Torex Gold suspends operations at mine in Mexico
TORONTO, Ontario.- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) announced that it is suspending operations at its El Limon-Guajes Mine (ELG) until further notice due to an illegal blockade initiated by three families demanding unjustified payments for purported environmental damages. This attempt to damage the Company’s reputation through unsubstantiated claims can be easily refuted with environment monitoring data and the Company will not succumb to this sort of tactic by making the demanded payments. We prefer to suspend operations until the authorities re-establish law and order.
Fred Stanford, President & CEO of Torex stated: “It is truly unfortunate that a selfish few put their wants above the need of so many that worked so hard to make this project a success. The majority of the community has not supported these families and community representatives have lodged legal complaints against their activities. If the Company were to submit to this sort of extortion then we would be vulnerable to similar threats throughout what we expect could be a very long life operation on the Morelos Property. Rather than establish such a precedent, we prefer to suspend operations until the authorities take the next step in providing a law and order environment in which we can operate. The authorities have been actively involved in resolving the situation and we hope that their efforts are successful soon. It would be a shame if the actions of a selfish few were allowed to destroy the potential for so many to improve the opportunities for themselves and their families.”
Torex is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and exploitation 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 Limon-Guajes (ELG) Mine, which started production in December 2015, and the Media Luna Project, at an advanced stage of exploration, with a positive preliminary economic assessment (PEA) completed in July of 2015. The property remains 75% unexplored.