Camino Rojo’s Promising Year is on TrackBy Paloma Duran | Mon, 05/17/2021 - 11:15
Orla Mining has published its 1Q21 results at Camino Rojo Oxide Project (Camino Rojo) in Zacatecas, as well as an update on its construction. The company also highlighted the key areas it will focus during 2Q21 and some of its plans for the remaining of the year.
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 for 2021.
Among the company's highlights for 1Q21 are the 43,000 person-hours worked at Camino Rojo with no lost time incidents, a continuous progress of Camino Rojo development that includes earth moving, concrete poring and structural and mechanical installations.
In addition, Orla announced that the engineering work at Camino Rojo is 95 percent complete, and its construction is at 22 percent. The project capital for equipment and contracts was US$104.6 million at the end of 1Q21 and increased to US$107.0 million on April30. Meanwhile, its capital investments totaled US$ 5.3 million in 1Q21 and US$ 4.3 million on April 30.
The company made a US$25 million payment to Fresnillo, which is the first of three staged payments agreed in the Layback Agreement. Orla announced that it accessed the third and final US$50 million of the Project Finance Facility in April, which will be used to further develop Camino Rojo.
“We have carried great momentum into the 1Q21, and I am heartened with the impressive construction progress being made at Camino Rojo. In tandem with project construction, we continue to advance the other assets in our portfolio. Despite the challenges posed by the pandemic, our teams have managed admirably in keeping our people and communities safe while creating value for our stakeholder,” said Jason Simpson, President and CEO of Orla Mining.
Orla's community activities during 1Q21 included the donation of scholarships and food to the communities of El Berrendo and San Francisco de los Quijano. Orla has sought to foster local employment opportunities and, as a result, for Phase 2 of the construction of a local community center, Orla is working closely with local service providers to ensure their participation.
Meanwhile, in community relations, Orla has maintained communication with the communities to understand how the company can help and support them in these difficult times. Due to COVID-19, Orla has reduced direct contact with communities. However, the company has made it a priority to maintain a close relationship with them. Recently, the company helped vaccinate people over the age of 60.
Orla also highlighted in the press release that it is moving forward in multiple development scenarios parallel on the Sulphide Project, which has 7.3 Moz of gold in measured and indicated mineral resource categories. Among the scenarios Orla is evaluating are “an underground option with processing at Camino Rojo, an open-pit option with processing at Camino Rojo, and an open-pit option with processing at the Peñasquito plant in Newmont." In addition, Orla expects to complete a PEA by the end of 2021 to further develop the project.
In April, the 6,000m drilling program was completed at the Camino Rojo sulphide mineral resource. Its main objective was to learn more and gather information about continuity and geometry of the higher-grade mineralization to have new study material. The results are being reviewed and will be used for the geological modeling and definition of metallurgical compounds during 2Q21.