The update includes an indicated resource of 12.6 million tonnes grading 3.27 grams per tonne gold, 37.7g/t silver and 1.16% copper for 1.32Moz gold, 15.3Moz silver and 322Mlb copper at a US$1,550/oz gold price, $20/oz silver price and $3.50/lb copper price. It also includes an inferred resource of 33.5Mt grading 2.49g/t Au, 23.6g/t silver and 0.93% copper for 2.68Moz gold, 25.5Moz silver and 686Mlb copper.

The June 2015 estimate contained 51.5Mt grading 4.48g/t gold-equivalent for 7.42Moz gold equivalent using a $1,470/oz gold price, $23/oz silver price and $3.60/lb copper price.

"The purpose of the planned 175-hole infill drill programme was to upgrade about 13Mt (25%) of the inferred resource to the indicated resource category," president and CEO Fred Stanford said.

"The learnings from the infill programme, and other analyses, have led to an updated geological model.

"We are in the planning stage of an additional infill drill programme with a purpose of increasing the tonnes in the indicated confidence class, so as to increase the mine life in the upcoming feasibility study."

Over the coming quarters, Torex will seek to continue to de-risk Media Luna with trade-off studies, upgrading the resource and the completion of a feasibility study in early 2021. This will also include an early works programme to start excavating the access tunnel to the deposit, which it plans to start in the second semester.

Torex has also reported it expects to produce 420,000-480,000oz gold in 2020 at an all-in sustaining cost of US$900-960/oz.

"In 2020 we expect our El Limón Guajes mine to deliver a similar production result to the record performance achieved in 2019. This level of production with continuing strength in the gold market, positions the company to deliver another year of strong operating cash flow, which we expect to direct towards advancing Media Luna, testing Muckahi and reducing outstanding debt," said Sandford.

The company expects to incur $85 million in sustaining capital expenditures during 2020 of which $51 million is related to capitalised waste stripping. The rest is to sustain operations within the open-pit including rebuilding the mining fleet which is nearing end of its recommended life cycle, ventilation and development to open up the underground ore body at depth and processing plant improvements.

Non-sustaining related capital expenditures are guided at $82 million. The majority of growth-related expenditures will be for Media Luna and developing the ELD deposit with $49 million targeted at Media Luna including $11 million for a feasibility study, $25 million for tunnel excavation and $13 million to complete a subsequent infill drill programme. Capital investment for the ELD underground deposit is guided at $27 million, with $19 million for underground development and mining activities, which will include the further testing of Muckahi.

Shares in Torex Gold Resources are trading at C$17.91, valuing the company at $1.5 billion.