Torex Gold (TSX: TXG) plans to invest between US$390 million and US$440 million in its flagship Media Luna gold project in Mexico this year to speed up development, with commercial production anticipated in late 2024.
Delivering a first quarter update, the Canadian miner noted that total upfront expenditures tied to Media Luna were unchanged at US$874.5 million.
President and chief executive officer Jody Kuzenko, said the project was 15% complete by the end of 2022, adding that work was expected to ramp-up significantly in the months ahead.
She added that 2023 is shaped to be the peak year of spending in Media Luna, which is part of the company’s Morelos Complex.
The Toronto-based company said last month it anticipated production of 440,000 to 470,000 ounces of gold this year, up from the 420,000-460,000 oz. range forecast in the company’s three-year outlook released in March 2022.
Torex currently operates the 100% owned Morelos property, covering an area of 290 sq. km in the Guerrero gold belt of Mexico.
The complex hosts the El Limón Guajes (ELG) mine complex, which started commercial production in 2016, as well as the Media Luna deposit, a processing plant and related infrastructure.
Media Luna, located 7 km from ELG, is expected to produce 280,000 oz. of gold annually over an 11.75-year initial mine life, plus 34.8 million lb. (15,800 tonnes) of copper and 1.3 million oz. of silver per year.
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