TORONTO, Ontario, March 25, 2021 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announces results from the 2020 infill drilling program at Media Luna. The primary purpose of the infill program was to upgrade Inferred Mineral resources to the Indicated category within Media Luna Upper (“MLU”). The program follows on the 2017-2019 infill program carried out in Media Luna Lower (“MLL”), which resulted in a maiden Indicated resource of 2.24 million gold-equivalent ounces.
Jody Kuzenko, President & CEO stated:
“Results of the 2020 infill drilling program have enhanced our understanding of the Media Luna deposit, specifically in MLU, where the 2020 program was focused. Assay results received to date validate the lateral and horizontal continuity of the mineralized skarn zone in MLU and confirm the presence of higher-grade mineralized zones within the broader resource envelope, as outlined in Table 1. The results also indicate that, while grade is relatively consistent, there is more pronounced variability in the thickness of the mineralized skarn zone in MLU, as compared to MLL.
“Given the Government mandated COVID-19 suspension of business activities in April 2020, the infill drill program was suspended for close to three months. While our exploration team did a commendable job resuming and accelerating the program post suspension, the planned 128-drill hole program was not fully completed by year-end, with the remaining 20 holes finished in late-February. Upon receipt of final assays, results from the remaining 20 drill holes will be incorporated within the geological and block models, with the release of an updated Mineral Resource estimate to follow in Q2 2021.
“With completion of the 2020 drill program, we have now started a 44,000-metre infill program targeting to upgrade Inferred resources between MLL and MLU. The resulting updated resource estimate will form the basis for the Media Luna Feasibility Study, which is on track to be concluded in Q1 2022.”
Table 1: Highlights of 2020 Infill drilling results at Media Luna4
|DH ID1||Interval (m)||
Notes to Highlights drilling results table:
- “D” in the drill hole number (“DH ID”) indicates a directionally drilled hole, off a ‘mother’ drill hole. “DA” denotes a bypass hole from the principal hole.
- Intersections are reported as true thickness, based on current geological understanding of the mineralization.
- The gold equivalent grade calculation used is as follows: AuEq. = Au (g/t) + Cu % *(77.16/49.83) + Ag (g/t) * (0.64/49.83).; assumes 100% metal recoveries; metal prices used were: gold = US$1,550/oz, silver = US$20.00/oz, & copper = US$3.50/lb.
- See notes in Table 1 for compositing parameters.
Highlights from 2020 infill drilling program are outlined in Table 1, with a full list of drill hole results reported in Table 2. Refer to Figure 1 for general location map and Figures 2 to 5 for geology, drill hole locations, and selected assay results.
The infill drilling conducted to date has increased drill density in specific areas of the resource model to an approximate 30-metre spacing (from an approximate 100-metre spacing). The 2017-2019 infill drilling program at MLL successfully upgraded 2.24 million gold equivalent ounces (12.6 million tonnes at an average gold equivalent grade of 5.55 g/t), including 1.32 million ounces of gold (gold grade of 3.27 g/t) with the remainder of the Indicated resource attributable to copper, and to a lesser extent silver. The 2020 infill program was executed with the primary purpose of upgrading Inferred Mineral resources in MLU to the Indicated category.
The Company received assay results for 108 holes of the planned 128-hole drill program, with assay results still outstanding for the remaining 20 drill holes completed following year-end. The 2021 infill drilling program is targeting to upgrade Inferred Mineral resources for portions of the deposit located between MLL and MLU. The cost of the 44,000-metre program in 2021 is guided at US$14 million.
The final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study. Unlike the 2018 Preliminary Economic Assessment, which was based solely on Inferred Mineral resources, the upcoming Feasibility Study and Mineral reserves will be generated using Measured and Indicated Mineral resources, as per the requirements of National Instrument 43-101. The Feasibility Study is scheduled for release in Q1 2022 and will form part of an updated Technical Report for the Morelos Property. This report will also include an updated mine plan for the Company’s El Limón Guajes mine, located seven kilometres to the north of Media Luna.
The Media Luna deposit is hosted within the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene stocks, sills, and dykes of granodioritic to tonalitic composition. Skarn-hosted gold-silver-copper mineralization is developed within the sedimentary rocks along the contacts of intrusive rocks as well as within altered dykes of the skarn envelope. The main portion of this mineralized package dips to the southwest at approximately 30°; in the lowest part of the known mineralization, the dip steepens to approximately 60°, while the northernmost portion of the deposit dips to the north, resulting in a broad antiformal geometry of the deposit.
Mineralization at Media Luna is hosted in skarn that developed at the contact of the intrusive granodiorite and overlying sedimentary rocks; the skarn is characterized by a mineral assemblage of pyroxene, garnet, and magnetite. Metal deposition and sulfidation occurred during retrograde alteration and is associated with a mineral assemblage comprising amphibole, phlogopite, chlorite, and calcite ± quartz ± epidote as well as variable amounts of magnetite and sulfides, primarily pyrrhotite. Additional mineralization is associated with skarn developed within and along dykes and sills above the main granodiorite intrusion. Endoskarn from the granodiorite intrusive also shows localized mineralization in MLU related to quartz vein systems.
Additional information on the Media Luna deposit, the updated Media Luna Preliminary Economic Assessment (PEA) and analytical and sampling process is available in the Company’s technical report (2018 Technical Report) entitled the “Morelos Property, NI 43-101 Technical Report, ELG Mine Complex, Life of Mine Plan and Media Luna Preliminary Economic Assessment, Guerrero State, Mexico”, dated effective March 31, 2018 filed on September 4, 2018 on SEDAR at www.sedar.com and the Company’s website at www.torexgold.com.
At the Company’s Morelos Gold Property (see description above), all the Media Luna project drill core is logged and sampled at the core facility within the project camp under the supervision of Nicolas Landon, Chief Exploration Geologist for the Media Luna project. A geologist marks the individual samples for analysis and sample intervals, sample numbers, standards and blanks are entered into the database. The core is cut in half lengthwise using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a plastic sample bag and sealed with zip ties in preparation for shipment. The other half of the core is returned to the core box and retained for future reference in the Company core shack with the assay pulps and coarse rejects. The core samples are picked up at the project camp and delivered to Bureau Veritas (“BV”) to conduct all the analytical work.
Sample preparation is carried out by BV at its facilities in Durango, Mexico and consists of crushing a 1 kg sample to >70% passing 2 mm followed by pulverisation of 500 g to >85% passing 75 μm. Gold is analyzed at the BV facilities in Hermosillo, Mexico following internal analytical protocols (FA430) and comprises a 30g fire assay with an atomic absorption finish. Samples yielding results >10 g/t Au are re-assayed by fire assay with gravimetric finish (FA530-Au). Copper and silver analyses are completed at the BV facilities in Vancouver, Canada as part of a multi-element geochemical analysis by an aqua regia digestion with detection by ICP-ES/MS using BV internal analytical protocol AQ270. Overlimits for the multielement package are analyzed by internal protocol AQ374.
Torex has a sampling and analytical Quality Assurance/Quality Control (“QA/QC”) program in place that has been approved by BV and is overseen by Nicolas Landon, Chief Exploration Geologist for the Media Luna Project. The program includes 5% each of Certified Reference Materials and Blanks; blind duplicates are not included, but Torex evaluates the results of internal BV laboratory duplicates. Torex uses an independent laboratory to check selected assay samples and reference materials and has retained a consultant to audit the QAQC data for every drill campaign at Media Luna. The QAQC procedure is described in more detail in the 2018 Technical Report filed on SEDAR on September 4, 2018.
Lars Weiershäuser Ph.D., P. Geo. has reviewed, verified, and approved the data disclosed, including sampling, analytical, and test data underlying the drill results, and he consents to the inclusion in this release of said data in the form and context in which they appear in this news release. Dr. Weiershäuser is a Qualified Person within the meaning of the Canadian Securities Administrator’s National Instrument 43-101 (NI 43-101); he is a Registered Member of the Professional Society of Geoscientists Ontario (APGO #1504), has experience relevant to the style of mineralization under consideration and is the Resource Manager for the Company.
About Torex GOLD RESOURCES INC.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex comprising the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep, and the processing plant and related infrastructure, which is in the commercial production stage as of April 1, 2016, and the Media Luna deposit, which is an early stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018. The property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Direct: (647) 725-9982
Vice President, Corporate Development & Investor Relations
Direct: (647) 260-1503
Forward Looking Information
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is not limited to, statements that: the assay results received to date validate the lateral and horizontal continuity of the mineralized skarn zone in MLU, confirm the presence of higher-grade mineralized zones within the broader resource envelope, and indicate that, while grade is relatively consistent, there is more pronounced variability in the thickness of the mineralized skarn zone in MLU, as compared to MLL; upon receipt of final assays, results from the remaining 20 drill holes will be incorporated within the geological and block models, with the release on an updated Mineral Resource estimate to follow in Q2 2021; plan to complete a 44,000-metre infill program (guided cost of US$14 million) targeting to upgrade Inferred resources between MLL and MLU; the resulting updated resource estimate will form the basis for the Media Luna Feasibility Study, which is on track to be concluded in Q1 2022; the final, upgraded Mineral resource estimate for Media Luna, due for completion in Q1 2022, is expected to provide for a more robust mine plan in the upcoming Feasibility Study; the Feasibility Study is scheduled for release in Q1 2022 and will form part of an updated 2018 Technical Report for the Morelos Property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “schedule”, “continue”, “guided” and “expects” or variations of such words and phrases or statements that certain actions, events or results “will”, “will result”, or “is expected to” occur. 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, without limitation, risks and uncertainties associated with: uncertainty involving skarns deposits; and those risk factors identified in the 2018 Technical Report and the Company’s annual information form (“AIF”) and management’s discussion and analysis or other unknown but potentially significant impacts. Forward-looking information are based on the assumptions discussed in the 2018 Technical Report and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.
Media Luna Mineral Resource Estimate
For additional information on the Media Luna mineral resource estimate, as of December 31, 2019, see the Company’s AIF available on SEDAR at www.sedar.com.