Orla Mining Announces Results of the Updated Feasibility Study and Approves Start of Construction Spending for the South Railroad Project
Orla Greenlights Nevada Growth as Robust South Railroad Economics Offset Institutional Exit Concerns
On January 15, 2026, Orla Mining announced the results of an updated Feasibility Study (FS) for its 100%-owned South Railroad Gold Project in Nevada and approved immediate construction spending. Key metrics include an after-tax NPV5% of $783 million and an IRR of 48% using a $3,100/oz gold price. The project requires an initial capital investment of $395 million to produce an average of 130,000 ounces of gold annually over the first five years (103,000 oz LOM). First production is targeted for early 2028, following an 18-month construction period slated to begin in mid-2026, contingent on receiving the Bureau of Land Management (BLM) Record of Decision.
The news is Material - Positive as it provides the definitive blueprint for Orla’s third pillar of production, transitioning the company from a dual-asset producer to a diversified intermediate with a clear path to 500,000 ounces per annum. - Economic Validation: The 48% IRR at current gold prices is robust, though investors should note the $3,100/oz base case is aggressive compared to standard industry reporting. At lower prices, the margin will compress significantly given the LOM AISC of $1,505/oz. - Strategic Pivot: By moving toward construction in Nevada, Orla mitigates its jurisdictional risk profile, which was previously heavily weighted toward Mexico (permitting delays) and Panama (project impairment). - Financial Readiness: The board’s approval to start spending reflects confidence in internal cash flow. With $326.9 million in cash (as of Q3 2025) and strong free cash flow from Musselwhite and Camino Rojo, the company is positioned to self-fund a significant portion of the $395 million CapEx, reducing dilution risk.
Orla Mining is an intermediate gold producer with operations in Mexico (Camino Rojo) and Canada (Musselwhite). - Flagship Project: The South Railroad Project (Nevada) is now the company's primary growth asset. It is a proposed open-pit, heap-leach operation on the Carlin Trend. - Existing Operations: - Camino Rojo (Mexico): Low-cost oxide heap leach; currently managing a pit-wall stabilization event. - Musselwhite (Ontario): Recently acquired (Feb 2025) from Newmont; high-grade underground mine with significant life-of-mine extension potential via the 2km trend extension discovered in late 2025.