Mr. Jason Simpson reports
ORLA MINING FILES FEASIBILIY STUDY TECHNICAL REPORT ON CAMINO ROJO OXIDE GOLD 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 oxide gold project located in Zacatecas state, Mexico. Orla previously released the results of the feasibility study (see
news release dated June 25, 2019) which demonstrate a robust project with low capital intensity, rapid payback and high margins. A summary of key assumptions and results contained in the technical report is presented in the associated table. The technical report is available on SEDAR under the company's profile and on Orla's website.
FEASIBILITY STUDY HIGHLIGHTS
Throughput rate per day 18,000 tonnes
Total ore to leach pad 44.0 M tonnes
Average grade Au/Ag (g/t) 0.73/14.2
Contained gold/silver ounces 1,031,000/20,093,000
Average recovery Au/Ag 64%/17%
Average annual gold production 97,000 ounces
Strip ratio (waste:ore) 0.54
Initial capex $123-million
Avg. LOM operating costs (per tonne of ore processed) $8.43
Total byproduct cash cost (1) ($/oz Au) $515
All-in sustaining cost (AISC) (1) ($/oz Au) $576
Pretax -- net present value (5%) $227-million
Pretax internal rate of return 38.6%
After-tax -- net present value (5%) $142-million
After-tax internal rate of return 28.7%
Payback 3.0 years
(1) Includes royalties payable, byproduct cash cost and AISC are non-IFRS
(international financial reporting standards) measures.
The feasibility study was conducted using $1,250 per ounce gold and $17/oz silver and is expressed in U.S. dollars unless otherwise noted.
The company is finalizing the reports required to submit permit application for the Manifesto de Impacto Ambiental (MIA) and the change of land use (ETJ) permits. Submission of the permit documents to SEMARNAT is expected by the end of August, 2019.
The independent technical report was overseen by Kappes Cassiday & Associates and authored by Carl Defilippi, RM, SME, Michael G. Hester, FAusIMM, Dr. Matthew Gray, PhD, CPG (AIPG), and David Hawkins, CPG (AIPG), each of whom is an independent qualified person under NI 43-101.
Hans Smit, PGeo, chief operating officer of Orla, has reviewed and verified all technical and scientific information contained in this news release and is a qualified person within the meaning of NI 43-101.
About Orla Mining Ltd.
Orla is developing the Camino Rojo project, an advanced gold and silver open-pit and heap leach project, located in Zacatecas state, central Mexico. The project is 100 per cent owned and covers over 200,000 hectares. The amended technical report for Camino Rojo dated March 11, 2019, is available on SEDAR under the company's profile. An NI 43-101 updated technical report supporting the feasibility study presented herein will be available on SEDAR within 45 days of this news release.
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