Torex Gold Resources Inc.
TSX : TXG

Torex Gold Resources Inc.

September 08, 2010 19:19 ET

Torex Gold Reports Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) -

(All amounts expressed in Canadian Dollars unless otherwise stated)

Torex Gold Resources Inc. (the "Company") (TSX:TXG) announced today its financial results for the three and nine months ended July 31, 2010. 

SIGNIFICANT EVENTS AND TRANSACTIONS

  • During and subsequent to the quarter ended July 31, 2010, the Company signed three key one-year surface access agreements with the Rio Balsas, Puente Balsas Sur, and Real Del Limon Ejidos. The signing of these agreements constitutes the final step in providing the Company with full access to the highly prospective exploration areas of the Morelos Gold Project and constitutes a measureable outcome from the continuous energy the Company has put into gaining the trust and respect of the communities within which it operates.
  • The Company signed an agreement with Major Drilling De Mexico, S.A. de C.V., and mobilized a skid mounted drill rig in early July. A second man portable rig was added to the fleet in August. Through August 28, 2010, a total of 22 completed or partial drill holes comprising 7,265 meters have been drilled in the Morelos Gold Project area. These holes served the dual purpose of being either exploration or condemnation holes for planned surface infrastructure.
  • The pre-feasibility study has progressed well during the quarter with a number of areas being completed including selecting the open pit mining method to mine both the Guajes East and West deposits. The Company's current expectation is that it will be completed in the fourth calendar quarter of this year. This study will include an updated resource model completed by AMEC E&C Services Inc. 

FINANCIAL HIGHLIGHTS

  • The net losses for the three and nine months ended July 31, 2010 increased to $4,107,000 or $0.01 per common share and $11,521,000 or $0.05 per common share compared with losses of $144,000 or $0.01 per common share for the three months and $347,000 or $0.01 per common share for the nine months ended in 2009. The increase in loss for three and nine months ended July 31, 2010, when compared to the same periods in 2009, is due to increased corporate, exploration and development activity related to the transformation to a company with a development stage asset.
  • As at July 31, 2010, the Company had $66.4 million of cash on hand and a working capital surplus of $65.5 million. Cash in-flows included $4.1 million related to the exercise of warrants and options and were partially offset by the incurrence of corporate, exploration, project development and equipment expenditures for the quarter ended July 31, 2010, which resulted in an increase of approximately $1.7 million of cash on hand from April 30, 2010.

A complete set of the Company's Financial Statements, Notes to the Financial Statements and Management's Discussion and Analysis for the three and nine months ended July 31, 2010 will be posted on the Company's website at www.torexgold.com and will be filed on Sedar at www.sedar.com.

Torex Gold Resources Inc. is a well funded, growth oriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to future exploration and development plans concerning the Morelos Gold Project, including expected timing for mobilizing drills on the project, expected drilling results and the within which the Company expects to receiving drilling results, anticipated timing for the completion of a pre-feasibility study and other technical studies on the project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including the risk factors disclosed elsewhere in the Company's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's expected financial and operating performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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