Stifel Canada on Friday reiterated its buy rating on the shares of Orla Mining (OLA.TO) and its C$19.00 price target after the company released an underground mineral resource estimate for its Camino Rojo deposit in Mexico.

"On first look: Positive. OLA announced the first underground resource for Camino Rojo Sulphide. This update represents a key milestone in de-risking the Camino Rojo Sulphide project, and we expect it to offer greater visibility (and clarity) into the project's development potential. Historically viewed as a large-scale open-pit concept, the Sulphide UG resource now presents the organic opportunity to scale Orla's production beyond the near-term 500koz growth profile in a more targeted (lower risk) development strategy. We are encouraged to see the first UG resource (of 4.57Moz AuEq at 2.55 g/t AuEq) converting a significant portion (about 50%) of the previously open-pit sulphide resource estimate - a good initial estimate that can continue to expand with drilling extending Zone 22 down-plunge at depth. While Street estimates for Camino Rojo Sulphide have varied widely, we believe this update marks a de-risking step and gives a better sense of the UG potential," analyst Ingrid Rico wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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