Impact: Positive
Torex reported assays from its ongoing 54,000m drill program at its El Limón Guajes (ELG) underground mine complex at its Morelos project in Guerrero, Mexico. Drilling is designed to extend the LOM at ELG beyond 2028, particularly by targeting high-grade mineralization (read note). The results confirmed mineralization beyond the boundary of known resources, including to the south and depth at the El Limón Sur trend, to the west along the El Limón Deep trend, and to the north along the Sub-Sill trend. We view these initial drilling results positively and believe that Torex is off to a good start with its 2024 program given the early success with both infill and advanced exploration drilling. In our view, Torex’s 2024 exploration strategy provides a pathway to potentially add to the Morelos resource in the near term, generate a discovery in the mid-term, and extend mine life in the long term. We believe this work should help Torex maintain annual production of +450k oz AuEq beyond 2027.
