Torex Gold Outlines Exploration Strategy for Morelos Property

Torex Gold Resources outlined a multi-year exploration strategy for its Morelos property in Guerrero. The plan aims to expand mineral resources, discover new deposits, and extend the mine life at Morelos, ensuring stable production and cash flow beyond 2033. The company is optimistic as over 75% of the Morelos property remains unexplored. 

Since 2021, Torex Gold's exploration efforts have concentrated on maintaining near-term production and identifying future sources of ore to sustain the mill beyond 2027. The company plans to shift its focus to demonstrating the long-term potential of Morelos. This will involve delineating new deposits within the Media Luna Cluster and exploring promising targets such as Todos Santos, El Naranjo, and Atzcala. “In order to prioritize these targets to align within the company's strategic priorities, our exploration team has developed a systematic approach for evaluation on both a geologic and economic basis, culminating in the development of a new multi-year exploration and drilling strategy,” says Jody Kuzenko, President and CEO, Torex Gold.

The exploration strategy is structured around three main areas: extending mine life, expanding resources within the Media Luna Cluster, and advancing regional targets. The approach involves delineating higher-value ore to extend the life of the ELG Underground and Media Luna mines through infill and near-mine step-out drilling; enhancing the production profile by unlocking the potential of zones like Media Luna, EPO, Media Luna West, Media Luna East, and Todos Santos; and strengthening the exploration pipeline to deliver new discoveries across the Morelos land package by prioritizing targets such as El Naranjo, Atzcala, Esperanza, Querenque, Tecate, El Olvido, and Victoria.

Torex Gold is optimistic about its new approach due to the complexity and promising geology of the Morelos land package, which spans 29,000ha, of which, only 75% has been explored. The property hosts skarn, intermediate sulfidation (IS), and carbonate replacement deposit (CRD) styles of mineralization. The company's exploration approach analyzes recent and historical drilling data to refine the geological model and enhance target prioritization. “The US$31 million average annual investment in drilling and resource expansion since 2021 and US$30 million budgeted for 2024 demonstrate the company's strategic priority of unlocking the full mineralized potential of Morelos,” reads Torex Gold’s press release. 

The 2024 drilling program will focus on key targets within the ELG Underground and Media Luna Cluster. For ELG Underground, the drilling will explore intersections along the La Flaca and Z71 faults. The Media Luna Cluster, which includes the Media Luna and EPO deposits, will see further drilling to define the resource potential of Media Luna West and Todos Santos. The regional exploration budget includes US$3 million for drill testing at El Naranjo and geological evaluation at Atzcala. Additional exploration efforts will also focus on identifying new structural corridors north of the Balsas River.

Torex Gold's exploration pipeline also includes longer-term targets like Querenque, Tecate, Esperanza, El Olvido, and Victoria. These areas will be evaluated and advanced as appropriate over the coming years, the company said.