Orla Mining (TSX: OLA) is well on their way to having a third operating mine within their portfolio, with the company last night announcing that the South Railroad project in Nevada has advanced along the permitting path.
The company has seen the US Department of the Interior Bureau of Land Management publish a Notice of Intent for the South Railroad project within the Federal Register. The publication of the notice marks the beginning of the process to complete the National Environmental Policy Act review and the preparation of an environmental impact statement for the project.
With the advent of this notice being published, Orla now expects to receive all state and federal permits for South Railroad within the next twelve months, after which onsite construction can begin. First gold production from the operation is expected to occur in 2027.
The South Railroad project is a feasibility stage, open pit project that is expected to extract gold from two deposits. The feasibility study has outlined an operation that boasts a life of mine of eight years with average annual production of 124,000 ounces of gold at a grade of 0.77 g/t. The feasibility study, conducted at $1,650 gold, outlined an after-tax net present value of $315 million, based on a 5% discount rate, alongside an IRR of 44% and a payback period of just 1.9 years.
“The publication of the Notice of Intent marks a significant milestone for our South Railroad project, continuing the process towards receipt of final permits. South Railroad is the next pillar in Orla’s organic growth strategy toward annual gold production of 500,000 ounces,” commented Jason Simpson, CEO of Orla on the development.
Orla Mining last traded at $13.38 on the TSX.
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