Canada NewsWire
Highlights:
- OroValle, Spain : Replenishes reserves depletion, maintains 5 Year Life of Mine, and increases total resources tonnage by 24% to 14,023 kt;
- Taguas, Argentina : Increases its total resources tonnage 246% to 133,626 kt, and updates NI-43-101 PEA to NPV of USD 57M ;
- Don Mario, Bolivia : Adds 9,151 kt to its resources tonnage based on a new NI 43-101 report on its old time tailings.
TORONTO , Dec. 29, 2021 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") announces the filing of its annual information form for the year ended September 30, 2021 (the "AIF") and independent 43-101 report on the Don Mario Tailings Reprocessing Project, Eastern Bolivia (the "Don Mario Tailings Reprocessing Report"). The Company is also pleased to provide a summary of its updated preliminary assessment report for Taguas Project (the "2021 Taguas PEA"), which will be filed on SEDAR within 45 days from the date hereof.
Juan Gavidia , CEO of the Company stated: "Fiscal 2021 has proven to be a fantastic value creation year for our shareholders, with a year-on-year 205% increase in resources tonnage, growing from 52 Mt to 159 Mt . Our persistent exploration investment is paying off spectacularly this year, allowing us to keep pursuing development of our three assets with a much larger mineral resource base".
Summary of Mineral Resources & Mineral Reserves (1) :
|
Mineral
|
Category |
Tonnage (M t) |
Variance
|
|
|
September 30,
|
September 30,
|
|
||
|
Orovalle |
Measured & Indicated |
10.3 |
7.9 |
2.4 |
|
Inferred |
3.7 |
3.4 |
0.3 |
|
|
Don Mario
|
Measured |
2.2 |
2.2 |
- |
|
Don Mario
|
Indicated |
3.7 |
- |
3.7 |
|
Inferred |
5.5 |
- |
5.5 |
|
|
Taguas |
Interred |
133.6 |
38.6 |
95.0 |
|
Total |
159.0 |
52.1 |
106.9 |
|
|
Mineral Reserves |
Tonnage (M t) |
Variance
|
|
|
September 30,
|
September 30,
|
||
|
Orovalle |
3.3 |
3.4 |
(0.1) |
|
Don Mario |
2.0 |
2.0 |
- |
|
Total |
5.4 |
5.5 |
(0.1) |
|
(1) Detailed information about Mineral Resources and Reserves as at September 30, 2021 and September 30, 2020 is included in the Company's annual information forms for the years ended September 30, 2021 and September 30, 2020, available under the Company's profile at www.sedar.com and on the Company's website at www.orvana.com . |
Don Mario Tailings Reprocessing Report
Orvana retained DGCS S.A. ("DGCS") to prepare a technical report for the Don Mario Tailings Reprocessing Project, in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
The Company, through its wholly owned subsidiary EMIPA, is the owner of the Don Mario Operation, a set of assets that includes Las Tojas ore body, and the previously mined out Lower Mineralized Zone, Upper Mineralized Zone and Cerro Felix mines, plus the Processing Plant and the Tailings Storage Facility. Operations at Don Mario were temporarily suspended in the first quarter of fiscal 2020 and is currently in care and maintenance.
Between April and June 2018 EMIPA executed a drilling program in the Don Mario Tailings Storage Facility, to determine the tailings resources. Two extraction methods have been considered to mining the tailings accumulated, as a mixed and escalated method. The considered methods are mechanical extraction and hydraulic extraction. The treatment considered is CIL-CIC-Flotation, to take advantage of potential synergies with the Oxides Stockpile Project.
Don Mario Tailings Reprocessing Project Mineral Resource Estimate – Effective September 30, 2021 :
|
|
|
Indicated |
|
Inferred |
||||||
|
Cut Off Au |
|
000 t |
Au (g/t) |
Ag (g/t) |
Cu (%) |
|
000 t |
Au (g/t) |
Ag (g/t) |
Cu (%) |
|
0.7 |
|
11 |
0.71 |
5.49 |
0.69 |
|
- |
- |
- |
- |
|
0.6 |
|
133 |
0.65 |
5.33 |
0.66 |
|
41 |
0.63 |
5.04 |
0.57 |
|
0.5 |
|
1,390 |
0.54 |
5.46 |
0.59 |
|
70 5 |
0.53 |
4.44 |
0.46 |
|
0.4 |
|
3,320 |
0.49 |
4.96 |
0.55 |
|
4,629 |
0.46 |
4.16 |
0.42 |
|
0.3 |
|
3,677 |
0.48 |
4.79 |
0.53 |
|
5,474 |
0.45 |
4.00 |
0.40 |
|
0.2 |
|
3,798 |
0.47 |
4.67 |
0.52 |
|
5,688 |
0.44 |
3.89 |
0.40 |
|
0.1 |
|
3,798 |
0.47 |
4.67 |
0.52 |
|
5,688 |
0.44 |
3.89 |
0.40 |
|
Notes: |
|
|
1. |
CIM definitions were followed for Mineral Resources, estimated by G. Zandonai, a qualified person for the purposes of NI 43-101, who is an employee of DGCS S.A., and is independent of the Company. |
|
2. |
Highlighted Base Case of Au 0.3 g/t Cut Off considered for mine life. |
|
3. |
Numbers may not add due to rounding. |
The projected mine life ascends to approximately 3.8 years at a mining rate of 2.4 MT per year, considering the mineral resources estimate as at 0.3 g/t Au Cut Off.
Gino Zandonai of DGCS Exploration and Mining Consulting supervised the preparation of the Don Mario Tailings Reprocessing Report, is independent of the Company and a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure reported herein.
2021 Taguas PEA
Orvana retained SAXUM Engineered Solutions, from his Argentina office, in cooperation with Kappes, Cassiday & Assoc. (KCA) from Reno, NV ; and NCL from Chile to prepare a Preliminary Economic Assessment for the Taguas Project.
The Taguas Property is host to a high-sulfidation epithermal gold-silver system hosted in altered tertiary age rhyolite volcaniclastic rocks. Supergene-oxidized gold-silver mineralization occurs on the south half of the Property. The oxide gold-silver mineralization consists of sub-vertical, northeast striking mineralized structures in an envelope of lower grade mineralization. The high-grade zones consist of relatively continuous mineralization with gold grades ranging from 0.2 g/t Au to over 4.0 g/t Au and 10 g/t Ag to over 50 g/t Ag. Oxidation extends from surface to approximately 100m – 200m below surface. The present PEA refers only to this oxidized gold-silver mineralization occurring near surface in Cerros Taguas.
PEA Highlights
- Pre-Tax NPV of US $103.7M at 8.0% discount rate
- Pre-Tax Internal Rate of Return (IRR): 27.4%
- After-Tax NPV of US $56.9M at 8.0% discount rate
- After-Tax IRR: 20.2%
- Payback Period (from start of operations): 2.9 years
- Initial Capital: US $141.2M
- LOM Capital: US $147.8M
- Estimated Average LOM All-In Sustaining Costs (AISC): US $915 /Au oz payable
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the results of the PEA will be realized . The PEA study is conceptual in nature and the PEA mine plan is based on 100% inferred resources. The projections, forecasts and estimates presented in the PEA constitute forward-looking statements and readers are urged not to place undue reliance on such forward-looking statements. Additional cautionary and forward-looking statement information is detailed at the end of this news release.
PEA Key Inputs
- Gold Price: 1,700 US$ /oz
- Silver Price 22 US$/oz
- Construction: 1 year
- Production: 9.2 years
- Waste/Processed Feed: 0.69
- Mine: Maximum 14.0 Mt per year (total mined plus rehandling)
- Plant: 15,000 tons per day
- Au Recovery: 83%
- Ag Recovery: 42%
- Au LOM Production: 430Koz
- Ag LOM Production: 7,618Koz
NPV After-Tax Sensitivity by Discount Rates
|
Discount Rate
|
Net Present Value
|
|
|
|
||
|
5 |
79.0 |
|
|
8 |
56.9 |
|
|
10 |
44.4 |
|
|
15 |
20.2 |
|
PEA Inferred Resource
Estimate of Inferred Mineral Resource for Cerro Taguas Oxides reported at 0.25 g/t AuEq Cut-off
|
COG g/t
|
Tonnes
|
Au g/t |
Ag g/t |
AuEq g/t |
Contained Metal |
|
|
Au koz |
Ag koz |
|||||
|
0.25 |
55.0 |
0.35 |
12.1 |
0.49 |
619 |
21,429 |
|
Notes: |
|
1. Mineral Resource estimate prepared by Mr. R. Simpson, P.Geo., of GeoSim Services Inc. with an effective date of June 30, 2021. Mineral Resources are classified using the 2014 CIM Definition Standards. |
|
2. Gold equivalent (AuEq g/t) calculations were based on assumed metal prices of $1700/oz Au, and $20/oz Ag. |
|
3. An optimized pit shell was generated using the following assumptions: metal prices in Note 2 above; a 45° pit slope; mining costs of $2.00 per tonne, processing costs of $5.20 per tonne, and general & administrative charges of $1.50 per tonne. All amounts are expressed in US dollars. |
|
4. Totals may not sum due to rounding. |
|
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. |
PEA Mining & Processing
The mining method proposed for the Property in the PEA is conventional truck and shovel open pit mining. The proposed recovery process will be crushing of mineralized material at a rate of 15,000 tpd, stacking in 10 m lifts on a permanent heap leach and gold and silver recovery from the heap leach pregnant solution in a Merrill-Crowe recovery plant where gold and silver will be precipitated to produce doré gold bars.
Nestor Lares , COO of SAXUM, was in charge of the Argentinian team as well to engage and coordinate the work of Caleb Cook of KCA and Carlos Guzman of NCL, and their respective teams, in the preparation of the PEA. Caleb and Carlos are independent of the Company and both qualified persons as defined by National Instrument 43-101 and have reviewed and approved the technical disclosure reported herein. The PEA will be filed on SEDAR within 45 days from this news release.
Once filed, the 2021 Taguas PEA will replace the previous preliminary economic assessment dated May 14, 2019 and filed on SEDAR on July 9, 2019 .
Orovalle Mineral Resources and Reserves
|
SUMMARY OF MINERAL RESOURCES INCLUSIVE OF MINERAL RESERVES – SEPTEMBER 30, 2021 |
|||||||
|
Zone |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (% Cu) |
Contained
(000 oz Au) |
Contained
(000 oz Ag) |
Contained
(000 lb Cu) |
|
Measured + Indicated |
10,340 |
3.62 |
10.15 |
0.47 |
1,205 |
3,373 |
107,586 |
|
Inferred |
3,684 |
3.74 |
7.04 |
0.32 |
446 |
852 |
25,838 |
|
Notes : |
|
1. CIM definitions were followed for Mineral Resources. |
|
2. Mineral Resources are estimated at gold equivalent ("AuEq") cut-off grades of 2.48 g/t for Boinás oxides, 2.11 g/t for Boinás skarns and 1.96 g/t for Carlés. AuEq cut-offs are based on recent operating results for recoveries, off-site concentrate costs and on-site operating costs. AuEq cut-off grades of 2.48 g/t was used for La Brueva. |
|
3. Mineral Resources are estimated using a long-term gold price of US$1,700 per ounce; copper price of US$3.25 per pound; and a silver price of US$ 20 per ounce. A US$/Euro exchange rate of 1/1.20 was used. |
|
4. Mineral Resources are inclusive of Mineral Reserves. |
|
5. A crown pillar of 60 m is excluded from the Mineral Resource below El Valle TSF. |
|
6. A crown pillar of 40m is excluded from the Mineral Resource below Boinás East open pit. |
|
7. Unrecoverable material in exploited mining areas has been excluded from the Mineral Resources. |
|
8. A no-mining sterilization zone of 10 meters below already mined stopes in Boinás has been excluded from the Mineral Resources. |
|
9. A no-mining sterilization zone of 5 meters around waste filled stopes in Boinás has been excluded from the mineral resources. |
|
10. Areas of mineral blocks in Carlés and Boinas have been removed from the Mineral Resource report to ensure RPEEE. |
|
11. Numbers may not add due to rounding. |
|
12. El Valle mineral resources estimates were prepared under the supervision G. Collar, European Geologist, a qualified person for the purposes of NI 43-101, who is an employee of OroValle and thus not independent of the Company. |
|
SUMMARY OF MINERAL RESERVES – SEPTEMBER 30, 2021 |
|||||||
|
Category |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (% Cu) |
Contained
(000 oz Au) |
Contained
(000 oz Ag) |
Contained
(000 lb Cu) |
|
Proven and Probable |
3,324 |
3.04 |
6.13 |
0.34 |
324 |
655 |
24,898 |
|
Notes : |
|
1. CIM (November 29, 2019) definitions and guidelines were followed for Mineral Reserve estimation. |
|
2. Mineral Reserves are estimated using AuEq break-even cut-off grades by zone, consisting of 3.35 g/t AuEq for Boinás oxides (D&F), 2.90 g/t AuEq for Boinás skarns (SLS), and 2.09 g/t AuEq for Carlés skarn (SLS). AuEq cut-offs are based on recent operating results for recoveries, off-site concentrate costs, and on-site operating costs. AuEq factors are based on metal prices, metallurgical recoveries, metal payables, and selling costs. |
|
3. Mineral Reserves are estimated using average long term prices of US$1,600/oz Au, US$18/oz Ag, and US$3.00/ lb Cu. A US$/€ exchange rate of 1.20/1.00 was used. |
|
4. A minimum mining width of 4 m was used. |
|
5. Crown pillars of 75 m and 42 m are excluded from the Mineral Reserves below the El Valle TSF and Boinás East open pits, respectively. |
|
6. A no-mining sterilization zone of 10 m below mined out stopes and 5 m around waste filled stopes has been applied. |
|
7. El Valle mineral reserves estimates were prepared under supervision of Brian Buss, a qualified person for the purposes of NI 43-101, who is an independent consultant of the Company. |
|
8. Numbers may not add due to rounding. |
Cautionary Statement
The Don Mario Tailings Reprocessing Report and the 2020 Taguas PEA (collectively, the "Reports") follows the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definitions Standards for Mineral Resources and Reserves (2014). The Reports have been completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Reserves and Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
ABOUT ORVANA - Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain , the Don Mario gold-silver property in Bolivia , curr
