20:08:19 EDT Mon 03 Oct 2022
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Orvana Minerals loses $1.81-million (U.S.) in Q2

2022-08-10 20:19 ET - News Release

Mr. Juan Gavidia reports


Orvana Minerals Corp. has released its consolidated financial and operational results for the quarter ended June 30, 2022.

This news release should be read in conjunction with the company's management's discussion and analysis, and the unaudited financial statements and notes to the unaudited financial statements, for the corresponding period, which have been posted on the Orvana's SEDAR profile and which are also available on the company's website. All figures are in U.S. dollars unless otherwise noted.

"As a result of increased throughput and higher grades, Orovalle is on track to meet fiscal 2022 production guidance. Electricity and fuel pricing continue at the core of the inflationary scenario. Meanwhile, we continue managing our costs diligently and our liquidity in a prudent fashion, and we are confident of meeting our cost guidance," said Orvana chief executive officer Juan Gavidia. "In respect of the feasibility of proceeding with the OSP, we are near to completing the final analysis of capex requirements, risk assessments and funding availability. We expect to be in a position to make a decision on the development of the OSP by December, 2022," added Mr. Gavidia.

Consolidated financial results and operating highlights:

  • Revenue of $18.5-million for the three months ended June 30, 2022 (third quarter (Q3) of fiscal year (FY) 2022) and $67.0-million for the nine months ended June, 2022;
  • EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.7-million for Q3 FY 2022 and $4.1-million for the nine months ended June 30, 2022;
  • Capital expenditures (on a cash basis) of $7.1-million for Q3 FY 2022 and $16.1-million for the nine months ended June 30, 2022;
  • $6.1-million of cash and cash equivalents as at June 30, 2022.


  • Q3 FY 2022 production of 15,798 gold equivalent ounces (12,354 gold ounces, 1.3 million copper pounds and 38,082 silver ounces), a 49-per-cent increase from previous quarter;
  • 12,354 gold ounces produced, a 48-per-cent increase from the three months ended March 31, 2022 (Q2 FY 2022);
  • 1.3 million copper pounds produced, a 62-per-cent increase from Q2 FY 2022;
  • 6,589 metres of infill and brownfield drilling;
  • 1,337 metres of greenfield drilling;
  • 22.16 g/t Au over 6.05 metres intercept in Ortosa West, part of the Ortosa-Godan project.


  • Don Mario continues in care and maintenance (C&M). Critical areas of the C&M program are: site security; environmental control; and maintenance of power generators, process plant, mine equipment and camp facilities.
  • The oxides stockpile project (OSP), consisting of a plant expansion to treat ore stockpiled from previous years of mining activity, continues in progress. The company expects to complete final OSP engineering plans and the final capex estimate by September, 2022, as well as project economics and risk assessment. Conditional upon being satisfied of the project economics, risk assessment results and obtaining sufficient financing, Emipa expects construction to start in early calendar 2023.
  • The company is evaluating the results of the 82 holes drilled in the tailings accumulated in the Don Mario tailings storage facility. Scoping studies for this tailings reprocessing project (TRP) continue in progress.
  • Exploration activities continue in the Don Mario complex. During the third quarter of fiscal 2022, activities were focused on the evaluation of Las Tojas and Oscar sectors, where mapping, geochemical and sampling activities had been carried out during the first half of the year. The company is currently planning trenching and additional geochemistry and geophysics lines to continue exploring those two sectors.

Orvana Argentina:

  • The company started a drilling campaign in late December, 2021, to upgrade the mineral resource from the inferred category and to realize its oxide mineral tonnage upside potential;
  • Phase I consisted of 6,482.6 metres in 41 diamond drill holes (DDHs), with over 4,900 assay samples. The main goal of the program was to upgrade Cerros Taguas oxides sector to measured and indicated resource categories, as those terms are defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects, while moderately expanding the ore tonnage previously reported in the company's NI 43-101-compliant Taguas preliminary economic assessment report dated Dec. 29, 2021, and filed on SEDAR on Feb. 11, 2022 (the Taguas 2021 PEA). The second goal was to incorporate satellite Cerro Campamento sector into the oxides scope, going forward;
  • Mineralization encountered in all 41 holes;
  • Grades generally equalling-improving average previous resource grades included in the Taguas 2021 PEA;
  • Based on the information obtained, the company is currently working on the resource remodelling. Completion is expected by the last quarter of fiscal 2022.

About Orvana Minerals Corp.

Orvana is a gold-copper-silver company. Orvana's assets consist of the producing Orovalle operation in northern Spain, the Don Mario property in Bolivia, currently in care and maintenance, and the Taguas property in Argentina.

We seek Safe Harbor.

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