Torex Gold Resources Inc. is a well funded, growth oriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City.
Torex "within a whisker" of 5 mln ounce resource goal
Toronto-based Torex Gold Resources (TSE:TXG) on Friday said it came "within a whisker" of its five-million ounce resource goal at the company’s Mexican Morelos project, reporting 4.8-million in measured and indicated ounces of gold.
In its latest N1 43-01 report, the company updated the measured and indicated mineral resource estimate at Morelos, which contains two known gold deposits, located 180 km southwest of Mexico City in the highly prospective Morelos gold belt.
The project covers an area of 29,000 hectares of which more than 75 percent remains unexplored.
The 4.8-million ounce gold resource was at a grade of 2.79 grams per tonne (g/t), the company said.
Torex CEO Fred Stanford said the information allowed the company to finalize plans for a 14,000 tonnes per day (tpd) mill at the mine, and complete a feasibility study by the end of July 2012.
"We are very pleased to be within a whisker of our [measured and inferred] resource target of five million ounces of gold at the two known Morelos gold deposits north of the Balsas River," Stanford said.
"In addition, we can now concentrate the majority of our future drilling efforts on exploration targets south and north of the Balsas River in the search for additional gold deposits."
Torex noted that its resource statement benefited significantly from higher gold prices. The company used a price of $1,400 per ounce (oz) for the pit shell and a cut-off grade of 0.5 g/t.
The total measured and indicated resource now stands at 53.8 million tonnes grading 2.79 g/t gold and 4.84 g/t silver, for 4.8 million ounces of gold and 8.4 million ounces of silver.
In total in the inferred category, the report showed 620,000 ounces gold and 1.39 million ounces silver contained in 10.7 million tonnes at 2.0 g/t gold and 4.0 g/t silver.
Torex, which changed its name from Gleichen Resources and listed in February after buying Morelos from Teck Resources (TSE:TCK.B) in 2009, aims to fund the project’s construction through a combination of debt and equity, and said it has already engaged banks in this regard.
The company aims to start construction early next year, with first output slated for 2015.
The mineral resource estimate is based on 1,206 drill holes, or 187,943 metres of drilling.
Torex Gold Resources is a Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold.
Torex’s stock was trading at $1.69 Friday, up 1.81 percent.