M3 Engineering & Technology Corporation has won an engineering, procurement and construction management (EPCM) contract from Orla Mining for the Camino Rojo oxide gold project located in Zacatecas State, Mexico.
Camino Rojo is an advanced gold and silver open-pit and heap leach project wholly owned by Orla and covers more than 200,000ha.
The US-based construction firm will undertake work on the project from its office located in Hermosillo, Mexico, and provide senior review from the Tucson office in Arizona.
The company will provide detailed engineering, construction planning and execution, contractor management and cost control services for the project.
Orla Mining president and CEO Jason Simpson said: “M3 has a wealth of engineering knowledge and with its extensive experience in Mexico, it is well suited to design and build the Camino Rojo project on time and on budget.
“We look forward to commencing detailed engineering work by mid-September as we work with M3 to build a high-quality project that begins to produce gold in mid-2021.”
Features of the Camino Rojo oxide gold project
The Camino Rojo oxide gold project is a low capital intensity, high margins and rapid payback project, featuring an 18,000tpd (tonnes per day) heap-leach open pit operation.
Over 44mt grading 0.73g/t Au and 14.2g/t Ag is expected to be processed during the mine’s working life.
According to the US company, gold production is expected to be more than 97,000oz per year at $576 per ounce of gold.
A feasibility study has been completed, while environmental permit applications will be submitted in the third quarter of this year.
Meanwhile, Orla has been in touch with various lenders and financiers to fund the development of the project.
Construction on the Camino Rojo oxide gold project is planned to commence in the first half of next year.
