The gold production of the company Torex Gold Resources will increase as a result of an investment of 848 million dollars in Mexico.
This is the expansion of the Media Luna Project, which is being developed with six primary mining zones, each with designated infrastructure, in the state of Guerrero.
Total Capital Cost Estimate
At steady state production, the underground mine is expected to deliver an average rate of 7,500 tpd of ore to the upgraded processing plant.
The technical report assumes a credible ramp-up towards steady-state production with the first development ore in the fourth quarter of 2023.
The mine is then projected to reach commercial production in the first quarter of 2025 and the Media Luna Project is projected to be operating at 7,500 tonnes per day in the first quarter of 2027, which is a three-year increase from the first ore of production or 3.5 years from the first development ore.
The mining and development methods of the Media Luna mine are safe and highly mechanized, using common equipment and processes that are proven in the global mining industry.
Successful execution of these methods to achieve development and production from the planned Media Luna underground mine will require the operation to build on its established culture focused on worker health and safety.
It will also require investment and emphasis on worker training geared towards the new equipment and technology used, along with systems for structured mine planning.
Key recommendations include continued engagement with suppliers for all mobile equipment, further evaluation of automation and autonomous operation, and securing battery electric vehicles on time to meet the life of mine schedule.
In addition, the mine plan schedule will be optimized, including a more detailed evaluation of stope designs and cut-off grades in current market price environments.