Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (March 2016)
24 slides from Torex Gold Resources's investor presentation, March 2016
Slide 1: Ramping Up The ELG Mine: Gently Getting Ready For Growth
TSX: TXG March 2016 Ramping Up The ELG Mine “Gently” Getting Ready For Growth
Slide 2: Safe Harbour Statement
Safe Harbour Statement THE PRELIMINARY ECONOMIC ASSESSMENT (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 STUDY, AS THE ECONOMICS AND TECHNICAL VIABILITY OF THE MEDIA LUNA PROJECT HAVE
Slide 3: Torex – Market Context
Torex – Market Context An emerging intermediate gold producer... Mineral Resources Capital Structure 4.77M Au Oz (M&I) Market Capitalization C$1.2B 7.95M Au Eq Oz (Inferred) Fully diluted shares 809M Inclusive of Reserves of 4.1M Au Oz Debt Project Finance US$375M El Limon Guajes Mine (ELG) Average
Slide 4: Torex - A Clear Strategy
Torex - A Clear Strategy Build the first mine on a 4.7 million oz M&I resource... The first mine, El Limon/Guajes (ELG), is now producing gold • A high grade (2.69 g/t) open pit gold mine on a 4.1M oz. reserve • Commercial Production declared on March 29, ahead of schedule • 10 year mine life, ave
Slide 5: Potential For Organic Growth On The Same Property
Potential For Organic Growth On The Same Property A 29,000 Ha land package that is <25% explored, and... ELG is producing ML for when the time is right ...has already delivered the ELG Mine and the ML Project 5
Slide 6: ELG - A Significant Annual Gold Producer
ELG - A Significant Annual Gold Producer Scale and grade make ELG a company building asset... See also slide 23 ...with average annual gold production of 360,000 ounces 6
Slide 7: On The Path To Averaging 360k Oz. / year – FAQ’s
On The Path To Averaging 360k Oz. / year – FAQ’s These are the ‘ramp-up’, frequently asked questions… 1. Are you at risk of running out of money? Which means: a. Is the ‘planned build’ on budget? b. Is there any ‘unplanned build’ that is going to cost money? c. Are the pre-commercial production cost
Slide 8: The ‘Money’ Question
The ‘Money’ Question We are fine for money at the mine level, however… • Commercial production announced on March 30 – Estimated at $10M less than the $800M budget • The only ‘unplanned build’ could be a circuit to remove copper – Still working to see if this is a ramp up teething issue (retention t
Slide 9: The ‘Ramp-up Throughput’ Question
The ‘Ramp-up Throughput’ Question The ramp-up goes well… ACTUAL VS RAMP-UP TONNAGE Dry Ton Acc Plan (Acc) 800000 700000 600000 500000 400000 300000 200000 100000 0 1-Dec 15-Dec 29-Dec 12-Jan 26-Jan 9-Feb 23-Feb 8-Mar 22-Mar …we are ahead of the ‘curve’ 9
Slide 10: The ‘Ramp-up Throughput’ Question (Details)
The ‘Ramp-up Throughput’ Question (Details) Have demonstrated ‘design level’ plant utilization… Weekly average operating hours 180 160 Weekly average operational hours 140 120 100 80 60 40 20 0 30/11/2015 31/12/2015 31/01/2016 29/02/2016 Week Starting Weekly hours in Operation Weekly hours at 90% ut
Slide 11: Now Moving To ‘Design Ball Charge’ To Increase T/HR
Now Moving To ‘Design Ball Charge’ To Increase T/HR On a daily basis, grinding has achieved 96% of design… Weekly average hourly tonnage SAG feed in t/h 700 600 500 SAG Mill Feed t/h 400 300 200 100 0 Week Starting Weekly average hourly tonage Design @ 90% Availability 60% Design Capacity @ 90% util
Slide 12: The ‘Recovery’ Question
The ‘Recovery’ Question Well ahead of plan for ounces produced... ELG CUMULATIVE GOLD OZ POURED BY WEEK 40000 38000 FINANCIAL MODEL TARGET = 22 KOZ BY MARCH 31 36000 ACTUAL = 34 KOZ BY MARCH 20 34000 32000 30000 28000 26000 24000 22000 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 …recov
Slide 13: The ‘Grade Reconciliation’ Question
The ‘Grade Reconciliation’ Question Plant head grades have been above LOM grade… • It is much too early to make definitive statements about reconciliation to the geological model – A significant portion of our daily feed comes from stockpiles that were accumulated from irregular ore at the periphery
Slide 14: The ‘Security’ Question (Quiet With No Issues)
The ‘Security’ Question (Quiet With No Issues) All levels of government have chosen to support Torex… • Excellent designs for protection of the environment, earn trust • Community resettlements that enhance dignity, earn respect • Excellent community and employee relationships make it so much easier
Slide 15: The Near Term, ‘What’s Next’ Question
The Near Term, ‘What’s Next’ Question El Limon U/G resources could extend ELG mine life… Pit outline El Limon Crusher Target - High grade resource Intrusive Sill under the pit. 550 meters straight into the ridge from the North Nose access road Targets with high magnetic signature Target at same elev
Slide 16: Earlier Drilling Has ‘Pierced’ The Intrusive Sill
Earlier Drilling Has ‘Pierced’ The Intrusive Sill The conditions to form skarn exist beneath the sill… TMP-1408 intersected high- grade endoskarn and exoskarn at the base of the sill: Intrusive Sill 12.3 g/t Au over 9 m 50 m …and high grade gold has been identified in that skarn 16
Slide 17: The Medium Term, ‘What’s Next’ Question
The Medium Term, ‘What’s Next’ Question Media Luna - Potential to double Oz. through the plant... Resources have been defined for 1/3 of the associated magnetic anomaly PEA Capex - $482M Opex - $572 / Au Eq. Oz. AISC - $636 / Au Eq. Oz. ...and for a mine life measured in decades 17
Slide 18: ELG & Media Luna – Two ‘Company Building’ Assets
ELG & Media Luna – Two ‘Company Building’ Assets ‘Gold’ bars – Planned production from ELG reserves... The Media Luna PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that wou
Slide 19: The Longer Term, ‘What’s Next’ Question
The Longer Term, ‘What’s Next’ Question 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 existing resource 1
Slide 20: The Final Question – Why Torex?
The Final Question – Why Torex? An impressive asset in a jurisdiction that wants mines… • Near term re-rating potential with ELG ramping up • Low cost production that is attractive in any portfolio • The “What’s Next” growth question answered in several time frames – U/G at ELG for simple mine life
Slide 21: For further information: Investor Relations
For further information: Gabriela Sanchez, VP Investor Relations email: gabriela.sanchez@torexgold.com - Mobile: (416) 357-6673 - www.torexgold.com
Slide 22: Addendum
Torex’Gold RESOURCES INC. Addendum
Slide 23: El Limon Guajes 2014 Mineral Resources Statement
El Limon Guajes El Limon Guajes 2014 Mineral Resources Statement Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) Measured 10.09 3.27 4.01 1.06 1.30 Indicated 40.24 2.87 5.15 3.71 6.67 Total M&I 50.33 2.95 4.92 4.77 7.96 Inferred 7.69 2.15 4.64 0.53 1.15 Notes to accom
Slide 24: Media Luna Deposit Inferred Mineral Resource Estimate
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
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