Torex Gold Reports Compelling New Results from the 2024 ELG Underground Drilling Program

2024-12-02

TSX - Toronto Stock Exchange · Gold · Silver · Copper · Canada

Results continue to indicate impressive grades and ongoing potential to expand resources and replace mined reserves

(All amounts expressed in U.S. dollars unless otherwise stated)

Toronto, Ontario--(Newsfile Corp. - December 2, 2024) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX: TXG) announces further assay results from the Company's 2024 drilling program at ELG Underground. The results to date support the Company's target of extending the mine life of ELG Underground by identifying new zones of higher-grade mineralization, expanding resources, and replacing and growing reserves.

Jody Kuzenko, President & CEO of Torex, stated:

"Results from the ongoing drilling program at ELG Underground continue to demonstrate the long-term potential of the deposit following an impressive track record of success delivered over the last several years. The latest assay results highlight the ability to upgrade Inferred Resources to Indicated Resources and support our target of replacing most of the reserves mined year-to-date.

"Additionally, surface mapping along the northern extension of the El Limón West Trend has indicated that mineralization could extend north towards the La Flaca fault. This discovery, combined with the fact that mineralization in multiple areas remains open along trend and at depth, is further evidence that we are still in the early stages of unlocking the full potential of ELG Underground, which, in turn, supports our optimistic view on the long-term prospects for the deposit.

"With Media Luna nearing completion, the expected pivot to positive cash flow mid-next year, and our ongoing drilling success, we are planning to increase our exploration budget even further in 2025. This will support our goal of sustaining annual production above 450,000 gold equivalent ounces beyond 2030 and underscores our belief that we will be mining at Morelos for decades to come."

HIGHLIGHTS

Drilling results through the first nine months of 2024 demonstrate the potential to upgrade Inferred Resources to Indicated Resources with the year-end 2024 reserve and resource update in each of the identified mineralized trends, as well as the ability to expand Inferred Resources.

El Limón Sur Trend

At the El Limón Sur Trend, Resource Delineation drilling has delivered compelling results with intercepts returning higher than anticipated grades, particularly within the north ore shoot. The best results from drilling in this area include drill hole LDUG-350 (27.72 grams per tonne gold equivalent ("gpt AuEq") over 18.8 metres ("m")), LDUG-351 (45.16 gpt AuEq over 3.1 m), LDUG-356 (94.30 gpt AuEq over 6.1 m, including 151.67 gpt AuEq over 3.7 m), and LDUG-390 (23.51 gpt AuEq over 5.1 m). These results support upgrading Inferred Resources to Indicated Resources.

The Advanced Exploration program at the southern ore shoot continues to extend mineralization to the south as shown by the intercepts reported in drill holes LS-332 (10.37 gpt AuEq over 3.5 m) and LS-339 (6.35 gpt AuEq over 6.3 m). The mineralized intercepts of drill holes LS-339, LS-342 (18.67 gpt AuEq over 2.4 m), LS-343 (5.25 gpt AuEq over 10.0 m), and LS-344 (9.44 gpt AuEq over 5.6 m)confirm mineralization extends at depth, which will be further explored through infill drilling in 2025.

El Limón Deep Trend

The Resource Delineation program at the El Limón Deep Trend has confirmed the continuity of high-grade mineralization along a southwest plunge with multiple intercepts with core lengths in excess of 4 m and grades over 5 gpt AuEq, including drill hole LDUG-382 (8.41 gpt AuEq over 4.6 m, 18.34 gpt AuEq over 11.2 m, and7.94 gpt AuEq over 5.5 m).

Sub-Sill Trend

At the Sub-Sill Trend, the mineralized intercepts of drill holes SST-349 (19.17 gpt AuEq over 13.0 m)and SST-351 (14.84 gpt AuEq over 9.5 m)located immediately to the north of a production front confirm the extension of high-grade mineralization in this area. Drilling at depth has also confirmed continuity of mineralization. Results support the potential to expand Indicated Resources in this area. Along the extension of the Sub-Sill Trend north of the La Flaca fault, drilling results support the recategorization of Inferred Resources to Indicated Resources.

El Limón West Trend

Drill holes LS-322 (8.55 gpt AuEq over 3.9 m and 13.64 gpt AuEq over 11.0 m)and LS-324 (26.46 gpt AuEq over 5.5 m)confirm mineralization extends to the south and at depth up to 600 m above sea level ("m.a.s.l.").

Surface mapping identified the northern extension of the El Limón West Trend, confirming the mineralization continuity intercepted by drill hole LS-316 (4.55 gpt AuEq over 6.3 m; press release dated June 27, 2024) and validated by drill hole LS-317 (3.96 gpt AuEq over 5.3 m). The results indicate potential structural continuity from the defined resource body to the north towards the La Flaca fault.

2024 ELG UNDERGROUND DRILLING & EXPLORATION PROGRAM

The 2024 ELG Underground drilling and exploration program is focused on Resource Delineation and Advanced Exploration, targeting current Inferred Resources and the main extensions of high-grade mineralization along the El Limón Sur, El Limón Deep, Sub-Sill, and El Limón West trends.

Torex has budgeted $12 million towards drilling and exploration for ELG Underground in 2024. Drilling is progressing well with six rigs currently working in the area. As of the end of September, 29,442 m of the 43,200 m of drilling forecast for the year was completed.

Figure 1: Plan view of ELG Underground. The 2024 program to date has been focused on resource categorization and testing mineralization extensions beyond the boundaries of known resources.

[](https://images.newsfilecorp.com/files/1863/232143_8f14474034d14a0d_001full.jpg)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/1863/232143_8f14474034d14a0d_001full.jpg

Detailed drill results are reported in Table 5 (El Limón Sur Trend), Table 6 (El Limón Deep Trend), Table 7 (Sub-Sill Trend), and Table 8 (El Limón West Trend). Drill hole intercepts are core lengths with true widths for infill holes ranging between 80-100% of core length. True widths will be determined for brownfield and step-out holes once the geological modelling to define the ore controls is completed.

AuEq grades use the same metal prices ($1,650/oz gold ("Au"), $22/oz silver ("Ag"), and $3.75/lb copper ("Cu")) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral resource estimate for ELG Underground (AuEq (gpt) = Au (gpt) + Ag (gpt) 0.0127 + Cu (%) 1.6104).

EL LIMÓN SUR TREND (FIGURE 2)

Drilling along the El Limón Sur Trend is concentrated in two areas. At the northern ore shoot, results from the Resource Delineation program have been positive, returning multiple high-grade intercepts with over 5 m in core length, supporting the recategorization of a high volume of Inferred Resources to Indicated Resources with the year-end 2024 mineral reserve and resource update and indicating the potential extension of mineralization at depth.

At the southern ore shoot, Advanced Exploration drilling following up on the deepest high-grade intercepts encountered in 2023 (LS-293 which returned 20.74 gpt AuEq over 4.6 m; press release dated November 16, 2023 and LS-295 which returned 29.88 gpt AuEq over 9.6 m; press release dated February 26, 2024) has successfully proven the continuity of the mineralization at depth as shown by drill hole LS-342 (18.67 gpt AuEq over 2.4 m), LS-343 (5.25 gpt AuEq over 10.0 m), and LS-344 (9.44 gpt AuEq over 5.6 m).

Table 1: Recent highlights from the 2024 drilling program along the El Limón Sur Trend

Including | 42.0 | 51.6 | 9.6 | 12.39 | 5.6 | 0.15 | 12.69 | | 55.5 | 74.2 | 18.8 | 26.69 | 21.1 | 0.47 | 27.72 | | | 62.6 | 65.2 | 2.6 | 121.69 | 49.4 | 0.48 | 123.08 | | | 160.7 | 168.0 | 7.3 | 17.78 | 16.3 | 0.45 | 18.70 | | | LDUG-351 | 158.6 | 161.7 | 3.11 | 41.08 | 75.5 | 1.94 | 45.16 | | LDUG-352 | 132.8 | 136.1 | 3.3 | 9.67 | 9.2 | 0.13 | 10.00 | | LDUG-353 | 210.6 | 216.0 | 5.4 | 4.53 | 27.2 | 0.81 | 6.19 | | LDUG-356 Including | 130.2 | 136.3 | 6.09 | 94.09 | 12.9 | 0.03 | 94.30 | | 132.6 | 136.3 | 3.7 | 151.34 | 20.0 | 0.04 | 151.67 | | | LDUG-364 | 83.0 | 91.3 | 8.3 | 5.15 | 13.9 | 0.57 | 6.24 | | LDUG-367 | 247.4 | 254.5 | 7.1 | 8.59 | 0.8 | 0.01 | 8.62 | | LDUG-375 | 53.0 | 57.7 | 4.67 | 9.50 | 76.3 | 0.43 | 11.15 | | LDUG-383 | 38.8 | 50.5 | 11.8 | 5.30 | 8.9 | 0.83 | 6.75 | | LDUG-387 | 34.4 | 38.3 | 3.9 | 12.21 | 17.8 | 0.92 | 13.91 | | LDUG-390 | 45.9 | 51.0 | 5.12 | 23.48 | 1.4 | 0.00 | 23.51 | | LS-330 | 169.4 | 172.0 | 2.7 | 4.88 | 29.8 | 0.59 | 6.21 | | LS-332 | 49.5 | 53.0 | 3.5 | 10.33 | 1.4 | 0.01 | 10.37 | | LS-338 | 51.0 | 56.0 | 5.0 | 4.68 | 26.6 | 1.15 | 6.87 | | LS-339 | 143.5 | 149.8 | 6.3 | 5.90 | 14.5 | 0.16 | 6.35 | | LS-340 | 90.0 | 93.1 | 3.1 | 8.82 | 62.1 | 0.08 | 9.74 | | LS-342 | 267.1 | 269.5 | 2.4 | 4.04 | 206.8 | 7.45 | 18.67 | | LS-343 | 254.0 | 264.0 | 10.0 | 0.99 | 119.5 | 1.70 | 5.25 | | LS-344 | 346.8 | 352.4 | 5.6 | 7.24 | 37.3 | 1.07 | 9.44 |

Notes to Table:

1) Drill hole intercepts are core length with true widths ranging between 80-100% of core length. True widths will be determined for brownfield and step-out holes once the geological modelling to define the ore controls is completed. Core lengths reflect drilling core recovery of 98%. 2) The gold equivalent grade calculation used is as follows: AuEq (gpt) = Au (gpt) + Ag (gpt) 0.0127 + Cu (%) 1.6104 and use the same metal prices ($1,650/oz Au, $22/oz Ag, and $3.75/lb Cu) and metallurgical recoveries (90% Au, 86% Ag, and 93% Cu) used in the year-end 2023 mineral resource estimate for ELG Underground. 3) All assay results are uncapped. 4) Core lengths subject to rounding.

Drilling has also extended shallow mineralization to the south from 50 m below surface, as shown by the intercepts of holes LS-332 (10.37 gpt AuEq over 3.5 m) and LS-339 (6.35 gpt AuEq over 6.3 m). The follow-up drill holes LS-339, LS-342, LS-343, and LS-344 encountered mineralization at depth, up to 600 m.a.s.l., with core lengths over 5 m and grades exceeding 5 gpt AuEq. A Resource Delineation program will commence when the underground mine development reaches this area in 2025.

EL LIMÓN DEEP TREND (FIGURE 3)

At the El Limón Deep Trend, infill drilling is exploring its intersection with the El Limón Sur Trend. Drilling has been focused on upgrading Inferred Resources to Indicated Resources and adding new Inferred Resources in the southwest-plunging mineralized zone. The results have been positive, with multiple intercepts over 4 m and grades exceeding 5 gpt AuEq confirming the southwest plunge of high-grade mineralization and the potential for new Indicated and Inferred Resources.

The most notable drill hole in the area is LDUG-382 with multiple mineralized intercepts within the Inferred Resource envelope (8.41 gpt AuEq over 4.6 m, 18.34 gpt AuEq over 11.2 m, and 7.94 gpt AuEq over 5.5 m) that, in conjunction with drill hole LDUG-386 (5.61 gpt AuEq over 8.0 m), extends the mineralization at depth. These drill holes could represent a mineralized feeder related to the intersection with the structure that controls the El Limón Sur Trend's mineralization that will be subject to follow-up drilling in 2025. Drill holes LDUG-380 (6.65 gpt AuEq over 11.5 m), LDUG-381 (12.26 gpt AuEq over 3.2 m), and LDUG-332 (8.25 gpt AuEq over 9.3 m) extend mineralization to the southwest, suggesting continuity to the intersection with the El Limón West Trend's mineralized structure.

Table 2: Recent highlights from the 2024 drilling program along the El Limón Deep Trend

| Drill Hole | From (m) | To (m) | Core Length1 (m) | Au (gpt) | Ag (gpt) | Cu (%) | AuEq2 (gpt) | | LDUG-332 | 229.9 | 239.2 | 9.3 | 4.29 | 42.6 | 2.12 | 8.25 | | LDUG-340 | 177.8 | 193.2 | 15.5 | 7.39 | 11.4 | 0.47 | 8.30 | | LDUG-343 | 174.0 | 178.6 | 4.6 | 4.93 | 23.9 | 0.64 | 6.27 | | 187.2 | 193.0 | 5.9 | 7.58 | 16.9 | 0.56 | 8.69 | | | LDUG-347 | 160.2 | 166.7 | 6.5 | 3.24 | 28.8 | 1.87 | 6.61 | | 186.8 | 191.3 | 4.5 | 3.33 | 39.8 | 1.67 | 6.53 | | | LDUG-357 | 215.3 | 219.5 | 4.2 | 4.79 | 46.9 | 1.29 | 7.45 | | LDUG-380 | 185.6 | 197.1 | 11.5 | 5.96 | 14.6 | 0.32 | 6.65 | | LDUG-381 | 54.9 | 58.0 | 3.2 | 11.40 | 11.9 | 0.44 | 12.26 | | LDUG-382 | 161.5 | 166.1 | 4.6 | 8.02 | 9.3 | 0.17 | 8.41 | | 188.5 | 199.6 | 11.2 | 17.86 | 10.6 | 0.21 | 18.34 | | | 220.5 | 226.0 | 5.5 | 7.14 | 19.6 | 0.34 | 7.94 | |

Notes to Table:

SUB-SILL TREND (FIGURE 4)

Resource Delineation work is being undertaken along the Sub-Sill Trend, focused on the main ore shoot at the central area of the trend. The objective is to extend mineralization to the north of the current production front and to upgrade Inferred Resources around 560 m.a.s.l., approximately 80 m below the current operation depth.

Seven holes totaling 1,277 m were drilled at the Sub-Sill Trend since the last ELG Underground drilling and exploration results were released in June 2024. Four of these drill holes located immediately to the north of a production front confirm the extension of high-grade mineralization in this area, indicating the potential to expand Indicated Resources in this direction. The mineralized intercepts of drill holes SST-349 (19.17 gpt AuEq over 13.0 m) and SST-351 (14.84 gpt AuEq over 9.5 m) indicate the potential continuity of high-grade mineralization towards the La Flaca fault. Furthermore, drilling results at depth indicate potential for the expansion of Indicated Resources with the year-end 2024 update.

Additionally, the Resource Delineation program to the north of the La Flaca fault continues to be successful, most notably by drill hole LDUG-333 (5.49 gpt AuEq over 3.3 m and 9.34 gpt AuEq over 9.9 m). The mineralization here has resulted in a new production front accessed by Portal 3.

Table 3: Recent highlights from the 2024 drilling program along the Sub-Sill Trend

| Drill Hole | From (m) | To (m) | Core Length1 (m) | Au (gpt) | Ag (gpt) | Cu (%) | AuEq2 (gpt) | | LDUG-333 | 157.0 | 166.9 | 9.9 | 8.71 | 4.2 | 0.36 | 9.34 | | SST-347 | 160.0 | 164.4 | 4.4 | 3.67 | 28.8 | 1.40 | 6.30 | | SST-349 | 66.6 | 79.6 | 13.0 | 18.89 | 4.0 | 0.14 | 19.17 | | SST-351 | 67.6 | 77.2 | 9.5 | 14.77 | 2.7 | 0.02 | 14.84 |

Notes to Table:

EL LIMÓN WEST TREND (FIGURE 5)

Advanced Exploration drilling at the El Limón West Trend has mainly been focused on the southern extension, with five drill holes confirming that mineralization extends to the south and at depth down to 600 m.a.s.l. Resource Delineation drilling immediately below open pit development returned intercepts that indicate strong potential to upgrade Inferred Resources to Indicated Resources in this area.

Additionally, surface mapping testing the northern continuity of the El Limón West Trend has identified favorable alteration and mineralization. Drill holes LS-316 and LS-317 depict similar alteration and mineralization close to surface, with values greater than 3 gpt AuEq and core-length widths exceeding 4 m that appear to be related to the structural control of mineralization at El Limón West. The latter potentially extends mineralization more than 700 m to the north of current resources, towards the La Flaca fault. Additional drilling in this area will be undertaken as part of the 2025 Advanced Exploration program.

Table 4: Recent highlights from the 2024 drilling program along the El Limón West Trend

| Drill Hole | From (m) | To (m) | Core Length1 (m) | Au (gpt) | Ag (gpt) | Cu (%) | AuEq2 (gpt) | | LS-317 | 66.4 | 71.7 | 5.3 | 3.94 | 1.0 | 0.00 | 3.96 | | LS-321 | 167.3 | 170.5 | 3.2 | 9.38 | 146.9 | 2.76 | 15.69 | | LS-322 | 280.5 | 291.4 | 11.0 | 12.36 | 36.3 | 0.51 | 13.64 | | LS-324 | 244.6 | 252.3 | 7.7 | 5.63 | 27.8 | 0.30 | 6.47 | | 260.0 | 265.5 | 5.5 | 25.70 | 25.6 | 0.27 | 26.46 | |

Notes to Table:

ELG MINE COMPLEX GEOLOGY

The ELG Mine Complex, located in the central part of the Guerrero Gold Belt in southwest Mexico, is hosted in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills, and dikes, and the uplifting of the block close to surface by maar-diatreme complexes.

Skarn-hosted gold mineralization develops along contacts of the intrusive rocks and carbonate-rich sedimentary rocks of the Cuautla and Morelos formations, as well as along the footwall contact of the Mezcala Formation. At depth, the mineralization has a strong structural control related to the main stages of deformation, with the collision of allochthonous terrain being responsible for the major north-south faults, while the almost east-west faulting is associated with the beginning of the subduction process.

Gold mineralization at ELG occurs in spatial association with a skarn body that was developed along a two-kilometre-long corridor following the northeast contact of the ELG granodiorite stock. The skarn zone that occurs at the marble stratigraphic level of the Morelos Formation is in contact with hornfels developed in the Mezcala Formation. At El Limón, skarn mineralization is also structurally controlled by north-south and north-east trending faults. Early-stage deposition corresponds to skarn alteration and mineralization at ELG and is fairly typical of calcic gold-skarn systems. Zones of coarse, massive, garnet-dominant skarn appear within and along the stock margin, with fine-grained pyroxene-dominant skarn more common at greater distances from the contact with the stock. Significant gold mineralization at ELG is spatially associated with the skarn, preferentially occurring in pyroxene-rich exoskarn but also hosted in garnet-rich endoskarn that has been affected by retrograde alteration, which suggests that the most important gold event is strongly related to bismuth, late stage, and of epithermal origin.

Dikes and sills are found to crosscut the hornfels and marble along the structural trends mentioned above and are spatially associated with the skarn formation. In some cases, these are the ore control of main gold mineralization stage at depth.

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Torex Gold Reports Results From The Ongoing 2024 EPO Exploration Program 2024-11-13
Torex Gold Reports Q3 2024 Results 2024-11-06