Torex Achieves the 2/3rds Completion Milestone at Its Morelos Gold Property and Receives the Fourth Draw on the Debt Facility
TORONTO, ONTARIO--(Marketwired - June 3, 2015) - (All amounts expressed in US dollars) -
Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) is pleased to announce that it achieved the 2/3rds completion milestone in the construction of its flagship El Limon-Guajes Project (the "Project") at its 100% owned Morelos Gold Property in Mexico. The Company also announced that a draw of $50 million on its debt facility was received at the end of May.
Construction: On Schedule for First Gold Pour in Q4/15
Mining continues ahead of schedule with over 800,000 tonnes in stock pile. First gold pour is expected in Q4/15, and the achievement of commercial production status is expected in Q2/16. More than 3000 contractors and employees are engaged in advancing the Project, of which approximately 1100 are direct construction labour on the processing plant site. As of May 31/15, they have passed the milestones of 2/3rds complete for both 'first gold' construction and for 'full production' construction, which includes El Limon. Structural steel erection activity will start to wrap up in the near term, mechanical installation is currently very active, as are the piping and electrical trades. Construction work is effectively completed on the primary crusher. The SAG Mill is ready for its internal rubber lining and the Ball Mill is one step further along and ready for steel liner installation. Electrical infrastructure work is well advanced with connection to the grid expected before the end of July/15. At the filter building, the roof trusses are being placed and the major components of the first tailings filter have been installed.
Milestones during Q2/15 continue on schedule. The first village is nearing completion and relocation is expected to commence in late June / early July. Work on the new Eastern Service Road is winding down and construction supply traffic is now utilizing this road to access the plant site. Doppelmayr's technical team is on site to prepare for the installation of the RopeCon. The concrete works for the lower end of the Rope Conveyor have been completed and the legs for the lower RopeCon tower were erected this week. Last week the first major concrete pour was completed for the upper end of the RopeCon, on the El Limon Mountain, with 863 m3 off concrete placed over 15 hours. In preparation for a Q4/15 start of the processing plant, the hiring and training of the processing plant work force has commenced, so that they are available to participate in the learning's from the commissioning process. Given that we have always mined with our own employees, most of the mining workforce is already in place.
Financing : The Project Remains Fully Funded
The Company received the fourth drawdown on its Project Finance Facility (the "Facility") amounting to $50 million, for a total of $ 205 million drawn to date. The cost to complete estimate remains at $800 million. This cost to complete estimate anticipates the spending of the full contingency, of which $43 million remained unspent as of the end of April. (Contingency was established at $47 million, when the $800 million budget was established in January 2015).
Security: Continues Quiet and Well Supported By State and Federal Forces
The area has been very quiet and the access points to the nearby communities and the Project are secured by the military on one end and the state police on the other. The Company continues to support the 'community police' in their process to achieve formal recognition from the State and Military authorities. When completed, this will provide them with more resources and training. The State Police and Military continue to effectively patrol the area and discussions are underway with the objective of formalizing a commitment for a permanent Federal and/or State security presence.
Torex is a growth-oriented, Canadian-based resource company engaged in the exploration and development of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has two projects: the El Limon-Guajes Project, currently under development, and the Media Luna Project, at an advanced stage of exploration. Torex intends to identify a pipeline of future economic deposits within its property, which remains 75% unexplored.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation.
Notwithstanding the Company's efforts, there can be no guarantee that the Company will not face unforeseen delays or disruptions.
Forward-looking information also includes, but is not limited to, the availability and performance of construction contractors, suppliers and consultants, the expected completion, commissioning and start-up of the mine and processing facilities of the Project, and expected revenues from operations, the further advances of funds pursuant to the loan facility (which are subject to certain customary conditions precedent), safety and security, and access to the Project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors identified in the Company's annual information form and management's discussion and analysis. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contact
Torex Gold Resources Inc.
Fred Stanford
President and CEO
(647) 260-1502
fred.stanford@torexgold.com
Torex Gold Resources Inc.
Gabriela Sanchez
Vice President Investor Relations
(647) 260-1503
gabriela.sanchez@torexgold.com