Orvana announces operations update at el valle-boinas/carles gold/copper mine, Northern Spain
Wednesday, Apr 18, 2012
TORONTO, ONTARIO--(Marketwire - April 17, 2012) - Orvana Minerals Corp. (TSX:ORV) (the "Company") is pleased to announce, through its wholly-owned subsidiary Kinbauri Espana S.L.U. ("Kinbauri"), an update of operations for its El Valle-Boinas/Carles ("EVBC") gold-copper mine in northern Spain.
Production for the period January through March, or the second quarter of fiscal 2012, was nearly 11,000 ounces as shown in the table below. Unaudited direct cash operating cost, including royalties, was approximately $715/ounce of gold, net of by-product revenues.
Whereas EVBC production targets are being met for copper and silver, gold production is lower than anticipated. Therefore, fiscal 2012 guidance for EVBC is reduced to 52,000 ounces. The revised fiscal 2012 guidance for the Company is 64,500 ounces of gold, 7,500 tonnes of copper, and 600,000 ounces of silver.
"Although gold head grades are increasing, rock conditions, underground logistical issues, and power interruptions have affected daily throughput" said Agne Ahlenius, Chief Operating Officer of the Company and General Manager of Kinbauri. "However, we have completed the majority of the primary development at both El Valle/Boinas and Carles and expect considerable improvement in the operations when the new hoist shaft and its auxiliary infrastructure are operational in May."
The installation of the shaft head frame and key underground infrastructure is nearly complete. Mining of one stope in the high-grade San Martin skarn is ongoing and mining from three other stopes in this sector will commence over the next few weeks. Roadheaders continue to mine on the Charnela and A107 (330 level) subvertical, high-grade gold structures. At Carles, mining continues at the -10, -60, -80, and -100 levels.