Currently viewing Global edition

Torex posts record June-quarter output

Canada’s Torex Gold Resources has reported record production in the three months ended June 30 from its Morelos property on the Guerrero Gold Belt, 180km southwest of Mexico City.
Torex posts record June-quarter output Torex posts record June-quarter output Torex posts record June-quarter output Torex posts record June-quarter output Torex posts record June-quarter output

Torex has reported record production in the three months ended June from its Morelos property in Mexico’s Guerrero Gold Belt

Staff Reporter

The company produced 113,600oz in the period, an improvement of about 12% over the previous quarterly production record set in the September quarter last year.

Improved performance at El Limón Guajes was underpinned by average plant throughput of 11,670t/d, underground ore production of 1,280t/d, and openpit ore production of 18,600t/d.

Torex reiterated full-year sales guidance of 430,000oz.

"Q2 was a notable quarter from a number of perspectives. Record total ounce production has been highlighted already. The 1Moz milestone was also surpassed in the quarter," said CEO Fred Stanford.

"The mining team produced at record levels, both in ore mined in the openpits and underground. Throughout the quarter the processing team made progress in reducing reagent consumption and, late in the quarter, they made improvements in throughput rates per hour. Overall, quarterly throughput was hampered by unrelated unplanned downtime in late June.

"The team has work to do to increase the predictive and preventative aspects of maintenance."

Stanford said the Muckahi development team also had an "excellent quarter".

"They demonstrated the effectiveness of the drilling system on the level and have now turned their attention to demonstrating that the system is effective on a -30-degree down ramp," he said.

In five rounds, the team had completed the transition from a level tunnel to a 30-degree down ramp, he said. "In July, they will push forward with the down ramp and initiate the testing of the slusher-based muck removal system. Interesting times."

Torex is pioneering the potentially disruptive Muckahi concept, which is being developed as an alternative underground mining method. Torex believes the approach can bring a 30% reduction in underground capital spending requirements, and a 30% reduction in opex, and accelerate the company's return on investment by up to 80%.

It is using the Muckahi approach in the design and development of the nearby Media Luna deposit.

Torex shares (TSX:TXG) gained 3.1% or C41c in Toronto on Tuesday to close at $13.62, which capitalises the company at $1.16 billion.