Don Mario Reserves/Resources

(see Orvana’s Annual Information Form dated December 27, 2019 for the fiscal year-ended September 31, 2019, pages 24-27)

Cautionary Notes to Investors - Mineral Reserves and Resources Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2018 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.

In fiscal 2016, the Company engaged an independent engineering firm, DCGS Exploration and Mining Consulting (“DCGS”), to update the mineral resource and reserve estimates for Don Mario as at September 30, 2016, which was published in the “Technical Report on Done Mario Mine Operation” dated September 30, 2016 by Mr. Gino Zandonai, M.Sc. Mining, CP, Mining Engineer, who is a qualified person independent of the Company for the purposes of NI 43-101, and filed on January 27, 2017 (“Don Mario Mine 43-101 Report”).

In fiscal year 2019, the Company engaged Mr. Zandonai, DCGS, an independent mining consulting company, to update mineral reserves and resource estimates for Las Tojas mine, and the stockpile of oxides ores. Updated estimates of mineral resources and reserves for Don Mario mine as of September 30, 2019 were prepared by Mr. Zandonai, an independent Qualified Person under NI 43-101. With respect to the stockpile of oxides, the tonnage reported as a measured resource as of September 30, 2018 was updated to proven reserves as of September 30, 2019 and the total depletion of the Cerro Félix reserve was recorded during fiscal year 2019.

The following tables summarize the estimates of mineral resources in situ for Las Tojas mine, and estimates of mineral reserves for the stockpile of oxides ores:

In-situ Mineral Resources Inclusive of Mineral Reserves
September 30, 2019
Las Tojas Deposit

Measured

Zone

Tonnage

Grade

Grade

Grade

Contained Metal

Contained Metal

Contained Metal

(000 t)

(g/t Au)

(% Cu)

(g/t Ag)

(000 oz Au)

(t Cu)

(000 oz Ag)

Las Tojas

661

1.55

0.11

2.05

33

705

44

Total

61

1.55

0.11

2.05

33

705

44

 

 

 

 

 

 

 

 

Indicated

Zone

Tonnage

Grade

Grade

Grade

Contained Metal

Contained Metal

Contained Metal

(000 t)

(g/t Au)

(% Cu)

(g/t Ag)

(000 oz Au)

(t Cu)

(000 oz Ag)

Las Tojas

725

1.50

0.11

2.00

35

876

47

Total

725

1.50

0.11

2.00

35

876

47

 

 

 

 

 

 

 

 

Measured + Indicated

Zone

Tonnage

Grade

Grade

Grade

Contained Metal

Contained Metal

Contained Metal

(000 t)

(g/t Au)

(% Cu)

(g/t Ag)

(000 oz Au)

(t Cu)

(000 oz Ag)

Las Tojas

1,386

1.52

0.11

2.02

68

1,581

90

Total

1,386

1.52

0.11

2.02

68

1,581

90

 

 

 

 

 

 

 

 

Inferred

Zone

Tonnage

Grade

Grade

Grade

Contained Metal

Contained Metal

Contained Metal

(000 t)

(g/t Au)

(% Cu)

(g/t Ag)

(000 oz Au)

(t Cu)

(000 oz Ag)

Las Tojas

241

1.27

0.14

1.79

10

337

14

Total

241

1.27

0.14

1.79

10

337

14

Notes:

1. CIM definitions were followed for Mineral Resources and were prepared by G. Zandonai, a qualified person for the purposes of NI43-101, who is an employee of DGCS SA and is independent of the Company.
2. Mineral Resources are estimated using Gold cut-off grade of 1.0 Au g/t were calculated using operating results for recoveries, and on-site operating costs.
3. Mineral Reserves are estimated using average long-term prices of US$1,500 per ounce gold, US$2.50 per lb copper, and US$17.0 per ounce silver.
4. Numbers may not add due to rounding.
5. All mineral resources have been based on processing by the CIL only.

From the mine, waste material is sent to the waste dump. The inventory of the mineral resources and reserves stockpile estimates of the Company is provided in the tables below.

Stockpile Mineral Resource (exclusive of in situ)
September 30, 2019
Don Mario

Measured

Location/Zone

 

Tonnage
(000 t)

Grade
(g/t Au)

Grade
(% Cu)

Grade
(g/t Ag)

Contained Metal
(000 oz Au)

Contained Metal
(t Cu)

Contained Metal
(000 oz Ag)

DM1 (Oxide)

 

492

2.24

1.74

54.44

35.4

8,560

861.0

DM2 (Oxide Pre-strip)

 

278

1.90

1.98

17.94

17.0

5,509

160.5

DM3 (Dolomite Oxide)

 

190

1.89

1.96

21.62

11.5

3,724

132.1

Plant Stockpile (oxide) **

515

1.61

1.57

57.82

26.7

8,108

958.3

DM4 Stock Talco*

 

461

1.65

2.44

64.99

24.5

11,245

962.8

DM5 (dolomite Oxide)

 

202

1.86

1.64

48.66

12.1

3,314

316.2

 

 

2,139

1.85

1.89

49.32

127.3

40,461

3,390.8

 

 

 

 

 

 

 

 

 

Stockpile Mineral Reserve (exclusive of in situ)
September 30, 2019
Don Mario

Proven

Location/Zone

 

Tonnage
(000 t)

Grade
(g/t Au)

Grade
(% Cu)

Grade
(g/t Ag)

Contained Metal
(000 oz Au)

Contained Metal
(t Cu)

Contained Metal
(000 oz Ag)

DM1 (Oxide)

 

467

2.24

1.74

54.44

33.7

8,132

818.0

DM2 (Oxide Pre-strip)

 

264

1.90

1.98

17.94

16.1

5,233

152.4

DM3 (Dolomite Oxide)

 

181

1.89

1.96

21.62

11.0

3,538

125.5

Plant Stockpile (oxide) **

490

1.61

1.57

57.82

25.4

7,703

910.3

DM4 Stock Talco*

 

438

1.65

2.44

64.99

23.2

10,683

914.7

DM5 (dolomite Oxide)

 

192

1.86

1.64

48.66

11.5

3,149

300.4

 

 

2,032

1.85

1.89

49.32

120.9

38,438

3,221.3


Notes:

1. CIM definitions were followed for Mineral Reserves and were prepared by G. Zandonai, a qualified person for the purposes of NI43-101, who is an employee of DGCS SA and is independent of the Company..
2. Mineral Reserves contained in stockpiles are estimated at a Cu equivalent cut-off grade of 0.85% CuEq.
3. Mineral resources are estimated using a long-term gold price of US$1,500 per ounce, copper price of US$2.5 per pound and a silver price of US$17 per ounce
4. Mineral reserves contained in stockpiles are exclusive of In-situ Mineral Reserves. The UMZ Oxide Stockpile reserves are currently economically viable to process using Acid Leach/Cyanidation Process.
5. Numbers may not add due to rounding
6. All UMZ stockpile were calculated using 95% due to Haulage factor