Torex Reports Record Production of 354,000 Ounces of Gold in 2018 and Provides 2019 Outlook
January 10 2019 - 6:00AM
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is
pleased to announce that 354,000 ounces of gold were produced and
348,000 ounces of gold were sold in 2018, a record year at its ELG
Complex located in southwest Mexico.
Fred Stanford, President & CEO of Torex
stated:
“Achieving a production record at the top end of
production guidance is a credit to the quality of the asset and the
quality of the corporate and site teams who managed through
significant complexity in 2018. Safety and environmental
protection performance were also excellent. In Q4/18 plant
throughput averaged 13k/t so there is some work left to do to get
to the design level of 14kt/d. Sub-Sill produced at above
design rates of 850 t/d in December. 2018 was also an
excellent year on the growth front, with successful
exploration/infill drill programs and with the introduction of the
Muckahi technology. The first Muckahi machine was designed
and built in 2018 and we plan to use it to start breaking rock in
Q1/2019.”
“I offer a special thanks to all the Torex teams
and the other stakeholders that contributed to making 2018 such a
success. We all look forward to continuing the progress in 2019
with production growth, strong safety and environmental protection
performance, exploration/infill success, and field testing of the
Muckahi technology. It is going to be an exciting year!”
Production and Cost Outlook for 2019
(US$)
Gold ounces
sold |
430,000, +/-
7% |
Total cash cost/oz. sold (1) |
$580, +/- 7% |
AISC/oz. sold (1) |
$790, +/- 7% |
Sustaining Capex |
$66 million |
Non-Sustaining Capex |
$36 million |
(1) This is a non-GAAP measure with no
standardized meaning under International Financial Reporting
Standards. Refer to the Company’s MD&A for the third quarter of
2018 for further information and a detailed reconciliation
regarding historical performance measures.
Gold production and cost estimates for
2019
Gold production is expected to be higher in the
second half of 2019 than the first half.
Capex estimate for 2019
Sustaining capital expenditures include
approximately $42 million for capitalized stripping of waste.
Non-sustaining capital expenditures include $18 million for Media
Luna and $8 million for Muckahi development.
The Company’s management’s discussion and
analysis for the third quarter of 2018 is available on SEDAR at
www.sedar.com and the Company’s website at www.torexgold.com.
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 |
|
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 STATEMENTS
This press release contains “forward-looking
statements” and “forward-looking information” within the meaning of
applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, information with
respect to the projected gold production, plant throughput, total
cash cost per ounce of gold sold, AISC per ounce of gold sold and
sustaining and non-sustaining capital expenditures, the expectation
that the processing plant will achieve and sustain full design
capacity, the expectation that the first Muckahi machine will begin
crushing rock in the first quarter of 2019, the expectation that
gold production will be higher in the second half of 2019 compared
to the first half of 2019. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as “budget”, “goal”, “milestone”, “plans”,
“expects”, “estimates”, “possibility”, “depending” or “believes” or
variations of such words and phrases or state that certain actions,
events or results “may”, “could”, “would”, “might”, or “will”,
“occur”, “scheduled”, “predicted” 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, the
risks associated with skarn deposits, risk that plant optimization
activities will not achieve expectations, risks associated with
mine production and gold production, risks associated with cost
estimates and other risk factors identified in the Company’s annual
information form, management’s discussion and analysis and
Technical Report, entitled ““NI 43-101 Technical Report ELG Mine
Complex Life of Mine Plan and Media Luna Preliminary Economic
Assessment”, which has an effective date of March 31, 2018.
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, but which may prove to be
incorrect. Although the Company believes that the assumptions and
expectations reflected in such forward-looking information are
reasonable, undue reliance should not be placed on forward-looking
information because the Company can give no assurance that such
expectations will prove to be correct. 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. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
MUCKAHI
The Muckahi mining system 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.
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