Value Microcaps Junior Miners

[dr_airtime]

ORV.TO - some notes on technical report

September 2014 and available on Orvana website. This is all for EVBC. Mine Plan starts in FY15 (October 1, 2014)

- P&P reserves are 2.1MT @ 4.3 g/t Au, .70% Cu and 13 g/t Ag for 302k Au-equivalent ounces. This is good for 5 year LOM for technical report purposes with production dropping off significant starting in FY18 (starts October 1, 2017) as only includes P&P reserves.

- M&I resources (of which P&P reserves are included within), only at Boinas (Carles closed) are 5MT @ basically identical grades to P&P reserves.

- Also an additional 5MT of inferred.

- This supports at least 6 years of Orvana operating at current FY15 rates as they drill and convert M&I into P&P. 3 years of P&P reserves is typical for underground. Note that I concluded this independently prior to my highlighted 6 year LOM note I pulled from technical report below in bold.

EVBC Mine description highlights from technical report

EL VALLE-BOINÁS - The gold mineralization system has a strike length of two kilometres and a width of at least 0.5 km. The intrusive is elongated trending N35°E with a length of 500 m, and an average thickness of 300 m. A copper-gold mesothermal skarn was developed mainly along the contact between the igneous rock and the carbonate unit.

The EVBC Operation consists of underground mines at Boinás and Carlés (El Valle open pit mining has been completed), producing a nominal 2,000 tonnes per day ore, of two material types – oxides and skarns. A gravity-flotation-leach processing plant, located at Boinás, produces doré bars and copper concentrate with gold and silver credits. Total production for fiscal year end 2013 (Orvana’s fiscal year runs from October to September) was 66,000
ounces of gold and 6.7 million pounds of copper.

Mineral Reserves total 2.2 Mt, at grades of 4.29 g/t Au, 0.67% Cu, and 13.4 g/t Ag. A Life of Mine Plan (LOMP) for EVBC forecasts three years of mining at similar production rates, followed by two years of reduced, oxide-only production.

Measured and Indicated Mineral Resources total 6.0 Mt, grading 4.41 g/t Au, 0.69% Cu and 13.98 g/t Ag, containing 850,900 oz Au, 41,500 t Cu and 2,700,500 oz Ag.

Inferred Mineral Resources total 6.0 Mt, grading 5.05 g/t Au, 0.45% Cu and 6.80 g/t Ag, containing 979,500 oz Au, 26,900 t Cu and 1,318,600 oz Ag.

There is significant potential to upgrade Inferred Resources to the Indicated category and for expansion of known zones along their peripheries.

The LOMP production schedule forecasts three years of mining at near-current
production rates, followed by two years of reduced, oxide-only production. Higher head grades provide gains on metal production relative to recent results (increasing to an average of 72,000 oz gold for the next three years).

The infrastructure at the Boinás Mine consists of a ramp access and a skip shaft. Ventilation raises move the air through the mine to the various work areas. Muck handling is carried out using both trucks and the shaft. There are issues skipping oxides in the shaft due to the sticky nature of the muck, so typically, the oxide muck is moved via trucks. The skarn material is generally hoisted via the shaft. Orvana is investigating blending as a means of more efficiently handling the oxide ore.

Page 128 - this is the backup for what Orvana communicates in Investor presentations (e.g. they said this in European Gold Forum webcast) "Based on the current Mineral Resources and cut-off grades, the LOMP could potentially beextended to six years, at full production rate."

Report - see page 131 for visual of underground mine

http://www.orvana.com/files/doc_news/2014/RPA-Kinbauri-Espana-El-Valle-Boinas-Carles-Mine-NI-43-101-Sept-26-2014_v001_t9o32i.pdf