TOREX GOLD ANNOUNCES TEMPORARY SUSPENSION OF OPERATIONS AT EL LIMÓN GUAJES FOLLOWING FEDERAL COVID-19 DECREE
April 02 2020 - 02:15PM
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
announces that consistent with the COVID-19 related decree issued
by the Government of Mexico for all non-essential businesses in the
country to temporarily suspend operations, production at the
Company’s El Limón Guajes mine will be suspended until April 30,
2020. Guidance is also suspended until further notice.
Fred Stanford, President & CEO of Torex,
stated:
“A 72-hour planned maintenance outage in the
processing plant started on the morning of March 31st. Production
will not be restarted at the conclusion of this planned
maintenance. A care and maintenance team will be kept on site to
maintain protections for the environment and to keep the facilities
and equipment in a state of production readiness. We have done this
before and are good at it.
“Our balance sheet is well positioned to weather
this pandemic, with a strong cash position. The ‘balance sheet’ of
our employees will also be maintained through this period of
suspension with the continued receipt of base compensation and the
upcoming receipt of the 2019 profit sharing payments for Mexico
based employees. Corporate work is expected to continue. When times
are unsettled, the workload for the corporate team tends to
increase.
“Absent pandemic related issues, we had expected
to maintain previously disclosed guidance. At this time, there is
no clear line of sight as to when, how often, and how long this
pandemic is going to affect the ability to produce. We don’t
anticipate re‑establishing guidance until we have a clear line of
sight as to the pandemic related ability to produce during
2020.
“A special thanks to our employee and contractor
teams that have wholeheartedly adopted the measures needed to
protect against this contagion. There have been no known or
suspected cases of COVID-19 infection within our teams and to our
knowledge within their families. Well done! Many of you have
expressed a commitment to continue to use those measures and to
continue to produce. Unfortunately, regardless of our preparations
and diligence, decisions made by authorities during a global crisis
are necessarily ‘broad brush’. Exceptions are difficult to make
until a pathway to controlling the crisis is firmly established.
Such is life. In the meantime, know that your contributions are
truly appreciated and please continue to use the contagion
protection measures to keep your loved ones safe. Better days ahead
and I look forward to seeing everyone on the other side!”
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
includes, but is not limited to, statements that production at the
Company’s El Limón Guajes mine will be suspended until April 30,
2020, guidance is suspended until further notice, a care and
maintenance team being kept on site to maintain protections for the
environment and to keep the facilities and equipment in a state of
production readiness, the ability of the Company’s balance sheet to
weather the pandemic, the continued receipt by the Company’s
employees of base compensation and the upcoming receipt of the 2019
profit sharing payments for Mexico based employees, the
continuation and possible increase of the workload of the Company’s
corporate employees, the timing for reestablishing guidance.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects",
"believes", “future”, 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. 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. 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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