Published: March 20, 2026 |

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Orla Mining released an update for its South Railroad Gold Project. This update presents the results of the optimized feasibility study (FS) and confirms the board of directors’ approval to begin spending for detailed engineering, procurement, and project execution.

The board has also approved the start of project construction, subject to receipt of all required permits. South Railroad is located in Nevada, and forms a part of the company’s larger South Carlin Complex land package on the prolific Carlin Trend.

“This optimized South Railroad feasibility study reaffirms the strength of the project and the basis upon which we will move forward in Nevada. Since acquiring the project in 2022, we have worked to advance engineering, optimize design, update cost and in turn, establish a construction-ready project. South Railroad is more than our next project; it is our next building block of growth as we solidify our place in Nevada, a leading global mining jurisdiction,” said Jason Simpson, Orla’s chief executive officer.

“South Carlin, still early in its district-scale evolution, is advancing rapidly through ongoing exploration, with what we believe to be upside extending well beyond the feasibility study. This momentum will help position the complex as the foundation for sustained expansion, and we are moving toward construction with confidence, ready to deliver benefits for our stakeholders,” added Simpson.

HIGHLIGHTS OF THE SOUTH RAILROAD PROJECT UPDATE

• Completion of Optimized Feasibility Study and Project Approval
Orla will now transition to the execution phase, beginning with pre-construction spending for detailed engineering, construction readiness activities, and long-lead procurement. Full construction is expected to begin in mid-2026, following receipt of the final project permits.

• Clear Permitting Pathway to Construction
The project is advancing through federal and state approvals, with the BLM record of decision targeted for mid-2026. As a FAST-41 covered project under NEPA, the company expects a coordinated and transparent federal permitting process.

• Optimized and Construction-Ready
Significant engineering work, contractor and supplier engagement, and project optimizations have been completed, forming the basis for the initial capital cost estimate of $395 million. Project enhancements include a two-stage crushing circuit and improvements to the overall development scope.

• Strategic Growth Catalyst
South Railroad will become Orla’s third operating mine, expected to increase consolidated annual production to close to 500,000 ounces and solidifying the company’s position in North America.

• South Carlin Complex Offers Significant District Scale Growth beyond this Study
Measured and indicated mineral resources have increased since acquisition by 206,000 ounces in oxide and 469,000 ounces in sulphide, marking the beginning of the resource expansion. With a strong mineral endowment and Orla’s commitment to exploration and deeper geological understanding, the district presents clear potential for mine life extensions and new discoveries across existing resources and priority targets.

FEASIBILITY STUDY OVERVIEW

The updated feasibility study was prepared by a team of independent industry experts led by M3 Engineering and supported by NewFields Mining Design and Technical Services, Forte Dynamics, Stantec, Ray Walton Consulting, RESPEC, APEX Geoscience, and Westland Resources.

South Railroad is situated on federal land and is currently advancing under the guidance of the BLM in accordance with the National Environmental Policy Act (NEPA) for permitting. The BLM NEPA public comment period closed on September 18, 2025 with the largest category of submissions being letters of support, reflecting strong community and stakeholder backing for the project and the U.S. Army Corps of Engineers Section 404 public comment period ended on September 25, 2025 with no significant comments received. Orla has all the mineral rights, surface use and right of way agreements in place to commence construction upon receipt of all required permits.

CAPITAL COSTS

The updated capital cost estimate reflects a significantly more advanced and construction-ready project compared to the 2022 FS, which estimated initial capital of $190 million. The updated study and cost estimate are supported by comprehensive engineering, vendor pricing, and execution plans that enhance overall confidence in project delivery.

OPERATING COSTS

Operating costs for the feasibility study were estimated by RESPEC (mine development) and M3 (process plant, site development, power generation, and ancillaries), Stantec (site-wide water management systems), NewFields (heap leach and waste rock disposal facilities) and Linkan Engineering (water treatment plant and potable water systems).

Mine operating costs were estimated using first principles. This was done using estimated hourly costs of equipment and personnel against the anticipated hours of work for each. The equipment hourly costs were estimated for fuel, oil, and lubrication, tires, undercarriage, repair and maintenance costs, and special wear items.

Process operating costs have been estimated by M3 from first principles. Labor costs were estimated using project specific staffing, salary and wage, and benefit requirements. Unit consumptions of materials, supplies, power, and delivered supply costs were also estimated.

MINING AND PROCESSING SUMMARY

Mining at South Railroad is planned over an initial ten-year period across the Dark Star and Pinion deposits using conventional open-pit truck and shovel methods. Ore from both deposits will be processed through a single, shared heap leach facility utilizing a combination of ROM and two-stage crushed material.

All leach material will be placed on the heap leach pad, with crushed ore temporarily stockpiled to decouple crushing and stacking activities and provide operational flexibility. The processing schedule incorporates both ROM and crushed heap leach material, with a maximum combined processing rate of approximately 29,940 tonnes per day, or 10.9 million tonnes per year, allowing the operation to balance throughput, recovery, and operating efficiency.

The FS assumes Orla-operated mining, supported by a fleet of primary mining equipment including drills, loaders, hydraulic shovels, and 200-ton (181 tonne) capacity haul trucks. This approach provides Orla with direct control over mining performance, cost management, and scheduling. Capital costs reflect a financing option of the major mining equipment purchases.

Overall, the mining plan reflects an executable, low-risk approach that supports strong economics and operational flexibility.

SITE INFRASTRUCTURE SUMMARY

Project infrastructure for South Railroad has been designed to support the planned mining and heap leach operations and includes site roads, power supply and distribution, communications, heap leach pad, process plant and ancillary buildings.

South Railroad will be powered by an on-site power plant comprising seven natural-gas reciprocating generators, with liquefied natural gas (LNG) delivered by truck. This configuration was selected based on prior power studies and provides a scalable solution with staged capital requirements, favorable operating costs, and reduced emissions relative to alternative on-site generation options. Associated capital and operating costs have been incorporated into the FS cost estimates.

Mine water requirements will be met primarily through groundwater dewatering associated with the Dark Star pit. Dewatering at Dark Star will be supported by a network of wells producing a peak combined flow of approximately 2,300 gallons per minute (gpm), with additional wells developed at Pinion during later mining phases. Pumping rates decline over time as the system transitions from pit dewatering to process and heap leach supply, with long-term average pumping of approximately 310 gpm. Groundwater modeling confirms sufficient water availability to meet operational requirements throughout the life of the mine. Recovered water is managed through a series of large-capacity raw water tanks, which distribute water to the mine water treatment plant, consumptive uses, and fire-water storage, with excess water treated and discharged via an on-site outfall structure.

The primary access to the South Railroad Project begins in Elko, Nevada and follows a 67 kilometers route that transitions from state highways to county roads and finally to BLM roads. Approximately 35 kilometers of the route will be upgraded to a two-way road with wide lanes and shoulders to accommodate safety and drainage. The final ten kilometers, which involve steeper grades and winding terrain, will be improved to reduce slopes and straighten curves.

Key facilities have been strategically located on the site layout to optimize material handling, access, and operational safety. The heap leach facility is situated northeast of the Pinion pit, with gravity flow of pregnant leach solution to the adjacent process ponds, and controlled access for both ROM placement and initial ore stacking.

Centralized mine infrastructure includes a truck shop and maintenance complex, fuel and warehousing facilities, administration and security buildings along the main access road, and an on-site ADR plant and refinery for gold and silver recovery. Supporting facilities include a laboratory, training areas, potable water treatment plant, and site services facilities.

PERMITTING

The South Railroad Project is situated on federal land and is currently advancing under the guidance of the BLM as a FAST-41 covered project.

The BLM published the notice of intent (NOI) in the Federal Register on August 13, 2025 initiating the formal environmental impact statement (EIS) process under NEPA. The BLM is also consulting with the U.S. Fish and Wildlife Service (USFWS) under Section 7 of the Endangered Species Act. A biological assessment has been prepared and shared with the USFWS for pre-consultation technical assistance and completeness review in advance of the formal consultation process.

In parallel, the U.S. Army Corps of Engineers (USACE) Section 404 permit application, addressing wetland and surface-disturbance impacts, was submitted in August 2025 and deemed administratively complete. The public-comment period closed on September 25, 2025, without significant issues. The USACE’s review of the compensatory-mitigation plan is underway.

At the state level, the company has secured Class I and II Air Operating Permits, while water-related applications continue to progress with the Nevada Division of Water Resources (NDWR). The Water Pollution Control Permit and the National Pollutant Discharge Elimination System (NPDES) discharge permit applications were submitted for review in the third quarter 2025.

The BLM’s record of decision (the final permitting decision) is targeted for mid-2026.

PROJECT EXECUTION

Orla has defined a clear and actionable execution path to advance South Railroad through construction and into production. With the study complete, the project has entered the execution phase, supported by a robust project delivery framework. M3 has been contracted to provide integrated EPCM services for the development and construction of the project following a competitive tender process conducted earlier this year. This leverages their technical leadership during the study and their prior involvement with South Railroad.

Detailed engineering is well underway and M3 has ramped up its team alongside Orla’s owner’s team to finalize construction planning and readiness activities. Long-lead procurement activities are also advancing with key awards beginning in early 2026.

Construction activities are expected to commence in mid-2026, subject to the receipt of final permits and regulatory authorization and is expected to be completed in approximately 18 months.

Orla, M3, and the supporting consultants will work in an integrated manner to ensure seamless alignment between design, construction and the future operations. Operational readiness is being embedded across all workstreams with progressive onboarding of Orla’s operations personnel to enable an efficient transition through commissioning and into steady-state operations.

Orla will continue to apply its ESG framework throughout the design and execution of the project with a focus on environmental management, workforce safety, and constructive engagement with local and regional stakeholders. These priorities are being incorporated into all aspects of the designs and plans to ensure the project is developed responsibly and in alignment with Orla’s long-term sustainability objectives.

Orla’s corporate strategy is to acquire, develop, and operate mineral properties where the company’s expertise can substantially increase stakeholder value. The company has three material projects, consisting of two operating mines and one development project, all 100 percent owned by the company: (1) Camino Rojo, in Zacatecas State, Mexico, an operating gold and silver open-pit and heap leach mine. (2) Musselwhite Mine, in Northwestern Ontario, Canada, an underground gold mine that has been in operation for over 25 years. (3) South Railroad, in Nevada, United States, a feasibility-stage, open pit, heap leach gold project located on the Carlin trend in Nevada.

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