Orla Mining Reports Promising Gold Production at Camino Rojo
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Orla Mining Reports Promising Gold Production at Camino Rojo

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Fri, 04/08/2022 - 17:00

Orla Mining reported its 1Q22 gold production from the Camino Rojo Oxide project, recently commissioned for commercial production. The company said that since it had a successful commissioning period, the 2022 gold production guidance remains on track.

In a press release, Orla announced that its Camino Rojo project produced 23,031oz of gold during the first quarter of the year. Furthermore, the company highlighted that it achieved a processing throughput record in March, via a daily average of 17,444 tons per day or 97 percent of the project’s nameplate capacity. Meanwhile, Camino Rojo’s average daily stockpile throughput for 1Q22 was 15,917 tons per day. Orla highlighted that it expects to reach its full capacity of 18,000 tons per day in 2Q22.

“Once again, our team in Mexico has delivered on two significant milestones: our first full quarter of gold production and achieving commercial production on time. The team remains focused on consistent performance and execution and we are well-positioned to deliver on our 2022 guidance,” said Andrew Cormier, COO, Orla Mining. 

Orla highlighted that 1Q22 was an important period for the company as it completed construction activities at Camino Rojo, which included the installation of a heap leach liner, the placement of overliner material, commissioning of overland conveyors, the construction of the runway and the completion of the rainwater diversion system. The company emphasized that these activities helped it to accelerate mining and processing to sustained production levels, allowing it to declare commercial production at Camino Rojo on April 1. Consequently, Orla stressed that its full-year 2022 gold production forecast of between 90,000 and 100,000oz remains in place.

Likewise, the company highlighted that its next milestones include metallurgical results of the Camino Rojo Sulfide Project, exploration programs and 1Q22 financial results. For the Sulfide Project, Orla is currently evaluating three development scenarios: 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.

As for Orla’s exploration efforts, the company said it will seek to expand oxide and sulfide deposits and find new deposits within its concession. In 2021, Orla established a new drill orientation that intersected wide zones of higher-grade material. Therefore, the company intends to complete another drilling phase in 2022, including this optimized orientation in another area of the deposit. “This is an exciting year for Orla because, for the first time, we are going to be able to work outside known deposits and enter the larger part of the land package to complete regional exploration. The team has already completed the targeting program and has identified several very promising targets. We plan to drill those targets and see more of Camino Rojo’s potential,” Jason Simpson, President, CEO and Director, Orla Mining, told MBN.

Photo by:   Orla Mining

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