Mr. Marc Prefontaine reports
ORLA FILES PRELIMINARY ECONOMIC ASSESSMENT TECHNICAL REPORT ON CAMINO ROJO PROJECT
Orla Mining Ltd. has filed a technical report, prepared in accordance with National Instrument 43-101, for its 100-per-cent-owned Camino Rojo project located in Zacatecas state, Mexico. Orla previously released the results of the preliminary economic assessment (PEA) in its May 29, 2018, news release, which included a summary of all assumptions and key results contained in the technical report.
The independent report dated June 19, 2018, titled "Preliminary Economic Assessment, NI 43-101 Technical Report on the Camino Rojo Gold Project -- Municipality of Mazapil, Zacatecas, Mexico," was completed by Kappes, Cassiday & Associates (KCA) and provides details and supporting disclosure to the information contained in the company's news release issued on May 29, 2018. The technical report is available under the company's profile on SEDAR.
The mineral resource at Camino Rojo and the PEA support a technically simple open-pit mine and heap-leach operation that offers low capital and operating costs, rapid payback, and strong financial performance. The PEA is based on near-surface oxide and partly oxidized (transitional) material within the overall resource, all located within Orla mineral concessions. Key highlights are summarized in the attached table.
PEA highlights Base case ($ in USD)
Pretax net present value (5%) $231-million
Pretax internal rate of return 38.1%
After-tax net present value (5%) $121-million
After-tax internal rate of return 24.5%
Payback 3.3 years
Production rate per day 18,000 tonnes
Total material to leach pad 42.5M tonnes
Au (g/t) 0.71
Ag (g/t) 13.56
Contained gold ounces 966,000
Contained silver ounces 18,517,000
Average annual gold production 97,500 ounces
Strip ratio 0.58
Initial capex $125-million
Average LOM production costs
(per tonne of material processed) $8.02
Total byproduct cash cost ($/oz Au) $499
All-in sustaining cost ($/oz Au) $555
Gold price (US$/oz) $1,250
Silver price (US$/oz) $17.00
The PEA is preliminary in nature and includes the use of inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
The technical information in this news release has been reviewed and approved by Carl Defilippi, RM SME, Michael G. Hester, FAusIMM, and Dr. Matthew Gray, PhD, CPG, each of whom is an independent qualified person under NI 43-101 standards.
About Orla Mining Ltd.
Camino Rojo is an advanced gold and silver project located in Zacatecas state, central Mexico. The project is 100 per cent owned and covers over 200,000 hectares. Access and infrastructure are excellent with a paved highway and power line nearby. Orla also owns 100 per cent of the Cerro Quema project in Panama, which includes a near-term gold production scenario and various exploration targets.
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