TORONTO, Ontario, August 24, 2010 - Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) signed this afternoon a surface access agreement with Real Del Limon Ejido. Together with the agreements signed with Rio Balsas Ejido in May and with Puente Balsas Sur Ejido in July, the signing of this agreement constitutes the final step in providing the Company with full access to the highly prospective exploration areas of the Morelos Gold Project. Prior to the expirations of these one-year agreements, the Company will seek to complete negotiations with these Ejidos to secure permanent access to the Morelos Gold Project lands for mining and processing activities. These permanent land purchase or lease agreements will also include access rights for future exploration activities.
“This is an important and much anticipated milestone in the development of this company,” said Fred Stanford, President and CEO of Torex. “This agreement allows us to execute on the Company’s planned exploration programs and constitutes a measureable outcome from the continuous energy we have put into gaining the trust and respect of the communities within which we operate. We strongly believe this event removes an important risk factor that had been associated with the Project for some time,” he added.Exploration Update
Exploration team recruitment has progressed well at Morelos and is being spearheaded by two key members at the site: Chief Geologist
, Jeff Brooks, MS, BA, Geo PhD, an economic geologist and skarn specialist with over 25 years experience in planning and execution of drilling programs. Jeff joined the team in May of this year and brings a proven record of utilizing model construction as a basis for finding mineral resources; Project Manager
, Gene Snider, BSc Mining Engineer, MBA, has over 25 years experience with surface and underground mines, coordinating the development of new mining operations, including supervision of operations improvements and technical services. Gene joined Torex in July of this year. Both gentlemen have extensive mining experience in Latin American and are fluent in Spanish. The field teams are developing well with just a few more positions to be filled and training for local staff is well underway.
As previously reported, drilling at Morelos started at the end of April with one man-portable rig and the intention to add one drill rig every two months as exploration personnel became available to support the program. After signing an agreement with Major Drilling a skid mounted rig was added in early July, and in August a second man portable rig was added to the fleet and it started drilling south of the river. A total of 16 holes constituting 5,571 m of drilling were drilled in the targets of Caballo, Mangos, Naranja and - more recently - in Media Luna, south of the Balsas River. Three of these holes remain active.
This early drilling focused on condemnation targets while the new team was getting organized and familiar with the geology in the area. This drilling was essential to provide information to support the plant location decisions that were a part of the pre-feasibility study, which is currently underway. Condemnation drilling has now been finalized and the Company plans to expand the exploration program to six rigs by the end of October, with a 50/50 split between upgrading and expanding existing resources, and exploring for new resources south of the river. Development Update
The Development team is led by Dawson Proudfoot, P.Eng, Project Manager Morelos Development
. Dawson has 25 years in the hard rock mining industry, extensive mine design experience from concept through to operation, experience in project management for mining projects and the development and implementation of technology in underground mining. He joined Torex in March.
M3 of Tucson Arizona has been retained as lead consultant supported by SRK Canada for mine design and AMEC for geology and waste management. The team is actively engaged in the preparation of a pre-feasibility study expected to be completed during the fourth quarter on 2010. This study will include an updated resource model by AMEC. Project work has determined that mining for both Guajes West and East deposits will be via open pit mining methods, while work continues evaluating both open pit and underground mining options for El Limon.
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.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Tel. (647) 260-1502
Vice President Investor Relations
Tel. (647) 260-1503
Email: email@example.comCAUTIONARY 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 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 forward-looking 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.