GOLD AND PRECIOUS METALS — Don Mario drilling nears completion

Junior Orvana Minerals (ORV-T) has nearly completed a diamond drilling program at its Don Mario copper-gold property in eastern Bolivia.

Over 82% of the planned 6,100 metres has now been drilled, with the latest results coming from holes 127 through 136. Assays from a further 21 holes are expected shortly.

Gold values varied from 4.5 grams per tonne over 0.9 metre (11.6-12.5 metres) in hole 134 to 35 grams over 2 metres (105.7-107.7 metres) in hole 130.

Highlights include: hole 128, which intersected 19.8 metres (starting from surface) grading 32.7 grams gold, including 3 metres grading 110 grams gold; hole 127, which hit 11.7 metres (111.7-123.4 metres) grading 17.2 grams; hole 131, which returned 11 metres (188.8-199.8 metres) grading 25.8 grams; and hole 132, which hit 8.8 metres (15.6-24.4 metres) grading 5.1 grams and 4.7 metres (38.5-33.2 metres) grading 16.3 grams.

The ongoing program is part of a feasibility study on the Lower Mineralized zone, which Orvana hopes to mine by a combination of underground and open-pit methods. Minable reserves are pegged at 1.47 million tonnes grading 12.95 grams gold.

Previous studies by Billiton and Pincock Allen & Holt (supplemented by subsequent drilling and in-house evaluations) indicate that the project could support a 750-tonne-per-day milling operation capable of producing 100,000 oz. gold per year for five years at a cash cost of roughly US$105 per oz.

Don Mario also hosts the Upper Mineralized zone, which holds a resource of 5.5 million tonnes grading 1.5 grams gold.

Meanwhile, BHP Minerals, a unit of Australian-based Broken Hill Proprietary, has signed a letter-of-intent to earn majority interests in several gold properties in the Altiplano region which are jointly owned by Orvana and a private Bolivian company.

The major can earn a 60% interest in the advanced Pederson property and 70% interests in nine other properties covering a total of 33,000 sq. km. BHP must cover all exploration costs and make cash payments to Orvana until a production decision is reached, along with guaranteeing development financing should any of the properties be advanced to that stage.

BHP must spend at least US$800,000 on exploration in the first year of the deal and US$1.5 million in each subsequent year. It must also pay Orvana US$200,000 or purchase 1 million shares in the second and third years, and then make payments of US$200,000 per year thereafter.

The 47.4-sq.-km Pederson property contains a resource of 51.6 million tonnes grading 1.4 grams gold per tonne, of which more than half is classified as a measured resource. A further 25 million tonnes grading 1.37 grams gold is considered a potential resource.

The resources are based on 16,769 metres in 106 reverse-circulation holes and 1,753 metres in 10 diamond drill holes completed by Orvana. A cutoff grade of 0.5 gram gold was used for the calculation.

Mineralization at Pederson is associated with stratiform bodies in folded Paleozoic sedimentary rocks along the axis and flanks of a

north-south-oriented anticline. The anticline is disrupted by northeasterly trending thrust faults and crosscut by high-angle faults striking northwesterly and northeasterly.

Orvana believes the property has the potential to host additional deposits.