Torex Gold drills 16.96 g/t gold over 17.5 metres at El Limon, Mexico

Torex Gold Resources Inc. [TXG-TSX] reported positive assay results from the company’s continuing drill program at the El Limon Guajes underground mine, including zones referred to as Sub-Sill and El Limon Deep (ELD). The latest drilling results support the company’s strategic priority to optimize and extend the mine life of ELG Underground beyond current reserves.

Jody Kuzenko, President and CEO, stated: “ELG Underground has been a significant driver of Mineral Reserve and Resource growth over the last several years, and the latest results from the ongoing drill campaign continue to validate our positive outlook. We are excited about the long-term prospects of the ELG Underground given the potential to continue to grow higher grade reserves and resources while steadily increasing mining rates toward a target of 2,000 tonnes per day. The upside reserve potential of the ELG Underground also supports our plan to fill the mill beyond 2027, when, on the current reserve case, Media Luna is expected to become the sole source of feed to the processing plant.

“At ELD, infill drilling successfully intersected high grade mineralization 110 metres below the current reserve envelope, which bodes well for reserve replacement and ongoing reserve growth. Key intersects include 16.96 g/t gold over a core length of 17.5 metres, 16.87 g/t gold over 9.7 metres, 10.39 g/t gold over 11.7 metres and 13.49 g/t gold over 5.5 metres.

“Step-out and infill drilling at Sub-Sill South has also been positive with several impressive intersects, including 7.18 g/t gold over a core length of 21.3 metres, 10.01 g/t gold over 9.7 metres and 7.66 g/t gold over 8.9 metres. Although further drilling is required, results to date highlight the potential for Sub-Sill South to be developed into a new underground mining front. Sub-Sill South is located 120 m south of the producing Sub-Sill deposit and 470 m north of a zone of mineralization below the El Limon Sur open pit.

“Additionally, Portal #3 ramp development to the lower areas of ELD and Sub-Sill is now complete. Construction of drill platforms are in progress, which will allow the Company to more effectively carry out infill and step-out drilling at depth at both Sub-Sill and ELD. The completion of Portal #3 will also reduce underground haul distances, which is expected to support further efficiencies and cost containment initiatives within the ELG Underground.”

In 2022, the company plans to drill 27,000 metres within the ELG Underground through a mix of infill and step-out drilling. Infill drilling is targeting to upgrade Inferred Resources within the Sub-Sill and ELD deposits.

The ELG Underground is on track for another strong year of production in 2022, with 43,000 ounces of gold produced (50,000 ounces of gold mined prior to process recoveries at 5.98 g/t gold) in the first half of the year. Over the last three calendar years, annual production from the ELG Underground has averaged approximately 85,000 ounces (97,000 ounces prior to process recoveries at an average gold grade of 7.36 g/t).

Torex expects to invest approximately $39M in drilling and exploration across the broader Morelos Property in 2022, including $5M of definition and grade control drilling within the current operations.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100%-owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 km southwest of Mexico City. The company’s principal asset is the Morelos Complex, which includes the El Limon Guajes (ELG) Mining Complex, the Media Luna Project, a processing plant and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022.

As at December 31, 2021, Proven Reserves for the ELG Underground were estimated at 0.11 million tonnes averaging 7.23 g/t gold and Probable Reserves for the ELG Underground were estimated at 2.566 million tonnes averaging 5.68 g/t gold.