Mexico has approved the environmental impact statement (EIS) for Orla Mining’s (TSX: OLA) Camino Rojo oxide gold project in Zacatecas state — clearing the way for mine construction to start.
The approval from the Mexican Federal Environmental Department (Semarnat) also satisfies one of the key conditions for the company to drawdown the remaining US$100 million available on a US$125 million project finance facility.
“With its Camino Rojo environmental permit, Orla is among the few permitted and financed projects progressing to construction worldwide,” Andrew Mikitchook of BMO Capital Markets commented in a research note to clients.
The approved EIS will enable the company to maintain its goal of producing first gold at the project in 2021, Jason Simpson, the company’s president and CEO, said in an interview.
Camino Rojo, about 50 km southeast of Newmont’s (TSX: NGT; NYSE: NEM) Penasquito mine, covers 2,060 sq. km and includes an oxide gold-silver deposit as well as a deeper gold-silver-zinc-lead sulphide resource.
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