Torex Gold on pace to meet guidance before COVID-19 suspension
(Kitco News) - Torex Gold Resources Inc. (TSX: TXG) was on track to meet its 2020 production guidance prior to a temporary suspension of operations at its El Limón Guajes complex in Mexico, the company said Tuesday.
The shutdown was announced in early April and was the result of a decree by the Mexican government to halt all non-essential businesses in an effort to combat the COVID-19 pandemic. The company said there have been no on-site cases of the illness.
Torex listed first-quarter production of 108,530 gold ounces. Sales totaled 108,060 ounces at an average realized gold price of $1,570 per ounce.
“Prior to the recent COVID-19-related suspension of operations, we were on track to achieve 2020 production guidance of 420,000 to 480,000 ounces of gold,” said Fred Stanford, president and chief executive officer. “The temporary suspension of operations is unfortunate but necessary as we all do our part to contain this virus.
“We are preparing for the restart of operations under various scenarios, including a scenario where social-distancing requirements enable only a partial restart. Whatever the requirements, our team will be prepared to resume operations in a productive and safe manner.”
The quarter also was impacted by an additional 88-hour maintenance shutdown in January to address alignment concerns in the SAG mill drive train, said Jody Kuzenko, chief operating officer.
Meanwhile, Stanford said the company is continuing to advance the Media Luna deposit, with design and engineering work for a feasibility study and permitting work continuing. However, an infill drill program at Media Luna has also been impacted by the suspension of operations.
“As a result, the feasibility study could be delayed a quarter, which will not affect the schedule of the Media Luna project,” Stanford said.