Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG)
announces the results from the first 23 holes, of a planned 175
hole, in-fill drilling program at its Media Luna Project in
Southwest Mexico. Highlighted intercepts from this
program include
10.5 g/t Au Eq. over
39.2
m in borehole ML18-222A;
7.0 g/t Au Eq.
over
49.6 m in borehole ML18-215;
7.1 g/t
Au Eq. over
45.9 m in borehole ML18-219W
and
8.3 g/t Au Eq. over
22.6 m in
borehole ML18-208W.
Fred Stanford, President & CEO of Torex
stated: “Media Luna is our next planned growth project and it is
being advanced on a number of fronts. One of those fronts was
the recently refreshed PEA1, which illustrated an after-tax IRR of
27% using conventional mining technologies and 46% utilizing the
proprietary, but untested, Muckahi Mining System1.
Engineering optimization work is ongoing after the publication of
the PEA.
A second front is the testing of the Muckahi
Mining System at the Company’s ELG site. The first piece of
Muckahi equipment is expected to ship to ELG before the end of this
year, with significant testing of the system expected to be
completed by year end 2019. Land lease negotiations for Media
Luna have also been completed and permitting baseline work is
underway.
Another major package of on-going work is the
diamond drilling program to upgrade 25% of the Inferred Media Luna
resource to the Indicated confidence category. This upgrade
in confidence category is intended to enable the declaration of
Media Luna reserves in a planned upcoming feasibility study.
The Inferred resource was drilled out on 100m centers. To
upgrade to the Indicated confidence category, the diamond drilling
is targeted on 30m centers. As of the end of September, 23
holes had assays completed and are reported today. Results
can most easily be described as “as expected”. There are some
high-grade holes, some average holes, and some holes that
intersected a dyke in the target zone. This is consistent
with the results from the earlier 100m centers program and bodes
well for the potential of the deposit to live up to
expectations. There are currently 5 drills active on the
Media Luna Project. On average each drill completes two holes
per month, which suggests completion of the program at the end of
2019. Efforts are underway to source more water so the drill
count can be increased.
There are several porphyry targets on the
property and one of the higher priority targets is close to the
Media Luna drill site. One of the drill crews will be
diverted to test this target with three holes. This program
is expected to get underway this quarter and be completed by the
end of the first quarter of 2019.”
Highlights of in-fill drilling results at
Media Luna
BH ID |
Interval (m) |
TrueLength (m) |
Au (g/t) |
Ag (g/t) |
Cu (%) |
Au
Eq(g/t) |
Lithology |
From |
To |
ML18-222A |
447.35 |
488.01 |
39.15 |
5.24 |
92.75 |
2.27 |
10.51 |
Skarn |
ML18-215 |
413.76 |
464.46 |
49.63 |
4.80 |
35.60 |
0.97 |
6.99 |
Skarn |
ML18-219W |
421.93 |
468.71 |
45.89 |
3.44 |
59.29 |
1.64 |
7.12 |
Skarn |
ML18-208W |
471.51 |
494.62 |
22.62 |
3.33 |
87.37 |
2.12 |
8.27 |
Skarn |
ML17-206A |
483.00 |
503.42 |
20.06 |
1.27 |
64.22 |
1.35 |
4.55 |
Skarn |
ML17-204 |
472.30 |
493.34 |
20.90 |
2.66 |
29.45 |
1.02 |
4.83 |
Skarn |
Notes to drilling results table:
- Intersections are reported as true thickness.
- The gold equivalent grade, including copper and silver values,
are based on 100% metal recoveries. The gold grade equivalent
calculation used is as follows:Au Equivalent (Au Eq) = Au (g/t) +
Cu % * (79.37/47.26) + Ag (g/t) * (0.74/47.26). Metal prices used
are US$1470/oz of gold, silver price of US$23.00/oz and copper
price of US$3.60/lb. Metal prices are as most recent resource
statement.
- Intercepts in this press release were graded for
compositing as follows:
- Includes all intersections greater than 2gpt Au Eq (COG as per
the current Resource Statement);
- For lower grade sections that are bounded by results greater
than 2gpt AuEq, they are included unless they are greater than 5m
in true length.
Please refer to Table 1 for a complete list and
expanded description of the borehole intercepts reported in this
press release. Refer to Figure 1 for general location and Figures 2
to 6 for geology, borehole locations and assay results.
1 A preliminary economic assessment should not
be considered a prefeasibility study or feasibility study, as the
economics and technical viability of the Media Luna Project have
not been demonstrated at this time. The Media Luna PEA (as defined
below) is preliminary in nature and includes 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. It cannot be assumed that
all or any part of the inferred mineral resources will ever be
upgraded to a higher category. Furthermore, there is no certainty
that the conclusions or results as reported in the Media Luna PEA
will be realized. Mineral resources that are not mineral reserves
do not do not have demonstrated economic viability. The Media
Luna PEA includes information on Muckahi. It is important to
note that Muckahi 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.
Geology The Media Luna deposit
occurs within the Mesozoic carbonate-rich Morelos Platform, which
has been intruded by Paleocene granodiorite to tonalite stocks,
sills and dykes. Skarn-hosted gold-silver-copper mineralization is
developed along the contacts of intrusive rocks and enclosing
carbonate-rich sedimentary rocks. Sedimentary rocks and their
contact with the main granodiorite stock dip southwest at
approximately 35º. Extensive skarn alteration and metal deposition
at this contact exhibits the same dip.
Gold–silver-copper mineralization at Media Luna
is primarily associated with sulfidized pyroxene–garnet–magnetite
exoskarn and with zones of massive magnetite-sulfide, at the
contact of granodiorite with marble. Sulfidation of skarn
assemblages is closely related to retrograde alteration. This
alteration consists of amphibole, phlogopite, chlorite, calcite ±
quartz ± epidote.
QA/QC and Qualified Person At
the Company’s Morelos Gold Property (see description below), all of
the Media Luna target analytical work is performed by Bureau
Veritas. Sample preparation is done by Bureau Veritas at its
facilities in Durango, Mexico. The gold analyses (fire assay
with an atomic absorption or gravimetric finish) is done by Bureau
Veritas at its facilities in Hermosillo and multi-element
geochemical analyses are completed at their analytical facilities
in Vancouver. Torex has Quality Assurance/Quality Control
(“QA/QC”) program in place that includes 5% each of the Certified
Reference Materials and Blanks. Blind duplicates are not
included but Torex evaluates the results of Internal Bureau Veritas
laboratory duplicates.
The QA/QC program as designed has been approved
by Bureau Veritas and is currently overseen by Nicolas Landon,
Chief Exploration Geologist for the Media Luna Project.
Except for the information contained in
paragraphs two and three of this news release, Mark Hertel is the
Qualified Person under NI 43-101 for the scientific and technical
information contained in this news release including figures 1 to
6. Mr. Hertel is a Registered Member of the Society for
Mining, Metallurgy & Exploration, has experience relevant to
the style of mineralization under consideration and is an
independent consultant. Mr. Hertel has verified the data disclosed,
including sampling, analytical, and test data underlying the drill
results and he consents to the inclusion in this release of said
data in the form and context in which it appears. Dawson
Proudfoot, a Qualified Person under NI 43-101 and the Vice
President, Engineering of the Company, has reviewed and approved
the scientific and technical data contained in the second and third
paragraphs of this news release.
Additional information on the Media Luna
deposit, the mineral resource estimate for the Media Luna Project,
updated Media Luna Preliminary Economic Assessment (PEA) and
analytical and sampling process is available in the Company’s
technical report (TR) entitled the “Morelos Property, NI 43-101
Technical Report, ELG Mine Complex, Life of Mine Plan and Media
Luna Preliminary Economic Assessment, Guerrero State, Mexico”,
dated effective March 31, 2018 filed on September 4, 2018 on SEDAR
at www.sedar.com and the Company’s website at
www.torexgold.com.
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, 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 StanfordPresident
and CEOTel. (647) 260-1502Email: fred.stanford@torexgold.com |
Gabriela SanchezVice
President Investor RelationsTel. (647) 260-1503Email:
gabriela.sanchez@torexgold.com |
|
CAUTIONARY
NOTES
PRELIMINARY ECONOMIC ASSESSMENTA preliminary
economic assessment should not be considered a prefeasibility study
or feasibility study, as the economics and technical viability of
the Media Luna Project have not been demonstrated at this time. The
PEA is preliminary in nature and includes 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. It cannot be assumed that
all or any part of the inferred mineral resources will ever be
upgraded to a higher category. Furthermore, there is no certainty
that the conclusions or results as reported in the Media Luna PEA
will be realized. Mineral resources that are not mineral reserves
do not do not have demonstrated economic viability.
The Media Luna PEA includes information on
Muckahi. It is important to note that Muckahi 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. Drill and blast fundamentals, standards
and best practices for underground hard rock mining are applied in
the Muckahi, where applicable. 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 TR. 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 approximate timeframe to develop and test the concept would be
approximately two years (approx. second quarter 2020) for the mine
development activities and up to five years for the mine production
activities (approx. second quarter 2023). Further studies
would be required to verify the viability of Muckahi. Muckahi
is not intended as a “trade off study” but is shown to merely
demonstrate the potential benefits Muckahi may have using the Media
Luna deposit as an example. It includes 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 preliminary economic assessment will be realized.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
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, the results of the
Media Luna PEA, the expected timing the information with respect to
the drill program for the Media Luna area and the results of the
drill program contained herein, the expectation of upgrading the
Media Luna mineral resource and determining a mineral reserve, the
expected timing and completion of the infill drilling program and
the drilling program on the porphyry target, the expected
completion of a feasibility study, future exploration and
development plans of the Company, access to the targets as
described herein, and the potential for mining the Media Luna
area. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
“plans”, “indicates”, “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”, or “will be taken”, “occur”, or “be
achieved”. 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, without
limitation, the risk associated with the variability of skarn
deposits, the risk that actual results of current exploration and
development activities will not achieve expectations, uncertainty
as a result of the preliminary nature of the PEA and the Company’s
ability to realize the results of the PEA, uncertainty regarding
the inclusion of inferred mineral resources in the mineral resource
estimate and the Company’s ability to upgrade the inferred mineral
resources to a higher category, uncertainty regarding the ability
to convert any part of the mineral resource into mineral reserves,
uncertainty involving resource estimates and the ability to extract
those resources economically, or at all, uncertainty involving
drilling programs, the regulatory process and actions, uncertainty
about the success of the Muckahi mining system, ability to finance
the Media Luna Project on reasonable terms, and those risk factors
identified in the TR and the Company’s annual information form and
management’s discussion and analysis. Forward-looking information
are based on the assumptions discussed in the TR and such other
reasonable assumptions, estimates, analysis and opinions of
management made in light of its experience and perception of
trends, current conditions and expected developments, and other
factors that management believes are relevant and reasonable in the
circumstances at the date such statements are made. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information, there may be other factors that
cause results not to be as anticipated. 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. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, whether as a
result of new information or future events or otherwise, except as
may be required by applicable securities laws.
Figures
1-6: http://resource.globenewswire.com/Resource/Download/905d29b8-0ec0-4e40-82e8-232bb0e697e6
Table
1: http://resource.globenewswire.com/Resource/Download/37825f5b-63ff-4d54-bfc6-c79c939d5551
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