VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - Orla Mining Ltd. (TSX VENTURE:OLA) ("Orla" or the "Company") provides an update on its wholly owned Cerro Quema Project located in Santos Province, Panama. Drilling commenced in mid January with one rig and six holes have been completed. Two additional rigs are in-country and are expected to be mobilized shortly. New drill holes have intersected high sulphidation style alteration similar to what is seen in the existing resource areas up to 400 metres from the proposed Quemita pit. Extensive hydrothermal brecciation with silica and vuggy silica alteration and oxidation levels up to 100 metres below surface may indicate potential for the discovery of additional centres of mineralization. Assay results are pending.
Surface mapping combined with re-interpretation of previous IP surveys has identified other zones of high-sulphidation style alteration which will be evaluated in the upcoming weeks. A 40 line-kilometre grid has been cut for an IP survey which will start next week. This survey is being undertaken in an area with little outcrop to determine the extents of an open ended 800 by 500 metre resistor 400 metres northeast of any previous drilling that was outlined in a IP survey conducted in 2013. Resistors without coincident high chargeability can represent underlying strong silica alteration.
The Company also is providing an update on the renewal of the three Cerro Quema Project mineral exploitation concessions. The original 20-year term for these concessions ended on February 26, 2017 (Contracts 19 and 20) and March 3, 2017 (Contract 21). The Company has applied for the prescribed 10 year extension to these contracts as it is entitled to under Panamanian mineral law. The Company believes it has complied with all legal requirements in relation to the concessions. Government officials have given confirmation that the extension applications were received and have given verbal assurance that they are complete with no outstanding legal issues. Furthermore, the Panamanian Ministry of Commerce and Industry approved the most recent annual report for the concessions which includes a work plan for 2017. The Company has received advice from its legal counsel in Panama that it can continue exploration activities on the Cerro Quema Project concessions while the Company awaits final executed documents. Exploration on the project is subject to area-specific authorizations, including newly acquired approvals to drill targets to the south of the current resource areas. The Company owns the land rights over the areas of the current resources, proposed mine development and the priority drill targets.
"We are very pleased with the progress we have made with our exploration efforts at Cerro Quema in a very short time period of time. When Orla became involved in the project we believed that in addition to the current reserves there was high potential for finding additional gold ounces. Systematic work has confirmed our initial enthusiasm was warranted," states Marc Prefontaine, Orla's President and Chief Executive Officer. "We are working closely with Panamanian officials and expect to conclude the concession renewal process forthwith."
The Company has a booth at the 2017 PDAC convention, the world's leading event for mineral exploration and finance. Please visit us at booth 2929 in the Investors Exchange.
A map showing the current focus of exploration is available on the Company's website at www.orlamining.com.
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, Director, President & Chief Executive Officer
Orla Mining is a mineral exploration company led by a group of seasoned mining executives with strong financial backing. The company's focus is to acquire mineral exploration opportunities where the Company's exploration and development expertise and corporate share structure could substantially enhance shareholder value. 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, for information on data verification, quality assurance and quality control and other exploration information related to this study.
The company is actively evaluating other opportunities.
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 renewal of the exploitation concessions, including process and expected timing for receipt of such renewals, potential results of exploration, potential increases to the net present value, any increase to the mineral resource estimate and the ability to incorporate the results into a mine plan, future drill programs and exploration programs, including the timing of such plans and programs, as well as 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 with respect to compliance with the requirements and application process for renewal of the exploitation concessions, the results of the current exploration program, expectations regarding mineral exploration and development costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company's current mineral resource estimates; 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 relating to the renewals of the exploitation concessions not being received, including termination of such concessions; 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.
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