Camino Rojo Gold Reserves Increase by 54 Percent By Paloma Duran | Wed, 01/13/2021 - 18:11
Orla Mining announced the results of a feasibility study on its Camino Rojo oxide gold project located in Zacatecas. The study showed an increase of 54 percent in its gold reserves and a 3.5-year extension to the mine’s life.
Orla’s Camino Rojo project hosts 9.46Moz of gold in the M&I categories and 1.70Moz in the Inferred category. The company plans to start production by the end of 2021, producing 1.70Moz of gold per year from oxide resources, reported MBN.
Jason Simpson, President and CEO of Orla, said the updated feasibility study demonstrates an increase in gold, mine life and cash flows. He explained that the project has been improved by the efforts of Orla’s workforce and that the company seeks to continue optimizing the assets as the construction and production of the mine begins.
The study shows some benefits from the pit expansion that was agreed in the Layback Agreement with Fresnillo on Dec.21, 2020, according to a company’s press release. Under the terms of the agreement, Fresnillo allows Orla to expand the Camino Rojo oxide pit within Fresnillo’s mineral concession for US$62.8 million.
In an interview with MBN, Simpson said the extension of the project would also benefit Fresnillo and that both parties recognize the great potential of the project and agree that it should be shared. Currently, the Layback Agreement is still awaiting the approval of the Federal Competition Commission (COFECE).
Orla explained that the feasibility study has increased the size of the open pit, heap leach pad and the mine waste dump, which were expected in the initial design of the project. “The new mineral reserve includes proven and probable mineral reserves of 67.4 million tons at a gold grade of 0.73g/t and a silver grade of 14.5g/t, for total mineral reserves of 1.59Moz of gold and 31.5Moz of silver”, according to the press release.
M&I mineral resources remained constant at 353.4 million tons at 0.83g/t gold and 8.8g/t silver, which estimate 9.46Moz of gold and 100.4Moz of silver. Meanwhile, the inferred mineral resources are 60.9 million tons at 0.87g/t gold and 7.4g/t silver, which estimate 1.70Moz of gold and 14.5Moz of silver.
Orla announced its next steps include working on a Change of Land Use permit to expand the pit, while obtaining other permits necessary to increase the extraction of gold. Moreover, the company explained that Orla will carry out several works such as the drilling of 2,500m, detailing QA/QC, and adding Orla’s geological and resource models to Fresnillo’s data to study the M&I mineral resource category on Fresnillo’s concession.