TSX: TXG
Geology of the Morelos Skarn-Hosted
Gold-Copper-Silver Deposits, Guerrero
State, Mexico
Alejandro Kakarieka 1, Cristian Puentes 1
Steven D Bussey 2, G Bradford Margeson 2 and Barton J Suchomel 2
XI Seminario Internacional de Minería Sonora 2014
1Torex Gold Resources Inc., 145 King St. West, Suite 1502, Ontario Canada M5H 1J8
2Western Mining Services LLC, 7343 South Alton Way, Suite 100, Centennial, Colorado, USA 80112
Safe Harbour Statement
This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, information regarding future exploration and development plans for the Company’s mineral projects,
the Feasibility Study (as defined below) and the Media Luna Report (as defined below), including with respect to mineral resource and
mineral reserve estimates, the ability to realize estimated mineral reserves, the Company’s expectations that the El Limón and Guajes project
will be profitable with positive economics, recoveries, grades, annual production, receipt of required permitting and approvals, parameters and
assumptions underlying mineral resource estimates, mineral reserve estimates and financing analysis, anticipated gold prices, securing of
surface rights in the future, adequacy of the Company’s financial resources, business plans and strategy and other events or conditions that
may occur in the future. Generally, forward-looking information can be identified by the use of terminology such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, “believes” or variations of such words or statements that certain actions, events or results “may”, “could”,
“would”, “might”, “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from
those expressed or implied by such information, including, without limitation, risks related to: exploration, development, mining and the mining
industry generally, such as economic factors as they effect same; future commodity prices; obtaining financing; market conditions; changes in
interest rates; safety and security; access to the Company’s mineral projects, including securing surface rights; actual results of current
exploration and development activities not being consistent with expectations, or unexpected events and delays impacting such activities;
required permits and approvals not being obtained on a timely basis; estimated mineral reserves and annual production not being realized;
parameters and assumptions underlying mineral resource estimates, mineral reserve estimates and financial analyses being incorrect;
government regulation; political, social or economic developments; environmental matters; insurance; capital expenditures; operating or
technical difficulties in connection with development activities; hiring the required personnel and maintaining personnel relations; the
speculative nature of gold exploration and development; contests over property title; changes in project parameters as plans for the El Limón
and Guajes project continue to be refined; and those risk factors included in the Company’s current annual information form and
management’s discussion and analysis. Forward-looking information is based on reasonable assumptions, estimates, analysis and opinions
of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors
that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company
has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove
to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers
should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
For additional information, please see the technical reports entitled “Morelos Gold Project, 43-101 Technical Report Feasibility Study,
Guerrero, Mexico”, dated effective September 4, 2012 (the “Feasibility Study”) and “Media Luna Gold–Copper Project, Guerrero State,
Mexico NI 43-101 Technical Report”, dated effective September 13, 2013 (the “Media Luna Report”). The technical information contained in
this presentation is based upon the information contained in the Feasibility Study and Media Luna Report, prepared by or under the
supervision of the authors of the Feasibility Study and Media Luna Report, who are each qualified persons for the purposes of National
Instrument 43‐101. 2
The Geology of the Morelos Skarn-Hosted Gold
and Gold-Copper-Silver Deposits
• Introduction
• Regional Geologic Setting
• District Geology
• Alteration and mineralization
• El Limón-Guajes Deposit
• Media Luna Deposit
• Morelos Summary
3
Introduction - Project Location
4
Introduction
Media Luna ridge
El Limon
Guajes
Looking south from the town of Nuevo Balsas at the El Limón-Guajes deposit (outlined)
with Media Luna ridge in the background
5
Introduction - Project History
Pre-1998 Morelos Mineral Reserve (Mexican government)
1998 Teck acquired area and commenced exploration
2000-2001 El Limón deposit discovered
2001-2002 Guajes East & West deposits discovered
2009 Torex acquired project
2012 (June) El Limón-Guajes Resource: 5.43 million oz. Au (4.81 M M&I)
2012 (March) Media Luna deposit discovered
2013 (Sept) Media Luna Maiden Inferred Resource (5.84 M oz. Au eq.)
6
Mineral Resources
El Limón – Guajes Deposit*
Resource Tonnes Au Au Ag Ag
category (M t) Grade (M oz) Grade (M oz)
(g/t) (g/t)
El Limon-Guajes M&I 55.2 2.79 4.95 4.71 8.36
Deposit
Inferred 9.2 1.95 0.58 3.9 1.14
El Limon Sur
Mineral Resources are reported above 0.5 g/t Au cut-off grade
Media Luna
Deposit
Media Luna Deposit**
Resource Tonnes AuEq AuEq Au Au Ag Ag Cu Cu
category (M t) Grade (M Grade (M Grade (M oz) Grade (M lb)
(g/t) oz) (g/t) oz) (g/t) (%)
Inferred 39.9 4.55 5.84 2.63 3.38 24.46 31.39 0.97 852.48
Mineral Resources are reported above 2.0 g/t Au Eq. cut-off grade
* NI 43-101 Mineral Resources as per Press Release of 10th September 2014
** NI 43-101 Mineral Resources as per Press Release of 15 th September 2013
Regional Geologic Setting
8
District Geology – Geologic Map
9
District Geology - Stratigraphy
Hornfels in Mezcala fm. at El Limón
Cuautla fm. limestone
Morelos fm. limestone
10
District Geology - Intrusions
Limon granodiorite (pre-skarn) FBHQ Feldspar-biotite-hornblende-quartz porphyry (syn-skarn)
FGB Fine-grained biotite-rich andesite (pre-skarn)
FBP Feldspar-biotite porphyry (syn- to post-skarn)
FP Feldspar porphyry (pre-skarn) QFHP Quartz-feldspar-hornblende porphyry (post-skarn)
4 cm
11
District Geology - Intrusions
Relative age of intrusions
more skarn altered
granodiorite [66.9 – 65.6 Ma]
FGB
FP [66.3 – 65.9 Ma] post-skarn
FBHQ [65.7 – 63.9 Ma]
FBP [64.7 Ma]
less skarn altered
FBP1 [65.9 Ma]
QFHP [ 65.3 – 64.9 Ma]
pre-skarn syn-skarn
older younger
12
Alteration at Morelos - Skarn
Skarn mineral zonation is present in both the
intrusive and sedimentary rocks – an example from
El Limón
Endoskarn Exoskarn
From Chang, 2007
13
El Limón-Guajes Deposit
• Reserves: 48.8 MT @ 2.61 g/t Au
• Mill gold recovery: 87,4%
• Average annual production: 358 Koz (max: 464 Koz)
• LOM strip ratio (waste: ore): 5,6: 1
• Capex (up to commercial production): $725 M
14
El Limón-Guajes Resources
El Limón – Guajes Deposit
Resource Tonnes Au Au Ag Ag
category (M t) Grade (M oz) Grade (M oz)
(g/t) (g/t)
M&I 55.2 2.79 4.95 4.71 8.36
Inferred 9.2 1.95 0.56 3.86 1.14
Mineral Resources are reported above 0.5 g/t Au cut-off grade
NI 43-101 Mineral Resources as per Technical Report of 18 June 2012
And as per Press Release of 10th September 2014
15
El Limón-Guajes Geology
Guajes
El Limón
20
El Limón Cross Section 1990145N
1300 m
1200 m
1100 m
200 m
Geologic units
QFHP Feldspar Porphyry
FBHQ Granodiorite
Exoskarn Mezcala fm - hornfels
Endoskarn Morelos fm - marble
17
Mineralization at El Limon - high grade gold
TMP-1259
244.9-246.9m
74.0 g/t Au
5 g/t Ag
TMP-1307
21.0-23.2m
84.9 g/t Au
37 g/t Ag
Guajes Cross Section 421190E
200
200 m
Meters
Geologic units
FBHQ Feldspar Porphyry
Exoskarn Granodiorite
Endoskarn Mezcala fm - hornfels
Fault - inferred Morelos fm - marble 19
Mineralization at Guajes - high grade gold
T10-099C
57.9-60.9m
53.7 g/t Au
25 g/t Ag
TMP-1049
122.5-125.5m
39.1 g/t Au
11 g/t Ag
Media Luna Deposit
Los Filos pit Ridge above Media Luna
(Goldcorp)
Front side of Media Luna
looking SW;
Site of ML-02
Discovery hole
Back side of Media Luna;
View from El Limón, looking SE
21
Media Luna Inferred Resource
Media Luna Deposit
Resource Tonnes Au Eq. Au Au Au Ag Ag Cu Cu
category (M t) Grade Eq. (M Grade (M oz) Grade (M oz.) Grade (M lb.)
(g/t) oz) (g/t) (g/t) (%)
Inferred 39.9 4.55 5.84 2.63 3.38 24.46 31.39 0.97 852.48
Mineral Resources are reported above 2.0 g/t Au Eq. cut-
off grade
NI 43-101 Mineral Resources as per Press Release of 16th September 2013
22
Media Luna Deposit
El Limón-Guajes deposit
Media Luna deposit
23
Media Luna - Magnetics
24
Media Luna – Cross Section Looking NW
25
Mineralization at Media Luna - high grade gold
and copper
NEZML-22
451.44-453.47m
23.1 g/t Au
9.4% Cu
WZML-47
806.9-808.13m
25.3 g/t Au
8.0% Cu
Mineralization at Media Luna - high grade gold
and copper
ML-20
333.6-335.1m
33.5 g/t Au
14.0 % Cu
NEZML-12
415.3-416.1m
87.1 g/t Au
8.3% Cu
Media Luna – 3D view looking north
Topography
along section
Massive sulfide/oxide
Exoskarn
Endoskarn
Granodiorite
500
Meters
28
Media Luna Discovery History
• Seventeen historic reverse-
circulation holes completed in 3
phases during 2001-2004 with the
aim of testing the Geochem
anomalies and the strong magnetic
anomaly with inconclusive results.
• Several zones of anomalous
geochemistry, especially gold,
copper, bismuth, zinc and arsenic,
were identified on surface.
29
Media Luna - Geochemistry & Magnetics
ML-02
RCML-11
30
Media Luna Discovery
ML-02 discovery intersection
15.8m at 3.10 g/t Au eq.
31
Media Luna – 2013 Magnetics
32
Gold Skarn Size Comparison
District Location Gold
(M oz)
Morelos Mexico 8.81
El Limon-Guajes 5.43
Media Luna 3.38
Los Filos (skarn) Mexico 4.3 (?)
Hedley Canada 3.8
Nambija Ecuador 2.7 (?)
Rio Narcea Spain 2.4
Fortitude USA 2.3
Kettle River USA 2.1 (?)
33
Copper (Gold) Skarn Size Comparison
Deposit Location Tonnes Gold Silver Copper Gold Copper
(M t) Grade Grade Grade (t) (M t)
(g/t) (g/t) (%)
Kucing Liar Irian Jaya 420 1.09 7.01 1.23 458 5.17
Big Gossan Irian Jaya 56 0.97 13.45 2.18 54 1.22
Tintaya Peru 88 0.18 n/a 1.17 15.8 1.03
Ertsberg Irian Jaya 32.6 0.8 9.1 2.30 22 0.75
Bingham (skarn) USA 20 1.62 n/a 3.65 32 0.73
Media Luna Mexico 39.9 2.63 24.5 0.97 105 0.39
Ok Tedi (skarn- PNG 28.9 1.58 n/a 1.25 44 0.36
1988)
Cadia (skarn) Australia 50.3 0.37 n/a 0.40 18.5 0.2
Resource figures from Jowitt et al., 2013
34
Morelos Project - Summary
• The majority of gold, copper and silver Mineralization is hosted in pyroxene-
garnet ± magnetite exoskarn along the contact of Paleocene granodiorite with
Cretaceous sedimentary rock
• Both exoskarn and endoskarn are extensively developed. Mineralization is
dominantly hosted in exoskarn
• Porphyritic felsic dikes and sills intrude sedimentary rocks and granodiorite.
These intrusions are both pre- and post-skarn alteration
• There is a clear association of gold, copper and silver with retrograde
amphibole, phlogopite, chlorite, calcite ± quartz ± epidote alteration of
exoskarn
• Sulphidation of skarn assemblages is closely related to retrograde alteration and
is more extensively developed at Media Luna than at El Limón-Guajes
• Nearly 9 M oz of gold, 41 M oz of silver and 400 K t of copper have been
discovered to date and several high-quality exploration targets have yet to be
tested
35
Thank You
