Torex Gold Integrates EPO Deposit into Morelos Mine Plan

Newsfile Corp.
41 min read

In This Article:

Updated mine plan shows a robust long-term production profile that comes with a low risk, capital efficient development plan for EPO

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - September 4, 2024) -  Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) reports an updated life-of-mine plan for the Morelos Complex which incorporates the EPO underground deposit following completion of an internal pre-feasibility study on the deposit. The Company will be hosting an Analyst & Investor Day tomorrow morning at 10:00 AM ET to discuss the results of the study along with an update on the wider business, including the Company's multi-year exploration strategy.

Jody Kuzenko, President & CEO of Torex, stated:

"The results of the internal pre-feasibility study on the EPO deposit significantly enhance our strategy to deliver robust, long-term, value accretive production out of the Morelos Complex in a highly efficient way by leveraging infrastructure associated with the Media Luna Project. With the addition of EPO into the updated mine plan, we have further bolstered the cash flow capability of our world-class asset, with continued upside as the prospectivity of the Morelos Property continues to show itself through the drill bit. Notable highlights of the study are as follows:

  • With the addition of EPO mineral reserves, the production profile of the Morelos Complex is now firmly established at a minimum of 450 thousand ounces gold equivalent ("koz AuEq") per year through 2030 on the mineral reserve case alone;

  • EPO upfront capital expenditures are estimated at a lean $81.5 million, given the ability to leverage the investment made in infrastructure as part of the Media Luna Project - the strategy in constructing Media Luna was to ensure that the relevant infrastructure was sized sufficiently to handle further additions from the Media Luna Cluster and the south side of the Morelos Property. The Guajes Tunnel, conveyor and ore handling systems, paste plant, mineral processing facilities, and power and water infrastructure will all be utilized for EPO;

  • The "fill the mill" goal is achieved - with the mill sized at 10,600 tonnes per day ("tpd") capacity subsequent to the four-week tie in period scheduled in Q4 2024, the combination of Media Luna production (~7,500 tpd) + ELG Underground (~2,000 tpd) + EPO (average of ~1,700 tpd with opportunity to increase capacity up to 2,300 tpd) results in the mill being full, with mine plan optionality, flexibility, and contingency built in;

  • EPO is a low-risk brownfield addition to the life of mine plan - the close proximity to Media Luna infrastructure requires approximately 2,200 metres ("m") of upfront lateral development to access EPO and connect to the Media Luna ore handling system (including a 550 m ventilation adit), which facilitates overlapping use of the Media Luna mobile fleet and personnel, and minimizes permitting requirements;

  • The timing of EPO derisks the Media Luna ramp up and complements an already robust liquidity outlook - development and the associated capital investment is scheduled to start mid-2025, with the majority of the modest capital expected to be incurred in 2026 and initial production expected late that year;

  • EPO will further complement the Company's exposure to the copper ("Cu") market - with 143 million pounds ("Mlb") at a grade of 1.29% Cu within the inaugural EPO mineral reserve of 781 koz AuEq.

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