Mr. Juan Gavidia reports
ORVANA FILES 2021 ANNUAL INFORMATION FORM AND NI 43-101 REPORT FOR DON MARIO; AND ANNOUNCES UPDATED PEA FOR TAGUAS
Orvana Minerals Corp. has filed its annual information form for the year ended Sept. 30, 2021, and independent National Instrument 43-101 report on the Don Mario tailings reprocessing project, eastern Bolivia. The company is also pleased to provide a summary of its updated preliminary assessment report for the Taguas project, which will be filed on SEDAR within 45 days from the date hereof.
Juan Gavidia, chief executive officer of the company, stated: "Fiscal 2021 has proven to be a fantastic value creation year for our shareholders, with a year-on-year 205-per-cent increase in resources tonnage, growing from 52 million tonnes to 159 million tonnes. Our persistent exploration investment is paying off spectacularly this year, allowing us to keep pursuing development of our three assets with a much larger mineral resource base."
Don Mario tailings reprocessing report
Orvana retained DGCS SA to prepare a technical report for the Don Mario tailings reprocessing project in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
The company, through its wholly owned subsidiary EMIPA, is the owner of the Don Mario operation, a set of assets that includes the Las Tojas orebody and the previously mined-out lower mineralized zone, upper mineralized zone and Cerro Felix mines, plus the processing plant and the tailings storage facility. Operations at Don Mario were temporarily suspended in the first quarter of fiscal 2020 and are currently in care and maintenance.
Between April and June, 2018, EMIPA executed a drilling program in the Don Mario tailings storage facility to determine the tailings resources. Two extraction methods have been considered to mine the tailings accumulated as a mixed and escalated method. The considered methods are mechanical extraction and hydraulic extraction. The treatment considered is CIL (carbon-in-leach)/CIC (carbon-in-circuit) flotation to take advantage of potential synergies with the oxide stockpile project.
The projected mine life ascends to approximately 3.8 years at a mining rate of 2.4 million tonnes per year, considering the mineral resource estimate at 0.3 gram per tonne gold cut-off.
Gino Zandonai of DGCS Exploration and Mining Consulting supervised the preparation of the Don Mario tailings reprocessing report, is independent of the company and a qualified person as defined by National Instrument 43-101, and has reviewed and approved the technical disclosure reported herein.
2021 Taguas PEA
Orvana retained Saxum Engineered Solutions, from its Argentine office, in co-operation with Kappes, Cassiday & Associates (KCA) from Reno, Nev., and NCL from Chile, to prepare a preliminary economic assessment for the Taguas project.
The Taguas property is host to a high-sulphidation epithermal gold-silver system hosted in altered Tertiary-age rhyolite volcaniclastic rocks. Supergene-oxidized gold-silver mineralization occurs on the south half of the property. The oxide gold-silver mineralization consists of subvertical, northeast-striking mineralized structures in an envelope of lower-grade mineralization. The high-grade zones consist of relatively continuous mineralization with gold grades ranging from 0.2 g/t Au to over 4.0 g/t Au and 10 g/t Ag to over 50 g/t Ag. Oxidation extends from surface to approximately 100 metres to 200 metres below surface. The present PEA refers only to this oxidized gold-silver mineralization occurring near surface in Cerros Taguas.
Pretax NPV (net present value) of $103.7-million (U.S.) at 8.0-per-cent discount rate;
Pretax internal rate of return (IRR): 27.4 per cent;
After-tax NPV of $56.9-million (U.S.) at 8.0-per-cent discount rate;
After-tax IRR: 20.2 per cent;
Payback period (from start of operations): 2.9 years;
Initial capital: $141.2-million (U.S.);
LOM (life-of-mine) capital: $147.8-million (U.S.);
Estimated average LOM all-in sustaining costs (AISC): $915 (U.S.) per Au ounce payable.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA will be realized. The PEA study is conceptual in nature, and the PEA mine plan is based on 100 per cent in inferred resources.
PEA mining and processing
The mining method proposed for the property in the PEA is conventional truck-and-shovel open-pit mining. The proposed recovery process will be crushing of mineralized material at a rate of 15,000 tonnes per day, stacking in 10-metre lifts on a permanent heap leach, and gold and silver recovery from the heap leach pregnant solution in a Merrill-Crowe recovery plant, where gold and silver will be precipitated to produce dore gold bars.
Nestor Lares, chief operating officer of Saxum, was in charge of the Argentine team, as well as to engage and co-ordinate the work of Caleb Cook of KCA and Carlos Guzman of NCL, and their respective teams, in the preparation of the PEA. Mr. Cook and Mr. Guzman are independent of the company, both are qualified persons as defined by National Instrument 43-101, and they have reviewed and approved the technical disclosure reported herein. The PEA will be filed on SEDAR within 45 days from this news release.
Once filed, the 2021 Taguas PEA will replace the previous preliminary economic assessment dated May 14, 2019, and filed on SEDAR on July 9, 2019.
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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