Torex Gold Resources Inc. · TSX:TXG
Torex Gold Resources — Investor Presentation (September 2017)
40 slides from Torex Gold Resources's investor presentation, September 2017
Slide 1: +370,000 Au Oz. / Year of High Margin Production And High Quality Growth Projects
TSX: TXG September, 2017 +370,000 Au Oz. / Year of High Margin Production And High Quality Growth Projects
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, open pit 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. SUB-SILL PROJECT – A HIGH GRADE UNDERGROUND MINE Fi
Slide 4: A Beautiful Asset And A Tested Management Team
A Beautiful Asset And A 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
Slide 5: 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 FENNELL LLB Board Chair 30 years experience as a director and senior executive with TSX and TSXV listed companies. 45 years of mining industry experience. Founder
Slide 6: Balance Sheet
Balance Sheet ELG was financed with equity and project debt… Cash position at end of Q2/17 Original Project financing: $300M @ LIBOR + 4.75% $77.2 million1 $75M @ LIBOR + 5.75% Shares outstanding Completion Test required before the end of Q1/18. 79.8 million Cash Sweeps commence after the Completion
Slide 7: The Tailings Filtration Bottleneck Has Been Solved
The Tailings Filtration Bottleneck Has Been Solved The focus has shifted to optimization of the grinding circuit… ...and to the mines, including mining the Sub-Sill deposit 7
Slide 8: Operating Results
Operating Results Processing plant throughput increased 26% in Q2 relative to Q1… 2016 Q1-2017 Q2-2017 2017E (1) GOLD PRODUCTION (oz) 279,937 70,887 74,487 350,000 - 380,000 HEAD GRADE (g/t) 3.25 2.49 2.37 - TOTAL CASH COST ($/oz) 543 671 706 525 – 575 AISC ($/oz) 733 923 991 775 – 825 OPERATING CFP
Slide 9: Over Longer Periods, Grade And Tonnage Reconcile Well Against Reserve Model
Over Longer Periods Of Time, Grade And Tonnage Are Reconciling Very Well Against The Reserve Model However, in any given quarter, skarn deposits frequently… …offer up considerable variability in grade and tonnage per bench (1) The above information is to the end of Q2/2017 9
Slide 10: Soluble Copper In The Deposit Has Been Successfully Managed
Soluble Copper In The Deposit Has Been Successfully Managed A SART Plant to recycle reagents, is under construction, and… SART Plant to address soluble copper in the process: Cost $25 - $28 million Payback: 12-18 months Expected savings on reagents: $100/oz Expected to be operational at the end of 2
Slide 11: 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 11
Slide 12: 'Purple' On Our Property Map Indicates High Magnetism
‘Purple’ On Our Property Map Indicates High Magnetism, Which Has Been A Good Indicator Of Gold Mineralization Most of the magnetic targets have yet to be explored… We believe that a porphyry ‘fed’ the current deposits. That ‘feeder’ system has yet to be found …’first hole’ success in ML and Sub-Sill
Slide 13: Sub-Sill Adds A Near Term Opportunity With High Grade Material
Sub-Sill Adds A Near Term Opportunity To Augment Processing Plant Feed With High Grade Material (+7.5 g/t Au)(1) The prospective area for the Sub-Sill goes right across the ridge… …a step-out drill program is underway now to test for extensions 13 (1) See Sub-Sill underground mineral resource estima
Slide 14: Near Term Is Effectively Now, For the Sub-Sill
Near Term Is Effectively Now, For the Sub-Sill, The Access Ramp Intercepted The Deposit In June The El Limon Deep zone (ELD) attracts less attention, but at… …5 g/t, (1) with potential to grow, it is also very attractive 14 (1) Included in the El Limon-Guajes Mineral Resources, see slide 34.
Slide 15: Prospective Area For Sub-Sill Expansion Is 45 Times Larger Than Current Resource
The Prospective Area For Potential Sub-Sill Expansion Is 45 Times Larger Than The Current Resource Area A 15,000m in-fill / step-out drill program is underway for Sub-Sill… Exploration Program Objectives • Infill - To test 1 million tonnes of inferred resources for potential to upgrade to the indica
Slide 16: Sub-Sill Is Well Worth The Effort To Expand
The Sub-Sill Is Well Worth The Effort to Expand, There are 350kt In The Resource With A Grade Of +16 g/t (1) Where possible, the mine design efforts will seek to… Table 1.2 Sub-Sill Indicated Resource sensitivity to cut-off grade (base case highlighted) Sub-Sill Indicated Resource Contained Au Conta
Slide 17: Technically Innovative To Control Costs And Risks
With ELG, We Were Technically Innovative To Control Costs And Risks. This Will Continue With Media Luna & Sub-Sill Filtered tails means no risk of tailings dam failures, the RopeCon… ...generates electricity and delivers negative ore transport costs 17
Slide 18: An Updated ML PEA in Q1/18 Will Include Further Simplification
An Updated ML PEA in Q1/18 Will Include Further Simplification Of The Design/Expected Cost Reduction The mining method would be a simple room and pillar cut and fill... Eliminate the ‘south side’ access and the associated costs and land disturbances 2015 PEA (1): Capex - $482M Cash cost: $571 / Au E
Slide 19: Potential Media Luna Timeline To Production
Potential Media Luna Timeline To Production The team is in place... Schedule is for planning purposes. No production decision has been made. Advancing the project is dependent on a number of factors including the results of the updated PEA and any feasibility study undertaken. ...and they are advanc
Slide 20: ELG And Media Luna Are Both 'Company Building Assets'
ELG And Media Luna Are Both ‘Company Building Assets’, Paired Together They Are More Than Impressive ‘Gold’ bars – ELG production as per 2015 LOM... (No Sub-Sill) The Media Luna PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically
Slide 21: Social Innovation Leverages The Technical Innovation
Social Innovation Leverages The Technical Innovation to Increase Output, Reduce Risk, And Build Social Licence 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 workplac
Slide 22: Technical And Social Innovation Has Set The Stage For Commercial Success
Technical And Social Innovation Has Set The Stage For Commercial Success In The Challenges Of Guerrero State 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,
Slide 23: Torex – The Investment Thesis Revisited
Torex – The Investment Thesis Revisited Focussed exposure to a large, high margin, open pit 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. SUB-SILL PROJECT – A HIGH GRADE UNDERGROU
Slide 24: Standing On The El Limon Crusher, Looking Down the RopeCon Path
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 24
Slide 25: SART Plant Construction
SART Plant Construction 25
Slide 26: The Dome Is Now Completed Over The Fine Ore Stockpile
The Dome Is Now Completed Over The Fine Ore Stockpile 26
Slide 27: Ball Mill And SAG Mill
Ball Mill And SAG Mill TorexGold ESOURGES ING. i ‘aig gst tan La POLE 4 — ‘ a " a ” i J TTT a i ‘comm iE thi ‘all | ili
Slide 28: Tailings Filters
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Slide 29: Mining At Guajes
Mining At Guajes eo. OF TorexGold
Slide 30: El Limon Mining
El Limon Mining 30
Slide 31: Water Truck Coming Down El Limon Access Road Past The Sub-Sill Portal
Water Truck Coming Down El Limon Access Road Past The Sub-Sill Portal 31
Slide 32: Weekly Community Tours To ELG; El Limon New Village Resettlement
On the Left, One Of The Weekly Community Tours To ELG On The Right, El Limon New Village Resettlement 32
Slide 33: Addendum
Torex’Gold RESOURCES INC. Addendum
Slide 34: El Limon Guajes Resources
El Limon Guajes Resources Mineral Resources Estimate – End of Year 2016 – El Limón and Guajes Open Pit Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Measured 6.64 2.82 4.06 0.60 0.87 Indicated 23.95 2.78 5.42 2.14 4.18 Measured and Indic
Slide 35: Sub-Sill Underground Resource
Sub-Sill Underground Resource Sub-Sill Underground Mineral Resource Estimate – Effective February 24, 2017 Tonnes Au Grade Ag Grade Cu Grade Contained Au Contained Ag (Mt) (g/t) (g/t) (%) (oz) (oz) Sub-Sill Indicated 0.35 7.82 6.25 0.27 89,000 71,000 Inferred 1.33 7.58 11.46 0.60 324,000 490,000 Not
Slide 36: El Limón Guajes Reserves
El Limón Guajes Reserves Mineral Reserve Estimate – End of Year 2016 – El Limón and Guajes Open Pit Tonnes (Mt) Au Grade (g/t) Ag Grade (g/t) Contained Au (Moz) Contained Ag (Moz) El Limon (inc. El Limon Sur) Proven 6.3 2.65 3.49 0.5 0.7 Probable 20.2 2.61 4.58 1.7 3.0 Proven and Probable 26.5 2.62
Slide 37: 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
Slide 38: Cross Section, El Limon Sub-Sill
Cross Section, El Limon Sub-Sill(1) (1) See Company’s news releases dated January 5, 2017, February 13, and September 19, 2017 regarding the results of drilling programs under the Sub-Sill 38
Slide 39: 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 39
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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