TOREX GOLD REPORTS RESULTS OF EXPANSION DRILLING WITHIN MEDIA LUNA CLUSTER Drilling Expands Footprint of EPO Deposit; Potential new Zone of Mineralization Identified
For Immediate Release
TOREX GOLD REPORTS RESULTS OF EXPANSION DRILLING WITHIN
MEDIA LUNA CLUSTER
Drilling Expands Footprint of EPO Deposit; Potential new Zone of Mineralization Identified
TORONTO, Ontario, July 7 , 202 2 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) is
pleased to announce results from resource expansion and exploratory drilling completed in the broader Media
Luna area (“Cluster”), which extended mineralization to the south and west of the EPO deposit and identified a
potential new zone of mineralization (EPO South Extension) , located between the Media Luna deposit and the
Media Luna West target.
Jody Kuzenko, President & CEO stated:
“A key pillar of the Torex strategy is a renewed focus on drilling and exploration, and our latest drilling results at
the Media Luna Cluster reinforce our positive outlook on our ability to complement future production at Media
Luna. With the construction of the project well underway, we are stepping out beyond the existing mine resource
footprint on the south side of the Balsas River , testing extensions of the Media Luna and EPO deposits,
conducting initial drilling at previously identified targets, and identifying new exploration targets – all with the aim
of demonstrating the underlying resource potential of the Morelos Property.
“Drilling within the EPO South target has extended the mineralized footprint of the EPO deposit by approximately
250 metres (“m”) to the south and approximately 150 m to the west, which bodes well for future resource growth
at EPO. As detailed in Table 1, notable intersects include 9.7 m grading 11.44 grams per tonne gold equivalent
(“g/t AuEq”) at 8.51 g/t gold (“Au”) , 33.44 g/t silver (“Ag”) and 1.57% copper (“Cu”) ; 17.3 m grading 7.29 g/t
AuEq at 4.18 g/t Au, 25.15 g/t Ag and 1.74% Cu; and 35.6 m grading 4.10 g/t AuEq at 2.05 g/t Au, 30.33 g/t Ag
and 1.05% Cu.
“In 2021, the Company completed a high-resolution magnetic geophysical survey over a portion of the property
covering the Media Luna Cluster. The survey was reduced and merged with the existing broader -scale low-
resolution airborne magnetic survey and known geology to yield anomalies of interest. One anomaly, the EPO
South Extension, was the focus of a small follow-up drill program that validated the utility of the survey, with four
of the six holes drilled within the newly identified target intersecting mineralization, including an impressive 16.5
m grading 9.63 g/t AuEq at 8.70 g/t Au, 4.27 g/t Ag and 0.54% Cu as well as 6.3 m grading 5.48 g/t AuE q at
4.00 g/t Au, 19.44 g/t Ag and 0.78% Cu.
“Overall, this drilling, in conjunction with additional drilling both north and south of the Balsas River, enhances
our confidence in bolstering the economics of the Morelos Complex beyond the levels outlined in the recent
Technical Report."
Table 1: Highlights from 2022 drilling at EPO South and EPO South Extension targets
Drill Hole1 Target From
(m)
To
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Cu
(%)
AuEq
(g/t)
ML22-765 EPO South 670.26 680.00 9.73 8.51 33.44 1.57 11.44
ML22-769A EPO South
650.68 668.00 17.25 4.18 25.15 1.74 7.29
Including 3.02 10.85 28.37 2.09 14.56
including 3.48 4.40 42.82 3.37 10.34
ML22-763A EPO South
637.80 673.57 35.63 2.05 30.33 1.05 4.10
including 8.97 5.78 11.53 0.41 6.57
including 4.02 0.77 154.05 4.65 10.07
ML21-756 EPO South Ext. 537.37 556.03 16.48 8.70 4.27 0.54 9.63
including 2.38 56.50 8.18 0.75 57.81
ML21-753 EPO South Ext. 836.00 847.00 6.31 4.00 19.44 0.78 5.48
including 2.29 10.13 35.40 1.20 12.48
ML21-759 EPO South Ext. 733.89 741.35 5.10 2.79 8.60 0.27 3.34
including 3.41 3.82 11.37 0.38 4.57
Notes to Drill Results Highlights Table:
1) Intersections are reported as true thickness, based on current geological understanding of the mineralization.
2) The gold equivalent grade calculation used is as follows: AuEq (g/t) = Au (g/t) + Ag (g/t) * 0.011385 + Cu (%) * 1.621237 and use the same metal prices
($1,550/oz gold, $20/oz silver, and $3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the Mineral Resource
estimate for the EPO deposit.
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Torex Gold Resources Inc.
Details of the assay results from expansion drilling at EPO South and scout drilling at EPO South Extension can
be found in Table 2 of this release.
The gold equivalent grade calculation accounts for the same metal prices ($1,550/oz gold, $20/oz silver, and
$3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the current
Mineral Resource estimate for the EPO deposit, set out in the Technical Report.
EPO – INFILL AND EXPANSION DRILL PROGRAMS
In 2022, the Company is targeting 64,000 m of drilling within the Media Luna Cluster, of which 28,000 m is
focused in and around the EPO deposit. Approximately half the metres to be drilled at EPO are targeting to
upgrade Inferred Mineral Resources to the Indicated category (infill program) with the remainder foc used on
growing the overall size of the resource envelope (expansion program).
Results from the first seven holes (approximately 4,800 m including one hole completed in 2021 ) of the
expansion program have been positive , with drilling within the EPO South target extending the mineralized
footprint of the EPO deposit 250 m to the south (ML22-778A) and 150 m to the west (ML22-773).
Figure 1: Media Luna Cluster – Key drill results from EPO expansion program and results of scout drilling
testing the recently identified EPO South Extension target
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Torex Gold Resources Inc.
EXPANDING THE MEDIA LUNA CLUSTER – 2021 SCOUT DRILL PROGRAM
Over the last several years, Torex has carried out early-stage exploration activities across the broader Morelos
Property. As part of these efforts, the Company completed a high -resolution geophysical survey (drone
magnetic and electromagnetic survey withi n 50 meters line spacing ) across the Morelos Property , which
provided greater scale and coverage as well as improved resolution. The survey was reduced and merged with
the existing broader -scale low-resolution airborne magnetic survey and known geology to yield anomalies of
interest.
One anomaly identified by the high-resolution magnetic survey, EPO South Extension, was the focus of a small
follow-up drill program . This program validated the utility of the survey with four of the six holes drilled
intersecting mineralization. The discovery of EPO South Extension is particularly encouraging given the target
zone is in an area that was thought to be unmineralized, opening the possibility for similar discoveries across
the broader Morelos Property.
Given the improved visibility and information provided by the high-resolution magnetic survey, the Company
has decided to expand the survey across other areas of the Morelos Property to identify new potential targets
and prioritize future drilling.
MORELOS PROPERTY – 2022 EXPLORATION AND DRILLING PROGRAM
Torex expects to invest approximately $3 9M in drilling and exploration across the broader Morelos Property
(Figure 2) in 2022, including $5M of definition and grade control drilling within the current operations.
Figure 2 : Broader Morelos Property – 2022 drill program primarily focused on Media Luna Cluster, ELG
Underground, as well as near-mine and regional targets
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Torex Gold Resources Inc.
The Company’s exploration and drill program is primarily focused around 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 $6 M is budgeted for infill and step -out drilling within the ELG
Underground. Drilling targeting deeper extensions of the Sub -Sill and ELD deposits is expected to
commence in H2, with the completion of Portal #3. A total of 28,000 m of drilling is budgeted for the
ELG Underground in 2022. Program costs are being classified as capital expenditures and are included
in the sustaining capital expenditure and all-in sustaining cost guidance for ELG.
• Near Mine and Regional: Approximately $9M is budgeted to conduct exploration across the broader
land package, including drilling of near mine targets (28,500 m of drilling) 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.
MEDIA LUNA REGIONAL GEOLOGY
The Media Luna deposit is hosted within the Mesozoic carbonate -rich Morelos Platform, which has been
intruded by Paleocene stocks, sills, and dykes of granodioritic to tonalitic composition. Skarn-hosted gold-silver-
copper mineralization is developed within the sedimentary rocks along the contacts of intrusive rocks as well as
within altered dykes of the skarn envelope. The main portion of this mineralized package dips to the southwest
at approximately 30°; in the lowest part of the known mineralization, the dip steepens to approximately 60°,
while the northernmost portion of the deposit dips to the north, resulting i n a broad antiform al geometry of the
deposit.
Mineralization at Media Luna is hosted in skarn that developed at the contact of the intrusive granodiorite and
overlying sedimentary rocks . The skarn is characterized by a mineral assemblage of pyroxene, garnet, and
magnetite. Metal deposition and sulfidation occurred during retrograde alteration and is associated with a
mineral assemblage comprising amphibole, phlogopite, chlorite, and calcite ± quartz ± epidote as well as
variable amounts of ma gnetite and sulfides, primarily pyrrhotite. Additional mineralization is associated with
skarn developed within and along dykes and sills above the main granodiorite intrusion
Additional information on the Media Luna deposit, the Media Luna Feasibility Study and the analytical and
sampling process 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, 20 22 filed on March 31, 2022 (the “Technical Report”) on SEDAR at
www.sedar.com and the Company’s website at www.torexgold.com.
QUALITY ASSURANCE / QUALITY CONTROL
At the Company’s Morelos Property (see description above), all the Media Luna project drill core is logged and
sampled at the core facility within the project camp under the supervision of Nicolas Landon, Chief Exploration
Geologist for the Media Luna Project. A geologist marks the individual samples for analysis and sample
intervals, sample numbers, standards and blanks are entered into the database . The core is cut in half
lengthwise using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into
a plastic sample bag and sealed with zip ties in preparation for shipment. The other half of the core is returned
to the core box and retained for future reference in the Company cor e shack with the assay pulps and coarse
rejects. The core samples are picked up at the project camp and delivered to Bureau Veritas (“BV”) to conduct
all the analytical work.
Sample preparation is carried out by BV at its facilities in Durango, Mexico and consists of crushing a 1 kg
sample to >70% passing 2 mm followed by pulverisation of 500 g to >85% passing 75 μm. Gold is analyzed at
the BV facilities in Hermosillo, Mexico following internal analytical protocols (FA430) and comprises a 30g fi re
assay with an atomic absorption finish. Samples yielding results >10 g/t Au are re-assayed by fire assay with
gravimetric finish (FA530 -Au). Copper and silver analyses are completed at the BV facilities in Vancouver,
Canada as part of a multi -element ge ochemical analysis by an aqua regia digestion with detection by ICP -
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Torex Gold Resources Inc.
ES/MS using BV internal analytical protocol AQ270 . Overlimits for the multi-element package are analyzed by
internal protocol AQ374. BV is independent of the Company an d its Vancouver and Hermosillo facilities are
ISO-17025 accredited.
Torex has a sampling and analytical Quality Assurance/Quality Control (“QA/QC”) program in place that has
been approved by BV and is overseen by Nicolas Landon, Chief Exploration Geologis t for the Media Luna
Project. The program includes 5% each of Certified Reference Materials and Blanks; blind duplicates are not
included, but Torex evaluates the results of internal BV laboratory duplicates . Torex uses an independent
laboratory to check selected assay samples and reference materials and has retained a consultant to audit the
QAQC data for every drill campaign at Media Luna. The QA/QC procedure is described in more detail in the
Technical Report filed on SEDAR.
QUALIFIED PERSONS
The scientific and technical data contained in this news release pertaining to the Media Luna exploration
program have been reviewed and approved by John Makin, MAIG. Mr. Makin is a member of the Australian
Institute of Geoscientists (#7313), has experience relevant to the style of mineralization under consideration,
and is a Consultant Geologist employed by SLR (Canada) Consulting Ltd. Mr. Makin has verified the data
disclosed, including sampling, analytical, and test data underlying the drill results. Verification included visually
reviewing the drillholes in three dimensions, comparing the composited grades against the assay results,
comparing the assay results to the original assay certificates, and reviewing core photography for each intercept.
Mr. Makin consents to the inclusion in this release of said data in the form and context in which they appear.
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 th e El Limón Guajes (“ELG”) Mining Complex, Media Luna Project, 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 Mar ch 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, 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 Dan Rollins
President and CEO Senior Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982 Direct: (647) 260-1503
[email protected] [email protected]
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 potential new zone of
mineralization (EPO South Extension); overall, the drilling reported in the news release, in conjunction with additional drilling both north and
south of the Balsas River, enhancing the Company’s confidence in bolstering the economics of the Morelos Complex beyond the levels
outlined in the recent Technical Report; the Company’s 2022 target of 64,000 m of drilling within the Media Luna Cluster, of which 28,000
m is focused in and around the EPO deposit; approximately half the metres to be drilled at EPO are targeti ng to upgrade Inferred Mineral
Resources to the Indicated category (infill program) with the remainder focused on growing the overall size of the resource e nvelope
(expansion program); the primary focus of exploration and drill program around upgrading and expanding Mineral Resources at Media Luna
and EPO as well as continued expansion of the ELG Underground; the discovery of EPO South Extension opening up the possibilit y for
similar discoveries across the broader Morelos Property; budgets and planned metres for drilling programs; 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 acr oss the entire Morelos Property. Generally, forward -looking
information can be identified by the use of forward -looking terminology such as “strategy”, “focus”, “budget”, “continue”, “potential” or
variations of such words and phrases or statements that certain actions, 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 o f 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
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Torex Gold Resources Inc.
mineral resources with gr eater confidence levels or to mineral reserves; 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 Luna Feasibility
Study; the ability of the Company to fully fund the Media Luna Project to production; 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 those risk factors identified in
the Technical Report and the Company’s annual information form and management’s discussion and analysis or o ther 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 impor tant 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.
Table 2: Drill results from 2021 scout drill program at EPO South Extension and 2022 expansion drill program at EPO South
Notes to Table
1. Intersections are reported as true thickness, based on current geological understanding of the mineralization.
2. The gold equivalent grade calculation used is as follows: AuEq (g/t). = Au (g/t) + Ag (g/t) * 0.011385 + Cu (%) * 1.621237 account for the same metal prices ($1,550/oz gold, $20/oz silver, and $3.50/lb copper) and metallurgical
recoveries (85% gold, 75% silver and 89% copper) used in the Mineral Resource estimate for the EPO deposit.
Final Intersection
Drill-Hole Area UTM-E UTM-N Elevation Hole Mother Azimuth Dip Depth From To True Length1 Au Ag Cu AuEq2 Lithology
(m) (m) (m) Type Hole (m) (m) (m) (m) (g/t) (g/t) (%) (g/t)
ML21-753 EPO South Ext. 421867.8 1984351.1 1113.5 CD 234.83 -74.89 938.00 836.00 847.00 6.31 4.00 19.44 0.78 5.48 Breccia/Skarn
Including 2.29 10.13 35.40 1.20 12.48 Breccia/Skarn
858.34 859.34 0.57 0.14 80.40 1.96 4.23 Breccia
ML21-754 EPO South Ext. 421877.5 1984344.5 1113.4 CD 63.18 -63.42 548.35 No significant values
ML21-755 EPO South Ext. 421501.8 1984837.1 1155.6 CD 104.87 -59.88 498.25 No significant values
ML21-756 EPO South Ext. 421869.5 1984348.7 1113.6 CD 351.26 -75.77 577.1 537.37 556.03 16.48 8.70 4.27 0.54 9.63 Skarn Composite 1
Including 2.38 56.50 8.18 0.75 57.81 Skarn
ML21-757 EPO South 421989.6 1985602.6 1440.5 CD 142.58 -68.7 677.4 252.65 256.15 3.17 0.70 81.04 0.31 2.13 Massive sulfide
553.72 554.25 0.48 0.74 63.00 0.90 2.91 Skarn Composite 1
615.03 625.86 9.82 0.82 9.66 0.65 1.99 Skarn Composite 2
Including 2.69 1.62 8.18 0.88 3.14 Skarn
ML21-758 EPO South Ext. 421503.1 1984835.7 1155.7 CD 44.89 -50.12 497.9 140.09 144.63 4.15 1.54 3.44 0.00 1.58 Dike
147.16 147.79 0.58 1.89 13.20 0.08 2.16 Massive sulfide
ML21-759 EPO South Ext. 421872.0 1984348.2 1113.5 CD 117.89 -67.78 773.8 718.99 719.68 0.53 0.77 50.90 0.70 2.49 Breccia/Skarn
723.39 726.90 2.69 1.09 22.51 0.47 2.11 Breccia/Skarn
733.89 741.35 5.10 2.79 8.60 0.27 3.34 Breccia/Skarn
Including 3.41 3.82 11.37 0.38 4.57 Breccia/Skarn
ML22-763 EPO South 421991.2 1985601.3 1440.2 CD 128.27 -76.11 177.60 Mother hole
ML22-763A EPO South 421991.2 1985601.3 1440.2 DD ML22-763 715.05 550.41 558.07 7.63 0.76 12.19 0.60 1.87 Skarn Composite 1
598.00 602.00 3.98 1.71 14.68 0.37 2.47 Skarn Composite 2
618.05 619.58 1.52 1.21 11.69 0.43 2.04 Skarn Composite 3
637.80 673.57 35.63 2.05 30.33 1.05 4.10 Skarn Composite 4
Including 8.97 5.78 11.53 0.41 6.57 Skarn
Including 4.02 0.77 154.05 4.65 10.07 Skarn
ML22-765 EPO South 421934.1 1985580.0 1432.2 CD 283.74 -86.59 714.7 670.26 680.00 9.73 8.51 33.44 1.57 11.44 Skarn Composite 1
689.58 694.80 5.14 2.31 24.66 0.89 4.04 Skarn Composite 2
ML22-769 EPO South 421986.6 1985604.0 1440.2 DD 162.47 -72.93 137.10 Mother hole
ML22-769A EPO South 421986.6 1985604.0 1440.2 DD ML22-769 773.45 213.75 217.10 2.93 0.57 69.25 0.23 1.73 Breccia
650.68 668.00 17.25 4.18 25.15 1.74 7.29 Skarn Composite 1
Including 3.02 10.85 28.37 2.09 14.56 Skarn
Including 3.48 4.40 42.82 3.37 10.34 Skarn
720.94 721.94 1.00 0.20 37.80 1.22 2.61 Skarn Composite 2
737.81 738.53 0.72 2.98 6.10 0.16 3.32 Skarn Composite 3
ML22-773 EPO South 421931.9 1985578.8 1432.2 CD 267.84 -80.23 718.50 141.35 143.00 1.61 0.53 78.44 0.29 1.88 Massive sulfide
665.10 667.00 1.86 1.41 18.23 0.53 2.48 Skarn Composite 1
676.45 676.98 0.52 3.77 22.90 0.02 4.07 Granodiorite
ML22-778 EPO South 421933.8 1985578.1 1432.2 CD 155.48 -66.69 134.65 Mother hole
ML22-778A EPO South 421933.8 1985578.1 1432.2 CD ML22-778 763.9 438.01 440.00 1.99 0.90 19.87 0.22 1.49 Marble
703.30 704.30 1.00 2.49 4.30 0.00 2.54 Granodiorite