Orvana Minerals Corp. Provides Operations Update on Don Mario Mine; Updates Production Guidance for the Year 2015
Sep 16 15
Orvana Minerals Corp. announced updates on its mine life extension activities at Don Mario Mine in Bolivia and the evaluation of the re-commissioning of the existing CIL circuit. LMZ Pushback: 2009 marked the last year of six years of production from the LMZ underground gold mine at Don Mario with some follow on production from lower-grade open pit satellite deposits continuing into 2011. During this period, over 420,000 ounces of gold was produced with an average recovery of over 80% from the CIL circuit which was decommissioned in 2011. In 2012, the company commenced processing ore from the Upper Mineralized Zone. The company is currently processing UMZ ore by flotation-only producing a copper concentrate and a gold concentrate. In the first nine months of 2015, average recoveries of 54% for gold, 76% for copper and 63% for silver were achieved. Mercator was engaged to review, among other things, geological information, historical data and results of an LMZ drilling program. Geotechnical and geological reviews have been carried out on the historical resource block model of the LMZ and the current resource block model of UMZ to investigate the potential of mining the upper extension of the LMZ. Results of a recent drilling program to verify conditions of the underlying underground workings, identify voids and further support and confirm mineral resource estimates have shown that no significant unexpected voids were encountered and that a pushback of the pit to allow for the mining of the upper extension of the LMZ is possible. This has allowed for the preparation of the LMZ mineral resources estimate expected to be released later this month. Processing of LMZ ore may be through the currently operating flotation only circuit or the existing CIL circuit, the re-commissioning of which is currently being evaluated. Processing through the CIL circuit would result in the production of gold doré in addition to the current copper and gold concentrates. Producing doré in addition to concentrates are estimated to lead to higher gold recoveries and reduced TC/RCs and freight charges. A detailed mine design and schedule for the LMZ pushback is being prepared. From 2009 to 2011, approximately 207,000 tones of ore at an average grade of 1.77 g/t of gold was processed from mineralized zones north-west and south-east of UMZ (Cerro Felix). In 2015, Orvana completed a drilling program consisting of 39 holes totaling 3,600 meters at Cerro Felix. Mercator has worked with Orvana to review, among other things, geological information, historical data and the results of the Cerro Felix drilling program. This has allowed for the preparation of the Cerro Felix mineral resources estimate expected to be released later this month. Processing of Cerro Felix ore may be through the currently operating flotation only circuit or the existing CIL circuit, the re-commissioning of which is currently being evaluated. There are three separate options for the re-commissioning of the CIL circuit defined by different process design criteria that leverage existing infrastructure to a different degree. The three separate options have different estimated recoveries that are subject to change based on metallurgical test work and/or operational changes such as lower throughput for finer grind size. Estimated preliminary capital costs, depending on the option selected, range between approximately $5 million and $10 million. All estimates contain contingency considered appropriate for the scope and brown field nature of the work. The estimate accuracy is considered to be in the +/- 35% range with contingency included. The company will be reviewing the various options, results of metallurgical test work and potential financing alternatives to assess the re-commissioning of the CIL circuit. A metallurgical test work program is underway to evaluate both CIL of whole of ore and flotation for LMZ and Cerro Felix deposits. Results from this program are expected by the end of 2015. Other opportunities to extend the mine life at Don Mario include metallurgical testing of 2.4 million tones of stockpiled oxide resource containing 153,000 oz of gold at 1.96 g/t and 93 million pounds of copper at 1.74%. The company provided the following operational update for its El Valle Mine in northern Spain. Oxides production at El Valle Mine has been impacted in the last six months by the planned transition from contractor mining to owner/operator mining completed at the end of April. Changes to oxide mining techniques have improved productivity with rates in August nearing those of the previous oxides contractor. The company has maintained its average skarns production.
The company announced that it expects to meet its updated 2015 guidance for (i) production of gold of between 70,000 and 73,000 ounces, copper of between 23,000,000 and 25,000,000 pounds and silver of between 550,000 and 680,000 ounces; (ii) all-in-sustaining-costs (by-product) guidance of between $1,150 and $1,250; and (iii) capital costs of between $11.5 million and $12.5 million.
Orvana Minerals Corp. Announces Unaudited Consolidated Financial and Operating Results for the Third Quarter and Nine Months of Fiscal 2015; Revises Financial and Operating Guidance for Full Year of Fiscal 2015
Aug 7 15
Orvana Minerals Corp. announced unaudited consolidated financial and operating results for the third quarter and nine months of fiscal 2015. For the quarter the company reported revenue was $32,162,000 compared to $34,064,000 for the same period a year ago. Net loss was $5,522,000 compared to $25,902,000 for the same period a year ago. Net loss per share basic and diluted was $0.04 compared to $0.19 for the same period a year ago. Adjusted net loss was $5,522,000 compared to adjusted net income of $905,000 for the same period a year ago. Adjusted net loss per share basic and diluted was $0.04 compared to adjust net income per share $0.01 for the same period a year ago. Operating cash flows were $6,667,000 compared to $8,750,000 for the same period a year ago. Capital expenditures were $1,720,000 compared to $6,486,000 for the same period a year ago.
For the six months, the company reported Revenue was $101,040,000 compared to $98,409,000 for the same period a year ago. Net loss was $8,914,000 compared to $26,847,000 for the same period a year ago. Net loss per share basic and diluted was $0.07 compared to $0.20 for the same period a year ago. Adjusted net loss was $8,914,000 compared to $1,208,000 for the same period a year ago. Adjusted net loss per share basic and diluted was $0.07 compared to $0.01 for the same period a year ago. Operating cash flows were $26,153,000 compared to $16,521,000 for the same period a year ago. Capital expenditures were $7,777,000 compared to $13,988,000 for the same period a year ago.
For the quarter, the company reported production of 16,012 oz of gold, 5,187,000 lbs of copper and 157,172 oz of silver compared to production of 21,532 oz of gold, 4,785,000 lbs of copper and 211,459 oz of silver. Sales of 19,121 oz of gold, 6,266,000 lbs of copper and 175,136 oz of silver compared to sales of 18,790 oz of gold, 4,724,000 lbs of copper and 217,988 oz of silver.
For the six months, the company reported production of 57,610 oz of gold, 18,192,000 lbs of copper and 424,012 oz of silver compared to production of 59.921 oz of gold, 14,551,000 lbs of copper and 741,945 oz of silver. Sales of 59,417 oz of gold, 19,290,000 lbs of copper and 433,839 oz of silver compared to sales of 54,912 oz of gold, 12,669,000 lbs of copper and 602,869 oz of silver.
For the fiscal year 2015, the company updated its guidance. The company expects total production copper to be 23.0 million lbs to 25.0 million lbs, and silver to be 550,000 oz to 680,000. Orvana is lowering its fiscal 2015 production guidance for gold from 82,000 to 88,000 ounces to 70,000 to 73,000 ounces. The Company is also updating consolidated COC (by-product) guidance to between $850 and $950 per ounce of gold sold and consolidated AISC (by-product) guidance to between $1,150 to $1,250 per ounce of gold sold from previous COC and AISC guidance of $700 to $770 and $1,000 to $1,100, respectively. COC and AISC guidance is being increased primarily due to lower metals sales, decreases in by-product revenues and lower commodity price assumptions for the fourth quarter of fiscal 2015.
The company is lowering its capital expenditures guidance for fiscal 2015 to between $11.5 to $12.5 million from $13.0 to $15.0 million as a result of deferred discretionary capital projects and the more favourable Euro to US Dollar exchange rate.