VANCOUVER, BC, Sept. 7, 2021 /CNW/ - Orla Mining Ltd.
(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to
announce that the Company has filed a technical report, prepared in
accordance with the disclosure standards under National Instrument
43-101 ("NI 43-101") for its Cerro Quema Oxide Gold Project (the
"Project") located in the Azuero Peninsula, Los Santos Province, Panama. Orla previously announced the results
for the Pre-Feasibility Study (see News Release dated
July 28, 2021), which highlighted
an estimated Project after-tax net present value ("NPV") (5%
discount rate) of US$176 million with
an after-tax internal rate of return ("IRR") of 38% at a gold price
of US$1,600 per ounce. The
detailed technical report is now available on SEDAR and EDGAR under
the Company's profile at www.sedar.com and at www.sec.gov,
respectively. The technical report is now also available on Orla's
website at www.orlamining.com.
The following tables presents the mineral reserve and mineral
resource estimation for the Cerro Quema Oxide Project. Proven and
probable mineral reserves amount to 21.7 million tonnes at 0.80 g/t
gold and 2.18 g/t silver for 0.56 million contained gold ounces and
1.53 million contained silver ounces. The mineral reserve was
estimated based on a gold price of US$1,250 per ounce and a silver price of
US$17 per ounce while the mineral
resource was estimated based on a gold price of US$2,000 per ounce and a silver price of
US$26 per ounce. The July 28, 2021 news release contained a
typographical error in the calculation of gold and silver ounces in
the inferred mineral resource category which has been corrected in
the material change report dated August 9,
2021 and below. Tonnes and grades were correctly stated and
remain unchanged.
Mineral Reserves
Mineral Reserve
Category
|
000's
|
Gold
|
Silver
|
Gold
|
Silver
|
tonnes
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
La Pava Probable
Mineral Reserve
|
15,700
|
0.79
|
2.27
|
400
|
1,148
|
Quema Probable
Mineral Reserve
|
6,000
|
0.83
|
1.95
|
161
|
378
|
Total Probable
Mineral Reserves
|
21,700
|
0.80
|
2.18
|
562
|
1,526
|
Notes:
|
1. The qualified
person responsible for the Mineral Reserves is Jesse Aarsen, P.Eng
of Moose Mountain Technical Services. Jesse Aarsen is independent
of Orla.
|
2. Only Oxide and
Mixed material is included in the Mineral Reserve; all Sulphide
material is treated as waste.
|
3. The minimum
cut-off grade used for ore/waste determination is NSR>=
$6.34/tonne for Oxide and $9.18 for Mixed at the La Pava deposit
and $6.50/tonne for Oxide and $8.35/tonne for Mixed at the Quema
deposit.
|
4. Mineral Reserves
have an effective date of April 22, 2021. All Mineral Reserves in
this table are Proven and Probable Mineral Reserves. The Mineral
Reserves are not in addition to the Mineral Resources but are a
subset thereof. All Mineral Reserves stated above include mining
dilution, but no mining loss.
|
5. Associated
metallurgical gold recoveries have been estimated as 86% for Oxide
at the Quema deposit and 88% for Oxide at the La Pava deposit. Gold
recoveries vary according to grade for Mixed material at both the
La Pava and Quema deposits.
|
6. Associated
metallurgical silver recoveries have been estimated as 15% for
Oxide and 10% for Mixed material at the Quema deposit and 30% for
Oxide and 10% for Mixed material at the La Pava deposit.
|
7. Mineral Reserves
are based on a US$1,250/oz gold price, US$17/oz silver
price.
|
8. Mineral Reserves
are converted from resources through the process of pit
optimization, pit design, production scheduling, stockpiling,
cut-off grade optimization and supported by a positive cash flow
model.
|
9. Rounding as
required by reporting guidelines may result in summation
differences.
|
Mineral Resources
Mineral Resource
Type
|
000's
|
Gold
|
Silver
|
Gold
|
Silver
|
tonnes
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
Oxide
|
|
|
|
|
|
Quema Indicated Mineral
Resource
|
9,305
|
0.67
|
1.97
|
200
|
589
|
Pava Indicated Mineral
Resource
|
21,488
|
0.65
|
2.03
|
451
|
1,402
|
Indicated Mineral
Resource
|
30,793
|
0.66
|
2.01
|
651
|
1,992
|
|
|
|
|
|
|
Mixed
|
|
|
|
|
|
Quema Indicated Mineral
Resource
|
8,367
|
0.72
|
2.08
|
195
|
560
|
Pava Indicated Mineral
Resource
|
17,519
|
0.76
|
2.18
|
428
|
1,228
|
Indicated Mineral
Resource
|
25,886
|
0.75
|
2.15
|
623
|
1,787
|
|
|
|
|
|
|
Total Indicated
Mineral Resource
|
56,679
|
0.70
|
2.07
|
1,274
|
3,779
|
|
|
|
|
|
|
Oxide
|
|
|
|
|
|
Quema Inferred Mineral
Resource
|
2,837
|
0.32
|
2.91
|
29
|
265
|
Pava Inferred Mineral
Resource
|
776
|
0.25
|
1.24
|
6
|
31
|
Inferred Mineral
Resource
|
3,613
|
0.31
|
2.55
|
36
|
296
|
|
|
|
|
|
|
Mixed
|
|
|
|
|
|
Quema Inferred Mineral
Resource
|
1,928
|
0.39
|
3.74
|
24
|
232
|
Pava Inferred Mineral
Resource
|
448
|
0.31
|
1.24
|
4
|
18
|
Inferred Mineral
Resource
|
2,376
|
0.38
|
3.27
|
29
|
250
|
|
|
|
|
|
|
Total Inferred
Mineral Resource
|
5,989
|
0.33
|
2.84
|
64
|
546
|
Notes:
|
1. Mineral Resources
are reported using the 2014 CIM Definition Standards and were
estimated using the 2019 CIM Best Practices Guidelines.
|
2. Mineral Resources
are reported inclusive of Mineral Reserves.
|
3. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
4. The Mineral
Resource has been confined by a "reasonable prospects of eventual
economic extraction" pit using the following assumptions: US
$2,000/oz. Au and US $26/oz Ag; 99.9% payable Au; 98.0% payable Ag;
$1.40/oz Au and $1.20/oz Ag offsite costs (refining, transport and
insurance); a 4% NSR royalty.
|
5. Metallurgical
recoveries are for Pava: 88% Au in oxides, 55% Au in Sulfides, for
Quema: 86% Au in oxides, 55% Au in sulfides, for all deposits: Au
Rec=0.9867*2.7183^(-0.1*%total Sulfur)*100%-13%. Cu recovery in
sulfides is 85% for all deposits, Ag recovery is 30% oxides, 10%
mixed in Pava, Ag recovery is 15% in oxides and 10% in mixed in
Quema.
|
6. Pit slope angles
are 40º.
|
7. The specific
gravity of the deposit has been determined by Alteration Zone and
Core recovery and ranges between 2.07 and 2.62.
|
8. Numbers may not
add due to rounding
|
9. Mineral Resources
have an effective date of December 16, 2020.
|
Qualified Persons
The scientific and technical information in this news release
has also been reviewed and approved by Carl
Defilippi, RM SME; Sue Bird,
M.Sc., P.E.; Jesse Aarsen, P.E.; Denys
Parra, RM SME; Matt Gray,
Ph.D., C.P.G (AIPG), Brent Johnson,
RM SME, P.G.; Lee Joselyn, P.E.; and Wade
Brunham, M.Sc. PWS, R.P.Bio, each of whom is an Independent
Qualified Person under NI 43-101.
About Orla Mining Ltd.
Orla is developing the Camino Rojo Oxide Gold Project, an
advanced gold and silver open-pit and heap leach project, located
in Zacatecas State, Central
Mexico. The project is 100% owned by Orla and covers over
160,000 hectares. The technical report for the 2021 Feasibility
Study on the Camino Rojo Oxide Gold Project entitled
"Unconstrained Feasibility Study NI 43-101 Technical Report on
the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico" dated
January 11, 2021, is available on
SEDAR and EDGAR under the Company's profile at
www.sedar.com and www.sec.gov, respectively. The technical
report is also available on Orla's website at www.orlamining.com.
Orla also owns 100% of the Cerro Quema Project located in
Panama which includes a near-term
gold production scenario and various exploration targets. The Cerro
Quema Project is a proposed open pit mine and gold heap leach
operation. The technical report for the 2021 Pre-Feasibility Study
on the Cerro Quema Oxide Gold Project entitled "Project
Pre-Feasibility NI 43-101 Technical Report on the Cerro Quema Gold
Oxide Project, Province of Los
Santos, Panama"
dated July 27, 2021, is available on SEDAR and EDGAR
under the Company's profile at www.sedar.com and www.sec.gov,
respectively. The technical report is also available on Orla's
website at www.orlamining.com.
Forward-looking Statements
This news release contains certain "forward-looking
information" and "forward-looking statements" within the meaning of
Canadian securities legislation and within the meaning of Section
27A of the United States Securities Act of 1933, as amended,
Section 21E of the United States Exchange Act of 1934, as amended,
the United States Private Securities Litigation Reform Act of 1995,
or in releases made by the United States Securities and Exchange
Commission, all as may be amended from time to time, including,
without limitation, statements regarding the results of the
pre-feasibility study and the anticipated capital and operating
costs, sustaining costs, net present value, internal rate of
return, payback period, process capacity, average annual metal
production, average process recoveries, concession renewal,
permitting of the Project, anticipated mining and processing
methods, proposed pre-feasibility study production schedule and
metal production profile, anticipated construction period,
anticipated mine life, expected recoveries and grades, anticipated
production rates, infrastructure, social and environmental impact
studies, availability of labour, tax rates and commodity prices
that would support development of the Project. Information
concerning mineral resource/reserve estimates and the economic
analysis thereof contained in the results of the pre-feasibility
study are also forward-looking statements in that they reflect a
prediction of the mineralization that would be encountered, and the
results of mining, if a mineral deposit were developed and mined.
Forward-looking statements are statements that are not historical
facts which address events, results, outcomes or developments that
the Company expects to occur. Forward-looking statements are based
on the beliefs, estimates and opinions of the Company's management
on the date the statements are made and they involve a number of
risks and uncertainties. Certain material assumptions regarding
such forward-looking statements were made, including without
limitation, assumptions regarding the price of gold and silver; the
accuracy of mineral resource and mineral reserve estimations;
that there will be no material adverse change affecting the
Company or its properties; that all required approvals will be
obtained, including concession renewals and permitting; that
political and legal developments will be consistent with current
expectations; that currency and exchange rates will be consistent
with current levels; and that there will be no significant
disruptions affecting the Company or its properties. Consequently,
there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements involve significant known and unknown
risks and uncertainties, which could cause actual results to differ
materially from those anticipated. These risks include, but are not
limited to: risks related to uncertainties inherent in the
preparation of pre-feasibility studies, including but not limited
to, assumptions underlying the production estimates not being
realized, changes to the cost assumptions, variations in quantity
of mineralized material, grade or recovery rates, changes to
geotechnical or hydrogeological considerations, failure of plant,
equipment or processes, changes to availability of power or the
power rates, ability to maintain social license, changes to
interest or tax rates, changes in project parameters, delays and
costs inherent to consulting and accommodating rights of local
communities, environmental risks, title risks, including concession
renewal, commodity price and exchange rate fluctuations, risks
relating to COVID-19, delays in or failure to receive access
agreements or amended permits, risks inherent in the estimation of
mineral reserves and mineral resources; and risks associated with
executing the Company's objectives and strategies, including costs
and expenses, as well as those risk factors discussed in the
Company's most recently filed management's discussion and analysis,
as well as its annual information form dated March 29, 2021, available on www.sedar.com and
www.sec.gov. Except as required by the securities disclosure laws
and regulations applicable to the Company, the Company undertakes
no obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors,
should change.
Cautionary Note to U.S. Readers
The disclosure contained or referenced herein uses mineral
reserve and mineral resource classification terms that comply with
reporting standards in Canada, and
mineral reserve and mineral resource estimates are made in
accordance with Canadian NI 43-101 and the Canadian Institute of
Mining, Metallurgy and Petroleum — CIM Definition Standards on
Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended (the "CIM Definition Standards"). Canadian NI
43-101 establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral
projects. These standards differ significantly from
the mineral reserve disclosure requirements of the United States
Securities Exchange Commission (the "SEC") set forth in Industry
Guide 7. Consequently, information regarding mineralization
contained or referenced herein is not comparable to similar
information that would generally be disclosed by U.S. companies
under Industry Guide 7 in accordance with the rules of the SEC
which applied to U.S. filings prior to the current SEC
Modernization Rules (as defined herein). Further, the SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities Exchange Act of 1934
("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules")
and, commencing for registrants with their first fiscal year
beginning on or after January 1,
2021, the SEC Modernization Rules replace the historical
property disclosure requirements included in SEC Industry Guide
7. As a foreign private issuer that files its annual report
on Form 40-F with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. The SEC Modernization Rules
include the adoption of terms describing mineral reserves and
mineral resources that are "substantially similar" to the
corresponding terms under the CIM Definition, but there are
differences in the definitions under the SEC Modernization Rules
and the CIM Definition Standards. Accordingly, there is no
assurance any mineral reserves or mineral resources that the
Company may report as "proven mineral reserves", "probable mineral
reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the mineral reserve or mineral
resource estimates under the standards adopted under the SEC
Modernization Rules. U.S. investors are also cautioned that while
the SEC recognizes "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under the Modernization
Rules, investors should not assume that any part or all of the
mineralization in these categories will ever be converted into a
higher category of mineral resources or into mineral reserves.
Mineralization described using these terms has a greater amount of
uncertainty as to its existence and feasibility than mineralization
that has been characterized as reserves. Accordingly, investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable.
Further, "inferred mineral resources" have a greater amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. Therefore, U.S. investors are also
cautioned not to assume that all or any part of the "inferred
mineral resources" exist. Under Canadian securities laws, estimates
of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
For the above reasons, information contained or referenced herein
regarding descriptions of our mineral reserve and mineral resource
estimates is not comparable to similar information made public by
U.S. companies subject to reporting and disclosure requirements of
the SEC under either Industry Guide 7 or SEC Modernization
Rules
SOURCE Orla Mining Ltd.