Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (May 2012)
28 slides from Torex Gold Resources's investor presentation, May 2012
Slide 1: Developing the Morelos Gold Project
TSX: TXG Developing the Morelos Gold G Project May, 2012
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information regarding future exploration and development plans concerning the Morelos gold pr
Slide 3: Our strategy
Our strategy Straightforward... • Build a mine • Find another one on the same property ...and it hasn’t changed 3
Slide 4: Executing on the strategy
Executing on the strategy We started from scratch two years ago... Hired executive, geological, Developed D l d governmentt relations l ti logistics and development teams Continue drilling program with Established two field camps regular exploration updates and one prep lab Renewed land ac
Slide 5: Results – Since first exploration update Dec./10
Results – Since first exploration update Dec./10 The strategy has delivered 17% returns... ...and there is lots left to deliver 5
Slide 6: What do we have to work with?
What do we have to work with? Lots of cash on hand to do everything that... • $90 million cash May 15, 2012 TXG: C$1.55 • No debt 413 million shares issued M k t cap $640M Market • Large and growing, growing high-grade, open pitable high-grade ‘open pitable’ gold deposit ...has to be done before a c
Slide 7: Where will we spend the cash?
Where will we spend the cash? In both aspects of the strategy... • Find a mine: ~$30M North ~$12M South ~$18M • To build a mine: ~$25M Feasibility ~$5M Early works ~$15M, depending on permits it Land lease agreements ~$5M ...with more this year on exploration 7
Slide 8: Who makes it happen?
Who makes it happen? Experienced board... Terry MacGibbon, B.Sc., P.Geo., ICD.D Chairman of the Board, Fred Stanford, P.Eng Chairman of the SHE Committee, Director President & CEO Fred Stanford, P.Eng. Andrew Gottwald, CA President & CEO, Director Chief Financial Officer Andrew Adams, B.Sc., ACA (UK
Slide 9: A quality asset - In a great neighbourhood
A quality asset - In a great neighbourhood 29,000 hectares in a great region for gold... 45º 24º Nuevo Balsas Guajes El Limon 22º 38º 30º 40º 25º 20º 35º Hydrothermal Granodiorite system outline 60º Mezcala Fm: Shale Cuautla Fm: Lst+shale 2 km Morelos: Limestone 20º ...and much more intrusive perime
Slide 10: New resource estimate north of the river
New resource estimate north of the river Delivered 4.8 million oz at 2.79 g/t (M&I)... 2 Closing GE-EL gap 1 + GE South extension Closing GE-GW gap 64.5m @ 1.30g/t 8.0m @ 3.88g/t Guajes East 38.9m @ 32.29g/t 7.8m @ 15.73g/t 5 EL Southeast 50.5m @ 6.60g/t extension Guajes j West El 7.50m @ 13.5g/t Li
Slide 11: A quality asset - Exploration north of the river
A quality asset - Exploration north of the river 4 drills will test new areas... Tecate Pacifico Corona 1 Drill Rig Querenque Guajes South Limon Sur 1 Drill Rig 2 Drill Rigs Azcala ...with an initial program of 35,000m 11
Slide 12: A quality asset - Exploration south of the river
A quality asset - Exploration south of the river 6 drills (35,000 meters) will test new areas... El Cristo 2 Drill Rigs Azcala Media Luna Naranjo Todos 3 Drill Rigs 1 Drill Rig Santos La Fe Cuchillo ...for continuity of the mineralizing system 12
Slide 13: A quality asset – Building the mine
A quality asset – Building the mine The engineering is well advanced... El Limon Guajes South Pit Dump El Limon Guajes Pit Dump Guajes North Dump p Guajes East Dry Stack Dump Tailings Processing facilities ...building mine roads will be on the critical path 13
Slide 14: Mine building – Managing the community risks
Mine building – Managing the community risks Ejido land lease agreements were completed... El Limon Balsas Ejido Ejido Village to be relocated Processing facilities ...including the land of the villages to be relocated 14
Slide 15: Mine Building – Managing the risks to water
Mine Building – Managing the risks to water Dry stack tailings, no dams with potential to fail... Guajes North Dump p Dry Stack Tailings Processing facilities ...and tailings water is recovered and recycled 15
Slide 16: Mine Building – Reducing safety and energy risks
Mine Building – Reducing safety and energy risks RopeCon – a proven technology... El Limon p pit El Limon Dump Processing facilities ...that will generate power and improve safety 16
Slide 17: Mine Building – Managing the capital risks
Mine Building – Managing the capital risks Straight forward construction... New access road New road Hydro Plant Morelos Morelos 5 km 5 mi ...with infrastructure close by 17
Slide 18: Getting ready for the project build stage
Getting ready for the project build stage Pulling together the high level team... • Dawson Proudfoot will lead from corporate • Recruiting R iti now for: f o Mine manager o Mill manager • EPCM Contractor has been selected ...and they will pick their teams 18
Slide 19: Who is going to build it?
Who is going to build it? A project that is going to be built... M3 Engineering of Tucson, Arizona Lead consultant, responsible El for overall document process and infrastructure design Limon AMEC MiningPit& Metals Consulting of Sparks, Nevada Responsible espo s b e for o resource esou ce est estima
Slide 20: 2012 will be a transformational year
2012 will be a transformational year Major advances toward production... T k Task 2012 2013 2014 2015 Land lease agreements New resource estimate Bankable feasibility study Permits Construction decision Construction Commissioning Production Exploration results ...and rapid advance on the exploration
Slide 21: Torex - An easy story to tell
Torex - An easy story to tell A great investment... High-grade, large, growing, open pitable gold deposit Energized team Exploration p upside p for the long g term New resource completed and FS in the near term $90 million in cash to do what needs to be done ...for the short and long term 21
Slide 22: Appendix
TSX: TXG Appendix
Slide 23: Morelos Mineral Resource Estimate at a 0.5 g/t Au Cutoff Grade
Morelos Mineral Resource Estimate at a 0.5 g/t Au Cutoff Grade. Effective date is 4 May, 2012 Deposit Resource Tonnes Gold Grade Gold Ounces Category (Mt) (g/t) (000’s) El Limon M&I 32 1 32.1 3 04 3.04 3 135 3,135 Guajes M&I 21.7 2.42 1,689 Total M&I 53.8 2.79 4,824 El Limon Inferred 8.3 2.0 543 Gua
Slide 24: The strategy has delivered for investors
The strategy has delivered for investors The junior gold space has been a tough market... Spot gold Spot Gold 18% T Torex Torex 17% Belo Sun Belo Sun 2% Trelawney Trelawney (21%) Detour Detour (27%) Extorre Extorre (39%) Eco Oro Eco Oro (50%) Rubicon Rubicon (52%) Probe Orezone Probe (55%) Note: Rel
Slide 25: Analyst Coverage
Analyst Coverage BMO Capital Markets Macquarie Research Analysts: Andrew Breichmanas, P.Eng Analyst: y Pierre Vaillancourt Tel. (416) 359 8387 Tel. (416) 848 3647 Email: Andrew.breichmanas@bmo.com Email: pierre.vaillancourt@macquarie.com Dundee Securities Corporation Scotia Capital Analyst: Ron Stew
Slide 26: Anomalous Areas South of the Balsas River
Anomalous Areas South of the Balsas River If the river is a fault... ...there is no obvious displacement 26
Slide 27: Morelos: A World-Class Deposit
Morelos: A World-Class Deposit 4 Morelos 3 Meadowbank P Perama Hill Massawa Grade (g/t) 2 Pit 1 Haile 5 Esaase Tocantinzinho Blackwater North America 1 Amulsar Toroparu Shahuindo Kiaka Central Africa Bombore Ashanti South America 4 Volcan Rest of World -- -- 2 4 6 8 10 Morelos Resource (mm oz Au) 3
Slide 28: TSX: TXG
TSX: TXG For further information: Gabriela Sanchez, VP Investor Relations email: gabriela.sanchez@torexgold.com Mobile: (416) 357-6673 www.torexgold.com
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