TORONTO, Ontario, May 16, 2011 - Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased to report that it has resumed its exploration activities at the Morelos Gold Project in Mexico and has commenced the return of its employees and contractors to the project.. The process has and will unfold in stages. The first stage, which is well underway, is to implement public and private security arrangements for the north of the Balsas River activities. The next stage is the return of support and technical personnel which began today. This will be followed by the return of the drilling contractors which is expected to begin in early June, 2011. As routines are established and conditions normalized, the final stage of the process will be to extend the security coverage to the exploration activities south of the Balsas River.
In an effort to restore the project schedule, talks are underway to increase the number of diamond drills employed at site. Once the daily productivity of the diamond drill fleet has been stabilized at a predictable level, it will be possible to forecast the impact on the project schedule, if any.
The Company is also pleased to announce that it has initiated negotiations with the Rio Balsas Ejido to finalize and execute long term land tenure agreements.. The first negotiation session was held on May 15th, 2011. This negotiation will also manage the extension of the current land access agreement with the Rio Balsas Ejido.
Fred Stanford, President and CEO of Torex stated, “We are pleased to confirm that we are resuming our activities at the Morelos Gold Project and expect to be at or near our previous level of activities in the very near future. We have received tremendous support from local, state and federal authorities which have provided a permanent security presence to help ensure the safety and security of all employees, contractors and assets at the Morelos site. While the support from all levels of government has been excellent and appreciated, the support from the Government of the State of Guerrero deserves a special mention. The government changed hands on April 1, 2011 and the newly elected state government managed to assist us through the midst of their transition responsibilities.”
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:
Fred Stanford, President and CEO, Tel. (647) 260-1502, Email: email@example.com
Gabriela Sanchez, Vice President Investor Relations, Tel. (647) 260-1503, Email: firstname.lastname@example.org
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 surface exploration and other activities including, without limitation, the timing of the implementation of security arrangements, the return of support and technical personnel, the return of drilling contractors, and the normalization of routines and conditions, and the timing and success of negotiations with ejidos. 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.