Orla Intersects Gold-Silver At Cerro Quema Project

VANCOUVER, BC - Orla Mining Ltd. reported that recent diamond drill hole CQDH-17-116 at its wholly owned Cerro Quema project in Panama intersected a combined total of 104.8 meters grading 0.38 g/t gold and 1.71% copper in two zones separated by lower grade material.

While the current exploration focus at Cerro Quema is on oxide material that could be processed in a proposed heap leach facility, the Company believes there is potential for a copper-gold sulphide deposit within the extensive altered and mineralized zone underlying and peripheral to the current 488,000 ounce Cerro Quema oxide gold reserve.. The sulphide potential was highlighted by hole CQDH-17-116 which intersected 49.0m @ 0.50 g/t Au and 1.39% Cu from 41.0 to 90.0 meters and 55.8m @ 0.28 g/t Au and 1.99% Cu from 118.7 to 174.5 meters. The lower interval included a 17.5m section averaging 0.56 g/t Au and 5.26% Cu. Altered and weakly mineralized material separates the two intervals. Lower grade, but locally highly anomalous, material occurs below these intervals, including an 11.5m section @ 0.29 g/t Au and 0.65% Cu from 188.0 to 195.5m. The orientation and true thickness of mineralization is unknown.

The semi massive to massive sulphide material in CQDH-17-116 is pyrite dominant with chalcopyrite, bornite and locally chalcocite, which is interpreted as being of primary (hypogene) origin. Sulphide mineralization is associated with various styles of brecciation, indicating a highly dynamic system. Similar mineralization was previously intersected in CQDH-17-104, located 150 meters to the east, with 10.7m @ 1.69 g/t Au and 1.32% Cu. These intersections and other previously reported Cu-Au intercepts, including 66.0m @ 0.24 g/t Au and 0.52% Cu in CQDH-17-089 located 250m northeast of CQDH-17-116, are within an 800m NW-SE by 500m NE-SW chargeability anomaly identified in an Induced Polarization (IP) survey.

The style of mineralization encountered in CQDH-17-116 and 104 (termed the Lower Caballito zone) in the southern part of the IP anomaly has lower arsenic values than mineralization in the northern (Idaida) portion of the chargeability anomaly, where enargite mineralization predominates. The semi-massive nature of the Lower Caballito mineralization is assumed to be the cause of a 450m by 350m conductive anomaly outlined in a 2012 airborne Electro Magnetic (EM) geophysical survey that is partly coincident with the IP anomaly. CQDH-17-116 was targeted on this EM anomaly. The relationship between the low arsenic and high arsenic mineralization and the extent of low arsenic mineralization will be tested with additional drilling.

Marc Prefontaine, Orla CEO said, "The intersection in CQDH-17-116 is very exciting for Orla. It highlights what we saw when we first looked at acquiring Cerro Quema. A very large mineral system with near-term potential to develop a heap leach gold mine and longer-term potential for the discovery of new oxide and sulphide deposits." Drilling continues on the property with three man-portable rigs.