VANCOUVER, BC - (Marketwired – March 22, 2018) - Orla Mining Ltd. (TSX VENTURE: OLA) ("Orla" or the "Company") is pleased to provide an update on exploration work in the Caballito copper-gold zone at its wholly owned Cerro Quema project in Panama. Highlights include diamond drill hole CQDH-18-157 which intersected 124.5 metres grading 0.47 g/t Au and 1.54% Cu from 75.0 to 199.5 m depth.
Results from the first three holes drilled in 2018 are reported herein. (A plan map showing the hole locations is attached). All were drilled within a chargeability anomaly that was outlined in a recently completed Induced Polarization (IP) survey. Holes were drilled to better define the geometry of the mineral system and to continue to test the system for high copper-gold, low arsenic mineralization.
In addition to the copper-gold intersection, CQDH-18-157 had an upper intersection of gold that graded 0.73 g/t Au over 30.0 metres from 9.0 to 39.0 m in oxide with an additional 13.5 metres grading 0.59 g/t Au in sulphide. In the wide copper-gold intersection, gold is relatively consistent throughout. Copper is elevated throughout the intercept but is relatively more variable in tenor. There is a higher-grade section from 94.5 to 127.5 metres that averaged 0.49 g/t Au and 2.78% Cu over the 33.0 metres.
Hole CQDH-18-156, drilled from a pad 100 metres to the west of CQDH-18-157, intersected 147.6 metres grading 0.21 g/t Au and 0.33% Cu from 46.2 to 193.8 metres. Hole CQDH-18-158 which was drilled a further 100 metres to the west did not intersect significant mineralization. It is in an area of low chargeability and confirms the IP model and that mineralization is associated with higher chargeability.
A recently completed IP survey at Caballito was comprised of 27 line-km with 100 metre spaced lines and 50 metre stations. The survey shows a zone with two NW-SE trending high chargeability anomalies within an area of anomalous chargeability covering 500 to 700 metres in the NW-SE direction and 200 to 400 metres in the NE-SW direction. Best grades intersected to date are in areas of moderate chargeability and low resistivity.
The IP results indicate that the mineralized zone is cut on its NW and SE sides, probably by post-mineral faulting. The zone is also cut on the west side by a fault. There is some indication this fault may be remobilizing an earlier mineralizing structure.
Mineralization appears to form a shallow west-dipping zone. (See attached cross-section). The orientation and extent of the higher copper-gold grade mineralization within this zone will require further drilling to evaluate as will determining the spatial relationship between the low arsenic copper-gold mineralization and high arsenic mineralization that also occurs within the area of the IP anomaly.
To the northwest of the Caballito anomaly, the IP shows a steeper dipping chargeability high and resistor low at depth (200 metres) that trends towards the Quemita reserve area located 1.2 km to the northwest of Caballito. There are no holes that test this part of the anomaly. This is a high-priority target for additional Cu-Au mineralization to the northwest of Caballito and permitting to allow drilling is in progress.
Table of Drill Holes released on March 22, 2018
No significant intercepts
Maps showing the location of holes and a cross section are attached to this press release.
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.
The 100% owned Cerro Quema project in Panama includes a near-term gold production scenario and significant exploration upside. Cerro Quema's 14,800 Ha concession boasts paved road access, a supportive local population and private land ownership. 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 22, 2014, which is available on SEDAR. Camino Rojo is an advanced gold and silver project located in Zacatecas State, Central Mexico. The project is 100% owned and has historical oxide reserves along with historical sulphide resources. It covers over 200,000 hectares and the Company believes it has exploration potential for additional oxide and sulphide mineral resources. Access and infrastructure are excellent with a paved highway and powerline nearby. A NI 43-101 Technical Report on Camino Rojo dated January 26, 2018 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