Torex Announces Q1 2016 Results and Updated Life of Mine Plan

TORONTO, ON - Fred Stanford, President & CEO of Torex Gold Resources said, “At the El Limon Guajes Mine (ELG) in Mexico. The team continues to exceed ramp-up expectations. Safety and environmental performance have been excellent, and production results have been consistently ahead of plan. With 19,900 ounces of gold produced in April, more than 1,000 ounces were produced per operating day. Above plan tonnages helped with this achievement, but above plan grades also made a significant contribution. The team is now entrenching the operating routines as we move toward 'steady state' at full production levels. Looking forward, the revised life of mine plan has a mine life that has been reduced to 8.5 years from 10 years. The team is putting the finishing touches on exploration plans that will seek to extend the mine life from a number of near mine targets."

This month, the Company completed a Life of Mine (LOM) plan update for ELG on a standalone basis. Tore is also investigating the location of post-mineralization dike intrusions, and the potential effect of these intrusions on the resource estimate. The updated LOM plan incorporates the results of this recent work. The LOM is now projected to be 8.5 years, a decrease from the previous estimate of 10 years, and the projected gold production for the first 7 years of the LOM is expected to be comparable to the first 7 years of the previous standalone life of mine plan.

While there is some depletion recognized in the new reserve estimate, the majority of the decrease comes as a result of new interpretations regarding the mineralization of dikes that cross cut the deposit. In the previous resource estimate, all intrusive dikes were considered to be mineralized. The age dating work done for Media Luna has indicated that intrusive dikes came at different times and have slightly different compositions. The dikes that came before the mineralizing event could carry gold, but those that came after the mineralizing event were barren.

Utilizing this new knowledge of the composition of the various intrusive events, all ELG core was re-logged to identify which dikes were post mineralization. A small drill program was also conducted to test the new interpretation. The tonnes contained in the post mineralizing event dikes were then removed from the resource estimate, resulting in the decrease in reserves.

Another interesting interpretation that came from the re-logging effort, was that the El Limon deposit sits on top of an intrusive sill (the "Sill"). The chemical conditions that allowed the gold to deposit above the Sill also exist below the Sill. Four of six holes that pierced the Sill produced grades and thicknesses that have the potential to be economic. This area will be investigated with a drill program in the near future and has upside potential for the operation. Another area with upside potential is the deeper mineralization that extends at depth underneath the existing final pit shell for the El Limon pit. Options to develop a ramp into this area are being identified now. If some or all of the mineralization can support mineral resource estimation and eventual conversion to mineral reserves, there may be potential to extend the operating mine life for El Limon. The Media Luna Project also provides options to keep the processing plant operating well into the future. These near term exploration programs will provide additional information that will help form the decisions to be made on how best to extend the mine life.