Update on Orvana Operations
7/11/2011 9:31:03 AM - Market Wire
TORONTO, ONTARIO, Jul 11, 2011 (MARKETWIRE via COMTEX News Network) --
Orvana Minerals Corp. (TSX:ORV) today provided an update on its operations at its copper-gold-silver-mine in Bolivia, its gold/copper mine in Spain and its developing copper project in Michigan.
Orvana's wholly-owned Bolivian subsidiary, Empresa Minera Paititi S.A. ("EMIPA"), operates the open pit copper-gold-silver Don Mario Mine, Upper Mineralized Zone in Bolivia. This operation started up in April 2011 and continues to proceed through its commissioning stage. Currently over 500,000 tonnes of ore has been broken and stockpiled, grading 1.91% copper, 2.16 g/t gold and 25.95 g/t silver. During June, about 27,000 tonnes of ore was processed with a head grade of 1.92% copper, 1.87 g/t gold and 68.19 g/t silver. Total concentrate production to date has been about 750 tonnes grading about 35% copper, 28 g/t gold and 690 g/t silver. Of this, June production of concentrate was 355 tonnes grading about 42% copper, 31 g/t gold and 750 g/t silver. Once 1,000 tonnes of concentrate has been accumulated at port, expected within a month, Orvana expects to account for the first revenues from this operation.
The commissioning stage has been slower than planned, due in part to initial issues with the acid plant. These initial issues have been resolved, and the plant is now running at 90% of its design capacity. Recoveries have also been significantly lower than planned, primarily due to higher than life-of-mine average content of dolomite and talc in the mill feed, which has affected the leaching circuit and has resulted in periodic instability of the flotation process. These issues are being addressed by improving agitation, more precisely blending mill feedstock and fine tuning reagents. Copper recoveries currently in the 60% range are expected to reach the targeted 80% level within the next few months. Until these recoveries are obtained, dore production will continue to be negatively impacted, with first dore production expected in the next couple of months.
Orvana's wholly-owned Spanish subsidiary, Kinbauri Espana SLU ("Kinbauri"), operates the underground El Valle-Boinas/Carles ("EVBC") gold-copper mine in Asturias, northern Spain started up and has been commissioning its mill since May 31, 2011 and currently over 600 tonnes of concentrate grading 20.3% copper, 28 g/t gold and 332 g/t silver has been trucked to port. Once 1,000 tonnes has been trucked to port, which is expected to happen later this month, Orvana will recognize revenues from this operation. EVBC also expects to pour its first gold bars before month end. During June, over 38,000 tonnes were processed through the mill grading 1.40 g/t gold, 0.45% copper and 9.56 g/t silver. This head grade for gold is low as much of the initial material is development ore mined to access the mining stopes, and is primarily lower grade skarn ore compared to the higher grade oxides. Recoveries have been close to target for initial production, with 83.3% gold recovery and 64.5% copper recovery.
As previously reported, EVBC will initially operate at 1,400 tonnes per day (70% of capacity) with production increasing to 1,900 tonnes per day when the shaft is completed in early 2012. Overall, shaft construction is on schedule. The first 200 metres of the 440-metre deep shaft have now been reamed to a 5.5 metre diameter and construction of shaft surface facilities can now commence. As noted in a previous release, Kinbauri has received final approval from the Spanish Ministry of the Environment for the EVBC operation, but is required to post a EUR5 million (US $7.2 million) cash bond by month end. To address the cash requirements of the additional EVBC bond as well as increased working capital needs from slower than anticipated recoveries of VAT receivables in Spain and accumulating additional ore inventories in both Bolivia and Spain, Orvana is reviewing funding alternatives to raise approximately US $10 million.
Orvana's wholly-owned Michigan subsidiary, Orvana U.S. Corp. ("Orvana USA"), is developing the Copperwood copper project in the Upper Peninsula of Michigan. Orvana USA announced in a June 24 press release highlights of a National Instrument 43-101-compliant prefeasibility study which outlines a 14-year underground operation with average annual production of 23,900 short tons of copper and 111,000 ounces of silver. The full report is expected to be released within a month. Orvana USA is completing the mine-permit application and is pleased with the support of the nearby Michigan communities and their representatives.
Orvana will be releasing its financial results for the quarter ended June 30th on August 15th and will have a conference call on August 16th at 10:00 a.m. to provide a discussion of these results and a further update on operations.
About Orvana
Orvana Minerals is a gold producer with a strong balance sheet and is transforming itself into a multi-mine gold and copper producer. Orvana's primary asset is the El Valle-Boinas/Carles ("EVBC") gold-copper project in northern Spain, which is now being commissioned towards targeted production levels. Orvana owns and operates the Don Mario Mine in Bolivia where a newly completed leaching-precipitation-flotation ("LPF") plant is being commissioned to process its copper-gold-silver Upper Mineralized Zone ("UMZ") deposit. In addition, Orvana is advancing its 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
