Torex Gold Resources drills 18.9 g/t AuEq over 32.9 metres at EPO, Mexico

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Torex Gold Resources Inc. [TXG-TSX] reported results from the 2022 drilling program at EPO, a deposit located to the north of the Media Luna deposit, Mexico, in close proximity to the Guajes tunnel, south of Balsas River. The program was focused on upgrading inferred resources to the indicated category and expanding inferred resources through step-out drilling.

Jody Kuzenko, president and CEO, stated: “We are very encouraged by the results of the 2022 drilling program at EPO, which is expected to achieve our target of upgrading approximately half of the current Inferred Mineral Resource to the Indicated category. We are also optimistic about the potential to further increase the size of EPO, as the deposit remains open to the north, south and west. Results from infill drilling targeting to upgrade Inferred Resources to the Indicated category conducted in 2022, and the infill program planned for the first half of 2023, will form the basis of an internal prefeasibility study on EPO, which we expect to complete in H1 2024.

“Infill drilling at EPO returned intersections with similar thickness and even better grades than previous drilling in these areas. Based on the 2022 drill results, we expect a reasonably high conversion rate when upgrading Mineral Resources from the Inferred category to the Indicated category. Notable assay results include 18.9 g/t gold equivalent (g/t AuEq) over a core length (not true width) of 32.9 metres, 107.7 g/t AuEq over 4.3 metres, 10.8 g/t AuEq over 35.1 metres, 7.3 g/t AuEq over 42.0 metres, and 16.4 g/t AuEq over 17.2 metres.

“Step-out drilling to the south and west of EPO was also successful in extending the mineralized footprint of the deposit approximately 200 m to the west and 250 metres to the south. Based on the results of the program, we expect to add Inferred Mineral Resources within the area drilled off.

“Drilling EPO, with a view to advancing to the mine design stage, is a strategic priority given the potential for EPO to play a key role in supporting our efforts to fill the mill and maintain consistent gold equivalent production beyond 2027. These drill results continue to demonstrate the underlying resource potential of the Morelos Property and reinforce our positive outlook on our ability to complement future production from Media Luna.”

During 2022, approximately 30,100 metres were drilled at EPO, for which 100% of assays have been received.

Drilling at EPO in 2022 was focused on both upgrading and expanding Mineral Resources. Infill drilling was primarily targeted at upgrading Inferred Mineral Resources to the Indicated category, with the Indicated Resource to be used as the basis for an internal prefeasibility study on EPO. Expansion drilling was primarily targeted at increasing the overall size of the Mineral Resource.

In total, the company invested over $19 million in drilling within the Media Luna Cluster in 2022. A similar level of drilling is anticipated in 2023, with the 2023 program focused on upgrading Inferred Resources at EPO and expanding the overall mineralized footprint of the Media Luna Cluster.

Approximately 16,100 metres of drilling in 2022 was directed towards upgrading Inferred Resources to the Indicated category.

Results from the Indicated Resource drilling carried out in 2022, in addition to drilling planned in H1 2023, will form the basis of an internal prefeasibility study evaluating the economics of developing a new mining front at EPO. The prefeasibility study is expected to be completed in H1 2024. If economic, EPO would contribute to the company’s strategic priority of filling the mill beyond 2027 when, based on year-end 2021 Mineral Reserves only, Media Luna is the only source of ore for the processing plant.

Approximately 14,000 metres of drilling in 2022 was directed towards expanding Mineral Resources at EPO. Based on the results of the drilling conducted in 2022, the company expects to add Inferred Resources, which are expected to offset a portion of Inferred Mineral Resources upgraded to the Indicated category.

Drilling carried out in 2022 was successful in extending the mineralized footprint of EPO ~200 metres west and ~250 metres south, directions in which mineralization remains open.

Torex is an intermediate gold producer engaged in the exploration, development, and operation of its 100%-owned Morelos Property, an area of 29,000 hectares in the 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) Mine Complex, the Media Luna Project, a processing plant, and related infrastructure.

Commercial production from the Morelos Complex commenced on April 1, 2016. Torex’s key strategic objectives are to optimize and extend production from the ELG Mine Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.

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