Vancouver, British Columbia--(Newsfile Corp. - June 19, 2018) - Orla Mining Ltd. (TSXV: OLA) ("Orla" or the "Company") is pleased to report that drilling in the Caballito copper-gold zone at its wholly owned Cerro Quema project in Panama continues to intersect near-surface mineralization with greater than 1% copper and associated gold values.
Diamond drill hole CQDH18-163 intersected 147.7 metres at 1.25% copper and 0.28 g/t gold from 42.5 to 190.2 metres. This includes a 42.0 metre interval at 3.12% copper and 0.36 g/t gold within a structural zone that is thought to be steep dipping and north-south striking. The wider intercept is lithologically controlled by a shallow west dipping zone of breccia. In the same hole, a near-surface oxide intercept graded 0.45 g/t gold over 13.5 metres from 4.5 to 18.0 metres.
Hole CQDH18-164 had several intercepts. The upper 33.0 metres averaged 0.81 g/t gold in oxide. A 69.5 metre intersection starting at 52.5 metre is comprised of 43.8 metres averaging 0.36 g/t gold in oxide and 25.7 metre at 1.96% copper and 0.52 g/t gold in sulphide. This was followed by 7.5 metres of low grade material and a further 14.5 metre at 0.72% copper and 0.35 g/t gold. This intercept is the furthest northwest intercept to date on the Caballito zone.
The third hole reported, CQDH18-162, intersected 4.6 metres at 1.38% copper and 0.17 g/t gold from 170.2 to 174.8 metres. Based on the geophysical model, it is interpreted that the hole might have been drilled on the edge of the main area of mineralization.
Assay results for holes drilled in the central and north-eastern part of the Caballito zone are pending. Additional holes are planned to test the full potential for higher grade copper-gold mineralization within the approximately 700 metre NW-SE by 400 metre NE-SW geophysical anomaly that defines the overall area of the zone.
Drilling will start soon to test for the potential extension of mineralization on the northwest side of a fault that is interpreted to offset the Caballito zone north of the intersection in hole CQDH18-164. Initial holes will be targeted on a geophysical signature similar to Caballito, outlined by an induced polarization ("IP") survey completed earlier this year. Crews have just arrived on site to continue the IP coverage northward through the area of the Quemita oxide zone. Similar Caballito-style copper-gold mineralization was observed while relogging 2017 and historical holes drilled 1 km and more north of the Caballito zone. The lower arsenic copper-gold mineralization post-dates high arsenic mineralization that is more typical of high-sulphidation systems. As the potential for Caballito style mineralization was not realized previously, copper-gold intercepts at Quemita were not followed up. IP has been instrumental in outlining areas of high grades at Caballito and will help target new drilling at Quemita.
"Drilling at Caballito has returned numerous intercepts with greater than 1% copper and 0.2 to 0.6 g/t gold in a 400 by 700 metre area. Further drilling is in progress to determine the full potential of this area. Our excitement now is getting to test the potential for additional Caballito magnitude widths and grades over the next kilometre of strike. Since hole CQDH18-116, when we first recognized the potential of the Caballito zone last September, this zone has evolved into a potential discovery that we are very excited about" stated Marc Prefontaine, President and Chief Executive Officer. "We look forward to advancing this discovery over the next months."
Table of Drill Holes released on June 19, 2018
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Mineralization is controlled by both high angle structures and shallow dipping lithology. Therefore, the true widths of intersections are difficult to determine.
Caballito Cu-Au 2018 Drill Hole Results & Exploration Potential
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Quality Control Protocols
All gold results were obtained by ALS Minerals (Au-AA23) using fire assay fusion and an atomic absorption spectroscopy finish. All samples are also analyzed for multi-elements, including silver and copper, using an Aqua Regia (ME-ICP41) method at ALS Laboratories in Peru. Samples with copper values in excess of 1% by ICP analysis are re-run with Cu AA46 aqua regia and atomic absorption analysis. Drill program design, Quality Assurance/Quality Control and interpretation of results are performed by qualified persons employing a Quality Assurance/Quality Control program consistent with NI 43-101 and industry best practices. Standards, blanks and duplicates are included approximately one every 25 samples for Quality Assurance/Quality Control purposes by the Company as well as the lab. Approximately 5% of sample pulps are sent to a secondary laboratory for check assays. The HQ diameter core is halved with a diamond saw.
The technical information in this news release has been reviewed and approved by Mr. Hans Smit, P.Geo., Chief Operating Officer of Orla Mining Ltd., who is the Qualified Person for the technical information in this news release under NI 43-101 standards.
On behalf of the Board of Directors,
Marc Prefontaine, M.Sc., P.Geo.,
President & Chief Executive Officer
About Orla Mining Ltd.
Orla Mining Ltd. owns 100% of the Camino Rojo oxide project located in Zacatecas, Mexico. Camino Rojo is an advanced gold and silver project covering over 200,000 hectares. Access and infrastructure are excellent with a paved highway and powerline nearby. A NI 43-101 Technical Report on Camino Rojo will be available on SEDAR under the Company's profile by July 13, 2018. Orla also owns 100% of the Cerro Quema project in Panama which includes a near-term gold production scenario and various exploration targets. Cerro Quema's 14,800-hectare concession is close to infrastructure with easy access to site and strong community support. The Cerro Quema project is currently in the last stage of the permitting process for a proposed open pit mine and gold heap leach operation. Please refer to the "Cerro Quema Project - Pre-feasibility Study on the La Pava and Quemita Oxide Gold Deposits" dated August 15, 2014, which is available on SEDAR.
This news release contains certain "forward-looking statements" within the meaning of Canadian and United States securities legislation, including, without limitation, statements with respect to the results of exploration and planned exploration programs, the potential for discovery of additional mineral resources and the Company's objectives and strategies. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release, including without limitation, assumptions that the Company's activities will be in accordance with the Company's public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of preliminary economic assessments, drill results and the estimation of mineral resources; and risks associated with executing the Company's objectives and strategies, including costs and expenses. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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President & Chief Executive Officer