El Valle achieves highest gold quarterly production levels since 2014

Interim CEO at Oervana, Juan Gavidia, stated: "At El Valle, we are proud of the results of our ramp-up of higher gold grade oxide production, as we have reached our highest gold quarterly production levels since 2014. Similarly, at Don Mario, we achieved a smooth transition to production from our Cerro Felix gold deposit. We have reviewed our production and cost guidance based on our first half results, and believe we will achieve guidance on both fronts."

Strategy and Outlook

The company continues to pursue its objectives of optimising production, lowering unitary cash costs, maximising fee cash flow, extending the life-of-mine of its operations and growing its operations to deliver shareholder value.

El Valle

At El Valle, the primary objective in fiscal 2018 continues to be replacing mined skarn tonnes with higher gold grade oxides in order to bring the proportion of oxide ore processed in the plant up to a target of 50%, thereby substantially increasing ore grades delivered to the mill and increasing gold ounce production. Through additional geological and geotechnical work, the company also expects to significantly increase the reliability of the mine plan by minimising the proportion of inferred material in its mine planning and taking additional measures to address grade variability. Infrastructure and fleet maintenance investments are expected to improve productivity, and efficiency will continue to be made through fiscal 2018 as planned.

Don Mario

At Don Mario, the company continues to produce consistent results from its re-commissioned CIL circuit, with a recovery rate averaging above 90% during the second quarter of fiscal 2018.

Operational Restructuring

Orvana also announced a restructuring of operations to optimise operational efficiency, improve performance and build shareholder value. In connection with the operational restructuring, the company has consolidated management into its operations in Spain by appointing Nuria Menendez as its new Chief Financial Officer. Menendez has been an employee of OroValle Minerals S.L. (OroValle), a wholly-owned subsidiary of the company, since September 2014. In September 2016, Menendez was appointed General Manager of OroValle. Menendez is to replace Jeffrey Hillis who is leaving the company to pursue other opportunities.

Prior to joining OroValle, Menendez was a manager at Deloitte Spain for over 12 years with both public and private company clients in various industries. She received her Bachelor of Business and Administration from the University of Oviedo in 2000. Menendez subsequently received her Master in Business Administration in Finance and certified CFO Programme designation.

Gordon Pridham, the Chairman of the Board of Directors, commented: "I would like to welcome Ms. Menendez to the executive management team of Orvana." "Already familiar with the company's operations during her tenure as OroValle's General Manager, Menendez also brings with her the professional experience necessary to manage the company's strategy of optimising operations at both of our mining operations. On behalf of the Board of Directors I would like to thank Mr. Hillis for his contributions over the last three years. The board and management team wish him well in his future endeavours."

Read the article online at: https://www.globalminingreview.com/finance-business/14052018/el-valle-achieves-highest-gold-quarterly-production-levels-since-2014/