VANCOUVER, BC - May 23, 2018 - Orla Mining Ltd. (TSX VENTURE: OLA) (or the "Company") is pleased to report another high grade intercept in the Caballito copper-gold zone at its wholly owned Cerro Quema project in Panama. The Company also reports that it has recently received a permit to drill in the Sombrero area located just to the north of the Caballito zone. This will allow drilling to test for potential extensions to the copper-gold mineralization to the north of the area drilled to date.
Recent results include drill hole CQDH-18-160 that intersected 85.8 metres grading 0.39 g/t Au and 1.44% Cu from 39.6 m to 125.4 m depth. The average was calculated after cutting two very high copper values (36.0% and 7.0%) to the value of the third highest copper value of 3.4%.
Two other holes, CQDH-18-159 and CQDH-18-161, did not intersect significant values. Hole CQDH-18-159 was drilled underneath the zone on the south end of a chargeability high outlined in an Induced Polarization (“IP”) survey completed earlier this year. Hole CQDH-18-161, drilled 100 metres north of CQDH-18-160, was in the chargeability anomaly but in an area with moderate resistivity (see figure 1). This confirms the interpretation that the zone with high copper and gold values is characterized by moderate chargeability and low resistivity. The low resistivity is believed to be related to the very high sulphide content of the material which results in good conductivity.
To the northwest of the 600 metre strike length of Caballito style mineralization identified to date, the IP shows a similar but steeper dipping chargeability high and resistor low at depth (200 metres) that could be a down-faulted continuation of the same mineralization. With the newly acquired drill permit, this high priority target can now be tested. Drilling in this area, known as Sombrero, will also target near-surface oxide mineralization which outcrops at surface.
Company geologists have re-examined core from sulphide intercepts below the Quemita oxide gold reserve located 1.2 km to the northwest of Caballito and have found indications of Caballito style copper-gold mineralization with low arsenic. Further work is underway, including extending the 2018 IP grid northward through the area.
“Drilling at Caballito continues to demonstrate a shallow west dipping zone of high grade copper-gold mineralization which has been defined for 600 metres along a northwest trend” stated Marc Prefontaine, President and Chief Executive Officer. “The recently acquired drill permit is important as it now allows us to test targets which have indicated mineralization is likely continuing to the northwest. The permit is also important as it demonstrates government support as we move the Cerro Quema project forward.”
Table of Drill Holes released on May 22, 2018
No sig int
No sig int
Note: CQDH-18-160 average; a 7.0% and a 36.0% Cu assay cut to 3.4% (third highest assay)
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 power line 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.
For further information, please contact:
President & Chief Executive Officer