Torex Gold unveils multi-year exploration strategy in Mexico
Torex Gold Resources Inc. [TXG-TSX, OTC-TORXF] said it is exploring opportunities to boost production and extend the mine life at its Morelos Complex in Mexico.
In keeping with that plan, the company has announced a multi-year exploration strategy for the Morelos property with a view to generating incremental additions to mineral resources in the near term through the generation of at least one new discovery in the mid-term, and extending the mine life at Morelos to deliver stable production and cash flow well beyond 2033.
Torex shares were virtually unchanged on the news, easing 0.28% or $0.06 to $21.43. The shares trade in a 52-week range of $22.56 and $12.40.
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 410,000 to 460,000 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.
At full production, the mine ranks amongst the largest and lowest cost gold operations in the world.
Torex said its multi-year exploration strategy is expected to enable Torex to deliver on its objective to maintain more than 450,000 ounces of gold equivalent (AuEq) production annually beyond 2027.
The company has budgeted $30 million for exploration activities in 2024 to demonstrate its of strategic priority of unlocking the full mineralized potential at Morelos
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. Media Luna is hosted in a magnetic anomaly south of the Balsas River that was discovered in March 2012.
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.
Media Luna contains 4.6 million ounces of AuEq of measured and indicated resources as well as 1.0 million ounces of AuEq of inferred material.
With Media Luna construction nearing completion, the company’s focus now shifts to exploring the 29,0000-hectare land package where 75% of the land remains unexplored.