Name of the Project
Camino Rojo oxide gold project.

Location
Zacatecas, in Mexico.

Project Owner/s
Orla Mining.

Project Description
An updated feasibility study has reflected some of the benefits resulting from a pit expansion made possible through the completion of the layback agreement with Fresnillo, announced on December 21, 2020.

The agreement enables Orla to expand the north wall of the oxide pit onto the Fresnillo property adjacent to Orla’s mineral concession. This expansion will increase oxide ore available for extraction on Orla’s property below the pit outlined in the previous feasibility study, released in June 2019. The increase in mineral reserves in the updated feasibility study is derived from the conversion of measured and indicated mineral resources on Orla’s concession. There has been no change to the mineral resource estimate dated and effective as of June 7, 2019.

The updated feasibility study has highlighted a 54% increase in contained gold mineral reserves and a 3.5-year extension to the mine life of the project, which is currently in construction.

The new mineral reserve estimate includes proven and probable mineral reserves of 67.4-million tonnes grading 0.73 g/t gold and 14.5 g/t silver, for total mineral reserves of 1.59-million ounces of gold and 31.5-million ounces of silver. About two-thirds of the mineral reserves are within the currently permitted mine plan. The updated feasibility study continues to support a technically simple openpit mine and heap-leach operation, but improves upon the economics outlined in the 2019 feasibility study. The main notable physical changes from the 2019 feasibility study are an increase in the size of the openpit, heap-leach pad and mine waste dump, as a result of the layback agreement, all of which were anticipated in the initial design. The majority of the infrastructure will remain as presented in the 2019 feasibility study and is being constructed. Total gold and silver produced is estimated at 980 000 oz and 6.19-million ounces respectively over the 10.4-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at a 5% discount rate, of $668-million, with a pretax internal rate of return of 82% and an after-tax payback of 1.5 years.

Capital Expenditure
Initial capital is estimated at $134-million.

Planned Start/End Date
First gold production is planned for late 2021.

Latest Developments
Orla Mining has announced a nonbrokered prospectus financing to raise C$43.15-million.

The financing consists of about 9.09-million common shares at C$4.75 each.

Orla has indicated that a “large institutional investor”, as well as existing shareholders Pierre Lassonde, Agnico Eagle Mines and Trinity Capital Partners, have subscribed for the offering.

The net proceeds from the financing will be used for development activities at the Camino Rojo and Cerro Quema oxide gold projects, exploration activities, technical studies on the Camino Rojo sulphide project and for general corporate purposes.

Key Contracts, Suppliers and Consultants
Kappes Cassiday and Associates, supported by Independent Mining Consultants, Resource Geosciences Incorporated, John Ward Groundwater Consultant, Barranca Group, Piteau Associates Engineering and HydroGeoLogica Inc (updated feasibility study).

Contact Details for Project Information
Orla Mining, tel +1604564 1852 or email info@orlamining.com.