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.