Orla Mining Announces Positive Preliminary Economic Assessment for the Camino Rojo Underground Project
Orla cements its multi-decade production profile as Camino Rojo PEA outlines $1.2B NPV, but high CapEx and $3,100 gold assumptions warrant caution.
On February 19, 2026, Orla Mining announced a Preliminary Economic Assessment (PEA) for the Camino Rojo Underground Project in Zacatecas, Mexico. This study outlines a stand-alone underground mining operation targeting the Zone 22 sulfide deposit, which sits beneath the existing oxide heap leach operation. Key metrics include an after-tax NPV5% of $1.275 billion and a 30.2% IRR based on a gold price of $3,100/oz. The operation is projected to produce an average of 215,000 ounces of gold annually for the first 10 years of a 17-year mine life. Total gold production is estimated at 2.8 million ounces with an All-In Sustaining Cost (AISC) of $1,339/oz. Initial capital expenditure is pegged at $608.1 million.
The impact is Material - Positive as it provides a clear roadmap for Orla’s transition from a mid-tier heap leach operator to a complex, multi-decade producer. - Extended Longevity: The 17-year mine life for the underground project, combined with the 10-year life at the recently updated South Railroad project and Musselwhite operations, establishes a multi-decade production pipeline. - Production Scale: This project, once built, will contribute significantly to Orla’s goal of reaching a 500,000-ounce annual production profile. - Economic Sensitivity: While the base case IRR of 30.2% is robust, it is highly dependent on a $3,100 gold price. At a more conservative $2,500/oz gold price, the IRR drops to 19.0% and the NPV to $638 million, illustrating significant leverage to the metal price. - Capital Intensity: The $608 million initial CapEx is a substantial hurdle. However, the company's current net cash position ($35.8 million as of Jan 2026) and strong free cash flow from Musselwhite and Camino Rojo Oxide ($93M in Q3 2025) suggest internal funding is possible, though future debt or equity may be required if timelines for South Railroad ($395M CapEx) and this project overlap.
Orla Mining is an intermediate gold producer with operations in Mexico and Canada, and a development project in Nevada. - Flagship Project (Camino Rojo, Mexico): An open-pit heap leach mine that has consistently outperformed production guidance. The newly announced underground sulfide project represents the next phase of development. - Musselwhite Mine (Ontario, Canada): Acquired from Newmont in early 2025 for $810 million. It is a high-grade underground operation that Orla is aggressively optimizing to extend mine life beyond 2030. - South Railroad (Nevada, USA): A feasibility-stage heap leach project on the Carlin Trend with an NPV of $783 million. It is currently in the final stages of federal permitting.