Projects

Overview

  • Project Highlights

    LocationZacatecas, Mexico
    Ownership100%
    StatusIn Construction
    Type of MineOpen pit heap leach
    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
    Estimated Avg. Annual Production94,000 oz Au, 597,000 oz Ag
    Estimated StartupQ4 2021
    Exploration163,000 Ha land package

    * Refer to January 11, 2021 News Release “Orla Mining Increases Gold Mineral Reserves by 54% With Updated Feasibility Study at the Camino Rojo Oxide Gold Project” on this website or on SEDAR.

  • Simple Oxide Heap Leach Project with Large Sulphide Resource Below

    The Camino Rojo Project is a high quality, advanced oxide heap leach project in a low risk jurisdiction. This type of project 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
    • Permitted for construction
    • Detailed engineering over 90% complete
    • Procurement is 85% complete
    • Located 50km SE of Penasquito Mine in the State of Zacatecas
    • Ejido agreements in place; strong community relationships
    • Water concessions granted; sufficient water for operations proven
    • Excellent regional infrastructure
    • 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)*
  • Feasibility Study Update Highlights

    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.

    Camino Rojo Oxide Feasibility Study Update Highlights

    Units

    Values

    Throughput Rate per Day

    tonnes

    18,000

    Total Ore to Leach Pad

    M tonnes

    67.4

    Gold Grade (Average)

    g/t

    0.73

    Silver Grade (Average)

    g/t

    14.5

    Contained Gold

    ounces

    1,588,000

    Contained Silver

    ounces

    31,506,000

    Average Gold Recovery

    %

    62%

    Average Silver Recovery

    %

    20%

    Recovered Gold

    ounces

    980,000

    Recovered Silver

    ounces

    6,189,000

    Mine Life

    years

    10.4

    Average Annual Gold Production

    ounces

    94,000

    Strip Ratio 

    waste : ore

    0.92

    Initial Capex

    US$ 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%

    Payback

    years

    1.5

    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

  • Camino Rojo Oxide Project Construction Update (January 2021)

    Detailed engineering of the Project described in the 2019 Feasibility Study is over 90% complete and procurement is 85% complete. The start of earthworks was announced on November 26, 2020 and since that time, 230 hectares have been cleared for construction activities with over 20,000 cubic metres of topsoil being removed and stockpiled. A total of 3,703 plants have been rescued as part of flora and fauna relocation. The 44-kilometre, 33-kV power line is 49% complete. Equipment deliveries to site commenced in December 2020. A total of $78 million of the total Project capital has been committed through purchase orders and contracts. The mining contract is being finalized and expected to be in place early in the first quarter of 2021.

    First gold production is planned for late 2021.

    Orla will begin working on a Change of Land Use permit amendment for the expanded pit and other permitting requirements for the increased tonnes planned to be mined as a result of the Layback Agreement.Additional work is required to bring material on the Fresnillo concession to the measured and indicated mineral resource category which will then facilitate a mineral reserve update. Work required includes an estimated 2,500 metres of drilling, detailed QA/QC, and integration of Orla’s geological and resource models with Fresnillo’s drill data.

     

  • Reserves and Resources

    Reserve Category

    000's

    Gold

    Silver

    Gold

    Silver

    Gold

    Silver

    tonnes

    (g/t)

    (g/t)

    (g/t)

    (g/t)

    (koz)

    (koz)

        

    0.802

    15.4

    466

    8,949

    Probable Mineral Reserve

    49,296

      

    0.708

    14.23

    1,122.80

    22,555

    Total Proven & Probable Reserve

    67,365

      

    0.734

    14.55

    1,588.70

    31,503

     

    Resource Type by Category

    000's

    Gold

    Silver

    Gold

    Silver

    tonnes

    (g/t)

    (g/t)

    (koz)

    (koz)

    Leach Resource:

     

     

     

     

     

       Measured Mineral Resource

    19,391

    0.77

    14.9

    482.3

    9,305

       Indicated Mineral Resource

    75,249

    0.7

    12.2

    1,680.70

    29,471

       Meas./Ind. Mineral Resource

    94,640

    0.71

    12.7

    2,163.00

    38,776

       Inferred Mineral Resource

    4,355

    0.86

    5.6

    119.8

    805

     

     

     

     

     

     

    Mill Resource:

     

     

     

     

     

       Measured Mineral Resource

    3,358

    0.69

    9.2

    74.2

    997

       Indicated Mineral Resource

    255,445

    0.88

    7.4

    7,221.40

    60,606

       Meas./Ind. Mineral Resource

    258,803

    0.88

    7.4

    7,295.60

    61,603

       Inferred Mineral Resource

    56,564

    0.87

    7.5

    1,576.90

    13,713

     

     

     

     

     

     

    Total Mineral Resource

     

     

     

     

     

       Measured Mineral Resource

    22,749

    0.76

    14.1

    556.5

    10,302

       Indicated Mineral Resource

    330,694

    0.84

    8.5

    8,902.10

    90,078

       Meas./Ind. Mineral Resource

    353,443

    0.83

    8.8

    9,458.60

    100,379

       Inferred Mineral Resource

    60,919

    0.87

    7.4

    1,696.70

    14,518

     

    Resource Type by Category

    000's

    Lead

    Zinc

    Lead

    Zinc

    tonnes

    (%)

    (%)

    (M lbs)

    (M lbs)

    Mill Resource:

     

     

     

     

     

       Measured Mineral Resource

    3,358

    0.13

    0.38

    9.3

    28.2

       Indicated Mineral Resource

    255,445

    0.07

    0.26

    404.3

    1,468.70

       Meas./Ind. Mineral Resource

    258,803

    0.07

    0.26

    413.6

    1,496.80

       Inferred Mineral Resource

    56,564

    0.05

    0.23

    63.1

    290.4

     

    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

©2021Orla Mining Ltd.
All rights reserved.
Disclaimer

Subscribe to our Email List