TORONTO, ONTARIO--(Marketwired - Nov. 5, 2015) -
(All amounts expressed in U.S. Dollars unless otherwise stated)
Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) announced today its financial results for the three and nine months ended September 30, 2015.
Fred Stanford, President & CEO of Torex stated: "We are on the doorstep of production and would like to take the time to thank all of the supporters that have helped us along this path of turning intention into reality. Construction on the processing plant is now drawing to a close and attention has shifted to managing the ramp-up process. First gold is expected before year-end and a skilled team is in place and prepared to deal with the inevitable challenges. The achievement of commercial production is anticipated for Q2/16 as per the schedule when construction started. The schedule to achieve full production is tracking well with construction activities ahead of schedule on the El Limón crusher and Rope Conveyor. (The conveyor on the RopeCon has now been installed). We look forward to joining the ranks of the producers in the very near term and once again, the efforts of the many contributors, are much appreciated."
Third Quarter 2015 Highlights
The Company continued the development of the El Limón Guajes mine ("ELG Mine"):
Estimated Expenditures for the ELG Mine
The ELG Mine project cost continues to be budgeted at $800 million (excluding capitalized interest costs and fees associated with funding the ELG Mine). As at September 30, 2015, the total amount spent on the development of the ELG Mine was $604 million with a current estimated amount to complete of an additional $196 million. Effectively 100% of the budget had been committed (excluding pre-production costs) and 81% had been invoiced. Further, the Company has identified areas where the majority of the remaining contingency of $25 million will likely be required.
Exploring the Morelos Gold Property
A 1,733 metre in-fill drilling program in the El Limón East area within the El Limón resource was completed in June 2015, with geological logging undertaken during the third quarter of 2015.
Continued Evaluation of the Media Luna Project
During the third quarter of 2015, the Company released a positive Preliminary Economic Assessment (the "PEA") for the Media Luna Project, as well as a new inferred mineral resource estimate, prepared in accordance with NI 43-101, of 7.42 million gold equivalent ounces, including 3.98 million ounces of gold, at a cut-off grade of 2 g/t gold equivalent. The technical report, titled "NI 43-101 Technical Report - El Limón Guajes Mine Plan and Media Luna Preliminary Economic Assessment" (the "Technical Report") is effective August 17, 2015 and was filed on September 3, 2015 and is available on SEDAR at www.sedar.com and on the corporate website. The PEA considers the potential economic viability of developing the Media Luna resource by making use of the infrastructure, social capital and secure work area developed for the ELG Mine. As such, the Technical Report includes both an updated mine plan for the ELG Mine and the PEA for the Media Luna Project.
The PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Financing
During the third quarter of 2015, the Company received three additional draws totaling $80 million from its $375 million 8-year senior secured project finance facility (the "Loan Facility"). The total amount drawn on the Loan Facility was $315 million as at September 30, 2015. In October 2015, a further $35 million was drawn, leaving $25 million yet to be drawn. The total cost estimate remains at $800 million. This cost to complete estimate anticipates the spending of the full contingency.
As at September 30, 2015, the Company had cash and cash equivalents of $74.4 million on a consolidated basis, with a further $44.6 million in restricted cash.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Dawson Proudfoot, P.Eng. Vice President, Engineering of Torex and a Qualified Person under NI 43-101.
About Torex
Torex is a growth-oriented, Canadian-based resource company engaged in the exploration and development 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. Within this property, Torex has two projects: the ELG Mine, currently under development, and the Media Luna Project, at an advanced stage of exploration. Torex intends to identify a pipeline of future economic deposits within its property, which remains 75% unexplored.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Notwithstanding the Company's efforts, there can be no guarantee that the Company will not face unforeseen delays or disruptions.
Forward-looking information also includes, but is not limited to, the capital cost estimate, the availability and performance of construction contractors, suppliers and consultants, the expected completion, commissioning and start-up of the mine and processing facilities of the ELG Mine, expected revenues from operations, the further advances of funds pursuant to the Loan Facility (which are subject to certain customary conditions precedent), safety and security, access to the ELG Mine, and the results set out in the Technical Report including the PEA. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors identified in the Company's annual information form and management's discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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