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Posts tagged ‘Torex Gold Resources (TXG)’

Treasure Islands

January 30th, 2012

Miners Face Increasing Danger from Crime, Social Unrest and Violence

By Greg Klein

With 22 years’ experience in the British Special Forces, 10 of them with the Royal Marines and the other 12 with the SAS, Alan Bell is no stranger to conflict. Since founding the Toronto-based security company Globe Risk International in 1996, he’s provided his expertise and active involvement to a number of exploration and mining companies overseas. And he’s seen a few changes over the years.

“I remember when I started out in the 1990s, the old VPs of exploration used to go out into the mountains with their hammers and their boots and their trousers tucked into their socks. The old-school guys would go out there and say, ‘We don’t need any security.’ Well the world has changed dramatically since then.”

Miners Face Increasing Danger from Crime, Social Unrest and Violence

His admonition would apply to all resource companies but especially those of Canada, “the global leader in mineral exploration,” according to the Prospectors and Developers Association of Canada. Rising prices and limited supply push exploration into increasingly dangerous places, in a world that is itself becoming more troubled.

Companies often turn to Globe “when things go wrong,” Bell says. “They’ve got to spend a lot more time researching where they’re going and what they’re going to do. They’re running out of places to go, and the places that are left are where there’s problems.”

Bell’s company will visit the site of a proposed project to assess certain types of risk—not so much political risk, which might involve expropriation or a sudden and onerous tax/royalty regimen, but conflict in the form of crime, social unrest, sectarian violence or terrorism.

“There could be anything from suicide bombers to vehicle-exploding devices. We talk about what’s in the area. Can you get helicopters in there; what type of security do you need; who can assist you? We assess the local population, aviation, flight clearances, landing sites. Basically we develop a report for the client so they can see what their problems and options are before they bid on these contracts.

“We’ve had many clients who have looked at our reports and said, ‘Well this looks like an option, we’re willing to take a certain amount of risk,’ and they go in. Others say, ‘Shit, we’re not going to get involved in this, it’s too dangerous.’”

Bell started out with assignments in Latin America and Africa. In 2004, he began working on Canadian government contracts in Afghanistan. He employs a number of former Canadian military but trains locals to work as onsite security.

“We just finished a major project in northern Afghanistan for a Chinese company looking to start in March or April. What we will do, if they wish, is provide them with security to do their work. We’ll get a camp built for them, train the security team, get the vehicles. When they come over and start carrying out their exploration, we’ll support them from a security perspective as well.”

Precautions notwithstanding, not everything can be predicted, let alone prevented.

Last September, for example, Semafo TSX:SMF shut down its Kiniero Gold Mine in Guinea and evacuated its expatriate employees after protests about foreign workers turned violent. The mine still hasn’t re-opened, although exploration resumed in late October.

In December 2010, Luna Gold TSXV:LGC lost 1,500 ounces of gold, worth over $2 million at the time, to an armed gang at its Aurizona Mine in Maranhao State, Brazil, about 2,000 kilometres north of Rio de Janeiro. Robbers failed in a second attempt last November, however, despite taking hostages. The captives were released unharmed, an outcome which the company attributes to precautions taken after the initial heist.

We knew that this was going to happen based on intelligence-gathering by our security people. We advised the local police. The police were on site at the time the outsiders came. And the police just stood by while they vandalized the place —Donald East

In March 2011 Torex Gold TSX:TXG suspended work at its Morelos Project in Guerrero State, 200 kilometres southwest of Mexico City, after the armed robbery of several of its trucks. No one was hurt, but employees were evacuated nonetheless. Operations have since resumed.

Last June Torex President/CEO Fred Stanford explained, “We’re in a little town that had no police, and it had never needed them. I think we injected enough money into the community that we attracted a criminal element…. There are now police, and we’re back and moving forward. The government’s been very good; the community wants the mine; and we’re negotiating now for land. No doubt there will be issues, but we’ve got a great partnership with the community.”

Other companies work in the thick of cartel country. US Gold’s TSX:UXG El Gallo Silver-Gold Project is slated for mid-2012 production in Sinaloa State on Mexico’s north-central coast. Senior VP Ian Ball said, “We have been very active there for three or four years and have been able to establish a pretty good relationship—and this might sound strange—with the cartel. You have to know who they are and inform them what you’re doing and where you’re moving to…. They don’t want you near their marijuana crops.”

When it comes to Colombia, Sunward Resources TSX:SWD COO David Forest can’t say enough good things about the country. “Geologically, there’s nothing like it,” he told ResourceClips.com last August. “There’s nothing on the planet with that kind of potential that’s so underexplored. Nothing happened there for 50 years. It’s phenomenal terrain, completely underexplored.”

He added that his flagship Titiribi Gold-Copper Project is in Antioquia Department, a region of northwest Colombia “which has very strong rule of law and tradition of order. We don’t have any security at site.” That confidence seems to be borne out by the presence of others. Neighbours include AngloGold Ashanti, Gran Colombia TSX:GCM, Colombian Mines TSX:CMJ, Continental Gold TSX:CNL, Bellhaven Copper and Gold TSX:BHV and Batero Gold TSX:BAT.

But while Forest emphasized, “The security and safety situation is fine in 90% of the country now,” there is that other 10%. It includes Sunward’s former Murindo-Mande Norte Project straddling the border between Antioquia and Choco departments. “There’s a number of issues including FARC [the Revolutionary Armed Forces of Colombia] and indigenous groups,” he said. “If you can name an issue in Colombia, that region’s got it. The prize, if and when we can get in there, is enormous. It’s an anomaly the size of Yaletown [a high-density Vancouver neighbourhood], with copper sticking out of the ground. For 30 years, everybody’s known about this unbelievable anomaly, but it’s remained a place where nothing happened. We’re working on getting in there and, if we can, it’ll be a lot of fun.” By December, however, Sunward had divested itself of the property.

Speaking from Bogotá, Gran Colombia COO Donald East waxes enthusiastic about his company’s Marmato Gold Project, now in prefeasibility and projected for 2015 production. If all goes to plan, it will be the company’s seventh operating mine in northern Colombia. Last October, however, the company shut down its Mazamorras Project in Nariño Department, in the southwest corner of the country, after a mob demolished the buildings.

“We knew that this was going to happen based on intelligence-gathering by our security people,” says East. “We advised the local police. The police were onsite at the time the outsiders came. And the police just stood by while they vandalized the place. We then complained to the government about that. In any country in the world you have to rely on some sort of legal protection for your assets. So I think that created a bit of a wake-up call for the government.”

There’s nothing remarkable about the security company’s presence, East maintains. “Obviously on any mine you have security because you have assets. It’s just a local security company; that happens on every mine.”

East says he still doesn’t know who’s responsible for the attack or what motivated them. But he believes they were from outside the region and the attack was somehow linked to the local and regional elections that were about to take place. The local population, he says, supports the project for the sake of jobs as well as the social work the company performs. “We’re just going to let the thing wait until we feel the risks aren’t too great for any of our people to go back there. So it’s probably going to be next year before we start to re-visit that project. Mazamorras is not really critical to our current planning.”

Read Part II of this story here.

Torex reports Mexico Gold Assays as high as 14.41 g/t over 15m

January 19th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTorex Gold Resources Inc TSX:TXG announced results from the El Limon deposit of its Morelos gold project in Guerrero State, Mexico. Assays include

14.37 g/t gold over 7.5 metres
8.19 g/t over 12.9 metres
5.95 g/t over 14.8 metres
9.72 g/t over 3 metres
5.93 g/t over 5.2 metres
3.15 g/t over 38.4 metres
13.37 g/t over 3 metres
3.88 g/t over 53.5 metres
3.42 g/t over 43.1 metres
5.26 g/t over 19.6 metres
52.26 g/t over 3.7 metres
14.41 g/t over 15 metres
6.21 g/t over 10 metres
6.17 g/t over 47.4 metres
7.58 g/t over 17.5 metres
6.21 g/t over 29.4 metres
8.68 g/t over 15.9 metres
34.96 g/t over 4.5 metres
6.08 g/t over 27.1 metres
15.5 g/t over 7.2 metres

President/CEO Fred Stanford commented, “The final stages of the 2011 drill program have produced some of the best drill results on the property to date. These results continue to confirm the high-grade nature of our gold deposits and their large size potential. The three known gold deposits north of the Balsas River wrap around the northern portion of the large circular granodiorite intrusion that covers a significant portion of the property. Much of the 2012 drill program will be conducted to test for similar styles of gold mineralization around the edge of the granodiorite intrusion situated south of the Balsas River. 2012 is shaping up as an interesting year as we ramp up the exploration program to explore for economic gold mineralization to the south of the Balsas River, and as we push forward on all fronts toward the development of the Morelos Gold Mine.”

View Company Profile

Read more about Torex Gold

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP Investor Relations
647.260.1503

by Ted Niles

Torex reports Mexico Gold Assays including 15.22 g/t over 20.1m

October 11th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningTorex Gold Resources Inc TSX:TXG announced results from its Morelos gold project in Mexico. Assays include

21.38 g/t gold over 3.4 metres
1.02 g/t over 15.8 metres
3.01 g/t over 15.2 metres (including 4.22 g/t over 9.2 metres)
1.34 g/t over 36.7 metres
2.49 g/t over 6.7 metres
1.17 g/t over 33.7 metres
15.22 g/t over 20.1 metres
0.77 g/t over 51.4 metres (1.14 g/t over 23.8 metres)

President/CEO Fred Stanford said, “We are excited to see that the gap between Guajes West and Guajes East deposits is rapidly closing. In addition, we are seeing for the first time, results that suggest the possible extension of the Guajes West deposit to the southwest, in the direction of the Balsas River. This adds to the evidence that the mineralization continues along the main intrusion. We expect to continue our resource drilling program north of the Balsas River until the end of this year and look forward to meeting our internal goal of 5 million ounces of gold in the measured and indicated category by the time we announce our new resource estimate by the end of Q1 2012.”

View Company Profile

Read More about Torex Gold

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP Investor Relations
647.260.1503

by Ted Niles

Torex reports Mexico Gold Assays up to 7 g/t over 62.9m

September 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningTorex Gold Resources Inc TSX:TXG announced results from its Morelos Gold Project in Mexico. Highlights include 7 g/t gold over 62.9 metres (including 8.19 g/t over 53 metres), 6.82 g/t over 19.1 metres (including 17.28 g/t over 4.5 metres), 15.73 g/t over 7.5 metres and 6.44 g/t over 13.8 metres (including 7.81 g/t over 10.8 metres).

President/CEO Fred Stanford commented, “The possible continuation of high-grade mineralization between our Guajes East and Guajes West deposits continues to be supported with positive drill intersections between the two deposits. We expect to have sufficient drilling capacity for the rest of the year to complete the planned 2011 drill program on the three known Morelos Gold Project deposits north of the Balsas River by the end of calendar 2011. We also expect to resume drilling south of the Balsas River during the fourth quarter of calendar 2011 and we will, as drilling is completed on the known deposits north of the river, deploy those rigs south of the river, on high potential gold targets in the search for new discoveries.”

View Company Profile

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP of Investor Relations
647.260.1503

by Greg Klein

Securing The Gold

June 29th, 2011

Torex Protects Its Growing Mexico Deposit

By Ted Niles

When you’re getting grades like 6.6 grams per tonne gold over 50.5 metres, it is probably to be expected that a little bad will come with so much good. Since Torex Gold acquired the Morelos Project in Mexico, the property’s already considerable promise has only increased. However, the company was obliged in March to suspend its operations after the armed robbery of several of its trucks. While no one was hurt, Torex removed its employees from the site. But now the gold is secure, and drilling has resumed at Morelos with three rigs and a fourth and fifth expected to begin soon.

“We’re in a little town that had no police,” explains President and CEO Fred Stanford, “and it had never needed them. I think we injected enough money into the community that we attracted a criminal element.” He reports, “We asked the government to help, and they’ve been extraordinarily helpful. There are now police, and we’re back and moving forward. The government’s been very good; the community wants the mine; and we’re negotiating now for land. No doubt there will be issues, but we’ve got a great partnership with the community.”

Torex Protects Its Growing Mexico Deposit

The project is located in Guerrero State, 200 kilometres southwest of Mexico City, and consists of seven concessions totalling 29,006 hectares. Teck Resources acquired the Morelos project from the Mexican government in 1998 and, in joint venture with Goldcorp, drilled 608 holes of just under 100,000 metres over the next decade. “They shut the project down in the financial crisis and put it up for sale,” Stanford says. “We bought it at the end of 2009 and got a drilling program started in the middle of 2010.” Morelos has a measured and indicated resource estimate of 3 million ounces gold, 900,000 ounces inferred.

The project consists of three deposits—Guajes East, Guajes West and El Limon—and, according to Stanford, “It looks to us like those three deposits are all going to connect.” He continues, “There’s a kind of intrusion, and the deposits ring right around the edge of it, so these three will connect right around the edge of the intrusion north of the river. We’re gradually stepping-out from Guajes East, and we continue to find mineralization in the direction of Guajes West. Very high-grade mineralization.”

Step-out drilling from the Guajes East and Guajes West deposits reported June 27 include 6.6 grams per tonne gold over 50.5 metres (including 11.88 g/t over 18.3 metres), 8.6 g/t over 15 metres (including 27.33 g/t over 4.5 metres), 2.16 g/t over 46.4 metres and 2.74 g/t over 18.4 metres. Stanford comments, “These particular results are just confirming what we have expected all along, which is that Guajes East and Guajes West are indeed one deposit.”

May 30 assays from El Limon include 10.97 g/t gold over 33.2 metres, 2.9 g/t over 118.6 metres, 2.69 g/t over 44.3 metres, 12.33 g/t over 5.7 metres and 5.77 g/t over 47.6 metres.

Running and building mines is what I do —Fred Stanford

The objective of the current drill program is to grow the resource to 5 million ounces gold. “We’re intending to drill 100,000 metres this year,” Stanford says, “basically, moving forward quickly into turning it into a mine.” A revised estimate is anticipated for December 2011, and a “decision on production” is expected within 12 months. He continues, “Then it’ll be a two- to three-year construction period, depending on how long it takes to build roads up to the top of the mountain and start mining.”

“Our strategy has always been to take Morelos to production,” Stanford declares. The former president of Vale Inco’s Sudbury nickel operations explains, “Running and building mines is what I do.”

Torex has 349 million shares outstanding and a market cap of $607 million. At press time, shares traded at $1.74, up $0.11 (6.75%) from the previous days.

Stanford concludes, “This is my first small junior exercise, and I’ve been extraordinarily lucky with the quality of the asset. This has the potential to grow and grow. I suspect all juniors say that, but if you look at the results, and if you look at the ground, you’ll see why I have such confidence.”

Torex reports Mexico Gold Assays as high as 2.63 g/t over 31m

April 25th, 2011

Torex Gold Resources Inc TSX:TXG announced assay results from the Guajes West Deposit of its Morelos Gold Project in Mexico. Highlights include 2.52 g/t gold over 8.3 metres, 2.62 g/t over 31 metres (including 13.22 g/t over 3 metres), 15.03 g/t over 13.1 metres (including 32.66 g/t over 5.5 metres), 2.63 g/t over 10.7 metres, 2.21 g/t over 20.3 metres, 9.8 g/t over 5.2 metres (including 30.63 g/t over 1.5 metres), 8.54 g/t over 11 metres (including 21.27 g/t over 3 metres), 3.25 g/t over 24.5 metres, 6.37 g/t over 20.4 metres and 4.2 g/t over 13.3 metres.

President/CEO Fred Stanford remarked, “We are very encouraged that the initial drill results from the Guajes West deposit clearly indicates that the mineralization is open to the northeast toward the Guajes East deposit. If these two deposits connect, it will provide for economies of scale in potential future mining operations. The three Morelos deposits; El Limon, Guajes East and Guajes West remain open in several directions and these new results continue to show the potential to expand the global gold resource at our Morelos Gold Project and meet our internal goal to bring the measured and indicated resources north of the Balsas River to five million ounces of gold. Once drilling activities resume, a focus of our exploration team will be to further drill test the area between Guajes East and Guajes West. We continue to work with federal, state and local authorities to establish sustainable internal and external security measures that will ensure the safety of our employees and assets and permit us to start up our drill programs as soon as possible.”

View Company Profile

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP Investor Relations
647.260.1503

by Ted Niles

Torex reports Mexico Morelos assays as high as 6.04 g/t over 45m

March 7th, 2011

Torex Gold Resources Inc TSX:TXG announced assay results from the El Limon Deposit of its Morelos Gold Project in Mexico. Highlights include 11.47 g/t gold over 9.1 metres, 3.15 g/t over 11.1 metres, 6.04 g/t over 45 metres, 4.8 g/t over 28.7 metres, 2.06 g/t over 17.8 metres, 2.29 g/t over 54.6 metres, 1.5 g/t over 16.5 metres, 9.91 g/t over 21 metres, 7.03 g/t over 55.9 metres and 11.47 g/t over 9.1 metres.

President/CEO Fred Stanford remarked, “We are very pleased that over the past several months we have been able to announce successful step-out and infill drilling at two of our three Morelos deposits, El Limon and Guajes East; both of which remain open in several directions. Drilling at the third deposit, Guajes West, started recently and results will be reported as they become available. Today’s near surface, high grade results at El Limon move us closer toward our goal of increasing the global resources north of the Balsas River to our target of five million ounces. Seven drills will continue this effort north of the Balsas River, while four drills are focusing on finding new gold deposits south of the river.”

View Company Profile

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriella Sanchez
VP Investor Relations
647.260.1503

by Ted Niles

Torex reports Mexico Gold Assays up to 3.5 g/t over 22.9m

February 10th, 2011

Torex Gold Resources Inc TSX:TXG announced results from its Morelos Gold Project in Mexico. Assays include 2.96 g/t gold over 7.7 metres, 6.99 g/t over 6 metres. 3.5 g/t over 22.9 metres, 1.86 g/t over 14.5 metres, 1.29 g/t over 64.5 metres, 1.35 g/t over 19.4 metres, 32.28 g/t over 38.9 metres (including 254.42 g/t over 3.1 metres), 2.19 g/t over 15 metres, 5.31 g/t over 42 metres and 5.91 g/t over 23.9 metres (including 13.3 g/t over 6.5 metres).

President/CEO Fred Stanford said, “Our ongoing 100,000-metre drilling program continues to provide very positive drill results including the intersection of 32.29 g/t over 38.9 metres within the high grade portion of the Guajes East deposit. The expansion of the Guajes East deposit to the south and east is particularly encouraging as our current plans, pending a positive feasibility study, are to initiate mining from an open pit at Guajes East and the expansion in this area has potential to increase early production volumes from high grade, near surface resources. In addition, the continued success at the western end of the Guajes East deposit adds additional confirmation of the previously reported high grade zone. We expect that as we continue to expand and test the possible connections near surface and at depth of our three deposits north of the river, we will significantly increase the number of ounces of gold in our next resource estimates, which are expected to be completed and announced in Q3 2011.”

View Company Profile

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP Investor Relations
647.260.1503

by Ted Niles

Torex reports Mexico Gold Assays including 4.5 g/t over 48.8m

January 18th, 2011

Torex Gold Resources Inc TXG:CA announced results from its Morelos Gold Project in Mexico. Assays include 4.53 g/t gold over 44.9 metres (including 16.92 g/t over 8.6 metres), 20.02 g/t over 12 metres, 4.01 g/t over 13.2 metres, 15.74 g/t over 7.9 metres, 2.4 g/t over 32.1 metres, 9.5 g/t over 10.9 metres, 8.1 g/t over 8.2 metres (including 21.74 g/t over 3 metres), 3.22 g/t over 28.3 metres, 4.94 g/t over 64.8 metres and 5.99 g/t over 38.1 metres.

President/CEO Fred Stanford said, “We continue to be highly encouraged by the positive initial results of our ongoing 100,000 metre drilling program. A portion of the drilling is designed to expand the known deposits and determine the possible connection of the deposits near surface and at depth and a portion is designed to explore new exploration areas south of the Balsas River. The confirmation of the particularly high grade gold mineralized area within the Guajes East Deposit and the expansion of the deposit further to the west by at least 100 metres has potential to significantly enhance the overall mining economics of the Morelos gold deposits. We will continue testing this deposit to the west, south and south east and feel confident that further drilling will add more gold ounces to the property’s global resources north of the Balsas River, and will provide positive results in the new exploration areas south of the river.”

View Company Profile

Contact:
Fred Stanford
President/CEO
647.260.1502

or Gabriela Sanchez
VP Investor Relations
647.260.1503

by Ted Niles