Torex Gold: The Blockades Have Ended - Full Access to All Company Facilities Restored
TORONTO, April 06, 2018 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) reports that negotiations between community leaders have resulted in an end to the illegal blockades of the Company’s ELG Mine Complex, supporting infrastructure, and the Media Luna Project, all of which are in southwest Mexico. Processing operations have continued uninterrupted since the restart in mid January. Mining in the El Limon Pit is expected to resume today.
Fred Stanford, President & CEO of Torex stated: “We are more than pleased that we can now get back to unimpeded operations and value creation for the Company’s shareholders and all stakeholders. During the first quarter, the quality of the team, and the asset, were clearly evident as they pulled together under very challenging operating conditions and produced 67,000 ounces of gold in Dore. They also shipped 8000 gold ounces in carbon fines. Looking forward, the operations are well positioned to complete the ramp-up in 2018 and to move forward with optimization and development initiatives.” He added; “A special thanks goes out to the employees, community members, community leaders, and so many others who have provided the support that was necessary to facilitate production during this difficult period, and to peacefully resolve this dispute over union representation.”
The official government-regulated process for selecting between the two competing unions, continues. Since mid-March, there have been two public hearings at the Federal Labour Board, regarding the timing of a union selection vote. It is Torex’s understanding that the public hearing stage of the process is now complete, and that the next stage is a decision as to when and where the vote will occur. As Torex has said since the beginning, the Company will work with whichever union the workers democratically select.
The processing plant has operated continuously since it restarted on January 16th except for planned maintenance activities. In the first quarter, 67,000 ounces of gold were produced in Dore, and an additional 8000 ounces of gold were shipped in carbon fines. The Sub-Sill was re-started one month ahead of schedule, with drifts and ramps advancing 179 meters in March. The underground diamond drilling program also restarted ahead of schedule. Mining in the El Limon Sur Pit progressed on schedule, as did the Guajes East Pit, which is now effectively mined-out. The Guajes West Pit is in a waste stripping phase in 2018, which is the reason the operation will source most of its ore in 2018 from the El Limon Pit, with some contribution from the El Limon Sur Pit and the Sub-Sill. The SART plant construction is substantially complete and commissioning is ongoing. The placement of filtered tailings has been well managed in preparation for the rainy season. Water containment ponds are being drawn down in preparation for the rainy season. Cash reserves at the end of the first quarter were US$124 million, including US$14 million set aside for reclamation obligations. In the first quarter, a US$9.3 million principal repayment was made to reduce the term loan under the debt facility to US$290.7 million.
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. Within this property, Torex has the ELG Open Pits, the ELG Underground Mine, and the Media Luna Project, which is an early stage development project, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Tel. (647) 260-1502
Vice President Investor Relations
Tel. (647) 260-1503
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, including delays and disruptions that may be connected to other illegal blockades in the future. Forward-looking information includes, but is not limited to, statements regarding resuming normal operations, continued unimpeded operations, completing the ramp-up of the operations, creating value for shareholders and stakeholders, resolution of the community tensions, mining of the Guajes East pit, the primary ore source for the remainder of the year, the phase of the Guajes West Pit for the remainder of the year, completing optimization activities, completing development activities including but not limited to the advancement of the Sub-Sill, completing construction and commissioning of the SART plant and expected completion of ramp-up, preparedness for the rainy season, and the union selection vote, including the next step in the process. 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”, “will” or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. 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.