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Orla Mining Increases Gold Mineral Reserves by 54 % With Updated Feasibility Study at the Camino Rojo Oxide Gold Project VANCOUVER , BC , Jan. 11 , 2021 / CNW / - Orla Mining Ltd. ( TSX : OLA ) ( NYSE : ORLA ) ( " Orla " or the " Company " ) is pleased to provide the results of an updated Feasibility Study and mineral reserve estimate on its Camino Rojo Oxide Gold Project ( the " Project " or " Camino Rojo " ) located in Zacatecas , Mexico . The updated Feasibility Study highlights a 54 % increase in contained gold mineral reserves and a 3.5 - year extension to the mine life of the Project , which is currently in construction . The estimated Project after - tax net present value ( " NPV " ) ( 5 % discount rate ) is now $ 452 million with an after - tax internal rate of return ( " IRR " ) of 62 % at a gold price of $ 1,600 per ounce . " The updated Feasibility Study for the Camino Rojo Oxide Project demonstrates an increase in recovered gold , mine life , and cash flows , " stated Jason Simpson , President and Chief Executive Officer of Orla . " An already excellent project has been improved due to the hard work of the entire Orla team and I thank them for their efforts . We are pleased to announce this important enhancement and we will continue to optimize this asset as we move through construction and into production . " Key Updated Feasibility Study Highlights : Table 1 : Feasibility Study Highlights Units Values Throughput Rate per Day tonnes 18,000 Total Ore to Leach Pad Mtonnes 67.4 Gold Grade ( Average ) g / t 0.73 Silver Grade ( Average ) g / t 14.5 Contained Gold ounces 1,588,000 Contained Silver ounces 31,506,000 Average Gold Recovery % 62 % Average Silver Recovery % 20 % Recovered Gold Recovered Silver Mine Life ounces ounces years 980,000 6,189,000 10.4 Average Annual Gold Production ounces 94,000 Strip Ratio waste : ore 0.92 Initial Capex US $ million $ 134 Avg . Life of Mine Operating costs $ / t ore processed $ 8.17 Total Cash Cost ( net of by - product credits ) 1 $ / oz Au $ 490 All - In Sustaining Cost ( " AISC " ) 1 $ / oz Au $ 543 Pre - Tax - NPV ( 5 % discount rate ) US $ million $ 668 Pre - Tax IRR % 82 % After - Tax - NPV ( 5 % discount rate ) After - Tax IRR US $ million $ 452 62 % 1.5 Payback % years 1 Total cash cost and AISC are non - GAAP measures and are net of silver credits and includes royalties payable . See reference below regarding non - GAAP measures . All dollar amounts in US dollars The updated Feasibility Study reflects some of the benefits resulting from a pit expansion made possible through the completion of the layback agreement with Fresnillo Plc ( " Fresnillo " ) announced on December 21 , 2020 ( the " Layback Agreement " ) . Closing of the Layback Agreement is subject to receipt of Mexican antitrust approval from the Federal Competition Commission ( Comisión Federal de Competencia Económica or " COFECE " ) . The Layback Agreement allows Orla to expand the north wall of the oxide pit onto the Fresnillo property immediately adjacent to Orla's mineral concession . This expansion will increase oxide ore available for extraction on Orla's property below the pit outlined in the previous feasibility study dated June 25 , 2019 ( " 2019 Feasibility Study " ) . The increase in mineral reserves in the updated Feasibility Study is derived from the conversion of measured and indicated mineral resources