LATIN AMERICA — Orvana busy at Don Mario

Concurrent with a feasibility study for an underground gold mine, Orvana Minerals (ORV-T) is carrying out a prefeasibility study for an open-pit, gold-copper-silver mine at the Don Mario project in eastern Bolivia.

The Vancouver-based company recently completed a 51-hole, infill drilling program on the Lower Mineralized zone (LMZ) at Don Mario, which hosts an undiluted resource of 1.5 million tonnes grading 13.3 grams gold per tonne. The underground development of this zone will be supplemented with a small, open pit developed on the near-surface portion of the Lower Mineralized zone.

Meanwhile, work is continuing on a scoping study of the Upper Mineralized zone, a mixed oxide and sulphide gold-copper-silver deposit. Metallurgical work is under way and a resource estimate is expected shortly.

Metallurgical testwork on the LMZ indicates that conventional processing methods with crushing, grinding and gravity treatment followed by a cyanide circuit will result in gold recovery of more than 90%.

A division of Redpath has been awarded a contract for about 500 metres of decline and drift development to provide access to the LMZ zone, the objective being to confirm continuity, as well as rock and mineralization characteristics. Golder Associates has the contract for geotechnical evaluation. The firm is completing a detailed design of the tailings impoundment and has also selected sites for the plant and water storage pond.

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