Orla Mining Ltd. (TSX VENTURE:OLA) ("Orla" or the "Company") provides an update on its wholly owned Cerro Quema Project located in Santos Province, Panama. Drilling commenced in mid January with one rig and six holes have been completed. Two additional rigs are in-country and are expected to be mobilized shortly. New drill holes have intersected high sulphidation style alteration similar to what is seen in the existing resource areas up to 400 metres from the proposed Quemita pit. Extensive hydrothermal brecciation with silica and vuggy silica alteration and oxidation levels up to 100 metres below surface may indicate potential for the discovery of additional centres of mineralization. Assay results are pending.
Surface mapping combined with re-interpretation of previous IP surveys has identified other zones of high-sulphidation style alteration which will be evaluated in the upcoming weeks. A 40 line-kilometre grid has been cut for an IP survey which will start next week. This survey is being undertaken in an area with little outcrop to determine the extents of an open ended 800 by 500 metre resistor 400 metres northeast of any previous drilling that was outlined in a IP survey conducted in 2013. Resistors without coincident high chargeability can represent underlying strong silica alteration.
The Company also is providing an update on the renewal of the three Cerro Quema Project mineral exploitation concessions. The original 20-year term for these concessions ended on February 26, 2017 (Contracts 19 and 20) and March 3, 2017 (Contract 21). The Company has applied for the prescribed 10 year extension to these contracts as it is entitled to under Panamanian mineral law. The Company believes it has complied with all legal requirements in relation to the concessions. Government officials have given confirmation that the extension applications were received and have given verbal assurance that they are complete with no outstanding legal issues. Furthermore, the Panamanian Ministry of Commerce and Industry approved the most recent annual report for the concessions which includes a work plan for 2017. The Company has received advice from its legal counsel in Panama that it can continue exploration activities on the Cerro Quema Project concessions while the Company awaits final executed documents. Exploration on the project is subject to area-specific authorizations, including newly acquired approvals to drill targets to the south of the current resource areas. The Company owns the land rights over the areas of the current resources, proposed mine development and the priority drill targets.
"We are very pleased with the progress we have made with our exploration efforts at Cerro Quema in a very short time period of time. When Orla became involved in the project we believed that in addition to the current reserves there was high potential for finding additional gold ounces. Systematic work has confirmed our initial enthusiasm was warranted," states Marc Prefontaine, Orla's President and Chief Executive Officer. "We are working closely with Panamanian officials and expect to conclude the concession renewal process forthwith."
The Company has a booth at the 2017 PDAC convention, the world's leading event for mineral exploration and finance. Please visit us at booth 2929 in the Investors Exchange.