Orvana Minerals (ORV.TO) has announced they remain on target to produce 75,000 ounces of gold this year from the El Valle Boinas/Carles mine in Spain and its UMZ mine in Bolivia. This despite the accident with the hoist at EVBC on June 17th which will cause Orvana to use ramp hauling again, combined with greater oxides mining at El Valle and an overall production increase at the Carles mine.

The company also announced the June and Q2 production results, which came in at respectively almost 5,900 ounces of gold and 18,500 ounces. During the entire quarter, the company also produced almost 2 million pounds of copper and almost 60,000 ounces of silver.

The hoist accident is obviously a setback, as this will lower the output, increase the opex and will very likely require a substantial amount of capex (between C$2.5-3.5M) and will probably take between 4 and six months to be completed. Orvana hopes the insurance companies will cover all expenses to repair the hoist.

> Click here to read the press release

Disclosure: The author holds no position in Orvana Minerals. Please see our disclaimer for current positions.

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