World News: 11:00 GMT Tuesday 14th January 2020. [Torex Gold Resources Inc. via Globe Newswire via SPi World News]
(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, Jan. 14, 2020 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) expects to produce between 420,000 and 480,000 ounces of gold in 2020, with the mid-point of guidance relatively in line with the 454,810 ounces of gold produced in 2019. Total cash costs are expected to range between $640 and $670 per ounce of gold sold. All-in sustaining costs are anticipated to range between $900 and $960 per ounce of gold sold.
Fred Stanford, President and CEO of Torex, stated:
“In 2020 we expect our El Limón Guajes mine to deliver a similar production result to the record performance achieved in 2019. This level of production with continuing strength in the gold market, positions the Company to deliver another year of strong operating cash flow, which we expect to direct towards advancing Media Luna, testing Muckahi, and reducing outstanding debt.
“Growth related capital expenditures are anticipated to increase year-over-year as we invest $49 million in the Media Luna project. This investment will include a feasibility study, early works to begin the access tunnel to the deposit, and further infill drilling. In addition, we have budgeted capital for the development of the ELD deposit, which will be mined using the Muckahi Mining System. Sustaining capital expenditures are expected to increase relative to 2019 levels. There will be a greater portion of waste stripping being capitalized. There will be investment in rebuilding a large portion of the open pit fleet to extend its life to match the mine life. There is also ongoing underground development and required investment in the processing plant to ensure operating availability through to the end of the mine life of the open pits and beyond for Media Luna.
“Cost guidance has increased relative to 2019 performance, due largely to a change in accounting for stockpile inventory for open pit and underground ore. A second factor is an expected continuation of elevated soluble iron in the ores to be processed. Soluble iron increases reagent costs and, while we are trialing new methods to reduce reagent consumption, we expect the levels of soluble iron in feed that occurred in the latter half of 2019 to continue through 2020.”
The increase in all-in sustaining cash cost guidance reflects the factors noted above, as well as investments in the plant required to sustain production through to and including the development of Media Luna.
The strip ratio for 2020 is expected to be 6.8:1 with approximately 55% of mined waste rock expensed and the remainder capitalized.
Non-sustaining related capital expenditures in 2020 are guided at $82 million. A majority of the growth-related expenditures are expected to be directed towards Media Luna and developing the ELD deposit. The $49 million of investment targeted at Media Luna includes $11 million for a feasibility study, $25 million for tunnel excavation under the Balsas River, and $13 million to complete a subsequent infill drill program, which is expected to be completed in time to include the results in the feasibility study. Capital investment for developing the ELD underground deposit is guided to $27 million, of which $19 million is for underground development and mining activities, which will include the further testing of Muckahi.
The infill drill program completed last year was successful in upgrading 25% of the June 2015 Inferred resource to the Indicated category. An updated resource estimate has been press released with the detailed results. With the feasibility mine plan only able to use Measured & Indicated resources, the Company believes a subsequent infill drill program could be completed in time to be incorporated into the feasibility study. The additional Indicated resources are expected to enhance the mine life outlined in the feasibility study as well as the underlying economics of the project outlined in the feasibility study.
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Globe Newswire: 11:00 GMT Tuesday 14th January 2020
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