Orla Mining could invest MX$1.2 billion (US$68.6 million) in the Camino Rojo project, located in Mazapil, Zacatecas. While the new investment is yet to be confirmed, it has significant potential to benefit the state population and further develop the region.
In a meeting held between the Governor of Zacatecas, David Monreal Avila, and representatives of Orla Mining: Juan Rafael Sanchez Campos, General Director, Camino Rojo; Fernando Velázquez Ortega, Environmental and Safety Manager; and Mauricio Heiras Garibay, Legal Representative, Orla Mining, it was announced that the mining company is seeking to increase its operations in Zacatecas.
Monreal emphasized that the priority of his government is to generate wealth and development in Zacatecas, stressing that the investments made in the state have legal certainty and security. The state government said that although the new investment was discussed, it has not yet been confirmed. "However, if the expansion of the Canadian capital company comes through, the benefit will not only be for the company, but also for the population of the semi-desert,” said the government of Zacatecas in a press release.
It was also reported that, so far in 2023, Camino Rojo has invested MX$12.4 million in Zacatecas, benefiting the state population. "The MX$1.8 million dome being built in the community of El Berrendo stands out. Also, the MX$10 million for the equipment of a drinking water well in San Tiburcio and a rainwater storage plan currently in process, with an estimated investment of MX$600 million."
Zacatecas is the leading producer of silver, lead and zinc, as well as the second largest producer of gold and copper in Mexico. In 2022, the Camino Rojo mine achieved its increased production forecast of between 100,000 and 110,000oz, producing 109,596oz of gold. In addition, Orla had a cash position at the end of 2022 of US$96.6 million and a net increase of US$7.5 million in 4Q22. “2022 was a defining year for Orla as we made the successful transition from developer to producer. In 2023, cash generation from the high-margin Camino Rojo Mine will be invested into our prospective growth pipeline, local communities, paying taxes and strengthening our balance sheet to the benefit of all our stakeholders,” said Simpson.
The Camino Rojo mine is expected to produce between 100,000 and 110,00oz of gold in 2023. The average daily ore processing throughput is anticipated to be above 18,000t/d, while the average mine production is anticipated to be above 40,000t/d.