VANCOUVER, BC, Feb. 4, 2021 /CNW/ - Orla Mining Ltd.
(TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to
provide a review of its exploration activities from 2020 and a
preview of its exploration plans for 2021. Concurrent with the
development of the Camino Rojo Oxide Project, Orla will continue to
advance its project pipeline and exploration in both Mexico and Panama. The Company is seeking to expand its
reserve and resource base and make new discoveries through a
systematic and efficient approach to exploration.
"Orla has large and highly prospective land packages, in two
nations, that already host oxide and sulphide gold deposits. Both
land packages are under-explored around the existing discoveries
providing an outstanding opportunity for additional discoveries in
the coming years," stated Jason
Simpson, President and Chief Executive Officer of Orla
Mining.
Orla's exploration work in 2021, during a construction year,
will be modest and focused on supporting study work for existing
deposits and new target identification. It can be classified in two
categories:
- Near-Deposit: Exploration to support study and expansion
of existing deposits.
- Regional Exploration: Activities to generate new
discoveries.
2021 EXPLORATION PROGRAM SUMMARY:
Program
|
Objectives
|
2021 Budget
(US$M)
|
Near-Deposit:
Confirmatory oxide drilling (Camino Rojo)
|
Confirm and increase
oxide mineralization from Fresnillo property
|
$0.5
|
Near-Deposit:
Sulphide directional drilling (Camino Rojo)
|
Provide additional
material for metallurgy, geotechnical and geological
studies
|
$2.5
|
Regional
Exploration
|
Define drill targets
for satellite discoveries
|
$1.0
|
Total
Mexico
|
|
$4.0
|
Near-Deposit:
Caballito trend Quemita drilling
|
Discover more Cu-Au
mineralization
|
$0.7
|
Regional
Exploration
|
Define drill targets
for satellite discoveries
|
$0.4
|
Total
Panama
|
|
$1.1
|
Total Exploration
Budget
|
|
$5.1
|
MEXICO (163,000
HECTARES)
The land package is under-explored and the proximity to the
large Camino Rojo mineralized system, hosting 9.5 million ounces
gold in measured and indicated gold resources (353 million tonnes
at 0.83 g/t)1, provides a highly prospective
opportunity. Exploration on the project is somewhat challenged due
to the presence of a thin alluvial soil and caliche cover impacting
geochemical surface expressions, but the potential to discover
mineralization is considered excellent.
MEXICO 2020
REVIEW
Near-Deposit Expansion
Program: A 6,000-metre oriented core drilling
program began on the large sulphide resource at the Camino Rojo
deposit in the fourth quarter of 2020 to generate additional
information regarding the continuity and geometry of the
higher-grade mineralization and provide new material for
geotechnical and metallurgical studies.
Results: 1,960 metres of the drill program were
completed in 2020. Assay results are pending for the first holes
and drill assay results will be presented following the completion
of the program in the second quarter of 2021.
Regional Exploration
Program: Completion of reverse circulation ("RC")
drilling totalling 5,212 metres at Las Miserias, San Tiburcio and Guanamero targets. The
targets drilled as part of this campaign were previously identified
during a first-phase geophysical induced polarization ("IP")
program on the Camino Rojo district.
Results: Encouraging anomalous drill assay results
(1.5m at >0.500 ppm Au, or
1.5m at > 50 ppm Ag, or
1.5m at > 1000 ppm Zn) were
obtained approximately 7 kilometres to the northeast of the Camino
Rojo deposit, along the same NE-SW structural trend interpreted to
host the deposit (see Figure 1). Anomalous assay results are
associated with faulting recrystallization, skarn alteration with
disseminated pyrite, and sphalerite mineralization.
- 1.5m at 0.558 ppm Au, from
64.5m (RC hole CREI20-13)
- 3m at 2,148 ppm Zn, from
102m, 6m at 0.051 ppm Au, 2,308 ppm Zn, from
195m and 3m at 1,670 ppm Zn, from 231m (RC hole CREI20-16)
- 1.5m at 82.3 ppm Ag, 1555 ppm Pb,
2770 ppm Zn, from 151.5m (RC hole
CREI20-15)
- The drilling also intersected numerous intermediate composition
dykes ranging from less than 1 metre and up to 63 metres (down
holes intervals), similar in composition to the dyke found within
the core of the Camino Rojo deposit.
__________________________
|
1
|
The Camino Rojo
Mineral Resource estimate has an effective date of June 7, 2019 and
was prepared using the CIM Definition. Additional information can
be found in the Camino Rojo Technical Report dated June 25, 2019.
|
Program: Mechanical trenching totalling 140 metres
excavated nine trenches at the Las Miserias target.
Results: Exposure of zones of strong alteration and
silicified breccias associated with NW-SE and NE-SW oriented
structures with widths up to 40 metres. The host rock is the
Caracol and Indidura formations, the same geological units hosting
the Camino Rojo deposit.
Program: Geophysical IP surveys over a 233-kilometre
line across four target areas: Las Miserias, Majoma, Hacheros, and
Guanamero (see Figure 2). The most significant chargeability
anomalies were defined at Las Miserias and Hacheros.
MEXICO 2021
PREVIEW
Near-Deposit Expansion
Program: Camino Rojo Sulphides
Completion of a directional drilling program that commenced in
the fourth quarter of 2020. The program consists of close-spaced,
25-metre drilling of the sulphide zone, over the down plunge
extension of the Camino Rojo deposit.
Objective: The new information collected will
support development scenario planning for the large sulphide
resource which hosts 7.3 million ounces of gold in measured and
indicated resource categories (256 million tonnes at 0.88
g/t)2. The drilling will provide additional information
about the continuity and geometry of the higher-grade
mineralization and provide new material for geotechnical and
metallurgical studies.
Program: Camino Rojo Oxides
Completion of a 2,500-metre core drilling program on
Fresnillo's property and
integration of Orla's geological and resource models with
Fresnillo's drill
data.3
Objective: Enable material on the Fresnillo concession to be included in the
measured and indicated mineral resource categories and to be
considered in an updated mineral reserve estimate.
Regional Exploration
Program: Completion of a 7,500-metre rotary ("RAB")
Covered Bedrock Interface ("CBI") survey.
Objective: The 2021 regional program will seek to
define drill targets for the discovery of satellite deposits near
the Camino Rojo deposit. A large part of the property has a thin
cover of alluvial soil and calcrete or caliche layers (calcium
carbonate concretions). The resulting geochemical samples from the
survey in combination with geophysical IP surveys planned in 2021
and existing geological information will allow for the definition
of new priority drill targets.
PANAMA (14,893
HECTARES)
The discovery of the Caballito mineralized zone and follow-up
drilling executed by Orla led to the definition of significant
copper and gold sulphide mineralization with open pit potential.
The Caballito-style mineralization differs from the Pava and
Quemita oxide deposits as it consists of copper-gold (low arsenic)
sulphide mineralization that will not be amenable to heap leaching
and will require a different processing method. The Cerro Quema
property shows some potential for additional oxide mineralization,
and the upside resides within the sulphides in an area that is
largely under-explored.
__________________________
|
2
|
The Camino Rojo
Mineral Resource estimate has an effective date of June 7, 2019 and
was prepared using the CIM Definition. Additional information can
be found in the Camino Rojo Technical Report dated June 25,
2019.
|
3
|
As announced on
December 21, 2020, Orla completed a Layback Agreement
with Fresnillo PLC ("Fresnillo") that will allow Orla to
expand the Camino Rojo oxide pit onto part of Fresnillo's mineral
concession located immediately north of Orla's property.
|
PANAMA 2020
REVIEW
Near-Deposit Expansion
Program: In the fourth quarter of 2020, drilling
commenced along the Caballito trend to define additional
copper-gold sulphide mineralization like the previously discovered
Caballito mineralized zone.
Results: In the first two of 15 planned holes
completed (see Figure 3), multiple intervals of alteration were
noted. This included narrow intervals of weakly to moderately
advanced argillic alteration and patchy quartz-alunite intervals
and mineralization mostly disseminated pyrite and local
pyrite-enargite and trace of copper sulphide. Anomalous assays
(1.5m at > 0.500 ppm Au, or
1.5m at > 1,000 ppm Cu) included
gold and copper with values up to 0.538 ppm Au and 2,400 ppm Cu
over 1.5 metres from 344.3 metres in hole CQDH-20-184.
PANAMA 2021
PREVIEW
Near-Deposit Expansion
Program: Cerro Quema Caballito Trend – Quemita
Completion of a 15-hole, 3,760-metre drill program that began in
the fourth quarter of 2020 and will extend into the first half of
2021.
Objective: Testing priority targets primarily
defined with geophysical IP anomalies along the Caballito trend,
outside the Caballito deposit, and near the Quemita deposit. The
aim of the drill program is to assess the copper-gold upside
potential to the current mineralization.
Regional Exploration
Program: Completion of a geophysical IP survey
totalling 50-kilometres will be performed on the southeast
extension of the Caballito deposit and the La Prieta target area located farther to the
south (see Figure 4).
Objective: The new geophysical information obtained
will be combined with a global review of the Cerro Quema data to
define new drill targets for the discovery of Caballito-style
satellite deposits. At La Prieta,
porphyry-style mineralization is outcropping, and historical
reconnaissance geophysical IP lines indicate a large chargeability
anomaly over this area. Follow-up IP survey will further define the
extent of this target and will assist with the definition of drill
holes.
Drill Results: All intercept widths are down hole
intervals. There is insufficient geologic data to interpret true
widths of mineralized intersections. Drill results available at
https://www.orlamining.com/site/assets/files/5434/camino_rojo_results_02_04_2021.pdf
and
https://www.orlamining.com/site/assets/files/5435/cerro_quema_results_02_04_2021.pdf.
Qualified Persons Statement
The scientific and technical information related to Cerro Quema
and Camino Rojo in this presentation has been reviewed and approved
by Mr. Sylvain Guerard, P Geo., who
is the Qualified Person for this news release as defined under the
definitions of National Instrument 43-101 ("NI 43-101").
Quality Control Protocols
Cerro Quema: All gold results were obtained by ALS Minerals
(Au-AA23) using fire assay fusion and an atomic absorption
spectroscopy finish. All samples are also analyzed for
multi-elements, including silver and copper, using an Aqua Regia
(ME-ICP41) method at ALS Laboratories in Peru. Samples with copper values in excess of
1% by ICP analysis are re-run with Cu AA46 aqua regia and atomic
absorption analysis. Drill program design, Quality
Assurance/Quality Control and interpretation of results are
performed by qualified persons employing a Quality
Assurance/Quality Control program consistent with National
Instrument ("NI") 43-101 and industry best practices. Standards,
blanks and duplicates are included approximately one every 25
samples for Quality Assurance/Quality Control purposes by the
Company as well as the lab. Approximately 5% of sample pulps are
sent to a secondary laboratory for check assays. The HQ diameter
core is halved with a diamond saw.
Camino Rojo: All gold results were obtained by ALS Minerals
(Au-AA23) using fire assay fusion and an atomic absorption
spectroscopy finish. All samples are also analyzed for
multi-elements, including silver and copper, lead and zinc using an
Aqua Regia (ME-ICP41) method at ALS Laboratories in Canada. Samples with base metal values in
excess of 1% by ICP analysis are re-run with AA46 aqua regia and
atomic absorption analysis. Drill program design, Quality
Assurance/Quality Control and interpretation of results are
performed by qualified persons employing a Quality
Assurance/Quality Control program consistent with National
Instrument ("NI") 43-101 and industry best practices. Standards,
blanks and duplicates are included approximately one every 25
samples for Quality Assurance/Quality Control purposes by the
Company as well as the lab. Approximately 5% of sample pulps are
sent to a secondary laboratory for check assays.
About Orla Mining Ltd.
Orla is developing the Camino Rojo Oxide Gold Project, an
advanced gold and silver open-pit and heap leach project, located
in Zacatecas State, Central
Mexico. The project is 100% owned by Orla and covers over
160,000 hectares. The technical report for the 2019 Feasibility
Study entitled "Feasibility Study, NI 43-101 Technical Report on
the Camino Rojo Gold Project — Municipality of Mazapil, Zacatecas, Mexico" dated June 25, 2019 is available on SEDAR at
www.sedar.com under the Company's profile as well as on Orla's
website at www.orlamining.com. An updated independent
technical report for the updated Feasibility Study on the Camino
Rojo Oxide Gold Project prepared in accordance with the
requirements of National Instrument ("NI") 43-101 will be available
under Orla's profile on SEDAR within 45 days of the January 11, 2021 news release, "Orla Mining
Increases Gold Mineral Reserves by 54% With Updated Feasibility
Study at the Camino Rojo Oxide Gold Project". Orla also owns
100% of the Cerro Quema Project located in Panama which includes a near-term gold
production scenario and various exploration targets. The Cerro
Quema Project is a proposed open pit mine and gold heap leach
operation. Please refer to the "Cerro Quema Project –
Pre-feasibility Study on the La Pava and Quemita Oxide Gold
Deposits" dated August 15, 2014,
which is also available on SEDAR at www.sedar.com.
Forward-looking Statements
This news release contains certain "forward-looking
information" and "forward-looking statements" within the meaning of
Canadian and United States
securities legislation, including, without limitation, the mineral
resource and mineral reserve estimates, the expansion of the Camino
Rojo oxide pit, expectations regarding the optimization of the
oxide deposit and increase in mineral reserves, the expected
additional material to be included in a future mine plan, and the
Company's development, as well as its objectives and strategies.
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 are discussed in this news release,
including without limitation, that there will be no material
adverse change affecting the Company or its properties; that all
required approvals, including Mexican antitrust (COFECE) approval,
will be obtained; 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: delays in or failure to receive
Mexican antitrust (COFECE) approval, risks related to uncertainties
inherent in the preparation of feasibility studies, including but
not limited to, assumptions underlying the production estimates not
being realized, changes to the cost of production, variations in
quantity of mineralized material, grade or recovery rates,
geotechnical or hydrogeological considerations during mining
differing from what has been assumed, 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, cost of labour, supplies, fuel and equipment rising, changes
in project parameters, delays and costs inherent to consulting and
accommodating rights of local communities, environmental risks,
title risks, commodity price and exchange rate fluctuations, risks
relating to COVID-19, delays in or failure to receive amended
permits, including CUS, risks inherent in the estimation of mineral
reserves and mineral resources, including but not limited to, risks
that the interpreted drill results may not accurately represent the
actual continuity of geology or grade of the deposit, bulk density
measurements may not be representative, interpreted and modelled
metallurgical domains may not be representative, and metallurgical
recoveries may not be representative; 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 23, 2020, available on www.sedar.com.
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 in this release 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 May 10, 2014, as amended (the "CIM Definition
Standards"). 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 in this release is not comparable to
similar information that would generally be disclosed by U.S.
companies in accordance with the rules of the SEC. In particular,
the SEC's Industry Guide 7 applies different standards in order to
classify mineralization as a reserve. As a result, the definitions
of proven and probable reserves used in NI 43-101 differ from the
definitions used by the SEC in Industry Guide 7. Under SEC
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. Among other things, all
necessary permits would be required to be in hand or issuance
imminent in order to classify mineralized material as reserves
under the SEC standards. Accordingly, mineral reserve estimates
contained in this release may not qualify as "reserves" under SEC
standards. In addition, this release uses the terms "measured
mineral resources," "indicated mineral resources" and "inferred
mineral resources" to comply with the reporting standards in
Canada. The SEC does not currently
recognize mineral resources and U.S. companies are generally not
permitted to disclose mineral resources of any category in
documents they file with the SEC. Investors are specifically
cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into mineral
reserves as defined in NI 43-101 or Industry Guide 7. Further,
"inferred mineral resources" have a great amount of uncertainty as
to their existence and as to whether they can be mined legally or
economically. Therefore, investors are also cautioned not to assume
that all or any part of an inferred resource could ever be mined
economically. It cannot be assumed that all or any part of
"measured mineral resources," "indicated mineral resources," or
"inferred mineral resources" will ever be upgraded to a higher
category. Investors are cautioned not to assume that any part of
the reported "measured mineral resources," "indicated mineral
resources," or "inferred mineral resources" in this release is
economically or legally mineable. 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, following a
two-year transition period, the SEC Modernization Rules will
replace the historical property disclosure requirements for mining
registrants that were included in SEC Industry Guide 7. Following
the transition period, 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. If the Company ceases to be a foreign private issuer or
lose its eligibility to file its annual report on Form 40-F
pursuant to the multi-jurisdictional disclosure system, then the
Company will be subject to the SEC Modernization Rules which differ
from the requirements of NI 43-101. 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 Standards. As a result
of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of "measured mineral resources", "indicated
mineral resources" and "inferred mineral resources". In addition,
the SEC has amended its definitions of "proven mineral reserves"
and "probable mineral reserves" to be "substantially similar" to
the corresponding CIM Definitions. U.S. investors are cautioned
that while the above terms are "substantially similar" to CIM
Definitions, 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 reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules. U.S. investors are also cautioned that while the SEC will
now recognize "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources", 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 in this release containing
descriptions of our mineral reserve and mineral resource estimates
is not comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC.
SOURCE Orla Mining Ltd.