RE:RE:RE:RE:First Quarter Gold Production of 27,272 Ounces HowLowCanSheGo,
My first recommendation is that you change your handle to HowHighCanSheGo!
My second recommendation which applies to Orvana news releases and financial reports is to read them at least 5 times, so that you don't miss any material developments!
Q1 FY2019 Production Highlights under sustainable mining principles:
- First quarter gold production of 27,272 ounces; on track to meet 2019 guidance;
- First quarter gold equivalent production of 30,988 ounces;
- Orvana continues to drive productivity improvements at both sites, with sustained higher-grade oxides throughput at El Valle and the consolidation of Cerro Felix open pit at Don Mario.
Juan Gavidia, CEO of Orvana Minerals stated, "We are proud of our fiscal 2019 first quarter, which strongly supports our production guidance as well as maintains production levels achieved in fiscal 2018. El Valle and Don Mario teams are focused on sustainable and reliable production profiles and on improving unitary costs. At El Valle, we are delivering on higher head-grades, productivity enhancements and improving the oxides and skarns blend at the mill. At Don Mario, we continue to mine Cerro Felix while reviewing the potential of extending the mine life by up to three more years through a new processing circuit to treat high-value oxides stockpiles."
El Valle
- Increased gold production of 16,546 ounces; an increase of 7% compared to 15,490 ounces in Q4 FY2018 and 53% compared to 10,785 ounces in Q1 FY2018. Production increase due to higher average head-grade on improved oxides/skarns blend throughput.
- Higher-grade oxides production was 41% of mill feed, compared to 38% in Q4 FY2018.
- Gold head grade of 3.24 g/t improved, compared to 3.06 g/t reported in Q4 FY2018.
- Copper production was 1.4 million pounds, compared to 1.3 million pounds in Q4 FY2018.
Don Mario
- Gold production of 10,726 ounces; a decrease of 19% compared to 13,171 ounces in Q4 FY2018 and a decrease of 13% compared to 12,388 ounces in Q1 FY2018. Production decrease was due to lower head-grade areas mined, according to plan and on track to meet FY2019 guidance.
- Gold recovery of 94.1% or 2% above 92.2% recovery compared to Q4 FY2018.
- Engineering is in progress to develop an economic metallurgical option to treat 2.1Mt oxides stockpile by implementing a Sulphidization-Acidification-Recycling-Thickening "(SART") circuit with associated leach pad and ancillary facilities.
- Target is to have metallurgical option deployed by fiscal 2020.
- Exploration continues apace to extend Don Mario's mine life.
Read that third bullet from Don Mario several times. It sets a clear goal of having a SART circuit on line in fiscal 2020 which is 9 months from now.
The SART circuit would be a new circuit which would provide additonal metals production above and beyond the 40,000 gold ounces per year that the existing plant provides.
We also know that Juan Gavidia awarded a contract for SART 4 days ago. Here is the link to the news release which may also be found on the BQE Water board at stockhouse.com and the following link:
BQE Water NR Here are the details:
"BQE Water Inc, a leader in the management of mine wastewater
and metallurgical bleed streams, has entered into a services
agreement with a wholly owned subsidiary of a Canadian mining
company for the staged implementation of the SART process at
an operating gold mine located in Latin America. The driver for
this project is the possible extension of the mine life in a costeffective
way that simultaneously minimises the project’s
environmental footprint."
"In the first stage of the project, BQE Water will complete the SART plant
engineering design for construction which will enable the client to confirm the
construction budget and overall project economics. Subject to the client's approval in
Q2 2019, the project will proceeed to implementation. At full capacity, the SART plant
is expected to treat up to 600 m3/hr of leach solution, recycle approximately 6,700 metric
tons of cyanide, and recover approximately 3,400 tonnes of copper per year."
The client is obviously Orvana Minerals Don Mario mine, and the 6700 metric tonnes of copper goes along with 330,000 ounces of silver and 12,500 ounces of gold per annum. At current metals prices, we are talking about an additional $45 million USD in revenue for Don Mario in addition to the revenues obtained from the existing plant and CIL which provides 40,000 ounces of gold dore per year. At current metals prices, the SART circuit has the potential to double Don Mario's current gold equivalent production.
I don't believe that doubling Don Mario's revenue in one year can be construed as SETTING THE BAR TO LOW! So now the only question is HOWHIGHCANSHEGO??????