The Blockades Have Ended — Full Access to All Company Facilities Restored
April 06 2018 - 05:00AM
Torex Gold Resources Inc.
(the
“Company” or
“Torex”)
(TSX:TXG) reports that negotiations between community leaders have
resulted in an end to the illegal blockades of the Company’s ELG
Mine Complex, supporting infrastructure, and the Media Luna
Project, all of which are in southwest Mexico. Processing
operations have continued uninterrupted since the restart in mid
January. Mining in the El Limon Pit is expected to resume today.
Fred Stanford, President & CEO of Torex
stated: “We are more than pleased that we can now get back to
unimpeded operations and value creation for the Company’s
shareholders and all stakeholders. During the first quarter, the
quality of the team, and the asset, were clearly evident as they
pulled together under very challenging operating conditions and
produced 67,000 ounces of gold in Dore. They also shipped 8000 gold
ounces in carbon fines. Looking forward, the operations are well
positioned to complete the ramp-up in 2018 and to move forward with
optimization and development initiatives.” He added; “A special
thanks goes out to the employees, community members, community
leaders, and so many others who have provided the support that was
necessary to facilitate production during this difficult period,
and to peacefully resolve this dispute over union
representation.”
The official government-regulated process for
selecting between the two competing unions, continues. Since
mid-March, there have been two public hearings at the Federal
Labour Board, regarding the timing of a union selection vote. It is
Torex’s understanding that the public hearing stage of the process
is now complete, and that the next stage is a decision as to when
and where the vote will occur. As Torex has said since the
beginning, the Company will work with whichever union the workers
democratically select.
Operations Update:
The processing plant has operated continuously
since it restarted on January 16th except for planned maintenance
activities. In the first quarter, 67,000 ounces of gold were
produced in Dore, and an additional 8000 ounces of gold were
shipped in carbon fines. The Sub-Sill was re-started one month
ahead of schedule, with drifts and ramps advancing 179 meters in
March. The underground diamond drilling program also restarted
ahead of schedule. Mining in the El Limon Sur Pit progressed on
schedule, as did the Guajes East Pit, which is now effectively
mined-out. The Guajes West Pit is in a waste stripping phase in
2018, which is the reason the operation will source most of its ore
in 2018 from the El Limon Pit, with some contribution from the El
Limon Sur Pit and the Sub-Sill. The SART plant construction is
substantially complete and commissioning is ongoing. The placement
of filtered tailings has been well managed in preparation for the
rainy season. Water containment ponds are being drawn down in
preparation for the rainy season. Cash reserves at the end of the
first quarter were US$124 million, including US$14 million set
aside for reclamation obligations. In the first quarter, a US$9.3
million principal repayment was made to reduce the term loan under
the debt facility to US$290.7 million.
About Torex
Torex is an intermediate gold producer based in
Canada, engaged in the exploration, development and operation 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. Within this property, Torex has the ELG
Open Pits, the ELG Underground Mine, and the Media Luna Project,
which is an early stage development project, and for which the
Company issued a preliminary economic assessment (PEA) in 2015. The
property remains 75% unexplored.
For further information, please contact:TOREX
GOLD RESOURCES INC.Fred Stanford President and CEO Tel. (647)
260-1502 Email: fred.stanford@torexgold.com
Gabriela SanchezVice President Investor
RelationsTel. (647) 260-1503Email:
gabriela.sanchez@torexgold.com
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS
This press release contains “forward-looking
statements” and “forward-looking information” within the meaning of
applicable Canadian securities legislation. Notwithstanding the
Company’s efforts, there can be no guarantee that the Company will
not face unforeseen delays or disruptions, including delays and
disruptions that may be connected to other illegal blockades in the
future. Forward-looking information includes, but is not limited
to, statements regarding resuming normal operations, continued
unimpeded operations, completing the ramp-up of the operations,
creating value for shareholders and stakeholders, resolution of the
community tensions, mining of the Guajes East pit, the primary ore
source for the remainder of the year, the phase of the Guajes West
Pit for the remainder of the year, completing optimization
activities, completing development activities including but not
limited to the advancement of the Sub-Sill, completing construction
and commissioning of the SART plant and expected completion of
ramp-up, preparedness for the rainy season, and the union selection
vote, including the next step in the process. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “expects”,
“estimates”, “intends”, “anticipates” or “believes” or variations
of such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might”, “will” or “will be
taken”, “occur”, or “be achieved”. Forward-looking information is
based on the reasonable assumptions, estimates, analysis and
opinions of management made at the date that such statements are
made. Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including those risk factors
identified in the Company’s annual information form and
management’s discussion and analysis. Forward-looking information
is based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and its
perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant
and reasonable in the circumstances at the date that such
statements are made, but which may prove to be incorrect. Although
the Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable, undue
reliance should not be placed on forward-looking information
because the Company can give no assurance that such expectations
will prove to be correct. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
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