Record Quarterly Production and Camino Rojo
Sulphide Development Update
VANCOUVER, BC, Nov. 10,
2022 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") today announces the results
for the third quarter ended September 30,
2022.
(All amounts are in U.S. dollars unless otherwise
stated)
HIGHLIGHTS:
- Record gold production of 28,876 ounces in the third quarter of
2022, and 77,580 ounces year to date.
- Total cash cost and all-in sustaining costs ("AISC") for the
third quarter were $452 and
$594 per ounce of gold
sold1, respectively. Total cost of sales was
$12.0 million.
- Gold production guidance for the full year 2022 has been
increased to a range of 100,000 to 110,000 ounces from 90,000 to
100,000 ounces. AISC guidance for the year has been maintained at
$600 to $700 per ounce of gold sold.
- During the quarter, cash flow from operating activities before
changes in non-cash working capital was $15.5 million, and free cash flow1
totalled $25.2 million. Orla had a
cash balance of $89.1 million at
September 30, 2022.
- Adjusted earnings for the third quarter of $5.7 million or $0.02 per share.
- Net income of $8.9 million or
$0.03 per share, which included
$8.3 million in exploration expensed
across the portfolio.
- Camino Rojo's processing throughput for the third quarter
achieved an average of 19,200 tonnes per day, 107% of nameplate
capacity.
- Completed acquisition of Gold Standard Ventures Corp. ("Gold
Standard"), the owner of the South Railroad Project ("South
Railroad"), a feasibility-stage, open pit, heap leach project
located on the Carlin trend in
Nevada.
|
|
|
1 Cash
cost, AISC, free cash flow and adjusted earnings are non-GAAP
measures. See the "Non-GAAP Measures" section of this news
release for additional information.
|
"Camino Rojo's continued outperformance has given us the
confidence to increase annual production guidance in our first
operating year," said Jason Simpson,
President and Chief Executive Officer of Orla. "During the quarter,
we were also pleased to complete the acquisition of Gold Standard,
strengthening our growth pipeline."
FINANCIAL AND OPERATIONS UPDATE
Table 1: Financial
and Operating Highlights
|
|
Q3 -
2022
|
YTD
2022
|
Operating
|
|
|
|
Gold
Produced
|
oz
|
28,876
|
77,580
|
Gold Sold
|
oz
|
28,749
|
75,064
|
Average Realized Gold
Price1
|
$/oz
|
$1,699
|
$1,810
|
Cost of Sales –
Operating Cost
|
$M
|
$12.0
|
$32.1
|
Cash Cost per
Ounce1,2
|
$/oz
|
$452
|
$446
|
All-in Sustaining Cost
per Ounce1,2
|
$/oz
|
$594
|
$597
|
|
|
|
|
Financial
|
|
|
|
Revenue
|
$M
|
$49.0
|
$136.5
|
Net Income
(loss)
|
$M
|
$8.9
|
$27.1
|
Adjusted
Earnings1
|
$M
|
$5.7
|
$36.5
|
Earnings (loss) per
Share – basic
|
$/sh
|
$0.03
|
$0.10
|
Adjusted Earnings per
Share – basic1
|
$/sh
|
$0.02
|
$0.14
|
|
|
|
|
Cash Flow from
Operating Activities before Changes in Non-Cash Working
Capital
|
$M
|
$15.5
|
$56.0
|
Free Cash
Flow1
|
$M
|
$25.2
|
$70.3
|
|
|
|
|
Financial
Position
|
|
Sept 30,
2022
|
Dec 31,
2021
|
Cash and Cash
Equivalents
|
$M
|
$89.1
|
$20.5
|
Net
Debt1
|
$M
|
$77.5
|
$140.8
|
|
1.
|
"Average Realized Gold
Price", "Cash Cost per Ounce", "All-in Sustaining Cost per Ounce",
"Adjusted Earnings",
"Adjusted Earnings per Share – basic", "Free Cash Flow", and "Net
Debt" are non-GAAP measures. See the "Non-GAAP
Measures" section of this news release for additional
information.
|
2.
|
The Company declared
commercial production at Camino Rojo effective April 1, 2022.
Consequently, the "year to date"
figures for cash cost per ounce and all-in sustaining cost per
ounce are for the period April 1, 2022 to September 30,
2022.
|
CAMINO ROJO OXIDE MINE UPDATE
The Company declared commercial production at Camino Rojo on
April 1, 2022. Camino Rojo
produced 28,876 ounces of gold in the third quarter, 2022. Year to
date gold production totals 77,580 ounces and gold production
guidance for the full year 2022 has been increased to a range of
100,000 to 110,000 ounces. Gold sold during the quarter totalled
28,749 ounces while year to date gold sold amounts to 75,064
ounces.
Mining rates have steadily increased, averaging 44,911 tonnes
per day in the third quarter. The average grade mined, excluding
low grade material that was stockpiled, was 0.77 g/t of gold during
the quarter, which is in line with plan.
Camino Rojo achieved record quarterly processing throughput in
the third quarter 2022. The average daily stacking rate for the
third quarter was 19,200 tonnes per day, which is above the
nameplate capacity of 18,000 tonnes per day. Mined ore tonnes are
reconciling well to the block model and process recoveries to date
are in line with the metallurgical recovery model. Additional
ore is being generated from the conversion of previously modelled
waste tonnes in the upper benches of the pit.
Third quarter cash costs and AISC totalled $452 and $594 per
ounce of gold sold, respectively. The operations have experienced
unit price increases across several key reagents and consumables,
which have been largely offset by lower than budgeted consumption
rates. Capital expenditures totalled $1.8
million in the third quarter which included $0.8 million in sustaining capital. AISC guidance
for 2022 (Q2-Q4) remains unchanged at $600 to $700 per
ounce of gold sold.
CAMINO ROJO SULPHIDE PROJECT UPDATE
Historical drilling on the Camino Rojo Sulphides, conducted by
the previous project owners, indicated the gold grade of the
deposit to be widely disseminated and a large, open-pit mining
scenario was the favoured development pathway. A lower grade open
pit development scenario would necessitate higher capital
expenditures for a large processing facility and extensive material
handling. To understand if an alternative, more targeted
development approach was possible, the presence of higher grades
had to be confirmed. It was interpreted that portions of the
deposit were comprised of higher grade steeply northwest dipping
vein sets. To test for the higher grades and to confirm the
geological model, Orla began drilling into the Camino Rojo
Sulphides in the opposite (south) orientation of historical
drilling. Since the fourth quarter 2020, two phases of drilling
have been conducted with the results indicating the presence of
continuous, higher-grade gold domains which could be amenable to
underground mining, allowing for a smaller processing facility and
less material handling. Most recently, the south oriented Phase 2
drill program has returned higher-grade gold intercepts (>2 g/t)
over wide widths (>30m). These
results are derived from an 8,750-metre drill program being
conducted in 2022, to reinforce the geologic model and to continue
to confirm the continuity of wide zones of higher-grade gold
mineralization. Ten of the 15 diamond drill holes have been
completed. Results from the first five drill holes are available on
the Company's website and in the news release dated September 12, 2022 (Orla Mining Advances
Exploration & Growth Pipeline). Results from the remaining
drill holes are expected in early 2023. Selected significant
results from the first five holes include:
- Hole CRSX22-05: 1.95 g/t Au over 61.2m, incl. 2.05 g/t Au over 19.5m
- Hole CRSX22-06: 2.56 g/t Au over 41.5m, incl. 4.00 g/t Au over 19.5m
- Hole CRSX22-07A: 3.20 g/t Au over 36.6m
- Hole CRSX22-07B: 2.13 g/t Au
over 27.0m, incl. 4.43 g/t Au over
9.5m
- Hole CRSX22-08A: 3.08 g/t Au over 52.5m, incl. 4.37 g/t Au over 28.5m
The first metallurgical results from the Phase 2 drilling
confirm the potential for a standalone processing option for the
Camino Rojo Sulphides, thereby conserving the potential for the
Company to retain 100% ownership in a potential
project2. Metallurgical testing will continue
as each new phase of drill core becomes available.
|
|
|
2 In
the event a project at the Camino Rojo Sulphides has been defined
by the Company through a pre-feasibility study outlining a
development scenario using the existing infrastructure at
Peñasquito, Newmont Corporation ("Newmont") may, at its option,
enter into a joint venture where it would own 70% of the project,
with Orla owning 30%. See the Company's Management's Discussion and
Analysis of the Company as at and for the year ended December 31,
2021, for additional information.
|
Most of the gold mineralization at Camino Rojo has been defined in
the Caracol Formation where auriferous veins are mostly constrained
to a broad envelope of potassic alteration (Kp). Gold
mineralization extends deeper into the underlying Indidura and
Cuesta del Cura formations (and potentially deeper into other
underlying units) along the Dike Zone and Breccia Fault Zone,
suggesting these faults may be feeder-like structures for the
Camino Rojo deposit.
All drill results
presented in Figure 1 are historical in nature and are not treated
by the Company as current. Such results were completed by Goldcorp
Inc., a prior owner of the Camino Rojo Project.
|
During the ongoing Orla Phase 2 drill program, selected holes were
extended to test the continuity of gold mineralization where the
Dike Zone crosscut the Indidura Formation. These drill holes have
returned encouraging visual results (assays pending) of the
sulphide veins crosscutting bedding and associated calc-silicate
alteration within the Indidura Formation. Compilation of historical
drill data has confirmed significant gold intercepts over
significant widths with a similar style of mineralization elsewhere
in the Indidura formation, as well as skarn and calc-silicate
alteration associated with manto-type mineralization with
semi-massive to massive sulphides replacing bedding in the Cuesta
del Cura Formation.
Based on the positive results encountered in the Phase 1 and 2
programs, more closely spaced, south-oriented drilling will be
required to fully capture the extent of a potential underground
resource. To date, approximately 13,868 metres of directional
drilling has been completed which has continued to inform Orla's
perspective on the development approach to the deposit. Orla
expects to provide details of a Phase 3 south-oriented drill
program and metallurgical testwork program in early 2023. This
drilling is expected to strengthen the confidence for a Preliminary
Economic Assessment ("PEA") that contemplates underground mining.
Upon the completion of additional south oriented directional
drilling and testwork programs, a PEA is expected to be completed
based on the optimal development method for Orla.
Drilling during the planned Phase 3 drill program will focus on
infilling the Caracol hosted mineralization (existing resources)
and also follow-up on this new and historical drill data, testing
the down plunge extension potential of the Camino Rojo Sulphide
deposit into the Indidura and Cuesta del Cura formations along the
Dike and Breccia zones as well as further Orla's metallurgical
planning.
GOLD STANDARD ACQUISITION / SOUTH RAILROAD PROJECT
On August 12, 2022, Orla completed
the acquisition of Gold Standard by way of court-approved plan of
arrangement (the "Transaction").
Gold Standard's key asset is the 100%-owned South Railroad
Project, a feasibility-stage, open pit, heap leach project located
on the Carlin trend in
Nevada. A Feasibility Study on
South Railroad was completed in February
2022 and permitting activities are currently underway. As
part of the Transaction, Orla also acquired the Lewis Project
("Lewis"), a large, strategically located, prospective land package
on the Battle Mountain trend in
Nevada. Orla has begun integrating
South Railroad into the Company's growth plans with key priorities
for South Railroad to include project permitting, review of project
schedule including critical path activities, and assessment of
current exploration supporting resource expansion.
Through the remainder of the year, Orla will continue with Gold
Standard's 2022 planned program of resource expansion and
exploration drilling at key targets on the South Railroad Project.
The Company will also commence an additional 5,000 metre RC and
core drill program at South Railroad for an additional $1.5 million, bringing the total 2022 planned
direct drilling cost spending to $3.0
million across 11,370 metres of drilling. The current and
primary objectives are to upgrade and increase oxide resources at
the Pinion SB, LT, POD, Sweet Hollow, Jasperoid Wash, and Dixie
targets.
EXPLORATION PROGRAM
This year, drilling across the portfolio began in April after
preparations and operational ramp-up during the first
quarter.
Regional exploration work at Camino Rojo includes reverse
circulation drilling ("RC") and continued target definition
activities. RC drill testing of near-mine target areas near the
Camino Rojo Oxide Mine is underway, with 40% of the program
completed at September 30, 2022. The
highest priority targets are expected to be drilled along the mine
trend in the fourth quarter, 2022, subject to drill permits being
issued. Phase 2 of the sulphide drill program is underway, with ten
oriented diamond drill holes completed since the program began in
April, the details of which are discussed above.
In the second quarter 2022, the planned drill program at Cerro
Quema commenced with two diamond drill holes completed in La Pelona
target and three holes in La
Prieta targets. Drilling in both target areas has returned
encouraging results and additional drilling will be planned for
2023. Assay results are available in Orla's news release dated
September 12, 2022 (Orla Mining
Advances Exploration & Growth Pipeline).
In the third quarter 2022, infill and expansion drilling at
Caballito focused on converting resources from the inferred
resource to the indicated resource category, providing material for
metallurgical testing, and testing the continuity of mineralization
and potential extensions of this deposit. This drilling, along with
more limited drilling planned at La Pava and Quemita sulphide
deposits, will continue through the fourth quarter 2022.
The initial 2022 exploration budget totalled $15 million, with $10
million allocated to Mexico
and $5 million allocated to
Panama. Supported by the recent
exploration success and following the completion of the acquisition
of Gold Standard, Orla increased the 2022 spending to $18.0 million.
GUIDANCE
On October 11, 2022 the Company
issued a press release increasing production guidance for the full
year 2022 (Orla Mining Provides Third Quarter 2022 Operational
Results and Increases 2022 Annual Production Guidance). The
Company also issued a press release on September 12, 2022, increasing annual exploration
spending for 2022 to $18.0 million
(Orla Mining Advances Exploration & Growth Pipeline).
AISC guidance for the year is maintained at $600 to $700 per
ounce of gold sold.
Table 2: 2022
Operational Guidance and Outlook1
|
|
|
|
|
|
Original
|
Updated
|
Gold
Production
|
oz
|
90,000 –
100,000
|
100,000 –
110,000
|
All-in Sustaining
Costs ("AISC")2,3
|
$/oz Au
sold
|
$600 -
$700
|
$600 -
$700
|
Capital
Expenditures3
|
|
|
|
Sustaining Capital
Expenditures
|
$M
|
$5
|
$5
|
Non-Sustaining Capital
Expenditures
|
$M
|
$20
|
$20
|
Total Capital
Expenditures
|
$M
|
$25
|
$25
|
Exploration3
|
|
|
|
Mexico
|
$M
|
$10
|
$10
|
Panama
|
$M
|
$5
|
$5
|
Nevada
|
$M
|
NA
|
$3
|
Total
Exploration
|
$M
|
$15
|
$18
|
|
|
|
|
|
|
1.
|
The outlook
includes full-year 2022 figures except for AISC which is calculated
from Q2-Q4 2022.
|
2.
|
AISC is a
non-GAAP measure. See the "Non-GAAP Measures" section of
this news release for additional information.
|
3.
|
Exchange rates
used to forecast cost metrics include MXN/USD of 20.0 and CAD/USD
of 1.25
|
CONSOLIDATED FINANCIAL STATEMENTS
Orla's unaudited interim financial statements and management's
discussion and analysis for the three and nine months ended
September 30, 2022, are available on
the Company's website at www.orlamining.com, 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.
THIRD QUARTER 2022 CONFERENCE CALL
Orla will host a conference call on Friday, November 11, 2022, at 10:00 AM, Eastern Time, to provide a corporate
update following the release of its financial and operating results
for the third quarter 2022:
Dial-In Numbers:
Conference
ID:
|
5844017
|
Toll Free:
|
1 (888)
550-5302
|
International:
|
1 (646)
960-0685
|
Webcast: https://orlamining.com/investors/presentations-and-events/
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, 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 Gold Standard Ventures Corp.'s profile at www.sedar.com and
www.sec.gov, respectively. The technical reports are available on
Orla's website at www.orlamining.com.
Non-GAAP Measures
The Company has included certain performance measures in this
news release which are not specified, defined, or determined under
generally accepted accounting principles (in the Company's case,
International Financial Reporting Standards ("IFRS"")). These 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, the Company uses 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 generally accepted accounting principles
("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. The Company believes
the measure is useful in understanding the gold price realized by
the Company throughout the period.
AVERAGE REALIZED
GOLD PRICE
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
|
2022
|
2021
|
|
2022
|
2021
|
Revenue
|
$
49,030
|
—
|
|
$
136,472
|
—
|
Silver sales
|
(191)
|
—
|
|
(607)
|
—
|
Gold sales
|
48,839
|
—
|
|
135,865
|
—
|
Ounces of gold
sold
|
28,749
|
—
|
|
75,064
|
—
|
AVERAGE REALIZED GOLD
PRICE PER OUNCE SOLD
|
$
1,699
|
—
|
|
$
1,810
|
—
|
NET DEBT
Net debt is calculated as total debt adjusted for unamortized
deferred financing charges less cash and cash equivalents and
short-term investments at the end of the reporting period. This
measure is used by management to measure the Company's debt
leverage. The Company believes that in addition to conventional
measures prepared in accordance with IFRS, net debt is useful to
evaluate the Company's leverage.
NET
DEBT
|
|
September 30,
2022
|
December 31,
2021
|
Current portion of long
term debt
|
|
$ 37,200
|
$ 25,293
|
Long term
debt
|
|
129,448
|
136,060
|
Less: Cash and cash
equivalents
|
|
(89,148)
|
(20,516)
|
NET DEBT
|
|
$ 77,500
|
$
140,837
|
ADJUSTED EARNINGS (LOSS)
Adjusted earnings (loss) excludes deferred taxes, 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. We believe these measures are useful to investors because
they are important indicators of the strength of our operations and
the performance of our core business.
ADJUSTED
EARNINGS
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
|
2022
|
2021
|
|
2022
|
2021
|
Net income (loss) for
the period
|
$
8,895
|
$
(9,554)
|
|
$
27,080
|
$
(21,260)
|
Unrealized foreign
exchange
|
(3,212)
|
4,124
|
|
(3,833)
|
2,018
|
Loss on early
settlement of project loan
|
—
|
—
|
|
13,219
|
—
|
ADJUSTED EARNINGS
(LOSS)
|
$
5,683
|
$
(5,430)
|
|
$
36,466
|
$
(19,242)
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
282.5
|
246.0
|
|
261.4
|
239.3
|
Adjusted earnings
(loss) per share – basic
|
$
0.02
|
$
(0.02)
|
|
$
0.14
|
$
(0.08)
|
FREE CASH FLOW
The Company believes certain investors and analysts use Free
Cash Flow to evaluate the Company's operating cash flow capacity to
meet non-discretionary outflows of cash. Net Free Cash Flow is not
meant to be a substitute for the cash flow information presented in
accordance with IFRS. Free Cash Flow is calculated as the sum of
cash flow from operating activities and cash flow from investing
activities, excluding certain unusual transactions.
FREE CASH
FLOW
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
|
2022
|
2021
|
|
2022
|
2021
|
Cash flow from
operating activities
|
$
23,046
|
$
(2,909)
|
|
$
63,475
|
$
(7,655)
|
Cash flow from
investing activities
|
2,194
|
(25,810)
|
|
6,832
|
(102,703)
|
FREE CASH
FLOW
|
$
25,240
|
$
(28,719)
|
|
$
70,307
|
$
(110,358)
|
|
|
|
|
|
|
Millions of shares
outstanding – basic
|
282.5
|
246.0
|
|
261.4
|
239.3
|
Free cash flow per
share – basic
|
$
0.09
|
$
(0.12)
|
|
$
0.27
|
$
(0.46)
|
CASH COST
The Company calculates cash cost per ounce by dividing the sum
of operating costs and royalty costs, net of by-product silver
credits, by ounces of gold sold. Management believes that this
measure is useful to external users in assessing operating
performance. Figures are presented only from April 1, 2022, as the Camino Rojo Oxide Gold Mine
commenced commercial production on that date.
CASH
COST
|
Three months ended
September 30
|
|
Six months ended
September 30
|
|
2022
|
2021
|
|
2022
|
2021
|
Cost of sales –
operating costs
|
$
11,973
|
$
—
|
|
$
22,749
|
$
—
|
Related to previous
quarter
|
—
|
—
|
|
(503)
|
—
|
Royalties
|
1,217
|
—
|
|
2,316
|
—
|
Silver sales
|
(191)
|
—
|
|
(388)
|
—
|
CASH COST
|
$
12,999
|
$
—
|
|
$
24,174
|
$
—
|
|
|
|
|
|
|
Ounces sold
|
28,749
|
—
|
|
54,180
|
—
|
Cash cost per ounce
sold
|
$
452
|
$
n/a
|
|
$
446
|
$
n/a
|
ALL-IN SUSTAINING COST
The Company has provided an AISC performance measure that
reflects 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 dated November
14, 2018. Orla believes that this measure is useful to
external users in assessing operating performance and the Company's
ability to generate free cash flow from current operations. Figures
are presented only from April 1,
2022, as the Camino Rojo Oxide Gold Mine commenced
commercial production on that date.
ALL-IN SUSTAINING
COST
|
Three months ended
September 30
|
|
Six months ended
September 30
|
|
2022
|
2021
|
|
2022
|
2021
|
Cost of sales –
operating costs
|
$
11,973
|
$
—
|
|
$
22,749
|
$
—
|
Related to previous
quarter
|
—
|
—
|
|
(503)
|
—
|
Royalties
|
1,217
|
—
|
|
2,316
|
—
|
Silver sales
|
(191)
|
—
|
|
(388)
|
—
|
General and
administrative
|
2,342
|
—
|
|
4,893
|
—
|
Share based
payments
|
518
|
—
|
|
1,056
|
—
|
Accretion of site
closure provision
|
118
|
—
|
|
235
|
—
|
Amortization of site
closure provision
|
224
|
—
|
|
343
|
—
|
Sustaining
capital
|
759
|
—
|
|
1,417
|
—
|
Lease
payments
|
103
|
—
|
|
226
|
—
|
ALL-IN SUSTAINING
COST
|
$
17,063
|
$
—
|
|
$
32,344
|
$
—
|
|
|
|
|
|
|
Ounces sold
|
28,749
|
—
|
|
54,180
|
—
|
All-in sustaining cost
per ounce sold
|
$
594
|
$
n/a
|
|
$
597
|
$
n/a
|
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 2022
guidance, including production, operating costs and capital costs;
potential development scenarios for the Sulphide Project;
exploration and study work planned at the Sulphide Project and the
timing and results thereof; the Company's other exploration plans,
including timing, expenditures and the goals thereof; and the
Company's expectations regarding advancement, development and
production its projects, including the timing 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 price of
gold, silver, and copper; the accuracy of mineral resource and
mineral reserve estimations; that there will be no material adverse
change affecting the Company or its properties; that all required
approvals will be obtained, including concession renewals and
permitting; that political and legal developments will be
consistent with current expectations; that currency and exchange
rates will be consistent with current levels; and that there will
be no significant 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, including
risks that the interpreted drill results may not accurately
represent the actual continuity of geology or grade of the deposit,
bulk density measurements may not be representative, interpreted
and modelled metallurgical domains may not be representative, and
metallurgical recoveries may not be representative; the Company's
reliance on Camino Rojo and risks associated with its start-up
phase; financing risks and access to additional capital; risks
related to natural disasters, terrorist acts, health crises and
other disruptions and dislocations, including by the COVID-19
pandemic; risks related to the Company's indebtedness; success of
exploration, development, and operation activities; foreign country
and political risks, including risks relating to foreign operations
and expropriation or nationalization of mining operations;
concession risks; permitting risks; 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 Camino Rojo
and to obtain the necessary regulatory approvals related thereto;
the mineral resource estimations for Camino Rojo being only
estimates and relying on certain assumptions; the Layback Agreement
with Fresnillo Plc remaining subject to the transfer of surface
rights; delays in or failure to get access from surface rights
owners; risks related to guidance estimates and uncertainties
inherent in the preparation of feasibility and pre-feasibility
studies, including but not limited to, assumptions underlying the
production estimates not being realized, changes to the cost of
production, variations in quantity of mineralized material, grade
or recovery rates, geotechnical or hydrogeological considerations
during mining differing from what has been assumed, failure of
plant, equipment or processes, changes to availability of power or
the power rates, ability to maintain social license, changes to
exchange, interest or tax rates, cost of labour, supplies, fuel and
equipment rising, changes in project parameters, delays, and costs
inherent to consulting and accommodating rights of local
communities; uncertainty in estimates of production, capital, and
operating costs and potential production and cost overruns; the
fluctuating price of gold, silver, and copper; global financial
conditions; uninsured risks; competition from other companies and
individuals; uncertainties related to title to mineral properties;
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; risks related to the Company's
history of negative operating cash flow; litigation risks;
intervention by non-governmental organizations; outside contractor
risks; risks related to historical data; unknown labilities in
connection with acquisitions, including the Company's acquisition
of Gold Standard; the Company's ability to identify, complete, and
successfully integrate acquisition, including the Company's ability
to integrate the acquisition of Gold Standard; dividend risks;
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 the 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; 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,
2022, which are available on www.sedar.com 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 Company 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.
SOURCE Orla Mining Ltd.