Torex Gold Resources Inc. outlined a resource estimate for the Media Luna project in Mexico of 12.6 million tonnes containing 2.24 million gold equivalent ounces grading 5.55 g/t in the indicated category, using a cutoff grade of 2 g/t gold equivalent.
The inferred resource now stands at 4.56 million gold equivalent ounces contained in 33.5 Mt at a gold equivalent grade of 4.23 g/t.
The company said Jan. 13 that 58% of the contained metal value is attributable to gold, 34% to copper and 8% to silver.
The previous resource estimate released in June 2015 comprised 51.5 million tonnes at a gold equivalent grade of 4.48 g/t containing 7.42 million gold equivalent ounces at the same cutoff grade and assuming metal prices of US$1,470 per ounce of gold, US$23 per ounce of silver and US$3.60 per pound of copper.
President and CEO Fred Stanford said a 166-hole infill drill program upgraded about 12.6 Mt of the inferred resource to the indicated category.
The company expects to complete a feasibility study on the project in the next 12 to 14 months, and early field survey and technical study work is already underway to facilitate the permit issuing process.
Torex plans to start excavating the access tunnel to the deposit in the second half this year. Development will be funded through cash flow from the El Limon-Guajes mine in Mexico.