Torex Gold Resources announced assay results from its ongoing drilling program at the El Limon Guajes (ELG) underground operations in Guerrero. The new data supports Torex's objective of extending the mine life beyond 2028 by identifying higher-grade mineralization zones, expanding resources, and increasing reserves.
Initial results from the 2024 drilling program have shown potential for significant growth in mineral resources and high-grade mineralization. The company considers it reinforces Torex Gold's strategy of maintaining an annual gold equivalent production above 450,000oz through 2033.
Among the key findings, drill hole LS-310 at the El Limon Sur trend returned an intercept of 7.19g/t gold equivalent (AuEq) over 12.2m, indicating that mineralization may extend to the south and at depth. Additionally, drill hole LDUG-321 confirmed high-grade intercepts of 10.70g/t AuEq over 3.1m and 3.42g/tAuEq over 3m.
Drilling at the El Limon Deep trend revealed that five out of six holes encountered high-grade mineralization. Notably, drill hole LDUG-315 returned intercepts of 14.29g/t AuEq over 5.4m and 11.16g/t AuEq over 15.3m, including 20.72g/t over 4m. At the Sub-Sill trend, drill hole LDUG-317 returned significant intercepts of 11.82g/t AuEq over 5m and 19.85g/t AuEq over 8.5m, confirming the continuity of high-grade mineralization to the north of the main ore shoot.
Torex has allocated US$12 million for drilling and exploration at ELG Underground in 2024. By the end of April 2024, the company had drilled approximately 8,709m across 27 holes. The ELG Mine Complex is situated in the Guerrero Gold Belt in southwest Mexico, with gold mineralization primarily occurring in a skarn body developed along the northeast contact of the ELG granodiorite stock. The skarn zone, characterized by calcic gold-skarn systems, contains significant gold mineralization associated with pyroxene-rich exoskarn and garnet-rich endoskarn affected by retrograde alteration.
Torex's ongoing drilling and exploration efforts aim to support the extension of high-grade mineralization along the El Limon Sur, El Limon Deep, El Limon West, and Sub-Sill trends, in alignment with the broader exploration strategy the company published earlier in June 2024. “This further demonstrates that the true mineralization potential of this orebody is yet to be fully realized. We continue to see ELG Underground as a deposit that year-over-year can consistently deliver resource growth and reserve replacement, which is expected to result in significant cash flow generation that will support the growth of Torex across the Morelos Property and beyond,” says Jody Kuzenko, President and CEO, Torex Gold. a