Torex Gold Resources Inc. [TXG-TSX] reported its first gold pour December 29 of an estimated 350 ounces, and a similar amount of silver, in doré form, from its 100%-owned El Limon-Guajes Mine (ELG) in southwest Mexico. The entire processing circuit, from crushing through to dry stack tailings disposal, is now operational and has been used in the production of these first ounces.
Fred Stanford, President and CEO stated, “This is an exciting milestone and we want to thank the thousands of construction, mining, processing, support, and service personnel, and their leaders, that have efficiently and effectively turned intentions into reality. For the uninitiated, it can be difficult to envision the number and size of the hurdles that they must clear in order to build a mine, plant, and infrastructure of this scale and complexity. Their accomplishments tend to be “unsung” and we would like to take this moment to acknowledge their impressive achievement in getting this project built on time and on budget”
Mining from the Guajes pit is ahead of schedule and the mine plan has been adjusted to allow for the drawdown of the ore stockpile through 2016. In the processing plant, the ramp-up has started with the utilization of 6 of 11 leach tanks and 5 of 7 of the tailings filters. As production volumes increase, additional leach and filtration capacity will be utilized. Construction of the remaining tanks and filters are completed and commissioning is underway.
Ore from the El Limon pit is necessary to achieve full production and with the successful resettlement of the La Fundicion village, the focus has shifted to road building and pre-stripping on the El Limon ridge. Both of these activities are progressing smoothly. Construction of the El Limon crusher continues to advance ahead of schedule and assembly of the RopeCon is effectively complete and will be commissioned after the completion of the El Limon crusher, which provides the feed to the RopeCon. The commissioning of both the crusher and RopeCon is anticipated for Q2/16.
Future Updates and Guidance
Construction continues on non-process related infrastructure, i.e. the truck maintenance shop, the second village, some rainy season water control structures, etc. Updates on continuing ancillary construction progress will be provided as specific construction activities conclude.
Due to the many unknowns during the start-up of a new processing plant, it is challenging for the Company to provide estimates of quarterly production through the ramp up period. Therefore, Torex will provide quarterly updates on the production ramp up progress that has been accomplished and will refrain from forward looking quarterly guidance during 2016.
Torex is engaged in the exploration and development of its 100%-owned Morelos gold property in the Guerrero Gold Belt 180 km southwest of Mexico City. Within this property, Torex has two assets: the ELG Mine, currently in production, and the Media Luna Project, at an advanced stage of exploration. Torex intends to identify a pipeline of future economic deposits within its property, which remains 75% unexplored.