Torex sees potential to extend life of Mexico gold mine

Canadian miner Torex Gold Resources (TSX: TXG) said new drilling on its main Morelos property in Mexico identified additional high-grade structures that could support further mine life growth.

Hole MLLI-042 cut about 18 metres grading 8.04 grams gold per tonne, 33.9 grams silver and 1.37% copper from about 565 metres downhole, Torex said late Thursday. Another hole, MLLI-048, intersected 16 metres of 15.12 grams gold, 16.2 grams silver and 0.88% copper from 472 metres depth.

Results “continue to demonstrate meaningful potential for reserve and resource additions across both the Media Luna cluster and ELG underground,” Scotia Capital mining analyst Eric Winmill said in a note. This could help underpin Torex’s ability to sustain annual production of 450,000–500,000 gold equivalent oz. beyond 2030, he said. 

Key asset

Morelos, one of Mexico’s biggest gold mines, has been Torex’s key asset since the company acquired the property in 2009. Located about 180 km southwest of Mexico City, Morelos hosts a cluster of deposits including ELG, Media Luna and EPO.

Buoyed by a record $77 million (C$105 million) exploration budget for 2026, Torex is focusing on expanding and upgrading resources and replacing depletion at Morelos, which includes the Media Luna cluster and the ELG underground mine. It’s planning to drill about 62,500 metres at Media Luna this year, part of an overall 148,000 metre drilling program.

Other notable results released Thursday include hole MLE26-012D, which cut 49 metres grading 2.18 grams gold, 7.5 grams silver and 0.5% copper from about 471 metres depth. Hole MLE26-010, meanwhile, cut 95 metres of 1.5 grams gold, 11.1 grams silver and 0.38% copper from 461 metres downhole.

Torex is beginning to see “strong potential” to expand resources south of the mine, CEO Jody Kuzenko said. Continuous mineralization has also been encountered east of Media Luna, she added.

The latest results at Morelos “have set the stage for what we expect will be another year of successful resource expansion and mine life additions,” Kuzenko said.

Delivering growth

Recent exploration work focused on step-out and infill drilling within ELG underground and across the broader Morelos land package, which covers 290 sq. km in the Guerrero Gold Belt. The company continues to prioritize targets that can be rapidly integrated into mine plans, leveraging existing infrastructure to deliver growth.

Drilling at ELG underground continues to demonstrate continuity of high-grade mineralization along key trends, Torex said. As things stand now, ELG’s mine life is projected to last until 2031.

Torex has been one of Mexico’s largest gold producers since commercial production at ELG began in 2016. The company is aiming to produce 320,000–365,000 oz. of gold this year, along with 2.2 million to 2.5 million oz. of silver and 60 million to 65 million lb. of copper.

New structures

Two new high-grade mineralized structures, discovered last year, add to the growing inventory of targets within the ELG system. Recent drilling confirms mineralization extends to a depth of 700 meters above sea level and remains open at depth and along strike, Torex said.

Media Luna, which reached commercial production in May 2025, is expected to one day overtake ELG as the company’s primary ore source.

In parallel, Torex has also been advancing the EPO deposit and testing regional targets across the property. Its goal is to build a pipeline of satellite resources that could feed the central processing plant.

Torex shares fell 1.6% to C$55.03 Friday morning in Toronto, valuing the company at about C$5.2 billion. The stock has traded between C$38.80 and C$85 in the past year.