Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (January 2017)
40 slides from Torex Gold Resources's investor presentation, January 2017
Slide 1: +370,000 Au Oz. / Year of High Margin Production with a Growth Project of Similar Quality
TSX: TXG January 2017 +370,000 Au Oz. / Year of High Margin Production with a Growth Project of Similar Quality
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (THE ‘MEDIA LUNA PEA” OR “PEA”) IS BASED ON THE TECHNICAL REPORT (DEFINED BELOW). THE PEA IS A CONCEPTUAL STUDY OF THE POTENTIAL VIABILITY OF MINERAL RESOURCES OF THE MEDIA LUNA PROJECT. THE PEA IS NOT A PREFEASIBILITY STUDY OR FEASIBILITY S
Slide 3: Torex – The Investment Thesis
Torex – The Investment Thesis Focussed exposure to a large, high margin, gold asset… EL LIMON – GUAJES MINE (ELG) (1) (2) +370,000 oz./yr. for 8.5 years, from 2015 reserves of 3.63M Au oz. High grade, 2.6 g/t open pit, LOM AISC of $616/oz. High grade, near mine, upside potential from the Sub-sill ta
Slide 4: Balance Sheet
Balance Sheet ELG was financed with equity and project debt… Cash position at end of Q3/16 Project financing: $112 million $300M @ LIBOR + 4.75% $75M @ LIBOR + 5.75% Shares outstanding Cash accumulates at the project level 80 million until a ‘90 day full production completion Market Cap, Jan. 12, 20
Slide 5: Operating Results
Operating Results Cash flow positive, operations are ramping up … Q3/16 2016 2017E GOLD PRODUCTION (oz) 77,915 279,937 350,000 - 380,000 HEAD GRADE (g/t) 3.13 - - TOTAL CASH COST ($/oz) 517 - 525 – 575 AISC ($/oz) 699 - 775 – 825 OPERATING CFPS cents/share) 64 - - % Q2 10.1K TPD 82 Q3 2016 Plant thr
Slide 6: Recoveries Tracking to Design and Better
Recoveries Tracking to Design and Better The ramp-up focus is now on the tailings filtration bottleneck… De-bottleneck the Tailings SART Plant to address soluble Filtration Plant: copper in the process: Refine operating and Cost $23 million maintenance procedures Payback: 12-18 months De-link the fi
Slide 7: Tested Management Team
Tested Management Team Proven ability to navigate the technical, commercial,… FRED STANFORD PEng DAWSON PROUDFOOT PEng CEO V.P. Engineering 35 years of experience, primarily in operations at 30 years of experience in engineering and Inco / Vale. Retired from Vale as President of operations, primaril
Slide 8: A Board with Strong Strategic and Governance Experience
A Board with Strong Strategic and Governance Experience Deep experience gained as industry professionals… TERRY MACGIBBON PGeo, ICD DAVID FENNEL LLB Board Chair, Compensation Committee Chair Safety, Health, & Corporate Responsibility Committee Chair 45 years of mining industry experience. Founder, C
Slide 9: The Foundation of Value - A High Quality Property in the Middle of the Guerrero Gold Belt
The Foundation of Value - A High Quality Property in the Middle of the Guerrero Gold Belt A 29,000 Ha land package that is less than 25% explored... ...has already delivered ELG , the ML Project, and the sub-sill 9
Slide 10: A High Quality Asset Made Better by Technical Innovation to Control Costs and Reduce Risk
A High Quality Asset Made Better by Technical Innovation to Control Costs and Reduce Risk Filtered tails means no risk of tailings dam failures, the RopeCon… ...generates electricity and delivers negative ore transport costs 10
Slide 11: Social Innovation Leverages the Technical Innovation to Increase Output, Reduce Risk, and Build Brand
Social Innovation Leverages the Technical Innovation to Increase Output, Reduce Risk, and Build Brand An operating strategy that moves past the technical processes… An external stakeholder experience of the company that leads to the stakeholders wanting to see the company succeed A workplace experie
Slide 12: The Technical and Social Innovations are Working Well
The Technical and Social Innovations are Working Well Poured first gold in December 2015, and… ...as Dec. 31, 2016, ELG had poured 279,937 ounces of gold 12
Slide 13: Reconciliation Against the Geological Model Has Been Variable. In Aggregate, the Variability Has Been Positive
Reconciliation Against the Geological Model Has Been Variable. In Aggregate, the Variability Has Been Positive Grade to Q3/16 has been 1% above model expectations... ...tonnage 3% above, for 4% more gold than planned 13
Slide 14: With ELG Delivering, There Are Many 'What's Next?' Opportunities
With ELG Delivering on Ounces, Grade, Costs and Social License – There Are Many ‘What’s Next?’ Opportunities Near term - El Limon Deep & Sub-sill, Mid term - Media Luna… …Long term – Many highly magnetic targets, +porphyry? 14
Slide 15: Near Term Opportunity - Mineral Resources Under The El Limon Pit Accessed by Tunnel
Near Term Opportunity - The Mineral Resources Under The El Limon Pit Will Be Accessed by A 600m Tunnel There is exploration potential between EL Limon & ELS… (1) Guajes A 650m tunnel, Known high grade (6 months), will access resources that are the ‘under the pit’ under the El Limon Pit, resources. b
Slide 16: Impressive Results from the Initial Sub-Sill Drilling
Impressive Results from the Initial Sub-Sill Drilling 3.4m of 317 g/t Au draws the eye, further results are pending… …a step-out program is being planned, resource estimate in Q2/17 16 (1) Inferred resource is included within the Mineral Resource Estimate for El Limon-Guajes. For more information re
Slide 17: The Current Sub-Sill Mineralization is Open in Three Directions
The Current Sub-Sill Mineralization is Open in Three Directions The step-out program will test the extent of the current lenses… …an intriguing question is whether there are deeper skarns 17
Slide 18: The Sub-Sill will be Accessed by a 600m Ramp from Surface
The Sub-Sill will be Accessed by a 600m Ramp from Surface The ramp has advanced more than 150m towards the target… Ramp …and will be developing into the mineralized area by year end 18
Slide 19: The Ramp is Advancing Approximately 4 Meters per Day
The Ramp is Advancing Approximately 4 Meters per Day Pictures on the left show good ground conditions in the ramp… …on the right, core from above, and in the mineralized zone 19
Slide 20: Media Luna as a Mid Term Growth Opportunity is Advancing through Land Acquisition and Permitting
Media Luna as a Mid Term Growth Opportunity is Advancing through Land Acquisition and Permitting ‘Gold’ bars – ELG production as per 2015 LOM... The Media Luna PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to have the econom
Slide 21: Media Luna Continues the Pattern of Low Risk Technical Innovation and Elegant Design
Media Luna Continues the Pattern of Low Risk Technical Innovation and Elegant Design Potential to double the ounces produced by the plant... Resources have been estimated for 1/3 of the associated magnetic anomaly (1) PEA Capex - $482M Cash cost: $571 / Au Eq. Oz. AISC: $636 / Au Eq. Oz. (1) As per
Slide 22: Lots of Potential Beyond Media Luna and the 'Sub-Sill'
Lots of Potential Beyond Media Luna and the ‘Sub-Sill’ We have done the ‘science’ but haven’t started drilling… We believe that a porphyry ‘fed’ the current deposits. That ‘feeder’ system has yet to be found, plus there are many other magnetic anomalies to explore …for the system that ‘fed’ the exis
Slide 23: A Beautiful Asset – Are the Guerrero State Risks Overstated and can they be Managed?
A Beautiful Asset – Are the Guerrero State Risks Overstated and can they be Managed? The management team has consistently… Social complexities – For 6+ years we have consistently sought to act in a manner that was received in the local culture as – Honest, Trustworthy, Fair, Loving, Dignifying, and
Slide 24: Torex – The Investment Thesis
Torex – The Investment Thesis Focussed exposure to a large, high margin, gold asset… EL LIMON – GUAJES MINE (ELG) (1) (2) +370,000 oz./yr. for 8.5 years, from 2015 reserves of 3.63M Au oz. High grade, 2.6 g/t open pit, LOM AISC of $616/oz. High grade, near mine, upside potential from the Sub-sill ta
Slide 25: Standing on the El Limon Crusher, Looking Down the Path of the RopeCon
Standing on the El Limon Crusher, Looking Down the Path of the RopeCon, the Plant, Nuevo Balsas Village, and the Caracol Reservoir in the Background 25
Slide 26: El Limon Crusher and Top End of the RopeCon
El Limon Crusher and Top End of the RopeCon 26
Slide 27: RopeCon – Commissioned
RopeCon – Commissioned 27
Slide 28: Guajes Crusher / Stacker Conveyor, Discharging SAG Mill Feed onto the Fine Ore Stockpile
Guajes Crusher / Stacker Conveyor, Discharging SAG Mill Feed onto the Fine Ore Stockpile 28
Slide 29: Ball Mill and SAG Mill
Mill Ball Mill and SAG + tt a ell a) nN Sa iii
Slide 30: Tailings Filters
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Slide 31: Filtered Tailings Conveyed to the Disposal Area
Filtered Tailings Conveyed to the Disposal Area 31
Slide 32: Mining at Guajes
Mining at Guajes ey ee
Slide 33: El Limon Mining – Drilling Off the Next Bench
El Limon Mining – Drilling Off the Next Bench 33
Slide 34: Constructing the Road From El Limon Pit to the El Limon Crusher (Now Completed)
Constructing the Road From El Limon Pit to the El Limon Crusher (Now Completed) 34
Slide 35: Resettlement of El Limon New Village: Completed
Resettlement of El Limon New Village: Completed 35
Slide 36: Addendum
Torex’Gold RESOURCES INC. Addendum
Slide 37: El Limon Guajes Resources
El Limon Guajes Resources El Limon Guajes Mineral Resources Estimate – Effective December 31, 2015 Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Measured 7.45 2.56 3.80 0.61 0.91 Indicated 25.17 2.57 5.09 2.08 4.12 Measured and Indicated
Slide 38: El Limon Guajes Reserves
El Limon Guajes Reserves El Limon Guajes Mineral Reserve Estimate – Effective December 31, 2015 Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Proven 6.33 2.65 3.50 0.54 0.71 Probable 20.33 2.60 4.58 1.70 2.99 Proven and Probable 26.66 2.
Slide 39: Media Luna Deposit Inferred Mineral Resource Estimate at a 2.0 g/t Au Eq. Cut-off Grade
Media Luna Deposit Inferred Mineral Resource Estimate at a 2.0 g/t Au Eq. Cut-off Grade. Resource Tonnes Gold Eq. Contained Gold Contained Silver Contained Copper Contained Deposit Category (Mt) Grade Gold Eq. Grade Gold Grade Silver Grade Copper g/t (Moz) (g/t) (Moz) g/t (Moz) % (Mlb) Media Luna In
Slide 40: For further information: Gabriela Sanchez, VP Investor Relations
For further information: Gabriela Sanchez, VP Investor Relations email: gabriela.sanchez@torexgold.com - Mobile: (416) 357-6673 - www.torexgold.com
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