Torex Gold Adds EPO Deposit to Morelos Complex

Canada-based Torex Gold announced an updated life-of-mine plan for its Morelos Complex, incorporating its EPO underground deposit following the completion of an internal pre-feasibility study. The company considers the proximity of EPO to the Morelos Complex could create synergies by leveraging existing infrastructure. 

Jody Kuzenko, President and CEO, Torex Gold, noted that the study significantly enhances the company's strategy by leveraging existing infrastructure from the Media Luna Project. The integration of the EPO deposit is expected to establish a production profile of at least 450,000oz/y AuEq through 2030. 

The upfront capital expenditures for EPO are estimated at US$81.5 million, benefiting from the infrastructure investments made for Media Luna. The study suggests that the goal of maximizing mill capacity will be achieved, with a planned processing rate of 10,600t/d.

The EPO deposit, located near Media Luna, is seen as a low-risk addition to the mine plan, and development is scheduled to begin in mid-2025, with first ore production expected in late 2026. Torex Gold considers the EPO deposit to also add exposure to the copper market, with reserves containing over 143Mlb of copper.

Torex Gold updated its five-year production outlook for the Morelos Complex, reflecting an improved forecast for 2028, with production now estimated at 450,000oz to 500,000oz AuEq. The EPO deposit hosts a probable reserve of 781,000oz AuEq, with significant potential for resource upgrades through ongoing drilling, the company notes. 

Underground mining at EPO is anticipated to start in late 2026, with mining rates expected to average 1,680t/d. The ore will be transported to the existing Media Luna ore handling system, and the mining process will primarily involve long-hole open stopping using battery electric equipment. 

Processing of ore from the Morelos Complex will continue through the upgraded facilities, with the integration of the EPO deposit further enhancing the overall production capability of the complex. “With the addition of EPO into the updated mine plan, we have further bolstered the cash flow capability of our world-class asset, with continued upside as the prospectivity of the Morelos property continues to show itself through the drill bit,” Kuzenko added.