Torex Gold Reports Additional Impressive Drilling Results from ELG Underground 2023 program builds on past success to prove the long-term reserve and resource potential at ELG
Torex Gold Reports Additional Impressive
Drilling Results from ELG Underground
2023 program builds on past success to prove the long-term
reserve and resource potential at ELG
Toronto, Ontario--(Newsfile Corp. - February 26, 2024) - Torex Gold Resources Inc. (the "Company" or
"Torex") (TSX: TXG) is pleased to provide an update on the Company's ongoing drilling program at ELG
Underground, the results of which continue to support the Company's strategy to extend and optimize the
mine life of ELG Underground and fill the mill beyond 2027.
Jody Kuzenko, President & CEO of Torex, stated:
"The investment in our 2023 drilling program at ELG Underground continued to build on the positive
results achieved year on year to grow the overall mineral endowment at ELG and unlock the significant
cash generation potential of the Morelos asset. Drilling was successful in identifying a new zone of
mineralization where the La Flaca fault intersects the El Limón Sur Trend near existing underground
infrastructure. Highly positive drill results, including an outstanding intercept of 11.75 grams per tonne
gold equivalent ("gpt AuEq") over nearly 23 metres ("m"), further support the potential to bring
mineralization in this area into a mineral resource estimate when the Company releases its year-end
2023 mineral reserve and resource update in March.
"Additionally, drilling carried out in the latter portion of 2023 extended higher-grade mineralization along
the southern portion of the El Limón Sur Trend (29.88 gpt AuEq over 9.6 m) and further bolstered the
mineralized potential at the 400 m level (5.53 gpt AuEq over 3.7 m), which is the deepest level drilled to
date within this Trend. At the El Limón West Trend, drilling continues to support the potential for a new
mining front, with mineralization open along strike and at depth, while drilling along the Sub-Sill and El
Limón Deep Trends also extended mineralization outside of existing resources.
"The 2023 drilling program has reinforced our confidence in the ability to continue to grow resources and
extend the reserve life of ELG Underground, all with a goal of filling the mill with higher-grade feed and
maintaining annual gold equivalent production of +450,000 ounces beyond 2027
1
."
1)
For additional information on Torex's five-year production outlook, please refer to the Company's press release dated January 16, 2024 titled
"Torex Gold provides 2024 operational guidance and updated five-year production outlook"
HIGHLIGHTS
The final results of the 2023 exploration and drilling program at ELG Underground support potential
reserve replacement and expansion of the mineralized footprint, indicating the potential to extend the life
of ELG Underground beyond 2026. The Exploration Team has encountered untapped upside along the
identified structural trends, many of which are in close proximity to existing underground infrastructure,
which will allow investments made to date to be leveraged.
El Limón Sur Trend
Drill hole LS-295 returned
29.88
gpt AuEq over 9.6 m
, confirming the continuity of high-grade
mineralization along the southern extension of the El Limón Sur Trend. This mineralization was
encountered 30 m north of the previously reported high-grade intercept in drill hole LS-293
(20.74
gpt AuEq over 4.6 m)
, indicating potential for a high-grade zone that is open along trend to the
south.
Follow-up drilling to test the continuity of mineralization at the 400 m level encountered
5.53 gpt
AuEq over 3.7 m
in drill hole SST-318, more than 300 m south of the previously reported drill hole
SST-299
(4.17 gpt AuEq over 3.7 m)
.
Drilling targeting mineralization at the junction of the El Limón Sur Trend and La Flaca fault
returned outstanding results. The best intercept was from drill hole LDUG-239 at
11.75 gpt AuEq
over 22.9 m
, located in an expanding new zone of mineralization measuring 400 m high by 400 m
wide that includes multiple intercepts above 5.0 gpt AuEq. These findings indicate the potential to
increase both Indicated and Inferred resources at year-end 2023. When considered in conjunction
with the other drilling results in this area, this mineralization may also be open at depth to at least
the 400 m elevation level, which is the deepest the drilling has been conducted to date within the El
Limón Sur Trend.
El Limón Deep Trend
Infill drilling along the El Limón Deep Trend continued to return high-grade intercepts, including
26.93 gpt AuEq over 3.6 m
,
14.75 gpt AuEq over 37.1 m
and
7.87 gpt AuEq over 6.4 m
in drill
hole LDUG-299, and
9.26 gpt AuEq over 3.4 m
and
5.26 gpt AuEq over 6.8 m
in drill hole
LDUG-303. Drill hole LDUG-311
(10.21 gpt AuEq over 20.6 m
and
6.21 gpt AuEq over 6.8 m)
extended mineralization to the south and confirmed mineralization in this region plunges to the
southwest.
Sub-Sill Trend
Drilling confirmed the continuity of mineralization along the Sub-Sill Trend north of the La Flaca fault
and encountered high-grade mineralization, including drill hole LDUG-238 which returned
9.65 gpt
AuEq over 12.3 m
. Importantly, these intercepts are located in close proximity to existing
underground infrastructure.
El Limón West Trend
Step-out drilling to the south along the El Limón West Trend encountered
13.73 gpt AuEq over
4.0 m
and
11.92 gpt AuEq over 3.6 m
in drill hole LS-290, expanding the mineralized footprint of
the El Limón Sur pit to the south and reinforcing the high-grade potential at depth in this area.
Follow-up drilling conducted near drill hole LS-229
(6.90 gpt AuEq over 3.4 m, previously
reported)
confirmed the continuity of mineralization 100 m to the south at the 550 m level, with drill
hole LS-231 returning an intercept of
3.01 gpt AuEq over 3.1 m
. Further work will be conducted to
assess the mineralization potential at this depth northwest along trend towards the Z71 fault.
2023 ELG UNDERGROUND DRILLING PROGRAM
In 2023, 60,699 m across 248 holes were drilled as part of the ELG brownfield and near-mine
exploration and drilling programs, achieving the target set for the year. Assay results have been returned
for all holes drilled and will be reported with the Company's year-end 2023 mineral reserve and resource
update.
Figure 1: Plan view of ELG Underground highlighting known mineralized zones and mineralization
extensions
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1863/198062_ef8dc376b421bbd0_001full.jpg
A majority of this latest round of drilling was dedicated to delineating new resources within the most
promising areas of the El Limón Sur Trend, where step-out drilling yielded high-grade results.
Additionally, mineralization was extended both north and south along the Sub-Sill and El Limón West
Trends.
As a result of this success, the 2024 program will focus on further exploring the northeast-trending
structural corridors, with a particular focus on their intersections with La Flaca fault where the highest
grades and volumes of mineralization are concentrated. Initial drilling efforts will test the depth extensions
of these mineralized zones before exploring lateral continuity along the corridors. Approximately $12
million has been allocated to infill and step-out drilling (total of 54,500 m) at ELG Underground in 2024.
The overall objective of the program continues to be the replacement of reserves and expansion of
resources, all with the aim of continuing to extend the life of ELG Underground.
Detailed drill results are reported in Table 5 (El Limón Sur Trend), Table 6 (El Limón Deep Trend), Table
7 (Sub-Sill Trend), and Table 8 (El Limón West Trend).
Drill hole intercepts are core lengths and not true widths. AuEq grades use the same metal prices
($1,550/oz gold ("Au"), $20/oz silver ("Ag"), and $3.50/lb copper ("Cu")) and metallurgical recoveries
(90% Au, 86% Ag, and 93% Cu) used in the year-end 2022 mineral resource estimate for ELG
Underground (AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0123 + Cu (%) * 1.6000).
EL LIMÓN SUR TREND (FIGURE 2)
Drilling along the El Limón Sur Trend in 2023 focused on expanding resources, particularly where the
Trend intersects La Flaca fault above the 600 m elevation level. Results have been successful, with many
intercepts exceeding 5.0 gpt AuEq with widths ranging from 3.0 m to 23.0 m, indicating the potential to
add ounces to year-end 2023 mineral resources.
Of particular note, earlier results from the 2023 drilling program indicated the potential extension of this
mineralized zone to a depth of 400 m. Newly reported drill hole SST-318 not only confirms the vertical
continuity of mineralization, but also validates the extension of deeper mineralization within the El Limón
Sur Trend south of the Z71 fault.
Table 1: Recent highlights from the 2023 drilling program along the El Limón Sur Trend
Drill Hole
From
(m)
To
(m)
Core Length
1
(m)
Au
(gpt)
Ag
(gpt)
Cu
(%)
AuEq
2
(gpt)
LS-295
262.31
271.88
9.57
27.95
44.3
0.86
29.88
SST-318
622.29
626.00
3.71
4.83
13.4
0.33
5.53
LDUG-239
177.16
200.07
22.91
10.94
12.0
0.41
11.75
LDUG-291
332.00
338.00
6.00
4.11
26.1
1.90
7.47
405.95
410.00
4.05
4.57
17.0
0.83
6.11
LDUG-295
201.00
204.69
3.69
5.38
6.7
0.24
5.84
LDUG-300
150.85
157.91
7.06
4.70
27.9
1.70
7.76
LDUG-304
179.18
182.60
3.42
4.34
44.3
1.76
7.71
LDUG-305
411.00
419.40
8.40
5.58
2.2
0.04
5.67
LS-266
45.00
48.40
3.40
8.54
12.0
0.22
9.03
LS-292
165.50
173.00
7.50
8.09
119.1
2.12
12.95
LS-305
47.00
55.50
8.50
12.31
1.7
0.01
12.35
SST-324
69.24
73.94
4.70
4.44
28.2
2.75
9.18
SST-332
183.00
189.98
6.98
4.83
38.1
1.70
8.02
Notes to Table:
1)
Intercepts are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2)
The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0123 + Cu (%) * 1.6000 and use the same metal
prices ($1,550/oz Au, $20/oz Ag, and $3.50/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the mineral resource
estimate for ELG Underground.
Exploration at the southern known boundary of the El Limón Sur Trend also encountered high-grade
mineralization, potentially expanding resources to the south and indicating that this mineralization may
be plunging to the southeast. Drill hole LS-295, located 30 m north of the high-grade intercept previously
encountered in drill hole LS-293, returned an intercept with AuEq grades close to one ounce per tonne
over 9.6 m. This indicates the potential for a high-grade zone of mineralization along this Trend that is
open to the south and at depth.
Furthermore, ongoing drill results in this area consistently returned impressive levels of copper
mineralization, indicating the potential to enhance future copper production if proven as mineral reserves
and once upgrades to the processing plant are completed later this year as part of the Media Luna
Project.
EL LIMÓN DEEP TREND (FIGURE 3)
Infill drilling conducted along the northeast-trending structural corridor known as the El Limón Deep Trend
returned several notable intercepts, indicating the potential to upgrade Inferred resources to the
Indicated category with the year-end 2023 mineral resource update. A number of the latest drill holes,
including LDUG-299 and LDUG-303, retuned multiple intercepts exceeding 5.0 gpt AuEq.
Step-out drilling targeting resource categorization extended mineralization at depth by approximately
200 m. Mineralization remains open at depth and further work will be conducted in 2024 to test the full
extension of this Trend.
Drilling in this area also encountered high-grade mineralization such as drill hole LDUG-311, which
returned 10.21 gpt AuEq over 20.6 m. This is comparable to the mineralized zone that follows the El
Limón Sur Trend, a further indicator that the overall system is controlled by the intersection of north-south
trending structural corridors with the northeast trending La Flaca fault.
Table 2: Highlights from the 2023 resource delineation program along the El Limón Deep Trend
Drill Hole
From
(m)
To
(m)
Core Length
1
(m)
Au
(gpt)
Ag
(gpt)
Cu
(%)
AuEq
2
(gpt)
LDUG-278
104.00
108.00
4.00
4.48
12.3
0.30
5.11
LDUG-282
100.88
103.45
2.57
4.45
15.3
0.30
5.12
LDUG-285
105.50
111.00
5.50
6.84
3.1
0.08
7.00
LDUG-299
157.00
160.57
3.57
26.73
3.6
0.10
26.93
174.19
211.27
37.08
14.04
9.5
0.38
14.75
229.65
236.04
6.39
7.28
10.2
0.29
7.87
LDUG-303
165.64
169.00
3.36
7.79
21.3
0.75
9.26
192.77
199.55
6.78
4.92
4.6
0.18
5.26
LDUG-311
262.00
282.57
20.57
8.22
29.2
1.02
10.21
293.35
300.10
6.75
2.56
46.9
1.92
6.21
LS-303
270.20
276.00
5.80
5.93
16.7
0.16
6.40
Notes to Table:
1)
Intercepts are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2)
The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0123 + Cu (%) * 1.6000 and use the same metal
prices ($1,550/oz Au, $20/oz Ag, and $3.50/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the mineral resource
estimate for ELG Underground.
SUB-SILL TREND (FIGURE 4)
One of the most significant findings along the Sub-Sill Trend was the continuation of mineralization north
of the La Flaca fault. Drilling in this area encountered high-grade mineralization, confirming the
exploration potential to the north, further enhanced by their proximity to existing underground
infrastructure.
Additionally, between the La Flaca and Z71 faults, drilling in five holes confirmed the Inferred resources'
block model, with grades in three holes ranging from 4.0 to 6.0 gpt AuEq and thicknesses not exceeding
6.0 meters. Two holes did not encounter mineralization, thus confirming the geometry of this mineralized
zone.
Finally, south of the Z71 fault, the exploratory hole SST-325 encountered mineralization along the
southern extension of the Trend, indicating that the Trend remains open to the south.
Table 3: Highlights from the 2023 drilling program along the Sub-Sill Trend
Drill Hole
From
(m)
To
(m)
Core Length
1
(m)
Au
(gpt)
Ag
(gpt)
Cu
(%)
AuEq
2
(gpt)
LDUG-238
139.23
151.56
12.33
8.92
7.2
0.40
9.65
LDUG-264
165.30
171.40
6.10
4.64
5.3
0.51
5.52
LDUG-292
110.46
113.00
2.54
0.65
282.4
0.56
5.03
LDUG-294
55.29
58.41
3.12
5.07
8.4
0.20
5.49
SST-325
160.19
164.00
3.81
2.56
1.6
0.04
2.65
SST-340
220.80
225.46
4.66
2.13
36.9
2.05
5.86
Notes to Table:
1)
Intercepts are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2)
The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0123 + Cu (%) * 1.6000 and use the same metal
prices ($1,550/oz Au, $20/oz Ag, and $3.50/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the mineral resource
estimate for ELG Underground.
EL LIMÓN WEST TREND (FIGURE 5)
Follow-up drilling along the El Limón West Trend was successful in confirming the continuity of
mineralization to the south, most notably in drill hole LS-290, which returned multiple high-grade
intercepts. Additionally, follow-up drilling conducted via hole LS-231, located 100 meters to the south of
the previously reported intercept from LS-229, confirms the continuity of deeper mineralization identified
in this zone. Drilling in this area continues to support the potential for a new mining front, with
mineralization open along strike and at depth. Results indicate that mineralization is trending north
towards the Z71 fault, a hypothesis that will be the focus of drilling in this area in 2024.
Table 4: Highlights from the 2023 drilling program along the El Limón West Trend
Drill Hole
From
(m)
To
(m)
Core Length
1
(m)
Au
(gpt)
Ag
(gpt)
Cu
(%)
AuEq
2
(gpt)
LS-290
101.00
105.00
4.00
11.78
140.4
0.14
13.73
168.00
171.55
3.55
10.07
36.5
0.87
11.92
LS-231
324.00
327.05
3.05
0.97
64.9
0.77
3.01
Notes to Table:
1)
Intercepts are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2)
The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0123 + Cu (%) * 1.6000 and use the same metal
prices ($1,550/oz Au, $20/oz Ag, and $3.50/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the mineral resource
estimate for ELG Underground.
GEOLOGY OF THE ELG MINE COMPLEX
The ELG Mine Complex, located in the central part of the Guerrero Gold Belt in southwest Mexico, is
hosted in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene
granodiorite stocks, sills, dikes and afterwards uplifted close to surface by maar-diatreme complexes.
Skarn-hosted gold mineralization develops along contacts of the intrusive rocks and carbonate-rich
sedimentary rocks of the Cuautla and Morelos formations, as well as along the footwall contact of the
Mezcala Formation. At depth, the mineralization has a strong structural control related to the main stages
of deformation, with the collision of allochthonous terrain being responsible for the major north-south
faults, while the almost east-west faulting is associated with the beginning of a subduction process.
Gold mineralization at ELG occurs in spatial association with a skarn body that was developed along a
2-kilometre-long corridor following the northeast contact of the ELG granodiorite stock. The skarn zone
that occurs at the marble stratigraphic level of the Morelos Formation is in contact with hornfels
developed in the Mezcala Formation. At El Limón, skarn mineralization is also structurally controlled by
north-south and north-east trending faults. Early-stage deposition corresponds to skarn alteration and
mineralization at ELG and is fairly typical of calcic gold-skarn systems. Zones of coarse, massive,
garnet-dominant skarn appear within and along the stock margin, with fine-grained pyroxene-dominant
skarn more common at greater distances from the contact with the stock. Significant gold mineralization
at ELG is spatially associated with the skarn, preferentially occurring in pyroxene-rich exoskarn but also
hosted in garnet-rich endoskarn that has been affected by retrograde alteration, which suggests that the
most important gold event is late stage, strongly related to bismuth, and of epithermal origin.
Dykes and sills are found to crosscut the hornfels and marble, along the structural trends mentioned
above, and are spatially associated with the skarn formation. In some cases, these are the ore controls
of the main gold mineralization stage at depth.
The style of mineralization along the El Limón Deep, El Limón Sur, Sub-Sill, and El Limón West Trends
is characterized by gold, with locally high silver and copper grades. Given that gold precipitates due to
the buffer exerted by the early stage of calc-silicate alteration and sulfide mineralization, it is free and
generally dissociated from the previous copper event mainly related to chalcopyrite.
QA/QC AND QUALIFIED PERSON
Torex maintains an industry-standard analytical quality assurance and quality control (QA/QC) and data
verification program to monitor laboratory performance and ensure high-quality assays. Results from this
program confirm reliability of the assay results. All sampling and analytical work for the mine exploration
program is performed by SGS de Mexico S.A. de C.V. ("SGS") in Durango, and by SGS at Minera
Media Luna site facilities in Mexico. Gold analyses comprise fire assays with atomic absorption or
gravimetric finish. External check assays for QA/QC purposes are performed at ALS Chemex de
Mexico S.A. de C.V.
The analytical QA/QC program is currently overseen by Carlo Nasi, Chief Mine Geologist for Minera
Media Luna, S.A. de C.V.
Scientific and technical data contained in this news release has been reviewed and approved by
Carolina Milla, P.Eng. Ms. Milla is a member of the Association of Professional Engineers and
Geoscientists of Alberta (Member ID #168350), has experience relevant to the style of mineralization
under consideration, is a qualified person under NI 43-101, and is an employee of Torex. Ms. Milla has
verified the data disclosed, including sampling, analytical, and test data underlying the drill results;
verification included visually reviewing the drill holes in three dimensions, comparing the assay results to
the original assay certificates, reviewing the drilling database, and reviewing core photography
consistent with standard practice. Ms. Milla consents to the inclusion in this release of said data in the
form and context in which they appear.
Additional information on the ELG Underground, sampling and analyses, analytical labs, and methods
used for data verification is available in the Company's technical report entitled the "Morelos Property, NI
43-101 Technical Report, ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study,
Guerrero State, Mexico", dated effective March 16, 2022 filed on March 31, 2022 (the "2022 Technical
Report") and in the annual information form ("AIF") dated March 30, 2023, each filed on SEDAR+ at
www.sedarplus.ca
and the Company's website at
www.torexgold.com
.
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 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 asset is
the Morelos Complex, which includes the El Limón Guajes ("ELG") Mine Complex, the Media Luna
Project, a processing plant, and related infrastructure. Commercial production from the Morelos
Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was
released in March 2022. Torex's key strategic objectives are to optimize and extend production from the
ELG Mine Complex, de-risk and advance Media Luna to commercial production, build on ESG
excellence, and to grow through ongoing exploration across the entire Morelos Property.
FOR FURTHER INFORMATION, PLEASE CONTACT:
TOREX GOLD RESOURCES INC.
Jody Kuzenko
President and CEO
Direct: (647) 725-9982
Dan Rollins
Senior Vice President, Corporate Development & Investor Relations
Direct: (647) 260-1503
CAUTIONARY NOTES ON 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 also includes, but is not limited to, statements about: 2023 program builds on past success to prove the long-
term reserve and resource potential at ELG; the results of ongoing drilling program at ELG Underground continue to support the Company's strategy
to extend and optimize the mine life of ELG Underground and fill the mill beyond 2027; the investment in the Company's 2023 drilling program at ELG
Underground continued to build on the positive results achieved year on year to grow the overall mineral endowment at ELG and unlock the
significant cash generation potential of the Morelos asset; highly positive drill results, including an outstanding intercept of 11.75 grams per tonne
gold equivalent ("gpt AuEq") over nearly 23 metres ("m"), further support the potential to bring mineralization in this area into a mineral resource
estimate when the Company releases its year-end 2023 mineral reserve and resource update in March; additionally, drilling carried out in the latter
portion of 2023 extended higher-grade mineralization along the southern portion of the El Limón Sur Trend (29.88 gpt AuEq over 9.6 m) and further
bolstered the mineralized potential at the 400 m level (5.53 gpt AuEq over 3.7 m); at the El Limón West Trend, drilling continues to support the potential
for a new mining front, with mineralization open along strike and at depth; the 2023 drilling program has reinforced the Company's confidence in the
ability to continue to grow resources and extend the reserve life of ELG Underground, all with a goal of filling the mill with higher grade feed and
maintaining annual gold equivalent production of +450,000 ounces beyond 2027; the final results from the 2023 exploration and drilling program at
ELG Underground support potential reserve replacement and expansion of the mineralized footprint, indicating the potential to extend the life of the
ELG Underground beyond 2026; exploration teams have encountered untapped upside along the identified structural trends, many of which are in
close proximity to existing underground infrastructure, which will allow investments made to date to be leveraged; the high-grade mineralization of El
Limon Sur Trend drill hole LS-295 was encountered 30 m north of the previously reported high-grade intercept in drill hole LS-293
(20.74 gpt AuEq
over 4.6 m)
, indicating potential for a high-grade zone that is open along trend to the south; the findings from drilling targeting mineralization at the
junction of the El Limón Sur Trend and La Flaca fault indicate the potential to increase both Indicated and Inferred resources at year-end 2023; when
considered in conjunction with the other drilling results in this area, this mineralization may also be open at depth, to at least the 400 m elevation level,
which is the deepest the drilling has been conducted to date within the El Limón Sur Trend; step-out drilling to the south along the El Limón West
Trend encountered 13.73 gpt AuEq over 4.0 m and 11.92 gpt AuEq over 3.6 m in drill hole LS-290, expanding the mineralized footprint of the El Limón
Sur pit to the south and reinforcing the high-grade potential at depth in this area; the overall objective of the 2024 drill program continues to be the
replacement of reserves and expansion of resources, all with the aim of continuing to extend the life of ELG Underground; the results of drilling
along the El Limón Sur Trend in 2023, particularly where the Trend intersects La Flaca fault above the 600 m elevation level, have been successful,
with many intercepts exceeding 5.0 gpt AuEq with widths ranging from 3.0 m to 23.0 m, indicating the potential to add ounces to year-end 2023
mineral resources; of particular note, earlier results from the 2023 drilling program indicated the potential extension of this mineralized zone to a
depth of 400 m.; exploration at the southern known boundary of the El Limón Sur Trend also encountered high-grade mineralization, potentially
expanding resources to the south and indicating that this mineralization may be plunging to the southeast; infill drilling conducted along the northeast-
trending structural corridor known as the El Limón Deep Trend returned several notable intercepts, indicating the potential to upgrade Inferred
resources to the Indicated category with the year-end 2023 mineral resource update; mineralization remains open at depth and further work will be
conducted in 2024 to test the full extension of this Trend; south of the Z71 fault, the exploratory hole SST-325 encountered mineralization along the
southern extension of the Trend, indicating that the Trend remains open to the south; regarding El Limón West Trend, drilling in this area continues to
support the potential for a new mining front, with mineralization open along strike and at depth; results indicate that mineralization is trending north