TORONTO, Nov. 11, 2020
TORONTO, Nov. 11, 2020 /PRNewswire/ -- Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to announce the commencement of exploration drilling at its Lidia project (the "Lidia Project" or "Lidia"), located 20 km in a straight line from the El Valle mine, in Asturias, Spain. An update is also being provided about the Carlés Deep drilling performed in fiscal 2020.
The Lidia Project is comprised of one investigation permit covering 2,576 hectares in the Navelgas Gold Belt in the region of Asturias, Spain (see location in Figure 1). It is a historic project previously explored by Río Narcea Gold Mines Ltd. ("RNGM"). During RNGM's exploration campaign in 1998, hole Lin-4 was drilled, testing a copper/gold soil anomaly along the northern margin of the Linares intrusive complex. Lin-4 encountered a thick section of altered granodiorite averaging 0.4 grams per tonne gold over a width of 208 meters. The geochemistry and alteration are indicative of a gold porphyry system (Rio Narcea Gold Mines Ltd., 1998 Annual Report – "Navelgas Gold Belt" (page 14)).
Orvana has performed several exploration activities at the Lidia Project, starting with the validation of historical drill hole assay at its El Valle laboratory (re-logging and re-sampling); and continuing with 1:10,000 geological mapping, and rock sampling, in 2016. Between 2017 and 2018 a geophysics campaign was also completed.
4,000 DDH meters are planned to drill in two targets. One is a potential skarn mineralization along the western edge of the granodiorite (Target 1) and the other is a gold porphyry system (Target 2). See Figure 2. The drilling program is expected to be completed by March 2021.
Carlés Deep Drilling Update
Orvana has completed the analysis of its Carlés Deep drilling campaign carried earlier in the year. A total of 2,367 meters were drilled in one borehole plus 3 wedges. All four DDH's intercepted the targeted skarn orebody extension at depth, as expected (see Table 1). With the encouraging verification of the continuity of the skarn, 400 meters downdip, the Company will now assess the potential of this area in the context of a long term mine design strategy.
Table 1 – Carlés Deep DDH Results
*Reported intercepts are not true widths as there is currently insufficient data to calculate true orientation.
Mr. Raúl Álvarez, Head of Exploration of Orvana, stated: "We are optimistic about this new drilling campaign at Lidia, as historical data suggests the potential identification of a new gold project for Orvana. Lidia, and Carlés Deep, are the latest examples of our robust exploration commitment in the Asturias Region".
Exploration Quality Control and Qualified Persons
The analytical work for the 2020 brownfield drilling program is being performed by Orovalle's laboratory, which is ISO 9001:2015 certified. Sample preparation was carried out at its El Valle facility. All diamond core samples has been prepared using the following procedure, once split:
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 Orovalle Minerals S.L., a subsidiary of Orvana. Ms. Collar Menéndez has approved the scientific and technical disclosure of the exploration results contained in this press release.
About Orvana Minerals
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 and the Don Mario gold-silver property in Bolivia, currently in care and maintenance. Additional information is available at Orvana's website (www.orvana.com).
Cautionary Statements - Forward-Looking Information
Certain statements made herein 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", "intends" or "anticipates" 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, the continuing development of the exploration programs at the Lidia Project and at Carlés, the potential impact of the COVID-19 on our the Company's business and operations, including our its ability to continue operations; our the Company's ability to manage challenges presented by COVID-19; the accounting treatment of COVID-19 related matters; Orvana's ability to prevent and/or mitigate the impact of COVID-19 and other infectious diseases at or near the Company's mines and support the sustainability of its business including through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from the medical community, and engagement with local communities and authorities; Orvana's ability to achieve improvement in free cash flow; the potential to extend the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited to in the case of Don Mario, the processing of the mineral stockpiles and the reprocessing of the tailings material; Orvana's ability to optimize its assets to deliver shareholder value; the Company's ability to optimize productivity at Don Mario and 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, including without limitation, the ability to complete the acquisition of the Taguas Property; future financial performance, including the ability to increase cash flow and profits; and 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 the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies 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 and Don Mario 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 continue to operate the El Valle and/or Don Mario and/or ability to resume long-term operations at the Carlés Mine; the Company's ability to successfully implement a sulphidization circuit and ancillary facilities to process the current oxides stockpiles at Don Mario; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to execute on its strategy; 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 the Company's disclosures. 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 Disclosures for a description of additional risk factors.
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.
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