TORONTO, Ontario, June 19, 2017 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased to announce high grade intercepts for the first 25 holes of its infill drilling program at the Sub-Sill deposit, associated with its El Limon-Guajes Mine (ELG) in Southwest Mexico. Highlighted intercepts from this program include 39.1 g/t Au over 9.7m, including 114.1 g/t Au over 2.9m, in borehole SST-49; 107.3 g/t Au over 3.1m in borehole SST-50; 32.1 g/t Au over 13.0m, including 68.9 g/t Au over 4.0m in borehole SST-54; and 27.3 g/t Au over 14.8m, including 62.1 g/t Au over 4.9m in borehole SST-47.
Fred Stanford, President & CEO of Torex stated: “The purpose of this infill diamond drill program is to upgrade a million tonnes of Inferred Sub-Sill resource to the Measured and Indicated categories, to facilitate mine planning and the determination of a maiden mineral reserve. Of the 50 planned infill diamond drill holes, 41 have been completed to date, and assays have been received for 25 of those holes. To date, the ‘hit ratio’ has been 96%, with 24 holes intercepting high grade gold mineralization. This exceptional demonstration of the continuity of the gold mineralization has held true across the current resource area, including at the periphery. This bodes well for the mine planning efforts and indicates the potential for resource expansion with step-out drilling. The timing is excellent as the access ramp is now through the sill and progressed 40 meters into the less prospective endoskarn, and is less than 10 meters from intersecting the highly prospective exoskarn.” He added, - “The step-out diamond drill program is getting underway as the infill program is completed. The step-out program comprises approximately 7,500 meters in 31 holes that test the area adjacent to the current resource and then out to the periphery of the prospective area for Sub-Sill expansion. This drill program is expected to be completed through the second half of the year and we look forward to sharing those results.”
Highlights from the infill drilling at the El Limon Sub-Sill
|BH ID||Interval (m)||Interval
|Au (g/t)||Ag (g/t)||Cu (%)||Lithology|
True thickness of the mineralized zone is unknown and is reported as drill hole length
Please refer to Table 1 for a complete list and expanded description of the borehole intercepts reported in this press release. Refer to Figure 1 for general borehole location.
The Company’s Sub-Sill in-fill diamond drilling program comprises a total of 50 holes (7455m). The purpose of the program, at a 17.5m x 17.5m drill pattern, is to upgrade 1,000,000 tonnes, over an area of 250m x 150m, to the Indicated category, which will support the development of a mine plan. The positive results to date confirm the geological continuity of the skarn zones as well as the continuity and the strength of the mineralization system. The drilling program also demonstrates the existence and continuity of other mantos underneath the main ore zone explored that were not included in the resource estimate due to the insufficient drilling at the time.
The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The El Limon Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks. Structurally, the El Limon Sill target area as well as El Limon and El Limon Sur ore deposits are hosted in a graben bounded by La Flaca fault to the west and the Antena fault to the east, and both are considered to be potential feeders for the mineralization. At the El Limon Sill area, several skarn zones have been identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from the main granodiorite stock. High grade gold mineralization have been intercepted in all the different skarn horizons. Within the skarn zones individual ore shoots vary in strike length from approximately 50 meters up to 200 meters, with apparent widths varying from 2 meters to 27 meters.
Mineralization at the El Limon Sill area is primarily gold, associated with variable contents of silver and copper. Gold occurs in low and high sulfidized pyrrhotite rich skarns, while silver and copper mineralization is primarily determined by the degree of sulfidation of the host skarn. Mineralization is strongly associated with a late stage retrograde alteration characterized by amphiboles, chlorite, calcite ± quartz ± epidote, affecting pyroxene-garnet marble related exoskarn and granodiorite porphyry related endoskarn. Locally mineralization occurs in narrow lenses of massive sulfides.
QA/QC and Qualified Person
At the Morelos Gold Project, all of the El Limon Sill target analytical work is performed by SGS de Mexico S.A. de C.V. (“SGS”) in Durango, Mexico and at SGS Mineral Services in Vancouver, British Columbia, Canada and ALS Chemex de Mexico S.A. de C.V.
Sample preparation is done at SGS sample preparation laboratory in Durango, Mexico. The gold analyses (fire assay with an atomic absorption or gravimetric finish) are completed at SGS analytical laboratory in Durango, Mexico and multi-element geochemical analyses are Copper Sequential Leaching are completed at their analytical facilities in Vancouver, British Columbia, Canada. Check assays samples are analyzed at ALS Chemex Vancouver, BC, Canada. SGS and ALS Chemex are independent of the Company.
The Company has a Quality Assurance/Quality Control (“QA/QC”) program in place that includes 5% of each of the certified reference materials, blanks and field duplicates. 10% of pulp samples are analyzed at a second laboratory as part of the QA/QC program to ensure the batch to batch relative bias remains constant and that absolute accuracy at anomalous to near cut-off grades is measured and acceptable. The QA/QC program as designed has been approved by Bureau Veritas and is currently overseen by Carlo Nasi, Chief Mine Geologist for the Morelos Gold Project.
The scientific and technical data contained in this news release pertaining to the Morelos Project has been reviewed and approved by Mr. Mark P. Hertel as a Qualified Person under NI 43-101. Mr. Hertel is a Registered Member of the Society for Mining, Metallurgy & Exploration, has experience relevant to the style of mineralization under consideration and is an independent consultant. Mr. Hertel has verified 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 it appears.
Additional information on the El Limon deposit, the mineral resource estimate for the Sub-Sill deposit and analytical labs is available in the Company’s most recent annual information form filed on SEDAR at www.sedar.com and the Company’s website at www.torexgold.com.
Torex is an emerging 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. Within this property, Torex has the El Limón Guajes Mine, which announced commercial production in March of 2016 and the Media Luna Project, which is in an advanced stage of exploration, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% 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. Notwithstanding the Company’s efforts, there can be no guarantee that the Company will not face unforeseen delays or disruptions. Forward-looking information includes, but is not limited to, information with respect to the drill program for the El Limon Sub-Sill area and the results of the drill program contained herein, including the continuity of the high grade gold mineralization, the expectation of upgrading the El Lion Sub-Sill mineral resource, plans for mine planning, determining a mineral reserve and an additional step out drilling program, the potential for expanding the Sub-Sill resource area, future exploration and development plans of the Company, completion of the ramp access to the targets as described herein, and the potential for mining the El Limon Sub-Sill area. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “indicates”, “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 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 risk associated with the variability of skarn deposits, the risk that actual results of current exploration and development activities will not achieve expectations and other risk factors identified in the Company’s annual information form and management’s discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. 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. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.