Updated Feasibility Study and Decision to Proceed/Don Mario Upper Zone

Welcome To The Orvana Minerals HUB On AGORACOM

Operations: Copper-gold-silver-mine in Bolivia, Gold/copper mine/Mill in Spain and its developing copper project in Michigan

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Clavis

Rank: President [?]

Points: 26378 [?]

Votes: 242 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Updated Feasibility Study and Decision to Proceed/Don Mario Upper Zone

posted on May 15, 2009 01:22PM

May 15, 2009

Orvana Announces Completion of Updated Feasibility Study and Decision to Proceed With Development of Don Mario Upper Mineralized Zone

- Updated feasibility study confirms robust economics of the copper-gold deposit

- Orvana targets first production toward the end of fiscal 2010

TORONTO, ONTARIO--(Marketwire - May 15, 2009) - Orvana Minerals Corp. (TSX:ORV) announced today that the Board has approved development of the Don Mario Upper Mineralized Zone ("UMZ"). Approval follows completion of a feasibility study that incorporates a financial summary based on an updated mine model for this polymetallic deposit located in eastern Bolivia. The financial summary was updated by Kappes, Cassiday & Associates ("KCA") of Reno, Nevada.

"The updated financial summary confirms the robust economics of the UMZ, which are facilitated by the existing infrastructure at the Don Mario Mine," said Carlos Mirabal, President and Chief Executive Officer of Orvana. "We will be utilizing the existing infrastructure at Don Mario after the expected end of gold production from Las Tojas during the second half of fiscal 2010."

"Our experienced development and operating team in Bolivia has determined that the pre-production capital costs presented in the KCA feasibility study can be significantly decreased, thereby increasing an already attractive 28.9% internal rate of return ("IRR"). We plan to start construction immediately with the goal of achieving first production toward the end of fiscal 2010."

The UMZ copper-gold deposit overlies the Lower Mineralized Zone ("LMZ"), a gold-bearing shear zone currently being mined underground by Orvana. The UMZ deposit lies in the hanging wall of the LMZ shear zone. A calc-silicate rock hosts copper, gold, silver, and zinc in four defined mineralized zones, from surface downward: 1) porous, 2) oxide, 3) transition, and 4) sulphide.

The UMZ mine plan set out by KCA, based on an updated mine model contemplates a flotation plant with a mill throughput of 1,900 tonnes per day over a 9-year mine life. During the first six years, the oxides will be stockpiled and the transition zone and sulphide zone ores will be treated to recover copper, gold, and silver. During the remaining years, the stockpiled oxide ore will be treated to recover gold and silver.

Base-case operational parameters set out by KCA over the
 life of mine (LOM) are:

Throughput (transition & sulphide):    1,9900 tpd (for 5.8 years)
Avg. Annual Production:                5,300 tonnes Cu
                                       19,000 ounces Au
                                       700,000 ounces Ag
Stockpile (oxides):                    1,900 tpd (for 2.7 years)
Avg. Annual Production:                25,000 ounces Au
                                       680,000 ounces Ag
Strip ratio:                           0.50:1
Copper recovery (LOM):                 70% for transition & sulphide
Gold recovery (LOM):                   68%-transition & sulphide, 74%-oxide
Silver recovery (LOM):                 83%-transition & sulphide, 65%-oxide
Copper production (LOM):               32,000 tonnes
Gold production (LOM):                 176,000 ounces
Silver production (LOM):               6,100,000 ounces

Key financial input parameters are (all values in US dollars):

  Pre-production capital:              $26,500,000
  Working & sustaining capital:        $ 6,200,000
  Mine operating cost:                 $ 5.61/t ore
  Processing cost:                     $11.83/t ore
  G&A:                                 $ 3.20/t ore
  Copper price (LOM):                  $ 2.00/lb.
  Gold price (LOM):                    $650.00/ounce
  Silver price (LOM):                  $ 10.00/ounce

Production is subject to a 3% net smelter return royalty ("NSR") that is held by Royal Gold, Inc. In addition, the Bolivian government is entitled to NSRs on contained metal at percentage rates which are different for each metal and which vary based on a formula related to metal prices at the time of shipment.

The financial summary for the feasibility study of the UMZ presented herein was completed by or under the supervision of Dan Kappes, KCA, an independent Qualified Person for the purposes of NI 43-101. The summary report will be available on the Company's website, www.orvana.com.

About Orvana

Orvana Minerals Corp. is a Canadian mining and exploration company based in Toronto, Canada, involved in the evaluation, development and mining of precious and base metal deposits in the Americas. The Company owns and operates the Don Mario Mine in eastern Bolivia. Orvana's long-term goal is to become a low cost, long-life, multi-mine gold and base metals producer in the Americas. Orvana's shares have been listed on the Toronto Stock Exchange since 1992 under the trading symbol ORV. Further information on Orvana may be found on the Company's website at www.orvana.com and on SEDAR at www.sedar.com.

12 Recommendations

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Please to post a reply