Orla Mining reported its positive 3Q22 production and financial results from the Camino Rojo Oxide project, recently commissioned for commercial production. The company announced that the project's continuously improving production results have given it the confidence to increase its annual production guidance.
Orla announced that its Camino Rojo project produced 28,876oz of gold during 3Q22. Additionally, the company highlighted that its 2022 gold production guidance increased from between 90,000 and 100,000oz to between 100,000 and 110,000oz. The project’s mining rate also continues to increase, averaging 44,911t/d. In addition, the project processing throughput in 3Q22 had a daily average of 19,200 tons, exceeding the project’s nameplate capacity of 18,000t/d.
The company also announced that it delivered solid financial results in 3Q22. Its total cost of sales was US$12 million, while the cash ended at US$25.2 million. The company also reported that its adjusted profit for 3Q22 was US$5.7 million, and its net profit was US$8.9 million.
Orla also reported on the progress of the metallurgical tests of the Camino Rojo Sulfide project, which aim to confirm the possibility of alternate development routes. The company reported that its Phase 2 drilling program continues to strengthen the geological model and confirm the continuity of gold mineralization in the project. Orla highlighted that 10 of the 15 diamond holes in the 8750m-drill program have been completed, confirming its potential for an independent processing option, which would allow Orla to retain 100 percent ownership of the project. The company announced that results from the remaining holes are expected in 2023.
The company announced that further details of the Phase 3 drilling program will also be provided in 2023. The new phase will focus on exploring the Caracol-hosted mineralization and testing the extension of the deposit. Results from the new drilling phase are expected to strengthen confidence in an underground mining option in the Preliminary Economic Assessment (PEA).
Additionally, Orla announced that regional exploration work at the Camino Rojo oxide mine was 40 percent complete as of September 30, 2022. The company explained that it is awaiting drilling permits to explore its main targets. However, it expects the drilling to be carried out in 4Q22.
In the press release, Orla explained that the company's initial exploration budget for 2022 was US$15 million. Ten million were assigned to Mexico and US$5 million to Panama. However, due to the success of the exploration programs and the recent acquisition of Gold Standard in Nevada, it has increased its exploration spending for 2022 to US$18.0 million.