Torex Gold Reports Positive Results from the 2024 ELG Underground Drilling Program Results indicate strong potential to further expand resources and continue to extend mine life
Torex Gold Reports Positive Results from the
2024 ELG Underground Drilling Program
Results indicate strong potential to further expand resources
and continue to extend mine life
(All amounts expressed in U.S. dollars unless otherwise stated)
Toronto, Ontario--(Newsfile Corp. - June 27, 2024) - Torex Gold Resources Inc. (the "Company" or
"Torex") (TSX: TXG) announces assay results from the Company's ongoing drilling program at El Limón
Guajes ("ELG") Underground. The results to date support Torex's target of extending the mine life of
ELG Underground beyond 2028 by identifying new zones of higher-grade mineralization, expanding
resources, and increasing reserves.
Jody Kuzenko, President & CEO of Torex, stated:
"Building off the success of the 2023 drilling program, which resulted in a two-year mine life extension,
drilling at ELG Underground continues to deliver results that bolster our ability to continue to replace
mined reserves. This, combined with the potential for EPO to come into the mine plan, supports our
strategy of maintaining annual gold equivalent production above 450,000 ounces through 2033. A
number of the newly reported drill holes confirm mineralization beyond the boundary of known resources
- to the south and at depth at the El Limón Sur Trend, to the west along the El Limón Deep Trend, and to
the north along the Sub-Sill Trend. This further demonstrates that the true mineralization potential of this
orebody is yet to be fully realized. We continue to see ELG Underground as a deposit that year-over-
year can consistently deliver resource growth and reserve replacement, which is expected to result in
significant cash flow generation that will support the growth of Torex across the Morelos Property and
beyond."
HIGHLIGHTS
Initial results from the 2024 drilling program at ELG Underground continued to build off the success of the
programs from prior years, demonstrating the potential to grow mineral resources, extend high-grade
mineralization, and support extending the reserve life of ELG Underground beyond 2028.
El Limón Sur Trend
Drill hole LS-310 of the Advanced Exploration program in the southern ore shoot returned an
intercept of
7.19 grams per tonne gold equivalent ("gpt AuEq") over 12.2 meters ("m")
approximately 100 m below the high-grade intercepts reported in 2023. This indicates that
mineralization at the El Limón Sur Trend may extend both to the south and at depth.
Drilling as part of the Resource Delineation program in the northern ore shoot has returned high-
grade intercepts, confirming the potential to extend Inferred Resources along the 500 m above sea
level ("m.a.s.l.") level. Drill hole LDUG-321 delivered two noteworthy intercepts of
10.70 gpt AuEq
over 3.1 m
and
3.42 gpt AuEq over 3.0 m
.
El Limón Deep Trend
As part of the Advanced Exploration program, five out of six holes drilled to test the western
extension of the El Limón Deep Trend encountered high-grade mineralization. Most notably,
LDUG-315 returned two high-grade intercepts of
14.29 gpt AuEq over 5.4 m
and
11.16 gpt
AuEq over 15.3 m, including 20.72 gpt over 4.0 m
.
Sub-Sill Trend
The first hole from the Resource Delineation program at the Sub-Sill Trend that was drilled 50 m to
the north of the southern ore shoot confirms the continuity of high-grade mineralization. Drill hole
LDUG-317 returned notable intercepts of
11.82 gpt AuEq over 5.0 m
and
19.85 gpt AuEq over
8.5 m
.
2024 ELG UNDERGROUND DRILLING & EXPLORATION PROGRAM
The 2024 ELG Underground drilling program is aligned with the broader Exploration Strategy the
Company published earlier in June ("Torex Gold outlines multi-year exploration strategy"), with the
program focused on Reserve Definition, Resource Delineation, and Advanced Exploration, targeting
extensions of high-grade mineralization along the El Limón Sur, El Limón Deep, El Limón West, and
Sub-Sill trends (Figure 1).
Figure 1: Plan view of ELG Underground. The 2024 program to date has been focused on testing
mineralization extensions beyond the boundaries of known resources.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1863/214676_2c286c5f4425fbf9_001full.jpg
Torex has budgeted $12 million towards drilling and exploration for ELG Underground in 2024. As of the
end of April, approximately 8,709 m across 27 holes were drilled as part of the ELG Underground 2024
drilling program.
Detailed drill results are reported in Table 4 (El Limón Sur Trend), Table 5 (El Limón Deep Trend) and
Table 6 (Sub-Sill Trend).
Drill hole intercepts are core lengths and not true widths. AuEq grades use the same metal prices
($1,650/oz gold ("Au"), $22/oz silver ("Ag"), and $3.75/lb copper ("Cu")) and metallurgical recoveries
(90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral resource estimate for ELG
Underground (AuEq (gpt) = Au (gpt) + Ag (gpt) * 0.0127 + Cu (%) * 1.6104).
EL LIMÓN SUR TREND (FIGURE 2)
Drilling along the El Limón Sur Trend has been focused on resource categorization within the northern
ore shoot, confirming the continuity of high-grade mineralization at depth along the southern ore shoot,
and potential mineralization at the intersection of this mineralized corridor and the Z71 fault.
As part of the Resource Delineation drilling program at the north ore shoot, drill hole LDUG-314
encountered 10.26 gpt AuEq over 7.68 m, supporting the expected conversion of Inferred Resources to
the Indicated category with the year-end 2024 mineral reserve and resource update. Drill hole LDUG-
321 confirmed high-grade mineralization down to 500 m.a.s.l. with two notable intercepts (10.70 gpt
AuEq over 3.1 m and 3.42 gpt AuEq over 3.0 m).
The first hole (LS-310) drilled as part of the Advanced Exploration program at the southern ore shoot
encountered 7.19 gpt AuEq over 12.2 m more than 100 m below the high-grade intercepts of LS-293
and LS-295 reported in 2023. This result indicates the potential to extend mineralization to the south and
at depth.
The continuity of the mineralization between the north and south ore shoots at the intersection of the El
Limón Sur Trend and Z71 fault was tested, with five holes returning no significant results.
Drilling through the rest of the year will continue to explore the north ore shoot, focused on resource
categorization and testing the mineralization continuity supported by LDUG-321 along the 500 m.a.s.l.
level. Drilling at the southern ore shoot has been paused until Q4 2024, at which time additional
underground development is expected to provide better optionality for exploration drilling.
Table 1: Recent highlights from the 2024 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)
LDUG-314
94.47
102.15
7.68
9.61
11.8
0.31
10.26
LDUG-321
560.09
563.21
3.12
5.89
51.2
2.58
10.70
595.30
598.32
3.02
2.91
9.0
0.24
3.42
LDUG-322
91.73
107.44
15.71
2.30
60.7
2.16
6.56
LS-310
347.70
359.85
12.15
2.81
56.1
2.28
7.19
LS-311
276.45
294.40
17.95
7.42
1.5
0.07
7.55
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) * 0.0127 + Cu (%) * 1.6104 and use the same metal
prices ($1,650/oz Au, $22/oz Ag, and $3.75/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral
resource estimate for ELG Underground.
EL LIMÓN DEEP TREND (FIGURE 3)
Advanced exploration drilling to date this year at the El Limón Deep Trend has been focused on the
western extension of the intersection of El Limón Deep and El Limón Sur mineralized corridors. Results
for the first six drill holes returned multiple mineralized intercepts that confirm high-grade, southwest-
plunging mineralization.
Current results over 600 m.a.s.l. show strong support for new Inferred Resources in this area once the
program is completed. Intercepts at depth showed lower-grade mineralization that was slightly above
cut-off grade. Given these results, exploration to further test depth extensions has been deferred for the
time being to prioritize higher-grade targets. Drilling for the remainder of this year will focus on the
conversion of Inferred Resources to the Indicated category and testing the intersection of the El Limón
Deep and Sub-Sill trends.
Table 2: Recent highlights from the 2024 drilling 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-315
242.49
247.92
5.43
12.02
24.3
1.22
14.29
264.43
279.68
15.25
6.74
33.7
2.48
11.16
Including
270.75
274.76
4.01
10.44
79.6
5.75
20.72
LDUG-316
213.08
217.27
4.19
3.01
4.0
0.27
3.49
232.00
235.80
3.80
4.76
6.0
0.36
5.43
LDUG-324
457.00
460.00
3.00
1.46
8.3
0.74
2.76
535.50
538.39
2.89
4.48
4.9
0.06
4.64
LDUG-326
463.72
469.00
5.28
5.67
9.1
0.19
6.09
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) * 0.0127 + Cu (%) * 1.6104 and use the same metal
prices ($1,650/oz Au, $22/oz Ag, and $3.75/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral
resource estimate for ELG Underground.
SUB-SILL TREND (FIGURE 4)
Resource Delineation work is being undertaken along the Sub-Sill Trend, with step-out drilling focused
around current Inferred and Indicated Resources. Drilling 50 m to the north of the main ore shoot
confirms the continuity of high-grade mineralization in this direction, with drill hole LDUG-317
encountering 11.82 gpt AuEq over 5.0 meters and 19.85 gpt AuEq over 8.5 meters.
During the first half of 2024, drilling activities focused on the reclassification of Inferred Resources to the
Indicated category at the main ore shoot. As part of the Advanced Exploration program, several holes
are planned to be drilled later this year from Portal 3 to further test the northern extension of the Sub-Sill
Trend.
Table 3: Recent highlights from the 2024 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-317
25.00
30.00
5.00
11.75
3.1
0.02
11.82
43.36
51.88
8.52
19.79
1.6
0.03
19.85
LDUG-321
34.79
37.88
3.09
4.04
6.0
0.22
4.47
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) * 0.0127 + Cu (%) * 1.6104 and use the same metal
prices ($1,650/oz Au, $22/oz Ag, and $3.75/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral
resource estimate for ELG Underground.
EL LIMÓN GUAJES MINE COMPLEX GEOLOGY
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, and dikes, and the uplifting of the block 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 the 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 are 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 strongly related to bismuth, late stage, and of epithermal origin.
Dikes 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 control of
main gold mineralization stage at depth.
The style of mineralization at 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 Dr.
Volker Moeller, Ph.D., P.Geo. (ON), a qualified person (a "QP") as such term is defined in NI 43-101. Dr.
Moeller is a Senior Resource Geologist employed by SLR Consulting (Canada) Ltd. and is independent
of Torex. Dr. Volker 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. Dr. Volker 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: integrate and optimize the Morelos
Property; deliver Media Luna to full production; grow reserves and resources; disciplined growth and
capital allocation; retain and attract best industry talent; and build on ESG excellence.
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: the results to date support Torex's target of extending the mine life of
ELG Underground beyond 2028 by identifying new zones of higher-grade mineralization, expanding
resources, and increasing reserves; drilling at ELG Underground continues to deliver results that bolster
our ability to continue to replace mined reserves; combined with the potential for EPO to come into the
mine plan, this supports the Company's strategy of maintaining annual gold equivalent production above
450,000 ounces through 2033;
this further demonstrates that the true mineralization potential of this
orebody is yet to be fully realized; the Company continues to see ELG Underground as a deposit that
year-over-year can consistently deliver resource growth and reserve replacement, which is expected to
result in significant cash flow generation that will support the growth of Torex across the Morelos Property
and beyond; the potential to grow mineral resources, extend high-grade mineralization, and support
extending the reserve life of ELG Underground beyond 2028; the results of drill hole LS-310 of the
Advanced Exploration program indicates that mineralization at the El Limón Sur Trend may extend both
to the south and at depth; drilling as part of the Resource Delineation program in the northern ore shoot
has returned economic grades, confirming the potential to extend Inferred Resources along the 500 m
above sea level ("m.a.s.l.") level; the potential mineralization at the intersection of the El Limón Sur Trend
mineralized corridor and the Z71 fault; drill hole LDUG-314 results supporting the expected conversion of
Inferred Resources to the Indicated category with the year-end 2024 mineral reserve and resource
update; the first hole (LS-310) drilled as part of the Advanced Exploration program result indicates the
potential to extend mineralization to the south and at depth; and 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. Generally, forward-looking information can be identified by the use of forward-
looking terminology such as "objective", "strategy", "target", "continue", "potential", "focus",
"demonstrate", "aim" or variations of such words and phrases or statements that certain actions, events
or results "will", "would", 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; risks associated with mineral reserve and mineral resource estimation;
uncertainty involving skarn deposits; and those risk factors identified in the Technical Report and the
Company's annual information 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 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 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. The Technical Report, AIF and MD&A are filed on SEDAR+ at
www.sedarplus.ca
and the Company's website at
www.torexgold.com
.
Figure 2: At the El Limón Sur Trend, drilling in the southern ore shoot indicates the deposit may be open
to the south and at depth. Drilling in the northern ore shoot returned high-grade intercepts, confirming the
potential to extend Inferred Resources along the 500 m.a.s.l. level.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1863/214676_2c286c5f4425fbf9_002full.jpg
Figure 3: Drilling to test the western extension of the El Limón Deep Trend encountered high-grade
mineralization. Current results indicate strong support for the addition of Inferred Resources in this area
with the year-end mineral reserve and resource update.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1863/214676_2c286c5f4425fbf9_003full.jpg
Figure 4: At the Sub-Sill Trend, drilling 50 m to the north of the southern ore shoot confirms the continuity
of high-grade mineralization.