Orla secures final permit to advance underground mining at Camino Rojo

Orla Mining (TSX: OLA) (NYSE: ORLA) announced Wednesday it has received the environmental impact assessment (EIA) from Mexico’s Secretariat of Environment and Natural Resources (SEMARNAT) for its Camino Rojo mine in Zacatecas, Mexico.  

With this approval, Orla now has all the permits necessary, including the Change of Land Use approval, to mine the remainder of the oxide open-pit, including the layback area, and to begin construction of an underground exploration decline to advance the Camino Rojo underground project.  

Building an underground operation below the existing Camino Rojo open pit would generate a 30% internal rate of return (IRR) at $3,100 per oz. gold over 17 years, Orla told The Northern Miner in February.  

If a $5,000 per oz. gold assumption were used, the NPV would jump to $3.3 billion and IRR to 61%. Initial capital required for this project is pegged at $608 million, while sustaining capital over the life of mine is estimated at $489 million, the company said. 

Orla also said it has filed an updated technical report for the property, and that the EIA grants it full authorization to complete the oxide open pit as outlined in the newly filed technical report. This includes the layback to the north and the east-west expansion, as well as extensions to the waste rock and low-grade stockpiles and associated infrastructure, it said.  

The EIA also authorizes the development of underground access works, including an exploration portal and decline, with work expected to begin as early as the second half of 2026.  

This will enable further resource definition and technical evaluation of the sulphide mineralization beneath the current open pit, a next step toward a potential transition to underground mining at Camino Rojo. 

By market close in Toronto, Orla’s stock was down 10.4%. The company has a C$6.82 billion ($4.9B) market capitalization.