Torex Announces Maiden Sub-Sill Mineral Reserves and Mine Plan and Updates Mineral Reserves and Resources for the ELG Mine Complex
January 16, 2018 at 12:14 pm
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Torex Gold Resources Inc. announced an updated mineral resource estimate and mineral reserves estimate for its ELG Mine Complex located in southwest Mexico. The announcement includes a maiden high grade, mineral reserve and mine plan for the Sub-Sill. The estimates were prepared in accordance with National Instrument 43-101 ("NI 43-101") and CIM Definition Standards. The mineral resource remains open in three directions. The In-fill drill program had a 100% success rate in upgrading Inferred mineral resource tonnes to Indicated mineral resource tonnes. The mineral reserve includes 71% of the Indicated mineral resource ounces at a 4.6 g/t cut-off-grade. Inferred ounces are not included. Estimated $86 million of before tax, free cash flow. Estimated 29 months of production, delivers 480,000 tonnes at 11.65 g/t, containing 180,000 Au ounces, 8 months to get to the steady state production rate of 850 tonnes per day. 76,000 tonnes at 15.30 g/t Au while main ventilation and electrical infrastructure are being established, 11 months at 850 tpd producing 283,000 tonnes at 11.40 g/t Au, for the remaining 10 months, the current mineral reserve supports the mining of 120,000 tonnes, at 9.93 g/t Au, additional drilling is planned with the objective of upgrading inferred mineral resources, identifying additional mineral resources, and extending the mine life. Recoveries average 84.4% over the mine plan, 88.30% when Cu grade is less than 0.1%. 85.8% when Cu grade is between 0.1%, and 1% and 80.1% when Cu grade is greater than 1%. The average expected Ag recovery is 26.2% for the mine plan. Total Cash Cost of $479/Au Oz and All In Sustaining Cost (AISC)(1) of $512/Au Oz, mining costs average $110/tonne over the mine plan. Processing and G&A are the same as for the ELG open pits. Total capital required is $23M, of which, $22M will be spent in the first year. There are 6 mining areas in the Sub-Sill mine plan, that range in size from 40 100m length on strike, 40 200m on plunge, and 3.5 to 25m thick dipping at an average of 24°, the mining method is post pillar, cut and fill. A post pillar mechanized cut and fill mine plan has been designed using the updated Mineral Resource Estimation and geological model resulting in a high grade, Probable Mineral Reserve, of 0.48 million tonnes at 11.65 g/t Au for 180,000 gold ounces at an average in situ cut-off grade 4.60 g/t Au cut-off grade. The mine plan is expected to deliver 480,000 tonnes of high grade (11.65 gpt Au) ore containing 180,000 Au ounces to the ELG Processing Plant over a 29-month period. The Mine is expected to ramp up over an 8-month period with estimated production of 76,000 tonnes at 15.30 g/t Au while main ventilation and electrical infrastructure are being established. Steady state production is expected to continue for 11 months with estimated production of 283,000 tonnes (850 tpd) at 11.40 g/t Au, the main constraint being backfilling rate. For the remaining 10 months, the mine plan is expected to deliver 120,000 tonnes (400 tpd) at 9.93 g/t Au. Sub-Sill ore is expected to perform well in the existing Plant with expected Au recoveries ranging from 88.30% when Cu grade is less than 0.1%, 85.8% when Cu grade is between 0.1% and 1% and 80.1% when Cu grade is greater than 1%. The average expected recovery is 84.4% for the mine plan. The expected recoveries for Ag range from 67.3% when Cu grade is less than 0.1%, 37.1% when Cu grade is between 0.1% and 1% and 14.1% when Cu grades are greater than 1%. The average expected Ag recovery is 26.2% for the mine plan. During steady state production (approximately 850 tpd), expected operating costs average $108.35/tonne, including $79.97/tonne mining cost, $19.33/tonne processing and $9.05/tonne in general administration (G&A). Over the 29- month mine plan, operating costs are expected to average $140.86 /tonne.
Torex Gold Resources Inc. is a Canada-based intermediate gold producing company, which is engaged in exploration, development, and operation of its Morelos Gold Property. The Morelos Gold property covers an area of approximately 29,000 hectares in the prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Companyâs principal assets are the El Limon Guajes mining complex (ELG or the ELG Mine Complex), comprising the El Limon, Guajes and El Limon Sur open pits. The Company also hosts the Media Luna deposit, which is an advanced stage development project located approximately seven kilometers from ELG. The Companyâs El Limon Guajes underground mine includes Sub-Sill and El Limon Deep, and processing plant and related infrastructure, and the Media Luna deposit.