Orla Mining Eyes High-Margin Underground Expansion at Camino Rojo — Orla Mining Ltd.

Event summary

Orla Mining's preliminary economic assessment (PEA) outlines a $1.3B NPV underground project at Camino Rojo, Mexico, with a 17-year mine life.
Projected average annual gold production of 215,000 ounces over the first 10 years, with an all-in sustaining cost of $1,304 per ounce.
Initial capital cost estimated at $608.1M, with a phased de-risking strategy through 2026 and a pre-feasibility study targeted for 2027.
Over 4M oz of gold equivalent in measured and indicated mineral resources, with Zone 22 remaining open for further expansion.
Concentrate market assessment supports the sale of three concentrates (gold, zinc, pyrite) with commercially reasonable terms.

The big picture

Orla Mining's underground expansion at Camino Rojo represents a strategic shift towards higher-margin, long-life mining operations. The project's robust economics, leveraged to gold prices, underscore the company's focus on capital-efficient growth. The underground development complements the existing open-pit operation, positioning Camino Rojo as a multi-decade mining complex in Mexico. The project's success will hinge on Orla's ability to manage execution risks and capitalize on the resource potential beyond the current study.

What we're watching

Execution Risk: Whether Orla can successfully navigate the phased de-risking strategy and secure necessary permits for the underground operations.
Market Dynamics: How the concentrate market conditions will evolve and impact the project's economics, particularly the treatment terms and smelter capacity.
Resource Potential: The pace at which Orla can extend the mineralization at depth and along strike, particularly in Zone 22, to further enhance the project's value.