Orvana Press Release.............ORVANA REPORTS OPERATING RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2006 TORONTO, ONTARIO, February 14, 2007
Orvana Minerals Corp. (TSX symbol: ORV)announced operating results today with net income of US$3.8 million (US$0.03 per share) on revenues of US$11.1 million for the quarter ended December 31, 2006 (the “first quarter fiscal 2007”) compared to net income of US$2.7 million (US$0.02 per share) on revenues of US$8.5million for the first quarter ended December 31, 2005 (the “first quarter fiscal 2006”). Cash provided by operating activities amounted to US$6.6 million for the first quarter fiscal 2007 compared to US$3.2 million for the first quarter fiscal 2006.Dollar amounts in the remainder of this news release are in United States dollars unless stated
otherwise, and fine troy ounces of gold are referred to as “ounces”.
The Company produced 18,847 ounces of gold and sold 18,358 ounces in the quarter ended December 31, 2006 compared to 20,270 ounces produced and 17,939 ounces sold in the quarter ended December 31, 2005.
Orvana President and Chief Executive Officer, Carlos Mirabal said, “Despite the lower than planned mill head grades during October due to some ventilation maintenance work in some
production faces, head grades increased in November to normal levels and we expect that gold production for the fiscal year will meet the plan. It should be mentioned that, like all mining
companies, we have experienced cost increases but we are still among the lowest cost gold producers. We have engaged Kappes, Cassiday & Associates to complete a full feasibility study of the
Upper Mineralized Zone. If we decide to proceed with this investment in the Upper Mineralized Zone, the life of the Don Mario Mine will be extended to about the year 2016. Once we have completed the full feasibility study, we will reassess all risks related to this project, including the political climate and the Bolivian government’s policies affecting mining to determine whether
we are able to advance the Upper Mineralized Zone project in a risk-effective way for our shareholders.
We will also continue exploration on other mining concessions in the vicinity of the Don Mario Mine and this investment spending is continuing in fiscal 2007. Our investment strategies must also respond to the Company’s need to broaden its mineral
reserve base beyond Bolivia. We are currently reviewing and evaluating other investment opportunities in Argentina, Chile and Peru.”