Orvana Minerals Corp T.ORV

13.7 Kilometers of Drilling add at least 4 years Mine Life

[ganndolph1]

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.

[Helenq]

This post has been removed in accordance with Community Policy

[SmilinJuanG]

Same Gandork nonsense....at least a broken clock is right twice a day....you not even right twice a year....or twice a decade....................... and a brokne clock is just broken............its not actively tryin to lie and mislead................... Holy SmilinJuanIJustTookADumpOnYouButToldYaItWasRoses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Nergy]

Ganndolph is at least trying to write something constructive to this message board, highlighting the fact that Orvana is hiding excellent drill results at the end of a quarterly production report. Yes there is political risk for mining in Spain, Bolivia and Argentina but the valuation of Orvana is totally out of touch.

[Beluga2020]

I agree that the drill results are very good but Ganndolph's continued insistence that management is somehow strategically withholding sales is nonsense. I've heard enough. Same story over and over. Rinse and repeat. No one knows the future of gold prices, therefore no one at Orvana is purposefully keeping gold into the ground or pushing sales into future quarters. C'mon.

[jrj90620]

I thought anyone with even a little knowledge of what govts and central banks have been doing would know that fiat currencies will decline and money(gold) will rise.This isn't a guess.I think it's guaranteed,over the intermediate and long run.

[ganndolph1]

Beluga2020, "Nobody knows the future of gold prices,..." REALLY ???  That is pure NONSENSE and NONSENSE squared!!! Surely, you must be aware of the history of money.  Rome standardized the use of gold ans silver coins as money, and kept a legion in Spain to guard the gold mines that were the source of revenue for the Roman Empire from Augustus going forward. Gold and silver

[Beluga2020]

Haha Gandork you are too funny. Gold producers like Orvana are not sitting on their gold production. Smiling Juan is not holding unsold gold until the price of gold increases to an "acceptable" price. All laughable stuff. It was simply not a spectacular quarter. Don't need to overthink it as you tend to do. Next quarter will be better. You are good with numbers but have made some

[ganndolph1]

Beluga2020, Well, for the past calendar quarter, the banksters have been sitting on the Price of Gold (POG), and now we have confirmation from Juan Gavidia, Orvana's CEO, that he has been sitting on Orvana's GOLD in response.  So based on Orvana's NR, Orvana has been sitting on 7,686 ounces of gold, and 0.8 million pounds of copper in copper concentrates that are in inventory

[Beluga2020]

Yes everyone agrees that the next quarter is going to be fantastic when the inventory is sold. I still don't think Orvana strategically held back sales in order to show a fantastic Q3. They have a track record of not really caring about their retail shareholders and the stock price. If I recall correctly they have always had a significant inventory at quarter end. Gold prices are not much

[maurizion]

With their hugely inflated salaries and stock options we know why they don't want to sell. However if the company is so massively undervalued why has'nt some astute mining CEO made an offer they might not be able to refuse?

[ganndolph1]

Nergy, I don't think that it is accurate to characterize Orvana as hiding their drilling results. When Orvana announced the discovery of the new High Angle East (HAE) structure in the October 22, 2020 news release, I barely took notice of it even though they announced three high grade gold intercepts. When I took my first look at the drill hole data, I concluded that maybe Orvana had added