Location | Zacatecas, Mexico |
Ownership | 100% |
Status | In Operation |
Type of Mine | Open pit heap leach |
2022 Production Guidance | 90,000 - 100,000 ounces |
Gold Mineral Reserve | 1.6 Moz Total Proven and Probable (67.4 Mt at 0.73 g/t)* |
Gold Mineral Resource | 9.5 Moz Total M&I (353.4 Mt at 0.83 g/t) * |
Crusher Throughput | 18,000 tpd |
Exploration | 163,000 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
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.
Camino Rojo Operating Highlights |
| Q1-2022 |
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Mining |
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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 |
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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 |
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|
|
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 |
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:
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:
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.
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 |
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
Reserve Category | Tonnes (000's) | Gold (g/t) | Silver (g/t) | Gold (koz) | Silver (koz) |
Proven Mineral Reserve | 18,067 | 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 | Tonnes (000's) | Gold (g/t) | Silver (g/t) | Gold (koz) | Silver (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 | Tonnes (000's) | Lead (%) | Zinc (%) | Lead (M lbs) | Zinc (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).