Orvana Minerals Corp. · TSX:ORV
Orvana Minerals — Investor Presentation (March 2004)
23 slides from Orvana Minerals's investor presentation, March 2004
Slide 1: March 2004
March 2004
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain Certain statements statements in in this this presentation presentation may may constitute constitute “forward-looking” “forward-looking” statements statements whichwhich involve involve known known and and unknown unknown risks, risks, uncertainties uncertainties
Slide 3: Recent Accomplishments
RECENT ACCOMPLISHMENTS Don Mario completed in 17 months for US$19 MM Commercial production and first gold sales July 2003 AMEC Technical Report issued August 2003 Mill throughput increased from 600 to 700 TPD
Slide 4: Operating Highlights
OPERATING HIGHLIGHTS Nine months of continuous production Produced 3,985 ounces in February Mine/mill direct cash cost of US$24 per treated tonne Q1’ 04 profitable Cash flow servicing debt Funding available for exploration programs
Slide 5: Mining Operations
MINING OPERATIONS Underground mining limited to one underground level since June 2003 Mine development focused on adding new production faces Will continue to extract ore from mini pit Mini pit grade improving with depth
Slide 6: Mill Feed
MILL FEED Feb. 2004 Oct. to Jan. 2003 Tonnes Grade Tonnes Grade Treated g/t Treated g/t Underground mine 7,513 6.60 41,402 6.79 Mini pit 11,557 7.87 38,751 4.56 Total 19,070 7.37 80,153 5.71
Slide 7: Mine Plan
MINE PLAN From level 264 upwards cut and fill mining method to be continued From level 264 downwards sublevel stoping is being introduced
Slide 8: Mine Plan
¢ MINE PLAN VENTILATION RABE e CUTS FILL ORE PASS VENTILATION RABE LEVEL PING \ one ORVANA MINE R
Slide 9: LMZ Development Work
LMZ DEVELOPMENT WORK 173 metres of vertical shaft construction completed - will finish in September 2004 1,229 metres of drifts/crosscuts 696 metres in open cut and ventilation raises In January/February 380 additional metres of new ramp development Access to lower levels under development The ramp
Slide 10: Mill Operations
MILL OPERATIONS Achieving 89-90% recoveries Increased mill throughput to 700 TPD Milling capacity 1200 TPD with moderate CAPEX
Slide 11: Production Costs
PRODUCTION COSTS First quarter 2004: 8,802 ounces produced Costs Cost/ounce Direct mining cost of production $1,339,724 $152.20 Third-party smelting, refining and transportation costs 18,243 2.07 Cash operating costs $1,357,967 $154.27 Royalties and production taxes 215,282 24.46 Total cash costs $1
Slide 12: Don Mario Mine
DON MARIO MINE Sag Sag Mill Mill Mine Mine Shaft Shaft Tower Tower Long Long Hole Hole Drilling Drilling Machine Machine Mine Mine Shaft Shaft Hoist Hoist
Slide 13: Don Mario Reserves
DON MARIO RESERVES Reserve estimates as at June 30, 2003 LMZ reserves (AMEC Report July, 25 2003) 1,473,000 tonnes grading 8.74 g/t Estimated 414,000 ounces of gold contained UMZ reserves At 1g/+ cut-off approximately 3 million tonnes measured and inferred containing gold, silver and copper
Slide 14: Don Mario Deposit
DON MARIO DEPOSIT “The shoot extends from surface for approximately 700 metres down plunge, ranges from 100 metres to 150 metres in the down dip dimension, and averages approximately 6m thick.” * ** Source: Source: AMEC AMEC Technical Technical Report Report dated dated July July 25, 25, 2003 2003 U
Slide 15: LMZ - Mineral Resources Estimate
LMZ - MINERAL RESOURCES ESTIMATE As at June 30, 2003 Au Au Cutoff Cutoff Measured Measured Indicated Indicated Measured Measured ++ Indicated Indicated Inferred Inferred Grade Grade (g/t) (g/t) Ktonnes Ktonnes Au Au (g/t) (g/t) Ktonnes Ktonnes Au Au (g/t) (g/t) Ktonnes Ktonnes Au Au (g/t) (g/t) Kton
Slide 16: LMZ - Mineral Resources Estimate
LMZ - MINERAL RESOURCES ESTIMATE As at June 30, 2003 Tonnes Au (g/t) Open Pit Proven 32,000 4.27 Probable 286,000 6.05 Subtotal 318,000 5.87 Underground Proven 73,000 9.58 Probable 1,082,000 9.52 Subtotal 1,155,000 9.52 Total Mine Proven 105,000 7.97 Probable 1,368,000 8.79 Total 1,473,000 8.74
Slide 17: UMZ Resources
UMZ RESOURCES Total Soluble Cutoff Resources Tonnes Au (g/t) Ag (g/t) Cu (%) Cu (%) 22 g/t g/t Measured Measured ++ Indicated Indicated 898,045 3.58 48.69 1.91 0.56 22 g/t g/t Inferred Inferred 317,660 4.28 57.99 1.76 0.46 11 g/t g/t Measured Measured ++ Indicated Indicated 2,130,424 2.34 46.00 1.73
Slide 18: Exploration: Don Mario
EXPLORATION: DON MARIO The Don Mario property consists of LAS TOJAS OSCAR eight contiguous DON MARIO mineral concessions MINE DON MARIO covering SENA QUINA approximately MóNICA 53,900 hectares LA TERCERA LA AVENTURA Surface drilling on ALVARO LAS TOJAS to begin this year 0 5 12.5 KMS
Slide 19: Exploration: Don Mario
EXPLORATION: DON MARIO The Cristal Schist belt is approximately DON DON MARIO MARIO DEPOSIT DEPOSIT 25km in length MAFIC MAFIC ROCKS ROCKS CHAQUIPOC CHAQUIPOC COMPLEX COMPLEX CRISTAL CRISTAL SEQUENCE SEQUENCE SENORITAS SENORITAS GRANITE GRANITE PATUJU PATUJU DOMAIN DOMAIN
Slide 20: Other Prospects
OTHER PROSPECTS Don Mario Mine UMZ Company considering a feasibility study Pedersen Management / Directors are examining a number of options
Slide 21: Plans for 2004
PLANS FOR 2004 Continue LMZ development Improve head grades Complete vertical shaft and explore LMZ Las Tojas concession exploration UMZ feasibility Assessing other properties in South America
Slide 22: Summary
SUMMARY Low-cost producer Unhedged gold sales Potential to expand reserves and production Focused on becoming a profitable, multi-mine producer in South America
Slide 23: March 2004
March 2004