STOCK TITAN
  1. Home
  2. News
  3. TORXF
  4. Torex Gold Reports Year-End 2023 Reserves & Resources

Torex Gold Reports Year-End 2023 Reserves & Resources

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Torex Gold Resources Inc. reports year-end 2023 mineral reserves and resources for the Morelos Complex, showing significant expansion. The company aims to maintain annual AuEq production of over 450,000 ounces beyond 2027 and extend the life of Morelos assets. Investments in drilling have led to reserve and resource growth, with successful results at ELG Underground and EPO. The company plans to complete an internal prefeasibility study for EPO in 2024.
Positive
  • Significant expansion of mineral reserves and resources at ELG Underground and EPO reported by Torex Gold Resources Inc.
  • Company aims to maintain annual AuEq production of over 450,000 ounces beyond 2027 and extend the life of Morelos assets.
  • Investments in drilling have led to reserve and resource growth, with successful results at ELG Underground and EPO.
  • Company plans to complete an internal prefeasibility study for EPO in the second half of 2024.
  • Metal prices and metallurgical recoveries have increased, reflecting strength in underlying metal prices.
  • Quality assurance/quality control program in place to ensure high-quality assay results.
  • Qualified person Carolina Milla, P.Eng., has reviewed and approved the scientific and technical information in the news release.
Negative
  • None.

Drilling significantly expands mineral resources at ELG Underground and EPO

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

Toronto, Ontario--(Newsfile Corp. - March 26, 2024) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) is pleased to report year-end 2023 mineral reserves and resources for the Morelos Complex, which includes the producing El Limón Guajes ("ELG") Mine Complex (consisting of the ELG Open Pits and ELG Underground), advanced development phase Media Luna deposit, pre-development phase EPO deposit, and surface stockpiles.

Table 1: Year-over-year comparison of mineral reserves & mineral resources for the Morelos Complex


December 31, 2023December 31, 2022Variance

TonnesAuEqAuEqTonnesAuEqAuEqTonnesAuEqAuEq

(kt)(gpt)(koz)(kt)(gpt)(koz)(kt)(gpt)(koz)
Proven & Probable Reserves








Media Luna Underground23,5694.433,36023,0174.543,3602%(2%)0%
ELG Underground3,5045.816542,5636.1750837%(6%)29%
ELG Open Pit5,5533.165658,4033.27885(34%)(3%)(36%)
Surface Stockpiles4,9721.201924,6551.301957%(8%)(1%)
Total Morelos Complex37,5983.954,77138,6383.984,947(3%)(1%)(4%)
Measured & Indicated Resources








Media Luna Underground27,4515.234,61827,3905.304,6690%(1%)(1%)
ELG Underground8,1765.481,4415,0166.261,00963%(12%)43%
EPO Underground6,9795.141,1534,0505.1667172%(0%)72%
ELG Open Pit6,1103.1361511,3043.081,119(46%)2%(45%)
Total Morelos Complex48,7175.007,82847,7604.867,4682%3%5%
Inferred Resources








Media Luna Underground7,3304.251,0017,3224.271,0060%(1%)(0%)
ELG Underground2,3965.284071,4806.0528862%(13%)41%
EPO Underground4,9604.527215,6344.04732(12%)12%(1%)
ELG Open Pit3992.08271,3851.9587(71%)7%(69%)
Total Morelos Complex15,0854.452,15615,8214.152,112(5%)7%2%

 

Notes to Table:

  1. Gold equivalent (AuEq) mineral reserves and resources take into account respective metal prices and metallurgical recoveries for gold, silver, and copper (see Table 3 and Table 5).
  2. Mineral resources are reported inclusive of mineral reserves.
  3. The reader is cautioned not to misconstrue this tabulation as a mineral reserve or a mineral resource statement. Tonnes, grades, and contained metal are shown for comparison purposes only.
  4. Year-end mineral reserves and resources as well as year-over-year variance subject to rounding.

Gold equivalent ("AuEq") mineral reserves and mineral resources take into account respective metal prices and metallurgical recoveries for gold ("Au"), silver ("Ag"), and copper ("Cu") by deposit. Metal prices used to estimate mineral reserves and mineral resources have increased by $100/oz for Au, $2.00/oz for Ag and $0.25/lb for Cu relative to year-end 2022, reflecting continued strength in underlying metal prices. These prices are in line with the mid-point of metal prices used by precious metal peers.

Jody Kuzenko, President & CEO of Torex, stated:

"A key strategic focus for Torex is to grow reserves and resources and our 2023 drilling program was very successful in this regard. The results delivered in 2023 continue to bolster confidence that we will achieve our goal to maintain annual AuEq production of more than 450,000 ounces ("oz") beyond 2027 and extend the overall life of our Morelos assets well beyond 2033.

"At ELG Underground, Proven and Probable reserves increased to 654 koz AuEq, which now sees us with a reserve life out to late 2028. Measured and Indicated resources expanded by 432 koz AuEq (570 koz AuEq prior to mined depletion), while Inferred resources increased by 119 koz AuEq. Resource growth was a direct result of successful drilling as well as the assumption of a lower cut-off grade, reflecting higher metal price assumptions and lower costs due to steady increases in underground mining rates.

"At EPO, infill drilling was successful in upgrading Inferred resources, while step-out drilling expanded the overall mineralized footprint. Indicated resources increased by 481 koz AuEq to 1,153 koz at year end, surpassing even our aggressive target of one million AuEq ounces. The updated resource will form the basis of an internal prefeasibility study to be completed in the second half of 2024.

"Our strategy to grow reserves and resources has been supported with meaningful investment, with an average of $31 million invested annually for each of the last 3 years, reflecting the strategic pivot towards drilling made in 2020. Since releasing the March 2022 Technical Report, we have increased our Measured and Indicated resource1 base by 1,979 koz AuEq (prior to mined depletion) over the last two years and strengthened the production profile by increasing our Proven and Probable reserves by 719 koz AuEq (prior to processed depletion) over the same period. The ongoing success demonstrates the significant mineral endowment at Morelos and the potential to generate significant shareholder value from Morelos far into the future."

Detailed breakdowns of mineral reserve and mineral resource estimates can be found in Table 7 and Table 8 of this press release. The detailed breakdowns include tonnes, grade, and contained metal estimates by metal as well as notes accompanying the applicable mineral reserve and resource estimates.

1) Measured and Indicated resources are reported inclusive of Proven and Probable reserves. For more information on the changes in Measured and Indicated mineral resources and Proven and Probable mineral reserves for the year ended December 31, 2022, see news release titled "Torex Gold Reports Year-End 2022 Reserves & Resources" dated March 28, 2023 filed on SEDAR+ at www.sedarplus.ca and the Company's website at www.torexgold.com.

PROVEN & PROBABLE MINERAL RESERVES

Total Proven and Probable reserves are estimated at 4,771 koz AuEq at an average grade of 3.95 gpt, representing a 4% decrease relative to year-end 2022 reserves of 4,947 koz AuEq at 3.98 gpt. Prior to depletion (processed), reserves increased 350 koz AuEq (+7%). Of the Proven and Probable reserves at year-end 2023, 71% of the AuEq estimate is attributable to Au, 24% to Cu, and 5% to Ag.

Table 2: Year-over-year change in Proven & Probable mineral reserves


December 31, 2023Variance (2023 / 2022)

TonnesAuAgCuAuEq1TonnesAuAgCuAuEq1

(kt)(koz)(koz)(Mlb)(koz)(kt)(koz)(koz)(Mlb)(koz)
Proven & Probable Reserves
Media Luna Underground23,5692,05018,8774483,360552(27)(67)40
ELG Underground3,504594867236549411142699146
ELG Open Pit5,55355285123565(2,850)(311)(344)(5)(320)
Surface Stockpiles4,9721874438192317(1)(27)0(3)
Total Morelos Complex37,5983,38421,0385024,771(1,040)(225)(168)9(176)
Change - Net (%)




(3%)(6%)(1%)2%(4%)
Change in Reserves Prior to Depletion
Ore Processed2




(4,810)(509)(572)(15)(526)
Reserves - Added / Lost




3,77028440424350
   Change - Prior to Depletion (%) 10%8%2%5%7%

 

Notes to Table:

  1. AuEq mineral reserves take into account respective metal prices and metallurgical recoveries for Au, Ag, and Cu (see Table 3).
  2. Ore processed (depletion) in 2023 on a AuEq basis assumes respective based on prices and recoveries used at year-end 2022.
  3. Year-end mineral reserves and year-over-year variance (2023 versus 2022) subject to rounding.

During 2023, 67% of the 526 koz AuEq depleted (processed) was replaced, driven by drilling success (gain of 148 koz), block model updates (gain of 105 koz), lower cut-off grade in ELG Underground (gain of 86 koz), and other changes (gain of 11 koz).

The decline in ELG Open Pits primarily reflects depletion (389 koz AuEq) partially offset by optimizations carried out to the block model during 2023.

At ELG Underground, Proven and Probable reserves increased 146 koz AuEq net of depletion of 134 koz AuEq (280 koz prior to depletion), with 129 koz added through drilling, 86 koz added via a lower cut-off grade (reflecting higher metal prices and lower unit costs), and 65 koz added through block model optimizations.

At Media Luna, Proven and Probable reserves primarily reflect changes to Measured and Indicated resources delivered during 2022 as these results were not available to be incorporated into the year-end 2022 update. Modestly higher tonnes at modestly lower Au, Ag, and Cu grades reflect the conversion of Probable reserves to the Proven category (following resources upgraded to the Measured category during 2022), refinements to the block model carried out during 2023, and the benefit of additional Probable reserves (reflecting resources upgraded to the Indicated category during 2022). The impact of these changes on a AuEq basis was offset by the higher relative contribution of Cu and Ag on AuEq reserves given higher metal prices used for Cu (+8%) and Ag (+12%) relative to the higher price used for Au (+7%).

Metal prices used in the estimation of mineral reserves have increased relative to year-end 2022. Higher metallurgical recoveries for ELG Underground reflect the increased proportion of reserves to be processed through the upgraded processing plant starting in late 2024 relative to the proportion anticipated at year-end 2022, including improved Cu and Ag recoveries due to the installation of copper and iron sulfide flotation circuits as part of the Media Luna Project.

Table 3: Metal price and metallurgical recovery assumptions used in the estimation of mineral reserves

Mineral ReservesDecember 31, 2023December 31, 2022Variance

AuAgCuAuAgCuAuAgCu
Metal Prices($/oz)($/oz)($/lb)($/oz)($/oz)($/lb)($/oz)($/oz)($/lb)
Media Luna Underground$1,500$19.00$3.50$1,400$17.00$3.25$100$2.00$0.25
ELG Underground$1,500$19.00$3.50$1,400$17.00$3.25$100$2.00$0.25
ELG Open Pit$1,500$19.00$3.50$1,400$17.00$3.25$100$2.00$0.25
Surface Stockpiles$1,500$19.00$3.50$1,400$17.00$3.25$100$2.00$0.25
Metallurgical Recoveries(%)(%)(%)(%)(%)(%)(%)(%)(%)
Media Luna Underground90%86%93%85%79%91%5%7%2%
ELG Underground90%86%93%90%62%63%-24%30%
ELG Open Pit89%30%15%89%30%23%--(8%)
Surface Stockpiles89%30%15%89%30%23%--(8%)

 

The impact of updated AuEq formulas on AuEq values (incorporating higher metal prices and updated metallurgical recoveries) on Proven and Probable reserves is negligible when comparing year-end Au, Ag, and Cu reserves assuming the AuEq formulas used at year-end 2022.

MEASURED & INDICATED MINERAL RESOURCES

Measured and Indicated mineral resources are estimated at 7,828 koz AuEq at an average grade of 5.00 gpt, representing a 5% increase relative to the 7,468 koz AuEq at 4.86 gpt at year-end 2022. Prior to depletion, resources increased 901 koz AuEq (+12%). Of the Measured and Indicated resource at year-end 2023, 67% of the AuEq estimate is attributable to Au, 27% to Cu, and 6% to Ag.

Table 4: Year-over-year change in Measured & Indicated mineral resources


December 31, 2023Variance (2023 / 2022)

TonnesAuAgCuAuEq1Tonnes { "@context": "https://schema.org", "@type": "FAQPage", "name": "Torex Gold Reports Year-End 2023 Reserves & Resources FAQs", "mainEntity": [ { "@type": "Question", "name": "What did Torex Gold Resources Inc. report regarding mineral reserves and resources for the Morelos Complex?", "acceptedAnswer": { "@type": "Answer", "text": "Torex Gold Resources Inc. reported significant expansion of mineral reserves and resources at ELG Underground and EPO for the year-end 2023." } }, { "@type": "Question", "name": "What is the company's goal regarding annual AuEq production beyond 2027?", "acceptedAnswer": { "@type": "Answer", "text": "The company aims to maintain annual AuEq production of over 450,000 ounces beyond 2027." } }, { "@type": "Question", "name": "What investments have led to reserve and resource growth according to the press release?", "acceptedAnswer": { "@type": "Answer", "text": "Investments in drilling have led to reserve and resource growth, with successful results at ELG Underground and EPO." } }, { "@type": "Question", "name": "What study does the company plan to complete for EPO in 2024?", "acceptedAnswer": { "@type": "Answer", "text": "The company plans to complete an internal prefeasibility study for EPO in the second half of 2024." } }, { "@type": "Question", "name": "Who is the qualified person responsible for reviewing and approving the scientific and technical information in the news release?", "acceptedAnswer": { "@type": "Answer", "text": "Carolina Milla, P.Eng., is the qualified person under NI 43-101 who has reviewed and approved the scientific and technical information." } } ] }

FAQ

What did Torex Gold Resources Inc. report regarding mineral reserves and resources for the Morelos Complex?

Torex Gold Resources Inc. reported significant expansion of mineral reserves and resources at ELG Underground and EPO for the year-end 2023.

What is the company's goal regarding annual AuEq production beyond 2027?

The company aims to maintain annual AuEq production of over 450,000 ounces beyond 2027.

What investments have led to reserve and resource growth according to the press release?

Investments in drilling have led to reserve and resource growth, with successful results at ELG Underground and EPO.

What study does the company plan to complete for EPO in 2024?

The company plans to complete an internal prefeasibility study for EPO in the second half of 2024.

Who is the qualified person responsible for reviewing and approving the scientific and technical information in the news release?

Carolina Milla, P.Eng., is the qualified person under NI 43-101 who has reviewed and approved the scientific and technical information.

Stock TORXF logo
TOREX GOLD RES INC ORD

OTC:TORXF

TORXF Rankings

N/A Ranked by Market Cap
N/A Ranked by Dividends

TORXF Latest News

TORXF Stock Data

1.78B
85.52M
0.35%
67.84%
Gold
Basic Materials
Link
Canada
Toronto