The independent technical report, entitled “Morelos Gold Project, 43-101 Technical Report Feasibility Study” (the “Technical Report”), dated October 1, 2012, effective date of September 4 2012, was prepared by M3 Engineering & Technology Corporation of Tucson, Arizona, AMEC E&C Services Inc., of Sparks, Nevada, AMEC E&I of Mississauga, Ontario, SRK Consulting (Canada) Inc. of Toronto, Ontario, SRK Consulting (U.S.) Inc. of Denver Colorado and Golder Associates Inc. of Mississauga Ontario. The Technical Report was authored by Daniel H. Neff, Thomas L. Drielick, Edward J.C. Orbock III, Mark Hertel, Prabhat Habbu, Brian Connolly, Michael Levy, Vladimir Ugorets and Benny Susi all Qualified Persons as defined by, and independent of Torex, for the purposes of NI 43-101 requirements and who have prepared or supervised the preparation of the scientific and technical information contained herein. The Technical Report is available on SEDAR at www.sedar.com and on the Company’s website at www.torexgold.com.
There were no material differences in the mineral resources or mineral reserves between the Technical Report and the technical disclosure contained in the Company’s September 4, 2012 news release.
Included in this report is the following Mineral Reserve Statement:
Table 1-1 Morelos Mineral Reserve Statement - effective date 28 August 2012
|Deposit||Reserve Category||Tonnes||Gold grade||Contained Gold||Silver grade||Contained Silver|
|(millions)||(g/t)||(millions oz)||(g/t)||(millions oz)|
- Mineral reserves are reported based on open pit mining within designed pits above a 0.5 g/t recovered Au cut-off grade, and incorporate estimates of dilution and mining losses. The cut-off grade on an in-situ grade basis varies by ore type and averages approximately 0.60 g/t Au. The cut-off grade and pit designs are considered appropriate for long term metal prices of $1,250/oz gold and $22/oz silver.
- Mineral reserves are founded on, and are included within, Morelos mineral resource estimates with an effective date of 11 June 2012.
- A legal opinion states that Minera Media Luna, S.A. de C.V. (a wholly owned subsidiary of Torex) has mineral rights to the concessions encompassing the El Limón and Guajes deposits, however surface rights within the project area have not yet all been secured.
- Mineral reserves were developed in accordance with CIM (2010) guidelines.
- Numbers may not add due to rounding.
- QP for mineral reserve estimate is Brian Connolly, P.Eng.
Table 1-2 Morelos Open Pit Mineral Resource Statement - Effective date 11 June 2012
|Sub Total M&I||32.1||3.03||3,117||5.91||6,086|
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Measured and Indicated Mineral Resources are inclusive of Mineral Reserves.
- Mineral Resources are reported above a 0.5 g/t Au cut-off grade.
- Mineral Resources are reported as undiluted; gold grades are contained grades.
- Mineral Resources are reported within a conceptual open pit shell.
- Mineral Resources were developed in accordance with CIM (2010) guidelines.
- Mineral Resources are reported using a long-term gold price of $1,400/oz and silver price of $26/oz.
- Mining costs used are estimated at $1.65 per tonne and processing costs are estimated at $11.51 per tonne. General and administrative costs were estimated at $0.98 per tonne.
- Gold recoveries are dependent on grade and rock type and have a weighted average recovery of 87.33%.
- Silver metallurgical recoveries by rock type show a weighted average of 33%.
- Assumed pit slope angles range from 32° to 51°.
- Totals may be different due to rounding of numbers.
- QP for El Limón is Edward J. C. Orbock III, RM SME and QP for Guajes is Mark Hertel, RM SME
Torex is a well funded, growth-oriented, Canadian based resource company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, which is, located 180 kilometers southwest of Mexico City in the highly prospective Morelos Gold Belt. The project covers an area of 29,000 hectares of which more than 75% remains unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Tel. (647) 260-1502
Vice President Investor Relations
Tel. (647) 260-1503
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company’s feasibility study, including with respect to mineral resource and mineral reserve estimates; the ability to realize estimated mineral reserves; the Company’s expectation that the Morelos Gold Project will be profitable with positive economics from mining; recoveries, grades and annual production; receipt of all necessary approvals; the parameters and assumptions underlying the mineral resource and mineral reserve estimates and the financial analysis; and gold prices. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates” or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that it believes to be relevant and reasonable in the circumstances, at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors identified in the Company’s annual information form, which is available at www.sedar.com. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company’s exploration results and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.