Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces Q1 2020 gold production of 108,530 ounces. Gold sold
during the quarter was 108,060 ounces at an average realized
gold price of $1,570 per ounce.
Q1 2020 Operational
Highlights:
- Gold production of
108,530 ounces
- Plant throughput
averaged 12,460 tpd
- Underground ore
mined averaged 1,110 tpd
- Open pit ore mined
averaged 19,080 tpd
- Open pit strip
ratio of 6.8:1
After reconciliations have been completed, gold
grades mined, gold grades processed, and gold recoveries will be
reported with the Q1 2020 financial results, which are set to be
released prior to market open on Wednesday, May 6, 2020.
Fred Stanford, President and CEO of Torex,
stated:
“This has been a good quarter for production and
an excellent quarter for safety. Health protection measures put in
place appear to have been effective, with no suspected or confirmed
cases of COVID-19 at site. Prior to the recent COVID-19 related
suspension of operations, we were on track to achieve 2020
production guidance of 420,000 to 480,000 ounces of gold. The
temporary suspension of operations is unfortunate but necessary as
we all do our part to contain this virus. We are preparing for the
restart of operations under various scenarios, including a scenario
where social distancing requirements enable only a partial restart.
Whatever the requirements, our team will be prepared to resume
operations in a productive and safe manner.
“During this period, we continue to advance
Media Luna, with design and engineering work for the feasibility
study ongoing and permitting work continuing. Excavation of the
Media Luna tunnel is scheduled to start this summer, with portal
design and tunnel plans advancing as scheduled. The infill drill
program at Media Luna has also been impacted by the suspension of
operations. As a result, the feasibility study could be delayed a
quarter, which will not affect the schedule of the Media Luna
Project.”
Jody Kuzenko, COO of Torex, added:
“I am both impressed and appreciative of the
continued focus, hard work, and dedication of our employees and
contractors during this unusual time. The culture of operational
discipline around safety we are building is taking hold, with
incident reporting up and the number of injuries remaining low. We
had zero lost time injuries during the quarter and exited March
with a LTIF of 0.31 per million hours worked, an impressive feat
that all within the organization can be proud of.
“Throughput during the quarter was impacted by
the additional 88-hour maintenance shutdown we took in January to
address alignment concerns in the SAG mill drive train. Since this
work was completed, vibration and temperature measurements have
been well within design tolerances. Throughput subsequently
improved, with plant availability coming in at 90% for the quarter.
Relative to prior quarters, grade was lighter as we worked through
some pockets of lower grade ore in the El Limón pit.
“Testing of oxidation is proving to be
successful. The addition of oxygen in the leach circuit has led to
a reduction of cyanide consumption of approximately 25% relative to
consumption levels without oxidation. Recoveries are also trending
higher at +2% above design levels. We all look forward to the
resumption of production and further advancing continuous
improvement initiatives across the business.”
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 kilometres
southwest of Mexico City. The Company’s principal assets are the El
Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”),
comprising the El Limón, Guajes and El Limón Sur open pits, the El
Limón Guajes underground mine including zones referred to as
Sub-Sill and ELD, and the processing plant and related
infrastructure, which commenced commercial production 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 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
Forward Looking StatementsThis
press release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information also
includes, but is not limited to, statements that: health protection
measures put in place appear to have been effective; prior to the
recent COVID-19 related suspension of operations, the Company was
on track to achieve 2020 production guidance of 420,000 to 480,000
ounces of gold; the Company is preparing for the restart of
operations under various scenarios, including a scenario where
social distancing requirements enable only a partial restart;
whatever the requirements, the Company will be prepared to resume
operations in a productive and safe manner; during this period, the
Company continues to advance Media Luna, with design and
engineering work for the feasibility study ongoing and permitting
work continuing; excavation of the Media Luna tunnel is scheduled
to start this summer, with portal design and tunnel plans advancing
as scheduled; as a result of the in-fill drill program at Media
Luna being impacted by the suspension of operations, the
feasibility study could be delayed a quarter, which will not affect
the schedule of the Media Luna Project; the continued focus, hard
work and dedication of the Company’s employees and contractors
during this unusual time; the culture of operational discipline
around safety the Company is building is taking hold, with incident
reporting up and the number of injuries remaining low; testing of
oxidation is proving to be successful; recoveries are trending
higher at +2% above design levels; and the Company looks forward to
the resumption of production and further advancing continuous
improvement initiatives across the business. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", "believes",
“future”, “strive” or variations of such words and phrases or state
that certain actions, events or results “can”, "may", "could",
"would", "might", "be achieved", “appears” or “focus on”.
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, the
inability of the Company’s mining and exploration operations to
operate as intended due to shortage of skilled employees, shortages
in supply chains, inability of employees to access sufficient
healthcare, significant social upheavals, government or regulatory
actions or inactions, decreased demand or the inability to sell
precious metals or declines in the price of precious metals,
capital market volatility, or other unknown but potentially
significant impacts, and uncertainty involving skarns deposits and
the management of soluble iron and those risk factors identified in
the Technical Report and the Company’s annual information form and
management’s discussion and analysis. Notwithstanding the Company's
efforts, there can be no guarantee that the Company does not have
employees who have the COVID-19 infection or that the Company’s
measures to protect employees and surrounding communities from
COVID-19 during this period will be effective. 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.
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