The Mexican federal environmental department has approved Toronto-listed 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 says construction can now get under way, keeping the company on schedule to produce its first gold in 2021.
Detailed engineering is now over 73% complete and 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 in the coming weeks.
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.
A feasibility study estimated that Camino Rojo will produce an average of 97 000 oz/y of gold and 511 000 oz/y of silver, over 6.8 years. The study estimated initial capital expenditure of $123-million.