Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces Q3 2019 gold production of 138,100 ounces, surpassing the
prior quarterly production record established in Q2 2019 by 21%.
During the third quarter, the Company sold 132,500 ounces of gold
at an average realized price of $1,475 per ounce. After the first
nine months of the year, Torex has sold 322,400 ounces of gold at
an average realized price of $1,376 per ounce.
With the strong year-to-date performance and
expectations for production in Q4 2019, the Company is well on
track to achieve full year guidance of 430,000 ounces of gold sold
(+/- 7%).
Q3 2019 Operational
Highlights:
- Gold production of 138,100 ounces
- Plant throughput averaged 12,370 tpd
- Underground ore mined averaged 1,110 tpd
- Open pit ore mined averaged 14,270 tpd
- Open pit strip ratio of 9.1:1
After reconciliations have been completed, gold
grades mined, gold grades processed, and gold recoveries will be
reported with the Q3 2019 financial results.
Fred Stanford, President and CEO of Torex,
stated:
“Our total cash balance increased by $52 million
in the quarter and total debt was reduced by over $36 million. Jody
Kuzenko and team made this possible by delivering another set of
excellent quarterly operational results. Gold price helped too, and
the impact was magnified with the record number of ounces produced.
Safety performance matched the record setting production results.
The team and asset are well positioned to continue delivering
exemplary results in the future.
“On the Muckahi front, testing of the components
of Muckahi have gone very well. We now have the confidence to move
beyond component testing, to field testing of the system as an
integrated mining method. The ELD deposit will be dedicated to this
next stage of proving up the Muckahi System, with mining of the
first long hole open stope to take place in the next few weeks.
These are exciting times and the team is aggressively pushing
forward to deliver strong cash flow from ELG, and to set up the
future with Media Luna and Muckahi.”
Jody Kuzenko, COO of Torex, added:
“I could not be more pleased with the
operational results in the third quarter. We set ourselves some
bold targets on safety and production, and came together as a team
to deliver. We achieved record gold production for the quarter, a
record run on lost time injury free days, and above design flow
rates through SART. Step by step, we are continuously improving
performance through the grinding circuit. Daily plant throughput
increased month-over-month during Q3 2019, driven by improvements
in both tonnes processed per hour and an increase in equipment
availability. As a result, availability in the plant averaged 89%
in Q3 2019 compared to 84% in Q2 2019. We are demonstrating that
with the right people working with the right systems in a
disciplined way, that our asset is stable and capable, and
performance excellence can be routine.”
Due the utilization of tax loss carry-forwards
during the quarter, Torex will begin accruing corporate tax on a
current basis. The corporate level tax is in addition to the EBITDA
based mining tax in Mexico, for which the company has already been
accruing current tax.
About Torex Gold Resources
Inc.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 (“ELG” or 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
“Technical Report”). The property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC. |
|
Fred Stanford President and CEO Direct: (647) 260-1502 Email:
fred.stanford@torexgold.com |
Dan Rollins Vice President, Corporate Development & Investor
Relations Direct: (647) 260-1503 Email:
dan.rollins@torexgold.com |
CAUTIONARY NOTES
Muckahi Mining System The
Technical Report 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 Technical Report. Aspects of Muckahi
mining equipment are currently in the design and test stage. The
mine design, equipment performance and cost estimations are
conceptual in nature, and do not demonstrate technical or economic
viability. The Company expects to complete the development and test
the concept by the end of 2019 for the mine development and
production activities. Further studies would be required to verify
the viability of Muckahi.
Forward Looking StatementsThis
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 of its operations including
without limitation, delays caused by blockades limiting access to
the ELG Mine Complex and the Media Luna Project or by blockades or
trespassers impacting the Company’s ability to operate.
Forward-looking information also includes, but is not limited to,
expectation that the Company will achieve full year sales guidance
of 430,000 (+/-7%) ounces of gold sold, belief that the Company is
well positioned to continue to delivering exemplary results, plans
to move the new mining technology (Muckahi) beyond testing the
components to field testing the system as an integrated mining
method, plans to further examine and prove up Muckahi, the
intention to mine the El Limon Deep deposit using Muckahi,
including the planned mining of the first long hole open stope in
the next few weeks, expectation that the ELG Mine Complex will
deliver strong cash flow, plans to set up the future with the Media
Luna Project and Muckahi, expectation of continued improvement in
performance through the grinding circuit and that performance
excellence can be routine with the right people working with the
right systems in a disciplined way, and expectation that the
Company will begin accruing corporate tax on a current basis.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects",
"believes", “future” or variations of such words and phrases or
state that certain actions, events or results “can”, "may",
"could", "would", "might", “on track”, "be achieved", “next stage”
or “to deliver”. 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, uncertainty involving reserve estimates and production
forecasts, the success of the Muckahi mining system, and those risk
factors identified in the Technical Report and the Company’s annual
information form and management’s discussion and analysis.
Forward-looking information are based on the assumptions discussed
in the Technical Report 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.
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