Orla seeks Mexico mine slide answers

Orla Mining (TSX: OLA; NYSE: ORLA) said initial geotechnical assessments of the incident that stopped pit‑mining activities at the Camino Rojo oxide mine in central Mexico should be completed in the coming week.

A remediation plan then will be outlined, as would any updates to full-year production and cost guidance, Orla said Friday in a statement. The assessments are being conducted by both the company’s own team and third-party consultants.

Heavy rains triggered a pit‑wall slide early Thursday along the temporary north wall of Camino Rojo’s open pit, about 620 km northwest of Mexico City. Some 390,000 tonnes of material – representing about seven days’ worth of mining – fell into the pit, Orla said Friday. 

“The tonnage of material reportedly involved in the geotechnical event was lower than we initially expected, indicating that the necessary remediation costs and timeline to mining restart could be lower and faster than the worst-case scenario that appears to be priced into the stock,” Scotia Capital mining analyst Ovais Habib said Friday in a note.

Orla shares rose 2.8% to $14.11 in Toronto Friday morning, giving the company a market value of about $4.6 billion. News of the pit-mining halt sent the stock plunging 14% Thursday.

Stockpile

Orla will crush and stack run-of-mine ore and stockpile material on the heap leach pad until in-pit mining operations resume – a strategy that should mitigate short-term impact on production, according to the company. Ramp access to the pit remains unaffected and the crushing circuit, stacking and process plant continue to operate.

The current stockpile at Camino Rojo is estimated at 2.24 million tonnes with an average gold grade of 0.32 grams gold per tonne – representing about four months’ worth of crushing and stacking. Orla’s mining throughput capacity is about 50,000 to 60,000 tonnes per day, while its daily crushing throughput capacity is about 18,000 to 19,000 tonnes.

Camino Rojo had been expected to churn out 110,000–120,000 oz. of gold this year. It produced 55,100 oz. in the first six months of 2025, including 25,100 oz. in the second quarter.

Two producers

The property is one of Orla’s two producing assets, along with the Musselwhite underground mine in Ontario. The company is also advancing the development‑stage South Railroad project in Nevada.

Orla’s initial resource for Camino Rojo, released last month, outlined 3.9 million contained gold oz. grading 2.45 grams gold per tonne.

The underground deposit hosts 50.1 million measured and indicated tonnes at 10.6 grams silver and 0.25% zinc for 17.05 million oz. silver and 278 million lb. zinc, Orla said June 5. The resource is based on more than 400,000 metres of drilling under the producing oxide open pit at Camino Rojo, which is located in Zacatecas state.