Orvana Update Found this....decent read
Orvana Minerals working to optimize mining operations, advance copper project
Wed 2:36 pm by Carrie White
Orvana Minerals is focusing on optimization at its copper-gold-silver mines in Spain and Bolivia, while advancing its copper development in Michigan, U.S. Corp. () is moving forward at its two mining operations, with a focus on optimization and cost reduction, while it continues to advance its copper development project.
The company’s two operating mines are located in Spain and Bolivia, while its development project is situated in Michigan, U.S.
President and CEO Bill Williams says that over the last two quarters, both mines have notably improved production-wise and Orvana is now focused on the stabilization and optimization of the two operations, while lowering its costs as much as possible.
Last month the company released its third-quarter results noting that revenue and production increased.
“I think the improvement of our operations was reflected in our financials,” says Williams.
"Our balance sheet is a lot better than it was at the beginning of the year, and we’re moving forward with positive cash flow from both operations.”
Along with a focus on stabilizing and optimizing its existing operating mines, Williams says Orvana is “very much focused” on paying down long- and short-term debt of approximately $60 million and $10 million, respectively.
“Part of [the result of] optimizing the operations is that it will increase cash flow, which allows us to pay down debt,” Williams says.
In an update on operations in Spain, Williams says a major milestone was the commissioning of the shaft at the El Valle-Boinas Carles (EVBC) gold-copper mine in August, which is expected to be fully operational this month.
A host of delays related to the commissioning of the EVBC shaft left Orvana to lower its full-year guidance for gold production by 4,500 ounces, but Williams is optimistic now that the shaft is ready to operate.
“It means more than anything a reduction in the congestion underground for the haulage of ore to the surface,” he explains.
“Prior to the shaft we were hauling our ore from the Boinas area - about three kilometres – to the plant. This will shorten that haul to 500 metres. It’s not only a logistical issue, but it’s a cost benefit as well over time.”
Williams adds that in the Boinos area, Orvana has an underground crusher and says that pre-crushing will facilitate better throughput at the plant.
“We will strive throughout the year to increase our throughput with a minimal outlay of capital and one of the ways to do that is pre-crushing,” he notes. “The underground crusher facilitates that and we plan to utilize a mobile crusher near the plant.”
At the company's mine in Bolivia, Williams says that Orvana has “completely turned this operation around”.
The company’s open-pit mine on the copper-gold-silver Upper Mineralized Zone (UMZ) of the Don Mario district also improved in the third quarter. In July alone, output was 76,488 tonnes.
Copper production reached 1.35 million pounds, showing head grades of 1.68 per cent, with a 47.9 per cent recovery rate. Meanwhile, silver production totalled 90,121 ounces with an 83.2 g/t head grade and a recovery of 44 per cent.
Gold production stood at 1,481 ounces with a head grade of 1.68 g/t and recovery of 35.8 per cent.
While Williams is pleased with the mine’s increase in production, he says Orvana is determined to improve recovery rates at the operation.
“We had the flexibility to change our processing method, due to the nature of the ore body and infrastructure in place,” he says.
“We’ve been doing a flotation-only process of mixed ores and have been very successful, increasing our throughput significantly to approximately 2700 tonnes per day.”
Williams admits that the company has “a lot of work to do on the recovery of the metals”, but says things are progressing well and that margins are improving with the new processing method.
“To make a better copper concentrate we are now making a lead concentrate,” he adds.
“That’s been successful and we’ve been able to market that lead concentrate and that improves our cash flow.”
Despite struggles with the leach-precipitation-flotation process, Williams says the company strives every day to improve recoveries and cash margins.
“We’ve reached our major milestone [at UMZ] in the sense that we’ve really got our throughput up significantly,” Williams says.
“I think we have stabilized the operation there, now we have to optimize.”
As the two operating mines go through the stages of optimization, Orvana’s development project in Michigan continues to move forward with the permitting process.
The project, named Copperwood, is undergoing review of its wetlands and discharge permit applications.
Orvana says it is working with the authorities to handle any questions or observations that they may have.
“It is conceivable that we could have both permits before the end of the year,” Williams says.
“It’s one of the few copper projects out there that could very well be in production in 2015 and we are confident we’re going to get these two permits - it’s just a matter of time.”
Williams adds that Orvana is seeking a partner for Copperwood and has received “incredible community and government support” for the project.
“We are moving forward at a slower pace, with production expected in 2015, and we are confident about the future copper price.”
Aside from operations, Orvana also made some changes in management that Williams feels align well with the company’s goals going forward.
In June, the company appointed Daniella Dimitrov as CFO, who has 18 years of experience in capital markets and in operational mining and financial services.
And just last month, Orvana appointed Jim Jacques to the role of COO. Jacques has 25 years of underground mining experience and held various operations management positions during his career.
“Having these two on our senior management team is a great strength for the company,” says Williams.
“Things are moving forward in the right direction here at Orvana,” he concluded. “We have a base that we can really build on now.”
Looking ahead, Williams says that investors can expect another update and guidance for 2013 by the end of the year – Orvana ends its fiscal fourth quarter and year on September 30.