VANCOUVER, BC, Jan. 20, 2022 /CNW/ - Orla Mining
Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is
pleased to announce that the Company has filed an updated technical
report, prepared in accordance with the disclosure standards under
National Instrument 43-101 ("NI 43-101") for its Cerro Quema
project ("Cerro Quema") located in the Azuero Peninsula,
Los Santos Province, Panama. The updated technical report now
includes the independent mineral resource estimate for the
Caballito copper-gold deposit, details of which were previously
announced (see News Release dated December 6, 2021).
"We remain excited about the diversity of our growth options in
Panama and are progressing on all
fronts", said Jason Simpson,
President and Chief Executive Officer of Orla Mining. "This
includes the promising copper development opportunity, the robust
oxide heap leach project, and a prospective exploration
package."
The following tables present the mineral resource estimation for
the Cerro Quema oxide project as well as the separate and
additional Caballito deposit. The mineral resource on the Cerro
Quema oxide project has been updated from the previously filed
technical report dated September 7,
2021. In the previously filed technical report, the mixed
category under the indicated and inferred resource for the Cerro
Quema oxide project was misstated and has been corrected in the
updated technical report. This correction does not have an impact
on the previously disclosed mineral reserve estimate or the results
of the pre-feasibility study on the Cerro Quema oxide project.
CABALLITO & CERRO QUEMA MINERAL RESOURCE ESTIMATE,
EFFECTIVE DATE OF NOVEMBER 2,
2021
Caballito
Sulphides
|
|
|
|
|
|
|
|
Class
|
Tonnes
|
CuEq
|
Cu
|
Au
|
Ag
|
CuEq
|
Cu
|
Au
|
Ag
|
(000s)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
(Mlbs)
|
(Mlbs)
|
(koz)
|
(koz)
|
Indicated
|
31,952
|
0.96
|
0.83
|
0.31
|
2.2
|
676
|
585
|
315
|
2,260
|
Inferred
|
22,569
|
0.85
|
0.77
|
0.21
|
1.2
|
425
|
381
|
155
|
856
|
Cerro Quema &
Caballito Oxide Mineral Resource Estimate
|
Mineral Resource
Type
|
000's
|
Gold
|
Silver
|
Gold
|
Silver
|
tonnes
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
Oxide
|
|
|
|
|
|
Quema
Indicated Mineral Resource
|
9,305
|
0.67
|
1.97
|
200
|
589
|
Pava
Indicated Mineral Resource
|
21,488
|
0.65
|
2.03
|
451
|
1,402
|
Caballito
|
998
|
0.49
|
2.10
|
16
|
67
|
Indicated Mineral Resource
|
31,791
|
0.65
|
2.01
|
666
|
2,059
|
|
|
|
|
|
|
Mixed
|
|
|
|
|
|
Quema
Indicated Mineral Resource **
|
257
|
0.42
|
3.16
|
3
|
26
|
Pava
Indicated Mineral Resource **
|
2,222
|
0.53
|
2.51
|
38
|
179
|
Indicated Mineral Resource **
|
2,479
|
0.52
|
2.58
|
41
|
205
|
|
|
|
|
|
|
Total Indicated
Mineral Resource
|
34,270
|
0.64
|
2.06
|
708
|
2,265
|
|
|
|
|
|
|
Oxide
|
|
|
|
|
|
Quema
Inferred Mineral Resource
|
2,837
|
0.32
|
2.91
|
29
|
265
|
Pava
Inferred Mineral Resource
|
776
|
0.25
|
1.24
|
6
|
31
|
Caballito
|
3,619
|
0.36
|
2.30
|
41
|
268
|
Inferred Mineral Resource
|
7,232
|
0.33
|
2.43
|
77
|
564
|
|
|
|
|
|
|
Mixed
|
|
|
|
|
|
Quema
Inferred Mineral Resource **
|
1
|
0.23
|
0.50
|
0
|
0
|
Pava
Inferred Mineral Resource **
|
249
|
0.39
|
0.66
|
3
|
5
|
Inferred Mineral Resource **
|
250
|
0.39
|
0.66
|
3
|
5
|
|
|
|
|
|
|
Total Inferred
Mineral Resource
|
7,482
|
0.33
|
2.37
|
80
|
569
|
** Represents
categories that were previously misstated and have been updated in
the technical report as described above.
|
Mineral Resources Notes:
1.
|
The qualified person
responsible for the Mineral Resource is Sue Bird, P. Eng of Moose
Mountain Technical Services. Sue Bird is independent of Orla
Mining Ltd.
|
2.
|
Resources are
reported using the 2014 CIM Definition Standards and were estimated
using the 2019 CIM Best Practices Guidelines.
|
3.
|
Mineral Resources are
reported inclusive of Mineral Reserves.
|
4.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
5.
|
The Mineral Resource
is based on the following assumptions: for Pava and Quemita: Metal
prices of US$1,600/oz gold price and US$18/oz silver price. 125%
price case pit; 99.9% payable Au; 98.0% payable Ag; $1.40/oz Au and
$1.20/oz Ag offsite costs (refining, transport and insurance); At
Caballito: 100% price pit with metal prices of US$1,600/oz gold
price, US$3.50/lb copper price and US$20/oz silver price and the
following smelter terms: In the Oxides: 99% payable Au; 98.0%
payable Ag; In the Sulphide 90% payable Au and Ag, and 96% payable
Cu; Offsite costs of US$1.40/oz Au and US$1.20/oz Ag in the oxides
and offsite costs (refining, transport and insurance) of
US$16.30/WMT for Au, US$116.50/WMT for Cu and US$3.20/WMT for Ag in
the sulphides; for all deposits a 4% net smelter returns ("NSR")
royalty for Au and Ag and a 5% NSR royalty for Cu.
|
6.
|
Metallurgical
recoveries are for Pava: 88% Au in oxides and mixed, for
Quema: 86% Au in oxides and mixed for Pava, Ag recovery is
30% oxides and mixed in Pava, Ag recovery is 15% in oxides and
mixed in Quema. The metallurgical recovery at Caballito have been
estimated as 90% for Cu, 55% for Au, and 45% for Ag in the
sulphides, and 88% for Au, 45% for Ag and 0% for Cu in the
oxides.
|
7.
|
The Mineral Resource
has been confined by a "reasonable prospects of eventual economic
extraction" pit using the following cost assumptions: At Quemita: a
mining cost of US$2.56 At La Pava a mining cost of $US2.40 at
Caballito a mining cost of US$2.20/tonne for both materials to be
processed and waste. Processing + G&A costs for each
deposit and metallurgical zone are the base case cutoff NSR
values.
|
8.
|
The base case cut-off
is an NSR of: for Pava, US$6.34/tonne for oxide and US$9.18/tonne
for mixed; for Quema, US$6.50 for oxides and US$8.35 for mixed; and
for Cabllito, US$6.34/tonne for oxide and US$15.00/tonne for
sulphide.
|
9.
|
Pit slope angles are
40º.
|
10.
|
The bulk density in
La Pava and Quemita has been determined by Alteration Zone and Core
recovery and ranges between 2.07 and 2.62. The bulk density at
Caballito has been assigned values of 2.34 and 2.70 tonnes/m3 in
the oxides and sulphides, respectively based on bulk density
measurements.
|
11.
|
Numbers may not add
due to rounding.
|
The detailed technical report is now available on SEDAR and
EDGAR under the Company's profile at www.sedar.com and at
www.sec.gov, respectively. The technical report is now also
available on Orla's website at www.orlamining.com.
Qualified Persons
The scientific and technical information in this news release
was reviewed and approved by Mr. J. Andrew
Cormier, P. Eng., Chief Operating Officer of the Company,
and Mr. Sylvain Guerard, P. Geo.,
Senior Vice President, Exploration of the Company, who are
Qualified Persons as defined under NI 43-101 standards.
This press release shall not constitute investment advice or
an offer to sell or the solicitation of an offer to buy securities
in the United States.
About Orla Mining Ltd.
Orla is operating the Camino Rojo Oxide Gold mine, a gold and
silver open-pit and heap leach mine, located in Zacatecas State,
Central Mexico. The operation is
100% owned by Orla and covers over 160,000 hectares. The technical
report for the 2021 Feasibility Study on the Camino Rojo oxide gold
project entitled "Unconstrained Feasibility Study NI 43-101
Technical Report on the Camino Rojo Gold Project – Municipality of
Mazapil, Zacatecas, Mexico"
dated January 11, 2021, is available
on SEDAR and EDGAR under the Company's profile at
www.sedar.com and www.sec.gov, respectively. The technical
report is also available on Orla's website at www.orlamining.com.
Orla also owns 100% of Cerro Quema located in Panama which includes a near-term gold
production scenario and various exploration targets. Cerro Quema is
a proposed open pit mine and gold heap leach operation. The
technical report for the Pre-Feasibility Study on the Cerro Quema
oxide gold project entitled "Project Pre-Feasibility
Updated NI 43-101 Technical Report on the Cerro Quema Project,
Province of Los Santos,
Panama" dated January 18,
2022, is available on SEDAR and EDGAR under the Company's profile
at www.sedar.com and www.sec.gov, respectively. The technical
report is also available on Orla's website at
www.orlamining.com.
Forward-looking Statements
This news release contains certain "forward-looking
information" and "forward-looking statements" within the meaning of
Canadian securities legislation and within the meaning of Section
27A of the United States Securities Act of 1933, as amended,
Section 21E of the United States Exchange Act of 1934, as amended,
the United States Private Securities Litigation Reform Act of 1995,
or in releases made by the United States Securities and Exchange
Commission, all as may be amended from time to time, including,
without limitation, statements regarding the perceived merits
of the Company's properties and mineral resource estimates.
Forward-looking statements are statements that are not historical
facts which address events, results, outcomes or developments that
the Company expects to occur. Forward-looking statements are based
on the beliefs, estimates and opinions of the Company's management
on the date the statements are made and they involve a number of
risks and uncertainties. Certain material assumptions regarding
such forward-looking statements were made, including without
limitation, assumptions regarding the price of gold, silver and
copper; the accuracy of mineral resource estimations; that there
will be no material adverse change affecting the Company or its
properties; that all required approvals will be obtained, including
concession renewals and permitting; that political and legal
developments will be consistent with current expectations; that
currency and exchange rates will be consistent with current levels;
and that there will be no significant disruptions affecting the
Company or its properties. Consequently, there can be no assurances
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Forward-looking statements involve significant
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated. These risks
include, but are not limited to: risks related to uncertainties
inherent in the preparation of mineral resource estimates,
including but not limited to changes to the cost assumptions,
variations in quantity of mineralized material, grade or recovery
rates, changes to geotechnical or hydrogeological considerations,
failure of plant, equipment or processes, changes to availability
of power or the power rates, ability to maintain social license,
changes to interest or tax rates, changes in project parameters,
delays and costs inherent to consulting and accommodating rights of
local communities, environmental risks, title risks, including
concession renewal, commodity price and exchange rate fluctuations,
risks relating to COVID-19, delays in or failure to receive access
agreements or amended permits, risks inherent in the estimation of
mineral resources; and risks associated with executing the
Company's objectives and strategies, including costs and expenses,
as well as those risk factors discussed in the Company's most
recently filed management's discussion and analysis, as well as its
annual information form dated March 29,
2021, available on www.sedar.com and www.sec.gov. Except as
required by the securities disclosure laws and regulations
applicable to the Company, the Company undertakes no obligation to
update these forward-looking statements if management's beliefs,
estimates or opinions, or other factors, should change.
Cautionary Note to U.S. Readers
The disclosure contained or referenced herein uses mineral
reserve and mineral resource classification terms that comply with
reporting standards in Canada, and
mineral reserve and mineral resource estimates are made in
accordance with Canadian NI 43-101 and the Canadian Institute of
Mining, Metallurgy and Petroleum — CIM Definition Standards on
Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended (the "CIM Definition Standards"). Canadian NI 43-101
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral
projects. These standards differ significantly from the
mineral reserve disclosure requirements of the United States
Securities Exchange Commission (the "SEC") set forth in Industry
Guide 7. Consequently, information regarding mineralization
contained or referenced herein is not comparable to similar
information that would generally be disclosed by U.S. companies
under Industry Guide 7 in accordance with the rules of the SEC
which applied to U.S. filings prior to the current SEC
Modernization Rules (as defined herein). Further, the SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities Exchange Act of 1934
("Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules")
and, commencing for registrants with their first fiscal year
beginning on or after January 1,
2021, the SEC Modernization Rules replace the historical
property disclosure requirements included in SEC Industry Guide
7. As a foreign private issuer that files its annual report
on Form 40-F with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. The SEC Modernization Rules include
the adoption of terms describing mineral reserves and mineral
resources that are "substantially similar" to the corresponding
terms under the CIM Definition, but there are differences in the
definitions under the SEC Modernization Rules and the CIM
Definition Standards. Accordingly, there is no assurance any
mineral reserves or mineral resources that the Company may report
as "proven mineral reserves", "probable mineral reserves",
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources" under NI 43-101 would be the same had
the Company prepared the mineral reserve or mineral resource
estimates under the standards adopted under the SEC Modernization
Rules. U.S. investors are also cautioned that while the SEC
recognizes "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under the Modernization
Rules, investors should not assume that any part or all of the
mineralization in these categories will ever be converted into a
higher category of mineral resources or into mineral reserves.
Mineralization described using these terms has a greater amount of
uncertainty as to its existence and feasibility than mineralization
that has been characterized as reserves. Accordingly, investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable.
Further, "inferred mineral resources" have a greater amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. Therefore, U.S. investors are also
cautioned not to assume that all or any part of the "inferred
mineral resources" exist. Under Canadian securities laws, estimates
of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
For the above reasons, information contained or referenced herein
regarding descriptions of our mineral reserve and mineral resource
estimates is not comparable to similar information made public by
U.S. companies subject to reporting and disclosure requirements of
the SEC under either Industry Guide 7 or SEC Modernization
Rules.
SOURCE Orla Mining Ltd.