Orla Mining Ltd (TSE: OLA) (NYSEAMERICAN: ORLA) (FRA: O8M) has approved initial construction spending for its South Railroad gold project in Nevada, setting the stage for full-scale building to begin in mid-2026 once all permits are secured.
The company expects the work to wrap up in about 18 months, aiming for first gold production by early 2028. This move follows the project’s designation as a FAST-41 Covered Project under federal oversight, which streamlines environmental reviews.
Permitting kicked off in August 2025 with the U.S. Bureau of Land Management publishing a Notice of Intent, launching the Environmental Impact Statement process. Public scoping drew mostly supportive comments, and state approvals for air and water are progressing smoothly. The target for a final Record of Decision is mid-2026, though risks like regulatory delays remain a factor.
The updated feasibility study, released on Jan. 15, paints a picture of solid potential with significant challenges. On the upside, it projects an after-tax net present value of US$783 million at a US$3,100 gold price and a 48 per cent internal rate of return. Average annual production could hit 130,000 ounces in the first five years, with a life-of-mine average of over 103,000 ounces throughout the operation’s 10-year lifespan. Optimizations like improved crushing and water systems, plus resource growth since acquisition, bolster the outlook.
The key growth came in Measured and Indicated Mineral Resources, which rose by 206,000 ounces in oxide material and 469,000 ounces in sulphide material since Orla acquired the asset. This reflects early progress in district-scale expansion efforts.
“Orla Mining’s next building block of gold growth is on the prolific Carlin trend in Nevada,” said CEO Jason Simpson with regard to the news.
Read more: NevGold’s latest discovery represents near-term antimony production potential
Resources have risen, but so have costs
Initial capital costs have climbed to US$395 million from US$190 million in 2022, driven by inflation and added infrastructure needs. Investors have reacted with cautious optimism, viewing the project as a key growth driver that could boost Orla’s output to nearly 500,000 ounces yearly across its operations.
Yet, shares slid slightly during early trading Thursday amid concerns over execution risks and permit timelines even though long-term upside from exploration potential mitigates the negativity.
Nevada’s gold sector remains a powerhouse, producing over 4 million ounces annually and accounting for more than 60 per cent of U.S. output, thanks to major operations like the Barrick-Newmont joint venture. Gold prices are hovering near record highs around US$4,600 per ounce this month, fuelled by geopolitical tensions, safe haven appeal and easing monetary policies. Many forecasts are eyeing US$5,000 by year-end.
Broader mining trends in the U.S. emphasize critical minerals like antimony, vital for flame retardants, solar panels, and defence tech amid supply disruptions from China. The American push to boost domestic sources of this commodity and others the state holds is intensifying.
Emerging players in Nevada like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) are stepping up their game. At the Limousine Butte project in White Pine County, recent sampling has made near-term antimony production plausible from extensive historical leach pads, building on last year’s high-grade oxide intercepts and solid metallurgical results.
Read more: NevGold expands Limo Butte footprint by staking 90 promising antimony-gold claims
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