Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces 2019 gold production of 454,810 ounces following Q4 2019
production of 125,150 ounces. The full year result established a
new annual production record at El Limón Guajes, surpassing the
prior record established in 2018 by 28%.
During 2019, the Company sold 449,330 ounces of
gold at an average realized price of over $1,405 per ounce. For Q4
2019, gold sales totaled 126,910 ounces at an average realized
price of $1,480 per ounce.
The strong close places annual output within the
upper end of the 2019 guidance range of 400,000 to 460,000 gold
ounces sold.
Q4 2019 Operational
Highlights:
- Gold production of 125,150 ounces
- Plant throughput averaged 12,120 tpd
- Underground ore mined averaged 1,060 tpd
- Open pit ore mined averaged 16,030 tpd
- Open pit strip ratio of 7.3:1
After reconciliations have been completed, gold
grades mined, gold grades processed, and gold recoveries will be
reported with the Q4 2019 financial results.
Fred Stanford, President and CEO of Torex,
stated:
“We delivered a solid result to close out 2019
with El Limón Guajes delivering the second highest quarter of
production on record. The operational performance allowed us to
achieve record annual gold production of over 450,000 ounces,
placing us towards the upper end of the guided range. The entire
team is proud of the operational and financial performance
delivered in 2019.
“We look forward to another solid year in 2020
as we seek to replicate a similar production result, advance Media
Luna towards construction, prove up the potential of Muckahi,
extend higher grade mineralization at Sub-Sill and ELD, and
continue to strengthen the balance sheet.”
Jody Kuzenko, COO of Torex, added:
“I am extremely pleased with the way our
operations team performed throughout the year. We overcame several
challenges at the start of the year, rebounding quickly to deliver
the highest three quarters of production to date out of El Limón
Guajes. The production performance was matched by an equally
impressive safety performance.
“While achieving steady-state throughput of
13,000 tpd in the processing plant remains front and center, we are
also focused on reducing reagent consumption associated with
soluble iron and on containing costs across the entire business. We
have the right team in place and excellent momentum as we head into
2020.”
Additionally, the Company notes that current
income and mining taxes in respect of 2019 will be paid in Q1 2020
and will result in an operating cash outflow in that quarter.
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
Muckahi Mining SystemThe
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 has completed the development and the first
phase of testing the concept for the mine development and
production activities and will move to optimization in 2020 to
further 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,
statements that the Company is looking forward to another solid
year in 2020, will seek to replicate a similar production result,
advance Media Luna towards construction, prove up the potential of
Muckahi, extend higher grade mineralization at Sub-Sill and ELD,
and continue to strengthen the balance sheet; the Company’s focus
on reducing reagent consumption associated with soluble iron and on
containing costs across the entire business; and the expectation
that the current income and mining taxes in respect of 2019 will be
paid in Q1 2020 and will result in an operating cash outflow in
that quarter. 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, 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.
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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