Torex Poured 279,937 Ounces of GOLD IN 2016 and Provides 2017 Outlook
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304 4000
www.torexgold.com
TOREX POURED 279,937 OUNCES OF GOLD IN 2016
AND PROVIDES 2017 OUTLOOK
TORONTO, Ontario, January 9, 2017 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased
to announce that 279,937 ounces of gold were poured and 275,613 ounces of gold were sold in 2016, the first year
of operations at its El Limon-Guajes Mine located in southwest Mexico.
Fred Stanford, President & CEO of Torex stated: “A goal of 275,000 ounces sold, during the first year of operations,
was always an ambitious target. In achieving that target, the team did an excellent job of managing the complexities
of the ramp up, on budget, with no environmental spills, and with well managed safety systems. Mother Nature also
threw in a few challenges with 67% more rain than normal and soluble copper in the ore-body. The team dealt with
those challenges as well, and a hearty Thank You goes out to all.” He added, “Looking forward, 2017 promises to be
another transitional year for the company. El Limon pit is ramping up nicely and will contribute a much larger share
to the mining production. The team will finish the heavy lifting on de-bottlenecking the tailings filtration plant, and to
deal with the soluble copper, a SART plant is scheduled to be built and commissioned by year end. While these final
stages of the ramp up are being completed, growth initiatives will be advancing as well. The access ramp into the
recently discovered ‘Under the Sill’ zone is scheduled for completion by mid-year, and initial tonnes from this zone
are expected in the processing plant before year end. Media Luna is also expected to achieve a major milestone
with the commencement, in the latter half of the year, of an underground exploration tunnel to access the deposit.
These are exciting times and we thank all of our shareholders and stakeholders who have supported us and made so
many of the contributions that have helped the company develop into the profitable and responsible intermediate
producer that it has become.”
Production and Cost Outlook for 2017 (US$)
Gold ounces sold 350,000 – 380,000
Total cash cost/oz. sold (1) $525 - $575
AISC/oz. sold (1) $775 - $825
Capex $100 - 130 million
Exploration $10 million
(1) This is a non-GAAP measure with no standard meaning under IFRS. Refer to “Non-IFRS Performance Measures” section
in the MD&A for 3rd Quarter 2016
Gold production and cost estimates for 2017
The Company expects to sell between 350,000 and 380,000 ounces of gold in 2017, planned production levels are at
nameplate capacity of 14,000 tpd, wi th 87% gold recovery and a processed grade of 2.67gpt. AISC/oz. sold, are
predicted to be higher than estimated in last year’s Life of Mine Plan (LOMP). The higher consumption of reagents
and oxygen to deal with the soluble copper in the deposit has led to a budgeted increase of $153/oz. for reagents.
The soluble copper issues are expected to be resolved in 2017 with the construction of a SART plant. In 2018, this
plant is expected to reduce the consumption of reagents and oxygen by approximately $100/oz. Earthworks for the
SART plant are underway and long lead time items have been ordered. The $23 million capital budget for 2017 to
build the plant, has been categorized as development capital, and as such it is not included in the estimated AISC/oz.
The estimated payback for the SART capital is 12 to 18 months depending on the degree of solubility of the copper in
the processed ore.
Torex Gold Resources Inc. Page 2
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304 4000
www.torexgold.com
Capex estimate for 2017
Sustaining capital expenditures include approximately $60 million for capitalized stripping of waste in the two pits and
$15 million for equipment, and projects, for the plant, pits and ponds. Non sustaining capital expenditures include
$23 million for the SART plant, $11 million of El Limon mobile equipment, $10 million for an additional filter for the
tailings filtration plant, and other minor deferred project capital. Non sustaining capital also includes $5 million for the
El Limon Under the Sill ramp and $5 million for the Media Luna access ramp. An increase of expenditure in these
latter two development areas is a possibility, depending on advance rates and further development decisions.
The Company’s management’s discussion and analysis for the third quarter of 2016 is available on SEDAR at
www.sedar.com and the Company’s website at www.torexgold.com.
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and
operation of its 100% owned Morelos Gold Property, an ar ea of 29,000 hectares in the highly prospective Guerrero
Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine,
which announced commercial production in March of 2016 and the Media Luna Project, which is in an advanced
stage of exploration, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The
property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
Fred Stanford Gabriela Sanchez
President and CEO Vice President Investor Relations
Tel. (647) 260-1502 Tel. (647) 260-1503
Email: [email protected] E m a i l : [email protected]
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” and “f orward-looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking information incl udes, but is not limited to, information with respect to the
projected gold production, mill throughput, cash cost, AISC and capital expenditures, the successful de-bottlenecking of the
filtration plant, the timing of the completion of the SART plant and expected resolution of the soluble copper issue, and the f uture
exploration and development plans of the Company including the ex pectation and timing of processing tonnes from the ‘under
the sill” zone. Generally, forward-looki ng information can be identified by the use of forward-looking terminology such as
“budget”, “goal”, “milestone”, “plans”, “expects”, “estimates”, “possibility”, “depending” or “believes” or variations of such words
and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will”, “occur”, “scheduled”,
“predicted” or “be achieved”. 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 fro m
those expressed or implied by such forwar d-looking information, including, without limitation, the risk associated with skarn
deposits, risks associated with design, engineering and construction, the risk that actual results of current exploration and
development activities will not achieve expectations and other risk factors identified in the Company’s annual information form
and management’s discussion and analysis. Forward-looking inform ation is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its exper ience and its perception of trends, current conditions and
expected developments, as well as other factors that managemen t believes to be relevant and reasonable in the circumstances
at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the
assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed
on forward-looking information because the Company can give no assurance that such expectations will prove to be
correct. 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 informati on. The Company does not undertake to update any forward-looking
information, except in accordance with applicable securities laws.