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Camino Rojo oxide gold project, Mexico – update

8th April 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Camino Rojo oxide gold project.

Location
Zacatecas, in Mexico.

Project Owner/s
Orla Mining.

Project Description
Camino Rojo is an 18 000 t/d throughput openpit heap-leach operation, producing about 94 000 oz/y a year of gold and 597 000 oz/y of silver.

The project has gold reserves of 67.4-million tonnes grading at 0.73 g/t gold for 1.6-million ounces of gold, and measured and indicated resources of 353.4-million tonnes grading at 0.83 g/t of gold.

Th project has a mine life of 10.4 years.

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
Orla Mining declared commercial production at the Camino Rojo oxide-gold mine, effective April 1, 2022.

Latest Developments
The declaration of commercial production at Camino Rojo has followed a successful commissioning period, which included the ramp-up of mining and processing to sustained throughput levels of more than 75% of designed nameplate capacity of 18 000 t/d.

The operation will continue to seek opportunities to improve and optimise throughput and opportunities to achieve and, ultimately, exceed design nameplate capacities.

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.

Edited by Creamer Media Reporter

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