Orla Mining updates guidance, AISC

Orla Mining has lifted its 2024 guidance to 120,000-130,000oz of gold, from 110,000-120,000oz of gold.

The gold producer, which has producing assets in Mexico and exploration assets in Nevada, where it recently expanded its footprint, acquiring Contact Gold for US$8.1 million.

Contact owns the Pony Creek property, which consists of 4,500ha located adjacent to Orla's South Railroad property in Nevada, US, hosting three mineralised zones with an inferred mineral resource of 433,000oz of gold at 0.52gpt.

The company shared that it has improved its AISC guidance to $800-900/oz, down from the original guidance of $895-975/oz for 2024.

Second quarter gold production was 33,206oz and gold sold was 34,875oz, it said.

Earnings were at $23million, and net income at $24.3million.

Panama update

Orla reaffirmed its commitment to working with the Panamanian government, following the cancellations of its permits at the Cerro Quema project in December last year.

In November, Panama instituted a moratorium on new mining concessions following weeks of protests against First Quantum's Cobre Panama mine.

Cerro Quema is an open pit heap leach mine in Los Santos, which is around 45km from Chitre. Its prefeasibility study estimates an average production rate of 81,000oz of gold over a 6-year mine life.

However, it has also evaluated damages to it at $400million, in a recent filing to the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC.

In March, it filed a Notice of Intent to Arbitrate with the Government of Panama under the Canada-Panama Free Trade Agreement, in respect of the Cerro Quema Project.

The Notice of Intent was intended to facilitate a 30-day consultation period to reach an amicable resolution to the company's claim, Orla explained.

As no resolution was reached, the company proceeded with filing to the ICSID with a Request to Arbitrate on July 3, 2024.

"Although the Company intends to vigorously pursue these legal remedies, the Company's preference is a constructive resolution with the Government of Panama that results in a positive outcome for all stakeholders," Orla said.

Panama faces international arbitration claims totalling more than $56 billion, about half the country's gross domestic product, following its closure of First Quantum Minerals' Cobre Panama mine in 2023, according to local mining Chamber CAMIPA.