(See Orvana’s Annual Information Form dated December 29, 2021 for the fiscal year-ended September 31, 2021, pages 20-23)
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 have been prepared as at September 30, 2021 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 2020, Orovalle engaged an independent engineering firm, Roscoe Postle Associates Inc. (“RPA”), to complete mineral reserves and resources estimates and a life-of-mine-plan update, which were published in the “Technical Report on Orovalle Operation, Asturias, Spain” dated November 30, 2020 (the “Orovalle NI 43-101 Report”) by: (i) Rick C. Taylor, P.Eng., of RPA, in respect of the estimated mineral reserves and the life of mine plan, and (ii) John Makin, P.Geo., of RPA, in respect of the estimated mineral resources. Each of Messrs. Taylor and Makin is a Qualified Person within the meaning of NI 43-101.
Since the Orovalle NI 43-101 Report, the Company has updated the mineral reserves and resources. The updated mineral resource estimates for El Valle as at September 30, 2021 were prepared by Orovalle under the supervision of Ms. Guadalupe Collar, European geologist and the Chief of Geology of Orovalle, based on updating resource block models incorporating drilling results from July 1, 2020 to June 30, 2021 and accounting for production depletion up to September, 2021. Mineral resource estimates are summarized in the following tables:
Summary
of Mineral Resources inclusive of Mineral Reserves September 30, 2021 -
Orovalle Operation
|
Measured Mineral Resources |
Zone |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (%Cu) |
Contained Metal (000 oz Au) |
Contained Metal (000 oz Ag) |
Contained Metal (000 Lb Cu) |
|
BOINÁS OXIDES |
1,690 |
4.02 |
10.90 |
0.44 |
218 |
592 |
16,440 |
|
BOINÁS SKARN |
2,704 |
2.55 |
16.28 |
0.71 |
221 |
1,416 |
42,308 |
|
CARLES |
374 |
3.23 |
7.21 |
0.43 |
39 |
87 |
3,502 |
|
TOTAL |
4,767 |
3.12 |
13.66 |
0.59 |
478 |
2,094 |
62,249 |
|
|
|
|
|
|
|
|
|
|
|
Indicated Mineral Resources |
Zone |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (%Cu) |
Contained Metal (000 oz Au) |
Contained Metal (000 oz Ag) |
Contained Metal (000 Lb Cu) |
|
BOINÁS OXIDES |
3,553 |
4.63 |
5.24 |
0.32 |
529 |
599 |
25,167 |
|
BOINÁS SKARN |
674 |
2.70 |
16.68 |
0.66 |
61 |
361 |
9,841 |
|
CARLES
|
1,346 |
3.21 |
7.37 |
0.35 |
139 |
319 |
10,329 |
|
TOTAL |
5,572 |
4.05 |
7.14 |
0.37 |
728 |
16.6 |
45,337 |
|
|
|
|
|
|
|
|
|
|
|
Measured
+ Indicated Mineral Resources |
Zone |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (%Cu) |
Contained Metal (000 oz Au) |
Contained Metal (000 oz Ag) |
Contained Metal (000 Lb Cu) |
|
BOINÁS OXIDES |
5,242 |
4.43 |
7.06 |
0.36 |
747 |
1,190 |
41,606 |
|
BOINÁS SKARN |
3,378 |
2.58 |
16.36 |
0.70 |
280 |
1,777 |
52,149 |
|
CARLES
|
1,719 |
3.22 |
7.33 |
0.37 |
178 |
405 |
13,831 |
|
TOTAL |
10,340 |
3.62 |
10.15 |
0.47 |
1,205 |
3,373 |
107,586 |
|
|
|
|
|
|
|
|
|
|
|
Inferred Mineral Resources |
Zone |
Tonnage (000 t) |
Grade (g/t Au) |
Grade (g/t Ag) |
Grade (%Cu) |
Contained Metal (000 oz Au) |
Contained Metal (000 oz Ag) |
Contained Metal (000 Lb Cu) |
|
BOINÁS OXIDES |
1,752 |
4.44 |
5.95 |
0.31 |
250 |
335 |
11,863 |
|
BOINÁS SKARN |
572 |
2.56 |
11.67 |
0.44 |
50 |
232 |
5,564 |
|
CARLES
|
1,167 |
3.25 |
5.07 |
0.31 |
122 |
190 |
8,031 |
|
La Brueva
|
193 |
3.87 |
15.25 |
0.09 |
24 |
94 |
382 |
|
TOTAL |
3,684 |
3.74 |
0.46 |
5.67 |
446 |
852 |
25,838 |
|
|
|
|
|
|
|
|
|
|
|
Summary
of Mineral Reserves SEPTEMBER 30, 2021 - Orovalle Minerals S.L. – Orovalle Operation |
Proven
and Probable |
Category |
Tonnage
(000 t) |
Grade
(g/t Au) |
Grade
(g/t Ag) |
Grade
(% Cu) |
Contained
Metal
(000 oz Au) |
Contained
Metal
(000 oz Ag) |
Contained
Metal
(000 Lb Cu) |
Proven |
1,327 |
2.71 |
9.02 |
.043 |
116 |
385 |
12,574 |
Probable |
1,997 |
3.25 |
4.20 |
0.28 |
209 |
270 |
12,324 |
Proven
and Probable |
3,324 |
3.04 |
6.13 |
0.34 |
324 |
655 |
24,898 |
|
|
|
|
|
|
|
|
Proven |
Category |
Tonnage
(000 t) |
Grade
(g/t Au) |
Grade
(g/t Ag) |
Grade
(% Cu) |
Contained
Metal
(000 oz Au) |
Contained
Metal
(000 oz Ag) |
Contained
Metal
(000 Lb Cu) |
Boinas Skarns |
516 |
1.91 |
11.89 |
0.57 |
34 |
214 |
7,041 |
Boinas Oxides |
736 |
3.32 |
6.91 |
0.32 |
79 |
164 |
5.237 |
Carlés
|
30 |
2.84 |
7.21 |
0.44 |
3 |
7 |
296 |
TOTAL |
1,327 |
2.71 |
9.02 |
0.43 |
88 |
385 |
12,574 |
|
|
|
|
|
|
|
|
Probable |
Category |
Tonnage
(000 t) |
Grade
(g/t Au) |
Grade
(g/t Ag) |
Grade
(% Cu) |
Contained
Metal
(000 oz Au) |
Contained
Metal
(000 oz Ag) |
Contained
Metal
(000 Lb Cu) |
Boinas Skarns |
276 |
1.91 |
11.06 |
0.46 |
17 |
98 |
2,771 |
Boinas Oxides |
1,522 |
3.58 |
3.02 |
0.26 |
175 |
148 |
8,822 |
Carlés
|
200 |
2.55 |
3.80 |
0.17 |
16 |
24 |
731 |
TOTAL |
1,997 |
3.25 |
4.20 | 0.28 |
209 |
270 |
12,324 |