TORONTO, Ontario, September 8, 2011 — Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) announced today its financial results for the three and nine months ended July 31, 2011.
THIRD QUARTER 2011 HIGHLIGHTS
- The Company continued to encounter significant and high-grade gold mineralization in step-out and infill drilling during the quarter
- The successful 2011 drill results from all three of the known gold deposits north of the Balsas River are expected to extend the known gold mineralization and add significant ounces to the global resource
- The Company expects to have sufficient drilling capacity to complete the planned 2011 drill program on the three known Morelos Gold Project deposits north of the Balsas River by the end of calendar 2011 and expects to resume drilling south of the Balsas River on high potential gold targets during the fourth quarter of calendar 2011
- Upon completion of the drilling by the end of calendar 2011 and the receipt of the related assay results, new mineral resource estimates for the north of the Balsas River deposits are expected to be completed by the end of the first quarter of calendar 2012
- Given the continued positive results of the infill and step out drilling at the deposits north of the Balsas River and the extensive high quality engineering already completed to date, the Company has made the decision to advance directly to a feasibility study, which is expected to be completed by the end of the second quarter of calendar 2012
- The commissioning of the Morelos Gold Project remains on target and is expected to commence prior to the end of calendar 2014
- One-year surface access agreements were successfully renewed with the Rio Balsas, Puente Sur Balsas and Real Del Limon Ejidos and long-term land lease agreements with the Rio Balsas and Real Del Limon Ejidos are under active negotiations
- Work resumed at the Morelos Gold Project following a temporary suspension of on-site activities during the second quarter of fiscal 2011
- Project development work advanced across a number of sectors, including feasibility level engineering, preparations for environmental permitting, and preparations to secure water rights
- Negotiation of road allowances for the east service road and the right to drill exploratory water wells commenced
- The Company hired Alejandro Kakarieka as its new Vice-President of Exploration subsequent to the end of the third quarter
The net loss for the three and nine months ended July 31, 2011 increased to $5.8 million and $19.5 million compared with a loss of $4.1 million for the three months and $11.5 million for the nine months ended July 31, 2010. Exploration and project development expenditures totalled $5.3 million and $16.8 million during the three and nine months ended July 31, 2011 compared to $2.2 million and $3.1 million in the same periods in 2010. This increase was partially offset due to a year-over-year decrease in stock-based compensation and an increase in the provision for future income tax recovery. The Company’s cash position decreased by $16.2 million during the first nine months of fiscal 2011 compared with an increase of $62.0 million in 2010. At July 31, 2011, the Company had $348.9 million in assets including $46.5 million of cash and had a working capital balance of $47.0 million.
A complete set of the Company’s unaudited interim consolidated Financial Statements and related Notes for the three and nine months ended July 31, 2011 and Management’s Discussion and Analysis will be posted on the Company’s website atwww.torexgold.com and will be filed on Sedar at www.sedar.com.
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 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 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.