Orla Mining Drills Significant Gold Intersections at Multiple Oxide Targets upon Reactivation of Exploration at South Railroad Project, Nevada

 

VANCOUVER, BC, Feb. 8, 2023 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide an update on its exploration activities on its South Railroad Project ("South Railroad" or "the project") in 2022 and an overview of exploration plans for 2023 in Nevada.

• The resumption of exploration activities in mid-2022 resulted in promising drill results from multiple satellite oxide mineralized zones and targets across the 21,000-hectare South Railroad land package.
• Infill and selected step-out drilling was performed with the objective to upgrade inferred resources at the Pinion SB, POD, Sweet Hollow and Jasperoid Wash oxide deposits, define potential new resources at the Dixie mineralized zone, and advance the early-stage LT target.
• Inferred mineral resource estimates for Pinion SB, POD, Sweet Hollow, and Jasperoid Wash are expected to be updated in the second half of 2023, incorporating assay and metallurgical test study results from the 2022 core and reverse circulation ("RC") drill program, as well as from historical drill holes.
• Notable 2022 RC drill results (core hole results pending)¹:

Oxide Resource Targets

"Our short but effective drill program in 2022 successfully confirmed significant mineralization at multiple satellite zones and targets on the South Railroad Project. We believe there are immediate opportunities to upgrade and potentially increase oxide resources on our land package, which could ultimately strengthen project economics," said Sylvain Guerard, Senior Vice President, Exploration, of Orla. "New, highly prospective oxide and sulphide targets have also been outlined for drilling in 2023. The team is excited to be ramping up exploration activities directed toward making new discoveries on the Carlin Trend."

South Railroad is a feasibility-stage heap leach project that is currently in the permitting stage. The feasibility study on the project contemplates open pit mining of the Dark Star and Pinion deposits. South Railroad is situated within a prospective land package, referred to as the Railroad-Pinion property, along the prolific Carlin Trend, which provides opportunities for future resource expansion and conversion, and the discovery of new deposits. Orla is actively exploring the land package in parallel with permitting and development of the heap leach project.

The project covers a strike length of over 25 kilometres along the southern end of the prolific Carlin Gold Trend, Nevada. The Carlin Trend consists of multiple deposits containing a huge gold endowment of >100 million ounces. Gold mineralization at South Railroad occurs mainly as disseminated Carlin-type ore-stage pyrite in stratiform breccia and stratigraphic horizons within a complex fault network. The property hosts multiple zones of oxide, transition and sulphide mineralization, throughout the entire land package, with current Proven & Probable Reserves of 1.6 M oz (65.2 Mt @ 0.77 g/t Au) and Measured and Indicated Resources of 1.8 M oz (75.3 Mt @ 0.74 g/t Au). Multiple high priority exploration targets have been defined and provide excellent upside potential for the discovery of new deposits.

Exploration at South Railroad in 2022 focused on oxide resource definition and expansion at multiple targets. Upon taking ownership of the South Railroad project in August 2022, Orla accelerated exploration activities and expanded the project's 2022 program. The program objectives included: 1) confirming historical drill results, and 2) providing additional information, including increased drill hole spacing density, specific gravity measurements and material for preliminary metallurgical test work necessary for mineral resources estimation upgrade and growth. 2022 RC drill assay results are in line with historical drilling data at each of the drilled targets. Mineral resource estimates for Pinion SB, POD, Sweet Hollow, and Jasperoid Wash mineralized zones, and at the Dixie target, are planned for 2023.

In total, 10,573 metre of drilling (9,796 metres of RC in 61 holes and 777 metres of core in 7 holes) were completed at South Railroad in 2022. All RC assay results have been received and are presented in this news release. Assay results for drill core holes remain pending. Selective core material will be used for metallurgical test study planned for the second quarter 2023.

Pinion SB – Resource Expansion:

The Pinion SB mineralized zone is contiguous and southeast of the Pinion deposit. Orla completed 12 RC holes (2,874 drill metres) in 2022. Drilling successfully demonstrated continuity of the oxide gold mineralization extending southeast over a redefined strike length of 420 metres and from 115 to 190 metres vertical depth. Mineralization remains open along strike. The Pinion deposit and Pinion SB Zone are hosted in a northwest-trending structural zone, at the Devil's Gate / Tripon Pass – Webb formations karsted contact, within the south-plunging nose of the Bullion Anticline. An updated resource estimate is planned for the second half of 2023. 

Notable results:

• PR22-01: 0.85 g/t Au over 53.3 m (Oxide) from 109.7 m
• PR22-01: 1.03 g/t Au over 32.0 m (Oxide) from 176.8 m
• PR22-07: 1.10 g/t Au over 27.4 m (Oxide) from 210.3 m
• PR22-01: 1.61 g/t Au over 18.3 m (Oxide) from 225.6 m
• PR22-02: 0.46 g/t Au over 62.5 m (Oxide) from 80.8 m

POD – Resource Expansion:

The POD zone is located in the northern part of the property, 1.5 km south-southwest of the North Bullion deposit. POD geological setting is similar to Newmont's Rain deposit located to the north of the property. In 2022, 18 RC holes (1,475 drill metres) and two core holes (195 metres) were completed at POD. Drilling intersected significant transition and sulphide, including high grade (>4 g/t Au) gold mineralization confirming shallow positive historical drill results. POD mineralization is hosted in the Mississippian Chainman Formation along a northwest-southeast trending structural zone. An updated resource estimate is planned for the second half of 2023.

Notable results:

• POD22-15: 4.87 g/t Au over 25.9 m from 30.5 m (Transition), incl. 8.52 g/t Au over 13.7m (Oxide)
• POD22-09: 1.37 g/t Au over 21.3 m (Oxide) from 18.3 m, and 4.96 g/t Au over 24.4 m (Sulphide) from 39.6 m
• POD22-08: 1.51 g/t Au over 12.2m (Oxide) from 22.9 m, and 4.12 g/t Au over 35.1m (Sulphide) from 36.6 m
• POD22-04: 2.16 g/t Au over 22.9 m (Transition) from 33.5 m
• POD22-14: 1.52 g/t Au over 19.8m (Oxide) & 2.72 g/t Au over 32.0m (Sulphide) from 16.8 m

Sweet Hollow – Resource Expansion:

The Sweet Hollow mineralized zone is located in the northern part of the property near the POD mineralized zone, and 1.25 km southwest of the North Bullion deposit. This is a similar geological setting to Newmont's Emigrant deposit located to the north of the property. Seven RC holes (628 metres) and 3 core holes (171 metres) were completed at Sweet Hollow in 2022. Drilling intersected oxide mineralization, confirming near surface positive historical drill results. Sweet Hollow gold mineralization is hosted in Devil's Gate / Tripon Pass – Webb formations karsted contact along the north-northeast trending Bullion Fault. An updated resource estimate is planned for the second half of 2023. 

Notable results:

• SH22-03: 0.52 g/t Au over 35.1 m (Oxide) from 41.1 m
• SH22-04: 0.41 g/t Au over 32.0 m (Oxide) from 16.8 m
• SH22-05: 0.38 g/t Au over 29.0 m (Oxide) from 1.5 m
• SH22-05: 0.31 g/t Au over 30.5 m (Oxide) from 36.6 m

Jasperoid Wash – Resource Expansion:

Jasperoid Wash is located 10 km south of the Pinion deposit. Gold mineralization is currently defined over 140 metres vertically starting at surface. Eight RC holes (1,222 metres) were completed at Jasperoid Wash in 2022. Drilling intersected oxide, transition, and sulphide mineralization, confirming positive historical drill results. The mineralized zone is hosted in Pennsylvania – Permian formations sedimentary breccia and Tertiary intrusive rocks bounded by two north trending regional structures known as the Westport and Eastport Faults. An updated resource estimate is planned for the second half of 2023.

Notable results:

• JW22-04: 0.62 g/t Au over 18.3 m (Transition) from 30.5 m
• JW22-03: 0.29 g/t Au over 38.1 m (Oxide) from 71.6 m
• JW22-06: 0.24 g/t Au over 27.4 m (Oxide) from 18.3 m, and 0.37 g/t Au over 15.2 m (Oxide) from 67.1 m

Dixie – Advanced Exploration, Resource Definition:

Dixie is located 3.4 km to the south of the Dark Star deposit along a north-trending regional structure known as the Ridgeline Fault. Twelve RC holes (2,615 metres) and 2 core holes (411 metres) were completed at Dixie in 2022. No resource exists at Dixie and an initial resource estimate is planned for 2023 using both historical results and 2022 RC and core drilling completed by Orla, along with drill core material to be used for metallurgical studies. Gold mineralization is hosted in Pennsylvanian – Permian Formations sedimentary rocks and is currently defined over 200 metres, ranging from 75 to 300 metres below surface and remains open to the south.

Notable results:

• DX22-06: 0.50 g/t Au over 35.1 m (Transition) from 74.7 m, and 0.81 g/t Au over 19.8 m (Oxide) from 109.7 m
• DX22-04: 1.77 g/t Au over 10.7 m (Transition) from 163.1 m, and 0.62 g/t Au over 15.2 m (Oxide) from 207.3 m
• DX22-01: 0.47 g/t Au over 36.6 m (Transition) from 149.4 m

LT – Early-Stage Exploration:

The LT target is located 3 km northwest of the Pinion deposit. Selected historical significant oxide intercepts at LT includes: 30.5 m of 0.78 g/t Au (LT20-08) and 39.6 m of 0.76 g/t Au (LT21-02). Oxide mineralization at LT starts at the surface and is open along strike to the north and at depth. Mineralization is currently defined over a strike length of 600 metres and from surface to 115 metres vertically. Two RC holes were drilled in 2022 (335 drill metres) with one hole (L22-01) intersecting positive oxide gold mineralization from surface. The second hole was drilled off trend and did not return significant results. A soil geochemical survey was also performed in 2022 to define extension of the mineralization to the north and orient follow-up drilling. Partial soil results received thus far suggest gold mineralization may extend north of LT. The LT target is hosted in the north-trending LT Fault at the permissive Devil's Gate / Tripon Pass – Webb formations karsted contact.

Notable result:

• LT22-01: 0.53 g/t Au over 21.3 m (Oxide) from 0.0 m

A $10 million exploration budget is planned in Nevada in 2023 which would include approximately 22,400 metres of drilling (16,500 metres of RC drilling and 5,900 metres of core).

Resource Definition and Expansion + New Discoveries:

Multiple targets, including the extension of known mineralization (deposits) and newly developed targets supported by geology, geochemistry, and geophysical data, have been defined by Orla. Key exploration targets to be drilled in 2023 include Pinion SB, as well as extensions of mineralization at Jasperoid Wash, Dixie, POD, Sweet Hollow, and North Bullion. Target design focuses on primary structural controls (north–south and west-northwest–east-southeast striking structures), especially where these structures intersect and crosscut favourable stratigraphic horizons.

There is potential for the discovery of additional satellite deposits, including Carlin-, epithermal- and skarn-type gold and base metal mineralization, throughout the district in many areas that have not been thoroughly tested. Targets with potential for new discoveries occur in various parts of the property and include LT, Webb, Millie, Quick, Davis, CC, Ranch, Hidden Star, Porter, Robinson, Willow, and South Dome. In addition to drill testing some of these less advanced targets, geological mapping and geochemical surveys are planned to advance early-stage targets to the drill-stage and to develop new exploration targets.

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 drilling programs at the South Railroad 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.

All gold results at South Railroad were obtained by fire assay fusion and optical emission finish (FA-PB30-ICP) at American Assay Labs in Sparks, Nevada, USA. Over limit gold assays were determined using fire assay fusion with gravimetric finish (GRAVAu-30). Gold cyanide extraction was determined using a 2-hour cyanide leach (AuCN30). All other elements were determined by 4 acid and boric acid dissolution with ICP-OES+MS method (ICP-2AM50). 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. Certified reference material (standards), blank, or rig duplicate were inserted approximately every tenth sample for Quality Assurance/Quality Control purposes by the Company. American Assay Labs 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 South Railroad.

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 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

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 South Railroad based on the 2022 drill program, including the potential for upgraded and increased mineral resource estimates, extension of mine life, strengthening project economics, and the discovery of new deposits; the timing of updated or new mineral resource estimates and the results thereof;  and the Company's 2023 drill program, including the expected expenditures, timing, benefits, and results 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; 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; the Company's ability to identify, complete, and successfully integrate acquisitions; 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 in this news release 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 ("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. 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 Industry Guide 7 under the U.S. Securities Act. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multijurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and provides disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained in news release may not be comparable to similar information disclosed by United States companies.

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 above terms are "substantially similar" to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. 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 Industry Guide 7. Accordingly, information contained in this news release may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

Appendix: Drill Results

Table 1: South Railroad Drill Composites

Table 2: South Railroad Drill Hole Collars

SOURCE Orla Mining Ltd.

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