Geomechanics.io

  • Free Tools
Sign UpLog In

Geomechanics.io

Geomechanics, Streamlined.

© 2026 Geomechanics.io. All rights reserved.

Geomechanics.io

CMRR-ioGEODB-ioHYDROGEO-ioQCDB-ioFree Tools & CalculatorsBlogLatest Industry News

Industries

MiningConstructionTunnelling

Company

Terms of UsePrivacy PolicyLinkedIn
    Projects

    Orla’s Camino Rojo permit: underground transition economics for mine planners

    March 18, 2026|

    Reviewed by Joe Ashwell

    Orla’s Camino Rojo permit: underground transition economics for mine planners

    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.

    Geotechnical Software for Modern Teams

    Centralise site data, logs, and lab results with GEODB-io, CMRR-io, and HYDROGEO-io.

    No credit card required.

    • Save and export unlimited calculations
    • Advanced data visualisation
    • Generate professional PDF reports
    • Cloud storage for all your projects

    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.

    Related Articles

    Mining
    about 9 hours ago

    Volvo–Boliden autonomous tailings haulage: design and safety notes for mine engineers

    Volvo Autonomous Solutions and Boliden have completed an autonomous haulage project for tailings dam construction at the Garpenberg zinc mine in Sweden, the first deliverable under their 2023 memorandum of understanding. Volvo’s autonomous haul trucks operated on a defined haul road between the open pit and the tailings facility, integrating with existing conventional fleets and site traffic management. The trial provides data on cycle times, berm and ramp design, and interaction rules needed to scale autonomous haulage for future dam lifts and other overburden movements on Boliden sites.

    Mining
    about 9 hours ago

    Cobre Las Cruces PMR under Global Panduro: design and flowsheet notes for engineers

    Cobre Las Cruces S.A.U. has completed its sale from First Quantum Minerals to Global Panduro, controlled by Resource Capital Funds, in a deal valued at up to US$190 million, clearing the way for the Polymetallurgical Refinery (PMR) project near Seville. The PMR is designed to process complex polymetallic ores on site rather than exporting concentrates, shifting the operation from conventional open-pit copper cathode production towards an integrated hydrometallurgical flowsheet. For engineers, the ownership change signals continuity for permitting, plant design and potential underground transition planning at this brownfield Iberian Pyrite Belt asset.

    Mining
    about 9 hours ago

    Epiroc LinkOA AHS quarry order: autonomy retrofit takeaways for mine planners

    Epiroc has secured an order from Heidelberg Materials to deploy its LinkOA autonomous haulage system on driverless haul trucks at an Australian quarry, extending the platform from large open-pit mines into the quarrying and aggregates sector. The project will adapt LinkOA’s mine-proven fleet management, collision avoidance and traffic control capabilities to shorter haul cycles, tighter geometries and mixed-traffic quarry conditions. For quarry operators, this signals accelerating interest in OEM-agnostic autonomy retrofits on existing haul fleets to cut operating costs and manage labour constraints.

    Related Industries & Products

    Mining

    Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.

    Construction

    Quality control software for construction companies with material testing, batch tracking, and compliance management.

    CMRR-io

    Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.

    HYDROGEO-io

    Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.

    GEODB-io

    Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.

    AllGeotechnicalInfrastructureHazardsEnvironmental