Orvana boosts output

Gold production is improving at Orvana Minerals‘s (ORV-T) Don Mario mine while exploration and development advances on the surrounding Don Mario property, 380 km east of Santa Cruz de la Sierra in eastern Bolivia.

Production increased to 5,105 oz. gold in May, up from 4,318 oz. in April, owing to an improved head grade averaging 8.74 grams gold per tonne. The mill treated 20,404 tonnes of ore in May: 11,241 tonnes from underground and 8,146 tonnes from a mini-pit.

Don Mario entered commercial production in July 2003. The mill processes 700 tonnes per day. By the end of 2003, a vertical shaft had been sunk 173.3 metres, and 1,196 metres of drifts and crosscuts had been developed; as well, 625 metres of open-cut and ventilation raises had been completed.

At June 30, 2003, Don Mario contained an estimated proven open-pit reserve of 32,000 tonnes grading 4.27 grams gold per tonne and a probable open-pit reserve of 286,000 tonnes grading 6.05 grams gold. The estimate contained an additional proven underground reserve of 73,000 tonnes grading 9.58 grams gold per tonne, with a probable underground reserve of 1.08 million tonnes grading 9.52 grams.

Infill drilling is about to take place on the upper mineralized zone, to advance prefeasibility work.

The 539-sq.-km property is covered by eight contiguous mineral concessions in the San Juan Canton of the province of Chiquitos. San Juan, the town nearest the mine, is 76 km away.

A series of northwest-trending schists intercalated with orthogneiss underlies the property and is intruded locally by granite. Gold mineralizaton is associated with shearing.

Orvana has to pay a 3% net smelter return royalty to a subsidiary of Iamgold (IMG-T).

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