Torex Gold Resources (TSX: TXG) has released its multi-year production outlook for the El Limon Guajes (ELG) gold mining complex 180 km southwest of Mexico City. The mid-range goals are 450,000 oz. in 2022, 225,000 oz. in 2023, and 325,000 oz. in 2024 (excluding Media Luna). ELG is targeted to produce about 450,000 oz. of gold this year.
Output will come from ELG open pits through mid-2024 and stable mining rates from the ELG underground through to at least the end of 2024, and likely longer as exploration continues. Mill throughput will be maintained by processing lower grade stockpiled material until the Media Luna mine comes onstream early in 2024.
Torex is working on a feasibility study for Media Luna, due out in the first quarter of next year. This deposit is mineable from underground and contains copper and silver as well as gold. According to the preliminary economic assessment completed in 2018, the mine has the potential to produce 350,000 oz. of gold equivalent annually over a 10-year mine life.
The after-tax numbers in the PEA outline a net present value (5% discount) of US$582 million and an internal rate of return of 27%, based on a gold price of US$1,200/oz., a silver price of US17/oz. and a copper price of US$3/lb.
The estimated capital outlay for Media Luna would be US$496 million for the underground development and modifications to the ELG mill, which will produce copper-gold-silver concentrate as well as gold-silver doré. All-in sustaining costs were earlier given as US$619 per oz. gold equivalent.
Torex upgraded the resources at Media Luna in April to 20.9 million indicated tonnes grading 3.21 g/t gold, 31.7 g/t silver, and 1.07% copper plus 18.9 million inferred tonnes grading 2.11 g/t gold, 28.2 g/t silver, and 1.04% copper.
Learn more at www.TorexGold.com