Orvana Meets Fiscal 2015 Production, Costs and Capex Guidance

TSX:ORV

  • Production of 72,817 ounces of gold - meets updated 2015 guidance 
  • Gold equivalent production of approximately 132,000 ounces
  • COC and AISC meet 2015 guidance
  • CAPEX of $9.5 million below 2015 guidance

TORONTO, Nov. 13, 2015 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to provide a report on production, estimated cash operating costs ("COC") and all-in-sustaining costs ("AISC") and estimated capex for fiscal 2015.

The following table sets out 2015 operating performance data for the Company's subsidiaries OroValle (El Valle Mine) located in the north of Spain and EMIPA (Don Mario Mine) located in Bolivia.


Year Ended September 30, 2015

Year Ended September 30, 2014

Orvana

Total

El Valle

Don Mario

Total

El Valle

Don Mario

Milled (tonnes) (dmt)

1,348,937

511,214

837,723

1,482,736

651,612

831,124

Gold








Grade (g/t)


3.53

1.32


3.22

1.71


Recovery (%)


92.7

53.6


93.3

46.3


Production (oz)

72,817

53,733

19,084

84,084

62,957

21,127


Sales (oz)

73,296

51,243

22,053

79,858

63,464

16,394

Copper








Grade (%)


0.67

1.20


0.48

1.47


Recovery (%)


81.5

74.5


82.0

56.0


Production (000s lbs)

22,600

6,127

16,473

21,056

5,626

15,430


Sales (000s lbs)

23,956

6,057

17,899

18,935

5,876

13,059

Silver








Grade (g/t)


13.52

25.20


9.38

48.01


Recovery (%)


75.0

63.6


79.9

57.2


Production (oz)

598,040

166,745

431,295

890,339

156,977

733,362


Sales (oz)

596,336

159,137

437,199

833,594

163,513

670,081

2015 Guidance
The following table sets out the 2015 guidance ranges and provides 2015 comparative production, cash costs and CAPEX performance:


FY2015

FY2015 


Actual

Guidance Range

Orvana Production and Costs




Gold (oz)

72,817

70,000 - 73,000


Copper (million lbs)

22,600

23.0 – 25.0


Silver (oz)

598,040

550,000 - 680,000


COC (by-product) 1

$948

$850 - $950


AISC (by-product) 1

$1,210

$1,150 - $1,250





FY2015

FY2015


Actual

Guidance Range

El Valle Mine Production




Gold (oz)

53,733

50,500 - 52,500


Copper (million lbs)

6.1

6.5 – 7.0


Silver (oz)

166,745

150,000 - 180,000


COC (by-product) 1

$1,076



AISC (by-product) 1

$1,210





Don Mario Mine Production




Gold (oz)

19,084

19,500 – 20,500


Copper (million lbs)

16.5

16.5 - 18.0


Silver (oz)

431,295

400,000 - 500,000


COC (co-product) 1

$948



AISC (co-product) 1

$1,053


Capital Expenditures (000s)

$9,533

$11,500 - $12,500

1 - COC includes total production cash costs incurred at the Company's mining operations including royalties.  AISC includes COC plus sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs and reclamation cost accretion.

Orvana 2015 Costs
Orvana's COC and AISC on a by-product basis (net of copper and silver by-product revenue from El Valle and the Don Mario Mine) per ounce of gold sold in fiscal 2015 are estimated to be approximately $948 and $1,210, respectively, compared to COC and AISC (by-product) of $771 and $1,015, respectively in fiscal 2014(1).

The increase in COC/AISC in fiscal 2015 was primarily due to lower gold ounces produced and sold and lower by-product credits due to copper and silver price declines in 2015 compared to 2014.  Net revenue from copper and silver by-products represented approximately 44% of Orvana's total net revenue in fiscal 2015.  This was partially off-set by a weaker Euro against the U.S. dollar in respect of Euro denominated costs and lower capital expenditures at El Valle Mine compared to fiscal 2014.

Orvana 2015 Capex
The Company's capital expenditures for 2015 are estimated at $9.5 million, below the Company's guidance range of $11.5 million to $12.5 million. The lower capex resulted from the deferral of certain discretionary expenditures and the positive effect of the weaker Euro.

Additional Resources at EMIPA
On September 30, 2015, the Company announced two independent mineral resource estimates for each of the Lower Mineralized Zone ("LMZ") and Cerro Felix at the Don Mario Mine.  The mineral resource estimates were prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves referenced in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").  A technical report relating to such mineral resource estimates prepared in accordance with NI 43-101 will be filed on the System for Electronic Document Analysis and Retrieval (SEDAR) this month.

About Orvana
Orvana Minerals is a multi-mine gold and copper producer. Orvana's operating assets consist of the producing gold-copper-silver El Valle mine in northern Spain and the producing gold-copper-silver Don Mario mine in Bolivia.  Additional information is available at Orvana's website (www.orvana.com).

Cautionary Statements - Forward-Looking Information
Certain statements in this information constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects", "plans", "estimates" or "intends" or stating that certain actions, events or results "may", "could", "would", "might", "will" or "are projected to" be taken or achieved) are not statements of historical fact, but are forward-looking statements. The forward-looking statements herein relate to, among other things,

Orvana's ability to achieve improvement in free cash flow; the potential to extend the mine life of El Valle Mine and Don Mario Mine beyond their current life-of-mine estimates; Orvana's ability to optimize its assets to deliver shareholder value; Orvana's ability to optimize productivity at El Valle; estimates of future production, operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future financial performance, including the ability to increase cash flow and profits; future financing requirements; and mine development plans. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Orvana as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Orvana contained or incorporated by reference in this information, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in Orvana's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Company Disclosures") or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle Mine and Don Mario Mine being consistent with Orvana's current expectations; political developments in any jurisdiction in which Orvana operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of Orvana's current mineral reserve and mineral resource estimates; and labour and materials costs increasing on a basis consistent with Orvana's current expectations. A variety of inherent risks, uncertainties and factors, many of which are beyond the Orvana's control, affect the operations, performance and results of Orvana and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward-looking statements. Some of these risks, uncertainties and factors include fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; the availability of qualified personnel; Orvana's ability to obtain and maintain all necessary regulatory approvals and licenses; Orvana's ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including Orvana's ability to continue to operate El Valle Mine and/or the Don Mario Mine; Orvana's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; Orvana's ability to obtain financing when required on terms that are acceptable to Orvana; Orvana's ability to execute on its strategy; challenges to Orvana's interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which Orvana operates; general economic conditions worldwide; and the risks identified in the Company's Disclosures under the heading "Risks and Uncertainties". This list is not exhaustive of the factors that may affect any of Orvana's forward-looking statements and reference should also be made to the Company's Disclosures for a description of additional risk factors.  Any forward-looking statements made in this information with respect to the anticipated development and exploration of Orvana's mineral projects are intended to provide an overview of management's expectations with respect to certain future activities of Orvana and may not be appropriate for other purposes. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, Orvana does not undertake any obligation to update forward looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements.

Cautionary Notes to Investors – Mineral Resources Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2015 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.

The forward-looking statements made in this information are intended to provide an overview of management's expectations with respect to certain future operating activities of Orvana and may not be appropriate for other purposes.

SOURCE Orvana Minerals Corp.

For further information: Daniella Dimitrov, President & CEO, T (416) 369-1629, E ddimitrov@orvana.com; Joanne Jobin, Investor Relations Officer, T (416) 369-6275, E jjobin@orvana.com

RELATED LINKS
http://www.orvana.com

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