4.86 g/t Au, 43.6g/t Ag, 1.27% Zn, 0.44% Pb,
0.09% Cu, (6.25 g/t AuEq) over 11.7
m,
incl. 28.6 g/t Au, 224g/t Ag, 4.35% Zn, 2.89%
Pb, 0.29% Cu, (34.4 g/t AuEq) over 1.7
m
10.3 g/t Au, 37.8 g/t Ag, 3.81% Zn, 0.08% Pb,
0.12% Cu (12.7 g/t AuEq) over 5.6
m,
incl. 17.8 g/t Au, 71.0 g/t Ag, 7.19% Zn, 0.15%
Pb, 0.17% Cu (22.3 g/t AuEq) over 2.9
m
VANCOUVER, BC, Feb. 22,
2024 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") is pleased to provide an
update on its exploration activities on the extension of the Camino
Rojo deposit ("Camino Rojo Extension") in the second half of 2023.
These recent exploration results emphasize that the Camino Rojo
deposit remains open and has substantial upside potential.
Camino Rojo Extension (Mexico) Summary
Historical and recent exploration drilling targeted lower
stratigraphy, beneath the existing resources. In 2023, a drill
section was completed 450 metres down-plunge from the current
mineral resources and revealed significant intersections of
high-grade polymetallic (Au-Ag-Zn) semi-massive to massive
replacement-style mineralization (Figure 1). Recent drilling shows
that the Camino Rojo mineral system extends beyond the current
mineral resource envelope, presenting a considerable opportunity
for resource expansion.
- 2023 Program: The 2023 Camino Rojo Extension drill
program involved extending selected infill drillholes beyond the
currently defined mineral resources and completing a down-plunge
drill section to explore the distal extension into lower
stratigraphy; 2,607 metres of drilling across four drill holes.
Drill results reported in this press release have returned
mineralized intercepts up to 450 metres down plunge of the existing
open pit mineral resource boundaries.
- Initial Metallurgy: The initial carbon-in-leach
(CIL) bottle roll testing within the Camino Rojo Extension on
material from CRSX-22-07 and CRSX-22-08C resulted in impressive
gold recoveries between 81-96%. Flotation testing on the CRSX-22-07
material produced a gold concentrate with 85-88% gold recovery and
a zinc concentrate with zinc grades of 52% and over 85% zinc
recovery, for the polymetallic replacement-style
mineralization.
- 2024 Program: The Company plans to complete a
30,000-metre drill program in 2024 with two objectives: 1) to
infill the down-plunge geometry, continuity, and endowment
potential of mineralization along the projection of the Dike Zone,
and 2) to step out broadly and further assess the extensive upside
potential of this open mineralized system.
"The recent drilling results have added a new dimension to
our near-mine exploration program, unveiling an exciting new
mineralization style in previously disregarded host rocks. With
promising initial metallurgical results and substantial upside
extension potential, we are committed to driving Orla's 2024
exploration efforts towards expansion drilling as we look to unlock
the full potential of the growing Camino Rojo deposit."
- Sylvain Guerard, Orla's
Senior Vice President, Exploration
New polymetallic sulphide replacement style
mineralization
Orla Mining has confirmed and encountered sulphide
mineralization extending beyond the established open pit mineral
resource boundaries at Camino Rojo (Table 1). This drilling and
mineralization is building on an updated geological model and the
success of the previously reported CRSX22-15C hole drilled 200
metres down-plunge from the existing resources (see Table
2 and the Company's June 22,
2023 news release).
The impressive intercepts, both historical and recent, justified
the execution of a new drill section in 2023, targeting 450 metres
down-plunge from the existing resources, along the dike zone
structure (Figures 2-4). This significant step-out drilling
initiative consisted of drilling 2,400 metres, targeting the area
around the positive historical intercept in hole CR12-366D (15.7
g/t Au, 29.0 g/t Ag, 0.73% Zn, 0.10 % Pb, 0.08% Cu (19.6 g/t AuEq)
over 4.5 metres. This new drill section confirmed the presence of
significant polymetallic semi-massive to massive sulphide
mineralization (Figure 4). Significant results from this drill
section are shown in Table 1.
Table 1: Camino Rojo Extension Significant
Intersections
HOLE-ID
|
From
(m)
|
Core
Length (m)
|
Au
g/t
|
Ag
g/t
|
Zn
%
|
Pb
%
|
Cu
%
|
AuEq
g/t
|
CRSX23-22A
|
1047.9
|
11.9
|
2.48
|
34.2
|
1.34
|
0.16
|
0.09
|
3.70
|
incl.
|
1058.1
|
1.7
|
8.23
|
125.0
|
8.32
|
0.91
|
0.28
|
14.35
|
and
|
1066.4
|
5.6
|
10.30
|
37.8
|
3.81
|
0.08
|
0.12
|
12.73
|
incl.
|
1066.4
|
2.8
|
17.82
|
71.0
|
7.19
|
0.15
|
0.17
|
22.34
|
CRSX23-22C
|
1044.9
|
11.7
|
4.86
|
43.6
|
1.27
|
0.44
|
0.08
|
6.25
|
incl.
|
1044.9
|
1.7
|
28.60
|
224.0
|
4.35
|
2.89
|
0.29
|
34.75
|
and
|
1063.6
|
4.4
|
3.02
|
27.0
|
1.28
|
0.03
|
0.10
|
4.10
|
incl.
|
1066.5
|
1.5
|
6.50
|
19.5
|
2.92
|
0.02
|
0.07
|
8.20
|
Metal prices used in
gold equivalent calculation: Au = $1,750/oz, Ag = $21 / oz, Zn =
$1.20/lb, Pb = $0.90/lb, Cu = $3.50/lb. All prices in USD. No
recovery factor was used in calculation of gold
equivalent.
|
Positive Initial Metallurgical Results
Orla completed an initial metallurgical testing program in 2023,
using drill core material from holes CRSX22-07 and CRSX22-08C (see
Table 2) which intersected polymetallic replacement-style
mineralization during the 2022 program. The metallurgical results
on material from CRSX-22-07 and CRSX-22-08C were positive with high
gold recovery reported in both CIL bottle roll tests between 81-96%
and rougher flotation on the CRSX-22-07 material produced a gold
concentrate with 85-88% gold recovery. Open-circuit zinc cleaner
tests on material from CRSX-22-07 produced a zinc concentrate with
zinc grades of 52% and over 85% zinc recovery. These results
suggest this new style of mineralization may be amenable to both
standard cyanide processing and flotation. Orla plans to further
explore these promising results through additional metallurgical
test work in 2024.
Background
Historical context: Wide-spaced drill intersections of
polymetallic (Au-Ag-Zn) replacement-style mineralization were
encountered in historical holes beneath the Caracol formation, but
the relationship between these intersections and the Camino Rojo
sulphides deposit was uncertain, partly due to the lack of a
comprehensive geological model for the deeper part of the
mineralized system.
2022 program: Part of the 2022 infill program targeted
deeper parts of the mineral resource hosted within the upper
Indidura formation. This drilling intersecting polymetallic
(Au-Ag-Zn) mineralization, similar to the wide-spaced historical
intercepts, up to 50 metres below the contact between Caracol and
Indidura formations. These results provided confidence that the
mineralized system likely continued lower.
2024 Drill Program
The 2024 Camino Rojo Extension drill program commenced on
January 9th with six drill
rigs currently operational. This program (Figure 5) is comprised of
15,000 metres dedicated to the dike extension target, focusing on
the 500-metre spanning between the current mineral resource and the
CRSX23-22 series of drill holes. An additional 15,000 metres are
allocated to testing open mineralized trends and historical
high-grade intersections, aiming to assess the broader potential of
the growing Camino Rojo Deposit.
Full drill results are available in the Appendix to this news
release and are available at www.orlamining.com.
All metres reported
above are down-hole intervals, with true width estimates ranging
from 72-88% of the reported interval. See Table 1 in the Appendix
to this news release for estimated true widths of individual
composites. A standard sampling length of 1.5m is used with a
minimum of 0.5m when required based on geologic contacts. All drill
core is HQ diameter. The reported composites were not subject to
"capping," however a preliminary analysis suggests that only 1 out
of 972 samples from the reported holes exceeded the potential
capping level of 27.0 g/t Au. This sample assayed 28.6 g/t Au. Orla
believes that applying a top cut would have a negligible effect on
overall grades. Composites for the sulphide drilling were
calculated using 1 g/t Au cut-off grade and maximum 6 metres
consecutive waste.
|
Photo 1: CRSX23-22A, 1068.0
m, HQ core. Chalcopyrite – pyrite – pyrrhotite – sphalerite
massive sulphide replacement mineralization (manto-type), hosted in
limestone of Cuesta del Cura formation. Assay returned 20.6 g/t
Au, 103 g/t Ag, 7.7% Zn, 0.2% Pb, 0.2% Cu over 1.7 m.
Photo 2: CRSX23-22C, 1066.8
m, HQ core. Arsenopyrite - pyrrhotite - pyrite – sphalerite
massive sulphide replacement mineralization (manto-type) with
euhedral crystals of sphalerite, hosted in limestone of Cuesta del
Cura. Assay returned 6.50g/t Au, 20g/t Ag, 2.9% Zn, 0.02% Pb,
0.07% Cu over 1.5m.
Photo 3: CRSX23-22C, 1045.4
m, HQ core. Coarse grained galena - pyrrhotite – pyrite –
arsenopyrite – sphalerite massive sulphide mineralization, hosted
in limestone of Cuesta del Cura. Assay returned 28.6g/t Au,
224g/t Ag, 4.4% Zn, 2.9% Pb, 0.3% Cu over 1.7m.
Table 2: Previously reported and historical intercepts,
Camino Rojo Extension
HOLE-ID
|
From
(m)
|
Core
Length (m)
|
Au
g/t
|
Ag
g/t
|
Zn
%
|
Pb
%
|
Cu
%
|
AuEq
g/t
|
Orla Previously
Reported Significant Results from Lower Stratigraphy
|
CRSX22-07
|
777.6
|
22.9
|
4.02
|
12.2
|
1.52
|
0.02
|
0.04
|
4.95
|
incl.
|
777.6
|
6.0
|
9.30
|
18.8
|
3.44
|
0.05
|
0.05
|
11.23
|
CRSX22-08C
|
858.4
|
9.1
|
2.50
|
8.2
|
0.94
|
0.01
|
0.05
|
3.11
|
CRSX23-20B
|
834.0
|
11.5
|
4.08
|
35.8
|
0.18
|
0.02
|
0.09
|
4.73
|
CRSX23-20F
|
1062.8
|
5.2
|
2.69
|
10.0
|
3.88
|
0.03
|
0.04
|
4.70
|
CRSX23-25C
|
922.4
|
0.5
|
13.30
|
21.3
|
12.95
|
0.02
|
0.09
|
19.78
|
CRSX23-25C
|
949.1
|
2.0
|
9.20
|
13.0
|
2.99
|
0.01
|
0.03
|
10.81
|
Orla Hole CRSX23-15C
Drilled 200m from Resources
|
CRSX23-15C
|
965.5
|
8.5
|
3.52
|
26.2
|
3.64
|
0.02
|
0.26
|
5.91
|
and
|
994.5
|
3.3
|
4.54
|
6.7
|
5.49
|
0.01
|
0.06
|
7.28
|
incl.
|
995.4
|
1.2
|
8.00
|
7.6
|
12.50
|
0.01
|
0.11
|
14.13
|
and
|
1048.5
|
1.5
|
15.35
|
6.7
|
4.39
|
0.00
|
0.04
|
17.55
|
Historical Hole
CR12-366D Drilled on same section than Holes CRSX-23-22, A, B,
C
|
CR12-366D
|
1122.0
|
46.5
|
4.04
|
33.5
|
1.27
|
0.05
|
0.14
|
5.25
|
incl.
|
1122.0
|
27.0
|
6.26
|
42.6
|
2.05
|
0.07
|
0.11
|
7.91
|
and
incl.
|
1122.0
|
4.5
|
15.65
|
29.0
|
7.30
|
0.10
|
0.08
|
19.58
|
and
incl.
|
1128.0
|
1.5
|
31.50
|
94.0
|
6.55
|
0.13
|
0.10
|
35.89
|
Other Selected
Historical Intersection Highlights
|
CR13-451D
|
941.0
|
16.5
|
3.01
|
8.6
|
0.82
|
0.01
|
0.04
|
3.55
|
CR13-455D
|
956.0
|
21.0
|
6.12
|
7.4
|
0.05
|
0.02
|
0.08
|
6.35
|
CR14-579D
|
1081.5
|
10.5
|
18.83
|
6.6
|
6.02
|
0.01
|
0.06
|
21.82
|
CR13-454D
|
723.5
|
51.0
|
2.11
|
11.8
|
0.39
|
0.03
|
0.04
|
2.50
|
incl.
|
770.0
|
4.5
|
6.72
|
2.6
|
0.06
|
0.00
|
0.02
|
6.81
|
CRD-021A
|
865.5
|
4.5
|
10.70
|
2.7
|
0.02
|
0.00
|
0.01
|
10.75
|
incl.
|
915.0
|
1.5
|
#####
|
54.0
|
0.00
|
0.06
|
0.02
|
104.70
|
CR13-507DB
|
756.5
|
55.5
|
3.08
|
7.4
|
0.22
|
0.02
|
0.03
|
3.32
|
incl.
|
789.5
|
16.5
|
7.05
|
1.8
|
0.21
|
0.02
|
0.02
|
7.25
|
CR13-453D
|
855.5
|
27.0
|
3.62
|
9.2
|
0.28
|
0.04
|
0.03
|
3.91
|
incl.
|
878.0
|
4.5
|
11.19
|
28.0
|
0.66
|
0.16
|
0.06
|
11.98
|
and
|
894.5
|
33.0
|
1.84
|
30.8
|
0.11
|
0.01
|
0.08
|
2.38
|
incl.
|
911.0
|
1.5
|
9.00
|
421.0
|
0.13
|
0.09
|
0.17
|
14.38
|
CR14-597DG
|
724.5
|
25.5
|
3.68
|
33.6
|
0.30
|
0.70
|
0.02
|
4.49
|
incl.
|
744.0
|
6.0
|
11.49
|
14.6
|
0.47
|
0.03
|
0.03
|
11.94
|
Trace indicates base
metal assay results are less than 0.01%.
|
Metal prices used in
gold equivalent calculation: Au = $1,750/oz, Ag = $21 / oz, Zn =
$1.20/lb, Pb = $0.90/lb, Cu = $3.50/lb. All prices in USD. No
recovery factor was used in calculation of gold
equivalent.
|
Qualified Persons Statement
The scientific and technical information in this news release
has been reviewed and approved by Mr. Sylvain Guerard, P Geo., SVP Exploration of the
Company, who is the Qualified Person as defined under the
definitions of National Instrument 43-101 ("NI 43-101").
To verify the information related to the 2022 and 2023 drilling
programs at the Camino Rojo property, Mr. Guerard has visited the
property in the past year; discussed logging, sampling, and sample
shipping processes with responsible site staff; discussed and
reviewed assay and QA/QC results with responsible personnel; and
reviewed supporting documentation, including drill hole location
and orientation and significant assay interval calculations.
Quality Assurance / Quality Control –
2023 Drill Program
All gold results at Camino Rojo were obtained by ALS Minerals
(Au-AA23) using fire assay fusion and an atomic absorption
spectroscopy finish. All samples are also analyzed for
multi-elements, including silver, copper, lead and zinc using a
four-acid digestion with ICP-AES finish (ME-ICP61) method at ALS
Laboratories in Canada. If samples
were returned with gold values in excess of 10 ppm gold, 100ppm
silver or base metal values in excess of 1% by ICP analysis,
samples are re-run with gold (Au-GRA21) by fire assay and
gravimetric finish or silver and base metal by (OG62) four acid
overlimit methods. Drill program design, Quality Assurance/Quality
Control and interpretation of results were performed by qualified
persons employing a Quality Assurance/Quality Control program
consistent with NI 43-101 and industry best practices. Standards
were inserted at a frequency of one in every 50 samples, and blanks
were inserted at a frequency of one in every 50 samples for Quality
Assurance/Quality Control purposes by the Company as well as the
lab. ALS Laboratories is independent of Orla. There are no known
drilling, sampling, recovery, or other factors that could
materially affect the accuracy or reliability of the drilling data
at Camino Rojo.
The initial metallurgical testing on the Camino Rojo Extension
was completed by Blue Coast Research Ltd. ("Blue Coast"). Blue
Coast is independent of the Company and employs an internal quality
assurance-quality control program consistent with NI 43-101 and
industry best practice.
For additional information on the Company's previously reported
drill results, see the Company's press release dated January 31, 2023 (Orla Mining Continues to
Intersect Wide, Higher-Grade Sulphide Zones and Expose Deeper
Potential at Camino Rojo, Mexico). Historical drill results at
Camino Rojo were completed by Goldcorp. Inc. ("Goldcorp"), a prior
owner of the project. The Company's independent qualified person,
Independent Mining Consultants, Inc. was of the opinion that the
drilling and sampling procedures for Camino Rojo drill samples by
Goldcorp (and prior to its acquisition by Goldcorp, Canplats
Resources Corporation) were reasonable and adequate for the
purposes of the Camino Rojo Report, and that the Goldcorp QA/QC
program met or exceeded industry standards. See the Camino Rojo
Report (as defined below) for additional information.
About Orla Mining Ltd.
Orla is operating the Camino Rojo Oxide Gold Mine, a gold and
silver open-pit and heap leach mine, located in Zacatecas State,
Mexico. The property is 100% owned
by Orla and covers over 160,000 hectares. The technical report for
the 2021 Feasibility Study on the Camino Rojo oxide gold project
entitled "Unconstrained Feasibility Study NI 43-101 Technical
Report on the Camino Rojo Gold Project – Municipality of
Mazapil, Zacatecas, Mexico"
dated January 11, 2021 (the "Camino
Rojo Report"), is available on SEDAR and EDGAR under the Company's
profile at www.sedar.com and www.sec.gov, respectively. Orla
also owns 100% of Cerro Quema located in Panama which includes a gold production
scenario and various exploration targets. Cerro Quema is a proposed
open pit mine and gold heap leach operation. The technical report
for the Pre-Feasibility Study on the Cerro Quema oxide gold project
entitled "Project Pre-Feasibility Updated NI 43-101
Technical Report on the Cerro Quema Project, Province of
Los Santos, Panama" dated January 18, 2022, is
available on SEDAR and EDGAR under the Company's profile at
www.sedar.com and www.sec.gov, respectively. Orla also owns
100% of the South Railroad Project, a feasibility-stage, open pit,
heap leach project located on the Carlin trend in Nevada. The technical report for the 2022
Feasibility Study entitled "South Railroad Project, Form
43-101F1 Technical Report Feasibility Study, Elko County, Nevada" dated March 23, 2022, is available on SEDAR and EDGAR
under the Company's profile at www.sedar.com and www.sec.gov,
respectively. The technical reports are available on Orla's website
at www.orlamining.com.
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 potential
mineralization at Camino Rojo based on the 2023 drill program,
including potential resource expansion and upside potential of the
Camino Rojo Extensions, future processing methods based on
metallurgical test results and statements regarding the Company's
2024 drill program, including the goals thereof. 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; tonnage of ore to be mined and processed; ore
grades and recoveries; decommissioning and reclamation estimates;
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; the impact of the COVID-19 pandemic on the Company's
operations; 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; the Company's dependence on the Camino Rojo oxide mine;
risks related to the Company's indebtedness; risks related to
exploration, development, and operation activities; risks related
to natural disasters, terrorist acts, health crises, and other
disruptions and dislocations, including the COVID-19 pandemic;
foreign country and political risks, including risks relating to
foreign operations and expropriation or nationalization of mining
operations; 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 plc 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; financing risks and access to additional
capital; risks related to guidance estimates and uncertainties
inherent in the preparation of feasibility and pre-feasibility
studies; uncertainty in estimates of production, capital, and
operating costs and potential production and cost overruns; the
fluctuating price of gold and silver; 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 for U.S. federal income tax
purposes; information and cyber security; gold industry
concentration; shareholder activism; and 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 20,
2023, which are available on www.sedarplus.ca and
www.sec.gov. 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
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("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 (the
"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 Exchange Act, which became effective February 25, 2019. 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 SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101 and
the CIM Definition Standards. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
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 SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty and as to whether
they can be mined legally or economically. Therefore, U.S.
investors are also cautioned not to assume that all or any part of
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
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 or under the prior standards of SEC Industry Guide 7.
Appendix: Drill Results
Table 1: Camino Rojo Extension Composite Drill Results
(Composites 1g/t Au cog)
HOLE-ID
|
From
(m)
|
To
(m)
|
Core Length
(m)
|
Estimated True
Width
(m)
|
Au
g/t
|
Ag
g/t
|
Cu
ppm
|
As
ppm
|
Pb
ppm
|
Zn
ppm
|
Mo
ppm
|
AuEq*
g/t
|
Au
GXM
|
AuEq
GXM
|
Au GXM
(TW)
|
Including
10g/t Au HG
|
Litho
|
Met
Code
|
CRSX23-22
|
430.60
|
435.40
|
4.8
|
3.46
|
6.23
|
8.4
|
36
|
2621
|
602
|
700
|
1.2
|
6.39
|
29.89
|
30.66
|
21.56
|
1.6m @ 15g/t
Au
|
430.6 - 431.25
Caracol
431.25 - 432.2 Breccia
432.2 - 435.4 Caracol
|
SX
|
CRSX23-22
|
471.00
|
472.50
|
1.5
|
1.08
|
2.51
|
58.2
|
90
|
1545
|
1550
|
5170
|
2.0
|
3.52
|
3.77
|
5.28
|
2.71
|
|
Caracol
|
FR
|
CRSX23-22
|
489.00
|
490.50
|
1.5
|
1.08
|
1.81
|
4.8
|
37
|
2020
|
68
|
95
|
1.0
|
1.88
|
2.72
|
2.82
|
1.95
|
|
Caracol
|
FR
|
CRSX23-22
|
535.50
|
537.00
|
1.5
|
1.08
|
1.53
|
18.1
|
92
|
1285
|
1375
|
19100
|
2.0
|
2.71
|
2.30
|
4.06
|
1.66
|
|
Caracol
|
SX
|
CRSX23-22
|
550.50
|
556.50
|
6.0
|
4.35
|
1.00
|
61.2
|
70
|
2854
|
3273
|
3721
|
0.9
|
2.03
|
6.00
|
12.21
|
4.35
|
|
Caracol
|
SX
|
CRSX23-22
|
583.50
|
586.50
|
3.0
|
2.19
|
1.79
|
26.7
|
108
|
4265
|
876
|
6880
|
0.8
|
2.48
|
5.38
|
7.45
|
3.92
|
|
Caracol
|
SX
|
CRSX23-22
|
684.00
|
690.00
|
6.0
|
4.32
|
1.77
|
5.5
|
53
|
2994
|
133
|
278
|
1.0
|
1.86
|
10.64
|
11.19
|
7.67
|
|
Caracol
|
SX
|
CRSX23-22
|
1063.50
|
1066.50
|
3.0
|
2.27
|
1.36
|
0.4
|
12
|
12
|
12
|
526
|
3.5
|
1.39
|
4.07
|
4.16
|
3.08
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1100.40
|
1101.50
|
1.1
|
0.83
|
2.64
|
195.0
|
4486
|
9786
|
3682
|
3264
|
1.5
|
5.88
|
2.91
|
6.47
|
2.20
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1106.80
|
1107.30
|
0.5
|
0.44
|
3.71
|
117.0
|
659
|
4850
|
22100
|
33900
|
1.0
|
7.58
|
1.86
|
3.79
|
1.62
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1112.00
|
1113.50
|
1.5
|
1.13
|
1.44
|
7.0
|
106
|
837
|
655
|
3300
|
1.0
|
1.72
|
2.16
|
2.58
|
1.63
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1121.00
|
1122.50
|
1.5
|
1.13
|
1.16
|
0.3
|
13
|
235
|
94
|
353
|
1.0
|
1.18
|
1.74
|
1.78
|
1.32
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1131.90
|
1133.50
|
1.6
|
1.39
|
2.21
|
0.3
|
137
|
51
|
3
|
51
|
0.5
|
2.23
|
3.54
|
3.57
|
3.08
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1138.00
|
1139.30
|
1.3
|
1.13
|
1.41
|
0.5
|
61
|
5
|
4
|
210
|
0.5
|
1.43
|
1.83
|
1.86
|
1.60
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1144.70
|
1147.30
|
2.6
|
2.27
|
2.01
|
48.7
|
780
|
2499
|
5872
|
32366
|
1.0
|
4.43
|
5.24
|
11.53
|
4.57
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22
|
1175.50
|
1179.75
|
4.3
|
3.71
|
1.33
|
70.5
|
2243
|
2356
|
2195
|
1832
|
2.3
|
2.65
|
5.66
|
11.26
|
4.94
|
|
1175.5 - 1177 FG
Intrusives - hdb-bi-pl
1177 - 1179.75 La Peña
|
SX
|
CRSX23-22
|
1226.00
|
1227.10
|
1.1
|
0.96
|
2.13
|
66.5
|
1089
|
1686
|
3906
|
55314
|
3.2
|
5.82
|
2.34
|
6.40
|
2.05
|
|
La Peña
|
SX
|
CRSX23-22A
|
1033.50
|
1035.00
|
1.5
|
1.17
|
1.20
|
12.6
|
1470
|
2010
|
78
|
2500
|
14.0
|
1.67
|
1.80
|
2.51
|
1.40
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22A
|
1047.85
|
1059.70
|
11.9
|
9.25
|
2.48
|
34.2
|
918
|
7777
|
1586
|
13400
|
4.4
|
3.70
|
29.33
|
43.82
|
22.89
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22A
|
1066.40
|
1072.00
|
5.6
|
4.39
|
10.30
|
37.8
|
1172
|
10536
|
795
|
38088
|
2.3
|
12.73
|
57.67
|
71.29
|
45.17
|
0.7m @ 23.8g/t
Au
1.7m @ 20.6g/t Au
|
1066.4 - 1070.4
Cuesta de Cura
1070.4 - 1072 FG Intrusives - hdb-bi-pl
|
SX
|
CRSX23-22A
|
1090.40
|
1096.50
|
6.1
|
5.18
|
1.06
|
4.0
|
385
|
127
|
24
|
2174
|
2.5
|
1.26
|
6.46
|
7.70
|
5.48
|
|
1090.4 - 1091.2
FG Intrusives - hdb-bi-pl
1091.2 - 1096.5 Cuesta de Cura
|
SX
|
CRSX23-22B
|
820.50
|
822.00
|
1.5
|
1.17
|
2.24
|
13.1
|
238
|
2230
|
407
|
509
|
9.0
|
2.47
|
3.36
|
3.70
|
2.62
|
|
Indidura
|
SX
|
CRSX23-22C
|
1044.85
|
1056.50
|
11.7
|
8.94
|
4.86
|
43.6
|
850
|
6053
|
4438
|
12685
|
3.2
|
6.25
|
56.62
|
72.84
|
43.43
|
1.7m @ 28.6g/t
Au
|
Cuesta de
Cura
|
SX
|
CRSX23-22C
|
1063.60
|
1068.00
|
4.4
|
3.38
|
3.02
|
27.0
|
996
|
2311
|
286
|
12811
|
3.0
|
4.10
|
13.31
|
18.03
|
10.21
|
|
Cuesta de
Cura
|
SX
|
CRSX23-22C
|
1084.00
|
1085.50
|
1.5
|
1.15
|
1.44
|
5.7
|
296
|
872
|
143
|
7430
|
2.0
|
1.90
|
2.15
|
2.85
|
1.65
|
|
Cuesta de
Cura
|
SX
|
Criteria: Cut off
grade 1g/t Au, minimum length 1.5m, maximum consecutive internal
waste 6m, if Au grade x length > 1.5 the composite will be
added
|
Price Assumptions:
Au = $1,750/oz, Ag = $21 / oz, Zn = $1.20/lb, Pb = $0.90/lb, Cu =
$3.50/lb.
|
*(Au+Ag+Cu+Zn+Pb)
|
Table 2: Camino Rojo Extension Drill Hole Collars
HOLE-ID
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Depth
(m)
|
CRSX23-22
|
243401.2
|
2675997.4
|
1955.6
|
165.5
|
-76.00
|
1341.5
|
CRSX23-22A
|
243401.2
|
2675997.4
|
1955.6
|
152.3
|
-63.00
|
1140.0
|
CRSX23-22B
|
243401.2
|
2675997.4
|
1955.6
|
181.9
|
-64.28
|
1140.1
|
CRSX23-22C
|
243401.2
|
2675997.4
|
1955.6
|
142.0
|
-63.00
|
1125.2
|
SOURCE Orla Mining Ltd.