The company said the project hosts a gold equivalent (AuEq) indicated resource of 3.54 million ounces at an average grade of 5.27 g/t, marking a 58% increase in contained metal compared to a previous estimate dated December 31, 2019.
Of the indicated resource, 61% of the contained value is attributable to gold, 31% to copper, and the remainder to silver.
The company also announced an updated inferred resources (exclusive of indicated) of 2.48 million ounces of AuEq at an average grade of 4.08 g/t AuEq.
Torex Gold shares eased 0.35% or $0.06 to $16.97 on volume of 130,550. The shares are currently trading in a 52-week range of $25.52 and $14.81.
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 km southwest of Mexico City.
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.
In addition, the Media Luna deposit is an early-stage development project that 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.
“Infill drilling at Media Luna since the start of 2020 and into the first few months of 2021 was successful in upgrading 8.3 million tonnes of inferred resources to the indicated resource category,” said Torex Gold President and CEO Jody Kuzenko.
“The 2021 infill drill program is targeting to upgrade additional resources to the indicated category for inclusion in the upcoming feasibility study, which remains on track for completion in the first quarter of 2022 and will form part of an updated technical report for the entire Morelos property.
The latest estimates are based on 568 core holes (approximately 241,800 metres), of which 137 (approximately 36,000 metres were completed under the 2020 program and 38 (approximately 11,800 metres) from the 2021 infill drill campaign prior to April 30, 2021.
The remaining drill holes planned under the 44,000-metre infill program for 2021 will be included in a subsequent resource update, which will form the basis of the Media Luna feasibility study.