Torex Gold Targets First Copper Production from Media Luna Project in Early 2025
Toronto-based Torex Gold Resources announced that it expects to begin producing the first copper concentrate from its Media Luna project in Mexico in Q1 2025, with commercial production to follow shortly afterward. The US$950 million project, located in Guerrero state, is currently 87% complete, according to CEO Jody Kuzenko.
Kuzenko noted that engineering work for the project has been completed, and procurement is down to the final deliveries. The progress on both underground and surface construction has been ahead of schedule, with installation of the Guajes conveyor almost complete and commissioning expected imminently.
"With the overall project construction period nearing completion, our focus has shifted to refining the plan and schedule for the plant tie-in period," Kuzenko stated. Due to delays related to electrical equipment deliveries, partly caused by recent hurricane activity in the Gulf region, the plant tie-in period has been rescheduled from November 2024 to February 2025. Despite this adjustment, the company remains on track to produce its first copper concentrate in Q1 2025.
Torex has established a contingency plan to ensure readiness for a potential tie-in period in Q1 2025. "Our primary business priority has always been to ensure readiness for the tie-in period and keep this phase to under four weeks," Kuzenko added.
With the extended production timeline, Torex now forecasts its company-wide gold production for 2024 to reach 450,000-470,000 ounces, up from the original guidance of 400,000-450,000 ounces. On a gold equivalent basis, full-year production is now estimated at 460,000-480,000 ounces, compared to the initial forecast of 410,000-460,000 ounces.
Kuzenko highlighted several benefits of the refined schedule, including increased gold production in 2024 and the opportunity to conduct advanced testing on key processing plant systems. This testing could reduce the time required for completing the tie-ins and upgrades, potentially shortening the process to less than the originally planned four weeks.
Ore production from the El Limón Guajes (ELG) open pits, ELG underground, and Media Luna underground will continue as planned, with ore from Media Luna being stockpiled ahead of commissioning the flotation circuits. As of the end of the latest quarter, US$840 million had been spent on the Media Luna project, with US$110 million incurred in Q3 2024. The remaining expenditures amount to just over US$110 million, which compares favorably to the available liquidity of over US$345 million, providing a funding buffer of US$235 million.
The Media Luna underground mine ramp-up is independent of the completion and commissioning of the processing plant, meaning that ore production from Media Luna will proceed without interruption. The stockpiled ore will be used for wet commissioning of the copper and iron sulfide flotation circuits.
