VANCOUVER (miningweekly.com) – Gold and copper miner Orvana Minerals has issued its new production guidance for 2018, aiming 25% higher than that of the current year.
The TSX-listed miner, which owns mines in Spain and Bolivia, advised on Wednesday that fiscal 2018 gold output is estimated between 110 000 oz and 120 000 oz, at cash operating costs (COC) of $950/oz to $1 050 and forecast all-in sustaining costs (AISC) ranging between $1 150 and 1 250/oz – 10% lower than that of 2017.
"We are pleased to issue increased production guidance with reduced COC and AISC for fiscal 2018. In keeping with our core strategy and clear commitment to increase production and lower unit costs, our operations have delivered substantially improved results in fiscal 2017 and we expect this positive trend to continue in fiscal 2018,” stated chairperson and CEO Jim Gilbert.
The company also significantly lowered its forecast for copper output in 2018 to a range of 6.1-million to 6.8-million pounds, from between 13-million and 14-million this year.
Gilbert advised that the company had successfully ramped up development and plant throughput rates at El Valle, in Northern Spain, where the critical objective is to achieve significant grade enhancements by mining a higher proportion of higher gold grade oxide zones. This is expected to result in higher gold output, at a slightly lower throughput rate.
At Don Mario, in Bolivia, production will transition to the Cerro Felix deposit in the third quarter, which is the first phase of the expected three-year mine life extension programme, Gilbert advised.
The company is on track to meet full-year guidance of 85 000 oz to 95 000 oz of gold, 13-million to 14-million pounds of copper and 300 000 oz to 350 000 oz of silver.
The company's TSX-listed stock rose as much as 12% on Wednesday to C$0.28 a share.