Assets

Operations Overview

  • Operations Highlights

    LocationZacatecas, Mexico
    Ownership100%
    StatusIn Operation
    Type of MineOpen pit heap leach
    2022 Production Guidance90,000 - 100,000 ounces
    Gold Mineral Reserve1.6 Moz Total Proven and Probable (67.4 Mt at 0.73 g/t)*
    Gold Mineral Resource9.5 Moz Total M&I (353.4 Mt at 0.83 g/t) *
    Crusher Throughput18,000 tpd
    Exploration163,000 Ha land package

    * Refer to “Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico”, dated effective January 11, 2021 on this website or on SEDAR

  • Simple Oxide Heap Leach Project with Large Sulphide Resource

    The Camino Rojo Project is a high quality, oxide heap leach operations in a low-risk jurisdiction. This type of operation leverages Management’s and the Board’s extensive exploration, development and operating experience in Mexico.

    • Near-surface oxide gold-silver deposit with a large deeper gold-silver-zinc-lead sulphide zone
    • Low complexity, low capital intensity, open pit oxide mine with a straightforward heap leach
    • Flat-lying topography
    • Well-located in the State of Zacatecas: 3km off a paved highway, excellent regional infrastructure including connection to grid electricity, 50km SE of Penasquito Mine
    • Ejido agreements in place; strong community relationships
    • Water concessions granted; sufficient water for operations proven
    • Proven and Probable Mineral Reserves of 1.6 Moz of gold and 31 Moz of silver (67.4 Mt at 0.73 g/t gold and 14.5 g/t silver) *
    • Measured and Indicated Mineral Resources of 9.5 Moz gold and 100 Moz of silver (353.4 Mt at 0.83 g/t gold and 8.8 g/t silver)*
  • Camino Rojo Operations Update (Q1 2022 Update)

    • During the quarter, site activities were focused on commissioning and ramp up of mining and processing activities to sustained throughput levels.
    • Commercial production at the Camino Rojo Oxide Mine was declared effective April 1, 2022.
    • During the quarter, construction activities included installation of heap leach liner in cell two and event pond, placement of overliner material on cell two of the heap leach, commissioning of the third and final overland conveyor, construction of the airstrip, and completion of the rainwater runoff diversion.
    • Camino Rojo achieved record monthly processing throughput in March 2022. The average daily stacking throughput for the month was 17,444 tonnes per day or 97% of nameplate capacity of 18,000 tonnes per day. Daily stacking throughput for the first quarter of 2022 averaged 15,917 tonnes per day. Achieving nameplate capacity is expected during the second quarter. Mined ore tonnes are reconciling well to the block model and process recoveries to date are in line with the metallurgical recovery model.
    • Capital expenditures for Camino Rojo were $122.3 million at March 31, 2022, against the current project estimate, consistent with the total project capital expenditure estimate of $134.1 million. Remaining project spend of $3.2 million is expected to occur in the second quarter of the year.

    Camino Rojo Operating Highlights

     

    Q1-2022

     

     

     

    Mining

     

     

    Total Ore Mined

    tonnes

    1,866,151

    Ore – processed

    tonnes

    1,404,952

    Low Grade Ore – stockpiled

    tonnes

    461,199

    Waste Mined

    tonnes

    707,719

    Total Mined

    tonnes

    2,573,871

    Strip Ratio

    w:o

    0.38

    Total Ore Mined Gold Grade

    g/t

    0.68

    Ore – processed

    g/t

    0.79

    Low Grade Ore – stockpiled

    g/t

    0.36

     

     

     

    Processing

     

     

    Ore Crushed

    tonnes

    1,369,111

    Ore Stacked

    tonnes

    1,652,999

    Stacked Ore Gold Grade

    g/t

    0.81

    Gold Produced

    oz

    23,031

     

     

     

    Daily Throughput Rate – Average*

    tpd

    15,917

    Daily Throughput / Nameplate Capacity

     

    88.4%

    Total Crushed Ore Stockpile

    tonnes

    219,019

    Total Crushed Ore Stockpile Au Grade

    g/t

    0.87

    Total ROM Ore Stockpile**

    tonnes

    863,913

    Total ROM Ore Stockpile Grade

    g/t

    0.38

  • Camino Rojo Sulphide Project Update

    On May 9, 2022, the Company provided a summary of Phase 1 metallurgical test results on its Camino Rojo sulphide deposit (the “Sulphide Project” or “Camino Rojo Sulphides”), located in Zacatecas, Mexico1. The Phase 1 metallurgical program has greatly increased Orla’s understanding of metallurgical characteristics of Camino Rojo Sulphides, and appears to open up multiple processing options for the Camino Rojo Sulphides relative to what was suggested by previous work. The Phase 1 metallurgical program included tests on grinding characteristics, amenability to cyanidation, selective flotation, and pressure oxidation. In addition to the Phase 1 tests, a geometallurgical model was developed using new and historical metallurgical test results. Geometallurgical modelling integrates geological, geochemical, mineralogical, and recovery data to characterize zones of metallurgical response. It supports mine planning, flowsheet design, and connects mine and process planning as part of the optimization of mine-to-mill production and economic analysis. Highlights of Phase 1 metallurgical program include the following:

    • The geometallurgical model recognized five, spatially distinct, physically continuous geometallurgical zones within the 7.3-million-ounce sulphide gold deposit (measured and indicated mineral resource estimate of 259 million tonnes at 0.88 g/t Au, 7.4 g/t Ag, 0.07% Pb,0 0.26% Zn)2 .
    • Two geometallurgical zones of the Camino Rojo Sulphide mineralization appear to be amenable to conventional carbon-in-leach (“CIL”) processing.
    • Selective flotation may be used to produce a gold concentrate. • Selective flotation may be used to produce a concentrate that can be treated using pressure oxidation.
    • There is potential to produce a zinc concentrate.

    These positive results confirm potential for a standalone processing option for the Camino Rojo Sulphides. The Company will continue to work towards determining the optimal development plan with the goal of generating the greatest value for stakeholders. The metallurgical recoveries and geometallurgical zones will be used to determine new cut-off grades for open pit and underground mine designs. The respective mine designs will be used to support an updated sulphide mineral resource estimate, which is currently in progress, and will form the basis of a Preliminary Economic Assessment (the “PEA”) on the Sulphide Project targeted for end of year 2022.

    The development scenarios being considered to potentially form the basis of a PEA currently include: (1) an underground mining option with phased processing at a to-be-constructed CIL and flotation facility at Camino Rojo, or (2) an open pit mining option with phased processing at a to-be-constructed CIL and flotation facility at Camino Rojo, or (3) an open pit mining option with processing at Newmont Corporation’s (“Newmont”) Peñasquito facility.

    Work planned in 2022 includes the following:

    • Completion of 8,250-metre, Phase 2 Sulphide Project drill program to reinforce the geologic model and to continue to confirm the continuity of wide zones of higher-grade gold mineralization. The program has commenced on the first of 15 diamond drill holes and results are expected in the second half of 2022.
    • Update of resource estimate for the Camino Rojo Sulphides.
    • Completion of Phase 1 metallurgical test program, finalize the process design criteria, and develop the financial model for the selected mining and processing options as part of the PEA.
    • Completion of PEA in the fourth quarter of 2022.

    1. See the Company’s press release dated May 9, 2022 titled “Orla Mining Announces Positive Initial Metallurgical Results on Camino Rojo Sulphide Project”.

    2. The mineral resource estimate for the Sulphide Project at Camino Rojo consists of 74 koz of measured resource (3.358 million tonnes at 0.69 g/t gold) and 7,221 koz of indicated resources (255.445 million tonnes at 0.88 g/t gold) and has an effective date of June 7, 2019. Additional information can be found in the Camino Rojo Technical Report entitled “Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico” and dated January 11, 2021.

  • Feasibility Study Update Highlights

    Camino Rojo Oxide Feasibility Study Update HighlightsUnitsValues
    Throughput Rate per Daytonnes18,000
    Total Ore to Leach PadM tonnes67.4
    Gold Grade (Average)g/t0.73
    Silver Grade (Average)g/t14.5
    Contained Goldounces1,588,000
    Contained Silverounces31,506,000
    Average Gold Recovery%62%
    Average Silver Recovery%20%
    Recovered Goldounces980,000
    Recovered Silverounces6,189,000
    Mine Lifeyears10.4
    Average Annual Gold Productionounces94,000
    Strip Ratio waste : ore0.92
    Initial CapexUS$ million$134
    Avg. Life of Mine Operating costs$/t ore processed$8.17
    Total Cash Cost (net of by-product credits)1 $/oz Au$490
    All-In Sustaining Cost (“AISC”)1$/oz Au$543
    Pre -Tax - NPV (5% discount rate)US$ million$668
    Pre-Tax IRR%82%
    After-Tax - NPV (5% discount rate)US$ million$452
    After-Tax IRR%62%
    Paybackyears1.5

    The Camino Rojo updated Feasibility Study considers open pit mining of 67.4 million tonnes of oxide and transitional ore at a rate of 18,000 tonnes per day. Ore from the pit will be crushed to 80% passing 28 mm, conveyor stacked onto a heap leach pad and leached using a low concentration sodium cyanide solution. Pregnant solution from the heap leach will be processed in a Merrill-Crowe recovery plant where gold and silver will be precipitated and doré will be produced. The site’s proximity to infrastructure, low stripping ratio, compact footprint, and flat pad location all contribute to the Project’s simplicity and low estimated AISC of $543 per ounce of gold.

    The updated Feasibility Study was conducted using a gold price of $1,600 per ounce and a silver price of $20 per ounce and is expressed in U.S. dollars.

    The updated Feasibility Study was prepared by a team of independent industry experts led by Kappes Cassiday and Associates (“KCA”) and supported by Independent Mining Consultants (“IMC”), Resource Geosciences Incorporated (“RGI”), John Ward Groundwater Consultant, Barranca Group LLC, Piteau Associates Engineering Ltd. and HydroGeoLogica Inc (“HGL”).

    The updated Feasibility Study incorporates geological, assay, engineering, metallurgical, geotechnical, environmental, and hydrogeological information collected by Orla and previous owners since 2007, including 370,566 metres of drilling in 911 holes. Predicted average gold recoveries of 62% are based on results from 85 column tests.

    Operating costs are based on contract mining with all other mine components being owned and operated by Orla. Approximately 58% of capital costs are based on purchase orders and updated firm proposals for equipment, material, and construction contracts from ongoing EPCM and site activities. For capital items not yet purchased, budgetary supplier quotes were used.

    1 Total cash cost and AISC are non-GAAP measures and are net of silver credits and includes royalties payable. See reference below regarding non-GAAP measures.

    *All dollar amounts in US dollars

  • Reserves and Resources

    Reserve Category

    Tonnes

    (000's)

    Gold

    (g/t)

    Silver

    (g/t)

    Gold

    (koz)

    Silver

    (koz)

    Proven Mineral Reserve18,0670.80215.44668,949
    Probable Mineral Reserve49,2960.70814.231,122.8022,555
    Total Proven & Probable Reserve67,3650.73414.551,588.7031,503

     

    Resource Type by Category

    Tonnes

    (000's)

    Gold

    (g/t)

    Silver

    (g/t)

    Gold

    (koz)

    Silver

    (koz)

    Leach Resource:     
       Measured Mineral Resource19,3910.7714.9482.39,305
       Indicated Mineral Resource75,2490.712.21,680.7029,471
       Meas./Ind. Mineral Resource94,6400.7112.72,163.0038,776
       Inferred Mineral Resource4,3550.865.6119.8805
          
    Mill Resource:     
       Measured Mineral Resource3,3580.699.274.2997
       Indicated Mineral Resource255,4450.887.47,221.4060,606
       Meas./Ind. Mineral Resource258,8030.887.47,295.6061,603
       Inferred Mineral Resource56,5640.877.51,576.9013,713
    Total Mineral Resource     
       Measured Mineral Resource22,7490.7614.1556.510,302
       Indicated Mineral Resource330,6940.848.58,902.1090,078
       Meas./Ind. Mineral Resource353,4430.838.89,458.60100,379
       Inferred Mineral Resource60,9190.877.41,696.7014,518

     

    Resource Type by Category

    Tonnes

    (000's)

    Lead

    (%)

    Zinc

    (%)

    Lead

    (M lbs)

    Zinc

    (M lbs)

    Mill Resource:     
       Measured Mineral Resource3,3580.130.389.328.2
       Indicated Mineral Resource255,4450.070.26404.31,468.70
       Meas./Ind. Mineral Resource258,8030.070.26413.61,496.80
       Inferred Mineral Resource56,5640.050.2363.1290.4

    Mineral Reserves Notes:

    1. The Mineral Reserve estimate has an effective date of January 11, 2021 and was prepared using the CIM Definition Standards.

    2. Columns may not sum exactly due to rounding.

    3. Mineral Reserves are based on prices of $1250/oz gold and $17/oz silver.

    4. Mineral Reserves are based on NSR cut-offs that vary by time period to balance mine and plant production capacities. They range from a low of $4.93/t to a high of $12.00/t.

    5. NSR value for leach material is as follows:

    Kp Oxide: NSR ($/t) = 27.37 x gold (g/t) + 0.053 x silver (g/t), based on gold recovery of 70% and silver recovery of 11%

    Ki Oxide: NSR ($/t) = 21.90 x gold (g/t) + 0.073 x silver (g/t), based on gold recovery of 56% and silver recovery of 15%

    Tran-Hi: NSR ($/t) = 23.46 x gold (g/t) + 0.131 x silver (g/t), based on gold recovery of 60% and silver recovery of 27%

    Tran-Lo: NSR ($/t) = 15.64 x gold (g/t) + 0.165 x silver (g/t), based on gold recovery of 40% and silver recovery of 34%

    6. Please see Forward-Looking Statements below regarding mineral resource and mineral reserve estimates and footnote 14 of Table 7

    Mineral Resource Notes:

    1. The mineral resource has an effective date of June 7, 2019. The mineral resources are classified in accordance with the CIM Definition Standards in accordance with the disclosure requirement of NI 43-101.

    2. Columns may not sum exactly due to rounding.

    3. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

    4. Mineral resources for leach material are based on prices of $1,400/oz gold and $20/oz silver.

    5. Mineral resources for mill material are based on prices of $1,400/oz gold, $20/oz silver, $1.05/lb lead, and $1.20/lb zinc.

    6. Mineral resources are based on net smelter return cut-off of $4.73/t for leach material and $13.71/t for mill material.

    7. Includes 2% royalty and an USD:MXN exchange rate of 19.3.

    8. Operating costs for Leach resource - mining $1.65/t mined; process $3.41/t processed; G&A $1.32/t processed; Operating costs for Mill resource - mining $1.65/t mined; process $12.50/t processed; G&A $1.20/t processed.

    9. Leach resource payable – Au 100%; Ag 100%; Mill resource payable – Au 95%, Ag 95%, Pb 95%, Zn 85%.

    10. Leach resource refining costs - Au $5.00/oz; Ag $0.50/oz; Mill resource refining costs - Au $1.00/oz; Ag $1.50/oz; Pb $0.194/lb; Zn $0.219/lb.

    11. The mineral resource estimate assumes that the floating pit cone used to demonstrate reasonable prospects for eventual economic extraction extends onto land held by the Fresnillo. Any potential development of the Camino Rojo Project that includes an open pit encompassing the entire mineral resource estimate would be dependent on obtaining an agreement with Fresnillo (or subsequent owner).

    12. Mineral resources are inclusive of mineral reserves.

    13. An Inferred Mineral Resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.

    14.Please see Forward-Looking Statements below regarding mineral resource and mineral reserve estimates. Please also refer to the Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico dated January 11, 2021 for further details regarding the key assumptions, parameters, and methods used in the mineral resource estimate (including risk factors).

    Refer to “Camino Rojo Project Feasibility Study NI 43-101 Technical Report” on this website or on SEDAR

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