TORONTO, March 29, 2017 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to report that the first commercial shipment of gold-silver doré was made from the recently re-commissioned carbon-in-leach circuit (the "CIL Project") at the Company's Don Mario Mine.
On March 28, 2017 the first commercial shipment took place, comprising 11 bars with approximately 5,800 ounces of gold and 1,700 ounces of silver, based on provisional assays. As previously announced, Don Mario's first gold-silver doré bar was poured on January 22, 2017 and the CIL circuit is now fully operational. The gold-silver doré bars will be exported for refining and sale pursuant to arrangements with arm's length, third parties.
Jim Gilbert, Chairman and CEO, stated "We are very pleased with the successful re-commissioning of the CIL plant at Don Mario. The commissioning was executed as planned and is now achieving enhanced gold recovery approaching our target of approximately 80%. This important milestone at Don Mario Mine is delivering on our commitment to maximize shareholder value by increasing gold recovery, lowering unit costs and, with the enhanced processing capability, facilitating the expected mine life extension opportunities at the Don Mario operation. Congratulations to the Don Mario team on this tremendous achievement."
Total capital costs for the CIL Project are in line with the capital cost estimate established by the Company in 2016 of US$6.4 million to accuracy estimate of +/- 15% including owner's costs and 15% contingency.
The Company anticipates that the CIL circuit will deliver substantially higher average gold recoveries of approximately 80% compared to recent average gold recoveries of approximately 55% from the prior flotation only process. The forecast increase in gold ounces produced is expected to positively impact unitary cash costs and provide free cash flow in the second half of fiscal 2017, allowing for full repayment of the US$7.9 CIL Project financing by the end of fiscal 2017.
About Orvana
Orvana is a multi-mine gold and copper producer. Orvana's operating assets consist of the producing gold-copper-silver El Valle and Carlés mines in northern Spain and the producing gold-copper-silver Don Mario mine in Bolivia. Additional information is available at Orvana's website (www.orvana.com).
