Marketwired
Torex Reports Year End Results
Marketwired

TORONTO, ONTARIO--(Marketwired - Apr 1, 2015) - Torex Gold Resources Inc. (the "Company" or "Torex") (TXG.TO) announced today its financial results for the twelve months ended December 31, 2014 ("Fiscal 2014"). All amounts are expressed in U.S. dollars unless otherwise stated.

2014 REPORT HIGHLIGHTS

Advancement of the El Limón Guajes Project

The Company continued the development of El Limón Guajes Project:

  • Mining of the Guajes pit advanced on schedule through 2014, with approximately 290,000 tonnes of ore stockpiled at year end. Mining of the "North Nose" area of the Project commenced during the year with approximately 95,000 tonnes of ore stockpiled at year end. All mining has remained on schedule to date in 2015;

  • Construction of the processing plant and associated infrastructure advanced on all fronts during 2014.

  • Social issues in the State of Guerrero were a significant factor in a schedule extension from the third quarter of 2015 to the fourth quarter of 2015, for the first gold pour;

  • The development of commissioning plans, training materials, and operating and maintenance procedures were all advanced during 2014;

  • Work on the infrastructure to get the El Limón pit ready for pre-production waste stripping was advanced ahead of schedule in 2014. The El Limón Access Road is completed and the mining for the head end of the Rope Conveyor was substantially complete at year end. The construction for the relocation of the La Fundición village is on track for the village to start the 'move' in the second quarter of 2015;

  • By year end, 4,406,989 hours had been worked on the Project with only one lost time accident.

Estimated Expenditures for the El Limón Guajes Project

The Project cost is budgeted at $800 million(1), which includes a contingency of $47 million. Included in the Project budget is $22 million to advance production from the "North Nose" Pit from the end of mine life to the 2015/2016 period.

As at December 31, 2014, total amount spent on the development of the El Limón Guajes Project was $381 million with a current estimated amount to complete of an additional $419 million. Further details by development area are outlined below:

  • By year end 2014, $88 million had been spent on Mine Capital, which includes costs for the acquisition of mining equipment, the development of haul roads and pre-production stripping of the open pits. It is estimated that $79 million will be spent on Mine Capital prior to the attainment of commercial production status.

  • By year end 2014, $246 million had been spent on Process Plant Capital, which includes costs in connection with the acquisition of process plant equipment, materials and labour to erect the process plant and related infrastructure, Engineering, Procurement, and Construction Management ("EPCM") fees to oversee the construction period, and the relocation of two local villages. It is estimated that a further $317 million of Process Plant Capital will be spent prior to the attainment of commercial production status.

  • By year end 2014, $47 million had been spent on Owner's Costs, which includes costs in connection with the Company's project team, insurance, and certain land lease costs. It is estimated that an additional $23 million of Owner's Costs will be spent prior to attaining commercial production status.

  • As of February 28, 2015, approximately 78% of the budget had been committed and 55% had been invoiced.

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