Camino Rojo Oxide Gold Project is an advanced gold and silver open-pit and heap leach project, located in Zacatecas State, Central Mexico
Orla Mining Ltd. (TSX: OLA) (“Orla” or the “Company”) is pleased to announce that the Company has completed the Layback Agreement with Fresnillo Plc (“Fresnillo”) following the previously announced Letter Agreement. Closing of the Layback Agreement is subject to receipt of approval from the Federal Competition Commission (Comisión Federal de Competencia Económica or “COFECE”).
The Layback Agreement will allow Orla to expand the Camino Rojo oxide pit onto part of Fresnillo’s mineral concession located immediately north of Orla’s property. Orla will have access to the oxide and transitional heap leachable mineral resources on Orla’s property below the open pit outlined in the June 2019 Feasibility Study. In addition, the Layback Agreement will provide Orla with the right to mine from Fresnillo’s mineral concession, and recover for Orla’s account, all oxide and transitional material amenable to heap leaching that are within an expanded open pit. The completion of the Layback Agreement is expected to result in a material increase in mineral reserves at the Camino Rojo project and the Company expects to provide details of an updated feasibility study along with a technical update in early 2021.
“We are pleased to have reached this important milestone with Fresnillo that will unlock further value at Camino Rojo. The expanded project achieved through this agreement will allow Orla to optimize the oxide deposit to its full potential to the benefits of all stakeholders,” stated Jason Simpson, President and Chief Executive Officer of Orla.
An updated feasibility study on a Camino Rojo oxide project unconstrained by Orla’s current property boundary will highlight the economic impact of the additional mineral resources from Orla’s concession available for processing as a result of the Layback Agreement. An expanded operation would not require moving any of the infrastructure in the current project and construction design.
Source: Company Press Release