Vancouver-based Orla Mining has released prefeasibility study (PFS) results for its Cerro Quema oxide gold project, which delivered an aftertax net present value of $176-million and an internal rate of return of 38%.
The study considers a 10 000 t/d operation, which will produce an average of 81 000 oz/y of gold and 66 000 oz/y of silver over a six-year mine life.
Initial capital expenditure for Cerro Quema is estimated at $164-million.
The latest PFS is an update to the 2014 study and is based on a new mineral reserve estimate of 21.7-million tonnes at a gold grade of 0.80 g/t and a silver grade of 2.18 g/t, for total mineral reserves of 0.56-million ounces of gold and 1.53-million ounces of silver.
This compares to 19.7-million tonnes at a gold grade of 0.77 g/t for a mineral reserve estimate of 0.49-million ounces in the 2014 PFS, representing an increase of about 15% in contained ounces.
"We believe that our assets in Panama represent an opportunity for organic growth in our business," stated president and CEO Jason Simpson.
He added that the completion of the PFS provided a pathway towards continued engineering, project advancement, and a future construction decision.
"We also believe there is significant opportunity for project optimisation and mineral resource expansion in Panama and work is just beginning."