Orla Mining Will Invest US$100 Million in Zacatecas
The Ministry of Economy of Zacatecas confirmed that Orla Mining will invest US$100 million in the Camino Rojo project, located in Mazapil. With the new investment, the company seeks to strengthen local suppliers to boost the mining sector.
The Governor of Zacatecas, David Monreal; the Minister of Economy of Zacatecas, Rodrigo Castañeda; Juan Carlos Ostolaza, Head, the Center for Competitiveness of Mexico (CCMX), and Jason Simpson, CEO, Orla Mining signed an agreement to strengthen industry value chains.
Through this new agreement, CCMX will provide training to small and medium-sized local companies to improve their processes and help them to become direct suppliers of Orla Mining. The objective of the new agreement is for these small companies to reach the standards required by the mining sector to generate diversified regional development.
During the signing, Simpson highlighted that since the company’s arrival in 2020, Orla has sought to promote the development of Zacatecas. "It is the best thing for our business and the best thing for the state. We will continue to invest to grow locally," Simpson said.
Currently, 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 109,596 oz 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, the 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.
The company announced its exploration budget for 2023 is US$35 million, of which Camino Rojo will receive US$22 million. Confirmation drilling of the oxide pit layback, resource and reserve conversion, Camino Rojo sulfide drilling for future planning and drill testing of regional targets will be the main focuses at Camino Rojo. The exploration program started in early 2023 and will last until the end of the year.