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"The Torex team has been tested and strengthened by the challenges"

Torex Gold Resources (TSX: TXG) says it has emerged from a challenging period in a stronger position and is looking to the opportunities ahead to create shareholder value.
"The Torex team has been tested and strengthened by the challenges" "The Torex team has been tested and strengthened by the challenges" "The Torex team has been tested and strengthened by the challenges" "The Torex team has been tested and strengthened by the challenges" "The Torex team has been tested and strengthened by the challenges"

Puts challenging period behind it

Staff reporter

"The Torex team has been tested and strengthened by the challenges that we have managed in the past six months," president and CEO Fred Stanford said.

The company shut down its flagship El Limon-Guajes gold mine in Mexico in November in response to what it described as an illegal blockade by workers demanding a change in union representation.

Torex regained partial access to the ELG complex earlier this year and the blockade was fully lifted last month, and the Los Mineros Union withdrew its bid to represent employees.

Stanford said 2018 promised to be a catalyst rich year for value-creating opportunities, including advances in through-put, the Sub-Sill ramp-up and an updated preliminary economic assessment for its nearby Media Luna gold project.

Torex said its team had delivered a strong operating performance in the first quarter, despite the El Limon pit being inaccessible during the blockade.

The company generated a net income of US$10.2 million and had a cash balance at the end of March of $124.4 million.

It produced 67,167 ounces in dore and 8,887oz in carbon fines, at an all-in sustaining cost of US$954 per ounce of gold sold.

This compares with 70,887oz produced in the first quarter of 2017, at an AISC of $923/oz.

Torex said it had restarted mining Sub-Sill in March, a month ahead of schedule and said its SART plant construction was on track to be fully operational at the start of July.

It also released a maiden reserve and mine plan for ELG underground during the quarter, which would require $23 million in capex to produce 180,000oz over 29 months.

Torex shares have ranged between $7.29 and $26.23 over the past year, hitting a 52-week low in early April then soaring more than 51% when the blockade was removed from its Mexican assets. 

Its shares rose to C$13.46 intraday but eased to close up 2.44% at $13.01.

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