85% of Nameplate Stacking Capacity Achieved in
January
VANCOUVER, BC, Feb. 16, 2022 /CNW/ - Orla Mining Ltd.
(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to
provide an operational update for the Camino Rojo Oxide Mine.
(All amounts are in U.S. dollars unless otherwise
stated)
CAMINO ROJO OXIDE MINE OPERATIONAL UPDATE
- Camino Rojo Oxide Mine poured first gold on December 13, 2021. Gold production totalled 2,422
ounces in 2021 and 6,263 ounces January
2022.
- Commissioning activities are substantially complete; mining and
processing throughput rates and availabilities are in-line with the
ramp-up plan. The Company is targeting declaration of commercial
production and release of 2022 production and cost guidance in the
first quarter of 2022.
- The average daily stacking throughput for January was 15,210
tonnes per day or 84.5% of nameplate capacity of 18,000 tonnes per
day. Process recoveries to date are in line with the metallurgical
recovery model.
Mining and
Processing Totals
|
|
FY
2021
|
January 2022
|
Ore Mined
|
Tonnes
|
2,058,041
|
632,149
|
High
Grade
|
Tonnes
|
1,708,622
|
447,730
|
Low
Grade
|
Tonnes
|
349,419
|
184,420
|
Waste Mined
|
Tonnes
|
2,049,703
|
270,325
|
Total Mined
|
Tonnes
|
4,107,744
|
902,475
|
Strip Ratio
|
w:o
|
1.00
|
0.43
|
Ore Mined Gold
Grade
|
g/t
|
0.71
|
0.56
|
High
Grade
|
g/t
|
0.78
|
0.65
|
Low
Grade
|
g/t
|
0.36
|
0.37
|
|
|
|
|
Ore Crushed
|
Tonnes
|
954,661
|
428,333
|
Ore Stacked (including
overliner)
|
Tonnes
|
1,188,328
|
571,683
|
Stacked Ore Gold
Grade
|
g/t
|
0.74
|
0.71
|
Gold Poured
|
Oz
|
2,422
|
6,263
|
|
|
|
|
Daily Stacked
Throughput Rate – Average*
|
Tpd
|
9,955
|
15,210
|
Daily Stacking
Throughput / Nameplate Capacity
|
%
|
55.3%
|
84.5%
|
Total Crushed Ore
Stockpile**
|
Tonnes
|
473,784
|
344,730
|
Total Crushed Ore
Stockpile Gold Grade
|
g/t
|
0.87
|
0.86
|
Total ROM Ore Stockpile
(High and Low Grade)
|
Tonnes
|
395,995
|
585,516
|
Total ROM Ore Stockpile
(High and Low Grade)
|
g/t
|
0.42
|
0.39
|
*Average stacking rate
calculation excludes stacked overliner material (272kt in 2021, and
100kt in January 2022).
|
**Crushed ore stockpile
includes crushed ore in the live ore cone, crushed unplaced
overliner, and stockpiled ore fines.
ROM stockpile includes low-grade and high-grade ore material yet to
be crushed.
|
Camino Rojo Stacking Tonnes per Day
- During the month of January, the operations mined 447,730
tonnes of ore at an average gold grade of 0.65 g/t. To date, mined
block model ore tonnes and grade are reconciling to within 0.5% of
the block model. Since the commencement of mining operations, a
considerable amount of additional mined material modelled as waste
has converted to ore and was mined and crushed or stockpiled
(737,000 tonnes of ore at an average gold grade of 0.68 g/t and
490,000 tonnes of low-grade ore at an average gold grade of 0.27
g/t).
- Camino Rojo project construction was 99% complete as of
January 31, 2022, with only punch
list activities remaining to be completed. In December and January,
the following construction activities were completed:
-
- Dry and wet commissioning of the crushing and conveying
circuits as well as the Merrill-Crowe plant.
- Installation of heap leach liner in cell two and event pond,
placement of overliner material on cell two of the heap leach,
commissioning of the third and final overland conveyor.
- Construction of the airstrip.
- Camino Rojo capital expenditures are $116.8 million for the project to date as of
January 31, 2022. The current project
estimate at completion totals $134.1
million, consistent with the total project capital
expenditure estimate, and the remaining project spend will occur in
the first half of the year. The project estimate at completion
includes $3.5 million in unallocated
contingency that is not forecasted to be spent. Management,
therefore, anticipates the Camino Rojo Oxide Project to be
completed within the total project capital estimate.
- Total expenditures related to working capital and initial fills
for the project totalled $9.8 million
as at December 31, 2021, in-line with
the initial budget. As of January 1,
2022, all working capital items are accounted for as
operating costs.
- Since the first gold pour on December
13, 2021, to January 31, 2022,
the Company has generated $10.2
million in gold and silver sales. The Company had a cash
balance of $20.5 million at
December 31, 2021, and $20.8 million at January
31, 2022.
- Operational safety and environmental performance continues to
be excellent and strict COVID-19 measures implemented at Camino
Rojo have allowed an uninterrupted operational ramp up.
- To date, of all employees and contractors at Camino Rojo, 99%
have received at least one dose of COVID-19 vaccine and 95% have
received two doses of COVID-19 vaccine.
- At the end of January 2022,
Camino Rojo workforce totalled 190 employees with 100% of
individuals from Mexico and 56%
from the local surrounding communities.
"Now that we have poured gold and begun the transition to
producer, the team remains focused on achieving steady state
operations," said Jason Simpson,
President and Chief Executive Officer of Orla Mining. "We look
forward to announcing commercial production and achieving project
completion on schedule and on budget."
UPCOMING MILESTONES
- Achieving commercial production at Camino Rojo Oxide Mine
- 2022 production and cost guidance
- Metallurgical results for Camino Rojo Sulphides Project
About Orla Mining Ltd.
Orla is operating the Camino Rojo Oxide Gold Mine, a gold and
silver open-pit and heap leach mine, located in Zacatecas State,
Central Mexico. The operation 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 Cerro Quema located in Panama which includes a near-term gold
production scenario and various exploration targets. Cerro Quema is
a proposed open pit mine and gold heap leach operation. The
technical report for the Pre-Feasibility Study on the Cerro Quema
oxide gold project entitled "Project Pre-Feasibility
Updated NI 43-101 Technical Report on the Cerro Quema
Project, Province of Los Santos,
Panama" dated January 18, 2022, 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 Camino Rojo Project,
including the timing of the commencement of commercial production,
timing of release of 2022 production and cost guidance, the
estimated total and remaining capital expenditure, planned
construction activities and the Company's upcoming milestones.
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.