Torex Gold Resources Inc. has announced the initiation of its in-fill drilling programme at its Media Luna development project in Southwest Mexico.
The purpose of this programme is to upgrade, to the Indicated confidence level, 25% of the current inferred Media Luna resource of 7.4 million Au Eq. ounces (51.5 Mt @ 4.48 g/t Au Eq.). The programme plan contains 175 holes, averaging 600 m in depth, for a total of 105 000 m of drilling. The budgeted cost for the programme 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 Media Luna feasibility study, which is scheduled for completion in the second half of 2019.
Fred Stanford, President & CEO of Torex stated:
“The start of this in-fill drilling program is a big step in advancing the development 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 optimisation of the Media Luna production and service processes, 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 1Q18 , is expected to illustrate the commercial advantages of the proposed optimised processes. Internal and external study teams are also focusing on design elements that are expected to expedite the permitting process. Pending success of future technical studies, the potential timeline contemplates beginning construction 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 programme 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 m of each hole. DD rigs are expected to complete the remainder of each hole to an average depth of 600 m. Adjustments to the drilling process will be made, as required, to achieve the drill hole spacing, in the mineralised zone, that is needed for an Indicated resource confidence level. The in-fill drill programme will focus on the Southwest section of the deposit, an area of higher grade mineralisation.
Torex is an emerging 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 km southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine, which announced commercial production in March of 2016, 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.