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Torex Announces Record Quarterly Gold Production

Torex Gold Resources Inc. is happy to announce the Q2 2019 gold production of 113,600 oz., about 12% more than the earlier quarterly production record fixed in Q3 2018. During the second quarter, 113,400 oz. of gold was sold at an average realized price of $1,313 per oz., resulting in H1 2019 gold sales of more than 189,800 oz. at an average realized price of $1,309 per oz.

With the quarterly production outcome, Torex reiterates complete year sales guidance of 430,000 oz. (+/-7%). As initially stated in a previous press release, full-year sales guidance is weighted towards the second half of 2019.

Operational Highlights: Q2 2019

  • Total gold production: 113,600 oz.
  • Underground ore production averaged 1,280 tpd
  • Plant throughput averaged 11,670 tpd
  • Open pit strip ratio was 6.8:1
  • Open pit ore production averaged 18,600 tpd

After reconciliations have been finished, gold grades mined, gold recoveries, and gold grades processed will be conveyed with the Q2 2019 financial results.

Fred Stanford, President and CEO of Torex, stated:

“Q2 was a notable quarter from a number of perspectives. Record total ounce production has been highlighted already. The one million ounce milestone was also surpassed in the quarter. The mining team produced at record levels, both in ore mined in the open pits 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.”

He added, “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.”

The Muckahi team also had an excellent quarter. They demonstrated the effectiveness of the drilling system (Jumbo) on the level and have now turned their attention to demonstrating that the system is effective on a -30 degree down ramp. In five rounds they have completed the transition from a level tunnel to a -30 degree down ramp. In July they will push forward with the down ramp and initiate the testing of the slusher based muck removal system. Interesting times!

Fred Stanford, President and CEO, Torex

He continued, “In closing, the deposit continued to demonstrate its quality with high grades delivered through the quarter.”

Jody Kuzenko, COO of Torex, commented: “We are pleased with the ounces delivered in the quarter. This result will bring us nicely in line with where we expected to be relative to guidance as we head into the second half of this year. Both the open pit and the underground mines have safely produced at rates that exceeded plan, and we have stabilized on recoveries and reagent consumption through the process plant.”

We had some late quarter unplanned maintenance in the mill which impacted availability and masked some of the gains we have made on throughput. These unrelated events led to availability of 80% in June versus 93% achieved in May. As we head into Q3, we will continue our focus on reducing unplanned downtime through our bottleneck SAG circuit, and continue our focus on cost containment initiatives, all with a view to further improving on cash flow out of ELG.

Jody Kuzenko, COO, Torex

Beginning of Q2 2019, Torex supposes it will incur a higher level of depreciation and amortization cost. This relates to a larger portion of capitalized waste suffered in previous quarters being amortized as the associated ore starts to be processed. Based on initial estimates, expenses related to depreciation and amortization in Q2 2019 are estimated to increase by $25-$45 per oz. gold sold, proportionate to the level of depreciation and amortization expense reported in Q1 2019.


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