Orvana Continues to Deliver Results in the First Quarter 2015 and Reaffirms 2015 Production Guidance

TSX:ORV

• Production of 22,195 ounces of gold and 7.0 million pounds of copper, an increase of 18% and 48%, respectively, compared with the first quarter of fiscal 2014
• Gold equivalent production of approximately 41,545 ounces
• Cash of $18.1 million and total debt of $3.5 million as at December 31, 2014 

TORONTO, Jan. 16, 2015 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to provide the following estimated operating and financial performance results for the EVBC Mine in Spain and the Don Mario Mine in Bolivia for the first quarter of fiscal 2015.  Dollar amounts are in U.S. dollars unless stated otherwise.

Operating and Financial Performance
Orvana produced 22,195 ounces of gold in the first quarter of fiscal 2015, an increase of 18% compared with the first quarter of fiscal 2014. The focus on grade optimization at EVBC continued. An increase in average grade processed through the mill of 37%, partially off-set by a decrease in tonnes milled resulted in an increase in gold production of 9%. Gold production at the Don Mario Mine increased by 42% primarily as a result of mining a planned higher grade zone of the mine.

Orvana produced approximately 7.0 million pounds of copper in the first quarter of fiscal 2015, an increase of 48% compared with the first quarter of fiscal 2014. Copper production at EVBC increased by 47% primarily as a result of higher grade mined and milled. Higher recoveries in the flotation circuit due to processing higher quality sulphides resulted in an increase in copper production at the Don Mario Mine by 49%.

Orvana is reporting consolidated estimated COC and AISC (by-product) per ounce of gold sold in the first quarter of fiscal 2015 of $700 and $980, respectively, compared with COC and AISC (by-product) of $656 and $948, respectively, in the first quarter of fiscal 2014. The positive impact on unit costs of higher gold sales volumes in the quarter was off-set by lower by-product revenue from copper and silver compared with the first quarter of fiscal 2014 due to lower metals prices.

Orvana is maintaining its production guidance for fiscal 2015 of between 82,000 to 94,000 ounces of gold, 20 to 23 million pounds of copper and 550,000 to 680,000 ounces of silver. The Company continues to investigate optimization opportunities at its operations in order to further reduce cash costs for fiscal 2015.

Balance Sheet Update
On November 30, 2014, the Company repaid the final outstanding principal payment of $8.0 million under its long-term debt arrangement relating to EVBC, two years ahead of schedule. On December 16, 2014, the Company received the additional $7.5 million cash payment, which includes interest of $0.5 million relating to the sale of the Copperwood Project. The Company's cash position at December 31, 2014 was $18.1 million and its debt position was $3.5 million associated with the Don Mario Mine.

First Quarter Filing Date and Conference Call Information
Orvana plans to SEDAR file its unaudited financial statements and management, discussion and analysis report for the first quarter of fiscal 2015 as well as release highlights of its first quarter results after market on Wednesday, February 4, 2015. A conference call to discuss these results will be held on Thursday, February 5, 2015 at 10:00 a.m. Eastern Time by Mr. Michael Winship, President and CEO, Ms. Daniella Dimitrov, CFO, and Mr. Neil Ringdahl, COO. Information relating to the call is set out on Orvana's website at www.orvana.com.

About Orvana
Orvana Minerals is a multi-mine gold and copper producer. Orvana's operating assets consist of the EVBC gold-copper mines in northern Spain and the copper-gold-silver Don Mario Mine in Bolivia. Additional information is available at Orvana's website (www.orvana.com).

Forward Looking Disclaimer
Certain statements in this press release 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 potential to extend EVBC's mine life beyond the disclosed estimated life of mine; Orvana's ability to optimize its assets to deliver shareholder value; Orvana's ability to optimize production at the EVBC Boinás Mine in Spain; the expected costs associated with the suspension of mining activities at EVBC Carlés Mine in Spain; the Company's ability to emerge stronger from the turnaround work executed at EVBC in 2014; 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; 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 Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions and risks set forth herein and in the Company'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 the EVBC and Don Mario Mines 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; 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 anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include 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; variations in the costs associated with the suspension of mining at Carlés; 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 EVBC Mines and/or the Don Mario Mine; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to obtain financing when required on terms that are acceptable to the Company; the Company's ability to execute on its strategy; 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; and the risks identified in the Company 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 reference should also be made to the Company Disclosures for a description of additional risk factors.

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.

SOURCE Orvana Minerals Corp.