Orla Mining (TSE: OLA) (NYSEAMERICAN: ORLA) shares spiked to new heights after the company released its initial resource for the Camino Rojo deposit in Mexico.
The company said on Wednesday that the resource outlines 3.9 million contained gold ounces with grades approximately 2.45 grams gold per tonne.
Ongoing metallurgical work supports the recovery model. The mineral resource splits into three spatial zones, each requiring a distinct processing method for the Caracol-hosted mineralization.
Heap leaching applies to 3 per cent of the resource, while 25 per cent suits cyanidation using CIL. The remaining 72 per cent requires flotation followed by pressure oxidation (POX) before cyanidation.
These zones directly shape recovery assumptions. Initial tests show zone 22 responds well to both flotation and cyanide leaching.
The development strategy focuses on advancing the initial underground resource toward a potential construction decision.
The plan includes further exploration, design of an exploration drift for tighter drill spacing, and additional metallurgical testing.
It also involves engineering studies, permitting activities, and flowsheet design. Each step helps reduce uncertainty and supports future project decisions.
The measured and indicated mineral resource contains 50.1 million tonnes grading 2.45 grams per tonne gold, 10.6 grams per tonne silver, and 0.25 per cent zinc. On average, the resource grades 2.58 grams per tonne gold equivalent, totaling 3.95 million ounces of gold, 17.05 million ounces of silver, 278 million pounds of zinc, and 4.16 million ounces of gold equivalent.
Read more: Calibre Mining reports solid Q1 results; receives court approval for Equinox Gold merger
Read more: Calibre securityholders give assent for Equinox Gold merger
Results from 2025 program will be in upcoming resource updates
In addition, the inferred mineral resource includes 5.6 million tonnes at 2.21 grams per tonne gold, 10.9 grams per tonne silver, and 0.21 per cent zinc. This material averages 2.33 grams per tonne gold equivalent and contributes 0.40 million ounces of gold, 1.95 million ounces of silver, 26 million pounds of zinc, and 0.42 million ounces of gold equivalent.
Furthermore, zone 22 contributes 7 per cent, or 0.29 million ounces of gold equivalent, to the current underground indicated mineral resource. It also accounts for 19 per cent, or 0.08 million ounces of gold equivalent, of the underground inferred mineral resource. However, this only reflects a portion of the known mineralization in zone 22. Drilling continues, and results from the 2025 program will be integrated into upcoming resource updates.
“This initial underground resource marks an important milestone at Camino Rojo,” said Jason Simpson, president and CEO for Orla.
“When we acquired the project, the scale of the mineralized system was clear, but the path forward was uncertain.”
This resource confirms the team’s confidence in developing a future underground operation at Camino Rojo. They have followed a systematic approach and now plan to define a clear path toward construction.
In recent years, Orla has focused on drilling the sulphide zone, refining the geological model, and extending mineralization down-plunge within the newly identified zone 22.
These efforts resulted in a meaningful initial underground resource that will support the upcoming preliminary economic assessment.
This milestone lays the groundwork for possible long-term production. The deposit remains open both down plunge and at depth. The team remains committed to further exploration and unlocking Camino Rojo’s full potential.
.
