Canadian mining company, Torex Gold Resources has provided a revised National Instrument 43-101 compliant measured and indicated mineral resource estimate of 4.8 M oz of gold at its Morelos Gold project located in Mexico.
Torex Gold Resources’ President and CEO, Fred Stanford informed that the company is happy to achieve its measured and indicated mineral resource target of 5 M oz of gold at the Morelos gold deposits, which are located on north of the Balsas River. These encouraging results will enable the company to confirm its plans for both the mill and the mine, and finish a feasibility study by July 2012. Stanford further added that the company will now focus its upcoming drilling activity on exploration targets that are located north and south of the Balsas River in order to search for more gold deposits.
A cut-off grade of 0.5 g/t gold and a $1400 / oz gold pit shell were used by the resource estimates. For the Morelos Gold project, the prior gold resource estimates reported in October 2009 used a cut-off grade of 0.9 g/t golf and an $865 / oz gold pit shell. Further specific gravity determinations were done on the extended deposits regions to validate the density values utilized to uphold mineral resource estimation. The total impact of the changes in the subsequent specific gravity, utilized in estimation of the deposits’ tonnages, was to decrease the total gold ounces projected by 4.9%. The company will factor this result in future feasibility study.
Torex Gold Resources is engaged in exploring and developing precious metal resources with a special focus on gold.