Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces Q2 2020 gold production of 59,500 ounces. Gold sold
during the quarter was 63,140 ounces at an average realized
gold price of $1,710 per ounce.
Due to the COVID-19 decree issued by the
Government of Mexico, production at El Limón Guajes (ELG) was
temporarily suspended for the month of April and partially resumed
in May with the processing of lower grade stockpiled material.
Following the designation of mining as an essential activity in
Mexico, full production resumed at the beginning of June with the
restart of open pit and underground mining operations.
Q2 2020 Operational
Highlights
|
Q2 2020 |
June 2020 |
Gold Produced (oz) |
59,500 |
38,890 |
Average Plant Throughput (tpd)1 |
7,550 |
11,870 |
Average Underground Ore Mined (tpd)1 |
330 |
830 |
Average Open Pit Ore Mined (tpd)1 |
7,310 |
16,620 |
Strip Ratio |
6.7 |
6.4 |
1) Averages based on calendar days |
|
Gold grades mined, gold grades processed, and
gold recoveries will be reported with the Q2 2020 financial results
after reconciliations have been completed.
Jody Kuzenko, President and CEO of Torex,
stated:
“Due to COVID-19 restrictions, this quarter was
certainly not business as usual; however, we are pleased to have
successfully brought ELG back up to expected run rates in June,
with 38,890 ounces of gold produced in the month. With operations
back on track, we look forward to delivering a strong result in H2
2020 and carrying this operational momentum into 2021.
“In addition, during the COVID-19 related
suspension in April, we took the opportunity to complete end-to-end
maintenance throughout the process plant and did not take our foot
off the gas pedal with respect to key growth projects, including
portal preparation for the tunnel to Media Luna.
“Our established culture of safety has been
instrumental and very evident in how our employees and contractors
responded to challenges related to COVID-19 this quarter. The
enhanced protocols we put in place in March remain in place today,
and to date our screening measures appear to have been effective
with no confirmed cases on site. We have had two confirmed cases
involving individuals who tested off-site and they will remain at
home until they fully recover. Importantly, I’m also very proud to
report we had no lost time injuries (LTIs) this quarter, with the
operations now surpassing more than 7 million hours worked without
an LTI.
“Our strong performance in June after what was a
very challenging quarter would not have been possible without the
dedication and ongoing support of our employees, contractors, and
local communities. We are pleased to have weathered this
unprecedented time in the way we face most challenges – together –
and look forward to more of the same in months to come.”
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 kilometres
southwest of Mexico City. The Company’s principal assets are the El
Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”),
comprising the El Limón, Guajes and El Limón Sur open pits, the El
Limón Guajes underground mine including zones referred to as
Sub-Sill and ELD, and the processing plant and related
infrastructure, which commenced commercial production 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. |
Jody KuzenkoPresident and CEODirect: (647) 725-9982Email:
jody.kuzenko@torexgold.com |
Dan Rollins Vice President, Corporate Development & Investor
Relations Direct: (647) 260-1503 Email:
dan.rollins@torexgold.com |
CAUTIONARY NOTES
Non-IFRS Performance
MeasuresAverage realized price is a financial performance
measure with no standard meaning under International Financial
Reporting Standards (“IFRS”). Please refer to the “Non-IFRS
Financial Performance Measures” section in the
Company’s management discussion and analysis for the
year ended December 31, 2019 (“Q4 2019”) dated February 19, 2020,
and quarter ended March 31, 2020, dated May 5, 2020 (“Q1 2020”) and
available on the Company’s SEDAR profile at www.sedar.com for
further information with respect to average realized price and a
detailed reconciliation of this non-IFRS financial performance
measure for Q4 2019 and Q1 2020 to the most directly comparable
measures under IFRS.
Muckahi Mining SystemThe
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 has completed the development and the first
phase of testing the concept for the mine development and
production activities and will move to optimization in 2020 to
further 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. Forward-looking information also
includes, but is not limited to, statements that: with operations
back on track, the Company looks forward to delivering a strong
result in H2 2020 and carrying this operational momentum into 2021;
and the Company is pleased to have weathered this
unprecedented time in the way we face most challenges – together –
and the Company looks forward to more of the same in months to
come. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "expects",
"believes", “future”, “strive” or variations of such words and
phrases or state that certain actions, events or results “can”,
"may", "could", "would", "might", "be achieved", “appears” or
“focus on”. 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 inability of the Company’s mining and exploration
operations to operate as intended due to shortage of skilled
employees, shortages in supply chains, inability of employees to
access sufficient healthcare, significant social upheavals,
government or regulatory actions or inactions, decreased demand or
the inability to sell precious metals or declines in the price of
precious metals, capital market volatility, or other unknown but
potentially significant impacts, and uncertainty involving skarns
deposits and the management of soluble iron and those risk
factors identified in the Technical Report and the Company’s annual
information form and management’s discussion and analysis.
Notwithstanding the Company's efforts, there can be no guarantee
that the Company does not have employees who have the COVID-19
infection or that the Company’s measures to protect employees and
surrounding communities from COVID-19 during this period will be
effective. 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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