Torex Starts IN-Fill Drilling at Media Luna
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 STARTS IN-FILL DRILLING AT MEDIA LUNA
TORONTO, Ontario, October 17, 2017 – Torex Gold Resources Inc. (t he “Company” or “Torex”) (TSX:TXG) is pleased to announce the
initiation of its in-fill drilling program at its Media Luna development project in Southwest Mexico. The purpose of this progr am is to
upgrade, to the Indicated confidence level, 25% of the current inferred Media Luna resource of 7.4 million Au Eq. ounces (51.5M t @
4.48g/t Au Eq.). The program plan contains 175 holes, averagin g 600 meters in depth, for a total of 105,000 meters of drilling . The
budgeted cost for the program is US$15M, and the 175 holes are scheduled for completion by the end of 2018. Subsequent to the
completion of the program, a Measured and Indicated resource estimate will be prepared, and this will form the basis for a Medi a Luna
feasibility study, which is scheduled for completion in the second half of 2019.
Fred Stanford, President & CEO of Torex stated: “The start of th is in-fill drilling program is a big step in advancing the deve lopment of
the Media Luna deposit. That development process will be aided by the increased geological understanding and confidence that comes
from the drilling program. It will also be potentially enhanced by the optimization of the Media Luna production and service p rocesses,
that have been developed by internal teams, while we waited for the financial flexibility to proceed with in-fill drilling. An updated
preliminary economic assessment (“PEA”), scheduled for late in Q1, 2018, is expected to illustrate the commercial advantages of the
proposed optimized processes. Internal and external study t eams are also focusing on design elements that are expected to expe dite
the permitting process. Pending success of future technical st udies, the potential timeline contemplates beginning constructio n of the
Media Luna mine in early 2020, is expected to be financed from internal cash flow, and gold production is expected to begin in early
2022.”
The in-fill program will initially start with one reverse circulation (“RC”) and one diamond drill (“DD”) rig, increasing to four DD rigs by the
end of this year. Lower cost RC drilling is planned for the top 200 meters of each hole. DD rigs are expected to complete the remainder
of each hole to an average depth of 600 meters. Adjustments to the drilling process will be made, as required, to achieve the drill hole
spacing, in the mineralized zone, that is needed for an Indicated resource confidence level. The in-fill drill program will foc us on the
Southwest section of the deposit, an area of higher grade mineralization.
Torex is an emerging intermediate gold producer based in Canada , engaged in the exploration, development and operation of its 1 00%
owned Morelos Gold Property, an area 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 201 6,
the Sub-Sill Project, currently under development, and the Media Luna Project, an early stage development project for which the Company
issued a preliminary economic assessment 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]
QUALIFIED PERSON
Scientific and technical information contained in this news release has been reviewed and approved by Dawson Proudfoot, P.Eng.,
Vice President, Engineering of Torex Gold Resources Inc. and a Qualified Person under National Instrument 43- 101 – Standards of
Disclosure for Mineral Projects.
CAUTIONARY NOTES
Mineral Resource Estimate For Media Luna
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
For details of the Media Luna’s inferred mineral resource estimate, please see the Company’s annual information form available on SEDAR at
www.sedar.com or the Company’s website at www.torexgold.com. Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
Preliminary Economic Assessment
A preliminary economic assessment should not be considered a prefeasibility study or feasibility study. Further, a preliminary economic assessment
is a conceptual study of the potential viability of mineral re sources and the economic viability of the mineral resources are n ot demonstrated by such
a study. There is no certainty that the results of the updated PEA will support continued development of the Media Luna Project.
Forward Looking Statements
This press release contains “forward-looking statements” and “for ward-looking information” within the meaning of applicable Can adian securities
legislation. Notwithstanding the Company’s efforts, there c an be no guarantee that the Company will not face unforeseen delays or disruptions.
Forward-looking information includes, but is not limited to, information with respect to plans to complete the infill drilling program on the Media Luna
deposit, plans to upgrade the mineral resource estimate on the Media Luna deposit, plans to complete an updated preliminary economic assessment
on Media Luna project and the results to be sufficient to support further development activities including the completion of a feasibility study, expectation
that the proposed optimization processes for the Media Luna Project will have commercial advantages, possibility of the Media Luna project advancing
to production and becoming a mine . Generally, forward-looking in formation can be identified by the use of forward-looking ter minology such as
“purpose”, “budgeted”, “scheduled”, “potentially”, “proposed”, “pending”, “contemplates”, “plans”, “expects”, “estimates”, “intends”, “anticipates”,
“believes”, or “subsequent” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”,
“will” or “will be taken”, “occur”, 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, performanc e or achievements of the Company to be materially different fro m those expressed or
implied by such forward-looking information, including, without limitation, the risk associated with the variability of skarn d eposits, the risk that actual
results of current exploration and development acti vities will not achieve expectations and other risk factors identified in the Company’s annual
information form and management’s discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis
and opinions of management made in light of its experience and it s perception of trends, current conditions and expected develo pments, 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 Company believes that the assu mptions and expectations reflected in such forward-looking in formation 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 in formation will prove to be accurate, as actual results and fut ure events could differ
materially from those anticipated in such information. The Company does not undertake to update any forward-looking information , except in
accordance with applicable securities laws.