Orla’s Camino Rojo permit: underground transition economics for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Orla Mining has secured SEMARNAT approval of the environmental impact assessment for Camino Rojo in Zacatecas, giving it all permits needed to complete the oxide open pit, including the northern layback, east–west pit expansion, and extensions to waste rock and low-grade stockpiles and related infrastructure. The EIA also authorises an underground exploration portal and decline, targeted to start in H2 2026, to define sulphide resources beneath the current pit and support a potential underground transition. Orla’s updated technical report outlines a 17‑year underground operation with initial capital of $608 million, sustaining capital of $489 million, and an IRR rising from 30% at $3,100/oz to 61% at $5,000/oz gold.
Technical Brief
- Underground project economics assume 17-year mine life with 30% IRR at US$3,100/oz gold.
- At US$5,000/oz gold, Orla estimates NPV US$3.3 billion and IRR increasing to 61%.
- Initial capital for the underground development is budgeted at US$608 million.
- Life-of-mine sustaining capital is estimated at US$489 million, indicating a capital-intensive long-duration operation.
- Underground access works comprise an exploration portal and decline, scheduled to commence from H2 2026.
- Decline access is primarily aimed at drilling and technical evaluation of sulphide mineralisation beneath the current pit.
- Orla’s share price fell 10.4% on the announcement, despite a reported market capitalisation of C$6.82 billion.
Our Take
With initial and sustaining capital at Camino Rojo underground totalling about US$1.1 billion, Orla Mining is effectively committing a capital outlay here that is materially larger than the updated US$395 million initial capex for its South Railroad gold project in Nevada, signalling that Zacatecas is set to remain the company’s core value driver despite its U.S. growth pipeline.
The 30–61% IRR range modelled for Camino Rojo underground at higher gold prices places it at the upper end of project returns in our gold-focused database, which may help offset investor concerns after Fairfax Financial’s 2025 selldown of Orla shares and the latest 10.4% stock price drop in Toronto.
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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