Camino Rojo Feasibility Study: $452M NPV, 62% IRR
Orla Mining Ltd.'s Camino Rojo in Mexico (Zacatecas state) has a Feasibility Study outlining an after-tax NPV of $452M, an after-tax IRR of 62%, and initial capital of $134M. The mine plan runs 10.4 years at about 94 koz Au per year.
Orla Mining Ltd.'s Camino Rojo has reported Feasibility Study results for the gold project in Mexico (Zacatecas state). The study headlines an after-tax net present value of $452M at a 5% discount rate. It reflects Orla Mining Ltd.'s (OLA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $452M using a 5% discount rate. After-tax IRR is 62%. Initial capital expenditure is estimated at $134M, with life-of-mine sustaining capital of $24M. The study models a payback period of 1.5 years. All-in sustaining costs are pegged at 543 USD/oz Au. Economics are based on Gold $1,600/oz, Silver $20/oz (economic analysis); Reserves based on $1,250/oz Au, $17/oz Ag.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10.4 years. Average annual production is approximately 94 koz Au. Average head grade is 0.73 g/t Au, 14.55 g/t Ag. Metallurgical recovery averages 62%. The open-pit strip ratio is 0.92.
Resources and ownership. Royalties and streams: 2% NSR royalty.
These figures are extracted from Orla Mining Ltd.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 18,067 Kt | 0.80 g/t Au, 15.4 g/t Ag | 466 koz Au, 8,951 koz Ag |
| Probable | 49,296 Kt | 0.71 g/t Au, 14.2 g/t Ag | 1,123 koz Au, 22,555 koz Ag |
| Proven & Probable | 67,363 Kt | 0.73 g/t Au, 14.5 g/t Ag | 1,588 koz Au, 31,506 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 22,749 Kt | 0.76 g/t Au, 14.1 g/t Ag | 556.5 koz Au, 10,302 koz Ag |
| Indicated | 330,694 Kt | 0.84 g/t Au, 8.5 g/t Ag | 8,902.1 koz Au, 90,078 koz Ag |
| Measured & Indicated | 353,443 Kt | 0.83 g/t Au, 8.8 g/t Ag | 9,458.6 koz Au, 100,379 koz Ag |
| Inferred | 60,919 Kt | 0.87 g/t Au, 7.4 g/t Ag | 1,696.7 koz Au, 14,518 koz Ag |
| Measured & Indicated - Leach Resource | 94,640 Kt | 0.71 g/t Au, 12.7 g/t Ag | 2,163.0 koz Au, 38,776 koz Ag |
| Inferred - Leach Resource | 4,355 Kt | 0.86 g/t Au, 5.8 g/t Ag | 119.8 koz Au, 805 koz Ag |
| Measured & Indicated - Mill Resource | 258,803 Kt | 0.88 g/t Au, 7.4 g/t Ag | 7,295.6 koz Au, 61,603 koz Ag |
| Inferred - Mill Resource | 56,564 Kt | 0.87 g/t Au, 7.5 g/t Ag | 1,576.9 koz Au, 13,713 koz Ag |
Our Analysis
The 62% after-tax IRR places this project in the top quartile of the 96 gold projects we track, well above the ~15% hurdle that typically unlocks project finance. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline $452M figure—but the real story is the capital-light structure: $134M initial capex is just 30% of NPV, and the 1.5-year payback sharply reduces execution risk. The NPV-to-market-cap ratio of ~0.1x cuts both ways: it could signal the market has not priced the asset, or that investors are discounting for financing, dilution, or jurisdictional risk in Zacatecas.
The study’s gold price assumption of $1,600/oz sits dramatically below the current spot of $4,029.20/oz, implying the returns are likely conservative on the upside—but the reserve base uses $1,250/oz, which is more grounded. The single most important watch-item is funding risk: while capex is modest relative to NPV, the $134M still represents a large multiple of market cap, meaning equity dilution is probable for a single-asset junior in a jurisdiction that, while mining-friendly, carries operational and permitting friction.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.