PRECIOUS METALS

Torex continues ELG production ramp-up

Torex Gold Resources produced 354,000 ounces of gold in 2018 with its El Limón Guajes Compplex.

Staff Reporter
El Limón Guajes (ELG) in Guerrero, Mexico

El Limón Guajes (ELG) in Guerrero, Mexico

Production at ELG, which started in December 2015, reached a commercial level in April 2016. Site production facilities have a design capacity of 14,000 tonnes per day. Throughput averaged 13,000tpd in the fourth quarter of 2018, leading president and CEO Fred Stanford to comment in a news release that, "there is some work left to do to get to the design level."

Torex said 2019 production would be 430,000oz gold at an all-in sustaining cost of US$790/oz, plus or minus 7%. The company is yet to report its 2018 financials but previously gave guidance that its AISC cost range for the year would be US$940 to $975/oz.

This year will also see the company invest $18 million in its Media Luna project that hosts inferred resources of 7.4Moz Au-eq at 4.48g/t. A September 2018 preliminary economic assessment outlined an underground operation with expected production of 3.9Moz Au-eq at an average AISC of $619/oz Au-eq and initial capital of $496 million.

In addition, Torex plans to investment $8 million in further development of its Muckahi Mining System (MMS) concept that aims to "challenge the status quo in many ways with the goal of establishing more efficient and cost-effective alternatives to established mining processes".

Using a mucking machine and tramming conveyor, it aims to create a more continuous mining process that can accelerate return on investment by eliminating the need for storage processes by aligning the rates and availability of transformation and/or transport processes. "The first Muckahi machine was designed and built in 2018 and we plan to use it to start breaking rock in Q1/2019," Standford said.

 

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