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Orla Mining Ltd
Symbol C : OLA
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Close 2018-07-12 C$ 1.38
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Orla Mining files NI 43-101 report for Camino Rojo PEA

2018-07-12 15:31 ET - News Release

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.

PEA summary

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    
Average grade 
Au (g/t)                                                   0.71
Ag (g/t)                                                  13.56    
Contained gold ounces                                   966,000 
Contained silver ounces                              18,517,000
Average recovery 
Au                                                          67%
Ag                                                          15%      
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.

Qualified persons

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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