Orvana boosts profits at Don Mario (February 21, 2005)

Vancouver — In the first quarter of fiscal 2005, Orvana Minerals (ORV-T) earned US$1.9 million 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$115 per oz., compared with US$134 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 of 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, they improved to 8.8 grams gold per tonne.

Don Mario is a combined open-pit/underground operation. Of the 59,384 tonnes treated in the latest quarter, 41,330 tonnes grading 8.5 grams gold per tonne came 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 zone so that exploratory drilling from underground locations can begin this year.