Orla Mining Ltd.
TSX VENTURE : OLA

Orla Mining Ltd.

April 26, 2017 08:00 ET

Orla Reports Drilling Success at Cerro Quema Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 26, 2017) - Orla Mining Ltd. (TSX VENTURE:OLA) ("Orla" or the "Company") is pleased to report results from the first 12 diamond drill holes completed in 2017 on its wholly owned Cerro Quema Project in Los Santos Province, Panama. Highlights include two holes drilled to test a geophysics anomaly 400 metres from one of the two current reserve zones that intersected 47.8 m at 0.47 g/t Au and 52.4 m at 0.49 g/t Au and two holes within the current reserve zone that intersected 42.3 m at 3.50 g/t Au and 63.5 m at 1.37 g/t Au. These intersections are in oxide material and start at surface.

Drill Hole Summary Table:

Hole East
(UTM)
North
(UTM)
Elev
(m)
Az
(
°)
Dip
(m)
Depth
(m)
Intercepts
From
(m)
to Width
(m)
Au g/t
CQDH-17-065 553243 835705 823 180 -50 100.5 13.9 21.0 7.1 0.48
CQDH-17-066 552766 836044 677 20 -60 89.5 43.2 46.9 3.7 0.31
CQDH-17-067 552766 836040 677 200 -60 125.1 No sig intercept
CQDH-17-068 552841 835729 724 180 -50 79.3 3.1 24.4 21.3 1.35
40.5 47.9 7.4 0.30
CQDH-17-069 553329 836264 776 200 -60 73.2 0.0 47.8 47.8 0.47
CQDH-17-070 553330 836266 776 20 -70 128.1 0.0 52.4 52.4 0.49
CQDH-17-071 553327 835852 862 180 -50 96.5 0.0 34.8 34.8 2.42
CQDH-17-072 553394 835824 884 180 -60 120.5 6.0 19.6 13.6 0.69
56.2 100.4 44.2 0.30
CQDH-17-073 553378 836321 720 200 -60 103.7 No sig intercept
CQDH-17-074 553378 836321 720 20 -60 97.6 17.8 23.8 6.0 0.29
55.3 58.5 3.2 0.69
CQDH-17-075 553065 835724 848 180 -50 76.3 0.0 42.3 42.3 3.50
CQDH-17-076 553065 835762 853 180 -57 93.0 0.0 63.5 63.5 1.37
including 0.0 16.5 16.5 3.27

(A drill hole location map is appended and also on the Company's website at www.orlamining.com)

The current drill program is comprised of wide-spaced holes testing a number of concepts that could add significant value to the project in the near-term. All holes were drilled in the general area of the Quemita Zone, which is one of two zones that contain the 488,000 ounce Cerro Quema oxide gold reserve (19.7 mT at 0.77 g/t Au - see 2014 N43-101 Technical Report on Orla website). Targets include areas of alteration that may host undiscovered gold zones in oxidized material, potential extensions to the pits outlined in the 2014 pre-feasibility study (PFS) and possible upgrades to the resources within the PFS pits based on better geological modelling of the higher grade parts of the deposits plus a re-interpretation of the base of the oxide zone.

The early drilling has highlighted the potential for additional mineral zones to the north and down-slope of the Quemita reserve. Six holes in this area intersected strong high-sulphidation style alteration. The best gold grades were encountered in holes CQDH17-069 (47.8 m at 0.47 g/t Au) and 070 (52.4 m at 0.49 g/t Au) which were drilled in opposite directions from a drill pad 400 metres northeast of the proposed Quemita pit. Gold grades are associated with hydrothermal brecciation and vuggy silica indicating proximity to a center of hydrothermal activity. Grades start at surface and the entire intercepts, as well as material below, are oxidized. Two holes drilled from a pad 600 m to the west-southwest of these holes, CQDH17-066 and 067, intersected well altered and oxidized material, including zones with vuggy silica. Gold results were anomalous, but low. The area in between these four holes, and extending in both directions past them, has intermittent outcrops of strongly altered rock. A number of follow-up holes are planned in this large prospective area.

Holes CQDH17-75 and 76, drilled in the middle of the existing Quemita resource/reserve, returned excellent results of 42.3 m at 3.50 g/t Au and 63.5 m at 1.37 g/t Au (including a section that averaged 3.27 g/t Au over 16.5 m at the top of the hole). Most of the previous drill holes at Quemita were vertical and largely reverse circulation (RC). The new angled core holes confirm there is a surface blanket of higher grade material which is interpreted to be due to weathering related enrichment. This blanket is underlain by more vertically controlled primary gold mineralization. Core holes will be important in developing a new geological model for the deposit which will used for a new resource estimate and metallurgical recovery analysis.

CQDH17-068 intersected 21.3 m averaging 1.35 g/t Au 35 metres west of the proposed Quemita pit. This near-surface oxide intercept highlights the potential for extending the Quemita resource to the west. CQDH17-072 had two gold intercepts. The upper (13.6 m at 0.69 g/t) is within the proposed pit while the lower one (44.2 m at 0.30 g/t Au) indicates potential to expand mineralization to the south. CQDH17-065 also had a narrow intersection (7.1 m at 0.48g/t Au) to the south of the existing Quemita proposed pit.

CQDH17-071 intersected 34.8m at 2.42 g/t Au in the eastern part of the proposed Quemita pit. Like other holes, this intersection starts at surface. Drill holes such as this will be used to build a better geological model of the high grade parts of the deposit.

The final holes with assays returned, CQD17-073 and 074, were drilled at depth below and to the north of holes 069 and 070. They intersected only anomalous gold values or narrow zones of low grade indicating that the roots to the higher grade mineralization in 069 and 070 are faulted off or are further to the south.

Marc Prefontaine, CEO of Orla, commented, "It is very encouraging that our exploration team has been successful in confirming potential so early in their exploration efforts. We are developing a good understanding of the geological controls to mineralization. Three concepts that could provide near-term additions to the project economics were tested: Possible new zones of oxide proximal to the pits outlined in the 2014 PFS; extensions to the PFS pits; and opportunities for higher grades within the PFS pits. The first 12 holes have provided positive support for all three. With continued drilling, in conjunction with geology and new geophysical surveys, we look forward to building the gold resources on the project. Continued success in the areas currently being drilled would add material which could be incorporated into the current Pre-Feasibility development plan and potentially add significant value to the project. Mapping, sampling and geophysics is also progressing well in an effort to advance new targets over the large land package to the drill stage".

Three man-portable diamond drill rigs continue working on the project. A budget for up to 25,000 metres of drilling in 2017 has been approved by the Orla board of directors.

Quality Control Protocols

Core is drilled HQ diameter. Core is cut in half by saw, with one half sent for analysis. All gold results were determined by ALS Minerals (Au-AA23) using fire assay fusion and an atomic absorption spectroscopy finish. All samples are also analyzed for multi-elements, including silver and copper, using an Aqua Regia (ME-ICP41) method at ALS Laboratories in Lima, Peru. Drill program design, Quality Assurance/Quality Control and interpretation of results are performed by qualified persons employing a Quality Assurance/Quality Control program consistent with NI 43-101 and industry best practices. Standards, blanks and duplicates are included approximately every 25 samples for Quality Assurance/Quality Control purposes by the Company as well as the laboratory. Approximately 5% of sample pulps are sent to secondary laboratories for check assays.

Qualified Person

The technical information in this news release has been reviewed and approved by Mr. Hans Smit, P.Geo., Chief Operating Officer of Orla Mining Ltd., who is the Qualified Person for the technical information in this news release under NI 43-101 standards.

On behalf of the Board of Directors,

Marc Prefontaine, M.Sc., P.Geo., President & Chief Executive Officer

About Orla Mining Ltd.

Orla Mining is a mineral exploration company led by a group of seasoned mining executives with strong financial backing. The company's focus is to acquire mineral exploration opportunities where the Company's exploration and development expertise and corporate share structure could substantially enhance shareholder value. The 100% owned Cerro Quema project in Panama includes a near-term gold production scenario and significant exploration upside. Cerro Quema's 14,800 Ha concession boasts paved road access, a supportive local population and private land ownership. The Cerro Quema project is currently in the last stage of the permitting process for a proposed open pit mine and gold heap leach operation. Please refer to the Cerro Quema Project - Pre-Feasibility Study on the La Pava and Quemita Oxide Gold Deposits dated August 22, 2014, which is available on SEDAR.

The company is actively evaluating other opportunities.

Forward-looking Statements

This news release contains certain "forward-looking statements" within the meaning of Canadian and United States securities legislation, including, without limitation, statements with respect to potential results of exploration, including increases to the net present value, any increase to the mineral resource estimate and the ability to incorporate the results into a mine plan, future drill programs and exploration programs, including the timing of such plans and programs, as well as the Company's objectives and strategies. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release, including without limitation, assumptions with respect to the results of the current exploration program, expectations regarding mineral exploration and development costs; expected trends in mineral prices and currency exchange rates; the accuracy of the Company's current mineral resource estimates; that the Company's activities will be in accordance with the Company's public statements and stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: risks related to uncertainties inherent in the preparation of preliminary economic assessments, drill results and the estimation of mineral resources; and risks associated with executing the Company's objectives and strategies, including costs and expenses. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/Orca_map.pdf

Contact Information