From the Gold Report What is happening with Orvana Minerals Corp?
Joe Mazumdar: Orvana Minerals is in production and needs to get its operations to steady-state levels. The company needs a few quarters to hit its targets and increase cash flow. It had technical issues with the startup at both of its operations and was punished in a downward-trending equity environment. Investors were concerned about its working capital position as Don Mario, its Bolivian operation, failed to generate meaningful positive cash flow due to a slow commissioning due to the processing plant. The problem at the Don Mario operation has been an issue of recovery rates from treating oxide and transitional ore with the leach precipitation flotation (LPF) circuit. Orvana has adjusted its process flowsheet to stabilize the recovery rates, so that Don Mario does not drain its cash reserves. Also, the company had grade issues at its flagship project in northwestern Spain, El Valle-Boinás/Carlés (EVBC). Orvana needs to get the EVBC head grade up. This is a function of getting more road headers (mining instruments) into the high-grade zones. The throughput is increasing as Orvana slowly gets its shaft into place and de-bottlenecks the underground operation. Once the shaft is in place, the throughput should improve markedly and provide steady-state head grades. The plant has been running very well.