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Note: As of October 1, 2012, the effective date of the Technical Report to be filed.
The mine plan now consists of 720,000 tonnes per year of Flotation-Only processing of Transition and Sulphide ores and 100,800 tonnes per year of LPF processing of oxide ores through 2017; the LPF processing of 224,300 tonnes of certain stockpiled oxide ores will continue in 2018. Model parameters are as follows:
Mine Plan: Flotation-Only - 2,700 tonnes/day (263 days/yr) LPF - 1,667 tonnes/day (60 days/yr) 224,300-tonne oxide stockpile sent to LPF in 2018Gold Flotation-Only recovery: (Transition) - 50% Flotation-Only (Sulphide) - 60% LPF - 56%Copper Flotation-Only recovery: (Transition) - 60% Flotation-Only (Sulphide) - 80% LPF - 60%Silver Flotation-Only recovery: (Transition) - 50% Flotation-Only (Sulphide) - 60% LPF - 40%
Key financial input parameters are (all values in US dollars):
Sustaining capital: $26,900,000Mine operating cost: $4.78 per tonne (ore + waste)Strip ratio (waste: ore): 0.55:1Processing cost: LPF: $80.23 per tonne ore (Oxide) Flotation -only: $13.09 per tonne ore (Transition, Sulphide)G&A: $6.76 per tonne ore (LPF) $5.68 per tonne ore (Flotation-Only)Copper sales: $0.85 per pound (LPF) $1.28 per pound (Flotation-Only)Gold sales: $127.64 per ounce (LPF) $168.80 per ounce (Flotation-Only)Silver sales: $3.40 per ounce (LPF) $5.20 per ounce (Flotation-Only)Copper price (LOM): $3.00/poundGold price (LOM): $1,400.00/ounceSilver price (LOM): $25.00/ounce
Certain oxide resources are not included in the mine plan, whether in situ or in stockpile, since treatment by Flotation-Only or LPF processes is not practical and/or not economically viable because of the input price deck or other parameters, but will be processed opportunistically during the life of mine. Likewise, some Transition and Sulphide resources not included in the mine plan will also be mined and processed opportunistically if extraction of the metals is economically viable.
Products made from the LPF process include a copper cement and a talc-rich precious-metal concentrate, and from the Flotation-Only process a copper concentrate with levels of lead from 8% to as high as 20% as well as a lead concentrate. All products are under contract.
"This mine plan outlines a path forward that optimizes the UMZ operation," said Bill Williams, President and Chief Executive Officer of Orvana Minerals Corp. "We will continue to pursue opportunities to improve recoveries as well as seek alternatives to extend production beyond 2018, including exploration in proximal concessions," he added.
During October, production was about 973,000 pounds of copper, 1,440 ounces of gold, and 76,000 ounces of silver. Total cash costs, on a co-product basis including all royalties and based on sales, were approximately $1.80 per pound copper, $910 per ounce gold and $16 per ounce silver. During November, production was about 1,060,000 pounds of copper, 1,290 ounces of gold, and 62,000 ounces of silver at total cash costs of less than $2.00 per pound, less than $980 per ounce, and less than $22.00 per ounce, respectively. Whereas the Flotation-Only process was operable during October and November, the LPF process is currently active and processing will switch over to Flotation-Only next week and continue in January.
