Artist render of the Camino Rojo oxide pit and leach pad at end of mine life. Image by Orla Mining.
Orla Mining (TSX: OLA) announced on Thursday that the Mexican Federal Environmental Department has granted approval of the company’s Environmental Impact Statement for the Camino Rojo gold project in Zacatecas State.
The company now has the two principal permits necessary for commencement of construction activities at Camino Rojo.
The receipt of the permit also satisfies one of the key conditions precedent to the drawdown of the remaining $100 million available on a previously announced $125 million project finance facility.
“We can now begin construction and maintain our schedule to produce our first gold in 2021” said Orla CEO Jason Simpson.
According to the company, detailed engineering is now over 73% complete and major contracts for earth moving and civil work are expected to be finalized in the coming weeks.
Recent feasibility study shows that the mine would produce 97,000 oz. gold annually over seven years and could be built for $123 million.
Midday Friday, Orla’s stock was up 6.3% on the TSE. The company has a C$1.5 billion market capitalization.