Torex expects Media Luna's first copper concentrate production in 1Q25

Toronto-based Torex Gold expects first copper concentrate production from its Media Luna project in Mexico in Q1 and commercial production shortly after, the company said in a release.

CEO Jody Kuzenko said construction of the US$950mn project in Guerrero state is 87% complete and is progressing well. 

Engineering has been concluded, procurement has been reduced to final deliveries, underground development has been ahead of schedule, and underground and surface construction has advanced. Installation of the Guajes conveyor is almost complete, with commissioning expected imminently, she said.

“With the overall project construction period nearing completion, our focus has shifted to refining the plan and schedule for the plant tie-in period,” Kuzenko said. “As a result of modestly longer delivery windows for critical electrical equipment (primarily switchgear) due in part to recent hurricane activity in the Gulf region, we have rescheduled the start of the plant tie-in period from November 2024 to February 2025, with first copper concentrate production expected in Q1 and commercial production shortly thereafter.”

Kuzenko said that with the additional production associated with the pushback in the open pit, a contingency plan had been established for the possibility of a 1Q25 tie-in period. “The overriding business priority has always been centered around readiness to execute the tie-in period and containing this period to no longer than four weeks,” she said.

Torex said that with the tie-in period for the processing plant now scheduled to begin in February, company-wide gold production in 2024 is forecast to be 450,000-470,000oz versus original guidance of 400,000oz-450,000oz, given the additional four weeks of production compared to what was assumed previously.

On a gold equivalent basis, full-year production is now estimated at 460,000-480,000oz from original guidance of 410,000-460,000oz.

“The refined schedule comes with several benefits – most notably increased gold production in 2024 with another four weeks of production. Importantly, the project team will have the opportunity to conduct advance testing on key processing plant systems, thereby potentially reducing the time required to complete the tie-ins and upgrades to less than four weeks as originally scheduled,” Kuzenko said.

Meanwhile, ore production from the El Limón Guajes (ELG) open pits, ELG underground, and Media Luna underground will continue uninterrupted, with ore from Media Luna stockpiled ahead of commissioning the flotation circuits, the company said.

“As at quarter end, US$840mn of project period expenditures had been incurred on Media Luna (including US$114mn during Q3) with just over US$110mn of expenditures remaining,” Kuzenko said. “The remaining spend compares favorably to available liquidity of more than US$345mn at quarter end, implying a funding buffer of US$235mn”. 

The company said that the Media Luna underground mine ramp-up is separate from the completion and commissioning of the processing plant. “As such, the revised plant tie-in schedule will not impact ore production from Media Luna, which will be stockpiled ahead of wet commissioning of the Cu and FeS flotation circuits.”

Torex's principal asset is the Morelos complex, which includes ELG, Media Luna, a processing plant and related infrastructure.