- On Track to Meet 2020 Production Guidance
- All Amounts in US Dollars Unless Otherwise Stated
First Quarter of Fiscal 2020 Highlights:
•Production of 17,786 gold equivalent ounces (15,815 gold ounces, 0.9 million copper pounds and 30,959 silver ounces);
•Cash Operating Costs ("COC") and All in Sustaining Costs ("AISC") of $1,207 and $1,370;
•Revenue of $29 million;
•EBITDA of $1.5 million;
•Capital expenditures of $1.8 million;
•Cash balance of $8.1 million as of December 31, 2019;
•Continuing focus on the development of final engineering and financing for the oxides stockpile project with anticipated processing operations to resume in FY2021.
TORONTO, Feb. 10, 2020 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") announced today financial and operational results for the first quarter of fiscal 2020 ("Q1 2020") for its El Valle and Carlés Mines operations in northern Spain (managed by the Spanish subsidiary "OroValle") and for its Don Mario Mine operations in Bolivia (managed by the Bolivian subsidiary "EMIPA").
The unaudited, condensed interim consolidated financial statements for Q1 2020 and Management's Discussion and Analysis related thereto are available on SEDAR and on the Company's website at www.orvana.com.
Juan Gavidia, CEO of Orvana Minerals stated: "Our exploration program at El Valle is providing exciting results, showing potential to continue extending the mine life; at Carlés the drilling campaign is starting, and we expect to provide positive results in the near future". Mr. Gavidia continued, "At Don Mario, the Company is focused on developing final engineering and financing for the Oxides Stockpile Project, and anticipates processing to resume in FY2021."
Q1 2020 Highlights:
• OroValle:
?Gold production of 13,722 ounces, compared to 16,185 ounces in fourth quarter of fiscal 2019. Production decrease was due to a combination of 12% lower throughput and 3% lower head grade.
?Copper production of 0.9 million pounds, compared to 1.1 million pounds in fourth quarter of fiscal 2019. Production decrease was due to a combination of 12% lower throughput and 10% lower head grade.
?Reduction in throughput was due to a three hundred percent increase in rainfall above the usual average for the months of November and December. Heavier than expected rains caused hauling and blending issues at the mill and mill maintenance was rescheduled to the second quarter.
?Twenty thousand tonnes of mined ore is now stockpiled and will be milled in the second quarter.
?On track to meet FY2020 production guidance.
• EMIPA:
?In the first quarter of fiscal 2020 the Company announced the temporary suspension of mining operations at the Don Mario Las Tojas open pit. The suspension was due to lower than expected ore-grades and operational mining dilution resulting in uneconomic unitary costs per ounce.
?Care & Maintenance Program implemented during the first quarter of fiscal 2020:
?Critical areas of the program are site security, environmental control, power generators maintenance, preventive maintenance of process plant and mine equipment, maintenance of camp facilities.
?Suspension program focused on maximized metal recoveries and infrastructure cleaning, preventing any damage to the circuits.
?Workforce restructuring included a reduction of 59 employees.
?Oxide Stockpile Project: The Company progressed with engineering and metallurgical studies to process the oxidized stockpile at Don Mario and anticipates moving forward with the development of a new sulphidization plant circuit to treat the mineral resource of 2.18 million tonnes with an average grade of 1.85 Au g/t; and approximately 386,950 oz of gold equivalent1. It is expected that the Oxide Stockpile Project will be in operation by FY2021.
Note 1: Cautionary Statement – Mineral resources that are not mineral reserves do not have demonstrated economic viability. The mineral resource for the oxides stockpile was prepared in compliance with National Instrument 43-101 and CIM guidelines, as set out in the Don Mario Mine Operation 2016 Technical Report dated January 27, 2017 and effective as of September 30, 2016 (the "2016 Report"). The 2016 Report was prepared on the assumption that the stockpile would be processed by floatation and would not be included in the carbon-in-leach circuit. However, during FY2018 and FY2019, the Company has been evaluating metallurgical alternatives to process the oxides stockpile, concluding that a sulphidization circuit would maximize the value of the stockpile. A copy of the 2016 Report is posted under the Company's profile on www.sedar.com. These mineral resources were estimated using a gold price of US$1,300 per ounce, copper price of US$3.00 per pound and silver price of US$18 per ounce, prices of which were used in the 2016 Report.
Selected Q1 2020 Consolidated Operational and Financial Information
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