Torex Gold Ore Recovery Expected to Ramp Up in Remainder of 2022
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Torex Gold Ore Recovery Expected to Ramp Up in Remainder of 2022

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Mon, 04/18/2022 - 08:43

Torex Gold announced that it saw solid operations and sales during 1Q22 and expects to improve further during the rest of 2022 as it will recover more ore after a transition to different areas in the El Limón Guajes (ELG) open pit.

In a press release, Torex reported that during 1Q22, the company produced 112,440 oz of gold, had an average plant production of 12,600t/d, an average of 1,260t/d of ore mined underground and an average of 11,780t/d of ore mined in the open pit.

The company explained that ore recoveries during 1Q22 were affected by lower recovery levels at the ELG open pit. However, this is expected to improve as the company transitions to different areas of the ELG open pit.

“We had a solid start to the year with Q1 gold production of 112,440oz, slightly ahead of budget given higher than anticipated processed grades. With a solid start to the year and the expectation that production will further increase in 2H22, we are well on track to deliver the full year production guidance of 430,000 to 470,000oz of gold,” said Jody Kuzenko, President and CEO, Torex Gold.

In a previous interview with MBN, Faysal Rodríguez, Vice President Mexico, Torex Gold, explained that the ELG open pit will be depleted in 2023. Consequently, the company is planning a smooth transition to its Media Luna (ML) operation in 2024. Recently, Torex announced that its board of directors approved ML’s development, which is expected to have a life of 12 years.

In a previous press release, Torex explained that although ML’s development is a challenging project due to its distance from the company's current structure and a metallurgy complex, it was approved it due to its high potential and feasibility.

Torex announced ML’s approval is a milestone for the company: in addition to creating a multi-decade mining operation, the miner will diversify its metal production toward copper, which is a great opportunity considering the current market environment. The company expects 20 percent of the Morelos Complex's total revenue to come from copper, a figure that could grow over time. The company told MBN that it is beneficial to move slightly outside of the gold market, where companies are “somewhat forced to be price-takers,” according to Kuzenko. 

“Advancing the ML project is fundamental to setting up our wholly owned flagship Morelos Complex for safe and reliable production, strong free cash flow past the construction period and lasting economic prosperity for all of those who share stakes in Torex. With this investment, the foundation for the future growth plans of Torex will be firmly laid,” she added.

Photo by:   Torex Gold

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