TOREX GOLD RESOURCES INC.
Contact: Gabriela Sanchez,
Vice President, Investor Relations
145 King St. West, Suite 1502
Toronto, ON M5H 1J8 Canada
Phone: (647) 260-1500
Fax: (416) 640-2011
Torex Gold Resources Inc. is building its first gold mine, defining its second one, and looking for more at its 100% Morelos Gold Property, located in southwest Mexico, in the heart of the prolific Guerrero Gold Belt.
Once the first mine, El Limon Guajes, now about 80% complete, is in full production, it will be amongst the largest and lowest cost gold mines in the world. Fully permitted and fully financed, this mine will produce in excess of 350,000 oz/year for ten years at a cash cost of $504/oz which makes it one of the richest and lowest cost gold mines in the world. All this is possible due to its high grade, at 2.79 g/t, its simplicity and the existing infrastructure in the area. Its second mine, Media Luna, located only 5 km away from El Limon Guajes, was discovered in 2012. It has an inferred resource of 5.8 million ounces of gold equivalent, contained in only 30% of the magnetic anomalies targeted.
Engineering is advancing at Media Luna with scoping work into a preliminary economic assessment expected to be completed by Q3/2015. Torex soon will be actively exploring for its third mine. With the help of a Ztem survey completed last year and geophysics, new targets have been developed to look for the roots of this structurally controlled system.
Torex on Track for First Gold Pour by Year End
"With construction currently 80% completed, and with mining ahead of schedule with over one million tonnes of ore in stock pile, we are well on track for our first gold pour by the end of this year," said Torex President and CEO Fred Stanford.
Engineering and procurement were effectively completed by mid-summer. A workforce of over 3000 is rapidly turning engineering and material into a productive asset.
"The processing buildings have been erected and the major pieces of equipment have been placed within the buildings," Stanford said. "From a construction perspective the focus has now shifted to connecting the pieces of equipment with pipes and wires. From an operations perspective the focus is squarely on hiring and training the workforce and in preparing for commissioning and ramp up. Specialists have been contracted to guide the commissioning process and the hiring of a skilled workforce has been aided by the recent closure of processing capacity elsewhere in the country. The site and nearby communities have been quiet from a security perspective and significant progress is being achieved in the preparations for the village relocation."
Second Quarter Results Show Substantive Progress at El Limon Project
Construction at the Guajes primary crusher was substantially complete at the end of Q2 2015 and commissioning has been started in July with ore being crushed and conveyed to the live stockpile.
Mining of the Guajes and North Nose pits is ahead of schedule, with approximately 650,000 tonnes of Guajes ore and 400,000 tonnes of North Nose ore stockpiled as of June 30, 2015.
Construction of the processing plant and associated infrastructure was advanced on all fronts during the second quarter of 2015. A notable infrastructure milestone was the connection to the national electricity grid, which was achieved just after the quarter ended.
The development of commissioning plans, training material, and operating and maintenance procedures were all advanced during the quarter. In preparation for a start of the processing plant in the fourth quarter of 2015, hiring and training of the processing plant work force has started so that people are available to learn from the processing plant commissioning. Most of the mining workforce is already in place.
Work on the infrastructure to get the El Limón pit ready for pre-production waste stripping is advancing ahead of schedule and preparation for installation of the Rope Conveyor by Doppelmayr Transport Technology GmbH begun.
The construction for resettlement of the La Fundición village is substantially complete and resettlement is expected to be completed in the third quarter of 2015. Resettlement of the Real Del Limón village is expected to be completed in the fourth quarter of 2015.
The ELG project cost is expected to cost $800 million (excluding capitalized interest costs and fees). As at June 30, 2015, $527 million has been spent on development of the ELG Mine. To date, Torex has drawn $235 million from its $375 million 8-year senior secured project finance facility.
ELG Mine Plan Prelude to Development of the Media Lune Project
Torex's updated mine plan for the El Limón-Guajes Mine will be included as part of the company's preparation of the Media Lune Project PEA, in order to ensure that the technical report for the Morelos Gold Property is current and complete.
Torex announced a positive PEA for the Media Luna Project in July, as well as a new NI 43-101 inferred mineral resource estimate of 7.2 million gold equivalent ounces, including 3.98 million ounces of gold, at a cut-off grade of 2 g/t gold equivalent.
Results of a 10,300-metre diamond drill program to the north west of the current Media Luna resource area, completed during Q2 2015, were included in the updated inferred resource estimate for the Media Luna Project.
A 2,000 metre in-fill drilling program in the El Limón East area, completed in June, is within the El Limón resource. This program will provide additional geological information to assist mine planning at El Limón.
"The PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized," said Stanford.
Torex is a growth-oriented, Canadian-based resource company engaged in the exploration and development of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. Torex intends to identify a pipeline of future economic deposits within its property, which remains 75% unexplored.
Since its inception almost five years ago, the Torex seasoned management team, lead by Fred Stanford, has been consistently delivering on milestones and they expect to continue this trend as they enter the final stages of construction of their first mine, which continues on time and on budget.
For more information about Torex Gold Resources, Inc., visit www.torexgold.com