TORONTO, ONTARIO -- (Marketwire) -- 01/20/11 -- Orvana Minerals Corp. (TSX: ORV) today announced a development update for the El Valle-Boinas/Carles ('EVBC') gold-copper mine in northern Spain as well as results from the underground drilling program at Carles, the satellite deposit.
Development update
The development in the El Valle/Boinas and the Carles mines is progressing well. The development has focused on preparing the mine infrastructure, main ramps and stope accesses. During December 2010, an important ventilation raise was finalized in El Valle-Boinas mine between the 200m and 100m levels and has significantly improved the working conditions in the deeper levels of the mine. All of the important production equipment has been delivered, and subsidiary equipment will be delivered during early 2011. Approximately 15,000 tonnes of ore from the development work has been stockpiled. Mining of the ore from both mines is scheduled to progressively increase over the next few months. All of the important equipment in the processing plant has been refurbished, tested, and proven to be operational. First production is scheduled during the spring of 2011.
Drilling Results
The drilling is a part of a planned 12-month, 20,000-metre program that commenced in September, 2010. The results reported herein are from the Capa Z zone, which zone lies between the Carles North and Carles East orebodies and consists of over 80% inferred resources. Mineralization is hosted by a subvertical, tabular skarn that wraps around an intrusive. These holes are the first that the Company has drilled in the Capa Z zone and were both infill and stepout holes. Results are summarized in the table below.
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True
From, To, Thickness, Au, Ag, Cu, Recovery,
Hole metres metres metres gpt gpt % % Zone Comments
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10CE1001 94.35 103.20 5.58 4.21 25.8 2.32 99.8 Capa Z Infill
10CE1002 72.30 74.50 1.39 3.44 0.6 0.00 99.4 Capa Z Infill
10CE1003 25.10 28.00 1.91 2.13 1.6 0.17 100.0 Capa Z Infill
10CE1003 49.40 50.85 0.96 2.89 7.3 0.47 96.0 Capa Z Infill
10CE1003 58.85 59.60 0.50 59.60 13.7 0.05 93.0 Capa Z Infill
10CE1004 122.20 128.25 1.63 2.69 2.1 0.02 89.8 Capa Z Stepout
10CE1005 79.95 81.65 0.92 4.25 0.5 0.01 99.0 Capa Z Infill
10CE1006 86.90 91.75 2.57 1.76 10.3 0.86 99.0 Capa Z Infill
10CE1007 no intercepts Capa Z Infill
10CE1008 64.60 66.60 1.64 3.38 8.2 0.01 100.0 Capa Z Infill
10CE1009 68.55 69.45 0.77 2.74 1.3 0.05 100.0 Capa Z Infill
10CE1010 105.75 107.30 0.60 2.69 7.5 0.45 100.0 Capa Z Infill
10CE1011 82.45 84.55 1.01 5.33 41.9 1.31 100.0 Capa Z Stepout
10CE1011 87.10 93.30 2.98 4.67 13.7 1.44 98.9 Capa Z Stepout
Note: True thicknesses were determined graphically by measuring the distance
approximately perpendicular to the contacts. No values were capped.
'These results verify the continuity of, and in some cases extend, the mineralization in areas where inferred resources were estimated at Capa Z,' said Agne Ahlenius, General Manager of Kinbauri Espana S.L., a wholly-owned subsidiary of Orvana Minerals Corp. 'Drilling will continue in Carles and we currently have 2 rigs underground that will drill on the A107, San Martin and the Boinas East orebodies at El Valle-Boinas.'
More information related to the EVBC geology and mineralization can be found on the Company's website www.orvana.com.
QA/QC
Security measures were taken to ensure the integrity and validity of the mineralization and proximal rocks in the new drill core under the supervision of Santiago Gonzalez-Nistal, Chief Geologist, Kinbauri Espana S.L.U., a qualified person for the purposes of NI 43-101. The core was sampled based on lithologic and alteration considerations. Assays were completed by ALS Chemex. The QA/QC protocol included internal and laboratory certified reference materials, blanks, duplicates and check assays. A 30-gram sample was analyzed by fire assay methods for gold and a conventional ICP-AES analysis was used for the analysis of 35 elements. Copper values exceeding 10,000 ppm and silver values exceeding 100 ppm were re-analyzed by atomic absorption using a 4-acid digestion.
Qualified Person
The technical information contained in this document was prepared under the supervision of Bill Williams, Ph.D., VP Corporate Development, a qualified person for the purposes of NI 43-101.
About Orvana
Orvana Minerals is a gold producer with a strong balance sheet and is transforming itself into a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles ('EVBC') gold-copper project in northern Spain, which is expected to be in production during Spring, 2011. Orvana owns and operates the Don Mario gold mine in Bolivia where the company is developing the fully permitted copper-gold-silver Upper Mineralized Zone ('UMZ') deposit, which is expected to commence initial production during early 2011. In addition, Orvana is advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com).
Forward Looking Disclaimer
Certain statements in this press release 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.
Forward-looking statements relate to, among other things, all aspects of the development of the Upper Mineralized Zone ('UMZ') deposit at the Don Mario Mine in Bolivia, the El Valle-Boinas/Carles project in Spain and the Copperwood project in Michigan and their potential operations and production; the outcome and timing of decisions with respect to whether and how to proceed with such development and production; the timing and outcome of any such development and production; estimates of future capital expenditures; mineral resource estimates; estimates of permitting time lines; statements and information regarding future feasibility studies and their results; production forecasts; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; future production costs; 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 news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in the Company's most recently filed Annual Information Form, 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 the UMZ deposit, El Valle-Boinas/Carle's and the Copperwood projects being consistent with the Company's current expectations; political developments in any jurisdiction in which the Company 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 the Company'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 Company's control, affect the operations, performance and results of the Company 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; the Company's ability to obtain and maintain all necessary regulatory approvals and licenses; the Company's ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company's ability to develop the UMZ deposit, the Copperwood project or the El Valle-Boinas/Carle's project; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to obtain financing when required on terms that are acceptable to the Company; challenges to the Company'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 the Company operates; general economic conditions worldwide; and the risks identified in Orvana's Management's Discussion and Analysis for the period ended September 30, 2009 under the heading 'Risks and Uncertainties'. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company's Annual Information Form for a description of additional risk factors.
Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company 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.
Contacts:
Orvana Minerals Corp.
Natalie Frame
Investor Relations
(289) 200-7640
Orvana Minerals Corp.
Dr. Bill Williams
Vice President, Corporate Development
(480) 522-7925
Orvana Minerals Corp.
Carlos Mirabal
President and COO
(416) 369-1629
Orvana Minerals Corp.
Roland Horst
Chief Executive Officer
(416) 369-1629
ask_us@orvana.com
www.orvana.com
