TORONTO, ONTARIO -- (Marketwired) -- 07/08/13 -- Orvana Minerals Corp. (TSX: ORV) (the "Company") announced today production results for the third quarter ended June 30th and is pleased to provide an update on its El Valle-Boinas/Carles ("EVBC") gold-copper mine in northern Spain.
Production at EVBC for the month of June was 5,890 ounces of gold, over 687,000 pounds of copper and 21,793 ounces of silver. For the third quarter of fiscal year 2013, production at EVBC was a record 18,500 ounces of gold, more than 1.9 million pounds of copper and 58,800 ounces of silver.
An alternative production schedule has been completed at EVBC in response to the hoist incident reported on June 17, 2013. The alternative schedule incorporates ramp haulage for Boinas skarns, greater oxides mining at the Boinas Mine and an increase in overall production at the Carles Mine. This revised production schedule will allow the Company to maintain its fiscal year 2013 production guidance of 75,000 ounces gold from its EVBC Mines in Spain and UMZ Mine in Bolivia.
Government authorities have released the hoist site at Boinas to the Company in order to develop a detailed recovery plan and insurance adjusters have visited the site. An internal investigation continues.
International shaft and hoist expert contractors and consultants have been to site as part of the internal investigation and to provide recommendations on the shaft recovery. Although the investigation is not complete, preliminary reports suggest it will take about four to six months to repair the shaft at an estimated cost of $2.5 to $3.5 million. The Company has notified its insurers and has been assisting them with their evaluations. Although such insurers have not confirmed coverage, at this time, the Company does not have any reasons to believe that it will not have coverage in respect of such repairs.
The Company is pleased to have engaged Cementation Canada Inc. as its EPCM contractor who will lead the repair work.
"We are pleased with the revised production schedule from EVBC using ramp haulage and we fully expect to meet our overall fiscal 2013 production guidance." said Michael Winship, Interim President and CEO.
The Company remains focused on increasing cash flow. In light of recent metal price volatility, operating and capital cost review and savings measures are underway.
Orvana Minerals is a multi-mine gold and copper producer. Orvana's primary asset is the El Valle/Boinas-Carles gold-copper Mine in northern Spain. Orvana also owns and operates the Don Mario Mine in Bolivia, processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its Copperwood copper project in Michigan, USA. Additional information is available at Orvana's website (www.orvana.com).
Forward Looking Disclaimer
Certain statements in this press release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects" "plans", "estimates" or "intends" or stating that certain actions, events or results "may", "could", "would", "might", "will" or "are projected to" be taken or achieved) are not statements of historical fact, but are forward-looking statements.
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