TSX:ORV
Highlights
- Production of 10,101 Gold Equivalent Ounces (7,775 gold ounces, 1.1 million copper pounds and 26,728 silver ounces).
- In
January 2024 , Orovalle successfully concluded negotiations regarding basic terms of its 2023-2025 Collective Bargain Agreement ("CBA"), which were ratified by workers' assemblies. Upon agreement to the basic terms of the new CBA, the 3-hour stoppages per shift strike that had commenced in midNovember 2023 were halted. - As a consequence of this non-recurrent event, Orovalle's second quarter performance has been negatively impacted, and the tonnage mined and milled was below the plan for the quarter. Q2 FY2024 throughput of 136,371 tonnes was 23% below the second quarter of fiscal 2023. Gold grade was below the plan for the quarter, and copper grade was above the plan for the quarter, as a result of a different ore blend due to the changes in backfilling and mining sequencing.
- 2,854 m of Infill and Brownfield drilling, with key intercepts in Boinas South as follows:
- DDH 23SB181: 20.65 m @ 9.01 g/t Au – 0.29 %Cu
- DDH 23SB189: 11.50 m @ 3.26 g/t Au – 0.52 %Cu
3.00 m @ 52.98 g/t Au – 0.48 %Cu
- DDH 23SB191: 12.20 m @ 4.03 g/t Au – 1.15 %Cu
- DDH 23SB197: 11.00 m @ 4.11 g/t Au – 0.4 %Cu
"We are committed to continue optimizing operations at El Valle and improve cost efficiency, always in line with our safety standards", he added.
Q2 FY2024 Production Results
- 7,775 gold ounces produced. Orovalle is targeting to reach the lower end of the 2024 production guidance of 41,000 - 45,000 Oz.
- 1.1 million copper pounds produced, on track to meet fiscal year 2024 guidance of 3,300 – 3,700 K lbs.
Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | YTD Q2 FY2024 | FY 2024 Guidance | ||
Ore milled (tones) | 136,371 | 130,267 | 177,853 | 266,638 | ||
Gold equivalent (oz)(1) | 10,101 | 9,550 | 14,470 | 19,651 | ||
Gold | ||||||
Grade (g/t) | 1.97 | 2.09 | 2.21 | 2.03 | ||
Recovery (%) | 90.0 | 91.5 | 91.9 | 90.8 | ||
Production (oz) | 7,775 | 7,994 | 11,599 | 15,768 | 41,000 - 45,000 | |
Copper | ||||||
Grade (%) | 0.47 | 0.32 | 0.36 | 0.40 | ||
Recovery (%) | 78.0 | 76.3 | 81.2 | 77.3 | ||
Production (K lbs) | 1,095 | 702 | 1,144 | 1,797 | 3,300 - 3,700 | |
Silver | ||||||
Grade (g/t) | 8.17 | 6.77 | 8.40 | 7.49 | ||
Recovery (%) | 74.6 | 72.0 | 72.9 | 73.4 | ||
Production (oz) | 26,728 | 20,393 | 35,000 | 47,121 |
(1) | Gold Equivalent Ounces ("GEO") were calculated using the following average market prices: | |
Q2 FY2024: | ||
Q1 FY2024: | ||
Q2 FY2023: | ||
GEO is a Non-GAAP Financial Performance Measure. For further information and detailed reconciliations, please see the "Non-GAAP Financial Performance Measures" section of the Company's Q1 FY2024 MD&A. |
Exploration Update – Orovalle
Drilled Meters – Q2 FY2024 | Infill | Brownfield | TOTAL |
| 295 | 2,559 | 2,854 |
Boinás South:
2,854 m were drilled continuing with the mineral definition between Boinas South and Black Skarn to add new resources and using 10*10 m drilling grid (See Figure 1). Twenty drill holes were executed intersecting calcic garnet skarn affected by retrogradation phases and mineralized with copper sulphides (chalcopyrite and bornite). Drilling program will continue during the third quarter to complete the mineral definition.
Infill and brownfield drill holes samples were analyzed in Orovalle's Laboratory.
Sample preparation was carried out at the El Valle facility. All diamond core samples have been prepared using the following procedure, once split:
The core samples are dried at a temperature of 105ºC and then crushed through a jaw crusher to 95%<6 mm. The coarse-crushed sample is further reduced to 95%<425 microns using an LM5 bowl-and-puck pulverizer. An Essa rotary splitter is used to take a 450 g to 550 g sub-sample of each split for pulverizing. The remaining reject portion is bagged and stored. The sample is reduced to a nominal -200 mesh using an LM2 bowl-and-puck pulverizer. 140 g sub-samples are split using a special vertical-sided scoop to cut channels through the sample which has been spread into a pancake on a sampling mat. Samples are then sent to the laboratory for gold and base metal analysis. Leftover pulp is bagged and stored.
After sample preparation, 30g samples are analyzed for Au by fire assay with an atomic absorption spectroscopy (AAS) finish and two-gram samples for Ag, As, Bi, Cu, Hg, Pb, Sb, Se, and Zn by ICP-optical emission spectroscopy (ICP-OES) after an aqua regia digestion.
In case of the samples sent to an external laboratory, 30 g samples are analyzed for Au by fire assay with an atomic absorption (Au AA-25) and 35 elements by ICP (ME-ICP41) after an aqua regia digestion. When Au and Ag values are >100 ppm and Cu and As values are >10,000 ppm, specific analysis methods are used to determinate the final grade.
The reported work has been completed using industry standard procedures, including a quality assurance/quality control ("QA/QC") program consisting of the insertion of certified reference material, blanks and duplicates samples into the sample stream.
The exploration update was prepared under the supervision of Guadalupe Collar Menéndez, a qualified person for the purposes of NI 43-101 and an employee of
Financial Performance:
Q2 FY2024 financial highlights will be released with the first quarter financials, expected mid-May, 2024.
ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing
Cautionary Statements – Forward-Looking Information
Certain statements in this presentation 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", "are projected to" or "confident of" 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 ability to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company's most recently filed financial statements. The estimates and assumptions of the Company 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 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,
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: the potential impact of global health and global economic conditions on the Company's business and operations, including: our ability to continue operations; and our ability to manage challenges presented by such conditions; the general economic, political and social impacts of the continuing conflict between
Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company's mineral projects are intended to provide an overview of management's expectations with respect to certain future activities of the Company 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, 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. 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 the Company and may not be appropriate for other purposes.
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