ganndolph1 wrote: all,
Orvana's current mine life based on the NI 43-101 report dated November 30, 2020 calls for production through FY 2025. However, with the release of 13.7 kilometers of drilling data from the first half of FY 2021, that number has conservatively been extended to 2029 with the addition of 1.679 million metric tons of ore grading 5.91 g/t gold, 31.9 g/t silver, and 0.9 percent copper for an added 319,275 ounces of gold, 1,723,891 ounces of silver, and 33.65 million pounds of copper.
I get this result by multiplying the strike length of each deposit times the cross section width times the average thickness of all economic drilling intercepts based on a gold equivalent cut off grade of 2.52 g/t Au Eq. This estimate of is a conservative number for two reasons.
- First, I used a specific gravity of2.25 assuming all ore is oxide ore, and SB ore is likely to be skarn ore having a high copper content. Same for part of area A208.
- Second, I assume that each mineralized intercept counts as an independent measure of cross section thickness, and some drill holes have multiple economic intercepts which should be added together as these cross sections are adjacent in some instances and represent multiple ore veins in other cases.
For example, the average thickness of A208 is 8.4 meters based on the cumulative thickness of each drill hole intercept added together, while counting each economic intercept as an independent sample of cross section thickness results in a more conservative number of 2.72 meters.
Based on the current mine plan Orovalle is forecast to produce 60,000 ounces of gold, 187,000 ounces of silver, and 6.552 million pounds of copper in FY 2021.
If Orvana mined only the High Angle East deposit in 2026, Orvana could produce 125,000 ounces of gold, 861,000 ounces of silver, and 10 million pounds of copper based on current recoveries for each metal.
In 2027, if Orvana mined only the skarns in Boinas South, Orvana could conservatively produce 75,000 ounces of gold, 507,000 ounces of silver, and 11.4 million pounds of copper from this deposit.
In 2028, if Orvana only mined the A208 deposit, Orvana could conservatively produce 67,000 ounces of gold, 8,000 ounces of silver, and 0.43 million pounds of copper from this nearly all gold deposit.
It should be noted that each deposit is open at depth and there is considerable scope for these ore bodies to grow over time as more infill drilling is conducted.
| AREA | TONNES | AU | AG | CU | Gold | Silver | Copper | |
| | t | g/t | g/t | % | ounces | ounces | lb | |
| HAE | 641694.1 | 6.519716 | 49.13264 | 0.932835 | 134,523 | 1,013,766 | 13,193,021 | |
| SB | 607232.1 | 4.132193 | 30.58717 | 1.121994 | 80,682 | 597,219 | 15,016,088 | |
| S107 | 154725.6 | 6.361556 | 20.78971 | 1.431154 | 31,649 | 103,431 | 4,880,454 | |
| A208 | 275913.4 | 8.16305 | 1.06804 | 0.093127 | 72,421 | 9,475 | 566,317 | |
| | | | | | | | | |
| Total | 1,679,565 | 5.911919 | 31.92078 | 0.909186 | 319,275 | 1,723,891 | 33,655,881 | |
| | | | | Metal Price | $1750 | $25 | $4.10 | |
| | 680000 | | | | $558,731,340 | $43,097,286 | $137,989,111 | $739,817,737 |
So a day before Orvana's news release, GoGold Resources issues the following news release:
GoGold Drills 1,676 g/t AgEq over 3.4 meters within 69.3 m of 134 g/t AgEq from Surface at El Favor in Los Ricos North. Quite impressive!
GoGold Resources' NR includes 5 drill holes highlighting their maximum intercept of 22.34 oz of AuEq! So let's compare GoGold's NR with Orvana's publication of 17.3 kilometers of drilling results.
Guess what?!!
Orvana's maximum drilling intercept at High Angle East is 4.3 meters at 43.66 g/t AuEq--nearly double GoGold's maximum drilling intercept at Los Ricos North! And at A208,
Orvana had three drill hole intercepts of greater than one ounce gold equivalent, and a drill hole with 8.8 meters of 29 g/t Au Eq for a total of 4 holes beating GoGold's maximum gold equivalent grade.
The maximum drilling intercept at S107 was 44.89 g/t Au Eq--more than double GoGold's best drill hole.
So, in total Orvana had 6 drill holes which beat GoGold Resources' best intercepts by a factor of 2, and Smiling Juan Gavidia publishes these impressive results in a total matter of fact way as a footnote to the quarterly production report. And for comparison, GoGold's production at Parral was 7396 ounces of gold equivalent, while Orvana produced 14,196 ounces gold equivalent and will probably sell more than double Parral's GEO for the quarter.
So, with double Parral's gold equivalent production, Orvana closed on Friday with a market cap of $30.5 million USD closing at22.5 cents USD, while GoGold Resources closed the day at $2.12 USD and with a market cap of 569 million USD. So Orvana is currently trading at 5 percent of GoGold's market cap with double the gold equivalent production per quarter and with better drilling results than the Los Ricos' best results.