Orla Mining (TSX: OLA) this morning was forced to cut current guidance following the collapse of a pit wall at their Camino Rojo Oxide Mine in Mexico.
While the event is said to have not resulted in the loss of ore, a change in sequencing is now required as a result of the earth movement. As part of an effort to stabilize the north wall of the pit, a 50 to 90 metre pushback of the wall is planned, resulting in 9.0 million tonnes of material grading 0.74 g/t gold is expected to be removed from the wall.
That material will be crushed and stacked on the heap leach, enabling production to continue. The wall is expected to be re-established at a lower slope angle at single 10 metre benches with a design that is said to reduce the risk of over toppling.
READ: Orla Mining Suspends Mining Activity At Camino Rojo Following Open Pit Wall Failure
The updated pit sequencing does have an impact on guidance however, with Orla now expecting consolidated gold guidance across all operations to be 265,000 to 285,000 ounces in 2025, down from 280,000 to 300,000 ounces. Cash cost guidance meanwhile increases to a range of $900 to $1,000 per ounce, up from a range of $850 to $1,050 an ounce. While AISC has seen the expected range rise to $1,350 – $1,550 an ounce, up from $1,300 to $1,500 an ounce.
Orla Mining last traded at $13.12 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
