Orvana Announces Drill Results and Provides an Operations Update at El Valle-Boinas/Carles Gold/Copper Mine, Northern Spain
TORONTO, ONTARIO -- (Marketwire) -- 09/22/11 -- Orvana Minerals Corp. (TSX: ORV) is pleased to announce drilling results and an operation update for its El Valle-Boinas/Carles ('EVBC') gold-copper mine in Northern Spain by Kinbauri Espana S.L.U. ('Kinbauri'), a wholly-owned subsidiary of Orvana Minerals Corp.
Underground drilling commenced last autumn and by the end of August, 12,351 metres have been completed (see January 20, March 24, and June 28, 2011 press releases for selected drill results). Whereas the focus of this drilling was for mine development, many of the holes were step-outs beyond known NI 43-101-compliant resources. Independent qualified persons for the purposes of NI 43-101 have been retained to update both the resources and reserves over the next two months.
At Black Skarn NW, both epithermal vein (11V1205) and skarn (11V1204) mineralization were encountered in an area not previously drilled; these drillholes will be offset at an opportune time in an attempt to define orebodies (visit the following link to view the map: http://www.orvana.com/projects/pdf/el-valle-black-skarn.pdf). At Carles NW, the drill holes penetrated mineralization about 100 metres below known resources along the downdip extension of the subvertical skarn. The Boinas East drillholes reported herein were step outs and the Carles North drill hole was for stope definition. A summary of selected results is shown in the table below.
Drillhole True
From, To, Inclination, Thickness, Au,
Hole Zone metres metres degrees metres gpt
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11BE1026 Boinas East 49.90 52.90 -79 2.22 3.14
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11BE1027 Boinas East no economic mineralization
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11BE1028 Boinas East 67.35 71.00 -70 3.03 4.28
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11BE1029 Boinas East 161.45 163.10 -42 1.11 2.80
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11V1204 Bl. Skarn NW 303.75 322.10 -35 7.16 3.95
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11V1205 Bl. Skarn NW 207.10 210.95 -25 3.35 8.49
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11N1032 Carles N. 133.55 162.50 -33 10.13 7.77
including 137.35 149.05 4.10 14.66
including 142.60 147.45 1.70 26.46
including 158.45 162.50 1.42 6.00
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11CNW1002 Carles NW 154.90 160.45 -10 3.16 3.96
including 158.00 158.85 0.48 13.00
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11CNW1003 Carles NW 213.80 224.00 -24 4.08 5.51
including 218.90 221.70 1.12 11.10
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11CNW1004 Carles NW 182.20 188.75 -15 2.55 7.76
Ag, Cu, Recovery, Resource
Hole Zone gpt % % Purpose Classification
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11BE1026 Boinas East 28.9 0.76 99.5 Step Out None
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11BE1027 Boinas East no economic mineralization
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11BE1028 Boinas East 25.2 0.65 95.4 Step Out None
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11BE1029 Boinas East 17.6 0.61 99.0 Step Out None
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11V1204 Bl. Skarn NW 34.4 0.65 99.1 Step Out None
(dewater)
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11V1205 Bl. Skarn NW 32.6 0.10 94.8 Step Out None
(dewater)
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11N1032 Carles N. 1.9 0.08 99.5 Stope Indicated
definition
including 1.0 0.00 99.5
including 1.0 0.00 99.6
including 7.8 0.48 99.3
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11CNW1002 Carles NW 2.7 0.07 99.7 Step Out None
including 10.7 0.36 100.0
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11CNW1003 Carles NW 5.9 0.29 99.2 Step Out None
including 13.2 0.47 99.5
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11CNW1004 Carles NW 1.2 0.00 93.1 Step Out None
Note: True thicknesses were determined graphically by measuring the distance
approximately perpendicular to the contacts. No values were capped.
Whereas the Black Skarn NW mineralization is principally hosted by subhorizontal to moderately-dipping skarns, the Carles NW mineralization is hosted by subvertical skarns. The epithermal vein drilled by 11V1205 in the Black Skarn NW area is a new discovery.
Although the two exploration drill holes at Godan encountered skarn and anomalous gold and silver, no ore-grade intercepts were encountered. The geologic team will evaluate the results in the context of future regional exploration.
August production was 2,641 ounces of gold, 5,000 ounces of silver, and 208,844 pounds of copper from an average daily throughput of 1,542 tonnes with head grades of 1.94 grams per tonne gold, 6.21 grams per tonne silver, and 0.30% copper. The commissioning of the mine is advancing positively. Throughput is better than the planned 1,400 tonnes per day, which throughput will increase to 1,900 tonnes per day when the shaft is completed in early 2012. Gold head grades should steadily increase over the next few months and 2012 monthly gold production is targeted at an average of 5,000 ounces per month.
More information related to the EVBC geology and mineralization can be found on the Company's website www.orvana.com.
QA/QC
Security measures were taken to ensure the integrity and validity of the mineralization and proximal rocks in the new drill core under the supervision of Santiago Gonzalez-Nistal, Chief Geologist, Kinbauri Espana S.L.U., a qualified person for the purposes of NI 43-101. The core was sampled based on lithologic and alteration considerations. Assays for the samples were analyzed at Kinbauri Espana SLU laboratory on site; pulps were sent to ALS Chemex for check analyses. The QA/QC protocol included internal and laboratory certified reference materials, blanks, duplicates and check assays. At the EVBC laboratory, a 30-gram sample was analyzed by fire assay methods for gold, and copper, silver, arsenic and antimony were analyzed by ICP-optical emission spectroscopy after an agua regia digestion. Also, a 30-gram sample was analyzed by fire assay methods for gold and a conventional ICP-AES analysis was used for the analysis of 35 elements at ALS Chemex.
Qualified Person
The technical information contained in this document was prepared under the supervision of Bill Williams, Ph.D., VP Corporate Development, a qualified person for the purposes of NI 43-101.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles gold-copper project in northern Spain, now in production. Orvana also owns the Don Mario Mine in Bolivia where a newly completed leaching-precipitation-flotation plant is processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its major Copperwood copper project in Michigan, USA. 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.
Forward-looking statements relate to, among other things, all aspects of the development of the Upper Mineralized Zone ('UMZ') deposit at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles project in Spain and the Copperwood project in Michigan and their potential operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting time lines; statements and information regarding future feasibility studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future production costs; 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 set forth herein and in the Company's most recently filed Annual Information Form, 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 UMZ deposit, El Valle-Boinas/Carle's and the Copperwood projects 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; 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 develop the UMZ deposit, the Copperwood project or the El Valle-Boinas/Carle's project; 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; 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 Orvana's Management's Discussion and Analysis for the period ended September 30, 2009 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's Annual Information Form 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.
Contacts:
Orvana Minerals Corp.
Natalie Frame
Investor Relations
(289) 200-7640
Orvana Minerals Corp.
Roland Horst
Chief Executive Officer
(416) 369-1629
Orvana Minerals Corp.
Carlos Mirabal
COO and President
(416) 369-1629
Orvana Minerals Corp.
Dr. Bill Williams
Vice President, Corporate Development
(480) 522-7925
ask_us@orvana.com
www.orvana.com
Kinbauri Espana S.L.U.
Agne Ahlenius
Director General