 - 3,242
Carles West (CW) 598 - 598
TOTAL 6,642 1,447 8,089
Lidia
Orovalle’s gold porphyry Lidia Project is located in the Navelgas Gold Belt, 20 km from El Valle mine.
Lidia occurs within the easternmost 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.
The drilling program started in fiscal 2021 with 1,017 meters drilled. The second phase started in December
2021, focused on defining the continuity of Au mineralization into the intrusive. Four drill holes, totaling 1,405
meters were drilled in the first half of FY2022, confirming the presence of gold in the granodiorite, averaging
0.53 g/t Au over 196.50 meters (DDH 22LIDIA04).
The Company expects to continue the program in Lidia in September 2022 drilling two sections, t o the North
and to South from current drilled area respectively, in order to prove continu ity of Au mineralization in N -S
strike and at depth.
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Figure 1: Lidia Project
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Figure 2: Lidia section
Intercepts
DDH From (m) To (m) Thick* (m) Au(gpt)
21LIDIA02 234.30 236.40 2.10 0.68
21LIDIA02 316.70 318.70 2.00 0.59
21LIDIA02 332.90 334.90 2.00 0.56
21LIDIA02 392.20 395.50 3.30 3.14
21LIDIA02 505.20 508.00 2.80 0.92
21LIDIA03 2.00 6.50 4.50 0.43
21LIDIA03 8.50 10.50 2.00 0.54
21LIDIA03 38.50 40.50 2.00 0.46
21LIDIA03 76.50 94.50 18.00 0.63
21LIDIA03 224.40 226.40 2.00 0.58
21LIDIA03 275.20 279.20 4.00 0.41
21LIDIA03 299.20 398.50 99.30 0.48
22LIDIA04 36.00 39.10 3.10 0.62
22LIDIA04 63.60 67.10 3.50 0.70
22LIDIA04 73.10 74.60 1.50 0.51
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22LIDIA04 96.10 292.60 196.50 0.53
22LIDIA04 370.50 371.50 1.00 0.56
22LIDIA04 375.50 377.50 2.00 0.52
22LIDIA04 399.90 405.00 5.10 0.41
22LIDIA04 412.00 413.00 1.00 0.83
22LIDIA05 Pending results
* Not true widths
Ortosa-Godán
Ortosa-Godán Project is located three kilometers northwest of the Carles mine, at the same gold belt.
Orovalle started an exploration drilling program at the end of August 2021 in order to define the skarn continuity
and check the oxide mineralization related to N40ºE structures. The Company disclosed first quarter fiscal 2022
results in the press release dated January 18, 2022. During Q2 FY2022, 426 meters were completed in one
drill hole. Results from drill hole samples are pending, the information will be provided in due course.
The drilling campaign is still in progress, targeting to confirm the continuity of the mineralization intersected in
drillhole 21ORW05: 20.66 g/t over 2.9 meters.
El Valle Boinás
The drilling program continued with its focus on upgrading inferred resources, with a total of 6,642 m of infill
drilling completed in Boinas South and Breccia East.
Carlés
598 meters were drilled during Q2 FY2022 completing the infill drilling program. Around 200 Kt of Inferred
resources were converted into Measured and Indicated resources as result of the infill drilling campaign
completed in Carles West.
Quality Control
Greenfield drill hole samples were sent to an external laboratory (ALS Laboratory) for analyses. Infill drill hole
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 bowl -
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 (in Orovalle Laboratory) 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.
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• 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 aqua regia
digestion. 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.
Financial Performance
Q2 FY2022 financials will be released mid-May, 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” 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 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, in the case of Don Mario, the processing of the
mineral stockpiles 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; and future financial
performance, including the ability to increase cash flow and profits; future financing requirements; 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, which includes, without limitation, as particularly set out in the notes accompanying the Company’s most recen tly 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 disr uptions
affecting operations, w hether 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 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 presentation also contains certain "forwar d-looking
statements" within the meaning of applicable securities legislation, including, without limitation, statements with respect to the results of the
preliminary economic assessment, including but not limited to the 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 potential; the timing and costs for production decisions; permitting timelines and requirements; exploration
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and planned exploration programs; the potential for discovery of additional mineral resources; timing for completion of a feasibility study;
timing for first gold production at Taguas; processing the stockpile at El Valle in connection with the metal production catc h-up program;
identifying additional resources beyond the replenishment of annual depletion rates at El Valle for the extension of mine life; issuing an
expanded resource PEA for Taguas in a timely manner; completion of the infill drilling program at Taguas; making a decision on the oxides
stockpile at Don Mario in a timely manner; 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; 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 copper; the need to
recalculate estimates of resources based on actual production experience; the failure to achieve pr oduction 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 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 Com pany’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; 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 forw ard-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 m ade 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.