Camino Rojo Underground Expansion

Overview

In February 2026, Orla Mining completed a Preliminary Economic Assessment for an underground expansion project at Camino Rojo. This development would deliver significant mine life extension beyond the current open-pit heap leach operation by shifting to a standalone underground sulphide mining operation. The expansion would include its own crushing, grinding, and flotation circuits to generate saleable concentrates, potentially transforming Camino Rojo into a multi-decade mining complex with significant growth prospects beyond the existing oxide operations.

The Camino Rojo deposit comprises three continuous zones with distinct characteristics:

1. The company has a phased de-risking strategy extending through 2026,including optimization studies, exploration decline development, and staged underground drilling, with a pre-feasibility study planned for 2027. 
2. Over 110,000 metres of drilling since 2020 support the project, with more than 4 million ounces of gold equivalent in measured and indicated mineral resources. 
3. Mineralization remains open at depth in Zone 22, providing considerable exploration upside.

PEA Highlights

*Note: Gold equivalent (AuEq) reflects total metal presented on an equivalent basis. The Company uses conversion ratios for calculating gold equivalent for its silver and zinc production, which are calculated by multiplying the volumes of silver and zinc by the respective assumed metal prices, recoveries (varies), and dividing the resulting figure by assumed gold price. The following metal prices and recoveries (averaged) were used: Gold: $3,100/oz and 87% recovery, Silver: $37.50/oz and 75% recovery, Zinc: $1.20/lb and 40% recovery.

The 2026 PEA demonstrated robust economics with an after-tax NPV of $1.3 billion and 30% IRR at $3,100/oz gold, scaling up to $3.3 billion NPV and 61% IRR at $5,000/oz gold. Production projections indicate an average of 215,000 ounces of gold annually over the first 10 years, with AISC averaging $1,304 per payable ounce, providing strong operational margins across various gold price scenarios.

Zone 22 Discovery

Additional potential exists in Zone 22, the vertical and down-plunge extension of the Camino Rojo Sulphides, hosted by limestone-rich formations and extending from 700 to 1,300 metres in vertical depth below surface. Following its discovery in 2024, a 20,000-metre drill program was completed in 2025 that focused on infill and extension and demonstrated that mineralization remains open at depth and down plunge.