Nevada permit clock starts as Orla eyes 2028 South Railway gold

[Redator]

Orla Mining (TSX: OLA; NYSE: ORLA) said US authorities formally started the federal environmental impact process for the company’s South Railroad gold project in Nevada.

The decision by the US Bureau of Land Management, dated Thursday, opens public scoping until Sept. 12 under the National Environmental Policy Act, according to a company statement. Orla, which expects to receive all required state and federal permits within 12 months, is targeting first gold in early 2028.

“South Railroad is the next pillar in Orla’s organic growth strategy toward annual gold production of 500,000 ounces,” CEO Jason Simpson said in a Thursday press release. “We will work with our cooperating agencies to fast-track the timeline to onsite construction start, and ultimately first gold production.”

Located 700 km northeast of Las Vegas, South Railroad is a low-complexity, feasibility-stage heap leach project.

Orla is to update South Carlin’s mineral resource, reserve estimate and feasibility study before the end of the year.

Orla’s Toronto-traded shares were up C$0.12 at C$13.50 in early afternoon trades Thursday.

Project fast-track

The South Carlin Complex covers 250 sq. km hectares on Nevada’s Carlin Trend, offering potential for resource growth and new discoveries.

Detailed project engineering is underway, and long-lead equipment orders will begin this year to de-risk development ahead of expected final permits late next year.

Orla says it has secured enough sage grouse credits and outlined plans to secure water rights for construction, operations, and reclamation.

Mexico slide

The Vancouver-based miner’s progress in Nevada comes as it works to rebound from a disruption in Mexico.

On July 23, a rockslide on the north wall of the Camino Rojo oxide pit forced a halt to in-pit mining. Orla plans a 50–80-metre pushback to remove about 9 million tonnes of mainly oxidized ore grading 0.74 grams gold per tonne, which will be crushed and stacked on the leach pad.

While no material was lost, the resequencing prompted Orla to trim the current production forecast to 265,000–285,000 oz. at all-in sustaining costs of $1,350–$1,550 per oz., down from 280,000–300,000 ounces.

The impact is weighted to this year, after second-quarter production hit a company record 77,811 ounces. That included 52,666 oz. from Northern Ontario’s Musselwhite mine in its first full quarter under Orla.

Exploration angle

Orla also reported this month strong exploration results from Camino Rojo’s Zone 22, the vertical and down-plunge continuation of the sulphide deposit.

A 15,000-metre infill program finished on July 18 found high-grade intercepts outside current resource panels. This includes 1.4 metres at 142 grams gold per tonne from a depth of 1,346 metres in hole CRSX24-36D. Another hole, CRSX25-47B, returned 10.5 metres at 0.4 grams gold per tonne from 1,071.5 metres depth, while hole CRSX25-50A returned 11.6 metres at 4.77 grams gold per tonne from 843 metres down.

Orla has added 5,000 meters of drilling for the second half of the year. It’s also proposing an exploration drift, which will allow for closer underground drilling next year, pending permits.

Zone 22 represents only 7% of the project’s indicated underground gold-equivalent resources. Any additional tonnes could greatly impact the mining method choices for the planned 2026 preliminary economic assessment.

“The Zone 22 infill program has delivered consistent high-grade results, strengthening our resource model and reinforcing Zone 22 as key to Camino Rojo’s underground potential,” senior vice-president for exploration Sylvain Guerard said in an Aug. 7 news release. “With mineralization still open, we see strong upside for further growth.”