Torex Gold resumes operations in Mexico, shares rise
Torex Gold Resources Inc. [TXG-TSX, OTC-TORXF] said the director-general of mines under the federal Ministry of Economy has lifted the temporary suspension notice and allowed for all activities within Torex’s Morelos complex in Mexico to resume.
The announcement comes almost one week after Torex received notification from the Director General of Mines under the Federal Ministry of Economy, stating that all activities within the Morelos Property were to be temporarily suspended to support an inspection associated with the fatal accident at the El Limon Guajes underground mine (ELG Underground) on December 5th, 2024.
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 said it plans to produce up to 470,000 ounces of AuEq this year.
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.
“Following notification that the temporary suspension has been lifted by the director-general of mines, all production and development activities at the Morelos complex will resume, including open-pit and underground mining, processing operations, and all activities associated with the Media Luna project,’’ said Torex President and CEO Jody Kuzenko.
“With the suspension lifted, our employees and contractor partners can get back to meaningful and productive work as we complete our own internal investigation,’’ Kuzenko said.
“Full-year 2024 production guidance remains intact and is tracking towards the lower end of the guided range of 450,000 to 470,000 ounces of gold. The project schedule for Media Luna remains unchanged with the four-week processing plant tie-in period on track to commence in February, 2025.
“When we ramp up operations and work to conclude our Media Luna project, we will never forget the tragic loss of three of our colleagues at ELG underground and will work with strengthened resolve to ensure the safety and well-being of everyone in our workplace now and in the future.’’
Torex shares advanced on the news, rising 6.7% or $1.81 to $28.92. The shares trade in a 52-week range of $32.75 and $12.79.
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.