Mr. Juan Gavidia reports
ORVANA REPORTS FISCAL YEAR 2021 CONSOLIDATED PRODUCTION OF 63,108 GOLD EQUIVALENT OUNCES AND PROVIDES DRILLING UPDATE
Orvana Minerals Corp. has provided production results for the fourth quarter of fiscal year 2021 and full fiscal year 2021 and has provided a drilling update for Q4 2021 at Orovalle, Spain.
Juan Gavidia, chief executive officer of Orvana, stated: "The Orvana team is glad to have delivered another strong operating year, allowing our strategic developments in Argentina and Bolivia to advance. The minor production pause resulting from the temporary suspension of the TSF pumping circuit in Orovalle was dealt with in an efficient and expeditious manner, and we anticipate that we will recoup the delayed production volume in the following months. We look forward to a successful fiscal year 2022, both with a reliable Orovalle operation and with positive developments in our two other international assets."
FY 2021 production highlights:
Consolidated production of 63,108 gold equivalent ounces (47,413 gold ounces, 6.3 million copper pounds and 166,427 silver ounces);
Metal production was slightly below guidance mainly due to the mid-August plant stoppage caused by the assessment of corrective measures to the tailings pumping circuits, in turn, impacted by the failure of a legacy open-pit wall; underground mining continued operating throughout the plant stoppage, generating a stockpile that will be the basis to catch up FY 2021 delayed production into FY 2022.
Q4 FY 2021 operational results:
Metal production of 8,621 gold ounces, 1.3 million copper pounds and 32,563 silver ounces;
Q4 FY 2021 metal production was negatively impacted by the temporary stoppage of activities at the plant in August, 2021;
5,351 metres of diamond drilling, pursuant to aggressive resources annual program; highlights include:
28.22 grams per tonne over 11.00 metres in East Breccia;
13.86 grams per tonne gold, 129 grams per tonne silver and 3.00 per cent copper over 3.30 metres in Boinas South;
9.35 grams per tonne gold and 0.83 per cent copper over 5.1 metres in Carles West.
FY 2022 outlook:
Orovalle -- strong cash flow generation based on stable production plan; continue exploration drive to keep replenishing and expanding the resource base; renew five-year life-of-mine plan, as has been the case for the last five years;
Taguas -- issue new PEA (preliminary economic assessment) in Q1 FY 2022; start infill drilling program, required to develop prefeasibility study, in Q1 FY 2022, subject to financing completion;
EMIPA -- make decision on oxides stockpile project in FY 2022; subject to approval and financing, construction planned for FY 2023, with a three-year production life between 2024 and 2026; scoping studies for a subsequent project regarding reprocessing tailings will be under way in FY 2022; comprehensive exploration program started in FY 2021 to continue throughout FY 2022, with non-drilling field and cabinet work.
FY 2022 guidance will be released with FY 2021 year-end financials.
El Valle Boinas -- Carles Q4 FY 2021 drilling update
Q4 FY 2021 drilling program focus continued on inferred material conversion with a total of 5,351 metres drilled. Detail of areas and drilled metres are in an attached table and full detail of the drill program can be found in another attached table.
Highlights per area:
East Breccia: 11.00 metres with 28.22 grams per tonne gold; drilling advancing to the north converting inferred resources into measured and indicated and getting better grades as part of the objectives set for FY 2021;
Boinas South: 3.30 metres with 13.86 grams per tonne gold, 129 grams per tonne silver and 3.00 per cent copper; mineral expansion is open upward with copper mineralization at depth and to the north;
Carles West: 5.05 metres with 9.35 grams per tonne gold and 0.83 per cent copper; drilling campaign will be completed in Q1 FY 2022 targeting inferred resources conversion;
Boinas East: stope definition drilling was executed according to mine production plan;
A208 East: 724 metres of exploration drilling were completed in the quarter. Results are under review and will be disclosed shortly.
East Breccia (BX)
An infill drilling program is advancing to the north, converting inferred resources into measured and indicated resources. Mineralization consists of zones with high gold grades and variable copper content in a shear zone that is verticalized toward the north. The structure is open at depth.
Boinas South (SB)
Drilling campaign continue focused on the downdip open area, targeting skarn material with higher gold and copper grades. The structure remains open at depth and to the north. An infill drilling program will be completed in FY 2022, connecting the Black Skarn area around the intrusive contour.
Carles West (CW)
Carles West is formed by several skarn bands between two-metre and 10-metre width, with an extension of 100 metres northwest-southeast and dipping 65 degrees northeast. It is located in the west part of the Carles deposit, where the mineralization is developed in the contact between a granodioritic intrusive, sandstones (Furada formation -- Upper Silurian) and limestone (Raneces formation -- Devonian).
A total of 4,409 metres in 28 drill holes were completed before 2007. In the second half of FY 2021, an infill drilling campaign was started in order to convert inferred resources into measured and indicated. Up to the end of September, 2021, 2,738 metres of 4,000 metres planned were executed in 13 drill holes. Several parallel calcic skarn bands (pyroxene and garnet skarn) were intersected, mineralized with magnetite, arsenopyrite, chalcopyrite and bornite. It is expected that drilling program will be concluded in Q1 FY 2022.
The analytical work for the brownfield and infill drilling programs is being performed by the Orovalle laboratory, which is ISO 9001:2015 certified. 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 105 C and then crushed through a jaw crusher to 95 per cent less than six millimetres. The coarse-crushed sample is further reduced to 95 per cent less than 425 microns using an LM5 bowl-and-puck pulverizer. An Essa rotary splitter is used to take a 450-gram to 550-gram subsample of each split for pulverizing. The remaining reject portion is bagged and stored. The sample is reduced to a nominal minus-200 mesh using an LM2 bowl-and-puck pulverizer; 140-gram subsamples 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, 30-gram samples are analyzed for gold by fire assay with an atomic absorption spectroscopy (AAS) finish and two-gram samples for silver, arsenic, bismuth, copper, mercury, lead, antimony, selenium and zinc by ICP optical emission spectroscopy (ICP-OES) after an aqua regia digestion.
The reported work has been completed using industry-standard procedures, including a quality assurance/quality control 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 Menendez, a qualified person for the purposes of National Instrument 43-101 and an employee of Orovalle Minerals SL, a subsidiary of Orvana.
Q4 FY 2021 financial highlights will be released with the year-end financials, expected mid-December, 2021.
About Orvana Minerals Corp.
Orvana is a multimine gold-copper-silver company. Orvana's assets consist of the producing El Valle and Carles 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.
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