Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased to report that drilling results continue to expand the gold-copper-silver mineralization at its Media Luna discovery located south of the Balsas River, on the Morelos Project in Mexico. In addition, work is continuing on several other high potential targets south of the Balsas River.
Significant intercepts include 5.65 g/t Au, 43.80 g/t Ag and 1.25% Cu over 15.4m in ML-04. A second intercept in ML-04 returned 4.31 g/t Au, 8.12 g/t Ag and 0.4% Cu over 12.7m. Drill hole ML-46A returned two significant intercepts, an upper intercept of 4.6 g/t Au, 5.9 g/t Ag and 0.12% Cu over 7.7m in magnetite skarn adjacent to marble and a second intercept commencing 20 meters further down the hole. The second intercept occurs in magnetite-pyroxene skarn and is significantly thicker, returning 43.9m with 2% Cu, 0.65 g/t Au, and 66.71 g/t Ag. This hole was prematurely stopped within the skarn mineralization and the total width of the lower zone is unknown and will require additional drilling.
Fred Stanford, President & CEO of Torex stated: “It is encouraging to continue intersecting significant gold-copper-silver mineralization at our new discovery located south of the Balsas River and we look forward to testing several other high potential targets in the area. Five rigs are currently drilling the 3.0 km by 1.0 km Media Luna magnetic anomaly target, and two additional rigs have recently started drilling the nearby Media Luna West magnetic anomaly target. The apparent tabular-shaped skarn at Media Luna appears to have continuity at the contact between the marble and intrusive. To date, Media Luna has shown the potential for the mineralized thickness to reach at least 44 meters and given the total high value of the mineralization, the target size, and its proximity to our planned mill, we will continue to aggressively drill the Media Luna targets to determine their economic potential as quickly as possible.”
Highlights of drill results at Media Luna
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Intersection Core Au
—————- Length Au Ag Cu Equivalent
BH I.D. From (m) To (m) (m) (g/t) (g/t) (%) (g/t) Lithology
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ML-04 463.27 476.00 12.73 4.31 8.12 0.43 5.11 Skarn
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ML-04 525.80 541.19 15.39 5.65 43.80 1.25 8.34 Skarn
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ML-15 351.92 363.68 11.76 2.61 7.36 0.53 3.54 Skarn
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ML-36 337.00 340.65 3.65 0.93 107.31 2.64 6.87 Skarn
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ML-46A 521.72 529.43 7.71 4.59 5.90 0.12 4.88 Skarn
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ML-46A 548.97 592.83 43.86 0.65 66.71 2.02 4.91 Skarn
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ML-75 357.70 362.75 5.05 0.75 75.86 1.96 5.09 Skarn
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The gold equivalent grade, including copper and silver values, is based on
100% metal recoveries. The gold grade equivalent calculation used is as
follows:
Au g/t (EQ) = Au g/t + (Cu grade x ((Cu price per lb/Au price per oz) x
0.06857 lbs per oz x 10000 g per%)) + (Ag grade x (Ag price per oz/Au price
per oz)).
The metal prices used were: Gold – $1600/oz, Copper – $3.50/lb, Silver –
$29.59/oz
Please refer to Table 1 for an expanded description of the intercepts and Figures 1-5 for drill hole locations.
The Media Luna target, located adjacent to regional faults, was identified using aeromagnetics, surface geochemistry and geological mapping. The area is characterized by a structurally complex sequence of Morelos Formation (marble and limestone) and Mezcala Formation (shale and sandstone) within a geological setting broadly similar to the Guajes-El Limon deposit, located to the north of the Balsas River. The El Limon stock borders the sedimentary package at the north end of the Media Luna prospect and dips to the south-southwest beneath the sedimentary rocks. The Media Luna mineralization exhibits a higher iron and sulfide content than is observed at Guajes-El Limon, with significant copper.
As presently modeled, the prospect area is defined by a sharp and intense magnetic high with dimensions of approximately 3 km x 1 km. The magnetic high defines the footprint of an extensive magnetite-pyrrhotite-bearing skarn at depth. The entire Media Luna target is considered prospective for skarn-style gold and copper mineralization where calcareous sedimentary rocks are in contact with the granodiorite intrusive.
The potential quantity and grade of the exploration targets are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.
Conference Call
Torex will host a conference call on Wednesday, September 5, 2012 at 11:00 a.m. EST where senior management will discuss the BFS and these exploration results, and will be available to respond to questions from analysts and investors. Those interested in participating in the conference call should dial in at (toll free North America) 877-407-8031 or (international) 201-689-8031. To listen to the audio webcast online go to www.torexgold.com and click on Conference Call Audio Webcast.
The conference call will be recorded and playback of the call will be available after the event by dialing (toll free North America) 877-660-6853 or (international) 201-612-7415. Replay pass code account #: 286, Conference ID#:399812. This replay will be available for one month.
QA/QC and Qualified Person
At the Morelos Gold Project, all of the Media Luna target analytical work is performed by SGS de Mexico S.A. de C.V. (“SGS”) and/or Acme Analytical Laboratories Mexico S.A. de C.V. (“ACME”). Sample preparation is done at a dedicated sample preparation laboratory operated by SGS at Durango, Mexico, and/or at a dedicated sample preparation laboratory operated by ACME at Guadalajara, Mexico. The gold analyses (fire assay with an atomic absorption or gravimetric finish) and multi-element geochemical analyses are completed by SGS at their analytical facilities in Durango, Mexico and Vancouver, British Columbia, Canada, respectively. The gold analyses (fire assay with an atomic absorption or gravimetric finish) and multi-element geochemical analyses are completed by ACME at their analytical facilities Vancouver, British Columbia, Canada.The Company has a Quality Assurance/Quality Control (“QA/QC”) program in place that includes 2% of each of the certified reference materials, blanks, field duplicates and preparation duplicates for the grassroots exploration drilling program, with the objective of the QA/QC program to ensure the batch to batch relative bias remains constant and that absolute accuracy at anomalous to near cut-off grades is measured and acceptable. The QA/QC program as designed has been approved by AMEC and is currently overseen by Cristian Puentes, Chief Exploration Geologist for the Morelos Gold Project.
The scientific and technical data contained in this news release pertaining to the Morelos Project has been reviewed and approved by Mr. Barton Suchomel as a Qualified Person under NI 43-101. Mr. Suchomel is a Fellow of the Australasian Institute of Mining and Metallurgy and has experience relevant to the style of mineralization under consideration. Mr. Suchomel consents to the inclusion in this release of said data in the form and context in which it appears.
Torex Gold Resources Inc. is a growth-oriented, Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, a development stage gold property, located 180km southwest of Mexico City in the highly prospective Guerrero Gold Belt. Torex is aggressively exploring within its property to identify a pipeline of additional future economic deposits. The Project covers an area of 29,000ha of which more than 75% still remains unexplored.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the initial drill program at its Media Luna target and the results of the program contained herein. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates” or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors identified in the Company’s annual information form. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company’s exploration results and the Company’s plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
To view Table 1, please visit the following link: http://media3.marketwire.com/docs/94txgtable1.pdf
To view Figures 1-5, please visit the following link: http://media3.marketwire.com/docs/TXGFigures1-5.pdf
