The asset’s up to date mineral useful resource estimate is pegged now at 4.39 million of gold-equivalent ounces, at a median grade of 5.38 grams per tonne. That compares to the three.54 million gold-equivalent ounces Torex reported in April 2021.
Of the up to date indicated useful resource, 60% of the gold-equivalent estimate is attributable to gold, 33% to copper and the rest to silver, the Toronto-based miner mentioned.
Inferred gold assets dropped, consequently, by 47% to 780,000 ounces, Torex mentioned.
“The conversion fee from the inferred class to the indicated class was stable, with indicated mineral assets rising by 4.5 million tonnes and inferred assets declining by 4.9 million tonnes,” it mentioned.
BMO Capital Markets analyst Ryan Thompson mentioned the replace had a optimistic impression on the financial institution’s internet asset worth granted to the miner’s underground deposit.
“Our estimated Media Luna NAV elevated to $712m, 12% larger than our prior estimate of $633 million,” Thompson wrote in a word to buyers.
“With the technical report anticipated within the coming weeks, we’re leaving our goal worth unchanged as we count on extra fine-tuning of our mannequin within the close to future,” he mentioned.
Additional development anticipated
The corporate plans to spend $19 million this 12 months in exploration at Media Luna, which it expects will add additional assets to the asset, situated in Mexico’s western state of Guerrero.
Torex is taking a look at each a traditional mine design for Media Luna in addition to at a mine plan that might use the corporate’s proprietary Muckahi mining system.
The conceptual design within the preliminary financial evaluation (PEA) for the asset envisions an underground operation with anticipated common annual gold equal manufacturing of about 350,000 ounces over a 10-year mine life.
The corporate mentioned it intends to advance Media Luna from superior stage improvement to first manufacturing within the first quarter of 2024.