The Morelos Gold Property, is an area of 29,000 hectares in the highly prospective Guerrero Gold Belt, located 180 kilometres southwest of Mexico City, in the state of Guerrero. The Property is only a four hour drive from Mexico City on paved roads. It is easily accessible and located near established centres of supply for materials and workers. Power for mining operations is available from a 115kV line that crosses over the Property and water for process and exploration is sourced from nearby wells.
Within this Property, the El Limon-Guajes Mine (ELG)t, located north of the Balsas River, constitutes one of the richest open pit gold deposits at a resource grade of 2.65 g/t. The ELG Mine started gold production in December of 2015 and announced commercial production on March 30, 2016. Once in full production, this mine will be amongst the largest and lowest cost gold mines in the world with expected LOM average annual production of 370,000 ounces of gold at a LOM AISC of US$616/oz. This skarn deposit has measured and indicated resources of 4.12 million ounces of gold at a grade of 2.65 g/t plus 360,000 ounces of gold at a grade of 1.86 g/t in the inferred category. Proven and Probable Reserves, included in the resources, stand at 3.63 million ounces of gold at a grade of 2.62g/t.
The Media Luna deposit, hosted in a magnetic anomaly south of the Balsas River, was discovered in March of 2012 and has current inferred resources of 7.4 million gold equivalent ounces at a grade of 4.48 g/t. This resource is contained in less than 30% of the area of the targeted magnetic anomalies. The conceptual design contained in a positive PEA announced in July of 2015 envisions an underground operation with expected average annual production of 313,000 ounces of gold equivalent at an average AISC of US$636/oz.
Additional technical information is contained in the technical report entitled “Morelos Gold Property, NI 43-101 Technical Report, El Limón Guajes Mine Plan and Media Luna Preliminary Economic Assessment, Guerrero State, Mexico” dated effective August 17, 2015, and filed on September 3, 2015 (the “Technical Report”). The technical information contained in this presentation is based upon the information contained in the Technical Report which is available on SEDAR as www.sedar.com and the Company’s website at www.torexgold.com.