Orla completes study on Camino Rojo in Mexico

Orla Mining’s (TSX: OLA) Camino Rojo open pit project in Zacatecas, Mexico, would produce 97,000 oz. gold annually over seven years and could be built for US$123 million, a new feasibility study concludes. The study envisions a simple heap leach operation that could repay initial capex in three years at precious metal prices of US$1,250 per oz. gold and US$17 per oz. silver, and would deliver an after tax net present value at a 5% discount rate of US$142 million and an internal rate of return of 28.7%. Camino Rojo, 3 km from a four-lane highway and 190 km from the city of Zacatecas, would be the company’s first mine, and would operate at a throughput rate of 18,000 tonnes per day, with total by-product cash costs of US$515 per oz. gold and all-in sustaining costs of US$576 per oz. gold. Average gold recoveries are estimated at 64%. Orla envisions construction starting in the first half of 2020, once all the permits are received and project financing is in place, with first production in mid-2021. Continue reading at The Northern Miner.