(1) The UMZ Mine is an open-pit copper, gold and silver mine located in south-eastern Bolivia. The UMZ Mine commenced commercial production on January 1, 2012. Information relating to production for fiscal 2012 includes production from the UMZ Mine during the start-up and commissioning period in the first quarter of fiscal 2012. Sales for the first quarter of fiscal 2012 from the UMZ Mine were credited against capitalized commissioning costs and sales from January 1, 2012 onwards were recorded as revenue.
(2) The sales volumes for the first quarter of fiscal 2013 have been adjusted from the previously reported information to deduct volume adjustments relating to final liquidations from prior period sales. Sales volume used to calculate unitary cash costs do not include volume adjustments relating to final liquidations from prior period sales.
(3) Total cash costs (co-product) per pound of copper and per ounce of gold and silver are non-IFRS performance measures with no standard definition under IFRS. For further information and a detailed reconciliation, please see the "Other Information - Non-IFRS Measures" section of the Q2 2013 MD&A.
Orvana has been advancing its copper project (the "Copperwood Project") located in the Upper Peninsula of Michigan, United States. The Company has achieved most of its major permitting milestones in calendar 2012. In February 2013, the Company received the Wetland Permit which is the last major permit necessary. Optimization work is being done further to the Copperwood Project feasibility study, with a focus on additional metallurgical testing and mine design.
Total capital expenditures in respect of the Copperwood Project during Q2 2013 and for the six months ended March 31, 2013 were $1,215 and $2,285, respectively, compared to a total of $5,842 in fiscal 2012. These capital expenditures included metallurgical testing, mine planning, costs associated with permitting including the Wetland Permit, well field investigation and peer review and supporting costs.
Orvana is continuing to investigate a variety of possible options to enhance the value of the Copperwood Project to Orvana's shareholders including mine financing, partnerships and third party acquisition.
Orvana's short-term focus is operational optimization at the EVBC Mine and the UMZ Mine to generate increasing operating cash flows in order to pay down debt. As well, Orvana will continue to de-risk the Copperwood Project and look for means to possibly advance the mine development. Operational and corporate reviews have been initiated to seek means to reduce operating and capital costs given the volatility in the metals markets.
Fiscal 2013 guidance for production is 75,000 ounces of gold, 18 million pounds of copper and 850,000 ounces of silver.
Total EVBC Mine production in the first half of fiscal 2013 was 29,662 ounces of gold (fiscal 2013 guidance of 63,000), 2.8 million pounds of copper (fiscal 2013 guidance of 6 million) and 84,725 ounces of silver (fiscal 2013 guidance of 200,000). During fiscal 2013, the Company's primary focus at the EVBC Mine is on improving head grade, increasing gold production and reducing total cash costs (net of by-product revenue) per ounce of gold.
Total UMZ Mine production in the first half of fiscal 2013 was 6,242 ounces of gold (fiscal 2013 guidance of 12,000), 5.4 million pounds of copper (fiscal 2013 guidance of 12 million) and 340,101 ounces of silver (fiscal 2013 guidance of 650,000). During fiscal 2013, the Company's primary focus at the UMZ Mine is on improving recoveries.
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