Torex Gold Resources has released an updated resource estimate for the Media Luna project located in Mexico.
Torex Gold Resources (TSX: TXG) has released an updated resource estimate for the Media Luna project located in Mexico.
The new estimate includes an indicated resource of 2.24 million gold equivalent ounces at a gold equivalent grade of 5.55 g/t and an inferred resource of 4.56 million gold equivalent ounces at a gold equivalent grade of 4.23 g/t.
As quoted from the press release:
Of the gold equivalent metal inventory (comprising the indicated and inferred resource categories), 58 percent of the contained metal value is attributable to gold, 34 percent to copper, and 8percent to silver.
A breakdown of the December 2019 resource estimate by gold, silver, and copper can be found in Table 1 of this press release.
Fred Stanford, President and CEO of Torex Gold, stated:
“The purpose of the planned 175 hole infill drill program was to upgrade approximately 13 million tonnes (25 percent) of the inferred resource to the indicated resource category. The program was successful, 166 holes were drilled, 12.6 million tonnes were upgraded, and there was a modest increase in gold equivalent grade.
“The learnings from the infill program, and other analyses, have led to an updated geological model, which has been applied to the area of the Inferred resource as well. This update has resulted in an increase of 5 million tonnes in the Inferred resource area, which has been offset by a loss of 8 million tonnes due to the use of a more conservative approach to smoothing the boundaries of the resource area. A drill program of 25 holes would be required to qualify these tonnes for consideration in a future resource estimate. We are in the planning stage of an additional infill drill program with a purpose of increasing the tonnes in the Indicated confidence class, so as to increase the mine life in the upcoming feasibility study. We will also consider whether it is worth drilling the 25 perimeter holes now or wait until later.
“Over the coming quarters we plan to continue to advance and de-risk Media Luna. With trade-off studies nearing completion and the upgraded resource in hand, we expect to complete a feasibility study in the next 12 to 14 months. On a parallel path, we have commenced the early field survey and technical study work in support of the permitting/approval process.”