2021: A Promising Year for Orla Mining’s Camino Rojo ProjectBy Paloma Duran | Tue, 04/20/2021 - 11:15
Orla Mining reported favorable results in 2020, despite COVID-19 and its impact on the sector. Nevertheless, the company’s Camino Rojo project in Zacatecas made substantial progress, with further development to increase its potential planned for 2021.
Camino Rojo boasts 10Moz of gold mineral resources, as well as low capital and operating costs. In addition, Orla has developed a close relationship with its surrounding communities, making the project even more attractive. Camino Rojo’s main milestones achieved so far include completion of its project financing, advancement of its engineering, procurement and permitting processes and completion of the Layback Agreement with Fresnillo, where construction has already begun.
In an interview with MBN, Sergio Sáenz, General Manager of Minera Camino Rojo, said that despite the challenges posed by the pandemic, Orla achieved its goals in 2020. “This was only possible because we had a team of dedicated people willing to go the extra mile to achieve our objectives.”
Currently, the detailed engineering of Camino Rojo is 94 percent complete, the relocation of flora and fauna is 97 percent finished, and clearing and grubbing is at 91 percent. Furthermore, Camino Rojo’s feasibility study, published in January, showed that the layback enlarged the oxide pit and as a result, there was a 54 percent increase in contained gold ore reserves, which will extend the mine’s life by three and a half years, compared to the expectations in the 2019 feasibility study.
"We are now working on our next objective, which is to build a mine and produce the first metal this year," said Sáenz. Additionally, the company is developing a drilling program at Fresnillo’s property to update the mineral reserve estimate and perform a development scenario analysis on the large sulphide resource for PEA by the end of 2021. Exploration and targeting will be a developing activity for Orla, for which it has allocated a budget of US$4 million for its Mexican asset.
Orla Mining is developing the Camino Rojo project, a high-quality, advanced oxide heap leach project in a low-risk jurisdiction. The company emphasizes a systematic approach to project development and strong shareholder returns.