Orvana Reports Third Quarter Record GOLD Production
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For Immediate Release TSX:ORV
Date: July 17, 2018 #08-2018
ORVANA REPORTS THIRD QUARTER RECORD GOLD PRODUCTION
TORONTO, ONTARIO, July 17, 2018 - Orvana Minerals Corp. (TSX:ORV) (the “Company” or “Orvana”)
is pleased to provide production results for its Spanish and Bolivi an operations for the third quarter of fiscal
2018 (“Q3 2018”), featuring consolidated gold production of 26,761 ounces, an 8% increase in production
compared to the previous quarter.
Q3 2018 Highlights
El Valle Mine (Spain):
o Gold production increased by 11% compared to Q2 2018;
o Gold grade remained steady at 3.36 g/t from previous quarter;
Don Mario Mine (Bolivia):
o Completed first full quarter of production from Ce rro Felix satellite deposit, achieving gold production
of 9,916 ounces and gold recovery of 92.4%;
Consolidated Results:
o Exceeded high end of FY 2018 copper production guidance; and
o Continued increased gold production quarter-over-quarter during FY 2018.
Q3 2018 Q2 2018 YTD 2018 FY 2018
El Valle Don Mario Total El Va lle Don Mario Total Total Guidance
Operating Performance
Ore milled (tonnes) (dmt) 169,958 176,400 346,358 150,966 178,698 329,664 987,444
Gold Equivalent
Production (oz) 21,357 9,968 31,325 19,022 12,883 31,905 93,872
Gold
Grade (g/t) 3,36 1.90 2.62 3.36 1.84 2.54 2.57
Recovery (%) 91.8 92.4 92.1 92.9 91.3 92.2 91.4
Production (oz) 16,845 9,916 26,761 15,139 9.649 24,788 74,721 110,000 – 120,000
Copper
Grade (%) 0.51 0.51 0.51 0.62 0.57 0.48
Recovery (%) 81.6 81.6 80.4 50.3 63.0 66.5
Production (‘000 lbs) 1,575 1,575 1,372 1,237 2,609 6,943 6,100 – 6,800
Juan Gavidia, Orvana’s CEO stated, “At El Valle, quarterly production continues to consistently increase as a
result of our successf ul strategy of deploying a higher oxide or e mix process in the mill, supported by the
ongoing ramp-up of mechanical advance. Gold production at Don Mario was impacted by low grades in the
upper level of Cerro Felix, higher gold grades are expected as mining moves to the lower levels of the pit”.
Production Highlights – El Valle Mine
Gold production at El Valle underground operations was 16,845 ounces, an increase of 11% compared to
15,139 ounces of gold produced in Q2 2018;
Copper production wa s 1.6 million pounds, compared to 1.4 m illion pounds in Q2 20 18, an increase of
15%;
Ore throughput in the mill was 169,958 dmt comprised of 39% oxide ore, an increase of 13%, compared
to 150,966 dmt in Q2 2018;
Mechanical advance rates in the oxides mining zo nes increased by 24% compared to Q2 2018, yielding
1,919 meters of development in Q3 2018. The increased rates continue to position the mine to deliver the
requisite oxide ore tonnage for the mill.
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Production Highlights – Don Mario Mine
Gold production at the Don Mario open pit operations , was 9,916 ounces, an increase of 3% compared to
9,649 ounces in Q2 2018. Ore production was impacted by low grades in the upper level of Cerro Felix.
Higher grades are expected as the lower pit areas are mined in the next quarter;
Gold grade of 1.90 g/t was 3% higher than 1.84 g/t in Q2 2018;
There was no copper production in Q3 2018 as the flotat ion circuit was shut down at the end of previous
quarter.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana’s operating assets consist of the producing El Valle
and Carlés gold-copper-silver mines in northern S pain and the producing Don Mario gold mine in Bolivia.
Additional information is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Joanne Jobin
Investor Relations Officer
T: 647 964 0292
Cautionary Statements - Forward-Looking Information
Certain statements in this information constitute forward-look ing 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, projec tions, objectives, assumptions, potentials, futu re events or performance (often, but not al ways, 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 fo rward-looking
statements.
The forward-looking statements herein relate to, among other th ings, 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 including specifically, but not limited
to in the case of Don Mario, the completion of the major ta ilings storage facility expansion, t he mining of the Cerro Felix dep osit, 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, op erating
costs and capital expenditures; mineral res ource and reserve estimates; statements and information regarding future feasibility studies
and their results; future transactions; fu ture metal prices; the ability to achiev e additional growth and geographic diversific ation; 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 tha t, while considered reasonable b y
the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncerta inties
and contingencies. The estimates and assumptions of the Company cont ained or incorporated by reference in this information, whi ch
may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in Orvana’s most recen tly 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 disrup tions
affecting operations, whether due to labour disruptions, supply disruptions, power di sruptions, damage to equipment or otherwis e;
permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent with the Company’s current
expectations; political developments in any ju risdiction in which the Company operates being consistent with its current expect ations;
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;
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 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 an ticipated
events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include fl uctuations
in the price of gold, silver and copper; the need to recalculat e 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 o f qualified
personnel; the Company’s ability to obtain and maintain all nece ssary 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 Don Mario and/or ability to resume long-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 t hat 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 i n political,
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social or economic conditions in the count ries in which the Company operates; general economic conditions worldwide; and the ri sks
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 refe rence should also be made to t he Company’s Disclosures for a
description of additional risk factors.
Any forward-looking statements made in this information with respect to the anticipated develop ment and exploration of the Comp any’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, belie fs 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, projec tions, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-lo oking
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.