ELG Open Pits

El Limón Guajes Open Pit operations are comprised of the El Limón, Guajes, and El Limón Sur deposits. The open pits contained 2.33 million ounces of gold in reserves at the end of 2018 at an average gold grade of 2.92 g/t. Lower grade ore is being stockpiled and will be processed once active mining in the open pits has ceased, likely sometime in mid-2023 based on current mining rates and reserves.

For a summary of the mining activities in 2019, see Table 3 in the Company’s Q4 2019 management’s discussion and analysis dated February 18, 2020 (“Q4 2019 MD&A”).

Mineral Reserve Statement as of December 31, 2018 – El Limón and Guajes Open Pits

Tonnes Au Ag Au Ag
(Mt) (g/t) (g/t) (Moz) (Moz)
El Limón (including El Limón Sur)
Proven 3.80 3.48 4.20 0.43 0.51
Probable 11.24 3.05 3.69 1.10 1.33
Sub Total Proven & Probable 15.04 3.16 3.82 1.53 1.85
Guajes
Proven 1.45 2.57 1.76 0.12 0.08
Probable 6.16 3.06 2.77 0.61 0.55
Sub Total Proven & Probable 7.61 2.96 2.58 0.73 0.63
Mined Stockpiles
Proven 0.83 1.41 6.47 0.04 0.17
El Limon Guajes Low Grade
Proven 0.29 1.02 1.91 0.01 0.02
Probable 1.04 1.01 1.87 0.03 0.06
Sub Total Proven & Probable 1.34 1.01 1.88 0.04 0.08
Total El Limón and Guajes
Proven 6.38 2.89 3.84 0.59 0.79
Probable 18.44 2.94 3.28 1.74 1.95
Total Proven & Probable 24.82 2.92 3.42 2.33 2.73

Notes to accompany mineral reserve table

  1. Mineral reserves are founded on Guajes, El Limón and El Limón Sur measured and indicated mineral resources with an effective date of December 31, 2018.
  2. Mineral reserves are reported based on open pit mining within designed pits and incorporate estimates of 15% dilution and 5% mining losses.
  3. El Limón, El Limón Sur and Guajes mineral reserves are reported above diluted cut-off grades of 1.1 g/t Au. The cut-off grades and pit designs are considered appropriate for metal prices of US$1200/oz and US$17/oz silver, and estimated mining, processing, and G&A unit costs during pit operation.
  4. ELG Low Grade mineral reserves are reported above a diluted cut-off grade of 0.9 g/t Au and below the higher cut-off grades identified in Note 3. It is planned that ELG Low Grade mineral reserves within the designed pits will be stockpiled during pit operation and processed during pit closure. The Low-Grade cut-off is considered appropriate for metal prices of US$1200/Oz and US$17/oz silver, and estimated ore re-handle, processing, and G&A unit costs during pit closure.
  5. Mineral reserves were developed in accordance with CIM Standards (defined below).
  6. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  7. The “qualified person” under NI 43-101 for the mineral reserve estimate is Dawson Proudfoot, P.Eng. Mr. Proudfoot was the Vice President of Engineering of the Company at the effective date of the reserve estimate.

Mineral Resource Statement as of December 31, 2018 – El Limón and Guajes Open Pits 

Tonnes Au Ag Au Ag
(Mt) (g/t) (g/t) (Moz) (Moz)
El Limón (including El Limón Sur)
Measured 4.80 3.29 4.68 0.51 0.72
Indicated 20.20 2.67 4.29 1.73 2.79
Sub Total Measured & Indicated 25.00 2.79 4.37 2.24 3.51
Inferred 3.07 1.94 4.94 0.19 0.49
Guajes
Measured 1.97 2.41 2.09 0.15 0.13
Indicated 8.81 2.81 2.79 0.80 0.79
Sub Total Measured & Indicated 10.78 2.73 2.66 0.95 0.92
Inferred 0.45 1.50 2.58 0.02 0.04
Total El Limón and Guajes
Measured 6.77 3.04 3.93 0.66 0.85
Indicated 29.01 2.71 3.84 2.53 3.58
Total Measured & Indicated 35.78 2.77 3.85 3.19 4.43
Inferred 3.52 1.89 4.64 0.21 0.52

Notes to accompany mineral resource table

  1. The effective date of the estimate is December 31, 2018.
  2. The estimate was prepared by Dr. Lars Weiershäuser, P.Geo, an employee of Torex Gold Resources Inc., who is a “qualified person” under NI 43-101.
  3. Mineral resources are reported inclusive mineral reserves; mineral resources that are not mineral reserves have not demonstrated economic viability.
  4. Mineral resources have been reported below a topography with mining progress as of December 31, 2018. Stockpiled material is not considered in the mineral resource tabulation.
  5. Mineral Resources are classified in accordance with the CIM Standards (defined below).
  6. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and contained metal content.
  7. Mineral resources are reported at a cut-off grade of 0.7 g/t gold and are constraint within a conceptual open pit shell.
  8. Mineral resources are reported using a long-term metal prices of US$1380/oz gold and US$21/oz silver.
  9. The assumed mining costs are US$2.18/tonne, processing costs US$19.09/tonne, general and administrative costs of US$8.80/tonne processed.
  10. Metallurgical recoveries are assumed to be 87% for gold and 32% for silver. Assumed pit slopes range from 3 to 49 degrees.

“CIM Standards” means the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves and the 2003 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

The Company’s Q4 2019 MD&A is available on SEDAR at www.sedar.com and on this website under “Investors – Financial Statements”.