- Torex Gold (TXG) reports Q2 results and provides a strategic update
- The expansion of the El Limón open pit, via a pushback, is expected to result in approximately 150,000 ounces of additional gold production between late-2023 and mid-2024
- The board has approved a decision to pursue the Media Luna Feasibility Study on a conventional mining basis
- Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100 per cent owned Morelos Gold Property
- Torex Gold Resources Inc. (TXG) is up 5.37 per cent and is trading at C$14.14 at1:07 pm ET
Torex Gold Resources Inc. (TXG) reports its financial and operational results for the three and six months ended June 30, 2021.
The company has also announced an expansion of the El Limón open pit and a decision to prepare the Media Luna Feasibility Study on a conventional mining basis.
Jody Kuzenko, President & CEO of Torex, stated,
“Following the excellent performance through the first half of the year, we are well on track to deliver on full-year production and cost guidance.”
“A key priority for the company is to deliver a smooth transition between ELG and Media Luna, in part by extending the life of the ELG open-pit operations beyond late-2023,” added Kuzenko.
Torex is continuing to work on de-risking and advancing Media Luna towards the first production in early 2024 and as such, the following decisions were made:
- To prepare the Media Luna Feasibility Study on the basis of conventional development and mining methods, given the outcome of various risk assessments.
- To begin the development of a second portal south of the Balsas River. This portal will enable the development of the lower part of the Media Luna deposit while providing risk mitigation for the advancement of the Guajes Tunnel from the north side of the river, which is currently underway.
- To continue with the Media Luna infill drill program through the second half of 2021.
The expansion of the El Limón open pit is expected to result in approximately 150,000 ounces of additional gold production between late-2023 and mid-2024.
The incremental open-pit production, together with the continued output from the ELG underground and use of stockpiles to top up the mill as required, is expected to support a smooth transition between the ELG open pits and Media Luna. The company plans to release a multi-year production outlook for ELG over the coming weeks.
After an analysis of the results of the Muckahi test program at ELD, the board has approved a decision to pursue the Media Luna Feasibility Study on a conventional mining basis.
In addition, with the monorail-based option, there is no alternative readily available once the decision is taken to drive the two steep ramps at Media Luna, since there would be no access to the ore via any other method without considerable investment and schedule disruption associated with driving conventional ramps.
As such, the company has determined that pursuing the Feasibility Study on a conventional mining basis is a more prudent approach in order to mitigate operational and financial risk to the business given Media Luna will be our primary source of feed at our Morelos property after mid-2024.
While the test results to date indicate that the technology is not sufficiently mature for deployment at Media Luna, the company continues to have confidence in its potential.
Aspects of the monorail-based technology are currently being deployed for the development of the Guajes Tunnel, and management will consider including a PEA level study to utilize monorail-based equipment to develop the smaller EPO deposit near Media Luna as part of the overall Technical Report to be released in Q1 2022.
EPO hosts an Inferred resource of 1.01 million gold equivalent ounces (8.0 million tonnes at a gold equivalent grade of 3.93 g/t).
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100 per cent owned Morelos Gold Property, an area of 29 thousand hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City.
Torex Gold Resources Inc. (TXG) is up 5.37 per cent and is trading at C$14.14 at1:07 pm ET.