RE:RE:RE:2017 Presentation confirms; this is a trade Fastlane2,
Exactly one year ago, Orvana's CEO Gilbert gave his presentation at the 2017 Precious Metals Summit where he told us that Orvana's goal was to achieve a 50:50 mix of oxide and skarn ore and get to 4 g/t average head grades at El Valle. And guess what??? One year later, and it may come as a shock to you that Orvana has achieved this goal.
This news comes via Slide 5 of Orvana's September 2018 presentation which may be found in the following link:
Orvana September 2018 Presentation 
Here are the details on Orovalle's Operations Turnaround:
- Safety and Environmental matters first
- Transformed UG to soft ground mining as a priority
- Modified process plant to accomodate throughput of higher oxides ore (higher grade)
- Increased average head grade from 2.1 to 3.7 g/t Au
So let's do the math. Gold recoveries have been running at 93 percent thanks to an excellent metals recovery plant that is designed to process oxide and skarn ore simultaneously. At a 2000 tpd throughput rate, we have:
2000 tpd x 90 days/quarter x 3.7 g/t /31.1 g/troy ounce x 93 % = 19,915 troy ounces
Ten percent higher ore grades implies 10 percent lower costs as fixed costs get spread over more ounces of production.
So Q4 2018 cash cost = $991 x 90 percent = $891/ounce
AISC goes from $1181 USD to $1062 USD/ounce
With those cost numbers, one has to conclude that Orovalle had a profitable quarter in spite the drop in the price of gold to $1180 USD.
At Don Mario, the Cerro Felix open pit is in its second quarter of production, so gold grades should have increased from 1.9 g/t to 2.8 g/t. Based on Orvana's guidance on the presentation Slide 10, gold production for Q4 should be between 13047 ounces and 16047 ounces. My estimate is gold production of 14,000 ounces close to the midpoint of Orvana's guidance. There is no copper in the Cerro Felix ore, so the copper flotation circuit is on stand by and the milled ore would have run through the CIL with gold poured into gold dore bars.
EVBC and Don Mario combined gold production for the quarter of almost 33,000 ounces would represent a 20 percent quarter on quarter increase over last quarter's record gold production of
26.761 troy ounces. The following graphic shows my forecast for fiscal Q4 2018. The 3.7 g/t head grade at Orovalle implies a 48 percent oxide ore mix.
If you act fast, you may even be able to pick up some ORVMF shares at the current 12.11 cent US ask price while they are still available to be had!!!!!!