ELG Underground

El Limón Guajes Underground is comprised of the Sub-Sill and El Limón Deep (ELD) deposits. The Sub-Sill deposit has been in operation since Q3 2017 and delivered just under 1,100 tpd of higher-grade ore (relative to grades from the open pits) to the processing facility in 2019. The ELD deposit has been committed to testing the components of the Company’s proprietary Muckahi mining system in 2020. An initial reserve and resource for ELD was announced in 2019. The Company is actively exploring at both Sub-Sill and ELD.

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 – Sub-Sill

Tonnes Au Ag Cu Au Ag
(Mt) (g/t) (g/t) (%) (Moz) (Moz)
Sub-Sill
Proven 0.04 7.48 8.18 0.29 0.01 0.01
Probable 0.62 6.91 11.42 0.61 0.14 0.23
Total Proven & Probable 0.66 6.94 11.23 0.60 0.15 0.24

Notes to accompany mineral reserve table

  1. Mineral reserves are founded on ELG Underground measured and indicated mineral resources with an effective date of December 31, 2018.
  2. The Mineral reserves are based on mechanized cut and fill mining with a diluted cut-off grade of 4.2g/t Au and a diluted incremental cut-off grade of 0.9g/t Au. Operating costs are estimated at USD$120/processed tonne.
  3. The Mineral reserves process plant recoveries range 80.1% to 88.3% for gold and incorporate estimates for mining dilution and mining losses.
  4. Mineral reserves were developed in accordance with CIM Standards (defined below).
  5. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  6. The “qualified person” under NI 43-101 for the mineral reserve estimate is Clifford Lafleur, P.Eng., Ontario, Canada and an employee of the Company.

Mineral Resource Statement as of December 31, 2018 – Sub-Sill

Tonnes Au Ag Au Ag
(Mt) (g/t) (g/t) (Moz) (Moz)
Sub-Sill
Measured 0.06 10.14 10.35 0.02 0.02
Indicated 1.11 6.87 11.74 0.24 0.42
Total Measured & Indicated 1.17 7.04 11.67 0.26 0.44
Inferred 1.28 5.91 6.93 0.24 0.29

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 the Company, 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 the reserve pit of the El Limon deposit and consider mining progress as of December 31, 2018.
  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 above a 2.5 g/t Au cut-off grade. The assumed mining method is from underground.
  8. Mineral resources are reported using a long-term metal prices of US$1380/oz gold and US$21/oz silver.
  9. Metallurgical recoveries are assumed to be 87% for gold and 32% for silver.
  10. Mineral resources are reported as undiluted; grades are contained grades

Mineral Reserve Statement as of April 15, 2019 – El Limón Deep (ELD)

Tonnes Au Ag Au Ag
(Mt) (g/t) (g/t) (Moz) (Moz)
El Limón Deep (ELD)
Proven - - - - -
Probable 0.49 5.50 6.44 0.09 0.10
Total Proven & Probable 0.49 5.50 6.44 0.09 0.10

Notes to accompany mineral reserve table

  1. ELD Underground mineral reserves are based on an indicated mineral resource; mineral reserves have an effective date of April 15, 2019.
  2. The mineral reserves are based on mechanized cut and fill mining with an estimated ore cut-off grade of 3.7 g/t Au and an incremental cut-off grade of 0.9 g/t Au.
  3. Mineral reserves are estimated using a metal price of US$1,200/oz Au.
  4. The mineral reserves process plant recoveries are 87% for gold and incorporate estimates for mining dilution and mining losses.
  5. Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
  6. Mineral Reserves were developed in accordance with CIM Standards (defined below).
  7. The “qualified person” under NI 43-101 for the mineral reserve estimate is Clifford Lafleur, P.Eng. and an employee of the Company.

Mineral Resource Statement as of April 15, 2019 – El Limón Deep (ELD)

Tonnes Au Ag Au Ag
(Mt) (g/t) (g/t) (Moz) (Moz)
El Limón Deep (ELD)
Measured - - - - -
Indicated 0.80 5.52 6.62 0.14 0.17
Total Measured & Indicated 0.80 5.52 6.62 0.14 0.17
Inferred 1.09 5.20 6.95 0.18 0.24

Notes to accompany mineral resource table

  1. The effective date of the estimate is April 15, 2019.
  2. Mineral resources are reported above a 2.5 g/t Au cut-off grade. The assumed mining method is from underground.
  3. Mineral resources are reported using long-term metal prices of US$1,380/oz gold and US$21/oz silver.
  4. Metallurgical recoveries are assumed to be 87% for gold and 32% for silver.
  5. Mineral resources are reported inclusive mineral reserves; mineral resources that are not mineral reserves do not have demonstrated economic viability.
  6. The mineral resources are stated below the mineral reserve pit of the El Limon deposit. Declaration of mineral resources amenable for underground extraction removes 170 kt (10 koz Au), 2,360 kt (190 koz Au), and 420 kt (40 koz Au) from the measured, indicated, and inferred open pit resource as reported December 31, 2018, respectively.
  7. Mineral resources are classified in accordance with the CIM Standards (defined below).
  8. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and contained metal content.
  9. Mineral resources are reported as undiluted; grades are contained grades.
  10. The estimate was prepared by Dr. Lars Weiershäuser, P.Geo., an employee of the Company, who is a “qualified person” under NI 43-101.

“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”.

Additional technical information may be found in the news release dated June 20, 2019, titled “Torex Announces Maiden Mineral Reserves for ELD Underground” available on SEDAR at www.sedar.com and on this website under “News” and updates in the Company’s continuous disclosure documents also available on www.sedar.com and elsewhere on this website.