Orvana Reports Q2 FY2023 Production and Provides Exploration Update
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For Immediate Release TSX:ORV
Date: April 17, 2023 #04-2023
ORVANA REPORTS Q2 FY2023 PRODUCTION
AND PROVIDES EXPLORATION UPDATE
TORONTO, ONTARIO, April 17, 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 second quarter of fiscal year 2023 (“Q2 FY2023), ended March 31, 2023.
Highlights
• Q2 FY2023 production of 14,470 gold equivalent ounces (11,599 gold ounces, 1.1 million copper
pounds and 35,000 silver ounces) (1)
• 3,072 m of infill drilling
• 882 m of greenfield drilling
Juan Gavidia, CEO of Orvana stated: “We are pleased to report consistent metal output for the quarter
and reiterate our gold and copper production guidance for the full year. We are excited our resource
exploration program continues to advance in Spain as planned, while gold price sits at an all-time highs
range”.
Q2 FY2023 Production Results
• 11,599 gold ounces produced, on track to meet fiscal year 2023 guidance of 46,000 - 51,000 Oz, with
higher throughput planned for the second half of the fiscal year when compared to the first half.
• 1.1 million copper pounds produced, on track to meet fiscal year 2023 guidance of 4,000 – 4,400 K lb
Q2 FY2023 Q1 FY2023 Q2 FY2022 FY 2023
Guidance
Ore milled (tones) 177,853 156,681 146,170
Gold equivalent (oz) (1) 14,470 13,815 10,595
Gold
Grade (g/t) 2.21 2.30 1.94
Recovery (%) 91.9 92.5 91.6
Production (oz) 11,599 10,711 8,341 46,000 - 51,000
Copper
Grade (%) 0.36 0.43 0.31
Recovery (%) 81.2 82.6 80.7
Production (K lbs) 1,144 1,216 797 4,000 - 4,400
Silver
Grade (g/t) 8.40 10.98 7.12
Recovery (%) 72.9 81.2 76.8
Production (oz) 35,000 44,903 25,703
(1) Gold equivalent ounces were calculated using the following average market prices:
Q2 FY2023: $1,888.63/oz Au, $22.56/oz Ag, $4.05/lb Cu
Q1 FY2023: $1,729.21/oz Au, $21.18/oz Ag, $3.63/lb Cu
Q2 FY2022: $1,873.63/oz Au, $23.94/oz Ag, $4.53/lb Cu
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Q2 FY2023 Drilling Update
Drilling Summary Infill (m) Greenfield (m) TOTAL (m)
Ortosa-Godán - 882 882
El Valle Boinás
Boinas South (SB) 1,991 - 1,991
Boinas East (BE) 1,081 1,081
TOTAL 3,072 882 3,954
Table 1. Orovalle Drilling Q2 FY2023
Greenfield Drilling Program
Ortosa-Godán
This Project is located three kilometers northwest of our Carlés mine, and within the same gold belt. The
exploration program focuses on two areas: Ortosa and Godán. In both cases, the mineral potential is in
relation with intrusives.
Ortosa West : 14 drill holes (5,716 m) were completed between August 2021 and November 2022,
intersecting mineralization related to N40ºE structures. This mineralization appears in sub- horizontal
(slightly dip to the East) calcic skarn bands with garnets, sulfides and hydrothermal alterations (See Figure
1). Drilling program will continue from new platforms located to the East of the defined structures looking
for the continuity of the mineralization in this direction.
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Figure 1: Longitudinal Section Ortosa West
Godán: 10 drill holes (3,018 m) were completed between 1981 and 2011, intersecting skarn mineralization
in the contact between the intrusive and the Devonian sedimentary rocks. The orebody is still open to the
North and to the South following the regional structure, and at depth. Two new drill holes were completed
in Q2 FY2023, with 882 meters intersecting skarn mineralization. Results are under evaluation and they
will be provided in due course.
Exploration strategy for the next months is focused on defining the ore potential in this area and looking
for a connexion with the Carlés deposit located on the other side of the synclinal (see Figure 2).
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Figure 2: Godán Plan View
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Lidia
This Project is located in the Navelgas Gold Belt, 20 km west from El Valle mine. This gold porphyry
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 (see intercepts in Figure 3).
Drilling program will focus on defining the mineralization continuity , completing two sections to the North
and to the South, targeting the extension at depth too (see Figure 3). Drilling will restart in Q4 FY2023,
with 500 meters planned, with the rest of the program occurring in FY2024.
Figure 3: Lidia Project Plan View
FY2023 Infill-Brownfield Drilling Program in Boinas
Drilling program is focused on Oxides and Skarns Inferred resources conversion to Measured- Indicated.
1,991 meters were completed in B oinás South and 1,081 meters were completed in Boinás East . Target
for next quarter is to continue resources conversion in Boinás East and Boinás South. An additional small
brownfield drilling campaign in Boinás East is targeting new skarn material.
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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.
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 FY2023 financials will be released mid-May, 2023.
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; estimates of future production (including without limitation, production guidance), operating
costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibili ty
studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic
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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 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 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 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 applicabl e 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 econom ic
potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned exploration
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 f actors
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 busine ss
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 production estim ates;
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; Orovalle’s ability to complete the permitting process of the
El Valle Tailings Storage Facility increasing the storage capacity; Orovalle’s ability to complete the stabilization project of the legacy
open pit wall; 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; EMIPA’s ability to complete the issuance
of the Bonds Program at Bolivia to commence the OSP; 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 f inancing
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 i n 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 are
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.