Torex Reports Record Production of 354,000 Ounces of GOLD IN 2018 and Provides 2019 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 REPORTS RECORD PRODUCTION OF 354,000 OUNCES OF GOLD IN 2018
AND PROVIDES 2019 OUTLOOK
TORONTO, Ontario, January 10, 2019 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased
to announce that 354,000 ounces of gold were produced and 348,000 ounces of gold were sold in 2018, a record year
at its ELG Complex located in southwest Mexico.
Fred Stanford, President & CEO of Torex stated:
“Achieving a production record at the top end of production guidance is a credit to the quality of the asset and the
quality of the corporate and site teams who managed through significant complexity in 2018. Safety and environmental
protection performance were also excellent. In Q4/18 plant throughput averaged 13k/t so there is some work left to do
to get to the design level of 14kt/d. Sub-Sill produced at above design rates of 850 t/d in December. 2018 was also
an excellent year on the growth front, with successful explor ation/infill drill programs and with the introduction of the
Muckahi technology. The first Muckahi machine was designed and built in 2018 and we plan to use it to start breaking
rock in Q1/2019.”
“I offer a special thanks to all the Torex teams and the ot her stakeholders that contributed to making 2018 such a
success. We all look forward to continuing the progress in 2019 with production growth, strong safety and
environmental protection performance, exploration/infill success, and field testing of the Muckahi technology. It is going
to be an exciting year!”
Production and Cost Outlook for 2019 (US$)
Gold ounces sold 430,000, +/- 7%
Total cash cost/oz. sold (1) $580, +/- 7%
AISC/oz. sold (1) $790, +/- 7%
Sustaining Capex $66 million
Non-Sustaining Capex $36 million
(1) This is a non-GAAP measure with no standardized meaning under International Financial Reporting Standards. Refer to the Company’s
MD&A for the third quarter of 2018 for further information and a detailed reconciliation regarding historical performance measures.
Gold production and cost estimates for 2019
Gold production is expected to be higher in the second half of 2019 than the first half.
Capex estimate for 2019
Sustaining capital expenditures include approximately $42 million for capitalized stripping of waste. Non-sustaining
capital expenditures include $18 million for Media Luna and $8 million for Muckahi development.
The Company’s management’s discussion and analysis for the third quarter of 2018 is available on SEDAR at
www.sedar.com and the Company’s website at www.torexgold.com.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of
its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located
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
180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex
(the “ELG Mine Complex”), comprised of the El Limón, Guajes and El Limó n Sur open pits, the El Limón Guajes
underground mine including zones referred to as Sub-Sill and El Limón Deep, and the processing plant and related
infrastructure, which is in the commercial production stage as of April 1, 2016, and the Media Luna deposit, which is
an early stage development project, and for which the Company issued an updated preliminary economic assessment
in September 2018. 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 NOTES
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 includes, but is not limited to, information with respect to the projected
gold production, plant throughput, total cash cost per ounce of gold sold, AISC per ounce of gold sold and sustaining and non-
sustaining capital expenditures, the expectation that the proc essing plant will achieve and sustain full design capacity, the
expectation that the first Muckahi machine will begin crushing rock in the first quarter of 2019, the expectation that gold production
will be higher in the second half of 2019 compared to the first half of 2019. Generally, forward-looking 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 from those expressed or im plied by such forward-looking information, including, without
limitation, the risks associated with skarn deposits, risk that pl ant optimization activities will not achieve expectations, ri sks
associated with mine production and gold production, risks associated with cost estimates and other risk factors identified in the
Company’s annual information form, management’s discussion and analysis and Technical Report, entitled ““NI 43-101 Technical
Report ELG Mine Complex Life of Mine Plan and Media Luna Preliminary Economic Assessment”, which has an effective date of
March 31, 2018. Forward-looking information is based on t he reasonable assumptions, estimates, analysis and opinions of
management made in light of its experience and its perception of trends, current conditions and expected developments, as well
as other factors that management 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 Com pany 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 wi ll prove to be correct. There can be no assurance that such
information will prove to be accurate, as actual results and futu re events could differ materially from those anticipated in su ch
information. The Company does not undertake to update any forward- looking information, except in accordance with applicable
securities laws.
MUCKAHI
The Muckahi mining system is experimental in nature and has not been tested in an operating mine. Many aspects of the system
are conceptual, and proof of concept has not been demonstrated.