1 A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Luna Project have not been demonstrated at this time. The Media Luna PEA (as defined below) is preliminary in nature and includes inferred m
1 A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the Media Luna Project have not been
demonstrated at this time. The Media Luna PEA (as defined below) is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable t hem to be categorized as mineral reserves. It cannot be assumed that all or any part of the inferred mineral resources will
ever be upgraded to a higher category. Furthermore, there is no certainty that the conclusions or results as reported in the Me dia Luna PEA will be realized. Mineral resources that are not
mineral reserves do not do not have demonstrated economic viability. The Media Luna PEA 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 dem onstrated.
TOREX REPORTS INITIAL RESULTS FROM THE MEDIA LUNA
IN-FILL DIAMOND DRILLING PROGRAM
TORONTO, Ontario, October 25, 2018 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) announces the results from
the first 23 holes, of a planned 175 hole, in-fill drilling program at its Media Luna Project in Southwest Mexico. Highlighte d intercepts
from this program include 10.5 g/t Au Eq. over 39.2 m in borehole ML18-222A; 7.0 g/t Au Eq. over 49.6 m in borehole ML18-215; 7.1
g/t Au Eq. over 45.9 m in borehole ML18-219W and 8.3 g/t Au Eq. over 22.6 m in borehole ML18-208W.
Fred Stanford, President & CEO of Torex stated: “Media Luna is our next planned growth project and it is being advanced on a nu mber
of fronts. One of those fronts was the recently refreshed PEA 1, which illustrated an after-tax IRR of 27% using conventional mining
technologies and 46% utilizing the proprietary, but untested, Muckahi Mining System 1. Engineering optimization work is ongoing after
the publication of the PEA.
A second front is the testing of the Muckahi Mining System at the Company’s ELG site. The first piece of Muckahi equipment is expected
to ship to ELG before the end of this year, with significant testing of the system expected to be completed by year end 2019. Land lease
negotiations for Media Luna have also been completed and permitting baseline work is underway.
Another major package of on-going work is the diamond drilling program to upgrade 25% of the Inferred Media Luna resource to th e
Indicated confidence category. This upgrade in confidence category is intended to enable the declaration of Media Luna reserve s in a
planned upcoming feasibility study. The Inferred resource was drilled out on 100m centers. To upgrade to the Indicated confid ence
category, the diamond drilling is targeted on 30m centers. As of the end of September, 23 holes had assays completed and are reported
today. Results can most easily be described as “as expected”. There are some high-grade holes, some average holes, and some holes
that intersected a dyke in the target zone. This is consist ent with the results from the earlier 100m centers program and bode s well for
the potential of the deposit to live up to expectations. There are currently 5 drills active on the Media Luna Project. On av erage each
drill completes two holes per month, which suggests completion of the program at the end of 2019. Efforts are underway to source more
water so the drill count can be increased.
There are several porphyry targets on the property and one of t he higher priority targets is close to the Media Luna drill site . One of the
drill crews will be diverted to test this ta rget with three holes. This program is expected to get underway this quarter and b e completed
by the end of the first quarter of 2019.”
Highlights of in-fill drilling results at Media Luna
BH ID Interval (m) True
Length (m) Au (g/t) Ag (g/t) Cu (%) Au Eq
(g/t) Lithology From To
ML18-222A 447.35 488.01 39.15 5.24 92.75 2.27 10.51 Skarn
ML18-215 413.76 464.46 49.63 4.80 35.60 0.97 6.99 Skarn
ML18-219W 421.93 468.71 45.89 3.44 59.29 1.64 7.12 Skarn
ML18-208W 471.51 494.62 22.62 3.33 87.37 2.12 8.27 Skarn
ML17-206A 483.00 503.42 20.06 1.27 64.22 1.35 4.55 Skarn
ML17-204 472.30 493.34 20.90 2.66 29.45 1.02 4.83 Skarn
Notes to drilling results table:
1. Intersections are reported as true thickness.
2. The gold equivalent grade, including copper and silver values, are based on 100% metal recoveries. The gold grade equivalent calculation used
is as follows:
Au Equivalent (Au Eq) = Au (g/t) + Cu % * (79.37/47.26) + Ag ( g/t) * (0.74/47.26). Metal prices used are US$1470/oz of gold, silver price of
US$23.00/oz and copper price of US$3.60/lb. Metal prices are as most recent resource statement.
Torex Gold Resources Inc. Page 2
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304-4000
www.torexgold.com
3. Intercepts in this press release were graded for compositing as follows:
a) Includes all intersections greater than 2gpt Au Eq (COG as per the current Resource Statement);
b) For lower grade sections that are bounded by results greater than 2gpt AuEq, they are included unless they are greater than 5m in true
length.
Please refer to Table 1 for a complete list and expanded description of the borehole intercepts reported in this press release. Refer to
Figure 1 for general location and Figures 2 to 6 for geology, borehole locations and assay results.
Geology
The Media Luna deposit occurs within the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite
to tonalite stocks, sills and dykes. Skarn-hosted gold-silver-copper mineralization is developed along the contacts of intrusiv e rocks and
enclosing carbonate-rich se dimentary rocks. Sedimentary rocks and their contact with the main granodiorite stock dip southwest at
approximately 35º. Extensive skarn alteration and metal deposition at this contact exhibits the same dip.
Gold–silver-copper mineralization at Media Luna is primarily associated with sulfidized pyroxene–garnet–magnetite exoskarn and with
zones of massive magnetite-sulfide, at the contact of granodiori te with marble. Sulfidation of skarn assemblages is closely rel ated to
retrograde alteration. This alteration consists of amphibole, phlogopite, chlorite, calcite ± quartz ± epidote.
QA/QC and Qualified Person
At the Company’s Morelos Gold Property (see description below), all of the Media Luna target analytical work is performed by Bureau
Veritas. Sample preparation is done by Bureau Veritas at its facilities in Durango, Mexico. The gold analyses (fire assay with an
atomic absorption or gravimetric finish) is done by Bureau Veritas at its facilities in Hermosillo and multi-element geochemical analyses
are completed at their analytical facilities in Vancouver. Torex has Quality Assurance/Quality Control (“QA/QC”) program in place that
includes 5% each of the Certified Reference Materials and Blanks. Blind duplicates are not included but Torex evaluates the results of
Internal Bureau Veritas laboratory duplicates.
The QA/QC program as designed has been approved by Bureau Veritas and is currently overseen by Nicolas Landon, Chief Exploration
Geologist for the Media Luna Project.
Except for the information contained in paragraphs two and three of this news release, Mark Hertel is the Qualified Person under NI 43-
101 for the scientific and technical information contained in this news release including figures 1 to 6. Mr. Hertel is a Registered Member
of the Society for Mining, Metallurgy & Exploration, has experi ence relevant to the style of mineralization under consideration and is an
independent consultant. Mr. Hertel 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 it appears. Dawson Proudfoot, a Qualified
Person under NI 43-101 and the Vice President, Engineering of the Co mpany, has reviewed and approved the scientific and technical
data contained in the second and third paragraphs of this news release.
Additional information on the Media Luna deposit, the mineral resource estimate for the Media Luna Project, updated Media Luna
Preliminary Economic Assessment (PEA) and analytical and sampling process is available in the Company’s technical report (TR) entitled
the “Morelos Property, NI 43-101 Technical Report, ELG Mine Complex, Life of Mine Plan and Media Luna Preliminary Economic
Assessment, Guerrero State, Mexico”, dated effective March 31, 2018” filed on September 4, 2018 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
Torex Gold Resources Inc. Page 3
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304-4000
www.torexgold.com
Tel. (647) 260-1502 Tel. (647) 260-1503
Email: [email protected] E m a i l : [email protected]
CAUTIONARY NOTES
PRELIMINARY ECONOMIC ASSESSMENT
A preliminary economic assessment should not be considered a prefeasibility study or feasibility study, as the economics and technical viability of the
Media Luna Project have not been demonstrated at this time. The PEA is preliminary in nature and includes inferred mineral reso urces that are
considered too speculative geologically to have the economic cons iderations applied to them that would enable them to be catego rized as mineral
reserves. It cannot be assumed that all or any part of the inferred mineral resources will ever be upgraded to a higher category. Furthermore, there is
no certainty that the conclusions or results as reported in the Media Luna PEA will be realized. Mineral resources that are not mineral reserves do not
do not have demonstrated economic viability.
The Media Luna PEA 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 TR. Aspects
of Muckahi mining equipment are currently in the design stage. The mine design, equipment performance and cost estimations are conceptual in
nature, and do not demonstrate technical or economic viability. The approximate timeframe to develop and test the concept would be approximately
two years (approx. second quarter 2020) for the mine development ac tivities and up to five years for the mine production activi ties (approx. second
quarter 2023). Further studies would be required to verify the viability of Muckahi. Muckahi is not intended as a “trade off study” but is shown to merely
demonstrate the potential benefits Muckahi may have using the Medi a Luna deposit as an example. It includes inferred mineral r esources that are
considered too speculative geologically to have the economic cons iderations applied to them that would enable them to be catego rized as mineral
reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” and “for ward-looking information” within the meaning of applicable Can adian securities
legislation. Notwithstanding the Company’s efforts, there c an be no guarantee that the Company will not face unforeseen delays or disruptions.
Forward-looking information includes, but is not limited to, the results of the Media Luna PEA, the expected timing the information with respect to the
drill program for the Media Luna area and the results of the dril l program contained herein, the expectation of upgrading the M edia Luna mineral
resource and determining a mineral reserve, the expected timing and completion of the infill drilling program and the drilling program on the porphyry
target, the expected completion of a feasibility study, future exploration and development plans of the Company, access to the targets as described
herein, and the potential for mining the Media Luna area. Generally , forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “indicates”, “expects”, “estimates”, “intends”, “anticipates” or “believes” 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, witho ut limitation, the risk
associated with the variability of skarn deposits, the risk that actual results of current exploration and development activiti es will not achieve
expectations, uncertainty as a result of the preliminary natur e of the PEA and the Company’s ability to realize the results of the PEA, uncertainty
regarding the inclusion of inferred mineral resources in the mi neral resource estimate and the Company’s ability to upgrade the inferred mineral
resources to a higher category, uncertainty regarding the ability to convert any part of the mineral resource into mineral reserves, uncertainty involving
resource estimates and the ability to extract those resources economically, or at all, uncertainty involving drilling programs, the regulatory process and
actions, uncertainty about the success of the Muckahi mining s ystem, ability to finance the Media Luna Project on reasonable te rms, and those risk
factors identified in the TR and the Company’s annual information form and management’s discussion and analysis. Forward-looking information are
based on the assumptions discussed in the TR and such other r easonable assumptions, estimates, analysis and opinions of managem ent made in
light of its experience and perception of trends, current condi tions and expected developments, and other factors that manageme nt 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 futu re events could differ
materially from those anticipated in such information. A ccordingly, 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 – Plan of 2015 Resource Area and Infill Area
1
Figure 2 - Plan View Infill Drilling Phase 1 Area
ML17-202
6.60 m @ 8.83 (gpt) AuEq
ML17-201
17.59 m @ 2.26 (gpt) AuEq
5.52 m @ 6.11 (gpt) AuEq
ML17-205
4.49 m @ 5.40 (gpt) AuEq
ML17-204
9.88 m @ 5.70 (gpt) AuEq
20.90 m @ 4.83 (gpt) AuEq
20.34 m @ 4.49 (gpt) AuEq
ML17-206A
20.06 m @ 4.55 (gpt) AuEq
ML18-208W
3.62 m @ 2.45 (gpt) AuEq
5.44 m @ 4.46 (gpt) AuEq
22.62 m @ 8.27 (gpt) AuEq
ML17-207A
1.00 m @ 2.39 (gpt) AuEq
ML18-209A
0.36 m @ 2.26 (gpt) AuEq
ML18-211B
5.97 m @ 4.77 (gpt) AuEq
ML18-212W
6.06 m @ 4.00 (gpt) AuEq
ML18-210W
2.92 m @ 3.32 (gpt) AuEq
ML18-214
10.60 m @ 8.99 (gpt) AuEq
ML18-218
4.22 m @ 3.21 (gpt) AuEq
ML18-215
49.63 m @ 6.99 (gpt) AuEq
ML18-220W
2.26 m @ 5.79 (gpt) AuEq
ML18-217
10.46 m @ 5.97 (gpt) AuEq
3.20 m @ 3.29 (gpt) AuEq
ML18-219W
45.89 m @ 7.12 (gpt) AuEq
ML18-216
2.35 m @ 7.70 (gpt) AuEq
4.33 m @ 3.02 (gpt) AuEq
WZML-25B
5.08 m @ 3.15 (gpt) AuEq
WZML-30
11.69 m @ 5.62 (gpt) AuEq
WZML-22
12.70 m @ 7.53 (gpt) AuEq
ML17-203A
7.52 m @ 2.81 (gpt) AuEq
3.89 m @ 17.19 (gpt) AuEq
WZML-31
29.06 m @ 5.55 (gpt) AuEq
WZML-58
No skarn mineralization
(dike)
ML-35
18.60 m @ 35.43 (gpt) AuEq
WZML-11
No skarn mineralization
(dike)
ML18-222A
39.15 m @ 10.51 (gpt) AuEq
ML18-224W
8.53 m @ 25.32 (gpt) AuEq
ML18-221A
5.10 m @ 5.36 (gpt) AuEq
ML18-223W
9.00 m @ 6.04 (gpt) AuEq
2
900m
750m
900m
ML17-206A
ML18-208W
WZML-57
WZML-43
Figure 3 – Cross Section 422480
Looking W (20 m influence)
WZML-11
1000m
900m
NS
0m 100m
WZML-43
16.66 m @ 2.96 (gpt) AuEq
WZML-57
6.12 m @ 5.96 (gpt) AuEq
ML18-208W
3.62 m @ 2.45 (gpt) AuEq
5.44 m @ 4.46 (gpt) AuEq
22.62 m @ 8.27 (gpt) AuEq
600m
600m
600mLegend
New assay report
Exoskarn interp. From 100 m section spacing
Endoskarn interp. From 100 m section spacing
New interpretation from Infill campaign.
FBHQ dike.
Lithology
Limestone/Marble
Granodiorite
Previously reported assays
Portion of the infill target area to be drilled
in 2017/2018
ML17-206A
20.06 m @ 4.55 (gpt) AuEq
3
750m
900m
600m
750m
100m0m
900m
Figure 4 – Cross Section 422550
Looking W (20 m influence)
WZML-56
ML18-212W
ML18-225
ML17-204
WZML-35
WZML-36
NS
WZML-07
WZML-07
25.85 m @ 40.12 (gpt) AuEq
9.68 m @ 8.27 (gpt) AuEq
WZML-35
27.51 m @ 5.30 (gpt) AuEq
WZML36
54.93 m @ 3.38 (gpt) AuEq
WZML-56
2.70 m @ 4.68 (gpt) AuEq
ML18-210W
ML17-204
9.88 m @ 5.70 (gpt) AuEq
20.90 m @ 4.83 (gpt) AuEq
20.34 m @ 4.49 (gpt) AuEq
ML18-212W
6.06 m @ 4.00 (gpt) AuEq
ML18-210W
2.92 m @ 3.32 (gpt) AuEq
ML18-225
Results pending
ML18-230
Results pending
600m
600m
600mLegend
New assay report
Exoskarn interp. From 100 m section spacing
Endoskarn interp. From 100 m section spacing
New interpretation from Infill campaign.
FBHQ dike.
Lithology
Limestone/Marble
Granodiorite
Previously reported assays
Portion of the infill target area to be drilled
in 2017/2018
4
0m 200m
1000m
900m
Figure 5 – Long Section 422573
Looking NE (50 m influence)
NW SE
ML18-215
ML18-219W
ML18-222A
ML17-204
WZML-31
WZML-58
ML17-203A
ML18-226B
ML18-205
MLL-61
WZML-23
WZML-24
ML18-226B
Results pending
ML-61
3.02 m @ 4.06 (gpt) AuEq
WZML-24
3.95 m @ 5.97 (gpt) AuEq
WZML-31
29.06 m @ 5.55 (gpt) AuEq
WZML-23
3.71 m @ 2.96 (gpt) AuEq
800m
600m
600m
ML18-215
49.63 m @ 6.99 (gpt) AuEq
ML18-219W
45.89 m @ 7.12 (gpt) AuEq
ML18-222A
39.15 m @ 10.51 (gpt) AuEq
ML17-205
4.49 m @ 5.40 (gpt) AuEq
ML17-203A
7.52 m @ 2.81 (gpt) AuEq
3.89 m @ 17.19 (gpt) AuEq
ML17-204
9.88 m @ 5.70 (gpt) AuEq
20.90 m @ 4.83 (gpt) AuEq
20.34 m @ 4.49 (gpt) AuEq
600m
600m
600mLegend
New assay report
Exoskarn interp. From 100 m section spacing
Endoskarn interp. From 100 m section spacing
New interpretation from Infill campaign.
FBHQ dike.
Lithology
Limestone/Marble
Granodiorite
Previously reported assays
Portion of the infill target area to be drilled
in 2017/2018
800m
600m
5