Asset, Team, Game Changing TechnologyThu, 10/17/2019 - 12:08
Torex Gold (TSX: TXG) is an intermediate gold producer focused on developing a sustainable, multi-asset mining business. From inception, Torex has embraced innovation to protect the environment, improve safety, and build productive relationships with all stakeholders. The foundation of Torex has been built around the El Limón Guajes mine (ELG), located in Guerrero State, Mexico. The company current focus is to leverage the strong free cash from ELG to pay down longterm debt and advance value creating opportunities.
The first of these opportunities is the Media Luna project, which has the potential to extend the mine life of the complex for a decade, if not more. Torex recently finished off an infill diamond drill program at Media Luna, with the aim of upgrading 25 percent of the current inferred resource to the indicated category. With final assays now arriving, The company anticipates releasing an updated resource estimate before the end of 2019. The updated resource estimate will pave the way for a feasibility study, which they anticipates could be ready to release to the market towards the end of 2020.
The second value creating opportunity is the innovative Muckahi Mining System. Torex expects utilizing Muckahi could reduce underground mining costs by up to 30 percent, reduce capital expenditures related to underground by mining by up to 30 percent, and significantly speed up the time to develop an underground mine. The company also expects a Muckahi operation will be a safer mine and generate significantly less greenhouse gas emissions than a conventional operation. By the end of 2019, Torex expects to have proven up the key components of Muckahi and will look to test the full system in 2020. The company anticipates Muckahi will become a key value driver as Torex looks to grow the business in an accretive and effective manner.