Torex Gold swells underground reserves at Mexico mine

Torex Gold reported a sharp rise in underground reserves at its El Limón-Guajes (ELG) asset in Mexico, as the company prepares for an end to open pit operations.

Contained gold in underground proven and probable reserves increased by 140% to 360,000oz at end-2019 from 150,000oz a year earlier, the company said in a statement.

Measured and indicated underground resources contained 650,000oz gold, a 151% rise from 260,000oz at end-2018, while inferred underground resources grew to 450,000oz from 240,000oz.

Proven and probable open pit reserves declined to 2.26Moz from 2.48Moz, due to depletion.

“By the beginning of 2024, the open pit portion of ELG will be mined out and Torex expects to be mining exclusively from underground resources, primarily from Media Luna,” CEO Fred Stanford said.

The company plans to continue exploration to upgrade underground resources to reserves before that, he added.

In 2020, exploration will continue under the El Limón pit at the Sub-Sill and ELG deposits.

At Media Luna, the company will be targeting upgrading part of a 4.56Moz gold equivalent inferred resource to the indicated category in a 2020 infill drill program.

ELG ranks among Latin America’s biggest gold mines.