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Orla Mining Ltd
Symbol C : OLA
Shares Issued 185,624,510
Close 2019-09-09 C$ 1.59
Recent Sedar Documents

Orla Mining hires M3 for EPCM at Camino Rojo

2019-09-09 07:33 ET - News Release

Mr. Jason Simpson reports

ORLA MINING AWARDS EPCM CONTRACT FOR CAMINO ROJO TO M3 ENGINEERING

Orla Mining Ltd. has awarded the engineering, procurement and construction management (EPCM) contract for the Camino Rojo oxide gold project located in Zacatecas state, Mexico, to M3 Engineering & Technology Corp. M3 is a full-service EPCM firm headquartered in Tucson, Ariz., and has provided services to over 10,000 projects for about 1,000 clients in its 33-year history. Work on the Camino Rojo project will be undertaken out of the M3 office in Hermosillo, Mexico, with senior review and support from the Tucson, Ariz., office. M3 will be responsible for detailed engineering, construction planning and execution, contractor management and cost control for the project under the auspices of Orla management. Orla expects to begin engineering work by mid-September. The selection of M3 and commencement of any EPCM work are subject to entering into a definitive agreement with M3.

"M3 has a wealth of engineering knowledge and with its extensive experience in Mexico, it is well suited to design and build the Camino Rojo project on time and on budget," stated Jason Simpson, president and chief executive officer of Orla. "We look forward to commencing detailed engineering work by mid-September as we work with M3 to build a high-quality project that begins to produce gold in mid-2021."

As detailed in the June 25, 2019, news release and subsequently filed technical report, the Camino Rojo oxide project is a robust project with low capital intensity, rapid payback and high margins consisting of an 18,000-tonne-per-day heap-leach open-pit operation. An estimated 44.0 million tonnes grading 0.73 gram per tonne gold and 14.2 g/t silver is expected to be processed during a 6.8-year mine life. Gold production is expected to average 97,000 ounces of gold per year at an estimated all-in sustaining cost of $576 (U.S.) per ounce of gold.

Permitting

Orla has submitted the permit applications to SEMARNAT for the Manifesto de Impacto Ambiental (MIA) and the change of land use (ETJ) permits at the end of August. The legislated timelines for the review of properly prepared MIA and ETJ applications and mine operating permits for a project that does not affect federally protected biospheres or ecological reserves are 120 working days and 105 working days, respectively, which can be completed concurrently.

Financing

Discussion are well under way with various lenders and financiers and Orla continues to progress according to schedule in developing the optimum structure to finance the development of the Camino Rojo oxide project.

Qualified persons

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 National Instrument 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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