Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces a maiden underground mineral reserve estimate and
resource estimate for the El Limón Deep zone (“ELD”) at its El
Limón Guajes mining complex (“ELG”), located in Southwest Mexico.
The estimates were prepared in accordance with National Instrument
43-101 (“NI 43-101”) and CIM Standards (defined below).
ELD Mineral Reserves and
Resources
- The probable mineral reserve at ELD
contains 86,000 Au ounces in 487,000 tonnes at an average Au grade
of 5.50 g/t, with a cut-off grade of 3.70 g/t.
- The mineral reserve is a subset of
an indicated mineral resource at ELD that contains 141,000 Au
ounces in 797,000 tonnes at an average Au grade of 5.52 g/t, with a
2.5 g/t cut-off grade.
- The conversion rate of indicated
mineral resources (at the reserve cut-off grade) to probable
mineral reserves is estimated at 72% for Au ounces and 86% for
tonnes.
- The mineral resource is the downdip
extension of mineralization in the El Limón open pit. It is
located approximately 400 meters north-northwest of the Sub-Sill
deposit and is open in three directions.
Fred Stanford, President and CEO of Torex,
stated:
“This addition of the ELD mineral reserves,
while small in comparison to the open pit mineral reserves,
provides a nice sweetener to the open pit production. It is
also indicative of the potential to add further underground mineral
resources. With ELD open in three directions, the Sub-Sill
underground deposit still open at depth, and the potential for down
dip extensions of Guajes, we are upbeat about the potential to
further expand underground reserves and resources through multiple
sources.
“The mineral reserves for the ELD deposit have
been estimated using conventional mining techniques and
costs. The intention is to mine the deposit with the Muckahi
mining system. If as expected, the costs associated with
Muckahi mining are lower than conventional mining costs, we may be
able to lower the cut-off grade and increase the size of the
mineral reserve. Excavation of the 30-degree down ramp to
access the lower parts of the ELD deposit is underway, with 4
rounds taken. In the upper portions of the deposit, the
excavations are nearly completed for the initial long hole stopes
that will be mined utilizing the production aspects of the Muckahi
system. To date the Muckahi system has performed as expected,
we are all eager to progress through the next stages of the testing
program, and if proven, then move forward with the strategic
options it has the potential to unlock.”
Mineral Reserve Statement, ELD
Underground, April 2019
Reserve Category |
Tonnes(kt) |
Au Grade(g/t) |
Ag Grade(g/t) |
Contained Au(koz) |
Contained Ag(koz) |
Proven |
- |
- |
- |
- |
- |
Probable |
487 |
5.50 |
6.44 |
86 |
101 |
Proven & Probable |
487 |
5.50 |
6.44 |
86 |
101 |
Notes to accompany ELD Zone Underground Mineral Reserve Table:
- ELD Underground mineral reserves are based on an indicated
mineral resource; mineral reserves have an effective date of April
15, 2019.
- 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.
- Mineral reserves are estimated using a metal price of
US$1,200/oz Au.
- The mineral reserves process plant recoveries are 87% for gold
and incorporate estimates for mining dilution and mining
losses.
- Rounding may result in apparent summation differences between
tonnes, grade, and contained metal content.
- Mineral Reserves were developed in accordance with CIM
Standards.
- The qualified person for the mineral reserve estimate is
Clifford Lafleur, Professional Engineer of Ontario, Canada and a
Torex employee.
|
The underground ELD mineral reserves are based
on a three-dimensional mine design assuming conventional overhand
mechanized cut and fill (“cut and fill”) mining method. The mine
was designed and scheduled in Deswik® software suite, a
commercially-available mine planning software package. The mine
plan physicals were estimated by interrogating the
three-dimensional mine designs against the resource block model to
which factors for dilution and mining losses have been applied. The
delineation of reserves for ELD has not impacted reserves from
within the El Limón open pit.
ELD will be accessed through the existing
underground development and will utilize the existing site
infrastructure. This infrastructure includes, but is not limited
to, electrical facilities, maintenance facilities, main ventilation
exhaust fans and the backfill plant. Depending on material
availability and geotechnical requirements, all mining areas at the
ELD will be backfilled with either cemented aggregate fill or
uncemented rockfill.
The mine plan is expected to deliver 487,000
tonnes and 86,000 ounces to the ELG processing facility at an
average grade of 5.50 g/t Au. ELD is expected to supplement
existing ELG underground mine production. The crown pillar below
the El Limón open pit will be mined and backfilled well in advance
of surface operations.
Maximum mining rates in the plan are estimated
at 800 tonnes per day. Mining costs are estimated to be
US$85.6/tonne plant feed, based on conventional mining methods.
Total capital requirements are estimated to be US$13.5 million, of
which US$10.5 million is allocated for lateral and vertical
development.
Mineral Resource Statement for ELD
Underground
Resource Class |
Tonnes(kt) |
Au Grade(g/t) |
Ag Grade(g/t) |
Contained Au(koz) |
Contained Ag(koz) |
Measured |
- |
- |
- |
- |
- |
Indicated |
797 |
5.52 |
6.62 |
141 |
170 |
Measured & Indicated |
797 |
5.52 |
6.62 |
141 |
170 |
Inferred |
1,090 |
5.20 |
6.95 |
182 |
243 |
Notes to accompany ELD Zone Underground Mineral Resource Table:
- The effective date of the estimate is April 15, 2019.
- Mineral resources are reported above a 2.5 g/t Au cut-off
grade. The assumed mining method is from underground.
- Mineral resources are reported using long-term metal prices of
US$1,380/oz gold and US$21/oz silver.
- Metallurgical recoveries are assumed to be 87% for gold and 32%
for silver.
- Mineral resources are reported inclusive mineral reserves;
mineral resources that are not mineral reserves do not have
demonstrated economic viability.
- 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.
- Mineral resources are classified in accordance with the CIM
Standards.
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and contained
metal content.
- Mineral resources are reported as undiluted; grades are
contained grades.
- The estimate was prepared by Dr. Lars Weiershäuser, P.Geo., an
employee of the Company, who is a “Qualified Person” under NI
43-101.
|
ELD GeologyThe ELD zone occurs
in the northwest portion of El Limón deposit, which is part of the
large gold bearing skarn system of ELG, located in the central part
of the Guerrero Gold Belt in Southwest Mexico. The ELG deposit is
hosted in Mesozoic-age rocks of the Morelos Platform, which have
been intruded by Paleocene granodiorite stocks, sills, and dikes.
Skarn-hosted gold mineralization is developed along the contacts of
the intrusive rocks with carbonate-rich sedimentary host rocks of
the Cuautla and Morelos formations. ELD represents the down-dip
extension of the gold mineralization targeted in the El Limón open
pit and is located directly below the deepest part of the El Limón
final pit.
The style of mineralization at ELD is similar to
the mineralization in the other mineralized zones within the ELG
deposit. It is characterized by a strong association 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.
Mineralization of the ELD zone is juxtaposed on
either side of the Flaca fault, a major structure that strikes
north-easterly and transects the El Limón deposit. The fault
separates mineralization with a shallow, approximately 30° dip in
the southeast of the fault from steeply dipping mineralization
northwest of the fault.
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. Additional step-out drilling is ongoing,
and additional results will be incorporated into future resource
updates.
For a cross section of ELD refer to Figure
1.
Mineral Resource Estimate
MethodologyThe mineral resource is informed by drilling
(surface and underground) that include assays received up to March
31, 2019. Of the approximately 2,120 holes (281,300m)
completed on the ELG project between 2000 and 2019; a total of 209
holes (52,441m) is located in the ELD mineral resource area and was
considered for estimation. Assays were composited into 2-metre
lengths within lithological grade domains for estimation into
2-metre cubic blocks. Leapfrog Edge, a commercially-available
geologic and block modelling software package, was used to produce
a three-dimensional block model. Specific gravity was assigned by
rock type and gold grade. Block grades were estimated in three
estimation passes with increasingly relaxed search parameters using
ordinary kriging and hard boundaries for gold, silver, and copper.
Treatment of high-grade gold samples include capping and further
restriction of grades beyond a narrow search ellipsoid.
Silver and copper assays were not capped. Mineral resources
consider geologic, mining, and processing constraints. Mineral
resources are classified in accordance with 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 (collectively, the “CIM Standards”).
The mineral resources for ELD are stated below
the mineral reserve pit of the El Limón deposit and overlap the
mineral resources amenable for open pit extraction and disclosed
publicly in the annual information form for the year ended December
31, 2018 and dated March 29, 2019. Reporting of mineral resources
amenable for underground extraction removes approximately 170 kt
(10 koz Au), 2,360 kt (190 koz Au), and 420 kt (40 koz Au) from
open pit resources (reported at a 0.7 g/t gold cut-off grade) in
the measured, indicated, and inferred categories, respectively.
QA/QC and Qualified
PersonsTorex maintains an industry-standard analytical
QA/QC and data verification program to monitor laboratory
performance and to ensure high quality assay results. 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, including the information pertaining to the ELD
exploration program and the mineral resource estimates, have been
reviewed and approved by Lars Weiershäuser, PhD, PGeo. Dr.
Weiershäuser is a “Qualified Person” as defined by NI 43-101, and
he 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.
The scientific and technical data contained in
this news release pertaining to the ELD mineral reserves has been
reviewed and approved by Mr. Clifford Lafleur, P.Eng who is a
Qualified Person as defined by NI 43-101 and an employee of the
Company. Mr. Lafleur is a registered member of the Professional
Engineers of Ontario, has worked the majority of his career in
underground hard rock mining in Canada and Mexico in progressively
senior engineering roles with relevant experience in mine design
and planning, mining economic viability assessments and mining
studies.
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) (the “Technical Report”) filed on SEDAR at
www.sedar.com and the Company’s website at www.torexgold.com.
About Torex Gold Resources
Inc.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 property remains 75%
unexplored. For further information, please contact:
TOREX GOLD RESOURCES INC. |
|
Fred Stanford President and CEO Direct: (647) 260-1502
Email: fred.stanford@torexgold.com |
Dan Rollins Vice President, Corporate Development & Investor
Relations Direct: (647) 260-1503 Email:
dan.rollins@torexgold.com |
CAUTIONARY NOTES
Muckahi Mining System The
Technical Report includes information on Muckahi. It is
important to note that Muckahi is experimental in nature and has
not been tested in an operating mine. Many aspects of the
system are conceptual, and proof of concept has not been
demonstrated. Drill and blast fundamentals, standards and
best practices for underground hard rock mining are applied in the
Muckahi, where applicable. The proposed application of a monorail
system for underground transportation for mine development and
production mining is unique to underground hard rock mining. There
are existing underground hard rock mines that use a monorail system
for transportation of materials and equipment, however not in the
capacity described in the Technical Report. Aspects of
Muckahi mining equipment are currently in the design and test
stage. The mine design, equipment performance and cost estimations
are conceptual in nature, and do not demonstrate technical or
economic viability. The Company expects to complete the development
and test the concept by the end of 2019 for the mine development
and production activities. Further studies would be required
to verify the viability of Muckahi.
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 of its operations including
without limitation, delays caused by blockades limiting access to
the ELG Mine Complex and the Media Luna Project or by blockades or
trespassers impacting the Company’s ability to operate.
Forward-looking information also includes, but is not limited to,
expectation that the ELD is open in three directions and Sub-Sill
remains open at depth, the potential for downdip extensions of
Guajes, the potential to add further underground resources, plans
to further examine the potential of the new mining technology
(Muckahi), the intention to mine the ELD using Muckahi, if
demonstrated that costs associated with Muckahi are lower than
conventional mining, the possibility of lowering the cut-off grade
to increase reserves, if proven, the potential to move forward with
strategic options that Muckahi has the potential to unlock,
expectation that additional step-out drilling will be completed
which will result in future mineral resource updates, the expected
access to ELD through the existing underground development and the
use of the existing site infrastructure, the expected tonnes, grade
and gold ounces to be delivered to the processing plant from ELD,
and the expected mining rate, mining costs and capital
requirements. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects", "estimates", "intends", "anticipates",
"believes" or “potential” 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,
uncertainty involving resource and reserve estimates and the
ability to extract those resources and reserves economically, or at
all, risks associated with skarn deposits, predictability of the
grade, ability to achieve design gold recovery levels, the success
of the Muckahi mining system, the ability to fund the development
and testing of Muckahi, and those risk factors identified in the
Technical Report and the Company’s annual information form and
management’s discussion and analysis. Forward-looking information
are based on the assumptions discussed in the Technical Report and
such other 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
the 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, whether as a
result of new information or future events or otherwise, except as
may be required by applicable securities laws.
Figure 1 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/5d4f1aab-966c-41af-a4cc-2692579fe8bb
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