|TORONTO, Ontario, October 19, 2012 – Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) is pleased to report that the first two holes drilled into its Media Luna West target have returned high-value, gold-copper-silver mineralization of significant thickness. Borehole SS-06 delivered 14.6m with Au eq. grade of 8.76 g/t. Borehole MLW-04 delivered 39.4m with Au eq. grade of 4.00 g/t The Media Luna Area contains three magnetic anomaly targets that cover approximately 500 hectares. Media Luna West is the second of these targets to be drill tested and is located approximately 1.4 km to the west of the main Media Luna target. The third target is scheduled to be tested later in the drill program and as well, there are several other magnetic anomaly targets in close proximity to the Media Luna Area, at the Morelos Gold Project in Mexico. |
In addition, seven new drill holes were completed at the Media Luna target. Borehole SS-02 extended the strike length of the Media Luna discovery by 55% to 1.85 km and delivered 13.9m with Au eq. grade of 6.47 g/t. Other boreholes tested the eastern and western boundaries of the anomaly. Significant intercepts include 56.8m with Au eq. grade of 4.41 g/t in borehole ML-09A; 47.3m @ Au eq. grade of 4.70 g/t in borehole ML-72, and 18.4m @ Au eq. grade of 8.38 g/t in borehole ML-05A.
Fred Stanford, President & CEO of Torex stated: “This new discovery at Media Luna West with excellent thicknesses and grades appears to be down dip of the Media Luna discovery and continues to validate the geological model that provides the targeting focus for our exploration team. Meanwhile, at Media Luna, we have now drill tested across the full width of the magnetic anomaly and over 1.85 km of its 3 km long axis. Each borehole in this set of results intersected the gold-copper-silver mineralization, with encouraging grades and thicknesses. The apparent tabular-shaped skarn in the Media Luna Area appears to have continuity at the contact between the marble and intrusive. Drill results have shown the potential for the mineralized thickness to reach as much as 56.8 metres. Given the total high value of the mineralization, the target size, and its proximity to our planned mill, we plan to continue aggressively drilling the Media Luna Area targets to determine their economic potential as quickly as possible.”
Highlights of drill results at Media Luna West
Highlights of drill results at Media LunaTrue thickness of the mineralized zone is unknown and is reported as drill hole length. 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 a complete list and expanded description of the intercepts and Figures 1-4 for borehole 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 elevated copper.
As presently modeled, the Media Luna prospect area is defined by a sharp and intense magnetic high with dimensions of approximately 3 km x 1 km. The Media Luna West prospect area is also defined by a sharp and intense magnetic high with dimensions of approximately 1 km x 1 km. These magnetic highs appear to define the footprint of a large magnetite skarn at depth. The entire Media Luna target is considered prospective for skarn-style gold 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 and 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.
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”) in Mexico 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 the project site in Nuevo Balsas, Guerrero, 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 at an analytical laboratory operated by SGS at the project site in Nuevo Balsas, Guerrero, Mexico and at their analytical facilities in 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 is a growth-oriented, Canadian-based resource 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 project, located 180 kilometres southwest of Mexico City in the highly prospective Morelos Gold Belt. Torex is aggressively exploring within its property to identify a pipeline of additional future economic deposits. The project covers an area of 29,000 hectares of which more than 75% remain unexplored.
For further information, please contact:
TOREX GOLD RESOURCES INC.
President and CEO
Tel. (647) 260-1502
Email: [email protected]
Vice President Investor Relations
Tel. (647) 260-1503
Email: [email protected]
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 the Company’s 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 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 current 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. 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.
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