Torex Announces High Grade Sub-Sill Resource
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304 4000
www.torexgold.com
TOREX ANNOUNCES HIGH GRADE SUB-SILL RESOURCE
TORONTO, Ontario, March 29, 2017 – Torex Gold Resources Inc. (t he “Company” or “Torex”) (TSX:TXG) is pleased to announce a,
CIM Definition Standards compliant, mineral resource estimate for its Sub-Sill deposit of 324,000 Inferred gold ounces and 89,000
Indicated gold ounces, at a cut-off grade of 2.5g/t Au. The Inferred resource is contained in 1.33 million tonnes at an average Au grade
of 7.58 g/t. The Indicated resource is c ontained in 353,000 tonnes at an average Au grade of 7.82 g/t. The Sub-Sill deposit is located
in close proximity to the Company’s ELG processing plant in Southwest Mexico and remains open in several directions.
Fred Stanford, President and CEO of Torex stated: “The Sub-Sill provides the potential to offer a material increase in the near -term
ounces produced through the ELG processing plant as a result of the high grade and the rapid advance of the planned 600 meter
access ramp. The ramp is now less than 170 meters (4 m/d adva nce rate) from the anticipated co ntact with the skarn rocks that host
the Sub-Sill deposit. Mine planning is underway and the mine design effort will seek to pull production of the highest-grade t onnes to
as early in the mine plan as possible. It is worth noting that in the resource estimate there are 147,000 Au ounces in 260,000 Inferred
tonnes averaging 17.45 g/t Au, and 45,000 Au ounces in 90,000 Indicated tonnes averaging 15.98 g/t Au.” He added, “The Sub-Sil l
deposit also has the potential to increase in size. It remains open in all directions, including at depth. The deposit, as cu rrently
defined, covers an area of approximately 22,000 m 2. The prospective area to test for expansions of the deposit covers an area of
approximately 1,000,000 m2, with additional potential at depth. In early Q2/17, the next phase of the Sub-Sill exploration diamond drill
program will begin. 15,000 meters of drilling are included in the program with an expectation that it will be completed over t he following
6 months. One objective of the drill program is increasing the dr ill density in 1,000,000 of the Inferred tonnes to that requi red for the
potential to upgrade to the Indicated confidence level. The drill program will also test the deeper magnetic target, a pattern ed step-out
drilling of an area of 90,000 m 2, and a few distant step-out holes to test the extents of the prospective area. Results from this program
will be released as they are received and interpreted.”
Table 1.1 Sub-Sill Underground Resource
Mineral Resource Statement, Sub-Sill Underground
Tonnes
(Mt)
Au Grade
(g/t)
Ag Grade
(g/t)
Cu Grade
(%)
Contained
Au
(oz)
Contained
Ag
(oz)
Sub Sill
Indicated 0.35 7.82 6.25 0.27 89,000 71,000
Inferred 1.33 7.58 11.46 0.60 324,000 490,000
Notes to accompany Sub Sill Underground Mineral Resource Table
1. The estimate was prepared by Mark. P. Hertel, RM SME, an employee of MPH Consulting, who is a
“Qualified Person” under NI 43-101.
2. The estimate has an effective date of February 24, 2017.
3. Mineral Resources are classified in accordance with the 2014 CIM Definition Standards for Mineral
Resources and Mineral Reserves and the 2003 CIM Estima tion of Mineral Resources and Mineral Reserves
Best Practice Guidelines.
4. Mineral Resources are reported above a 2.5 g/t Au cut-off grade.
5. Mineral Resources are reported as undiluted; grades are contained grades.
6. Sub Sill Resources contained within the conceptual pi t shell have been removed from the El Limón Open Pit
Resources.
7. Mineral Resources are reported using a long-term gold price of US$1380/oz, and silver price of
US$21.00/oz.
8. The assumed mining method is from underground.
9. Recoveries gold 87% and silver 25%.
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
10. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes,
grade, and contained metal content.
Table 1.2 Sub-Sill Indicated Resource sensitivity to cut-off grade (base case highlighted)
Sub-Sill Indicated Resource
Cutoff Au
(g/t)
Tonnes
(Mt)
Au Grade
(g/t)
Ag Grade
(g/t)
Cu Grade
(%)
Contained
Au
(oz)
Contained
Ag
(oz)
2.00 0.42 6.94 5.73 0.25 93,000 77,000
2.50 0.35 7.82 6.25 0.27 89,000 71,000
5.00 0.21 10.88 8.23 0.37 72,000 55,000
10.00 0.09 15.98 10.23 0.49 45,000 29,000
Table 1.3 Sub-Sill Inferred Resource sensitivity to cut-off grade (base case highlighted)
Sub-Sill Inferred Resource
Cutoff Au
(g/t)
Tonnes
(Mt)
Au Grade
(g/t)
Ag Grade
(g/t)
Cu Grade
(%)
Contained
Au
(oz)
Contained
Ag
(oz)
2.00 1.56 6.79 10.54 0.54 341,000 528,000
2.50 1.33 7.58 11.46 0.60 324,000 490,000
5.00 0.77 10.50 13.71 0.79 260,000 339,000
10.00 0.26 17.45 16.21 0.93 147,000 136,000
The mineral resource estimates set out above have been prepared by Mr. Mark P. Hertel, who is a Qualified Person under NI 43-101.
Please refer to Figure 1 for a resource area map, Figure 2 for a long section of the prospect area and Figure 3 for a represent ation of
the access ramp underground development.
Sub-Sill Geology
The Sub-Sill deposit occurs at the south end of the El Limon de posit in the Mesozoic carbonate-rich Morelos Platform, which has been
intruded by Paleocene granod iorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts o f the
intrusive rocks and the enclosing carbonate-rich sedimentary rocks. Gold mineralization at El Limon is hosted in skarn develop ed in
the Cuautla and Morelos formations immediately above a large grano diorite sill. At the Sub-Sill area, multiple skarn zones have been
recognized along the base of the granodiorite sill. The sill has a complex shape and is interpreted to consist of two or more sills that
emanate from the main body of granodiorite . The best developed skarn zones at the ba se of the sill generally strike NE-SW and dip
about 45° to the northwest. They host multiple horizons with hi gh grade gold mineralization that vary in strike length from
approximately 50 meters up to 200 meters, with apparent widths varying from 2 meters to 27 meters. The overall skarn body in th e
Sub-Sill area has a N-S to NE-SW trend that appears to connect to previously recognized skarn and gold mineralization at the Li mon
Sur deposit 200 meters to the SW.
Mineralization at the Sub-Sill deposit is primarily gold, associated with variable contents of silver and copper. Gold occurs i n variably
sulfidized pyrrhotite enriched skarn, while silver and copper mine ralization is primarily determined by the degree of sulfidati on of the
host skarn. Mineralization is associated with retrograde alteration characterized by amphibole, calcite and quartz, with lessor amounts
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
of chlorite ± epidote, affecting pyroxene-garnet exoskarn and granodiorite-related endoskarn. Locally mineralization occurs in narrow
lenses of massive sulfides.
Mineral Resource Estimate Methodology
Within the Sub-Sill project 44 drill holes (9,269 meters) support the mineral resource estimate. Assays were composited into 2 .5 meter
lengths for estimation into 2.5 meter cubic blocks. MineSight® a commercially-available geologic modeling and mine planning software
package, was used to produce a three-dimensional block model. Specific gravity (SG) was assigned by rock type from 107 wax
immersion density determinations. Gold, silver and copper grades, within the Sub-Sill resource model, were estimated using grad e
domains, defined from Probability Assigned Constrained Kriging (PACK) and lithologic codes. Ordinary kriging was used to interp olate
grade. Mineral Resources take into account geologic, mining, and processing constraints. Mineral Resources are classified in
accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves and the 2003 CIM Estimation of
Mineral Resources and Mineral Reserves Best Practice Guidelines.
QA/QC and Qualified Persons
At the Morelos Gold Project, all of the El Limon Sub-Sill target analytical work is performed by SGS de Mexico S.A. de C.V. (“S GS”) in
Durango, Mexico and at SGS Mineral Services in Vancouver, British Columbia, Canada and ALS Chemex de Mexico S.A. de C.V.
Sample preparation is done at SGS sample preparation laboratory in Durango, Mexico. The gold analyses (fire assay with an atomi c
absorption or gravimetric finish) are completed at SGS analytical laboratory in Durango, Mexico and multi-element geochemical
analyses are Copper Sequential Leaching are completed at their analytical facilities in Vancouver, British Columbia, Canada. Ch eck
assays samples are analyzed at ALS Chemex Vancouver, BC, Canada. SGS and ALS Chemex are independent of the Company.
The Company has a Quality Assurance/Quality Control (“QA/QC”) program in place that includes 5% of each of the certified refere nce
materials, blanks and field duplicates. 10% of pulp samples are analyzed at a second laboratory as part of the QA/QC program to
ensure the batch to batch relative bias remains constant and t hat absolute accuracy at anomalous to near cut-off grades is meas ured
and acceptable. The QA/QC program as designed has been approved by Bureau Veritas and is currently overseen by Carlo Nasi,
Chief Mine Geologist for the Morelos Gold Project.
The scientific and technical data contained in this news release pertaining to the Morelos Project has been reviewed and approv ed by
Mr. Mark P. Hertel, RM, SME, who is a Qualified Person under NI 43-101. Mr. Hertel is a Registered Member of the Society for Mining,
Metallurgy & Exploration, has experience relevant to the style of mineralization under consideration and is an independent cons ultant,
employed by MPH Consulting. Mr. Hertel has verified the data disclosed, including sampling, analytical, and test data underlyin g the
drill results and he consents to the inclusion in this release of said data in the form and context in which it appears.
Additional information on the El Limon deposit and analytical labs is available in the Company’s most recent annual information form
filed on SEDAR at www.sedar.com and the Company’s website at www.torexgold.com.
Step Out Drilling Program to Test Extension of the Sub-Sill Mineralization
The Company plans to conduct a drill program consisting of infill and step out drilling which will upgrade inferred resources, test the
extents and target the prospect areas to the north, south, west, east and at depth of the known resources. The program is expe cted to
start in Q2/17 and continue over six months. See Figure 1 for a plan view highlighting the resource and prospect areas and Figure 2 for
a long section of the prospect area.
The infill portion of the program consists of 7,100m on a 17.5mx 17.5m drill spacing with a goal to upgrade 1,000,000 tonnes of inferred
resource to the indicated category.
The step out drilling consists of 6,500m on a 70mx70m drill spaci ng. The purpose of this program is to test the prospective are as to the
north, south, west and east of the known resource, in successive lines.
The step out drilling will also incl ude 1,450m of drilling near the extents of t he prospective area and at depth, to test the h igh magnetic
anomaly. The purpose of this drilling is to test prospective areas on trend with the known resource and at depth.
Torex Gold Resources Inc. Page 4
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304 4000
www.torexgold.com
About Torex
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 1 00%
owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers
southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine, which announced commercial production in Ma rch
of 2016 and the Media Luna Project, which is in an early stage of development and for which the Company issued a preliminary
economic assessment (PEA) in 2015. 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: [email protected] E m a i l : [email protected]
CAUTIONARY NOTE REGARDING 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, without limitation, informati on with respect to mineral resource estimates, the material increase in near term
production, mine design, the potential increase in the size of the Sub-Sill deposit, and the initial drill program at the Sub S ill prospecting area.
Generally, forward-looking information can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”,
“believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or
“be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cau se the Company’s
actual results, level of activity, performance or achievements to be materially different from those expressed or implied by su ch forward-looking
information, including, without limitation, risks related to the inability to realize resource estimates at anticipated recovery levels or at all, assumptions
underlying resource estimates being incorrect, and those risk factors identified in the Company’s annual information form and m anagement’s
discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions o f 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 su ch statements are made. Although the Company has attempted to id entify important
factors that could cause actual results to differ materially fr om those contained in 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, except in accordance with applicable securities laws.
Figure 1
Magnetic Anomaly
El Limon Sur
Sub-Sill
Resources
El Limon Pit
Projection of
El Limon Deep
on Section
Pit Outline Sub-Sill Prospect
Zone
ELD
SW NE
200m
Figure 2
Start
Nov 16
Sub-Sill
Resource Area
El Limon Deep
El Limon Pit
300 m El Limon Sur
N
Skarn Zone
Figure 3