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Orla Mining Ltd (ORLA) Q1 2025 Earnings Call Highlights: Record Gold Production and Strategic ...
Revenue: Approximately $141 million for the quarter. Gold Production: Nearly 30,000 ounces from Camino Rojo and 18,000 ounces from Musselwhite in March. Gold Sales: 46,000 ounces at a realized price of $2,915 per ounce. Cash Costs: $597 per ounce of gold sold. All-in Sustaining Costs: $845 per ounce of gold sold. Net Loss: $70 million or $0.22 per share. Adjusted Net Earnings: $38.6 million or $0.12 per share. Cash Flow from Operating Activities: $401 million or $1.24 per share. Capital Expenditures: $17.7 million, including $9.2 million non-sustaining and $8.5 million sustaining. Production Guidance for 2025: 280,000 to 300,000 ounces of gold. Cash Costs Guidance for Musselwhite: $1,000 to $1,200 per ounce. All-in Sustaining Costs Guidance for Musselwhite: $1,550 to $1,750 per ounce. Cash Balance: $184 million at the end of the first quarter. Net Debt: Approximately $266 million. Warning! GuruFocus has detected 4 Warning Sign with QSCGF. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Orla Mining Ltd (ORLA) recorded a record quarter of gold production, driven by the newly acquired Musselwhite Mine. The company updated its 2025 production guidance to 280,000 to 300,000 ounces of gold, reflecting the integration of Musselwhite. Cash costs and all-in sustaining costs for Camino Rojo remain competitive, with cash costs between $625 to $725 per ounce. Orla Mining Ltd (ORLA) is aggressively investing in exploration and development, with a total planned investment of $175 million for 2025. The company has committed $25 million towards exploration at Musselwhite to extend mine life and support future expansion. Orla Mining Ltd (ORLA) recorded a net loss of $70 million for the quarter, mainly due to financial instruments related to the Musselwhite acquisition. The integration of Musselwhite has led to complex financial reporting and transitional challenges. The company's outstanding debt balance increased to $450 million following the Musselwhite acquisition. Cash flow from operating activities is impacted by the gold prepay, reducing cash flow as gold ounces are delivered. Permitting for expansion in Mexico is ongoing, with potential delays if permits are not received as expected. Q: Can you provide details on the sustaining and non-sustaining CapEx for Musselwhite, and how it compares to the 43-101 mine plan capital costs? A: Jason Simpson, President and CEO, explained that the current guidance includes increased investment above the technical report, specifically in areas like lateral development, enhanced mobile fleet, and exploration. This represents an improvement over the reserve-only technical report, aiming to extend mine life and potentially expand production. Q: Will the exploration program at Musselwhite be similar in size next year, or was this year's program larger to kick things off? A: Jason Simpson indicated that while they are not providing guidance for next year, they expect a similar-sized exploration program. The objective is a 24-month plan to extend mine life and understand the geologic complex, setting up future conversations about potential capital investment and expansion. Q: Can you provide an update on the permitting process in Mexico for Camino Rojo? A: Jason Simpson stated that they are actively communicating with regulators at both state and federal levels in Mexico. They expect to receive permits on schedule, with a resolution anticipated in the next couple of months, following their submission on November 11 of the previous year. Q: How are the financial results impacted by the Musselwhite acquisition, and what are the key financial metrics for the quarter? A: Etienne Morin, CFO, noted that the quarter was transitional due to the mid-quarter closing of the Musselwhite acquisition. They sold 46,000 ounces of gold, generating $141 million in revenue. Cash costs were $597 per ounce, and all-in sustaining costs were $845 per ounce. The net loss was $70 million, mainly due to financial instruments related to the acquisition. Q: What are the plans for exploration and resource updates in Nevada and Canada? A: Sylvain Guerard, SVP of Exploration, mentioned that in Nevada, the focus is on increasing resources at Pinon and Dark Star, with drilling resuming in May. In Canada, $25 million is committed to exploration at Musselwhite to define additional mineralization and extend mine life beyond 2030. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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Orla Mining Delivers Initial Underground Mineral Resource for Camino Rojo in Mexico, Paving the Way for Future Development Planning
3.95 Moz Measured & Indicated & 0.40 Moz Inferred Gold Mineral Resources VANCOUVER, BC, June 5, 2025 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide the first underground Mineral Resource estimate for the Company's Camino Rojo deposit located in Zacatecas, Mexico, representing a down plunge extension from the oxide open pit. This news release presents the initial underground Mineral Resource estimate for the Camino Rojo deposit, incorporating mineralization hosted in the Camino Rojo Sulphides and extending into the underlying Zone 22 (Figures 1, 2a). Zone 22 represents the vertical and down plunge continuation of the Camino Rojo sulphide mineralization. Summary Highlights: Measured and Indicated Mineral Resource: 50.1 Mt at 2.45 g/t Au, 10.6 g/t Ag, and 0.25% Zn, averaging 2.58 g/t AuEq, totaling 3.95 Moz Au, 17.05 Moz Ag, 278 Mlbs Zn, and 4.16 Moz AuEq. Inferred Mineral Resource: 5.6 Mt at 2.21 g/t Au, 10.9 g/t Ag, and 0.21% Zn, averaging 2.33 g/t AuEq, totaling 0.40 Moz Au, 1.95 Moz Ag, 26 Mlbs Zn, and 0.42 Moz AuEq. Zone 22 accounts for only 7% (0.29 Moz AuEq) of the current underground Indicated Mineral Resource and 19% (0.08 Moz AuEq) of the current underground Inferred Mineral Resource. This represents only a portion of the defined mineralization in Zone 22, with drilling ongoing. The 2025 drilling results from Zone 22 will be incorporated in future resource updates. Recovery model supported by ongoing metallurgical work: The mineral resource is divided into three spatially distinct zones, each with specific processing options for the Caracol-hosted mineralization: heap leaching (3%); cyanidation (CIL) (25%); and flotation followed by pressure oxidation ("POX") as a pre-treatment prior to cyanidation (CIL with POX) (72%). These zones inform the resource recovery assumptions. Initial metallurgical testing indicates that material from Zone 22 is amenable to both cyanide leaching and flotation. Development strategy to advance the initial underground Mineral Resource towards possible future construction decision. This includes additional exploration, development planning for an exploration drift to allow for tighter spaced underground drilling, flowsheet design, further metallurgical testing, engineering studies, and permitting activities. "This initial underground resource marks an important milestone at Camino Rojo. When we acquired the project, the scale of the mineralized system was clear, but the path forward was uncertain. This resource crystallizes our belief in the potential for a future underground operation. Our team has taken a systematic approach, and we will now look to increase confidence and establish a clear path to construction." – Jason Simpson, President and CEO "Over the past few years, our efforts have focused on drilling the sulphide zone, improving the geological model, and extending mineralization down-plunge in the newly discovered Zone 22. We have now delivered a significant initial underground resource, a key milestone that will inform an upcoming Preliminary Economic Assessment and establish the foundation for potential long-term production at Camino Rojo. The deposit remains open down plunge and at depth, and we remain committed to continued exploration and unlocking the full potential of Camino Rojo." – Sylvain Guerard, Senior Vice President, Exploration Initial Underground Camino Rojo Mineral Resource Estimate: The underground resource, including the Camino Rojo Sulphides and Zone 22, extends from the base of the oxide pit to approximately 1,200 metres below surface (or up to 1,300 metres down plunge from the pit base), covering up to one kilometre along strike and 200 to 400 metres in width (Figures 2a, 2b, 3). The Mineral Resource estimate, prepared by SLR Consulting (Canada) Ltd, includes a resource panel constrained Measured and Indicated Mineral Resource totalling 50.1 Mt at 2.45 g/t Au, 10.6 g/t Ag and 0.25% Zn, equating to 2.58 g/t AuEq. Contained metal amounts to 3.95 Moz gold, 17.05 Moz silver and 278 Mlbs zinc, totalling 4.20 Moz AuEq. The Inferred Mineral Resource totals 5.6 Mt at 2.21 g/t Au, 10.9 g/t Ag and 0.21% Zn, equating to 2.33 g/t AuEq. Contained metal amounts to 0.40 Moz gold, 1.95 Moz silver and 26 Mlbs zinc, resulting in a total of 0.42 Moz AuEq. See Table 1 and Figures 4 to 6 for details. The Mineral Resources reported for Zone 22 are constrained within underground resource panels below the Caracol Formation, which represent the vertical and down plunge continuation of the Camino Rojo sulphide mineralization. Zone 22 has been drilled to nearly one kilometre below the Caracol Formation and remains open at depth and down-plunge. Table 1: Camino Rojo Underground Mineral Resource Estimate: DescriptionsMeasured Indicated Measured & Indicated Inferred kt g/t koz kt g/t koz kt g/t koz kt g/t koz GOLD (Au) Heap leach 7 1.95 0 1,704 2.90 159 1,711 2.90 159 214 2.29 16CIL - - - 12,475 2.07 832 12,475 2.07 832 2,549 1.81 148FLOT/POX/CIL - - - 35,900 2.56 2,958 35,900 2.56 2,958 2,813 2.57 232Total - Gold 7 1.95 0 50,079 2.45 3,949 50,086 2.45 3,950 5,576 2.21 396 kt g/t koz kt g/t koz kt g/t koz kt g/t koz SILVER (Ag) Heap leach 7 31.5 7 1,704 13.2 722 1,711 13.3 729 214 15.1 104CIL - - - 12,475 8.7 3,480 12,475 8.7 3,480 2,549 10.2 835FLOT/POX/CIL - - - 35,900 11.1 12,847 35,900 11.1 12,847 2,813 11.2 1,010Total - Silver 7 31.5 7 50,079 10.6 17,048 50,086 10.6 17,055 5,576 10.9 1,949 kt % Mlb kt % Mlb kt % Mlb kt % Mlb ZINC (Zn) Heap leach - - - - - - - - - - - -CIL - - - - - - - - - - - -FLOT/POX/CIL - - - 35,900 0.35 278 35,900 0.35 278 2,813 0.42 26Total - Zinc 0 0 0 35,900 0.35 278 35,900 0.35 278 2,813 0.42 26 kt g/t koz kt g/t koz kt g/t koz kt g/t koz AUEQ (Au) Heap leach 7 2.11 1 1,704 3.03 166 1,711 3.03 166 214 2.44 17CIL - - - 12,475 2.11 848 12,475 2.11 848 2,549 1.85 152FLOT/POX/CIL - - - 35,900 2.72 3,142 35,900 2.72 3,142 2,813 2.75 249Total - AUEQ 7 2.11 1 50,079 2.58 4,156 50,086 2.58 4,156 5,576 2.33 418 kt g/t koz/Mlb kt g/t or % koz/Mlb kt g/t or % koz/Mlb kt g/t or % koz/Mlb TOTALS Au 7 1.95 0 50,079 2.45 3,949 50,086 2.45 3,950 5,576 2.21 396Ag 31.5 7 10.6 17,048 10.6 17,055 10.9 1,949Zn - - 0.25 278 0.25 278 0.21 26AuEq 2.11 1 2.58 4,156 2.58 4,156 2.33 418 Mineral Resources Notes: 1. CIM (2014) definitions were followed for Mineral Resources. The mineral resource estimate for Camino Rojo has an effective date of March 31, 2025. 2. The Qualified Person responsible for the mineral resource estimate is Marie-Christine Gosselin, Senior Resource Geologist of SLR Consulting (Canada) Ltd. 3. Mineral resources are estimated using a long-term price of US$2,300 /oz gold, US$1.25 /lb zinc and US$29 /oz silver and the following smelter terms: for oxide 99.9% payable Au and 98% payable Ag, and for sulphide 95% payable Au, 90% payable Ag and 95% payable Zn. Offsite costs (refining, transport and insurance) of US$145 /wmt transportation and US$230 /dmt treatment; a 2.5% NSR royalty. 4. Metallurgical recoveries vary according to geometallurgical domains from heap leach, CIL, and flotation CIL with POX and are either constant or formula based. Heap leach recoveries range from 40% to 70% for gold and from 11% to 34% for silver. For CIL and CIL with POX, gold and silver recoveries are calculated using grade dependent formulae. The underground CIL mean recovery is 92% for gold and 36% for silver. The underground CIL with POX mean recovery is 85% for gold and 41% for silver. Zinc recovery by flotation is 80%. 5. Mineral Resources are estimated in underground resource panels using NSR cut-off grades of 59.02 US$/t for leach material, 68.73 US$/t for CIL material, and 76.23 US$/t for CIL w/POX material. Underground resource panels have a minimum width of 2m. 6. The NSR for heap leach material is calculated with the following formula: NSR ($/t) = US$71.98 x Au recovery x Au grade + US$0.84 x Ag recovery x Ag grade (g/t). The NSR for CIL material is calculated with the following formula: NSR ($/t) = US$68.34 x Au recovery x Au grade (g/t) + US$0.73 x Ag recovery x Ag grade (g/t). The NSR for CIL w/POX material is calculated with the following formula: NSR ($/t) = US$68.34 x Au recovery x Au grade (g/t) + US$0.73 x Ag recovery x Ag grade (g/T) + US$0.00146 x Zn recovery x Zn grade (ppm). 7. The gold equivalent (AuEq) for heap leach material is calculated with the following formula: Au grade (g/t) + (US$0.84 x Ag recovery x Ag grade (g/t)) /(US$71.98 x Au recovery). The AuEq for CIL material is calculated with the following formula: Au grade (g/t) + (US$0.73 x Ag recovery x Ag grade (g/t)) / (US$68.34 x Au recovery). The AuEq for CIL w/POX material is calculated with the following formula: Au grade (g/t) + (US$0.73 x Ag recovery x Ag grade (g/t)) / (US$68.34 x Au recovery) + (US$0.00146 x Zn recovery x Zn grade (ppm)) / (US$68.34 x Au recovery). 8. Numbers may not add due to rounding. The Mineral Resource estimate includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The following factors, among others, could affect the mineral resource estimate: commodity price and exchange rate assumptions, pit slope angles, assumptions used in generating the resource pit shell and underground resource panels, including metal recoveries, and mining and process cost assumptions. Evolution of Camino Rojo Deposit: Orla's north-to-south drilling programs from Q4-2020 to Q4-2024, together with historical drilling data, have been instrumental in enhancing the geological model. This work has significantly refined the understanding of the distribution and geometry of sulphide-bearing veins hosted within the Caracol Formation, which includes both the oxide and much of the sulphide mineralization (except for Zone 22). Zone 22 had previously been partially intersected by historical drilling but lacked a supporting geological model to define its geometry or potential extension into the deeper carbonate-rich formations below the Caracol Formation. Orla's updated model enabled strategic drilling along a section drilled in 2023, targeting the down-plunge extension of the deposit. This drilling confirmed the model and supported follow-up drilling in 2024 to define and expand Zone 22. Initially, the development path for the sulphide component of the Camino Rojo deposit was conceived as a large open pit operation. However, initial estimates by previous operators, and later by Orla, indicated that such a scenario would require significant waste stripping, extension of the projected open pit onto a third-party property that Orla does not own, and construction of a large processing facility. The underground development scenario offers a more focused, high-value approach. This strategy involves selectively targeting higher-grade and more metallurgically favourable portions of the deposit (those amenable to direct cyanide leaching) as an initial phase of mining. Subsequent phases would address mineralization requiring pre-treatment, such as pressure oxidation, prior to cyanidation. Additionally, the underground development could operate in parallel with the ongoing oxide open pit. The upcoming PEA is expected to evaluate the underground mineral resource as an expansion of the current operation which would allow Orla to retain full project value. Development Pathway / Next Steps: Current and Planned Future Exploration In 2025, Orla is advancing a 15,000-metre drilling program aimed at upgrading and expanding the upper part of the Zone 22 resource, with 11,000 metres drilled to date. Visual drill intercepts continue to support the geological model and continuity of mineralization. This program is expected to be completed in the third quarter and is anticipated to extend and infill the down-plunge extension. The next phase of exploration to support the possible development of the underground deposit (including Zone 22) includes the planning of an underground exploration drift (decline). An exploration drift would provide access for tighter-spaced underground drilling aimed at further resource definition and, in parallel with technical studies, support advancement toward Mineral Reserve estimation. Permitting and early development planning is ongoing, and construction of an exploration drift could commence as early as 2026. In November 2024, Orla submitted permit applications to Mexico's environmental and natural resources agency, SEMARNAT (Mexico's Secretaría del Medio Ambiente y Recursos Naturales). These included amendments to the existing oxide open pit permit. Orla also requested permits for an underground portal and exploration drift to support a potential transition to underground mining at Camino Rojo. The underground portal would be established within the current final open pit. Preliminary Economic Study Engineering and metallurgical studies are currently underway and will intensify and expand, with the objective of delivering a Preliminary Economic Assessment (PEA) in 2026. This PEA is expected to provide a conceptual operational plan and demonstrate the potential value for the development of the underground operations at Camino Rojo. Development Planning While establishing the plan for an exploration decline, Orla will continue metallurgical testing and other technical work with the goal of quickly progressing into feasibility level studies and final permitting for the complete underground operations and the required surface facilities. The aim of the conceptual development plan allows for a seamless transition from open pit mining to underground operations at Camino Rojo. Camino Rojo Deposit: The Camino Rojo deposit comprises three continuous zones with distinct characteristics: The Camino Rojo Oxide Deposit ("Camino Rojo Oxides"), The Camino Rojo Sulphide Deposit ("Camino Rojo Sulphides", or "Sulphides"); and Zone 22 (Figure 2a), an extension of the Sulphides. Longitudinal Sections of the Camino Rojo deposit show the three mineralized zones and new resource block model (Figure 2a), as well as the distribution of gold grades (Figure 2b). The Camino Rojo Oxide zone extends from surface to a vertical depth of approximately 250 metres, covering 900 metres along strike and up to 400 metres in width. The Camino Rojo Sulphide zone lies between 250 and 700 metres below surface (or up to one kilometre down plunge), extending approximately one kilometre along strike and up to 400 metres in width. Zone 22 mineralization has been defined over 500 metres along strike, extending from 700 to 1,300 metres vertical depth below surface (or over 1.2 kilometres down plunge), within a width of 200 to 400 metres, predominantly concentrated along and extending from the dike structure. Figure 3 is a representative cross-section of Zone 22, showing gold mineralization within the different host rock formations. Camino Rojo Oxide and Sulphides Geological Controls The Camino Rojo Oxide and Sulphides zones are predominantly hosted within flat-lying to gently dipping graded sandstone to mudstone beds of the Caracol Formation (Fm), as well as within a steeply northwest-dipping diorite dike. The dioritic dike shows true thicknesses ranging from tens of centimetres to tens of metres, reaching up to 24 metres, with an average of approximately seven metres. Both the Caracol Formation and diorite dike have undergone potassic alteration, predominantly characterized by pervasive adularia alteration. Gold mineralization in the Camino Rojo Sulphides zone is controlled by mutually crosscutting, centimetre-scale Au-Ag-Zn±Pb-bearing veins that dip moderately to steeply northwest and shallowly southwest. These vein sets define gold-bearing mineralized domains that are up to tens of metres thick. In the northeastern portion of the deposit, gold-bearing veins crosscut the dioritic dike. Down plunge, to the southwest and toward the base of the Caracol Formation, these veins continue to crosscut the dike and locally exploit the intrusive contact. Oxidation is pervasive within the upper 150-200 metres of the deposit, transitioning to sulphide mineralization between 200 and 250 metres below surface. However, oxidation extends as deep as 650 metres along structures. Zone 22: Initial drilling to resource in two years; open for upgrade and expansion Ongoing exploration at Camino Rojo continues to expand the deposit's footprint and refine geological understanding, defining additional mineralization beyond the currently outlined mineral resource. Drilling by Orla, guided by the updated geological model, has confirmed that mineralization extends into lower stratigraphic units, showing styles distinct from those hosted in the overlying Caracol Formation. Zone 22, which represents the vertical and down-plunge continuation of the Camino Rojo Sulphides, has been drilled to nearly one kilometre below the Caracol Formation, extending into the limestone-rich Indidura, Cuesta del Cura, La Peña, and Cupido formations. The zone remains open at depth and down-plunge. To date, mineralization has been identified across all rock formations exposed or drilled at Camino Rojo. The Indidura Formation marks the transition to semi-massive to massive sulphide (Au-Ag-Zn) replacement along bedding (manto) and dioritic dike margins. Individual manto intersections are typically decimetre-scale and are traceable for up to 300 metres along strike and up to 150 metres into the hanging wall and footwall of the dike. Calc-silicate skarn alteration and associated Au-Ag-Cu mineralization are constrained to a halo along the hanging wall and footwall of the dike, extending tens of metres from the dike. Metallurgical Test work and Recovery Model: Metallurgical testing of the Camino Rojo deposit has been conducted through multiple programs by previous operators. Since 2021, Orla has focused on defining optimal recovery processes and maximizing metal recoveries from higher-grade zones suitable for underground mining. This has included bottle roll, flotation, and oxidation test work on both master composite and variability samples from the Camino Rojo Sulphides. All Orla metallurgical studies for the Camino Rojo Sulphides have been completed by Blue Coast Research of Parksville, Canada under the guidance of Andrew Kelly, Based on the metallurgical testing results to date, three conceptual mineral resource process streams have been identified that inform the recovery model assumptions of the Camino Rojo underground mineral resource (Measured, Indicated, Inferred): Heap leach (existing infrastructure), 3% of the tonnage of the underground Mineral Resource, with gold recovery ranging from 40% to 70% Carbon-in-leach (CIL), 27% of the tonnage of the underground Mineral Resource, with a mean gold recovery of 92%, and a mean silver recovery of 36% CIL with Pressure Oxidation (POX): 70% of the tonnage of the underground Mineral Resource, with a mean gold recovery of 85%, and a mean silver recovery of 41%. A separate zinc concentrate can be produced prior to POX with zinc recovery of 80% expected from the highest-grade zones. Figures 4 and 5 illustrates the resource block model based on these three process streams in cross-sectional and longitudinal views, respectively. While some material in the Caracol-hosted mineralization may require POX as a pre-treatment, initial metallurgical results from variability testing in Zone 22 are encouraging, with cyanidation tests returning high gold recoveries, and flotation results demonstrating high zinc recovery at reasonable concentrate grades. Previous news releases outlining Orla's metallurgical test programs and results for Caracol and Zone 22 mineralization are available on the company's website, or under Orla's profile on SEDAR+ at or and on EDGAR at Metallurgical test work is continuing in 2025 to support the planned 2026 PEA, which would include a flow sheet for optimal treatment of the Camino Rojo mineralization. Mineral Resource Details The Camino Rojo underground Mineral Resource was estimated in accordance with the 2014 CIM Definition Standards on Mineral Resources and Reserves, and the 2019 CIM Best Practice Guidelines for the Estimation of Mineral Resources and Mineral Reserves. Geological modeling was completed by Orla in collaboration with SLR Consulting (Canada) Ltd, integrating data from over 400,000 metres of core and 28,000 metres of reverse circulation (RC) drilling. This includes approximately 85,000 metres of drilling performed by Orla between 2020 and 2024. The estimate was generated using inverse distance cubed (ID³) and inverse distance squared (ID2) interpolation, incorporating capping and outlier restriction of composites to limit the influence of high-grade outliers for gold (Au), silver (Ag), and zinc (Zn). Interpolations were constrained by mineralization domains corresponding to the different styles observed in both the oxide zone (including Kp alteration, high-grade veins, and low-grade shell) and the sulphide zone (including high-grade veins, mantos, skarn, and low-grade shell). Figure 6 presents the Camino Rojo mineral resource block model, classified as Measured, Indicated and Inferred categories. An updated technical report on Camino Rojo (the "Technical Report"), which will contain the Mineral Resource estimate discussed in this release, will be filed within 45 days of the date hereof in accordance with NI 43-101. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. Data Verification Marie-Christine Gosselin, Senior Resource Geologist at SLR Consulting (Canada) Ltd and the Qualified Person for the Camino Rojo Mineral Resource estimate, visited the site from January 22 to 25, 2024. During the visit, collar locations were verified, along with core storage, security, and sampling procedures. Core from both mineralized and unmineralized zones was examined. The database was reviewed and considered suitable for Mineral Resource estimation. Sampling and assay data from the drill core are monitored through a quality assurance–quality control ("QA/QC") program designed to follow industry best practices. Qualified Persons Statement The scientific and technical information in this news release related to the mineral resource estimate was reviewed and approved by Marie-Christine Gosselin, Senior Resource Geologist with SLR Consulting (Canada) Ltd, who is a Qualified Person as defined under NI 43-101. The contents of this news release pertaining to the metallurgical test program were provided, reviewed and approved by Andrew Kelly, of Blue Coast Research Ltd., who is a Qualified Person as defined under NI 43-101. All other scientific and technical information in this news release was also 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. Quality Assurance / Quality Control. For additional information on the Company's previously reported drill results, see the Company's news releases dated February 4, 2021 (Orla Mining Provides Exploration Update), September 12, 2022 (Orla Mining Advances Exploration & Growth Pipeline), January 31, 2023 (Orla Mining Continues to Intersect Wide, Higher-Grade Sulphide Zones and Expose Deeper Potential at Camino Rojo, Mexico), February 7, 2024 (Orla Mining Concludes 2023 Camino Rojo Sulphides Infill Program with Strong Results), June 26, 2024 (Orla Mining Reports Positive Drilling Intersections and Metallurgical Results at Camino Rojo Sulphide Extensions) and December 10, 2024 (Orla Expands High-Grade Mineralization 800 Metres Beyond Current Resource in Extension Drilling at Camino Rojo, Mexico). Historical drill results at Camino Rojo were completed by Goldcorp. Inc. ("Goldcorp"), a prior owner of the project. The independent Qualified Person for the mineral resource estimate, Marie-Christine Gosselin, Senior Resource Geologist with SLR Consulting (Canada) Ltd, was of the opinion that the drilling and sampling procedures for Camino Rojo drill samples by Orla (and prior to its acquisition by Goldcorp, Canplats Resources Corporation) were reasonable and adequate for the purposes of the Mineral Resource estimate, and that the QA/QC program meets industry standards. About Orla Mining Ltd. Orla's corporate strategy is to acquire, develop, and operate mineral properties where the Company's expertise can substantially increase stakeholder value. The Company has three material projects, consisting of two operating mines and one development project, all 100% owned by the Company: (1) Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine. The property covers over 139,000 hectares which contains a large oxide and sulphide mineral resource, (2) Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years and produced over 6 million ounces of gold, with a long history of resource growth and conversion, and (3) South Railroad, in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada. The technical reports for the Company's material projects are available on Orla's website at and on SEDAR+ and EDGAR under the Company's profile at and respectively. 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 mineral resource estimate; the development plan for the Camino Rojo Underground, including planned drilling and the goals and timing thereof, construction of an exploration drift, publication of a Preliminary Economic Assessment, and permitting; future resource expansion in Zone 22; continued metallurgical testwork to support the planned Preliminary Economic Assessment; and the Company's goals and objectives. 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 future price of gold and silver; anticipated costs and the Company's ability to fund its programs; the Company's ability to carry on exploration, development, and mining activities; the Company's ability to successfully integrate the Musselwhite Mine; tonnage of ore to be mined and processed; ore grades and recoveries; decommissioning and reclamation estimates; currency exchange rates remaining as estimated; prices for energy inputs, labour, materials, supplies and services remaining as estimated; the Company's ability to secure and to meet obligations under property agreements, including the layback agreement with Fresnillo plc; that all conditions of the Company's credit facility will be met; the timing and results of drilling programs; mineral reserve and mineral resource estimates and the assumptions on which they are based; the discovery of mineral resources and mineral reserves on the Company's mineral properties; that political and legal developments will be consistent with current expectations; the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction, and operation of projects; the timing of cash flows; the costs of operating and exploration expenditures; the Company's ability to operate in a safe, efficient, and effective manner; the Company's ability to obtain financing as and when required and on reasonable terms; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change or 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: uncertainty and variations in the estimation of mineral resources and mineral reserves; risks related to the Company's indebtedness and gold prepayment; risks related to exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations; tailings risks; reclamation costs; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; loss of, delays in, or failure to get access from surface rights owners; uncertainties related to title to mineral properties; water rights; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; financing risks and access to additional capital; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility studies; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold and silver; risks related to the Cerro Quema Project; unknown labilities in connection with acquisitions; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; litigation risks; the Company's ability to identify, complete, and successfully integrate acquisitions; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; the Company not having paid a dividend; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of Sarbanes–Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company (PFIC) for U.S. federal income tax purposes; information and cyber security; the Company's significant shareholders; gold industry concentration; shareholder activism; other risks associated with executing the Company's objectives and strategies; 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 18, 2025, which are available on and 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 This news release has been prepared in accordance with Canadian standards for the reporting of mineral resource and mineral reserve estimates, which differ from the previous and current standards of the United States securities laws. In particular, and without limiting the generality of the foregoing, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "inferred mineral resources", "indicated mineral resources", "measured mineral resources" and "mineral resources" used or referenced in this news release are Canadian mineral disclosure terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"). For United States reporting purposes, the United States Securities and Exchange Commission ("SEC") has adopted amendments to its disclosure rules (the "SEC Modernization Rules") to modernize the mining property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934, as amended. The SEC Modernization Rules more closely align the SEC's disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101, and replace the historical property disclosure requirements for mining registrants that were included in Industry Guide 7 under the U.S. Securities Act. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multijurisdictional disclosure system (MJDS), the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and provides disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained in this news release may not be comparable to similar information disclosed by United States companies. 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 Definition Standards that are required under NI 43-101. While the above terms are "substantially similar" to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. 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. Accordingly, information contained in this news release may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. SOURCE Orla Mining Ltd. 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Orla Mining Delivers Initial Underground Mineral Resource for Camino Rojo in Mexico, Paving the Way for Future Development Planning
3.95 Moz Measured & Indicated & 0.40 Moz Inferred Gold Mineral Resources VANCOUVER, BC, June 5, 2025 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide the first underground Mineral Resource estimate for the Company's Camino Rojo deposit located in Zacatecas, Mexico, representing a down plunge extension from the oxide open pit. This news release presents the initial underground Mineral Resource estimate for the Camino Rojo deposit, incorporating mineralization hosted in the Camino Rojo Sulphides and extending into the underlying Zone 22 (Figures 1, 2a). Zone 22 represents the vertical and down plunge continuation of the Camino Rojo sulphide mineralization. Summary Highlights: Measured and Indicated Mineral Resource: 50.1 Mt at 2.45 g/t Au, 10.6 g/t Ag, and 0.25% Zn, averaging 2.58 g/t AuEq, totaling 3.95 Moz Au, 17.05 Moz Ag, 278 Mlbs Zn, and 4.16 Moz AuEq. Inferred Mineral Resource: 5.6 Mt at 2.21 g/t Au, 10.9 g/t Ag, and 0.21% Zn, averaging 2.33 g/t AuEq, totaling 0.40 Moz Au, 1.95 Moz Ag, 26 Mlbs Zn, and 0.42 Moz AuEq. Zone 22 accounts for only 7% (0.29 Moz AuEq) of the current underground Indicated Mineral Resource and 19% (0.08 Moz AuEq) of the current underground Inferred Mineral Resource. This represents only a portion of the defined mineralization in Zone 22, with drilling ongoing. The 2025 drilling results from Zone 22 will be incorporated in future resource updates. Recovery model supported by ongoing metallurgical work: The mineral resource is divided into three spatially distinct zones, each with specific processing options for the Caracol-hosted mineralization: heap leaching (3%); cyanidation (CIL) (25%); and flotation followed by pressure oxidation ("POX") as a pre-treatment prior to cyanidation (CIL with POX) (72%). These zones inform the resource recovery assumptions. Initial metallurgical testing indicates that material from Zone 22 is amenable to both cyanide leaching and flotation. Development strategy to advance the initial underground Mineral Resource towards possible future construction decision. This includes additional exploration, development planning for an exploration drift to allow for tighter spaced underground drilling, flowsheet design, further metallurgical testing, engineering studies, and permitting activities. "This initial underground resource marks an important milestone at Camino Rojo. When we acquired the project, the scale of the mineralized system was clear, but the path forward was uncertain. This resource crystallizes our belief in the potential for a future underground operation. Our team has taken a systematic approach, and we will now look to increase confidence and establish a clear path to construction." – Jason Simpson, President and CEO "Over the past few years, our efforts have focused on drilling the sulphide zone, improving the geological model, and extending mineralization down-plunge in the newly discovered Zone 22. We have now delivered a significant initial underground resource, a key milestone that will inform an upcoming Preliminary Economic Assessment and establish the foundation for potential long-term production at Camino Rojo. The deposit remains open down plunge and at depth, and we remain committed to continued exploration and unlocking the full potential of Camino Rojo." – Sylvain Guerard, Senior Vice President, Exploration Initial Underground Camino Rojo Mineral Resource Estimate: The underground resource, including the Camino Rojo Sulphides and Zone 22, extends from the base of the oxide pit to approximately 1,200 metres below surface (or up to 1,300 metres down plunge from the pit base), covering up to one kilometre along strike and 200 to 400 metres in width (Figures 2a, 2b, 3). The Mineral Resource estimate, prepared by SLR Consulting (Canada) Ltd, includes a resource panel constrained Measured and Indicated Mineral Resource totalling 50.1 Mt at 2.45 g/t Au, 10.6 g/t Ag and 0.25% Zn, equating to 2.58 g/t AuEq. Contained metal amounts to 3.95 Moz gold, 17.05 Moz silver and 278 Mlbs zinc, totalling 4.20 Moz AuEq. The Inferred Mineral Resource totals 5.6 Mt at 2.21 g/t Au, 10.9 g/t Ag and 0.21% Zn, equating to 2.33 g/t AuEq. Contained metal amounts to 0.40 Moz gold, 1.95 Moz silver and 26 Mlbs zinc, resulting in a total of 0.42 Moz AuEq. See Table 1 and Figures 4 to 6 for details. The Mineral Resources reported for Zone 22 are constrained within underground resource panels below the Caracol Formation, which represent the vertical and down plunge continuation of the Camino Rojo sulphide mineralization. Zone 22 has been drilled to nearly one kilometre below the Caracol Formation and remains open at depth and down-plunge. Table 1: Camino Rojo Underground Mineral Resource Estimate: Mineral Resources Notes: 1. CIM (2014) definitions were followed for Mineral Resources. The mineral resource estimate for Camino Rojo has an effective date of March 31, 2025. 2. The Qualified Person responsible for the mineral resource estimate is Marie-Christine Gosselin, Senior Resource Geologist of SLR Consulting (Canada) Ltd. 3. Mineral resources are estimated using a long-term price of US$2,300 /oz gold, US$1.25 /lb zinc and US$29 /oz silver and the following smelter terms: for oxide 99.9% payable Au and 98% payable Ag, and for sulphide 95% payable Au, 90% payable Ag and 95% payable Zn. Offsite costs (refining, transport and insurance) of US$145 /wmt transportation and US$230 /dmt treatment; a 2.5% NSR royalty. 4. Metallurgical recoveries vary according to geometallurgical domains from heap leach, CIL, and flotation CIL with POX and are either constant or formula based. Heap leach recoveries range from 40% to 70% for gold and from 11% to 34% for silver. For CIL and CIL with POX, gold and silver recoveries are calculated using grade dependent formulae. The underground CIL mean recovery is 92% for gold and 36% for silver. The underground CIL with POX mean recovery is 85% for gold and 41% for silver. Zinc recovery by flotation is 80%. 5. Mineral Resources are estimated in underground resource panels using NSR cut-off grades of 59.02 US$/t for leach material, 68.73 US$/t for CIL material, and 76.23 US$/t for CIL w/POX material. Underground resource panels have a minimum width of 2m. 6. The NSR for heap leach material is calculated with the following formula: NSR ($/t) = US$71.98 x Au recovery x Au grade + US$0.84 x Ag recovery x Ag grade (g/t). The NSR for CIL material is calculated with the following formula: NSR ($/t) = US$68.34 x Au recovery x Au grade (g/t) + US$0.73 x Ag recovery x Ag grade (g/t). The NSR for CIL w/POX material is calculated with the following formula: NSR ($/t) = US$68.34 x Au recovery x Au grade (g/t) + US$0.73 x Ag recovery x Ag grade (g/T) + US$0.00146 x Zn recovery x Zn grade (ppm). 7. The gold equivalent (AuEq) for heap leach material is calculated with the following formula: Au grade (g/t) + (US$0.84 x Ag recovery x Ag grade (g/t)) /(US$71.98 x Au recovery). The AuEq for CIL material is calculated with the following formula: Au grade (g/t) + (US$0.73 x Ag recovery x Ag grade (g/t)) / (US$68.34 x Au recovery). The AuEq for CIL w/POX material is calculated with the following formula: Au grade (g/t) + (US$0.73 x Ag recovery x Ag grade (g/t)) / (US$68.34 x Au recovery) + (US$0.00146 x Zn recovery x Zn grade (ppm)) / (US$68.34 x Au recovery). 8. Numbers may not add due to rounding. The Mineral Resource estimate includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The following factors, among others, could affect the mineral resource estimate: commodity price and exchange rate assumptions, pit slope angles, assumptions used in generating the resource pit shell and underground resource panels, including metal recoveries, and mining and process cost assumptions. Evolution of Camino Rojo Deposit: Orla's north-to-south drilling programs from Q4-2020 to Q4-2024, together with historical drilling data, have been instrumental in enhancing the geological model. This work has significantly refined the understanding of the distribution and geometry of sulphide-bearing veins hosted within the Caracol Formation, which includes both the oxide and much of the sulphide mineralization (except for Zone 22). Zone 22 had previously been partially intersected by historical drilling but lacked a supporting geological model to define its geometry or potential extension into the deeper carbonate-rich formations below the Caracol Formation. Orla's updated model enabled strategic drilling along a section drilled in 2023, targeting the down-plunge extension of the deposit. This drilling confirmed the model and supported follow-up drilling in 2024 to define and expand Zone 22. Initially, the development path for the sulphide component of the Camino Rojo deposit was conceived as a large open pit operation. However, initial estimates by previous operators, and later by Orla, indicated that such a scenario would require significant waste stripping, extension of the projected open pit onto a third-party property that Orla does not own, and construction of a large processing facility. The underground development scenario offers a more focused, high-value approach. This strategy involves selectively targeting higher-grade and more metallurgically favourable portions of the deposit (those amenable to direct cyanide leaching) as an initial phase of mining. Subsequent phases would address mineralization requiring pre-treatment, such as pressure oxidation, prior to cyanidation. Additionally, the underground development could operate in parallel with the ongoing oxide open pit. The upcoming PEA is expected to evaluate the underground mineral resource as an expansion of the current operation which would allow Orla to retain full project value. Development Pathway / Next Steps: Current and Planned Future Exploration In 2025, Orla is advancing a 15,000-metre drilling program aimed at upgrading and expanding the upper part of the Zone 22 resource, with 11,000 metres drilled to date. Visual drill intercepts continue to support the geological model and continuity of mineralization. This program is expected to be completed in the third quarter and is anticipated to extend and infill the down-plunge extension. The next phase of exploration to support the possible development of the underground deposit (including Zone 22) includes the planning of an underground exploration drift (decline). An exploration drift would provide access for tighter-spaced underground drilling aimed at further resource definition and, in parallel with technical studies, support advancement toward Mineral Reserve estimation. Permitting and early development planning is ongoing, and construction of an exploration drift could commence as early as 2026. In November 2024, Orla submitted permit applications to Mexico's environmental and natural resources agency, SEMARNAT (Mexico's Secretaría del Medio Ambiente y Recursos Naturales). These included amendments to the existing oxide open pit permit. Orla also requested permits for an underground portal and exploration drift to support a potential transition to underground mining at Camino Rojo. The underground portal would be established within the current final open pit. Preliminary Economic Study Engineering and metallurgical studies are currently underway and will intensify and expand, with the objective of delivering a Preliminary Economic Assessment (PEA) in 2026. This PEA is expected to provide a conceptual operational plan and demonstrate the potential value for the development of the underground operations at Camino Rojo. Development Planning While establishing the plan for an exploration decline, Orla will continue metallurgical testing and other technical work with the goal of quickly progressing into feasibility level studies and final permitting for the complete underground operations and the required surface facilities. The aim of the conceptual development plan allows for a seamless transition from open pit mining to underground operations at Camino Rojo. Camino Rojo Deposit: The Camino Rojo deposit comprises three continuous zones with distinct characteristics: The Camino Rojo Oxide Deposit ("Camino Rojo Oxides"), The Camino Rojo Sulphide Deposit ("Camino Rojo Sulphides", or "Sulphides"); and Zone 22 (Figure 2a), an extension of the Sulphides. Longitudinal Sections of the Camino Rojo deposit show the three mineralized zones and new resource block model (Figure 2a), as well as the distribution of gold grades (Figure 2b). The Camino Rojo Oxide zone extends from surface to a vertical depth of approximately 250 metres, covering 900 metres along strike and up to 400 metres in width. The Camino Rojo Sulphide zone lies between 250 and 700 metres below surface (or up to one kilometre down plunge), extending approximately one kilometre along strike and up to 400 metres in width. Zone 22 mineralization has been defined over 500 metres along strike, extending from 700 to 1,300 metres vertical depth below surface (or over 1.2 kilometres down plunge), within a width of 200 to 400 metres, predominantly concentrated along and extending from the dike structure. Figure 3 is a representative cross-section of Zone 22, showing gold mineralization within the different host rock formations. Camino Rojo Oxide and Sulphides Geological Controls The Camino Rojo Oxide and Sulphides zones are predominantly hosted within flat-lying to gently dipping graded sandstone to mudstone beds of the Caracol Formation (Fm), as well as within a steeply northwest-dipping diorite dike. The dioritic dike shows true thicknesses ranging from tens of centimetres to tens of metres, reaching up to 24 metres, with an average of approximately seven metres. Both the Caracol Formation and diorite dike have undergone potassic alteration, predominantly characterized by pervasive adularia alteration. Gold mineralization in the Camino Rojo Sulphides zone is controlled by mutually crosscutting, centimetre-scale Au-Ag-Zn±Pb-bearing veins that dip moderately to steeply northwest and shallowly southwest. These vein sets define gold-bearing mineralized domains that are up to tens of metres thick. In the northeastern portion of the deposit, gold-bearing veins crosscut the dioritic dike. Down plunge, to the southwest and toward the base of the Caracol Formation, these veins continue to crosscut the dike and locally exploit the intrusive contact. Oxidation is pervasive within the upper 150-200 metres of the deposit, transitioning to sulphide mineralization between 200 and 250 metres below surface. However, oxidation extends as deep as 650 metres along structures. Ongoing exploration at Camino Rojo continues to expand the deposit's footprint and refine geological understanding, defining additional mineralization beyond the currently outlined mineral resource. Drilling by Orla, guided by the updated geological model, has confirmed that mineralization extends into lower stratigraphic units, showing styles distinct from those hosted in the overlying Caracol Formation. Zone 22, which represents the vertical and down-plunge continuation of the Camino Rojo Sulphides, has been drilled to nearly one kilometre below the Caracol Formation, extending into the limestone-rich Indidura, Cuesta del Cura, La Peña, and Cupido formations. The zone remains open at depth and down-plunge. To date, mineralization has been identified across all rock formations exposed or drilled at Camino Rojo. The Indidura Formation marks the transition to semi-massive to massive sulphide (Au-Ag-Zn) replacement along bedding (manto) and dioritic dike margins. Individual manto intersections are typically decimetre-scale and are traceable for up to 300 metres along strike and up to 150 metres into the hanging wall and footwall of the dike. Calc-silicate skarn alteration and associated Au-Ag-Cu mineralization are constrained to a halo along the hanging wall and footwall of the dike, extending tens of metres from the dike. Metallurgical Test work and Recovery Model: Metallurgical testing of the Camino Rojo deposit has been conducted through multiple programs by previous operators. Since 2021, Orla has focused on defining optimal recovery processes and maximizing metal recoveries from higher-grade zones suitable for underground mining. This has included bottle roll, flotation, and oxidation test work on both master composite and variability samples from the Camino Rojo Sulphides. All Orla metallurgical studies for the Camino Rojo Sulphides have been completed by Blue Coast Research of Parksville, Canada under the guidance of Andrew Kelly, Based on the metallurgical testing results to date, three conceptual mineral resource process streams have been identified that inform the recovery model assumptions of the Camino Rojo underground mineral resource (Measured, Indicated, Inferred): Heap leach (existing infrastructure), 3% of the tonnage of the underground Mineral Resource, with gold recovery ranging from 40% to 70% Carbon-in-leach (CIL), 27% of the tonnage of the underground Mineral Resource, with a mean gold recovery of 92%, and a mean silver recovery of 36% CIL with Pressure Oxidation (POX): 70% of the tonnage of the underground Mineral Resource, with a mean gold recovery of 85%, and a mean silver recovery of 41%. A separate zinc concentrate can be produced prior to POX with zinc recovery of 80% expected from the highest-grade zones. Figures 4 and 5 illustrates the resource block model based on these three process streams in cross-sectional and longitudinal views, respectively. While some material in the Caracol-hosted mineralization may require POX as a pre-treatment, initial metallurgical results from variability testing in Zone 22 are encouraging, with cyanidation tests returning high gold recoveries, and flotation results demonstrating high zinc recovery at reasonable concentrate grades. Previous news releases outlining Orla's metallurgical test programs and results for Caracol and Zone 22 mineralization are available on the company's website, or under Orla's profile on SEDAR+ at or and on EDGAR at Metallurgical test work is continuing in 2025 to support the planned 2026 PEA, which would include a flow sheet for optimal treatment of the Camino Rojo mineralization. Mineral Resource Details The Camino Rojo underground Mineral Resource was estimated in accordance with the 2014 CIM Definition Standards on Mineral Resources and Reserves, and the 2019 CIM Best Practice Guidelines for the Estimation of Mineral Resources and Mineral Reserves. Geological modeling was completed by Orla in collaboration with SLR Consulting (Canada) Ltd, integrating data from over 400,000 metres of core and 28,000 metres of reverse circulation (RC) drilling. This includes approximately 85,000 metres of drilling performed by Orla between 2020 and 2024. The estimate was generated using inverse distance cubed (ID³) and inverse distance squared (ID 2) interpolation, incorporating capping and outlier restriction of composites to limit the influence of high-grade outliers for gold (Au), silver (Ag), and zinc (Zn). Interpolations were constrained by mineralization domains corresponding to the different styles observed in both the oxide zone (including Kp alteration, high-grade veins, and low-grade shell) and the sulphide zone (including high-grade veins, mantos, skarn, and low-grade shell). Figure 6 presents the Camino Rojo mineral resource block model, classified as Measured, Indicated and Inferred categories. An updated technical report on Camino Rojo (the "Technical Report"), which will contain the Mineral Resource estimate discussed in this release, will be filed within 45 days of the date hereof in accordance with NI 43-101. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. Data Verification Marie-Christine Gosselin, Senior Resource Geologist at SLR Consulting (Canada) Ltd and the Qualified Person for the Camino Rojo Mineral Resource estimate, visited the site from January 22 to 25, 2024. During the visit, collar locations were verified, along with core storage, security, and sampling procedures. Core from both mineralized and unmineralized zones was examined. The database was reviewed and considered suitable for Mineral Resource estimation. Sampling and assay data from the drill core are monitored through a quality assurance–quality control ("QA/QC") program designed to follow industry best practices. Qualified Persons Statement The scientific and technical information in this news release related to the mineral resource estimate was reviewed and approved by Marie-Christine Gosselin, Senior Resource Geologist with SLR Consulting (Canada) Ltd, who is a Qualified Person as defined under NI 43-101. The contents of this news release pertaining to the metallurgical test program were provided, reviewed and approved by Andrew Kelly, of Blue Coast Research Ltd., who is a Qualified Person as defined under NI 43-101. All other scientific and technical information in this news release was also 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. Quality Assurance / Quality Control. For additional information on the Company's previously reported drill results, see the Company's news releases dated February 4, 2021 (Orla Mining Provides Exploration Update), September 12, 2022 (Orla Mining Advances Exploration & Growth Pipeline), January 31, 2023 (Orla Mining Continues to Intersect Wide, Higher-Grade Sulphide Zones and Expose Deeper Potential at Camino Rojo, Mexico), February 7, 2024 (Orla Mining Concludes 2023 Camino Rojo Sulphides Infill Program with Strong Results), June 26, 2024 (Orla Mining Reports Positive Drilling Intersections and Metallurgical Results at Camino Rojo Sulphide Extensions) and December 10, 2024 (Orla Expands High-Grade Mineralization 800 Metres Beyond Current Resource in Extension Drilling at Camino Rojo, Mexico). Historical drill results at Camino Rojo were completed by Goldcorp. Inc. ("Goldcorp"), a prior owner of the project. The independent Qualified Person for the mineral resource estimate, Marie-Christine Gosselin, Senior Resource Geologist with SLR Consulting (Canada) Ltd, was of the opinion that the drilling and sampling procedures for Camino Rojo drill samples by Orla (and prior to its acquisition by Goldcorp, Canplats Resources Corporation) were reasonable and adequate for the purposes of the Mineral Resource estimate, and that the QA/QC program meets industry standards. About Orla Mining Ltd. Orla's corporate strategy is to acquire, develop, and operate mineral properties where the Company's expertise can substantially increase stakeholder value. The Company has three material projects, consisting of two operating mines and one development project, all 100% owned by the Company: (1) Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine. The property covers over 139,000 hectares which contains a large oxide and sulphide mineral resource, (2) Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years and produced over 6 million ounces of gold, with a long history of resource growth and conversion, and (3) South Railroad, in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada. The technical reports for the Company's material projects are available on Orla's website at and on SEDAR+ and EDGAR under the Company's profile at and respectively. 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 mineral resource estimate; the development plan for the Camino Rojo Underground, including planned drilling and the goals and timing thereof, construction of an exploration drift, publication of a Preliminary Economic Assessment, and permitting; future resource expansion in Zone 22; continued metallurgical testwork to support the planned Preliminary Economic Assessment; and the Company's goals and objectives. 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 future price of gold and silver; anticipated costs and the Company's ability to fund its programs; the Company's ability to carry on exploration, development, and mining activities; the Company's ability to successfully integrate the Musselwhite Mine; tonnage of ore to be mined and processed; ore grades and recoveries; decommissioning and reclamation estimates; currency exchange rates remaining as estimated; prices for energy inputs, labour, materials, supplies and services remaining as estimated; the Company's ability to secure and to meet obligations under property agreements, including the layback agreement with Fresnillo plc; that all conditions of the Company's credit facility will be met; the timing and results of drilling programs; mineral reserve and mineral resource estimates and the assumptions on which they are based; the discovery of mineral resources and mineral reserves on the Company's mineral properties; that political and legal developments will be consistent with current expectations; the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction, and operation of projects; the timing of cash flows; the costs of operating and exploration expenditures; the Company's ability to operate in a safe, efficient, and effective manner; the Company's ability to obtain financing as and when required and on reasonable terms; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change or 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: uncertainty and variations in the estimation of mineral resources and mineral reserves; risks related to the Company's indebtedness and gold prepayment; risks related to exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations; tailings risks; reclamation costs; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; loss of, delays in, or failure to get access from surface rights owners; uncertainties related to title to mineral properties; water rights; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; financing risks and access to additional capital; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility studies; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold and silver; risks related to the Cerro Quema Project; unknown labilities in connection with acquisitions; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; litigation risks; the Company's ability to identify, complete, and successfully integrate acquisitions; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; the Company not having paid a dividend; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of Sarbanes–Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company (PFIC) for U.S. federal income tax purposes; information and cyber security; the Company's significant shareholders; gold industry concentration; shareholder activism; other risks associated with executing the Company's objectives and strategies; 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 18, 2025, which are available on and 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 This news release has been prepared in accordance with Canadian standards for the reporting of mineral resource and mineral reserve estimates, which differ from the previous and current standards of the United States securities laws. In particular, and without limiting the generality of the foregoing, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "inferred mineral resources", "indicated mineral resources", "measured mineral resources" and "mineral resources" used or referenced in this news release are Canadian mineral disclosure terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"). For United States reporting purposes, the United States Securities and Exchange Commission ("SEC") has adopted amendments to its disclosure rules (the "SEC Modernization Rules") to modernize the mining property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934, as amended. The SEC Modernization Rules more closely align the SEC's disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101, and replace the historical property disclosure requirements for mining registrants that were included in Industry Guide 7 under the U.S. Securities Act. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multijurisdictional disclosure system (MJDS), the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and provides disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained in this news release may not be comparable to similar information disclosed by United States companies. 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 Definition Standards that are required under NI 43-101. While the above terms are "substantially similar" to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. 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. Accordingly, information contained in this news release may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. SOURCE Orla Mining Ltd.
Yahoo
14-05-2025
- Sport
- Yahoo
How has Ty Simpson navigated Alabama football quarterback battle? I asked his dad
When Jason Simpson watched his son walk off the bus and into Bryant-Denny Stadium for Alabama football's A-Day practice, Ty Simpson was walking with one of his competitors. Ty Simpson, the redshirt junior quarterback, walked with Keelon Russell, the freshman quarterback and five-star phenom, into his first Crimson Tide spring game. And as both approached the stadium, Jason Simpson saw his son whisper something to Russell. Advertisement 'I asked (Ty) later, 'What did you tell him as y'all were walking in?'' Jason Simpson told the Tuscaloosa News. 'He said, 'I was just telling him, hey, this is a spring game. You got to see it on game day how awesome this place is.'' Ty Simpson knows what an offseason quarterback battle looks like. He's been there. He's done that. With that experience in tow, Simpson left as the leader in the clubhouse. 'At the end of the day, if we're playing a football game tomorrow, Ty Simpson would start,' Alabama offensive coordinator Ryan Grubb said Monday. 'And he earned that, okay? And I know that's the line everybody's looking for, but that is what he earned.' As a dad, Jason Simpson is not surprised by Grubb's proclamation. Jason Simpson has confidence in Ty, the Alabama quarterback who has been there, who's been loyal, and who has put everything into being Alabama's next quarterback. Advertisement But as Jason Simpson, the UT Martin football coach, he also knows Alabama is not his team. It's not his program. He has his own quarterback battle to deal with. Jason Simpson, describing himself as Ty Simpson's number one fan and number one critic, knows what his son's summer looks like before Alabama's quarterback battle ramps back up in August. 'I think you have to be yourself,' Jason Simpson said. 'But now, when it becomes your turn, the torch gets passed on and there's responsibilities you have to be comfortable with.' Ty Simpson 'understands' Alabama football quarterback battle Jason Simpson remembers seeing a change in Ty's demeanor before spring football even started. Advertisement During spring break, Jason and Ty were watching Alabama cut ups and plays with members of a UT Martin coaching staff eager to glean any advantage it could from the Crimson Tide. 'I'd say, 'Ty, how are y'all blocking this up? How are you reading this coverage?'' Jason Simpson said. 'Not only did he know, because sometimes the player can know, but can't teach it. I'm sitting there with seven or eight grown men from my offensive staff in there, and Ty felt comfortable getting up on the board to draw it up. He was able not only to know it himself, but speak it to where people who know football, who coach it on a daily basis, they looked at him like a young coach.' Jason Simpson said Ty's mindset is consistent with how the Alabama football coaching staff teaches scheme, a staff, Jason said, is on the 'cutting edge,' especially after Grubb's hire. It's a staff, Jason said, that is pulling in the same direction, one where he sees a 'great dynamic.' Advertisement 'You can tell they have all worked together before,' Jason Simpson said. 'Everybody's in their role, and there's just a different edge to it now. Because let me tell you, being the quarterback coach and the coordinator, that's a challenge now. Now Nick (Sheridan is) able to spend all that time with his quarterbacks and Grubb is able to see all the details and stuff and give the edge.' Through the coaching staff's comfort with one another, Jason Simpson has seen Ty 'evolve and grow and get better mentally and physically.' And it has become more than just about the quarterback's on-field play. 'I think Ty, he did a good job not getting too high with the highs or too low with the lows,' Jason Simpson said. 'He's been through a quarterback battle before. He understands that it's about taking care of the football and limiting turnovers, ending possessions with a kick, whether it be a field goal or a PAT. Winning games is not about stats, even though you need to play at a high percentage. It's about moving the football team. It's about winning the locker room over and developing relationships with your teammates and being able to demand greatness from each other.' To Jason, Ty Simpson's leadership has been clear. Advertisement Ty, who has been a part of the football team's leadership council since before spring ball started, hosted teammates at his house after A-Day Saturday. As Jason left town, he saw offensive and defensive players alike coming in. As Ty Simpson navigates a quarterback battle, Jason Simpson already sees a quarterback. 'Yeah, you got NIL and you got that money and all that kind of stuff right now,' Jason Simpson said. 'But it's still a team sport. When those four quarters hit and that stadium's loud, man, those relationships, they help you.' Colin Gay covers Alabama football for The Tuscaloosa News, part of the USA TODAY Network. Reach him at cgay@ or follow him @_ColinGay on X, formerly known as Twitter. This article originally appeared on The Tuscaloosa News: Inside look at Ty Simpson place in Alabama football quarterback battle
Yahoo
12-05-2025
- Business
- Yahoo
Orla Mining Reports First Quarter 2025 Financial Results and Provides Updated 2025 Guidance Inclusive of Musselwhite
Musselwhite Addition Increases Orla's Production to 280 – 300 koz in 2025; Aggressive Investment to Enhance Future Growth VANCOUVER, BC, May 12, 2025 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") today announces the results for the first quarter ended March 31, 2025. (All amounts expressed in U.S. dollars unless otherwise stated) First Quarter 2025 Highlights Record quarterly gold production of 47,759 ounces and total quarterly gold sold of 46,356 ounces (pre-released). First quarter all-in sustaining cost1 ("AISC") was $845 per ounce of gold sold (Camino Rojo operations only). Acquisition of Musselwhite completed; integration process advancing. Updated 2025 production and AISC guidance, inclusive of Musselwhite, is 280,000 to 300,000 ounces of gold produced and $1,300 to $1,500 per ounce gold sold, respectively.2 With first quarter production and costs, Orla is currently on plan to achieve full year guidance. Musselwhite investment of $115.0 million of exploration and capital to enhance future growth profile. Net loss for the first quarter was $69.8 million or $(0.22) per share, driven by the fair value adjustments on our financial instruments arising from the Musselwhite acquisition. Adjusted earnings1 for the first quarter were $38.6 million or $0.12 per share. Cash flow from operating activities before changes in non-cash working capital during the first quarter was $401.2 million driven by the proceeds received from the gold prepayment3. Exploration and project expenditure1 was $15.8 million during the quarter, of which $6.9 million was capitalized and $8.9 million was expensed. The Company ended the period with a cash balance of $184.2 million and $450 million in debt. "We are proud of the continued consistency from our team in Mexico where the Camino Rojo Mine remains a strong cash flow generator. This quarter also marked a major milestone with the closing of the Musselwhite acquisition, expanding our presence in Canada, and increasing our annual gold production guidance to 280 – 300 thousand ounces. Over the next two quarters, our focus will be on integrating Musselwhite, laying the foundation for long-term success. Over the next 24 months and beyond, we plan to invest significantly in exploration and provide our new team with the resources to reshape Musselwhite beyond 2030. Our next step of growth will be driven by our U.S. team, where we continue to advance the South Railroad Project in Nevada through permitting and toward construction." - Jason Simpson, President and Chief Executive Officer of Orla _______________________________________ 1 Non-GAAP measure. Refer to the "Non-GAAP Measures" section of this press release. 2 The updated production guidance includes 10 months of operations at the Musselwhite Mine. All-in sustaining cost guidance for Musselwhite is for 9 months from April to December 2025. 3 The Company entered into a $360 million gold prepayment arrangement as part of the Musselwhite acquisition ($360 million upfront in exchange for 144,887 ounces in total gold deliveries over the subsequent three years at an average gold price of $2,834 per ounce). Financial and Operations Update Table 1: Financial and Operating Highlights OperatingQ1 2025 Consolidated Total Gold Produced oz 47,759 Total Gold Sold oz 46,356 Average Realized Gold Price2 $/oz $ 2,915Cash Cost per Ounce2,3 $/oz $ 597 All-in Sustaining Cost per Ounce2,3 $/oz $ 845Camino Rojo, Mexico Ore Stacked tonnes 1,672,826 Stacked Ore Gold Grade g/t 0.78 Gold Produced oz 29,973 Gold Sold oz 30,512Musselwhite, Canada1March'25 Ore Milled tonnes 104,287 Milled Ore Gold Head Grade g/t 5.55 Gold Produced oz 17,786 Gold Sold oz 15,845Financial Revenue $m $ 140.7 Cost of Sales – Operating Cost $m $ 48.3 Net Income (Loss) $m $ (69.8) Adjusted Earnings2 $m $ 38.6 Earnings per Share – basic $/sh $ (0.22) Adjusted Earnings per Share – basic2 $/sh $ 0.12Cash Flow from Operating Activities before Changes in Non-Cash Working Capital $m $ 401.2 Free Cash Flow2 $m $ (404.1)Financial PositionMar 31, 2025 Cash and Cash Equivalents $m $ 184.2 Net Cash (Debt)2 $m $ (265.8) 1 Orla completed the acquisition of Musselwhite on February 28, 2025. Operational figures are provided from March 1, 2025 onwards. 2 Non-GAAP measure. Refer to the "Non-GAAP Measures" section of this news release. 3 Cash cost and AISC for Q1 2025 does not include the operations of Musselwhite Mine, which was acquired on February 28, 2025. Refer to "Non-GAAP Measures" for further discussion. First Quarter 2025 Consolidated Summary Gold produced during the quarter totalled 47,759 ounces, with contributions from the Camino Rojo Oxide Mine and the Musselwhite Mine. While it was only a single month of production contribution from Musselwhite to Orla's account, this total represented a quarterly record for the Company. Gold sold during the quarter totalled 46,356 ounces, also a quarterly record. Cash costs and AISC totaled $597 and $845 per ounce of gold sold, respectively. Cash cost and AISC do not include the impact of Musselwhite. The closing of the Musselwhite transaction during the quarter resulted in one-time, non-cash accounting treatments impacting cost of sales and therefore cash cost and AISC calculation would not be representative of the performance of the mine for that period. Starting in the second quarter, and for the remainder of the year, Musselwhite will be included in the computation of cash cost and AISC. Camino Rojo Operations Summary The Camino Rojo Oxide Gold Mine produced 29,973 ounces of gold in the first quarter of 2025, in-line with plan. During the quarter, Camino Rojo mined nearly 1.9 million tonnes of ore and 2.8 million tonnes of waste, for an implied strip ratio of 1.48. The operations achieved a daily stacking rate of 18.6 thousand tonnes per day at an average gold grade of 0.78 g/t, in line with the mine plan. Gold sold during the first quarter 2025 totaled 30,512 ounces and sustaining capital during the first quarter of 2025 totaled $0.5 million. On November 11, 2024, the Company completed and resubmitted the environmental permit application for the Camino Rojo pit extensions and layback. Since then, Orla has maintained regular engagement with federal and state level stakeholders and continued to engage with employees and communities about the scope of the application. Musselwhite On November 18, 2024, Orla announced the acquisition of the Musselwhite Mine from Newmont Corporation for upfront cash consideration of $810 million and gold-linked contingent consideration of $40 million. The transaction closed on February 28, 2025, and operational figures are provided from March 1, 2025, onwards. During the month of March, Musselwhite mined 108,000 tonnes of ore and milled 104,000 tonnes at a mill head grade of 5.55 g/t gold. Gold recovery rates of 95.7% resulted in gold production of nearly 18,000 gold ounces. Mill throughput in March was 3,360 tonnes per day, a 10% improvement from average mill throughput in February. Project and Exploration Summary In the first quarter, exploration focused on drilling activities at Camino Rojo in Mexico and the South Carlin Complex (including the South Railroad Project) in Nevada. Exploration activities at Musselwhite were reactivated upon closing of the acquisition in March 2025. For the first quarter, a total of 11,008 metres were drilled, with 8,044 metres in Mexico, 549 metres in Nevada and 2,415 metres at Musslewhite. Camino Rojo, Mexico: In Mexico, the Company started the infill drill campaign at Zone 22, the extension of the Camino Rojo Sulphides. The 15,000-metre drill program is expected to be completed in the third quarter of 2025. Results from the current drill program will build on the initial Zone 22 inferred resource, which will be included as part of the upcoming Camino Rojo Mineral Resource update, expected in the second quarter of 2025. A drill campaign to test regional targets started in mid-April. South Railroad Project & South Carlin Complex, Nevada: The South Railroad Project is currently advancing under the guidance of the US Bureau of Land Management (BLM) in accordance with the National Environmental Policy Act (NEPA) for permitting. Orla is encouraged by the current US administration's momentum in advancing American mineral production. This includes the recent Executive Order supporting the development of critical minerals, which now includes gold. Gold is increasingly being recognized for its strategic role in economic resilience and national security. Orla has held constructive meetings with political appointees at the Department of the Interior and the Acting Director of the Bureau of Land Management. The Company appreciates their continued support as the project moves through the permitting process. Orla remains committed to following the proper regulatory pathways, while advocating for an efficient and timely review. The Notice of Intent (NOI) is expected to be published mid 2025, with the Company targeting a Record of Decision (final permitting decision) by mid-2026. Following this approval, construction on the South Railroad Project can advance to the earth movement stage, with first gold production anticipated in 2027. Orla's 2025 exploration program for the South Carlin Complex is focused on increasing near-deposit oxide resources at Pinion and Dark Star, advancing satellite deposits, and discovering new zones of oxide mineralization. Drilling was initiated in the first quarter but paused due to weather conditions and exploration drilling is expected to resume in May. Musselwhite, Ontario: At Musselwhite, underground exploration drilling to expand resources and reserves began in early March and is expected to continue through 2025. Beginning in the second quarter, Orla intends to launch an aggressive surface exploration program, including drilling aimed at confirming the down-plunge extension of the mine trend. This work is intended to expand the resource base and support technical studies for potential future mine expansions. A drill campaign testing near-mine targets with the goal of identifying shallow, near-mine open pit mill feed is planned to start mid-year. 2025 Guidance Summary (Updated) On January 16, 2025, the Company announced its full year 2025 annual guidance, which included the outlook for production, operating costs, capital costs, and exploration spending at Camino Rojo and South Railroad, but which excluded the Musselwhite Mine. On February 28, 2025, the Company completed the acquisition of Musselwhite. The following table provides updated guidance including 10 months of operations at the Musselwhite Mine. Cash cost and all-in sustaining cost guidance for Musselwhite is for 9 months from April to December 2025. The closing of the Musselwhite transaction during the quarter resulted in one-time, non-cash accounting treatments impacting cost of sales and therefore cash cost and AISC calculation would not be representative of the performance of the mine for that period. Therefore, we excluded Musselwhite from cash cost and AISC for the first quarter of 2025. Updated Guidance Preliminary Guidance Gold ProductionCamino Rojo110 - 120 110 - 120 Musselwhite170 - 180 - Total Gold Production Koz 280 - 300 110 - 120 Total Cash Cost1 (net of by-product) Camino Rojo$625 – $725 $625 – $725 Musselwhite - April to December$1,000 - $1,200 - Total Cash Cost (Net of by-product)1 – Consolidated $/oz sold $850 - $1,050 $625 – $725 AISC1 – ConsolidatedCamino Rojo$700 – $800 - Musselwhite - April to December$1,550 - $1,750 - All-In Sustaining Costs1 – Consolidated $/oz sold $1,300 - $1,500 $875 – $975 Capital ExpendituresCamino RojoSustaining capital expenditures$5.0 $10.0 Non-sustaining – (Sulphides + capitalized exploration)$7.0 $7.0 MusselwhiteSustaining capital expenditures$90.0 - Non-sustaining – capitalized exploration$18.0 - South Carlin ComplexNon-sustaining – capital projects$10.0 $10.0 Total Capital Expenditures $m $130.0 $27.0 Exploration and Project Development ExpensesCamino Rojo - Exploration Expense$9.0 $9.0 Musselwhite - Exploration Expense$7.0 - South Carlin Complex - Exploration Expense$15.0 $15.0 South Carlin Complex - Project Development$12.0 $12.0 Total Exploration and Development Expenses $m $43.0 $36.0 Corporate G&A2Corporate General & Administrative Costs$27.0 - Share Based Compensation (non-cash)$6.0 - Total Corporate G&A $m $33.0 - 1 Cash cost and AISC include 9 months of production and costs from Musselwhite, and full year from Camino Rojo and Corporate G&A (inclusive of share-based compensation). Cash costs and AISC are non-GAAP measures. Please refer to the Non-GAAP section of this news release for further detail. 2 Corporate G&A costs include one-time costs associated with the closing of the Musselwhite transaction of approximately $10 million. These costs are excluded from the AISC calculation. Please refer to the Non-GAAP section of this news release for further detail. 3 Exchange rates used to forecast cost metrics include MXN/USD of 19.0 and CAD/USD of 1.35. A +/-1.0 change to the MXN/USD exchange rate would have an impact of +/-$21/oz on AISC. A 0.05 change to the USD /CAD (from 1.35 to 1.4) would have an impact of +/-$52/oz on AISC. Updated Guidance Commentary Orla's updated gold production guidance range includes the Musselwhite operation for the 10-month period under Orla ownership. The production guidance range is 280,000 to 300,000 ounces of gold. AISC guidance for 2025 is in the range of $1,300 to $1,500 per ounce of gold sold, which reflects consolidated production and costs from Camino Rojo, Musselwhite and includes corporate G&A. Camino Rojo & South Railroad The Company has revised the sustaining capital guidance for Camino Rojo to $5 million, down from the preliminary estimate of $10 million, reflecting a decision to expense, rather than capitalize, waste movement activities in alignment with the current operational approach. Otherwise, updated guidance for Camino Rojo and South Railroad remains consistent with preliminary guidance provided in January 2025. Musselwhite Operations Production guidance for Musselwhite is 170,000 to 180,000 ounces of gold. This includes production from March 1, 2025 following the closing of the acquisition. Cash cost and all-in sustaining cost guidance range is $1,000 to $1,200 and $1,550 to $1,750 per ounce of gold sold, respectively, for the nine-month period starting April 1, 2025. Sustaining capital expenditures guidance is $90 million with the majority of the investment relating to underground lateral development and underground mobile equipment in order to improve ore availability and efficiency for future years. Musselwhite Exploration and Evaluation As stated in Orla's April 1, 2025, press release, Orla has launched an aggressive $25 million drill program at Musselwhite for 2025. Of the $25 million, $18 million will be considered non-sustaining capital expenditures and $7 million will be expensed. The 2025 program is as follows: Underground drilling to replace and expand reserves and resources. Directional drilling from surface to prove the open down-plunge extension of the Mine Trend; the first surface program since 2020. Drill testing priority near-mine targets to identify potential new mill feed material. Corporate G&A Total corporate G&A includes regular costs, non-cash share-based compensation, and one-time transaction costs associated with the closing of the Musselwhite transaction which amount to approximately $10 million. Those transaction costs are excluded from the AISC calculation. Please refer to the non-GAAP section. Financial Statements Orla's unaudited financial statements and management's discussion and analysis for the quarter ended March 31, 2025, are available on the Company's website at and under the Company's profiles on SEDAR+ and EDGAR. Qualified Persons Statement 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 the Qualified Persons as defined under NI 43-101 - Standards of Disclosure for Mineral Projects. First Quarter 2025 Conference Call Orla will host a conference call on Monday, May 12, 2025, at 10:00 AM, Eastern Time, to provide a corporate update following the release of its financial and operating results for the first quarter 2025: Dial-In Numbers / Webcast: USA - Toll-Free: +1 (800) 715-9871 USA / International Toll: +1 (646) 307-1963 Canada – Toronto: +1 (647) 932-3411 Canada - Toll-Free: +1 (800) 715-9871 Conference ID: 4940392 Webcast: About Orla Mining Ltd. Orla's corporate strategy is to acquire, develop, and operate mineral properties where the Company's expertise can substantially increase stakeholder value. The Company has three material projects, consisting of two operating mines and one development project, all 100% owned by the Company: (1) Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine. The property covers over 139,000 hectares which contains a large oxide and sulphide mineral resource, (2) Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years and produced over 6 million ounces of gold, with a long history of resource growth and conversion, and (3) South Railroad, in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada. The technical reports for the Company's material projects are available on Orla's website at and on SEDAR+ and EDGAR under the Company's profile at and respectively. NON-GAAP MEASURES We have included herein certain performance measures ("non-GAAP measures") which are not specified, defined, or determined under generally accepted accounting principles ("GAAP"). These non-GAAP measures are common performance measures in the gold mining industry, but because they do not have any mandated standardized definitions, they may not be comparable to similar measures presented by other issuers. Accordingly, we use such measures to provide additional information, and you should not consider them in isolation or as a substitute for measures of performance prepared in accordance with GAAP. In this section, all currency figures in tables are in thousands, except per-share and per-ounce amounts. AVERAGE REALIZED GOLD PRICE Average realized gold price per ounce sold is calculated by dividing gold sales proceeds received by the Company for the relevant period by the ounces of gold sold. Q1 2025 Q1 2024 Revenue$ 140,670 $ 67,278 Silver sales(5,533) (1,310) Gold sales 135,137 65,968 Ounces of gold sold 46,356 32,046 AVERAGE REALIZED GOLD PRICE$ 2,915 $ 2,059 NET CASH (NET DEBT) Net cash (net debt) is calculated as cash and cash equivalents and short-term investments less total debt adjusted for unamortized deferred financing charges at the end of the reporting period. Mar 31, 2025 Dec 31, 2024 Cash and cash equivalents $ 184,231 $ 160,849 Less: Long term debt (450,000) — NET CASH $ (265,769) $ 160,849ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE Adjusted earnings excludes unrealized foreign exchange, changes in fair values of financial instruments, impairments and reversals due to net realizable values, restructuring and severance, and other items which are significant but not reflective of the underlying operational performance of the Company. Q1 2025 Q1 2024 Net income (loss) for the period $ (69,832) $ 17,485 Change in fair values of financial instruments80,725 — Unrealized foreign exchange 2,565 (911) One-time Musselwhite acquisition costs10,215 — Increased costs from inventory fair value adjustment9,769 — Share based compensation related to PSUs2,096 124 Accretion of deferred revenue3,050 122 ADJUSTED EARNINGS$ 38,588 $ 16,820 Millions of shares outstanding – basic 322.4 315.1 Adjusted earnings per share – basic $ 0.12 $ 0.05 Companies may choose to expense or capitalize costs incurred while a project is in the exploration and evaluation phase. Our accounting policy is to expense these exploration costs. To assist readers in comparing against those companies which capitalize their exploration costs, we note that included within Orla's net income for each period are exploration costs which were expensed, as follows: Q1 2025 Q1 2024 Exploration & evaluation expense$ 8,879 $ 4,744 FREE CASH FLOW Free Cash Flow is calculated as the sum of cash flow from operating activities and cash flow from investing activities, excluding certain unusual transactions. Included within the figures for Q1 2025 are $798,504,000 for the acquisition of Musselwhite Mine. Q1 2025 Q1 2024 Cash flow from operating activities$ 411,465 $ 32,406 Cash flow from investing activities(815,549) (8,480) FREE CASH FLOW$ (404,084) $ 23,926 Millions of shares outstanding – basic 322.4 315.1 Free cash flow per share – basic $ (1.25) $ 0.08 CASH COST AND ALL-IN SUSTAINING COST Cash cost per ounce is calculated by dividing the sum of operating costs and royalty costs, net of by-product silver credits, by ounces of gold sold. All-in Sustaining Cost is intended to reflect all the expenditures that are required to produce an ounce of gold from operations. While there is no standardized meaning of the measure across the industry, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Council in its guidance. Because the Musselwhite Mine was acquired on February 28, 2025, and because accounting rules require metal inventory on hand at acquisition date (February 28, 2025) to have been valued on the books at net realizable value (roughly approximating spot, less costs to complete), rather than historical cost which is ordinarily the case, management concluded it could be misleading and therefore it would not be appropriate to report operating cost, cash costs and AISC for Musselwhite Mine for the one month period ended March 31, 2025. Camino Rojo onlyQ1 2025 Q1 2024 Cost of sales – operating costs$ 20,983 $ 18,109 Royalties2,765 1,668 Silver sales(5,533) (1,310) CASH COST$ 18,215 $ 18,467 Ounces of gold sold 30,512 32,046 Cash cost per ounce sold$ 597 $ 576 The following table excludes Musselwhite Mine. Excludes Musselwhite MineQ1 2025 Q1 2024 Cash cost, as above$ 18,215 $ 18,467 General and administrative expenses5,587 3,869 Share based payments1,123 1,331 Accretion of site closure provisions120 112 Amortization of site closure provisions150 136 Sustaining capital 450 4,614 Sustaining capitalized exploration expenses— 413 Lease payments138 199 ALL-IN SUSTAINING COST$ 25,783 $ 29,141 Ounces of gold sold30,512 32,046 All-in sustaining cost per ounce sold$ 845 $ 909 EXPLORATION AND PROJECT DEVELOPMENT COSTS Exploration and project development costs are calculated as the sum of costs related to exploration and to project development. Some of these costs have been expensed, while some of these have been capitalized, in accordance with our accounting policies. Q1 2025 Q1 2024 Exploration and evaluation expense$ 8,879 $ 4,744 Expenditures on mineral properties capitalized6,932 3,876 EXPLORATION AND PROJECT DEVELOPMENT$ 15,811 $ 8,620 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 Company's production and cost outlook, including expected production, AISC, processing throughputs, operating costs, sustaining and non-sustaining capital expenditures, exploration and development expenditures, and general corporate and administrative expenses; the Company's exploration program, including timing, expenditures, and the goals and results thereof; the timing of permitting, construction, and production at South Railroad; the updated mineral resource estimate for Camino Rojo; and the Company's goals and objectives. 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 future price of gold and silver; anticipated costs and the Company's ability to fund its programs; the Company's ability to carry on exploration, development, and mining activities; the Company's ability to successfully integrate the Musselwhite Mine; tonnage of ore to be mined and processed; ore grades and recoveries; decommissioning and reclamation estimates; currency exchange rates remaining as estimated; prices for energy inputs, labour, materials, supplies and services remaining as estimated; the Company's ability to secure and to meet obligations under property agreements, including the layback agreement with Fresnillo plc; that all conditions of the Company's credit facility will be met; the timing and results of drilling programs; mineral reserve and mineral resource estimates and the assumptions on which they are based; the discovery of mineral resources and mineral reserves on the Company's mineral properties; the obtaining of a subsequent agreement with Fresnillo to access the sulphide mineral resource at the Camino Rojo Project and develop the entire Camino Rojo Project mineral resources estimate; that political and legal developments will be consistent with current expectations; the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting, construction, and operation of projects; the timing of cash flows; the costs of operating and exploration expenditures; the Company's ability to operate in a safe, efficient, and effective manner; the Company's ability to obtain financing as and when required and on reasonable terms; that the Company's activities will be in accordance with the Company's public statements and stated goals; and that there will be no material adverse change or 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: uncertainty and variations in the estimation of mineral resources and mineral reserves; risks related to the Company's indebtedness and gold prepayment; risks related to exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations; tailings risks; reclamation costs; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; environmental and other regulatory requirements; delays in or failures to enter into a subsequent agreement with Fresnillo with respect to accessing certain additional portions of the mineral resource at the Camino Rojo Project and to obtain the necessary regulatory approvals related thereto; the mineral resource estimations for the Camino Rojo Project being only estimates and relying on certain assumptions; loss of, delays in, or failure to get access from surface rights owners; uncertainties related to title to mineral properties; water rights; risks related to natural disasters, terrorist acts, health crises, and other disruptions and dislocations; financing risks and access to additional capital; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility studies; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold and silver; risks related to the Cerro Quema Project; unknown labilities in connection with acquisitions; global financial conditions; uninsured risks; climate change risks; competition from other companies and individuals; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; litigation risks; the Company's ability to identify, complete, and successfully integrate acquisitions; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; the Company not having paid a dividend; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of Sarbanes–Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company (PFIC) for U.S. federal income tax purposes; information and cyber security; the Company's significant shareholders; gold industry concentration; shareholder activism; other risks associated with executing the Company's objectives and strategies; 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 18, 2025, which are available on and 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. Past results are not indicative of future performance. SOURCE Orla Mining Ltd. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
