Orla Mining’s Camino Rojo Achieves Construction Milestone

Orla Mining reported the start of earth moving activities at its Camino Rojo gold project in Zacatecas. Camino Rojo is the first step in Orla’s strategy to become a diversified mining company. “The start of earth moving on site marks another important milestone in the development of the project, made possible through the collective efforts of our team and stakeholders. Project advancement continues in a controlled manner as we focus on maintaining the health and safety of our personnel,” stated Jason Simpson, President & CEO, in a press release.

The company noted that all permit conditions have been satisfied for site activities to begin, including placing of an environmental bond. Major contracts for earth moving and civil works have been awarded and detailed engineering is 90 percent complete. Current activities include mobilization of the earthworks contractor, installation of the construction camp and offices, flora and fauna rescue and site fence erection. Construction of the power line to site continues ahead of schedule, reducing some of the diesel generation required during the first year of production. Process plant equipment has started to arrive on site, including crusher and conveyor equipment, Orla Mining added.

The company owns the Cerro Quema project in Panama in addition to Camino Rojo. The former project’s PFS was completed in 2014: its P&P reserves are 500,000 gold oz, while M&I resources amount to 700,000 gold oz.

During an interview with MBN, Simpson explained why the company chose the Zacatecas project as its cornerstone. “We are building a mining company with assets in various countries and we selected Mexico first for a number of reasons. Our team has a history of success in Mexico: it believes in the country as a mining jurisdiction. Camino Rojo is a strong project and it is located in Zacatecas, a state that understands and supports mining. As we build a mining company, our first mine has to be the least problematic. We are confident that Mexico provides the right conditions for developing a mine smoothly,” he said.

Under Mexico's current COVID-19 legislation, mining and construction are permitted economic activities. Orla highlighted that Camino Rojo site has been ramping up in strict compliance with Mexican health authorities. Also, the company has implemented a strict COVID-19 protocol, including rigorous screening and testing programs. The company is closely monitoring the potential impacts from the pandemic on areas including equipment delivery and logistics, construction costs and schedule, as well as community and government relations.