Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG)
announces the results from the first 32 holes of its infill drill
program targeting the ELD zone, in preparation for a maiden
underground resource estimate. The ELD zone is the downdip
extension of mineralization below the El Limon Open Pit, at the
Morelos Property in Southwest Mexico. Highlights from this
program include
25.0 g/t Au over
8.5m in borehole LDUG-026,
24.9g/t Au over
7.5m in borehole LDUG-013,
16.8g/t
Au over
15.2m in borehole LDUG-021, and
12.5g/t Au over
45.9m in borehole
LDUG-002. The deposit remains open down dip and along strike.
Fred Stanford, President and CEO of Torex
stated: “These initial results illustrate the potential of the
Morelos Property to continue to offer incremental ore sources to
complement the production from the open pits, and potentially from
Media Luna after the pits are mined out. ELD is ‘above the
sill’, whereas Sub-Sill is ‘below the sill’. Both are
accessed from the same underground infrastructure. ELD is
where testing of the Muckahi Mining System will take place,
starting this quarter. Testing in 2019 will include both
tunnel excavation and long hole open stope production mining.
Access to start the testing is in place. The first piece of
Muckahi equipment is in transit to site. Training will start
this month, with the first Muckahi blast anticipated before the end
of the quarter. Step-out drilling at ELD, to test for down
dip mineralization, will continue during the Muckahi testing.
Media Luna infill drilling will also continue throughout the year,
as we upgrade this resource in preparation for further technical
studies. Exciting times at Torex, as we plan to produce more
than 400,000 ounces of Au/year, seek to grow the resources at
Morelos, upgrade the confidence class of underground resources, and
develop innovative ways to reduce the cost and environmental impact
of mining, with methods that could be applicable across the
industry.”
Highlights of drilling results at the ELD: |
Drill-Hole |
Intersection |
CoreLength |
Au |
Ag |
Cu |
Lithology |
|
From
(m) |
To
(m) |
(m) |
g/t |
g/t |
% |
|
LDUG-002 |
12.00 |
57.91 |
45.9 |
12.5 |
10.5 |
0.2 |
Skarn |
Including |
24.17 |
42.19 |
18.0 |
18.3 |
17.2 |
0.3 |
Skarn |
LDUG-004 |
41.18 |
58.72 |
17.5 |
7.5 |
8.7 |
0.2 |
Skarn |
LDUG-005 |
79.13 |
96.01 |
16.9 |
10.1 |
1.2 |
0.0 |
Skarn |
LDUG-010 |
97.48 |
120.17 |
22.7 |
10.1 |
1.7 |
0.0 |
Skarn |
Including |
105.55 |
112.95 |
7.4 |
18.9 |
1.9 |
0.0 |
Skarn |
LDUG-011 |
37.38 |
45.70 |
8.3 |
18.8 |
4.6 |
0.1 |
Skarn |
LDUG-013 |
85.76 |
93.29 |
7.5 |
24.9 |
8.4 |
0.2 |
Skarn |
Including |
88.00 |
92.70 |
4.7 |
34.9 |
10.2 |
0.2 |
Skarn |
LDUG-017 |
70.31 |
80.00 |
9.6 |
15.7 |
6.6 |
0.1 |
Skarn |
LDUG-018 |
102.32 |
107.00 |
4.6 |
23.0 |
27.4 |
1.0 |
Skarn |
LDUG-019 |
77.50 |
88.67 |
11.1 |
12.8 |
2.5 |
0.0 |
Skarn |
LDUG-021 |
94.24 |
109.48 |
15.2 |
16.8 |
35.2 |
0.3 |
Skarn |
Including |
104.68 |
109.48 |
4.8 |
27.5 |
59.8 |
0.3 |
Skarn |
LDUG-025 |
76.07 |
88.53 |
12.4 |
9.3 |
5.2 |
0.1 |
Skarn |
LDUG-026 |
56.23 |
64.69 |
8.4 |
25.0 |
9.2 |
0.2 |
Skarn |
LDUG-029 |
32.00 |
44.27 |
12.2 |
8.2 |
10.2 |
0.3 |
Skarn |
LDUG-031 |
58.11 |
72.88 |
14.7 |
11.1 |
33.7 |
0.9 |
Skarn |
LDUG-032 |
62.17 |
67.20 |
5.0 |
25.6 |
3.0 |
0.1 |
Skarn |
And |
72.30 |
87.00 |
14.7 |
10.8 |
3.5 |
0.1 |
Skarn |
Notes to drilling results table:
- Intersections are not reported as true thickness
- Interval lengths for holes dipping between -45 to -90º have
been selected to represent a minimum mining height of 3.5
metres
- Interval lengths for holes dipping between 0 and -45º have been
selected to represent a minimum horizontal length of 3.5
metres
- Torex is not aware of any drilling, sampling, recovery, or
other factors that could materially affect the accuracy or
reliability of the data.
Please refer to Table 1 for a complete list and
expanded description of the borehole intersections reported in this
press release. Refer to Sections 1-3 for general borehole locations
and cross sections.
This infill exploration drill program consists
of a total of 32 holes (4,818 metres) and is designed to increase
the confidence in the grade and continuity of mineralization in the
central part of the currently known zone. With these new
intersections, Torex expects to create a mineral resource below the
deepest part of the El Limon Pit, which will be tested in an
underground mine planning exercise for conversion to mineral
reserves. Drilling commenced in July 2018 and has confirmed
the prevalence of high-grade mineralization intersected in earlier,
widely spaced holes proving the potential of this zone.
Geology
The ELD zone occurs in the northwest portion of
El Limon deposit, which is part of the large gold bearing skarn
system of El Limon-Guajes, located in the central part of the
Guerrero Gold Belt in Southwest Mexico. The El Limon-Guajes deposit
is hosted 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 of the Cuautla and Morelos formations. El Limon
Deep represents the down-dip extension of the skarn that hosts the
gold mineralization at El Limon open pit, where the skarn is
developed immediately above a large granodiorite sill intruded
along the contact of the Cuautla and the Mezcala formations. El
Limon Deep is located directly below the deepest part of the El
Limon final pit and is above the El Limon “Sill”. It lies
approximately 300m north and at a higher elevation than Sub-Sill
but has the same general orientation in strike and plunge.
The southeast portion of El Limon Deep is
characterized by a single and very continuous skarn package that
strikes approximately 35° to the northeast and dips between 30° and
35° to the northwest. To the northwest, along its downdip
extension, El Limon Deep is characterized by multiple more steeply
dipping (45° to 60°), skarn zones. They are developed along the
contact between the Cuautla and the Mezcala formations, and along
the contacts between marbles of the Morelos formation and multiple
granodiorite sills and resemble the Sub-Sill skarn morphology.
The currently known, best-developed skarn zone
at El Limon Deep is in the central part of the drilled area where
the single flat lying skarn package turns into steeply dipping,
multiple skarn zones. The change in the geometry of the skarn
package is interpreted to be related to northeast striking and
southeast dipping pre, syn-, and post mineral faults, locally
represented by post-mineral dykes (sections 1-3). The initial
infill exploration program has been concentrated in this area and
has confirmed the continuity of the mineralization intersected in
earlier, widely spaced holes, and it proves the continuity of the
high-grade gold mineralization for at least 150 metres along strike
and 150 metres down dip; apparent widths vary from 3.5 metres to 46
metres.
Mineralization remains open along strike
especially to the southwest and downdip to the northwest.
Additional mineral potential is envisaged in the multiple skarn
zones identified at depth. A program of 11,000 metres of Infill and
step-out drilling will be carried out starting in February
2019.
The style of mineralization at El Limon Deep is
similar to the mineralization in the other mineralized zones within
the El Limon Guajes deposit. It is characterized by an abundance of
gold, which is strongly associated with bismuth and variable
amounts of silver and copper. Gold occurs in variably sulfidized,
pyrrhotite-rich skarn, while silver and copper mineralization is
primarily determined by the degree of sulfidation of the host
skarn. Mineralization is associated with retrograde alteration
characterized by amphibole, calcite and quartz, with lessor amounts
of chlorite ± epidote. This alteration affects the pyroxene-garnet
exoskarn and granodiorite-related endoskarn. Locally,
mineralization occurs in narrow lenses of massive
sulfide.
QA/QC and Qualified Person
Torex maintains an industry-standard analytical
QA/QC and data verification program to monitor laboratory
performance and ensure high quality assays. Results from this
program confirm reliability of the assay results. All sampling and
analytical work for the infill exploration program is performed by
SGS de Mexico S.A. de C.V. (“SGS”) in Durango, and
in SGS in Nuevo Balsas, Mexico. Gold analyses comprise fire assays
with atomic absorption or gravimetric finish. External check assays
for QA/QC purposes are performed at ALS Chemex de Mexico S.A. de
C.V.
The analytical QA/QC program is currently
overseen by Carlo Nasi, Chief Mine Geologist for Minera Media Luna,
S.A. de C.V.
The scientific and technical data contained in
this news release pertaining to the ELD exploration program have
been reviewed and approved by Lars Weiershäuser, PhD, PGeo.
Dr. Weiershäuser is a member of the Association of Professional
Geoscientists of Ontario (APGO#1504), has experience relevant to
the style of mineralization under consideration and is an employee
of Torex. Dr. Weiershäuser 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 they appear.
Additional information on the ELD deposit,
sampling and analyses, analytical labs, and methods used for data
verification is available in the Company’s most recent annual
information form and the technical report entitled “Morelos
Property, NI 43-101 Technical Report, ELG Mine Complex, Life of
Mine Plan and Media Luna Preliminary Economic Assessment, Guerrero
State, Mexico” with an effective date of March 31, 2018 (filing
date September 4, 2018) filed on SEDAR at www.sedar.com and the
Company’s website at www.torexgold.com.
About Torex
Torex is an 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. The Company’s principal assets are the El
Limón Guajes mining complex (the “ELG Mine Complex”), comprised of
the El Limón, Guajes and El Limón Sur open pits, the El Limón
Guajes underground mine including zones referred to as Sub-Sill and
El Limón Deep, and the processing plant and related infrastructure,
which is in the commercial production stage as of April 1, 2016,
and the Media Luna deposit, which is an early stage development
project, and for which the Company issued an updated preliminary
economic assessment in September 2018 (the “Technical Report”). The
property remains 75% unexplored.
For further
information, please contact: |
TOREX GOLD RESOURCES
INC. |
|
Fred Stanford |
Gabriela Sanchez |
President and CEO |
Vice President Investor
Relations |
Tel. (647)
260-1502 |
Tel. (647)
260-1503 |
Email:
fred.stanford@torexgold.com |
Email:
gabriela.sanchez@torexgold.com |
|
|
CAUTIONARY NOTES
FORWARD LOOKING STATEMENTSThis 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, without
limitation, information with respect the potential of the Morelos
Property to continue to offer incremental ore sources to complement
the production from the open pits, and potentially from Media Luna
after the pits are mined out, plans to begin testing of the Muckahi
Mining System (“Muckahi”) in the second quarter of 2019 and the
planned scope of the testing program, the planned continuation of
the ELD step out drilling during the testing of Muckahi, plans to
continue the infill drilling at Media Luna, upgrade the confidence
level of the mineral resources and complete additional technical
studies, plans to produce more than 400,000 ounces of Au/year, seek
to grow the resources at the Morelos Property, upgrade the
confidence class of underground resources, and develop innovative
ways to reduce the cost and environmental impact of mining, with
methods that could be applicable across the industry, expectation
that the ELD infill exploration drill program will increase the
confidence level in the grade and continuity of the mineralization
in the central part of the currently known zone and the expectation
the results will enable the Company to estimate a mineral resource
for ELD below the deepest part of the El Limon Pit, plans to
prepare a mine plan based on such mineral resources and the
expectation the results will enable the Company to estimate a
mineral reserve for ELD, plans for an 11,000 metres of Infill and
step-out drilling program to be carried out starting in February
2019, and the expectation that mineralized zones within the within
the El Limon Guajes deposit is characterized by an abundance of
gold. Generally, forward-looking information can be identified by
the use of terminology such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes”, “potential”, “designed”,
“envisaged” or variations of such words, or statements that certain
actions, events or results “may”, “could”, “would”, “might”, “will
be taken”, “occur”, “to continue” or “be achieved”.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information, including, without limitation, risks
related to the risk factors associated with drilling programs, risk
that mineralization or mineral resources, as the case may be, may
not be upgraded to mineral resources or a higher category of
mineral resources or reserves, as the case may be, and those 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
perception of trends, current conditions and expected developments,
and other factors that management believes are relevant and
reasonable in the circumstances at the date such statements are
made. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated. 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. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
MEDIA LUNA PEA AND MUCKAHI
The Media Luna’s preliminary economic assessment
(the “PEA”)(see Technical Report) is preliminary in nature and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. The Media Luna PEA includes information on the Muckahi.
The PEA economics for the Media Luna Project in the Technical
Report are based on conventional mining methods. In addition,
Muckahi, a Torex proprietary mining method, is introduced and
described in the Technical Report. The Technical Report uses the
Media Luna Project as a platform for comparison to demonstrate the
potential benefits that could be possible if the Muckahi method is
proven and ultimately applied to the Media Luna Project, or any
other deposit that does not employ caving methods. It is important
to note that Muckahi is experimental in nature and has not been
tested in an operating mine. Many aspects of the systems are
conceptual, and proof of concept has not been demonstrated.
A PDF accompanying this announcement is
available at:
http://resource.globenewswire.com/Resource/Download/66035446-f8d2-4e66-8f8e-51a109252269
Photos accompanying this announcement are available at:
http://www.globenewswire.com/NewsRoom/AttachmentNg/20e6209a-638c-40f6-9cf1-31ec0c4e6f17
http://www.globenewswire.com/NewsRoom/AttachmentNg/71df93fc-841c-4e2c-84be-e83a76ed9cd6
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