TOREX GOLD REPORTS POSITIVE DRILLING RESULTS AT ELG UNDERGROUND Results highlight potential for ongoing reserve growth and a new mining front at Sub-Sill South
For Immediate Release
TOREX GOLD REPORTS POSITIVE DRILLING RESULTS
AT ELG UNDERGROUND
Results highlight potential for ongoing reserve growth and a new mining front at Sub-Sill South
TORONTO, Ontario, September 15, 2022 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG)
is pleased to report positive assay results from the Company’s ongoing drill program at the E l Limón Guajes
underground mine, including zones referred to as Sub -Sill and El Limón Deep (“ELD ”) (collectively the “ELG
Underground”). The latest drilling results support the Company’s strategic priority to optimize and extend the
mine life of ELG Underground beyond current reserves.
Jody Kuzenko, President & CEO of Torex, stated:
“ELG Underground has been a significant driver of Mineral Reserve and Resource growth over the last several
years, and the latest results from the ongoing drill campaign continue to validate our positive outlook . We are
excited about the long -term prospects of the ELG Underground given the potential to continue to grow higher
grade reserves and resources while steadily increasing mining rates toward a targe t of 2,000 t onnes per day.
The upside reserve potential of the ELG Underground also supports our plan to fill the mill beyond 2027, when,
on the current reserve case, Media Luna is expected to become the sole source of feed to the processing plant.
“At ELD, infill drilling successfully intersected high grade mineralization 110 metres (“m”) below the current
reserve envelope, which bodes well for reserve replacement and ongoing reserve growth. Key intersects include
16.96 grams per tonne gold (“g/t Au”) over a core length of 17.5 m , 16.87 g/t Au over 9.7 m, 10.39 g/t Au over
11.7 m, and 13.49 g/t Au over 5.5 m.
“Step-out and infill drilling at Sub-Sill South has also been positive with several impressive intersects, including
7.18 g/t Au over a core length of 21.3 m , 10.01 g/t Au over 9.7 m and 7.66 g/t Au over 8.9 m. Although further
drilling is required , results to date highlight the potential for Sub-Sill South to be developed into a new
underground mining front. Sub -Sill South is located 120 m south of the producing Sub -Sill deposit and 470 m
north of a zone of mineralization below the El Limón Sur open pit.
“Additionally, Portal #3 ramp development to the lower areas of ELD and Sub-Sill is now complete. Construction
of drill platforms are in progress, which will allow the Company to more effectively carry out infill and step -out
drilling at depth at both Sub-Sill and ELD. The completion of Portal #3 will also reduce underground haul
distances, which is expected to support further efficiencies and cost containment initiatives with in the ELG
Underground.”
Table 1: Key highlights from recent drilling at ELG Underground
Drill Hole1 Area Program From
(m)
To
(m)
Core
Length
(m)
Au
(g/t)
Ag
(g/t)
Cu
(%)
LDUG-185 ELD Infill 102.5 120.0 17.5 16.96 1.4 0.01
including 105.5 114.0 8.5 29.29 2.1 0.01
LDUG-211 ELD Infill 24.2 34.0 9.7 16.87 2.9 0.22
LDUG-183 ELD Infill 142.8 154.5 11.7 10.39 2.9 0.05
LDUG-196 ELD Infill 86.2 91.6 5.5 13.49 8.0 0.22
LDUG-197 ELD Step-out 183.0 191.2 8.2 8.52 23.4 1.69
LDUG-183 ELD Infill 65.0 70.0 5.0 10.37 10.5 0.51
LDUG-184 ELD Infill 87.0 99.5 12.5 5.48 3.6 0.15
SST-261 Sub-Sill South Step-out 227.8 249.1 21.3 7.18 26.4 0.77
SST-268 Sub-Sill South Step-out 221.1 230.9 9.7 10.01 10.9 0.30
SST-263 Sub-Sill South Step-out 234.1 243.0 8.9 7.66 5.6 0.12
SST-259 Sub-Sill Infill 213.3 225.4 12.1 7.65 5.6 0.40
SST-245 Sub-Sill Infill 319.0 324.1 5.1 9.72 4.9 0.15
Notes to Drill Results Highlights Table:
1) Intersections do not represent true thickness of mineralized zones
2) Core lengths subject to rounding
3) Interval lengths for holes dipping between -45 to -90º have been selected to represent a minimum mining height of 3.5 m
4) Interval lengths for holes dipping between 0 and -45º have been selected to represent a minimum horizontal length of 3.5 m
5) Torex is not aware of any drilling, sampling, recovery, or othe r factors that could materially affect the accuracy or reliability of the data
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Torex Gold Resources Inc.
Detailed assay results from the most recent drilling within the ELG Underground can be found in Table 2 (ELD),
Table 3 (Sub-Sill) and Table 4 (Sub-Sill South).
ELG UNDERGROUND – INFILL AND EXPANSION DRILL PROGRAMS
In 2022, the Company plans to drill 27,000 m within the ELG Underground through a mix of infill and step -out
drilling. Infill drilling is targeting to upgrade Inferred Resources within the Sub -Sill and ELD deposits.
Step-out drilling is targeting lateral and vertical extensions of both deposits as well as expanding other zones
such as Sub-Sill South. As of the end of June, assay results for 11,400 m of drilling ( 53 holes) specific to the
ELG Underground program have been received. These results include 6,220 m (28 holes) from the 2021 drilling
program, for which assay results were received post the cut -off date for year -end 2021 Mineral Reserve and
Resource estimates.
At ELD, drilling returned several high-grade intersects below the current reserve envelope while also testing
lateral extensions of the deposit. Drill results from ELD can be found in Figures 2 and 3 as well as Table 2.
The 2022 program targeting extensions of the Sub -Sill deposit commenced in July , with drilling activities
expected to ramp -up through the remainder of the year with the completion of Portal #3 , which will allow the
Company to more effectively target vertical extensions of both Sub-Sill and ELD, while continuing to upgrade
Inferred Resources to the Measured/Indicated categories. Drilling completed as part of the 2021 program (for
which assays were received post the reserve and resource cut -off date) can be found in Figure 4 and Table 3.
Given that drilling in this area recently commenced, only a portion of the assays from the 2022 drill program at
Sub-Sill are expected to be received prior to the cut-off date for the 2022 year-end reserve and resource update.
Drilling targeting Sub -Sill South (a zone of mineralization between Sub -Sill and El Limón Sur ) also returned
several high-grade intersects that, when combined with previous drilling, highlights the potential for a new mining
front within the ELG Underground. While further drilling is required to determine the extent of the mineralization,
if Sub-Sill South is developed , underground development required to access the zone could be leve raged to
access another potential mining front below the El Limón Sur open pit. Drill results from Sub -Sill South can be
found in Figure 5 and Table 4.
Drilling below the El Limón Sur open pit (part of the regional and near -mine program planned in 2022) is in
progress. Results from this drilling are expected to be released later this year.
ELG UNDERGROUND MINE – A SIGNIFICANT VALUE DRIVER
The ELG Underground has been a key value driver for Torex as reserves have been expanded and the mining
rate has steadily risen . Proven & Probable Reserve s for the ELG Underground w ere estimated at 494,000
ounces of gold ( 2.675 million tonnes at an average grade of 5.74 g/t gold) at the end of 2021 , representing a
20% increase year-over-year.
Since underground mining commenced in late 2017, the ELG Underground has produced approximately
288,000 ounces of gold through the end of 2021 (327,000 ounces mined prior to process plant recoveries at an
average gold grade of 7. 45 g/t). Cumulative gold mined , plus reserves as at year-end 2021, is more than 3 .5
times greater than the initial underground gold reserves of 183,000 ounces estimated as of December 31, 2017.
The ELG Underground is on track for another strong year of production in 202 2, with 43,000 ounces of gold
produced (50,000 ounces of gold mined prior to process recoveries at 5.98 g/t gold) in the first half of the year.
Over the last three calendar years, annual production from the ELG Underground has averaged approximately
85,000 ounces (97,000 ounces prior to process recoveries at an average gold grade of 7.36 g/t).
The strong start to the year has been supported by increased mining rates, including a quarterly record of 1,580
tonnes per day (“ tpd”) during Q2 2022. The Company sees the potential to increase mining rates in the ELG
Underground to 2,000 tpd, driven by the benefit of shorter haul distances with completion of Portal #3, the
potential to leverage long-hole stoping in portions of the deposit, and ongoing productivity improvements.
Based on the March 2022 Technical Report, estimated reserves within the ELG Underground were sufficient to
support mining to mid-2027. Assay results received to date support ongoing reserve and resource growth within
the ELG Underground, which is expected to result in a longer life of mine.
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Torex Gold Resources Inc.
MORELOS PROPERTY – 2022 EXPLORATION AND DRILLING PROGRAM
Torex expects to invest approximately $39M in drilling and exploration across the broader Morelos Property
(Figure 1) in 2022, including $5M of definition and grade control drilling within the current operations.
Figure 1: Broader Morelos Property – 2022 drill program primarily focused on Media Luna Cluster, ELG
Underground (part of ELG Complex) as well as near-mine and regional targets
The Company’s exploration and drill program is primarily focused on upgrading and expanding Mineral
Resources at Media Luna and EPO as well as continued expansion of the ELG Underground.
• Media Luna: Approximately $19M is budgeted for infill and step -out drilling at Media Luna as well as
an initial infill drill program at the adjacent EPO deposit. A total of 64,000 m of drilling is budgeted at
Media Luna. Costs of the program are being classified as non-sustaining capital expenditures.
• ELG Underground: Approximately $6M is budgeted for infill and step -out drilling within the ELG
Underground. Drilling targeting deeper extensions of the Sub-Sill and ELD deposits commenced in July.
Drilling activity is expected to increase with the completion of Portal #3. A total of 27,000 m of drilling is
budgeted for the ELG Underground in 2022. Infill and step -out program costs are being classified as
capital expenditures and are included in the sustainin g capital expenditure and all -in sustaining cost
guidance for ELG.
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Torex Gold Resources Inc.
• Near Mine and Regional: Approximately $9M is budgeted to conduct exploration across the broader
land package, including drilling of near mine targets totaling 28,500 m of drilling (including 15,000 m for
the underground potential below the El Limón Sur open pit) as well as regional exploration north and
south of the Balsas River (6,000 m of drilling). The program expenditures are being classified as
exploration expenses.
• Definition and Grade Control: Approximately $5M is budgeted for ore control and definition drilling in
the ELG Open Pit and Underground. The costs associated with these programs are included in mining
operating expenses and, therefore, reflected in total cash cost and all-in sustaining cost guidance.
ELG UNDERGROUND GEOLOGY
The ELD and Sub -Sill deposits are distinct portions of the larger El Limón Guajes (“ELG”) mineralized skarn
system. The two deposits occur in different locations relative to a granodiorite sill prevalent in the deposit area
and are approximately 300 m apart.
The ELG mining 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, and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the
enclosing carbonate-rich sedimentary rocks of the Cuautla and Morelos formations as well as along the footwall
contact of the Mezcala Formation.
ELD represents the down -dip extension of the skarn that hosts the gold mineralization at El Limón open pit,
where the skarn is developed immediately above a large granodiorite sill intruded along the contact of the
Cuautla and the Mezcala formations. The mineralized skarn forms a single and continuous package that strikes
approximately 25° to the north-northeast and dips between 20° and 40° to the northwest. To the northwest, the
strike of the skarn package changes to approximately 30° to the north -northwest and the dip steepens to
approximately 60°. The change in the geometry of the skarn package is interpreted to be related to the northeast
striking and southeast dipping La Flaca Fault; parallel structures are locally represented by post mineral dykes.
Mineralization in the Sub -Sill are a formed along contacts between marbles of the Morelos formation and
granodiorite sills, which is interpreted as late -stage porphyritic intrusions that branch off the main body of
granodiorite. The best developed skarn zones at the Sub -Sill area strikes approximately 40° northeast and dip
between 35° and 45° to the northwest. Deep drilling has identified a steeply dipping, 65° to 75° northwest,
extension of the Sub -Sill skarn zone with high grade mineralization. This zone is currently interpreted as the
structurally controlled feeder of the mineralization that developed along the lithological contacts between the
hornfels, the marbles, and the sills. The skarn zone hosts multiple horizons with high-grade gold mineralization
that vary in strike length from 50 m up to 240 m, with apparent widths varying from 2 m to 46 m. The trend of
the overall skarn body in the Sub-Sill area is north-south to northeast-southwest.
In Sub-Sill South, the mineralization is hosted in a skarn zone developed in the top and along the flanks of a
vertical body of marble surrounded by granodiorite, underlying ELD. The skarn strikes approximately 10°
northwest and dips between vertical and 7 0° west, following the contact of the marble and the intrusive. The
skarn zone is well developed in the upper part of the marble block, where it reaches thicknesses that exceed
55 metres and horizontal widths up to 70 meters. Information is still lacking t o better understand the geometry
of this skarn zone and its continuity at depth.
The style of mineralization at Sub-Sill South is like Sub -Sill and ELD, and is characterized by gold, which is
strongly associated with bismuth and variable amounts of silver and copper. Gold occurs in variably sulfidized,
pyrrhotite-rich skarn, while silver and copper mineralization is controlled primarily by the degree of sulfidation of
the host skarn. Mineralization is associated with retrograde alteration characteri zed by the occurrence of
phlogopite, amphibole, chlorite, calcite and lesser amounts of quartz and epidote, and local magnetite.
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
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Torex Gold Resources Inc.
facilities, Mexico. Gold analyses comprise fire assays with atomic absorption or gravime tric 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.
The 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 N I-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 ; v erification included visually reviewing the
drillholes 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 Sub-Sill and ELD deposits, sampling and analyses, analytical labs, and methods
used for data verific ation 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 “Technical Report”) on SEDAR at
www.sedar.com 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 Mex ico City. The Company’s principal asset is the Morelos
Complex, which includes the El Limón Guajes (“ELG”) Mining 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 extend and optimize production from the ELG Mining Complex, de -risk and advance Media
Luna to commercial production, bui ld 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 Dan Rollins
President and CEO Senior Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982 Direct: (647) 260-1503
[email protected] [email protected]
ADDITIONAL INFORMATION ON ELG UNDERGROUND RESERVE ESTIMATES
As at December 31, 2021, Proven Reserves for the ELG Underground were estimated at 0.11 million tonnes at an average grade of 7.23
g/t gold and Probable Reserves for the ELG Underground were estimated at 2.566 million tonnes at an average grade of 5.68 g/t gold.
Additional information on the ELG Underground Mineral Reserve and Resource estimates is set out in the Technical Report.
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: potential for
ongoing reserve growth and a new mining front at Sub -Sill South; latest results from the ongoing drill campaign continue to validate
the Company’s positive outlook about the ELG Underground’s Mineral Reserve and Resource growth; the long -term prospects of the
ELG Underground, given the potential to continue to grow higher grade reserves and resources while steadily increasing mining rates
toward a target of 2,000 tonnes per day; the upside reserve potential of the ELG Underground supporting the Company’s plan to fill
the mill beyond 2027; expectation that Media Luna will become the sole source of feed to the processing plant beyond 2027 based on
the current mineral reserve estimate; the drilling results at ELD bodes well for reserve replacement and ongoing reserve growth; results
to date of the step -out drilling at Sub-Sill highlight the potential for this zone to be developed into a new underground mining front;
construction of drill platforms will allow the Company to more effectively carry out infill and step-out drilling at depth, at both Sub-Sill
and ELD and reduce underground haul distances, which is expected to support further efficiencies and cost containment initiatives
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Torex Gold Resources Inc.
within the ELG Underground; planned drill programs, timelines, budgets and objectives/targets for 2022 , including upgrading of
mineral resources; the potential for a new mining front, Sub -Sill South, within the ELG Underground; if Sub -Sill South is developed,
underground development required to access the zone could be leveraged to access another potential mining front below the El Limón
Sur open pit; the ELG Underground is on track for another strong year of production in 2022; the potential to increase mining rates in
the ELG Undergro und to 2,000 tpd, driven by the benefit of shorter haul distances with completion of Portal #3, the potential to
leverage long-hole stoping in portions of the deposit, and ongoing productivity improvements; based on the March 2022 Technical
Report, estimated reserves within the ELG Underground were sufficient to support mining to mid-2027; assay results received to date
support ongoing reserve and resource growth within the ELG Underground, which is expected to result in a longer overall life of mine;
and the Company’s key strategic objectives to extend and optimize production from the ELG Mining Complex, de -risk and advance
Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire More los
Property. Generally, forward -looking information can be identified by the use of forward -looking terminology such as “strategy”,
“focus”, “budget”, “continue”, “potential” , “ongoing” or variations of such words and phrases or statements that certain ac tions,
events or results “will”, or “is expected to" occur. 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, risks and uncertainties
associated with: the ability to upgrade mineral resources categories of mineral resources with greater confidence levels or to mineral
reserves; the ability to replace mineral reserves that have been mined; risks associated with mineral reserve and mineral resource
estimation; uncertainty involving skarns deposits; the ability of the Company to obtain additional permits for the Media Luna Project;
the ability of the Company to successfully construct and operate in an economically viable manner as projected in the Media L una
Feasibility Study; the ability of the Company to fully fund the Media Luna Project to p roduction; the ability of the Company’s mining
and exploration operations to operate as intended due to shortage of skilled employees or shortages in supply chains; and tho se risk
factors identified in the Technical Report and the Company’s annual informat ion form and management’s discussion and analysis or
other unknown but potentially significant impacts. Forward-looking information is 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 a nd
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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Torex Gold Resources Inc.
Figure 2: Infill and step-out drilling at ELD (Section A-A’)
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Torex Gold Resources Inc.
Figure 3: Infill and step-out drilling to the north of ELD (B-B’)