Orvana reports solid Q1 FY2022 production results, and announces
1
Date: January 18, 2022 #01-2022
Orvana reports solid Q1 FY2022 production results, and announces
2.9 meters @ 20.66 g/t Au intercept at Greenfield Project in Orovalle, Spain
TORONTO, ONTARIO , January 18, 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 first quarter of fiscal year 2022 (“Q1 FY2022), being the period ended December 31, 2021.
Highlights
• Q1 2022 production of 15,921 gold equivalent ounces – a 32% sequential increase
• 7,022 m of infill and brownfield drilling in Orovalle, Spain
• 1,415 m of greenfield drilling in Orovalle, Spain
• 20.66 g/t Au over 2.9 meters intercepted in Ortosa-Godán, Orovalle, Spain
Juan Gavidia, CEO of Orvana stated: "We are encouraged by the most recent intercepts in the west zone
of Ortosa-Godán, which confirm the presence of a mineralized structure in an area previously undrilled.
The Company has made a strong commitment to organic growth in Orovalle through brownfield and
greenfield exploration, and results such as the ones released today continue to demonstrate that this
investment is paying off with the potential to further grow our mineral resources ”.
Q1 2022 Production Results
• Production of 15,921 gold equivalent ounces, a 32% increase from Q4 2021
• 11,731 gold ounces produced, on track to meet fiscal year 2022 guidance of 48,000 - 53,000 Oz.
• 1.5 million copper pounds produced, on track to meet fiscal year 2022 guidance of 5,800 – 6,500 Oz.
Q1 FY2022 Q4 FY2021 Q1 FY2021 FY 2022
Guidance
Ore milled (tones) 176,288 134,626 180,380
Gold Equivalent (oz) 15,921 12,042 18,398
Gold
Grade (g/t) 2.27 2.18 2.60
Recovery (%) 91.1 91.3 92.6
Production (oz) 11,731 8,621 14,127 48,000 - 53,000
Copper
Grade (%) 0.45 0.52 0.63
Recovery (%) 83.7 80.9 81.6
Production (K lbs) 1,451 1,253 2,044 5,800 - 6,500
2
Q1 FY2022 Drilling Update
Drilling Summary Infill (m) Brownfield (m) Greenfield (m) TOTAL (m)
Ortosa-Godán - - 1,031 1,031
Lidia - - 384 384
El Valle Boinás
Boinas South (SB) 2,484 - - 2,484
Boinas East (BE) 1,486 - - 1,486
Breccia East (BX) 1,117 - - 1,117
A208 East (E2) - 492 - 492
Carles West (CW) 1,444 - - 1,444
TOTAL 6,530 492 1,415 8,437
Table 1. Orovalle Drilling Q1 FY2022
Ortosa-Godán
Ortosa-Godán Project is located close to Carlés mine, three kilometers northwest and into the same gold
belt. Different exploration works were carried out before 2011 including airborne geophysics,
geochemistry, rock sampling and drill holes intersecting skarn mineralization (see Figure 1)
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. Six drill holes totaling 2,072 m
were completed in this Project up to date. T he first four drill holes were focused on defin ing skarn
mineralization at depth and in N-S direction. Calcic skarn with sulfides was intersected in several bands.
Intercepts are shown in table below.
The last two drill holes were planned to intersect mineralization related with N40ºE structures. Drill hole
21ORW05 intercepted 2. 9 mts with 20.66 g/t Au in a undrilled area. 21ORW06 was completed to the
South from previous one and sample assays are pending (see Figure 2)
The drilling campaign will continue in the second quarter of fiscal year 2022 targeting the establishment of
continuity of the mineralization intersected in 21ORW05.
3
Figure 1: Ortosa-Godán Project
4
Figure 2: Ortosa West Intersections
Intercepts
Zone DDH From (m) To (m) Thick (m) Au(gpt)
ORT W 21ORW01 256.75 259.65 2.90 2.15
ORT W 21ORW02 318.40 320.35 1.95 0.52
ORT W 21ORW03 59.20 59.85 0.65 2.60
ORT W 21ORW03 246.55 248.00 1.45 1.59
ORT W 21ORW03 357.00 357.60 0.60 0.87
ORT W 21ORW04 No intercepts Au >0.5 g/t
ORT W 21ORW05 256.50 259.40 2.90 20.66
ORT W 21ORW05 266.00 268.00 2.00 0.62
ORT W 21ORW05 324.10 325.10 1.00 0.76
ORT W 21ORW06 Pending results
* Not true widths
5
Quality Control
21OWR01 and 21ORW02 ddh samples were analyzed by the Orovalle laboratory, which is ISO 9001:2015
certified. Drill holes 21ORW03, 21ORW04, 21ORW05 and 21OWR06 samples were sent to an external
laboratory (ALS Laboratory) for analyses.
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 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.
Lidia
Orovalle’s Lidia Project is located in Navelgas Gold Belt. The program started in fiscal 2021, with a total
1,017 drilled in the year. Second phase of program started in December 2021, with 384 meters drilled in
the month, and will be completed in the second quarter of fiscal 2022. Information is under evaluation and
results will be provided in due course once completed the second phase.
El Valle Boinás
Orovalle’s main operation Q1 FY2022 drilling program continued with its focus on upgrading Inferred
resources, with a total of 5,086 m of infill drilling. Further 492 m of brownfield drilling were completed to
define the continuity of the recently discovered E2 structure to the North. The drilling program for next
months will be in line with this quarter.
Carlés
1,444 meters were completed during de first quarter of fiscal 2022 . It is expected to complete the infill
program in the second quarter.
Financial Performance
Q1 FY2022 financials will be released mid-February, 2022.
6
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 statement s that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (of ten, 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 opt imize 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 inform ation regarding future feasibility
studies and their results; future 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 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 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 accur acy 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 "forward- 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 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 conne ction with the metal production catch- up program; identify ing 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 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; 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 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 abilit y to
7
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 anci llary 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 Mar io; 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; 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.