Growing reserves and resources is one of Torex’s Strategic Pillars. As such, we are evaluating opportunities to extend the mine life at ELG, expand and upgrade resources within the Media Luna Cluster, and test highly prospective targets across the broader Morelos Property. The Company invested $28.8 million in drilling and exploration in 2023 and $31.7 million in 2022.
Drilling in 2023 continued to expand mineral resources and extend the reserve life of ELG Underground, further upgrade and expand resources at EPO, and highlighted the mineralized prospectivity of Media Luna West. Drilling was successful in replacing 67% of reserves mined in 2023 as well as expanding gold equivalent Measured & Indicated resources by 5% and gold equivalent Inferred resources by 2%.
Drilling at ELG Underground in 2023 increased Proven & Probable reserves by 146 koz AuEq (280 koz AuEq prior to depletion), which, based on a steady state mining rate of 2,000 tonnes per day, is expected to extend the reserve life of ELG Underground to late 2028 from mid-2026. Measured & Indicated resources expanded by 432 koz AuEq (570 koz AuEq prior to mined depletion) while Inferred resources increased 119 koz AuEq.
At EPO, infill drilling was successful in upgrading Inferred resources while step-out drilling expanded the overall mineralized footprint. Indicated resources exited the year at 1,153 koz AuEq, representing an increase of 481 koz and surpassing our target of 1 million ounces.
