Orla Mining’s Camino Rojo underground PEA: economics and de-risking notes for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Orla Mining’s PEA for the Camino Rojo underground project in Zacatecas outlines a standalone sub-pit operation with dedicated crushing, grinding and flotation circuits, projecting 215,000 oz/y gold over the first 10 years at an AISC of $1,304/oz. The study shows an after-tax NPV of $1.3 billion and 30% IRR at $3,100/oz gold, rising to $3.3 billion and 61% IRR at $5,000/oz, with an NPV-to-initial-capital ratio of 5.5:1. A de-risking programme through 2026 will include an exploration decline and staged underground drilling ahead of a 2027 pre-feasibility study.
Technical Brief
- Underground project is sited directly beneath the existing Camino Rojo open pit heap leach operation.
- Current Camino Rojo mine life is 10 years, with Q3 2024 production of 43,788 oz gold.
- Since 2020, 110,000 m of drilling have defined >4 Moz AuEq measured and indicated underground resources.
- Drilling has delineated higher-grade zones and extended mineralisation at depth into the newly defined Zone 22.
- Zone 22 remains open, providing upside for further resource expansion and potential mine-life extension.
- Orla targets a 2027 pre-feasibility study to convert the PEA concept into a construction-ready underground plan.
Our Take
With Orla Mining now at about US$6 billion in market capitalisation on the TSX/NYSE, Camino Rojo sits in a different peer group from the TSX Venture gold names in our recent coverage, where even standout performers like Santacruz Silver and Ucore Rare Metals were re-rated off much smaller bases.
The phased de‑risking of the Camino Rojo underground through 2026, ahead of a 2027 pre‑feasibility, mirrors what larger gold operators such as Agnico Eagle have been doing in Sweden’s Barsele project, signalling that mid‑tier and major gold players are favouring staged underground optionality over greenfield builds.
An after‑tax NPV to initial capital ratio of 5.5 at higher gold prices suggests Camino Rojo underground could remain competitive even if long‑term gold assumptions are trimmed, which is notable in Mexico’s Zacatecas region where underground expansions often need robust margins to offset depth, water and ground‑control costs.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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