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Orvana Minerals Corp T.ORV

Alternate Symbol(s):  ORVMF

Orvana Minerals Corp. is a multi-mine gold-copper-silver company. It is involved in the evaluation, development and mining of precious and base metal deposits. Its assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. The El Valle and Carles mines and the El Valle processing plant are a producer of copper concentrate and dore. El Valle is located in Asturias, Northern Spain. The Don Mario Operation is in San Jose de Chiquitos, Southeastern Bolivia. The Don Mario Operation consists of a set of assets that includes Las Tojas orebody, and the previously mined out lower mineralized zone, upper mineralized zone and Cerro Felix mines. The Taguas Property consists of 15 mining concessions over an area of 3,273.87 hectares, held and managed by its subsidiary Orvana Argentina S.A. Taguas is located in the province of San Juan, on the eastern flank of the Andes.


TSX:ORV - Post by User

Bullboard Posts
Comment by geezer321on May 24, 2013 9:46am
132 Views
Post# 21436333

RE: RE: Vote of confidence

RE: RE: Vote of confidence

"I also got info that some sort of production update is due in the coming weeks."

 

Resuming production updates at this time indicates a production update will dispell recent concerns over the price of gold.   In the first month of Q3 average gold prices were higher and Orvana was making improvements. 

 

Without reducing Capex or Opex costs, without increasing tons processed at EVBC, without increasing recovery rates at EVBC, without increasing recovery rates at UMZ, without accessing sulphide ores at UMZ, and without financial and derivative gains Orvana can stay at the current profitability level even with a 20% drop in gold prices from the average realized gold price, $1,616.00, in the last quarter with just an increase in grade at EVBC alone.

 

If gold prices dropped 20% from the $1,616.00 realized in the Q2 to $1,293.00 Orvana would stay at the same level of profitability as in Q2 if EVBC gold grade increased from the 3.01oz/ton obtained in Q2 to 3.61g/ton.

 

This is highly likely.  In Q1 Orvana attained a grade  3.19oz/ton and this was in earlier going prior to the shaft being operational.  Opex expenses and gold grade only dropped back fractionally in Q2 because of development efforts to complete the shaft and access higher grades.  Orvana is now in a position to extract those higher grade ores in the next half of the year.  The higher grades are there.  Here are the grades from the technical report:

 

Effective at July 31, 2012, the EVBC Mine contained (i) proven reserves of 2,064 million tonnes at 3.05 grams per tonne gold and 0.71% copper and probable reserves of 5.835 million tonnes at 3.53 grams per tonne gold and 0.46 copper, and (ii) measured and indicated resources, including reserves, of 2.983 million tonnes at 3.98 grams per tonne gold and 0.78% copper and 5.486 million tonnes at 5.23 grams per tonne gold and 0.58% copper, respectively.

 

However, Orvana is not limited to just increasing gold grades at EVBC to stay at the same level of profitability, they have all those other leverages.

Bullboard Posts