Orla Mining's Camino Rojo Reaches Remarkable Production Levels
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Orla Mining's Camino Rojo Reaches Remarkable Production Levels

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Fri, 07/15/2022 - 12:12

Orla Mining reported its positive 2Q22 gold production from the Camino Rojo Oxide project, recently commissioned for commercial production. Orla highlighted that it remains confident of reaching its 2022 gold production guidance and announced the next milestones that will strengthen the company and its projects.

Orla announced that its Camino Rojo project produced 25,672oz of gold during 2Q22. Furthermore, the company highlighted that it remains on track to reach its 2022 gold production guidance of between 90,000oz and 100,000oz of gold. The project processing throughput in 2Q22 had a daily average of 18,245 tons, exceeding the project’s nameplate capacity of 18,000t/d.

Orla highlighted that the next milestones it expects to reveal are the company's 2Q22 financial results, the closing of the acquisition of Gold Standard Ventures, the results of its exploration programs in Mexico and the Preliminary Economic Assessment (PEA) for the Camino Rojo Sulphides Project.

In April, Orla Mining declared commercial production at its Camino Rojo project, after it successfully accelerated mining and processing to sustained production levels above 75 percent of its 18,000t/d designed capacity. In a previous press release, the company announced that in addition to achieving commercial production at Camino Rojo, its next objective was metallurgical testing for the Camino Rojo sulphide project. The Phase 1 program included tests on grinding features, susceptibility to cyanidation, choice of flotation and pressure oxidation. In addition, a geometallurgical model was developed, integrating historical information as well as new geological, geochemical, mineralogical and recovery data. This program confirmed  that numerous processing options could lead to a successful development.

In an interview with MBN, Jason Simpson, President and CEO, Orla Mining said there is 9Moz of gold in sulfide form below the company's oxide pit. “This is a tremendously important way to enhance Orla’s value. However, this will require a new processing plant and this is a potential future investment in Mexico that we want to achieve.  Nevertheless, this is a long-term plan. The first step is to develop the oxide project and bring it to full capacity. Then we will work to optimize it and try to find more gold. The future for Orla in Mexico is very bright.”

In the remainder of the year, Orla plans to complete an 8,250m drilling program, which is part of the Phase 2 Sulphide Project program that aims to strengthen the geological model and confirm the continuity of areas with gold mineralization. The program has already started and is to examine from 15 drill holes, expected to be completed in 2H22.

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