Torex Gold Resources Inc.
TSX : TXG

Torex Gold Resources Inc.

November 06, 2017 06:00 ET

Torex Reports an Illegal Blockade at the ELG Mine

TORONTO, ONTARIO--(Marketwired - Nov. 6, 2017) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) announced that during the afternoon of Friday, November 03, a group of approximately 20 local unionized workers illegally blockaded the main gate to the ELG mine, demanding a change in labour union. This action came after a meeting held earlier in the day where the Company explained to these workers that the Company did not have the authority to enact such a change. It could only be accomplished through a government sanctioned process that considered the intentions of the majority of unionized employees. The illegal blockade has continued since then, in a peaceful manner, and no unionized workers remain on site. Without a workforce, the Company shutdown the processing plant in an orderly manner. During the stoppage, there will be a focus on maintaining environmental protections.

Fred Stanford, President & CEO of Torex stated: "Ramp-ups are not just technical in nature, there are also the social aspects of the business that need to settle into a predictable pattern. Large scale industrial activity is new to this area, and while illegal blockades are a successful short-term tactic to draw attention to the interests of a select group, it is not a tactic that will attract re-investment and long-term prosperity for the region as a whole. We continue to work with the government and community leaders to establish a pattern of utilizing the established dispute resolution mechanisms." He added - "Government authorities have been on-site, and are working to establish their approved process for resolving disputes as to which union will represent the site workers."

Torex is an emerging 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 El Limón Guajes Mine, which announced commercial production in March of 2016, the Sub-Sill Project, currently under development, and the Media Luna Project, an early stage development project for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% unexplored.

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. Notwithstanding the Company's efforts, there can be no guarantee that the Company will not face unforeseen delays or disruptions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the activities of the Company to be materially different from those expressed or implied by such forward-looking information, including those risk factors identified in the Company's annual information form and management's discussion and analysis.

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