Orla Mining Announces Results of the Updated Feasibility Study and Approves Start of Construction Spending for the South Railroad Project
Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) has announced the results of the updated Feasibility Study (FS) for its South Railroad Gold Project, located in Nevada, USA. The study confirms the project’s strong economics, with a net present value (NPV) of $783 million at a gold price of $3,100 per ounce and an internal rate of return (IRR) of 48%. The project is expected to produce an average of 130,000 ounces of gold per year over the first five years, with an all-in sustaining cost (AISC) of $1,485 per ounce.
The South Railroad Project has a mine life of 10 years, with a total of 66.6 million tonnes of ore to be mined. The project will use a combination of run-of-mine (ROM) and two-stage crushing, with a maximum combined processing rate of 29,940 tonnes per day. The project’s infrastructure will include a heap leach facility, a process plant, and ancillary buildings.
Project Highlights
The updated Feasibility Study highlights the project’s strong economics, with a NPV of $783 million and an IRR of 48% at a gold price of $3,100 per ounce. The project is expected to generate an average annual cash flow of $137 million (pre-tax) and $112 million (after-tax) over the life of the mine. The project’s AISC is estimated to be $1,505 per ounce, with a total cash cost of $1,207 per ounce.
The project’s mineral reserves are estimated to be 66.6 million tonnes, with a gold grade of 0.71 grams per tonne (g/t) and a silver grade of 5.08 g/t. The project’s mineral resources are estimated to be 105.9 million tonnes (measured and indicated) and 55.7 million tonnes (inferred), with a gold grade of 0.72 g/t and a silver grade of 4.56 g/t.
Permitting and Construction
The South Railroad Project is currently in the permitting phase, with the Bureau of Land Management (BLM) expected to issue a Record of Decision (ROD) in mid-2026. The project has already received a positive response from the community, with the majority of public comments being in support of the project.
Construction is expected to begin in mid-2026, subject to the receipt of all necessary permits. The project’s construction is expected to take approximately 18 months to complete, with a total capital cost of $395 million.
Exploration and Growth
Orla Mining has a strong exploration program in place, with a focus on increasing the project’s mineral resources and reserves. The company has completed over 57,800 meters of drilling in 266 holes, with a focus on testing priority targets and delineating extensions of known deposits.
The company believes that the South Railroad Project has significant growth potential, with the Pinion deposit remaining open to the northeast, southeast, and west. The company plans to continue its exploration program, with a focus on adding new mineral resources and reserves to the project.
Conclusion
In conclusion, the updated Feasibility Study for the South Railroad Gold Project confirms the project’s strong economics and significant growth potential. The project is expected to generate strong cash flows and provide a significant return on investment for shareholders. With a strong exploration program in place, the company is well-positioned to increase the project’s mineral resources and reserves, and to become a major gold producer in the region.
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Smart Tip for Readers
When evaluating the potential of a mining project, it’s essential to consider the project’s economics, including its NPV, IRR, and AISC, as well as its growth potential and exploration program. By doing so, investors can make informed decisions and potentially reap significant rewards from their investments.
