Orvana Minerals Corp.

Orvana Minerals Corp.

October 19, 2007 08:30 ET

Orvana Reports Results of its Drilling Program at Las Tojas During the Fiscal Year Ended September 30, 2007

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2007) - Orvana Minerals Corp. (TSX:ORV) is pleased to report exploration drilling results from its Las Tojas property in eastern Bolivia during the fiscal year ended September 30, 2007 ("fiscal 2007").

The Las Tojas property is in one of eleven 100%-owned contiguous mineral concessions, including the Don Mario concession surrounding the Company's Don Mario Mine and mineral processing facility, and is located 12 kilometres to the north of the mine.


During fiscal 2007, Orvana completed 51 diamond drill holes on the Las Tojas property, 31 intersecting significant gold mineralization on two-thirds of the target area.

Next steps

The Company plans to mount a significant drilling program during fiscal 2008 on the remaining third of the Las Tojas project area, to fully define the extent of this mineralization, on other concessions contiguous with Las Tojas and at the existing Don Mario Mine Lower Mineralized Zone ("LMZ").

Orvana President and Chief Executive Officer, Carlos Mirabal, said: "We are very encouraged with the results of drilling thus far at Las Tojas. The Las Tojas mineralization has the same mineralogical characteristics as the LMZ ore and can be put through our existing gold processing facilities at Don Mario. While the grades are not as high as the LMZ which is being mined underground, the Las Tojas operation will likely be open pit.

Las Tojas has the potential of extending the current Don Mario gold mining operation (the LMZ and Las Tojas taken together) from about the end of 2009 to the end of 2010. This will defer mining the Upper Mineralized Zone ("UMZ") at Don Mario, which is a base metals project, and requires the installation of additional facilities to the plant for copper production.

The additional drilling will confirm what further ore can be put through the existing gold plant before committing to the installation of additional facilities for base metal production."

Detailed results

The Las Tojas property is in lower-Proterozoic age amphibolite-facies schists of the Bolivian Shield. The gold mineralization at Las Tojas is hosted by quartz-amphibole-garnet-magnetite-cordierite+/-biotite rock and accompanied by traces of chalcopyrite. The mineralized schists are enclosed by packages of quartz-muscovite schist and quartz-biotite-sillimanite rocks. The geological setting and alteration style is similar to that of the mineralization at the Don Mario Mine.

In the mid-1990s, a copper-gold stream sediment geochemical anomaly was identified on the property. Soil geochemistry, airborne magnetic, ground magnetic, radiometric and induced-polarization surveys were carried out and a 1.2 kilometre long chargeability anomaly and coincident gold-copper-zinc-lead soil geochemical anomaly were identified. The geochemical anomaly was first investigated by a previous owner with four reverse-circulation drill holes (440 metres) intersecting low-grade gold concentrations in soils, overburden and weathered bedrock near surface.

During fiscal 2007, Orvana completed 51 diamond drill holes on the Las Tojas property, 48 of which investigated the coincident chargeability and soil chemistry anomaly. 31 of the executed holes intersected gold mineralization with grades greater than 1 gram per tonne ("g/t") over widths of greater than 1 metre (Table 1). The mineralization has been intersected in a zone 750 metres long and up to 100 metres below surface (Figure 1). Drill intersections indicate that the mineralization occurs in one or more sub-vertical zones with horizontal widths of 1 to 11 metres averaging 3.5 metres. The grades of the mineralized drill intersections range from 1 g/t to 7 g/t averaging 3.40 g/t weighted by horizontal thickness.

Gold mineralization at Las Tojas has been broadly tested to a depth of 200 metres over approximately two-thirds of the target drilling area and remains open to the south over the remaining one-third of the target drilling area (Figure 1).

Based on the drilling completed on the target area of the Las Tojas property, It is estimated that Las Tojas may yield 500,000 to 800,000 tonnes containing 50,000 to 80,000 ounces of gold at a 1.0 g/t gold cut-off grade assuming a strike length of 750 to 1,200 metres, a down-dip depth of 75 metres, average horizontal width of 3.5 metres and average grade of 3.4 g/t.

Assay results are from samples prepared by ALS Chemex in Oruro, Bolivia and analyzed by fire assay from 50-gram aliquots by ALS Chemex in Lima, Peru. Assay results have been subject to a rigorous quality control and quality assurance program including the insertion of standard reference materials, coarse and fine blanks, duplicates, 500-gram screen assays and independently collected and analyzed confirmatory samples. The sampling program has been overseen by AMEC (Per·) S.A. Senior Geologist and independent qualified person Christopher Wright, P.Geo. (APGO, 901), who has verified the data disclosed in this press release during a site visit, review of core, assay results and quality control data.

The mineralization described in this news release is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in delineation of a mineral resource. The basis on which the potential quantity and grade has been determined is described above.

Long Section Drill From To Length Horizontal Au
Point Hole (m) (m) (m) Width (m) (g/t)
1 LT-05 38.9 42.0 3.1 2.05 1.04
2 LT-06 120.6 134.6 14.0 9.37 5.90
3 LT-07 NSR
4 LT-08 NSR
5 LT-09 58.0 62.0 4.0 2.55 1.94
6 LT-10 NSR
7 LT-11 NSR
8 LT-12 NSR
9 LT-13 232.0 234.0 2.0 1.09 1.14
10 LT-14 55.0 69.5 14.5 8.11 4.71
11 LT-15A NSR
12 LT-16 20.0 24.0 4.0 2.54 3.10
13 LT-17 NSR
14 LT-18 80.0 87.9 7.8 4.96 5.55
15 LT-18 92.0 95.0 3.0 1.92 1.40
16 LT-19 NSR
17 LT-20 48.0 52.7 4.7 2.24 2.81
18 LT-21 NSR
19 LT-22 NSR
20 LT-23 NSR
21 LT-24 47.9 56.0 8.2 4.14 2.03
22 LT-25 102.0 108.0 6.0 3.02 4.93
23 LT-26 NSR
24 LT-27 55.7 66.0 10.3 5.66 4.63
25 LT-27 71.0 76.0 5.0 2.77 2.51
26 LT-28 14.0 17.0 3.0 1.76 1.55
27 LT-29 67.0 76.0 9.0 4.30 4.86
28 LT-30 36.0 42.0 6.0 3.36 3.31
29 LT-30 50.0 52.0 2.0 1.12 1.37
30 LT-31 22.0 28.0 6.0 3.09 2.50
31 LT-32 NSR
32 LT-33 82.0 85.0 3.0 1.59 2.53
33 LT-34 92.0 94.0 2.0 1.09 1.73
34 LT-35 38.0 45.5 7.5 3.86 1.38
35 LT-36 17.5 25.0 7.5 4.51 3.31
36 LT-36 68.2 73.0 4.8 3.02 2.50
37 LT-37 35.7 42.1 6.5 2.79 6.65
38 LT-37 95.0 106.0 11.0 5.05 1.85
39 LT-38 101.0 103.2 2.2 1.24 1.55
40 LT-39 13.0 17.0 4.0 2.29 2.80
41 LT-40 64.4 66.8 2.4 1.31 2.10
42 LT-41 93.0 96.3 3.3 2.90 2.46
43 LT-42 76.3 84.0 7.7 3.70 1.79
44 LT-43 49.8 58.0 8.2 4.22 3.73
45 LT-44 30.0 32.0 2.0 1.21 1.25
LT-45 hole abandoned before intersecting mineralized zone
46 LT-46 79.5 83.9 4.4 2.87 1.96
47 LT-50 76.0 81.7 5.7 3.02 2.27
48 LT-51 NSR
49 LT-52 72.3 89.5 17.2 11.40 3.99
50 LT-53 NSR
51 LT-54 NSR
52 LT-55 NSR

Table 1: Diamond drill hole intersections from the Las Tojas property in eastern Bolivia. Holes are listed with a point number corresponding to the location of the intersection on the long section in Figure 1. Drill holes not intersecting significant mineralization are listed as not having significant results (NSR).

Please Note: To view the a map of the drill locations, please visit the following link: http://www.ccnmatthews.com/docs/orvanamap.jpg

About Orvana

Orvana Minerals is a Canadian gold mining and exploration company based in Toronto, Canada, involved in the evaluation, development and mining of precious and base metal deposits in the Americas. The Company's primary operation is the Don Mario Mine in eastern Bolivia. Orvana's long-term goal is to become a low cost, long-life, multi-mine gold producer in the Americas. Orvana's shares have been listed on the Toronto Stock Exchange since 1992 under the trading symbol ORV.

Forward-Looking Statements

Certain statements in this press release 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" or "does not expect", "is expected", "anticipates" or "does not anticipate", or "intends" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken or achieved) are not statements of historical fact, but are "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Orvana, or developments in Orvana's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include disclosure regarding possible events, conditions or results of operations that are based on assumptions about future conditions, courses of action and consequences. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Orvana cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, all aspects of the possible development of the Upper Mineralized Zone ("UMZ") deposit at Don Mario and of its potential operation and production, mineral resource and mineral reserve estimates, the realization of mineral reserve estimates, estimates of future capital expenditures and timing of development and production and estimates of the outcome and timing of decisions with respect to whether and how to proceed with such development and production, permitting time lines, statements and information regarding future feasibility studies and their results, production forecasts, future transactions, the successful completion of reclamation projects, future gold prices, the ability to achieve additional growth and geographic diversification, future production costs, accounting estimates and assumptions, future tax benefits, the renewal or renegotiation of agreements, future financial performance, including the ability to increase cash flow and profits, future financing requirements, mine development plans, and possible changes in the regulatory, political, social and economic environment in Bolivia.

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 results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks, uncertainties and factors include fluctuations in the price of gold; the impact or unanticipated impact of: the need to recalculate estimates of reserves and 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; risks generally associated with mineral exploration and development, including the Company's ability to develop the UMZ deposit if it determines to do so and to acquire and develop mineral properties; the Company's ability to obtain additional 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 Bolivia; general economic conditions worldwide and the risks identified in Orvana's Management's Discussion and Analysis for the third quarter fiscal 2007 under the heading "Risks and Uncertainties". 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 Annual Information Form for a description of additional risk factors. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and 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.

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