Orvana boosts profits at Don Mario (February 14, 2005)

Vancouver — Orvana Minerals (ORV-T) reported net income of US$1.9 million in the first quarter of fiscal 2005 from its Don Mario gold mine in eastern Bolivia, well above the US$220,730 generated in the comparable period a year earlier.

The company sold 14,360 oz. gold and generated revenue of US$6.2 million in the quarter ended Dec. 31, almost double the gold production and more than double the revenue reported a year earlier. Cash costs were US$114.88 per oz., compared with US$133.59 per oz. in the last three months of 2003.

The company notes that operations in December and into January of this year were affected by some of the heaviest rainfall recorded in the past decade. The weather created difficult operating conditions and affected the availability of mining equipment and access into some ore zones. These factors reduced grades for a period, but as operations returned to normal, grades improved to 8.8 grams gold per tonne.

Don Mario is a combined open-pit, underground operation. Of the total 59,384 tonnes treated in the latest quarter, 41,330 tonnes grading 8.5 grams come from underground sources, while 18,056 tonnes grading 7.7 grams came from the mini-pit. The company plans to extend the ramp beyond the bottom on the main ore zone so that exploratory drilling from underground locations can begin this year.