ORVANA PROVIDES EXPLORATION UPDATE

EXHIBITING AT BOOTH #2243, PDAC 2024 CONVENTION IN TORONTO, MARCH 3-6

Announces Results of Annual General and Special Shareholders’ Meeting

TSX:ORV

TORONTO, Feb. 29, 2024 /PRNewswire/ – Orvana Minerals Corp. (TSX: ORV) (the “Company” or “Orvana”) is pleased to report exploration updates from Taguas, Argentina, and announces that it will be exhibiting at the 2024 Prospectors and Developers Association of Canada (PDAC) International Conference being held in Toronto at the Metro Toronto Convention Centre from March 3 to 6, 2024.

PDAC 2024

Orvana cordially invites shareholders, investors, brokers, analysts, and interested parties, to learn more about its operations and growth perspectives via brownfield and greenfield exploration programs, by visiting booth #2243 in the Investors Exchange area of PDAC.

The PDAC International Convention, Trade Show & Investors Exchange is the world’s leading convention for people, companies and organizations in, or connected with, mineral exploration. For more information about the conference, visit: http://pdac.ca/convention

TAGUAS PROJECT – EXPLORATION UPDATE

Project Background

Taguas Au-Ag project is located in the northern sector of the El Indio-Valle del Cura mineralized Belt (Argentina–Chile), Iglesia Department, San Juan Province, Argentina, 25km North of the Veladero mine and the Pascua-Lama project. It has been described as a high-sulfidation epithermal gold-silver system hosted in Miocene age volcaniclastic rocks (Kowalik and Simpson, 2021³). The Au-Ag mineralization occurs in breccias and silicified structures with a dominant NE-SO orientation. The supergene-oxidized gold-silver mineralization, that extends to approximately 200 m below surface, consists of subvertical, northeast striking high-grade mineralized structures surrounded by an envelope of disseminated mineralization. Below the oxidation depth, mineralization continues as gold-silver and hypogene sulfides (Kowalik and Simpson, 2021³).

The El Indio-Valle del Cura Belt has historically been explored for shallow epithermal Au-Ag mineralization, however it has been little exploration in the search for porphyry-type deposits that could be potentially associated with the epithermal systems.

In recent years, deep drilling in the northern sector of the belt (now denominated Link belt) permitted the discovery of the Valeriano mineralized Cu-Au-Mo porphyry (1,413.0 Mt @ 0.5% Cu, 0.2 g/t Au & 0.96 g/t Ag, Inferred, Nur, 2023) that occur below a high sulfidation epithermal lithocap with Au-Ag mineralization (32.1 Mt @ 0.54 g/t Au & 2.43 g/t Ag, Inferred, Nur, 2023⁴). This project, owned by Atex Resources, is located 10km North of Taguas project, within Chilean territory. Valeriano porphyry deposit at depth is represented by a granodiorite and associated porphyries, the development of a strong stockwork of quartz veinlets, potassic alteration and Cu sulfide mineralization (Burgoa et al., 2015¹).

Orvana is repositioning its strategy at Taguas. The Company had been focused on the oxides portion of the property, but it is reconsidering the strategy, now potentially including sulphides resources, plus deep copper-gold porphyry opportunities.  

Hypogene sulfides mineralization

Over 63,000 meters of drilling have been conducted across different targets on the property. At Cerros Taguas, both the supergene-oxidized gold-silver mineralization within the first 200 meters beneath the surface and the gold-silver and hypogene sulfides mineralization have been drilled.

Both the oxidized portion and the hypogene sulfide portion shows a predominant advanced argillic alteration. Next exploration steps will involve a spectral analysis campaign to refine alteration types definition, plus geo-metallurgical tests with oxide and sulfide ores. Once the combined oxides-sulfides opportunity is understood, the next steps for the project will be determined.

Potential copper-gold porphyry opportunities

High molybdenum values have been recorded in different sectors of the Taguas project (Figure 1). In shallow drilling intervals of Cerros Taguas, flaky molybdenite has been recognized associated with alunite-pyrite-enargite assemblages that fill fractures and conform the cement of hydrothermal breccias. In deeper intervals, molybdenite occurs in quartz+molybdenite veinlets with straight walls, which seem to be typical B veins of porphyry deposits (Gustafson and Hunt, 1975²).

Table 1. Molybdenum values from selected samples shown in figure 1.

Taguas exploration update was prepared under the supervision of Raul Alvarez (Orvana Director of Exploration & Technical Services), Registered EurGeol number 1,614, and a qualified person for the purposes of NI 43-101.

Quality Control

The reported drilling intercepts were carried out during the Goldfields JV campaign. Gold Fields sampled 5,630 drill core intervals from 17 drill holes during the 2011-2012 summer field season.

The core sampling was performed following a protocol designed for the project. Company personal were not allowed to carry any metallic rings when sampling the core. The sampling intervals did not cross defined lithological/alteration limits and the samples varied between 0.5 m to 2.0 m in length. The geologist performed detailed core logging, marked the sample intervals and the core sample cut lines. The cut line had to be perpendicular to lamination on the surface of the core. A sampling form was completed with the sample number and sample length intervals. Half core samples were identified with a unique sequential sample number taken from a sample tag book and tickets remaining in the book were completed with hole number depth from, depth to, sample length. The samples were placed in plastic bags with four identical tags stapled at the top of the bag and sealed. The same number was written on the side of the bag with a permanent marker. QA/QC samples were inserted and batches of 73 samples were prepared for shipment. The geologist  was  responsible  for  supervising  the  sample  loading  and  completed two  identical shipment forms. One form was given to the truck driver and the other form was approved by the chief of the project and stored in a safe area. Upon arrival at the laboratory, the one responsible for the sample reception signed the shipment form (in agreement) and it was sent back to the project.

The sampling carried out during the Goldfields JV campaign included rigorous QA/QC industry standard procedures, consisting of the insertion of certified reference materials, blanks and duplicates samples into the sample stream.

The geologist sent the sample numbers and length intervals to the database administrator who filled in the laboratory preparation and assay forms. The core samples were prepared in the ALS Chemex Laboratory in Mendoza, Argentina. Samples were crushed to 70% minus 2 mm, a 250 g sub sample was riffle-split and pulverized to 85% minus 75µm. Samples were assayed at ALS Chemex in La Serena, Chile, by fire assay on a 50 g aliquot with atomic absorption finish. Samples were also analyzed for 48 elements at ALS Chemex in Lima, Peru using ICP AES and ICP MS from a four-acid digestion.

Mr. Ron Simpson independently audited the sample database for location accuracy, down hole survey errors, interval errors and missing sample intervals. The QP also reviewed the sample QA/QC results.

References

ANNUAL GENERAL AND SPECIAL SHAREHOLDERS’ MEETING RESULTS

The Company also announces that, at its annual general and special shareholders’ meeting (the “Meeting”) held on February 29, 2024, the individuals noted below were elected as directors of the Company. The report on proxies provided by the Company’s transfer agent indicated the following:

Michael Davies received 75,124,923 votes (representing 99.82% of votes cast); Alfredo Garcia Gonzalez received 74,356,915 votes (representing 98.80% of votes cast); Robert Metcalfe received 74,110,183 votes (representing 98.47% of votes cast); and Michael Mutchler received 75,117,523 votes (representing 99.81% of votes cast).

Following the Meeting, Mr. Robert Metcalfe was re-appointed as chairman of the board of directors; Mr. Juan Gavidia was re-appointed Chief Executive Officer; Ms. Nuria Menendez was re-appointed Chief Financial Officer; and Mr. Binh Vu was re-appointed Corporate Secretary/VP Legal Affairs, for the ensuing year. 

The Company also received 79,120,533 votes (representing 99.32% of votes cast) to re-appoint PricewaterhouseCoopers LLP as the Company’s independent auditor for the ensuing year and to authorize the directors to fix the auditor’s remuneration; and 73,967,133 votes (representing 98.28% of votes cast) approving the 2018 stock option plan.

For full voting details please see Orvana’s voting results as filed on SEDAR at www.sedarplus.ca

ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana’s assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, currently in care and maintenance, and the Taguas property located in Argentina. Additional information is available at Orvana’s website (www.orvana.com).

The Corporate Presentation is available at: https://www.orvana.com/English/investors/presentations/default.aspx

Cautionary Statements – Forward-Looking Information

Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as “believes”, “expects”, “plans”, “estimates” or “intends” or stating that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “are projected to” or “confident of” be taken or achieved) are not statements of historical fact, but are forward-looking statements.

The forward-looking statements herein relate to, among other things, Orvana’s ability to achieve improvement in free cash flow; the ability to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited to, Orvana’s ability to optimize its assets to deliver shareholder value; estimates of future production (including without limitation, production guidance), operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; and future financial performance, including the ability to increase cash flow and profits; future financing requirements; Orvana’s ability to close additional financing as necessary; mine development plans; and the possibility of the conversion of inferred mineral resources to mineral reserves.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company’s most recently filed financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana’s most recently filed Management’s Discussion & Analysis and Annual Information Form in respect of the Company’s most recently completed fiscal year (the “Company Disclosures”) or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle, Don Mario and Taguas being consistent with the Company’s current expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company’s current mineral reserve and mineral resource estimates; labour and materials costs increasing on a basis consistent with Orvana’s current expectations; and the availability of necessary funds to execute the Company’s plan. Without limiting the generality of the foregoing, this news release also contains certain “forward-looking statements” within the meaning of applicable securities legislation, including, without limitation, references to the results of the Company’s exploration activities, including but not limited to, drilling results and analyses, mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities, taxes, net present value, potential recoveries, design parameters, operating costs, capital costs, production data and economic potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned exploration programs; and the Company’s general objectives and strategies.

A variety of inherent risks, uncertainties and factors, many of which are beyond the Company’s control, affect the operations, performance and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include: the potential impact of global health and global economic conditions on the Company’s business and operations, including: our ability to continue operations; and our ability to manage challenges presented by such conditions; the general economic, political and social impacts of  the continuing conflict between Russia and Ukraine, our ability to support the sustainability of our business including through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from the medical community, and engagement with local communities and authorities; fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; the availability of qualified personnel; the Company’s ability to obtain and maintain all necessary regulatory approvals and licenses; Orovalle’s ability to complete the permitting process of the El Valle Tailings Storage Facility increasing the storage capacity; Orovalle’s ability to complete the stabilization project of the legacy open pit wall; the Company’s ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company’s ability to continue to operate the El Valle and/or ability to resume long-term operations at the Carlés Mine; the Company’s ability to successfully implement a sulphidization circuit and ancillary facilities to process the current oxides stockpiles at Don Mario; the Company’s ability to successfully carry out development plans at Taguas; sufficient funding to carry out development plans at Taguas and to process the oxides stockpiles at Don Mario; EMIPA’s ability to complete the issuance of the Bonds Program at Bolivia and any additional required financing to commence the OSP; the Company’s ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company’s ability to execute on its strategy; the Company’s ability to obtain financing when required on terms that are acceptable to the Company; challenges to the Company’s interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions worldwide; the challenges presented by global health conditions; fluctuating operational costs such as, but not limited to, power supply costs; current and future environmental matters; and the risks identified in the Company’s disclosures. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements and reference should also be made to the Company’s Disclosures for a description of additional risk factors.

Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company’s mineral projects are intended to provide an overview of management’s expectations with respect to certain future activities of the Company and may not be appropriate for other purposes. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements made in this information are intended to provide an overview of management’s expectations with respect to certain future operating activities of the Company and may not be appropriate for other purposes.

SOURCE Orvana Minerals Corp.

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