October 28, 2010
Torex Doubles Number Of Drill Rigs At Morelos Gold Project And Provides Exploration Update
TORONTO, Ontario, October 28, 2010 - Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) plans to significantly increase the exploration program at its 100% owned Morelos Gold Project in Mexico. The Company currently has five drill rigs operating on the property and plans to increase that number to a total of eleven drill rigs by early in 2011. The total meterage for the Company’s initial drill program on the Morelos property will increase from the planned 56,500 meters to a total of 100,000 meters of drilling to be completed by the end of June of 2011.
The Company also reported today that initial assay results from its infill and extension drilling programs at El Limon and Los Guajes West intersected gold mineralization that is consistent with the existing geological interpretations and the existing resource estimates and also suggests a potential to expand the resource in both areas.
Initial drilling at the new Los Mangos target, located some 500 metres northwest of the Los Guajes West skarn-related Au resource (Figure 1), encountered significant intervals (up to 200m) of pervasive gold mineralization; typically in the 0.2 g/t to 0.5 g/t range but with some intervals of higher grades (e.g., T10-008C - 170-182m; 12m @ 1.358g/t Au; T10-008C - 386-395.3m; 9.3m @ 1.312g/t Au). The gold mineralization occurs within hypogene argillic alteration with quartz-sulfide veining and local silicification indicating the possible presence of a porphyry-related center of alteration and mineralization.
Very preliminary drilling (assays received for only two holes to date) south of the Balsas River encountered gold mineralization in skarn-related altered rocks with the best intercept (T10-011C - 352.4 to 363.8m; 11.4m @ 1.374g/t Au and 26.3g/t Ag) occurring with silicification and carbonate replacement of the Morelos Formation.
“We are very encouraged by the initial drill results at all four of the target areas tested to date. The definition and step out drilling at both El Limon and Guajes West intersected gold mineralization similar to that intersected in previous drilling. The ongoing definition and step out drilling is necessary to complete resource estimates required to finish our ongoing pre-feasibility study,” said Fred Stanford, President & CEO of Torex. “It is still early days, but drilling at both Los Mangos and south of the Balsas River is positive with typical skarn mineralization intersected south of the Balsas River and new porphyry type mineralization and alteration intersected at Los Mangos. The Company plans to double the number of drill rigs operating on the property over the next few months to enable the upgrading of the current resources and the addition of new ounces of gold,” he added.
Key operating and logistical issues that have been resolved to enable the drill program to be expanded include:
Initial Drilling Results
- Site access: access agreements have been obtained for all target areas within the project area;
- Environmental permits: all required environmental permits to enable drilling across the entire project have been received;
- Potential for U/G Mining: the new underground resource estimate for El Limon coupled with recently completed mine design work show significant potential for a highly efficient underground mine operation. Additional drilling to delineate the deposit extensions will allow for the completion of the mine design (see separate press release of this date);
- Strong geological team: a strong team of expatriates and nationals has been assembled to support the exploration and drilling programs;
- Strong logistics team: the Company has developed the logistic support system to meet the needs of this enhanced drill program;
- Access to diamond drill rigs: Major Drilling de Mexico, S.A. de C.V. (“Major”) has committed nine rigs with the corresponding drill teams to the project and Energold Drilling Corp. (“Energold”) will continue to provide two, man portable rigs.
To date, the Company has drilled a total of 15,427m during the initial phase of its 2010 drilling program. This total meterage includes 13,481m (47 drill holes completed and three in progress) in and around the known El Limon and Los Guajes resource area (Figure 1) and 1,946m (three drill holes completed and two in progress) in its exploration program in the El Naranjo area south of the Balsas River (Figure 2). The drilling program and significant assay results received to date are summarized in Tables 1 below and Table 2 attached, respectively.
North of the Balsas River
|Table 1. 2010 Morelos Gold Project Drill Program Summary|
|El Limon||Infill/ Extension||8||2,312||2||281|
|Los Guajes West||Infill/ Extension||18||5,071|| || |
|Los Guajes East||Infill/ Extension||10||1,223||1||118|
|Los Mangos||Step Out||6||2,493|| || |
|North Contact||Exploration||5||1,983|| || |
Los Guajes West
At the Los Guajes West resource area, 18 infill and extension drill holes have been completed for a total of 5,071 meters and assays for 12 of these holes have been received. These drill holes support the existing geological model and the assay results are consistent with the current resource estimate.
Exploration access to El Limon was secured in late August. Infill and extension drilling in the El Limon resource area is underway with eight holes for a total of 2,312 meters completed to date. Assay results for the first hole have been received. As at the Los Guajes West area, the geology encountered in these first eight drill holes and the initial assays support the existing resource geological interpretation for the skarn-related Au mineralization.
Results at this new target located 150-600m NW of the Los Guajes West skarn-related Au resource (Figure 1), have revealed the presence of a possible porphyry-related center of alteration and mineralization. Five of the six drill holes for a total of 2,493 meters in this area, encountered significant intervals (up to 200m) of pervasive hypogene argillic alteration with quartz-sulfide veining and local pervasive silicification. Au grades associated with this alteration were typically in the 0.2 g/t to 0.5 g/t range but significantly higher grades were encountered (e.g., T10-008C — 170-182m; 12m @ 1.358g/t Au; T10-008C - 386-395.3m; 9.3m @ 1.312g/t Au). This new, porphyry-related alteration and mineralization is contained wholly within intrusive rocks believed to be younger than the skarn-related alteration and mineralization at Los Guajes and El Limon. As such, this alteration and mineralization may represent a previously unrecognized Au mineralization event unrelated to the skarn.
Work to determine where this alteration and mineralization can be projected to the contact between the Morelos carbonate rocks and overlying Mezcala siltstones and shales is underway.South of the Balsas River
To date the Company has completed 1,826 meters of drilling in three holes (two additional holes remain in progress). Initial results indicate the presence of Ag-rich Au mineralization in the El Naranjo area similar to that previously encountered in shallow holes drilled by the Mexican Geological Survey. T10-011C encountered some skarn-related alteration but the best intercepts (e.g. 352.4 to 363.8m; 11.4m @ 1.374g/t Au and 26.3g/t Ag) occurred with silicification and carbonate replacement of the Morelos Formation.
With environmental permits now in place, roads are being built to planned drill sites that will allow the Company to access targets along the margin of the granodiorite stock in the El Naranjo and El Cristo exploration target areas (Figure 2). The geological model for this area is not fully understood, however, there appears to be spatial relationship between this granodiorite stock contact and the known mineralization in the El Limon, Los Guajes East and Los Guajes West resources (Figure 1).Expanded Exploration Program:Exploring for New Ounces South of the River:
100% exploring for new ounces
A 4,000 meter/month drill program has started with two man portable Energold rigs at El Naranjo. Two track mounted Major rigs are scheduled to arrive before year end. These rigs will be deployed on priority targets in the areas of El Cristo, El Naranjo, La Fe and Media Luna (see Fig. 2 attached).Extensional and In-fill Drilling North of the River: El Limon, Los Guajes East and Los Guajes West:
70% exploring for new ounces + 30% upgrading resources
Two track mounted Major rigs are currently drilling as part of an aggressive 18,300 meter step-out and in-fill drilling program at El Limon. A third rig will be added to the fleet by late November.
At Los Guajes East and West one skid mounted Major rig has begun the 19,800 meter step-out and in-fill drilling program. One additional rig will be added by the end of this month.
Two additional Major rigs which are scheduled to arrive before the end of January 2011 will be deployed on the priority areas according to drill results up until that time.Logistics Update
Since the Company obtained access to the El Limon area at the end of August, 4.8 kilometers of roads have been reopened for exploration and two rigs began drilling by mid September in that area. In addition to housing in Nuevo Balsas, a new camp has been opened south of the river to house geological and drilling staff. Two water piscinas from which approximately 90,000 liters/day are pumped up the hill at El Limon have been built and are in full operation. An additional water piscina is being built to meet water requirements for exploration south of the river. A total of 67 persons are currently employed at the Morelos Gold Project and this number is expected to rise to 83 by the end of 2010.Quality Assurance/Quality Control
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 Dr. Jeffrey W. Brooks, Chief Geologist for Torex.
The Company follows strict QA-QC protocol measures in keeping with industry standards and regulatory reporting requirements. Mr. Jerry E. Snider, BSc. Mining Engineer, 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.
Further information regarding the Morelos Gold Project is contained in the Technical Report effective October 6, 2009 and entitled “Gleichen Resources Ltd., Morelos Gold Project, Guerrero, Mexico, NI 43-101 Technical Report”.
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 29,000 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 future exploration and development plans concerning the Morelos Gold Project, including expected timing for mobilizing drills on the project, expected drilling results and the timing within which the Company expects to receiving drilling results, anticipated timing for the completion of a pre-feasibility study and other technical studies on the project. 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 forwardlooking information, including the 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.
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