Name of the Project
Camino Rojo oxide gold project.

Location
Zacatecas state, central Mexico.

Project Owner/s
Orla Mining.

Project Description
The Camino Rojo project is an advanced gold and silver openpit and heap-leach project. It has estimated mineral reserves of 44-million tonnes grading 0.73 g/t gold and 14.2 g/t silver, for 1.03-million ounces of gold and 20.1-million ounces of silver respectively.

The Camino Rojo feasibility study supports a technically simple openpit mine and heap-leach operation with low capital and operating costs, providing rapid payback and a strong financial return. The study envisages near-surface openpit mining of 44-million tonnes of oxide and transitional ore at a throughput rate of 18 000 t/d.

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. Gold production is estimated at 97 000 oz/y over 6.8 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $227-million and an internal rate of return of 38.6%, with a payback of three years.

Capital Expenditure
Estimated at $123.11-million.

Planned Start/End Date
The construction of the project is expected to start in the first half of 2020 upon receipt of all required permits and project financing. First gold production is planned for mid-2021.

Latest Developments
The Mexican federal environmental department has approved Orla Mining’s environmental-impact statement, or MIA, which is required for the development of the Camino Rojo oxide gold project.

The receipt of the MIA also satisfies one of the key conditions precedent to the drawdown of the remaining $100-million available on the $125-million project finance facility.

CEO Jason Simpson has said that construction can now get under way, keeping the company on schedule to produce its first gold in 2021.

Detailed engineering is now more than 73% complete. In anticipation of the receipt of the final permit, Orla has pre-ordered and committed to more than $50-million for long-lead-time items.

Major contracts for earthmoving and civil work are well advanced and are expected to be finalised soon.

Under Mexico's current Covid-19 legislation, mining and construction are now permitted economic activities, and the Camino Rojo site has been ramping up in compliance with the Mexican Health Authority and company requirements.

Key Contracts and Suppliers
Kappes Cassiday & Associates, supported by Independent Mining Consultants, Resource Geosciences Incorporated, Barranca Group, Piteau Associates Engineering and HydroGeoLogica (feasibility study).

Contact Details for Project Information
Orla Mining, tel +1604 564 1852 or email info@orlamining.com.