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TORONTO, Ontario, April 6, 2018 - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) reports that negotiations between community leaders have resulted in an end to the illegal blockades of the Company's ELG Mine Complex, supporting infrastructure, and the Media Luna Project, all of which are in southwest Mexico. Processing operations have continued uninterrupted since the restart in mid January. Mining in the El Limon Pit is expected to resume today.
Fred Stanford, President & CEO of Torex stated: "We are more than pleased that we can now get back to unimpeded operations and value creation for the Company's shareholders and all stakeholders. During the first quarter, the quality of the team, and the asset, were clearly evident as they pulled together under very challenging operating conditions and produced 67,000 ounces of gold were produced in Dore, and an additional 8000 ounces of gold were shipped in carbon fines.The Sub-Sill was re-started one month ahead of schedule, with drifts and ramps advancing 179 meters in March.The underground diamond drilling program also restarted ahead of schedule.Mining in the El Limon Sur Pit progressed on schedule, as did the Guajes East Pit, which is now effectively mined-out.The Guajes West Pit is in a waste stripping phase in 2018, which is the reason the operation will source most of its ore in 2018 from the El Limon Pit, with some contribution from the El Limon Sur Pit and the Sub-Sill. The SART plant construction is substantially complete and commissioning is ongoing. The placement of filtered tailings has been well managed in preparation for the rainy season. Water containment ponds are being drawn down in preparation for the rainy season. Cash reserves at the end of the first quarter were US$124 million, including US$14 million set aside for reclamation obligations.In the first quarter, a US$9.3 million principal repayment was made to reduce the term loan under the debt facility to US$290.7 million.
Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the ELG Open Pits, the ELG Underground Mine, and the Media Luna Project, which is an early stage development project, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% unexplored.