Torex Gold Resources Inc. (TSX: TXG) reports Q2 2019 gold production of 113,600 ounces, approximately 12% higher than the previous quarterly production record set in Q3 2018. During the second quarter, 113,400 ounces of gold was sold at an average realized price of $1,313 per ounce, resulting in H1 2019 gold sales of over 189,800 ounces at an average realized price of $1,309 per ounce.
With the quarterly production result, the Company reiterates full year sales guidance of 430,000 ounces (+/- 7%). As originally stated within the January 10, 2019 press release, full year sales guidance is weighted towards the second half of 2019.
Q2 2019 Operational Highlights:
After reconciliations have been completed, gold grades mined, gold grades processed, and gold recoveries will be reported 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. 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!
“In closing, the deposit continued to demonstrate its quality with high grades delivered through the quarter.”
Jody Kuzenko, COO of Torex, added:
“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.”
Commencing in Q2 2019, the Company expects to incur a higher level of depreciation and amortization expense. This relates to a greater portion of capitalized waste incurred in prior quarters being amortized as the associated ore begins to be processed. Based on preliminary estimates, expenses associated with depreciation and amortization in Q2 2019 are expected to increase by $25-$45 per ounce gold sold relative to the level of depreciation and amortization expense reported in Q1 2019.
About Torex Gold Resources Inc.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. The Company’s principal assets are the El Limón Guajes mining complex, comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep, and the processing plant and related infrastructure, which is in the commercial production stage as of April 1, 2016, and the Media Luna deposit, which is an early stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018. The property remains 75% unexplored.
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