Commercial Production Declared at Camino Rojo

Orla Mining has declared commercial production at its Camino Rojo Oxide Gold Mine project in Zacatecas. The company expects to generate strong cash flow from its commercial production, which it will use to finance upgrades to increase production.

The announcement came after Orla successfully accelerated mining and processing to sustained production levels above 75 percent of its 18,000t/d designed capacity. On a press release, Orla emphasized that now that it has achieved its main objective, it will focus on improving and optimizing production, as well as exceeding its standard capacities.

“In reaching commercial production at Camino Rojo, we have completed our transformation from explorer through developer to producer in three years. Today, the team will celebrate this success but tomorrow we will focus on how to grow our production,” said Jason Simpson, President and CEO, Orla Mining.

In a previous press release, the company announced that in addition to achieving commercial production at Camino Rojo, its next milestones are metallurgical testing for the Camino Rojo sulphide project, as well as exploration programs in Mexico and Panama.

Currently, Orla Mining is evaluating multiple development scenarios for its sulphide project. The company's three main options are an underground mining operation, an open pit with processing at a sulphide facility to be built at Camino Rojo and an open pit mine with processing at Newmont's Peñasquito plant. The company said that based on previous drilling and testing, all options are still on the table.

Furthermore, in an interview with MBN, Simpson explained that the commercial production’s cash flow will fund exploration programs in Mexico. “For the first time in Orla’s history, we can now afford to do some exploration, since we are producing. Our exploration efforts in 2022 can be classified into two types: expanding the oxide and sulphide deposits and finding new deposits in our concession. As a result, our programs in 2022 will be to expand the oxide project that we just put into production. We will also carry out a second phase of drilling in the larger and deeper sulphide ore body, which lies below the oxide pit.”

The company has an exciting 2022 ahead of it, especially as market conditions allow for a healthy gold price. The company said that as the price of gold has been stable in recent years and international and domestic events are driving up prices, the company will continue to generate strong cash flows, allowing it to pursue its other goals.