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TICKERS: OLA; ORRLF

Feasibility Study on Mexico Oxide Project Positive
News Update

Source:

The Canadian firm aims to start construction at the Zacatecas asset in H1/20.

Orla Mining Ltd. (OLA:TSX; ORRLF:OTCMKTS) announced in a news release the positive feasibility study results on its Camino Rojo oxide project in Mexico.

Generally, the study "supports a technically simple, open-pit mine and heap-leach operation with low capital and operating costs providing rapid payback and a strong financial return," the release described. The study was done using a gold price of $1,250 per ounce and a silver price of $17 per ounce.

Specifically, the study outlines a near-surface operation mining 44,000,000 tons of oxide and transitional ore at a throughput rate of 18,000 tons per day.

Annual gold production would be 97,000 ounces of gold at an average grade of 0.73 grams per ton (0.73 g/t). Average annual silver production would be 511,000 ounces at an average grade of 14.2 g/t.

Initial capex is projected to be $123 million, the total operating cost is estimated at $8.43 per ton processed, and the all-in sustaining cost at $576 per ounce of gold produced.

The study projects an after-tax net present value 5% of $142 million and an after-tax internal rate of return of 28.7%, with a 6.8 year life of mine and payback occurring in three years.

The next step for Orla Mining is to complete and submit permitting applications, which it intends to do in the coming weeks. Management aims to commence construction at Camino Rojo in H1/20.

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