Torex Gold reaches commercial production at Media Luna
Torex Gold Resources Inc. [TXG-TSX, OTC-TORXF], currently Mexico’s largest gold producer, said it has reached the commercial production stage at its Media Luna mine. Amongst other criteria, commercial production is declared when construction is substantially complete, mine and mill throughput have averaged over 40% and 60% of the design rates for 30 days respectively, product is saleable,and metallurgical recoveries have averaged at least 60% of design recovery levels.
Torex is an intermediate gold producer, engaged in development and exploration at its 100%-owned Morelos Gold Property, which covers an area of 29,000 hectares in the Guerrero Gold Belt, about 180 kilometres southwest of Mexico City. The company has previously said it is on track to achieve annual payable production of 400,000 to 450,000 ounces of gold equivalent AuEQ this year. In the first quarter of 2025, the company reported AuEq production of 59,630 ounces.
Within the Morelos Gold Property, the company’s principal assets are the El Limon Guajes (ELG) Mining Complex, which consists of the El Limon, Guajes and El Limon Sur open pits (the ELG Open Pits), The El Limon Guajes underground mine, including zones referred to a Sub-Sill and El Limon Deep (ELD) and the processing plant and related infrastructure.
These operations reached in the commercial production stage in April 1, 2016.
Torex has been working to develop the Media Luna deposit, which is located on the same concession as The Guajes, El Limon and Sub-Sill deposits.
Torex has said it was planning US$848 million in capital expenditures to bring the Media Luna project into commercial production. That includes US$85 million worth of underground development during the pre-commercial production period from the fourth quarter of 2023 to the fourth quarter of 2024.
“The delivery of Media Luna and our transition to become both a gold and copper producer, substantially within budget and schedule, demonstrates Torex as not only a consistent and reliable operator, but also a company capable of achieving excellence in the execution of major and complex projects,’’ said Torex President and CEO Jody Kuzenko.
“Notably our strong operational performance through the build period, supported by a backdrop of record gold prices, allowed us to accomplish what is largely unheard of in the industry – funding the project almost entirely through the generation of cash from our existing operations at the ELG,’’ he said. “The modest level of net debt accumulated through the build period will be repaid quickly as the company pivots to positive free cash flow generation in the middle of 2025.’’
On Friday, Torex Gold shares eased 3.4% or $1.50 to $43.06. The shares trade in a 52-week range of $49.17 and $18.81.