Orvana Minerals (ORV-T) has poured the first dor bar at its Don Mario gold mine in southeast Bolivia.
The bar, containing 415 oz. of gold, was squeezed from stockpiled low-grade ore while tweaking the operation’s 600-tonne-per-day mill. Work continues on improving mill recoveries and metallurgical balances.
The company has begun blending in higher-grade ore from the Lower Mineralized zone (LMZ), and plans similar weekly pours.
“Orvana will be reporting gold sales in this quarter,” says Orvana President Jaime Urjel.
In late May, the company reported the completion of 110 metres of the 225-metre vertical shaft at Don Mario. Additionally, the company said 760 metres worth of drifts and crosscuts, and 340 metres of open cut and ventilation raises had been cut. The shaft pulley towers were also completed and work on the main hoist had begun.
At full steam, the mine is expected to run through 200,000 tonnes of ore per year to produce 60,000 oz. of gold. Cash costs are estimated at US$25-$30 per tonne of ore.
Gold mineralization at Don Mario is found in two ore structures — the Lower Mineralized zone (LMZ) and Upper Mineralized zone (UMZ).
Proven and probable reserves in the LMZ are pegged at 1.2 million tonnes running 10 grams gold per tonne. An updated estimate by AMEC is expected this month.
An in-house estimate of the metallurgically complex, near-surface UMZ sits at 2.4 million tonnes grading 1.66 grams gold, 51.9 grams silver, and 1.9% copper. A transition sulphide resource contains 1.9 million tonnes averaging 2.3 grams gold and 48.9 grams silver, and 1.4% copper.
The project is subject to a 3% net smelter return royalty payable to Repadre Capital, which recently merged with Iamgold (IMG-T).
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