“We are very pleased to be within a whisker of our M & I resource target of 5 million ounces of gold at the two known Morelos gold deposits north of the Balsas River. These very positive results will allow us to finalize our plans for the mine and 14,000 tonnes per day mill, and complete a feasibility study by the end of July 2012. In addition, we can now concentrate the majority of our future drilling efforts on exploration targets south and north of the Balsas River in the search for additional gold deposits,” said Fred Stanford, President and CEO of Torex.
The table below summarizes the estimated tonnes, grade, and contained ounces.
Morelos Mineral Resource Estimate at a 0.5 g/t Au Cutoff Grade. Effective date is 4 May, 2012. E. Orbock, RM SME, and M. Hertel, RM SME, Qualified Persons
|Gold Grade |
|Gold Ounces |
|Sub Total M&I||32.1||3.04||3,135||5.92||6,108|
Notes to accompany Mineral Resource table
- Mineral Resources are not Mineral Reserves until they have demonstrated economic viability
- 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 accordence with CIM (2010) guidelines
- Mineral Resources are reported using a long-term gold price of US$1400/oz and silver price of US$26/oz
- Mining costs used is US$1.65 per tonne and processing costs at US$11.51 per tonne. General and administrative costs were estimated at US0.98$ per tonne.
- Gold recoveries are dependent on grade and rock type and range from 38% to 93%.
- Silver metallurgical recoveries by rock type range from 21% to 47%.
- Assumed pit slope angles range from 32 to 51º
The table below illustrates the sensitivity of the mineral resource estimate to changes in cut-off grade. The base case at a cut-off grade of 0.5 g/t Au is highlighted. The table shows that the mineral resource estimate is not particularly sensitive to cut-off grade.
Sensitivity of Morelos Mineral Resource Estimate to Cut-off Grade Based on Open Pit Mining. Effective date is 4 May, 2012. E. Orbock, RM SME, and M. Hertel, RM SME, Qualified Persons
|Cut-off Grade (g/t)||Category||Tonnes||Grade (g/t)||Ounces (gold)|
|0.4||Meas. & Ind.||56.9||2.66||4,869,000|
|0.5||Meas. & Ind.||53.8||2.79||4,824,000|
|0.6||Meas. & Ind.||51.5||2.89||4,783,000|
|0.7||Meas. & Ind.||49.4||2.98||4,740,000|
|0.8||Meas. & Ind.||47.1||3.09||4,684,000|
|0.9||Meas. & Ind.||44.7||3.22||4,617,000|
Note: Highlighted is base case
The new mineral resource estimates set out above have been prepared by AMEC E&C Services Inc. (AMEC), of Sparks, Nevada. Torex will file a NI 43-101 Technical Report on SEDAR within 45 days of this announcement.
Mineral Resource Estimate Methodology
Within the Morelos project 1,206 drill holes (187,943) meters support the mineral resource estimate. Mineralized domains were established by interpretation of geological, structural and assay information on cross sections, long sections and plan. Interpretations were reconciled to create the mineralized domains. Assays within each domain were composited into 3.5 meter lengths for estimation of grade to 7 meter cubic blocks. Search distances were established using variograms for each domain. Range of influence of high grade outlier composites within each domain were restricted and capped. Gold composites within the high grade skarn domain were capped between 30 to 35 gpt Au outside of the 17.5 meter range of influence, to 15 to 25 gpt Au within the skarn domain and 7.5 Au gpt outside of the skarn domain. Silver composites were capped at 80 gpt Ag within the skarn domain and 40 gpt Ag outside of the skarn domain. Ordinary Kriging was used to interpolate gold and silver grades. MineSight(r) a commercially available geologic modeling and mine planning software package, was used to produce a three dimensional block model. Specific Gravity (SG) was assigned by rock type and mineralization. SG was determined from wax density calculations completed in 2012. Resources are reported within a Lerchs-Grossmann (L-G) optimized shell using a $1400 US dollar gold price and a $26 US dollar silver price per ounce. The L-G shell is implemented as a test for reasonable prospect of economic extraction and uses current operating and mining cost, recoveries, and pit slopes by sector to produce a conceptual open pit shell. The L-G was run using Datamine(r) NPV Scheduler 4, a commercially available open pit mine planning and optimization software package.
The Mineral Resource estimates were prepared in accordance with the 2010 CIM Definition Standards for Mineral Resources and Mineral Reserves as incorporated by reference in National Instrument 43-101 of the Canadian Securities Administrators. The AMEC Qualified Persons for the estimates are Mr Mark Hertel, RM SME for Guajes and Mr. Edward J.C. Orbock III, RM SME for El Limon. Mr Hertel and Mr Orbock have verified the data in the news release that pertain to the mineral resource estimates.
At the Morelos Gold Project, all of the analytical work is performed by SGS de Mexico S.A. de C.V. (“SGS”) in Mexico. Sample preparation is done at a dedicated sample preparation laboratory operated by SGS at the project site in Nuevo Balsas, Guerrero, Mexico. The Au analyses (fire assay with an atomic absorption or gravimetric finish) and multi-element geochemical analyses are completed by SGS at their analytical facilities in Durango, Durango, Mexico. Torex has a Quality Assurance/Quality Control (“QA/QC”) program in place that includes 5% each of the Certified Reference Materials, blanks, field duplicates and preparation duplicates. The QA/QC program as designed has been approved by AMEC E&C Services, Inc. and is overseen by Alejandro Kakarieka, Vice President of Exploration for Torex. The Company follows strict QA/QC protocol measures in keeping with industry standards and regulatory reporting requirements.
Mr. Jerry E. Snider, B.Sc. Mining Engineering, MBA, Project Manager of Torex, is the Qualified Person who has reviewed this news release, and is responsible for the technical information reported herein, including verification of the data disclosed, the sampling, analytical and test data underlying the technical information.
Torex Gold Resources Inc. is a well funded, growth-oriented, Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City in the highly prospective Morelos Gold Belt. The project covers an area of 29,000ha 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 updated mineral resource estimate concerning the Morelos Gold Project, the anticipated timing for the completion of an updated technical report on the project (the “Report”), and the anticipated final findings to be contained therein. 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 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 assumptions and qualifications to be set forth in the Report, the timing of finalization of the Report, and other risk factors disclosed elsewhere in the Company’s public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company’s expected financial and operating performance 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.