(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, Ontario, April 14, 2020 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announces Q1 2020 gold production of 108,530 ounces. Gold sold during the quarter was 108,060 ounces at an average realized gold price of $1,570 per ounce.
Q1 2020 Operational Highlights:
- Gold production of 108,530 ounces
- Plant throughput averaged 12,460 tpd
- Underground ore mined averaged 1,110 tpd
- Open pit ore mined averaged 19,080 tpd
- Open pit strip ratio of 6.8:1
After reconciliations have been completed, gold grades mined, gold grades processed, and gold recoveries will be reported with the Q1 2020 financial results, which are set to be released prior to market open on Wednesday, May 6, 2020.
Fred Stanford, President and CEO of Torex, stated:
“This has been a good quarter for production and an excellent quarter for safety. Health protection measures put in place appear to have been effective, with no suspected or confirmed cases of COVID-19 at site. Prior to the recent COVID-19 related suspension of operations, we were on track to achieve 2020 production guidance of 420,000 to 480,000 ounces of gold. The temporary suspension of operations is unfortunate but necessary as we all do our part to contain this virus. We are preparing for the restart of operations under various scenarios, including a scenario where social distancing requirements enable only a partial restart. Whatever the requirements, our team will be prepared to resume operations in a productive and safe manner.
“During this period, we continue to advance Media Luna, with design and engineering work for the feasibility study ongoing and permitting work continuing. Excavation of the Media Luna tunnel is scheduled to start this summer, with portal design and tunnel plans advancing as scheduled. The infill drill program at Media Luna has also been impacted by the suspension of operations. As a result, the feasibility study could be delayed a quarter, which will not affect the schedule of the Media Luna Project.”
Jody Kuzenko, COO of Torex, added:
“I am both impressed and appreciative of the continued focus, hard work, and dedication of our employees and contractors during this unusual time. The culture of operational discipline around safety we are building is taking hold, with incident reporting up and the number of injuries remaining low. We had zero lost time injuries during the quarter and exited March with a LTIF of 0.31 per million hours worked, an impressive feat that all within the organization can be proud of.
“Throughput during the quarter was impacted by the additional 88-hour maintenance shutdown we took in January to address alignment concerns in the SAG mill drive train. Since this work was completed, vibration and temperature measurements have been well within design tolerances. Throughput subsequently improved, with plant availability coming in at 90% for the quarter. Relative to prior quarters, grade was lighter as we worked through some pockets of lower grade ore in the El Limón pit.
“Testing of oxidation is proving to be successful. The addition of oxygen in the leach circuit has led to a reduction of cyanide consumption of approximately 25% relative to consumption levels without oxidation. Recoveries are also trending higher at +2% above design levels. We all look forward to the resumption of production and further advancing continuous improvement initiatives across the business.”
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 kilometres southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine 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 ELD, and the processing plant and related infrastructure, which commenced commercial production 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 “Technical Report”). The property remains 75% unexplored.
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|TOREX GOLD RESOURCES INC.|
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 also includes, but is not limited to, statements that: health protection measures put in place appear to have been effective; prior to the recent COVID-19 related suspension of operations, the Company was on track to achieve 2020 production guidance of 420,000 to 480,000 ounces of gold; the Company is preparing for the restart of operations under various scenarios, including a scenario where social distancing requirements enable only a partial restart; whatever the requirements, the Company will be prepared to resume operations in a productive and safe manner; during this period, the Company continues to advance Media Luna, with design and engineering work for the feasibility study ongoing and permitting work continuing; excavation of the Media Luna tunnel is scheduled to start this summer, with portal design and tunnel plans advancing as scheduled; as a result of the in-fill drill program at Media Luna being impacted by the suspension of operations, the feasibility study could be delayed a quarter, which will not affect the schedule of the Media Luna Project; the continued focus, hard work and dedication of the Company’s employees and contractors during this unusual time; the culture of operational discipline around safety the Company is building is taking hold, with incident reporting up and the number of injuries remaining low; testing of oxidation is proving to be successful; recoveries are trending higher at +2% above design levels; and the Company looks forward to the resumption of production and further advancing continuous improvement initiatives across the business. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “believes”, “future”, “strive” or variations of such words and phrases or state that certain actions, events or results “can”, “may”, “could”, “would”, “might”, “be achieved”, “appears” or “focus on”. 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, the inability of the Company’s mining and exploration operations to operate as intended due to shortage of skilled employees, shortages in supply chains, inability of employees to access sufficient healthcare, significant social upheavals, government or regulatory actions or inactions, decreased demand or the inability to sell precious metals or declines in the price of precious metals, capital market volatility, or other unknown but potentially significant impacts, and uncertainty involving skarns deposits and the management of soluble iron and those risk factors identified in the Technical Report and the Company’s annual information form and management’s discussion and analysis. Notwithstanding the Company’s efforts, there can be no guarantee that the Company does not have employees who have the COVID-19 infection or that the Company’s measures to protect employees and surrounding communities from COVID-19 during this period will be effective. Forward-looking information are based on the assumptions discussed in the 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.