Construction 89% Complete
VANCOUVER, BC, Oct. 12, 2021 /CNW/ - Orla Mining Ltd.
(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to
provide a construction update for the Camino Rojo Oxide
Project.
(All amounts are in U.S. dollars unless otherwise
stated)
CAMINO ROJO OXIDE CONSTRUCTION UPDATE
- Camino Rojo construction was 89% complete as of September 30, 2021, on schedule for first pour in
December 2021 and commercial
production in the first quarter of 2022.
- Construction remains on schedule with the main activities
completed during the quarter including:
-
- Ramp up of mining activities in line with plan,
- Mechanical completion of the crushing and conveying system,
reclaim tunnel, overland conveyor, and grasshopper conveyors,
- Commencement of wet commissioning with introduction of ore into
the crushing circuit,
- 98% completion of the Merrill-Crowe plant and refinery,
- Completion of the camp facilities.
Mining and
Processing Totals - Year to Date (September 30,
2021)
|
|
Ore
Mined
|
tonnes
|
757,098
|
Waste
Mined
|
tonnes
|
508,135
|
Total
Mined
|
tonnes
|
1,265,232
|
Ore Mined Au
Grade
|
g/t
|
0.86
|
Total Crushed Ore
Stockpile
|
tonnes
|
511,260
|
Total Crushed Ore
Stockpile Au Grade
|
g/t
|
0.86
|
Ore
Stacked
|
tonnes
|
220,240
|
Stacked Ore Au
Grade
|
g/t
|
0.87
|
- Construction activities planned for the fourth quarter will
primarily focus on completion of dry commissioning followed by wet
commissioning and leaching to achieve the first gold pour in
December 2021. This includes
commissioning of the crushing, conveying, and stacking equipment,
application of cyanide on the heap leach pad, and commissioning of
the Merrill-Crowe plant and refinery. (Dry commissioning includes
pre-operational testing of the processing circuit without ore while
wet commissioning includes the introduction of ore material).
- Camino Rojo capital expenditures totalled $24.3 million in the third quarter and total
$106.3 million for the Project to
date (September 30, 2021), out of a
total project capital expenditure estimate of $134.1 million.
- Project capital committed totalled $120.2 million at the end of the third quarter
with expenditures and commitments to date in line with
estimates.
- Cash balance of $50.7 million at
September 30, 2021.
- Project to date safety and environmental performance have been
excellent and strict COVID-19 measures implemented at Camino Rojo
have allowed construction progress to continue uninterrupted.
- To date, of all employees and contractors at Camino Rojo, 98%
have received at least one dose of COVID-19 vaccine and 75% have
received two doses of COVID-19 vaccine.
"The march towards first gold pour continues at Camino Rojo and
the team is focused on achieving this important milestone by year
end", said Jason Simpson, President
and Chief Executive Officer of Orla Mining. "While the rate of
construction advance has been impressive, I am most encouraged by
the diligence exhibited by our team in maintaining a safe and
healthy operation during this intensive and challenging
period".
Several images highlighting construction progress at the Camino
Rojo Project are shown below and additional photographs are
available at Camino Rojo Progress Photos.
Qualified Persons Statement
The scientific and technical information in this news release
has been reviewed and approved by Mr. J. Andrew Cormier, P. Eng., Chief Operating Officer
of the Company, who is the Qualified Persons as defined under NI
43-101 standards.
THIRD QUARTER 2021 CONFERENCE CALL
Orla expects to release its third quarter 2021 financial results
on November 12, 2021 and will host a
conference call on November 15, 2021,
at 10:00 AM, Eastern Time, to provide
a corporate update:
Dial-In Numbers:
Conference ID: 7591045
Toll Free: (833) 499-1157
International: (236) 712-2875
Webcast: https://event.on24.com/wcc/r/3409186/080E351BF7079A7B45EB3BA688FCC837
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 timing and cost of
construction for the Camino Rojo Project, including the timing of
first pour and the commencement of commercial production, the
estimated total capital expenditure and planned construction
activities. 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 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 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 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.