Orla’s double-digit gold assays extend Musselwhite

Orla Mining (TSX: OLA; NYSE: ORLA) says new drilling at its Musselwhite mine in Ontario shows more high-grade gold zones over 2 km beyond workings, boosting the case for longer life at the operation it bought from Newmont (TSX: NGT; NYSE: NEM) last year.

Drill hole 25-WEL-010 returned 11.5 metres grading 11 grams gold per tonne from 309.2 metres downhole in the West Limb zone, Orla said Thursday. Drill hole 25-LNX-070 cut 6.8 metres grading 14.2 grams from 605.3 metres in the Lynx zone. The PQ zone hole 25-PQE-051 cut 4 metres at 29.7 grams.

“The results build on previous exploration success which had identified mineralization extending 2 km down-plunge from existing operations, but today’s results confirm the continuity of two distinct stacked mineralized horizons (Lynx and PQ Extension), which indicates potential for more mineralization than originally expected in this extension area,” Desjardins mining analyst Allison Carson said in a note on Thursday.

“We view today’s results positively due to the material increase of the potential scale of the deposit, which continues to support the prospect of a new material handling system (such as a shaft) at Musselwhite.”

Operating mine

Musselwhite, a fly-in underground mine about 500 km north of Thunder Bay, has operated for more than 25 years and produced nearly 6 million oz. gold. Brownfield assets like Musselwhite have become more attractive as bullion prices hover near record highs, giving miners more room to justify mine infrastructure extensions rather than wait years for greenfield projects to clear permitting hurdles.

“The results today as well as updates in December and January suggest to us the potential for the company to meet or exceed its goals and market expectations,” BMO Capital Markets mining analyst Andrew Mikitchook said in a note on Thursday.

“The 2026 drill plan for the extension is targeting 200m spacing between sections and 50m spacing on sections, which will give the company a potential mineralization inventory to inform additional work in the area.”

Mill capacity

Shares in Orla Mining fell 1% to C$24.31 on Thursday morning in Toronto, in line with wider markets on edge over the U.S.-Iran ceasefire, giving the company a market value of about $8.46 billion (US$6.12 billion). The stock has traded between $11.86 and $29.99 in the past 52 weeks.

Orla reported 203,856 attributable oz. last year from Musselwhite after the mine acquisition closed on March 1, 2025. Full output was 236,908 ounces.

The company on Thursday also highlighted new shallow mineralization at the Camp Bay satellite target near existing infrastructure, where surface drilling returned 37.4 metres grading 1.84 grams gold per tonne from 52.6 metres downhole in hole 25-CB-003, 10.3 metres at 3.76 grams from 41.2 metres in hole 25-CB-001, 31.4 metres at 1.11 grams from 63.5 metres in hole 25-CB-004, and 23.3 metres at 1.13 grams from 28.7 metres in hole 25-CB-002.

Those results point to additional satellite feed opportunities that could be developed with relatively modest capital if follow-up work is successful, the company said.

“The new shallow mineralization at Camp Bay adds further conviction,” Sylvain Guerard, Orla’s senior vice-president for exploration, said in the release. “We have growing confidence in potential resource and reserve growth and extension of mine life.”

The Musselwhite success matters because Orla made a transformative bet on the mine when it bought it from Newmont for up to $1.18 billion last year. When the deal closed, Orla said historical drilling suggested 2 to 3 km of additional mineralized strike beyond current reserves, and it launched an aggressive exploration campaign in May to test that theory.

Camino Rojo

The acquisition more than doubled Orla’s gold output and shifted the Vancouver-based company from a single-asset producer at Camino Rojo in Mexico into a broader North American mid-tier miner with 300,620 oz. gold output in 2025.

The Camino Rojo oxide mine, which has been the company’s financial backbone since first gold in 2021, helped Orla generate record quarterly free cash flow of US$133 million ($184 million) in the final three months of 2025.

The mine produced 96,764 oz. gold last year, despite a temporary setback from a pit wall failure, and is expected to produce 110,000 to 120,000 oz. this year as it expands underground.

Orla is also advancing its South Railroad project in Nevada, where it is working towards a construction decision this year on what would become its third operating mine. The proposed open-pit heap-leach project near Elko about 500 km east of Reno would add another long-life, low-cost asset in a top-tier jurisdiction. First gold is planned for 2028.