Record Production of +100,000 Gold Ounces for the Third Quarter of 2018
October 03 2018 - 5:00AM
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is
pleased to report record production in the third quarter of 2018 of
101,400 gold ounces, and revenues of US$126.3 million, from its ELG
Mine Complex in Southwest Mexico.
Fred Stanford, President and CEO of Torex
stated: “Our teams have worked very well together to achieve a
number of common goals in the quarter. Safety performance has been
strong. Record gold production speaks for itself. Mining output
rates have ramped up to meet and exceed the increasing plant
throughput rates. The SART plant is ramping up well and is now
removing approximately 80% of the soluble copper in the process
water, with associated reagent use savings. Sub-Sill production is
approximately 500 t/d and on track to complete the ramp up to 850
t/d by year end. (Q4/18 will be a busy one for Sub-Sill
infrastructure.) The diamond drills are active on Sub-Sill, ELD,
and Media Luna, results are expected to be available in Q4/18. The
updated technical report was completed. Our Muckahi technology was
introduced to the industry, and excavations are underway for the
proof of concept test site in ELD, where testing will start in
Q1/19. In summary, it has been another productive quarter, with the
teams integrating all aspects of business performance very well.
The upper end of gold production guidance is within reach and we
all look forward to continuing the trend of accelerating
performance.”
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. The Company’s principal assets are the El
Limón Guajes mining complex (the “ELG Mine Complex”),
comprised of the El Limón, Guajes and El Limón Sur open pits, the
El Limón Guajes underground mine including zones referred to as
Sub-Sill and El Limón Deep (“ELD”), and the processing plant and
related infrastructure, which is in the commercial production stage
as of April 1, 2016, and the Media Luna deposit, which is an early
stage development project, and for which the Company issued an
updated preliminary economic assessment in September 2018. 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
New Mining System Technology
(Muckahi)
The Muckahi mining system is experimental in
nature and has not been tested in an operating mine. Many aspects
of the system are conceptual, and proof of concept has not been
demonstrated. The proposed application of a monorail system for
underground transportation for mine development and production
mining is unique to underground hard rock mining. There are
existing underground hard rock mines that use a monorail system for
transportation of materials and equipment, however not in the
capacity described in the technical report (the “Technical Report”)
entitled ““NI 43-101 Technical Report ELG Mine Complex Life of Mine
Plan and Media Luna Preliminary Economic Assessment”, which has an
effective date of March 31, 2018, has been filed with SEDAR and
posted on the Company’s website. Aspects of Muckahi mining
equipment are currently in the design stage. The mine design,
equipment performance and cost estimations are conceptual in
nature, and do not demonstrate technical or economic viability. The
timeframe to develop and test the concept is expected to be
approximately the second fiscal quarter of 2020 for the mine
development activities and may be up to the second fiscal quarter
of 2023 for the mine production activities. Further studies would
be required to verify the viability of Muckahi.
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. Forward-looking
information includes, but is not limited to, statements regarding
the ongoing ramp up of the SART plant and associated cost savings
from the operation of the SART plant, the ramp of Sub-sill
production to 850 tpd by the end of 2018, completing the ramp-up of
the operations to full production, completing the drilling programs
on the Subsill, ELD and the Media Luna project and the expectation
that the drilling results will be available in the fourth quarter,
expectation of high level of activity constructing infrastructure
for Sub-sill in the fourth quarter of 2018, plans to complete the
manufacture of prototypes for Muckahi and plans to complete the
excavation and to begin testing the Muckahi proof of concept in the
first quarter of 2019, expectation that the Company will achieve
the high end of the guidance on gold ounces sold in 2018 as
initially released, and the expectation that the operations will
continue the trend of accelerating performance. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as ”guidance”, “plans”, “expects”,
“estimates”, “intends”, “on schedule”, “continue”, “potential” or
“within reach” 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 risks associated with completing the ramp up of the
operations to steady-state, risk associated with skarn deposits
including grade variability, risk that expected benefits of SART
plant will not be realized, risk of illegal blockades impacting
access to the ELG Mine Complex and the Media Luna Project or to
supplies and services, and those risk factors identified in the
Technical Report, and 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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