Torex Gold Resources Inc.
Torex Gold Establishes New Quarterly Production Record of 138,100 Ounces of Gold
Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announces Q3 2019 gold production of 138,100 ounces, surpassing the prior quarterly production record established in Q2 2019 by 21%.
During the third quarter, the Company sold 132,500 ounces of gold at an average realized price of $1,475 per ounce. After the first nine months of the year, Torex has sold 322,400 ounces of gold at an average realized price of $1,376 per ounce. (All amounts expressed in U.S. Dollars unless otherwise stated)
With the strong year-to-date performance and expectations for production in Q4 2019, the Company is well on track to achieve full year guidance of 430,000 ounces of gold sold (+/- 7%).
Q3 2019 Operational Highlights:
• Gold production of 138,100 ounces
• Plant throughput averaged 12,370 tpd
• Underground ore mined averaged 1,110 tpd
• Open pit ore mined averaged 14,270 tpd
• Open pit strip ratio of 9.1:1 After reconciliations have been completed, gold grades mined, gold grades processed, and gold recoveries will be reported with the Q3 2019 financial results.
Fred Stanford, President and CEO of Torex, stated:
“Our total cash balance increased by $52 million in the quarter and total debt was reduced by over $36 million. Jody Kuzenko and team made this possible by delivering another set of excellent quarterly operational results. Gold price helped too, and the impact was magnified with the record number of ounces produced. Safety performance matched the record setting production results. The team and asset are well positioned to continue delivering exemplary results in the future.
“On the Muckahi front, testing of the components of Muckahi have gone very well. We now have the confidence to move beyond component testing, to field testing of the system as an integrated mining method. The ELD deposit will be dedicated to this next stage of proving up the Muckahi System, with mining of the first long hole open stope to take place in the next few weeks. These are exciting times and the team is aggressively pushing forward to deliver strong cash flow from ELG, and to set up the future with Media Luna and Muckahi.”
Jody Kuzenko, COO of Torex, added:
“I could not be more pleased with the operational results in the third quarter. We set ourselves some bold targets on safety and production, and came together as a team to deliver. We achieved record gold production for the quarter, a record run on lost time injury free days, and above design flow rates through SART. Step by step, we are continuously improving performance through the grinding circuit. Daily plant throughput increased month-over-month during Q3 2019, driven by improvements in both tonnes processed per hour and an increase in equipment availability. As a result, availability in the plant averaged 89% in Q3 2019 compared to 84% in Q2 2019. We are demonstrating that with the right people working with the right systems in a disciplined way, that our asset is stable and capable, and performance excellence can be routine.”
Due the utilization of tax loss carry-forwards during the quarter, Torex will begin accruing corporate tax on a current basis. The corporate level tax is in addition to the EBITDA based mining tax in Mexico, for which the company has already been accruing current tax.
About Torex Gold Resources Inc.
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 180 kilometers southwest of Mexico City.
The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”), comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), 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 “Technical Report”). The property remains 75% unexplored.
For further information, please contact: Fred Stanford, President & CEO, Torex Gold Resources, (647) 260-1502 or Dan Rollins, VP, Corporate Development & Investor Relations, (647) 260-1503, Email: email@example.com.
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