corporate presentation july
TRANSCRIPT
TSX: TXG
GDeveloping the Morelos Gold ProjectJuly, 2012
Safe Harbour Statement
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation.Forward-looking information includes, but is not limited to, information regarding future exploration and development plansconcerning the Morelos gold project (the “Morelos Gold Project”), including expected drilling results and updated resourceestimates, and expected timing for completion of the 2012 drill program, drilling results, completion of a bankable feasibilitystudy and other technical studies, project commissioning and expected securing of long term tenure to land required forpotential future operations through successful negotiations with the Ejidos. Generally, forward-looking information can beidentified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates", or"believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would","might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks,uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Companyy , y, p p yto be materially different from those expressed or implied by such forward-looking information, including, but not limited to, risksrelated to: unexpected events and delays impacting the timing of completion of the 2012 drill program, completion of a bankablefeasibility study, other technical studies and an updated resource estimate for the Morelos Gold Project; the possibility thatexploration results will not be consistent with the Company’s expectations; successfully negotiating with the Ejidos to secure longterm tenure to land required for potential future operations; and the risk factors disclosed in the Company’s annual informationform and management’s discussion and analysis for the year ended October 31 2011 available at www sedar com Forward-form and management s discussion and analysis for the year ended October 31, 2011, available at www.sedar.com. Forwardlooking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of itsexperience and its perception of trends, current conditions and expected developments, as well as other factors thatmanagement believes to be relevant and reasonable in the circumstances at the date that such statements are made. Althoughthe Company has attempted to identify important factors that could cause actual results to differ materially from those containedin forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.There can be no assurance that such information will prove to be accurate as actual results and future events could differThere can be no assurance that such information will prove to be accurate, as actual results and future events could differmaterially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-lookinginformation. The Company does not undertake to update any forward-looking information, except in accordance with applicablesecurities laws.
Additional technical information is contained in the Company’s technical report entitled “Torex Gold Resources Inc., Morelos GoldProject Guerrero Mexico NI 43 101 Technical Report” dated October 9 2009 The technical information contained in this
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Project, Guerrero, Mexico – NI 43-101 Technical Report”, dated October 9, 2009. The technical information contained in thispresentation has been reviewed and approved by Jerry Eugene Snider, BSc Mining Engineer, MBA, Project Manager of theCompany, who is a qualified person for the purposes of National Instrument 43‐101.
Our strategy
Straightforward...
• Build a mine
• Find another one on the same property
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...and it hasn’t changed
Executing on the strategy
We started from scratch two years ago...
Hired executive, geological, logistics and development teams
Established two field camps
Advancing bankable feasibility work
Environmental baseline work well underway
and one prep lab
Resolved Ejido land access issues
Initiated exploration, mapping and
Signed long term land lease agreements with Ejidos
Completed new mineral resource road building
Hired drill contractors to complete 100,000 meters resource drilling
estimate
Announced new discovery south of the Balsas river
Obt i d t it Developed government relations
Renewed exploration access agreements south of the river
Obtained water permit
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...and have achieved a lot in that short time
Results – Since first exploration update Dec./10
The strategy has delivered 17% returns...
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...and there is lots left to deliver
What do we have to work with?
Lots of cash on hand to do everything that...
• $80 million cash
• No debt
July 31, 2012TXG: C$1.95
413 million shares issuedM k t $805M
• Large and growing high-grade ‘open pitable’ gold
Market cap $805M
• Large and growing, high-grade, open pitable gold deposit
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...has to be done before a construction decision
Where will we spend the cash?
In both aspects of the strategy...
• Find a mine: ~$30M North ~$12M South ~$18M
• To build a mine: ~$25M• To build a mine: ~$25M Feasibility ~$5M Early works ~$15M, depending
iton permits Land lease agreements ~$5M
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...with more this year on exploration
Who makes it happen?
Experienced board...
Terry MacGibbon, B.Sc., P.Geo., ICD.DChairman of the Board,
Chairman of the SHE Committee, Director
Fred Stanford, P.Eng.President & CEO, Director
Terry MacGibbon, B.Sc., P.Geo., ICD.DChairman of the Board,
Chairman of the SHE Committee, Director
Fred Stanford, P.Eng.President & CEO, Director
Fred Stanford, P.EngPresident & CEO
Andrew Gottwald, CAChief Financial Officer
Fred Stanford, P.EngPresident & CEO
Andrew Gottwald, CAChief Financial Officer
Andrew Adams, B.Sc., ACA (UK)Chairman of the Audit Committee, Director
Jim Crombie, BSc., Mining Eng.Director
Andrew Adams, B.Sc., ACA (UK)Chairman of the Audit Committee, Director
Jim Crombie, BSc., Mining Eng.Director
Alejandro Kakarieka,VP Exploration
Gabriela Sanchez, MBAVP Investor Relations
Alejandro Kakarieka,VP Exploration
Gabriela Sanchez, MBAVP Investor Relations
Frank Davis, B.Comm., MBA, LL.B.Chairman of the Corporate Governance
Committee, Director
David Fennell, LL.B.Chairman of the Compensation Committee
Frank Davis, B.Comm., MBA, LL.B.Chairman of the Corporate Governance
Committee, Director
David Fennell, LL.B.Chairman of the Compensation Committee
Dawson Proudfoot, P.Eng.Project Manager Morelos Development
Gene Snider, BSc Mining Eng., MBAProject Manager
Dawson Proudfoot, P.Eng.Project Manager Morelos Development
Gene Snider, BSc Mining Eng., MBAProject Manager
Chairman of the Compensation Committee,Director
Michael Murphy, MBA, Msc.Director
Chairman of the Compensation Committee,Director
Michael Murphy, MBA, Msc.Director
Andres Recalde,Director Community Relations
Andres Recalde,Director Community Relations
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...and experienced management
A quality asset - In a great neighbourhood
29,000 hectares in a great region for gold...
24º45º 24ºNuevo Balsas
Guajes
22º
30º38º
El Limon
25º
40º
35º20º
20º
2 km
35º
60º
20º
Hydrothermalsystem outline Mezcala Fm: Shale
Cuautla Fm: Lst+shale
Granodiorite
Morelos: Limestone
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...and much more intrusive perimeter to be explored
New resource estimate north of the river
Delivered 4.8 million oz at 2.79 g/t (M&I)...
Deposit ResourceCategory
Tonnes(Mt)
Gold Grade (g/t)
Gold Ounces (000’s)
El LiEl Limon M&I 32.1 3.04 3,135Guajes M&I 21.7 2.42 1,689
Total M&I 53.8 2.79 4,824Total M&I 53.8 2.79 4,824El Limon Inferred 8.3 2.0 543Guajes Inferred 2.5 1.0 77
Total Inferred 10.7 2.0 620
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... and 620,000 oz inferred inside the pit shell
Exploration: upside north and south of the river
We have exploration targets all over the place ...
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...we will focus in the Media Luna Complex
Exploration: The new discovery at Media Luna
Large mineralized area...
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...in relatively close proximity to the mill
Exploration: Focus is in defining the Media Luna Complex
4 drills (18,000 meters) will test ML...
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...for continuity of a large mineralized system
Exploration: Defining the Media Luna Complex
Skarn mineralization with variable gold grades...
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...and interesting silver and copper grades
A quality asset – Building the mine
The engineering is well advanced...
El Limon
PitGuajes South
Dump
Guajes North Dump
El Limon Dump
Guajes Pit
Guajes East Dump
Dry StackTailings
p
Processing facilities
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...building mine roads will be on the critical path
Mine building – Managing the community risks
Ejido land lease agreements were completed...
Balsas El LimonEjido EjidoEjido
Village to be relocated
Processing facilities
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...including the land of the villages to be relocated
Mine Building – Managing the risks to water
Dry stack tailings, no dams with potential to fail...
Guajes North Dump
Dry StackTailings
p
Processing facilities
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...and tailings water is recovered and recycled
Mine Building – Reducing safety and energy risks
RopeCon – a proven technology...
El Limon pit
El Limon Dump
p
Processing facilities
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...that will generate power and improve safety
Mine Building – Managing the capital risks
Straight forward construction...
New access roadNew road
Hydro
Morelos
5 km
5 mi
HydroPlant
Morelos
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...with infrastructure close by
Getting ready for the project build stage
Pulling together the high level team...
• Dawson Proudfoot will lead from corporate
R iti f• Recruiting now for:
o Mine manager
o Mill manager
• EPCM Contractor has been selected
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...and they will pick their teams
Who is going to build it?
A project that is going to be built...
El Limon
Pit
M3 Engineering of Tucson, ArizonaLead consultant, responsible for overall document process and infrastructure design
AMEC Mining & Metals Consulting of Sparks, NevadaResponsible for resource estimationespo s b e o esou ce est at o
SRK Canada of Toronto, OntarioResponsible for mine design
AMEC Earth and Environment Consulting Burnaby, B.C.Responsible for waste management designResponsible for waste management design
Golder AssociatesResponsible for environmental impact social assessment
IDEAS, Hidrogeologos Consultores of Hermosillo, SonoraR ibl t fi d th t l
Processing facilities
Responsible to confirm and secure the water supply
Grupo GAPResponsible for Ejido negotiations
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...attracts good people
2012 will be a transformational year
Major advances toward production...
2012 2013 2014 2015T k 2012 2013 2014 2015Task
Land lease agreements
New resource estimate
Bankable feasibility study
Permits
Construction decision
Construction
Construction decision
Commissioning
Exploration results
Production
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...and rapid advance on the exploration program
Torex - An easy story to tell
A great investment...
High-grade, large, growing, open pitable gold deposit
Energized teamEnergized team
Exploration upside for the long termp p g
New resource completed and FS in the near term
$80 million in cash to do what needs to be done
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...for the short and long term
TSX: TXG
Appendix
Morelos Mineral Resource Estimate at a 0.5 g/t Au Cutoff Grade. Effective date is 4 May, 2012
Deposit ResourceCategory
Tonnes(Mt)
Gold Grade (g/t)
Gold Ounces (000’s)
El Limon M&I 32 1 3 04 3 135El Limon M&I 32.1 3.04 3,135Guajes M&I 21.7 2.42 1,689
Total M&I 53.8 2.79 4,824El Limon Inferred 8.3 2.0 543Guajes Inferred 2.5 1.0 77
T t l I f d 10 7 2 0 620Total Inferred 10.7 2.0 620
Cut-off Grade (g/t) Tonnes Grade (g/t) Ounces (gold)
0.4 56.9 2.66 4,869,0000.5 53.8 2.79 4,824,0000.6 51.5 2.89 4,783,000
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0.7 49.4 2.98 4,740,0000.8 47.1 3.09 4,684,0000.9 44.7 3.22 4,617,000
The strategy has delivered for investors
The junior gold space has been a tough market...
37% Belo Sun
33%
16%
(27%)
(47%)
Torex
Spot Gold
Detour
Rubicon
Note: Relative performance shown in Canadian DollarsSource: BMO Capital Markets, Bloomberg and Company Reports
Indludes data from December 1 2010 through July 31 2012
(52%)
(57%)
(65%)
(67%)
(67%)
Probe
Sabina
Rainy River
Eco Oro
Keegan Indludes data from December 1, 2010 through July 31, 2012(67%)
(68%)
(74%)
(75%)
(75%)
Keegan
Orezone
InternationalTower Hill
Victoria Gold
Andina
(75%)
(77%)
(77%)
(79%)
Exeter
Romarco
GuyanaGoldfields
Gabriel
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...Torex investors have weathered the storm
Analyst Coverage
BMO Capital MarketsAnalysts: Andrew Breichmanas P Eng
Scotia CapitalAnalysts: Andrew Breichmanas, P.EngTel. (416) 359 8387Email: [email protected]
Analyst: Trevor Turnbull, MBA, MScTel. (416) 863 7427Email: [email protected]
Dundee Securities CorporationAnalyst: Ron StewartTel. (647) 428-8324Email: [email protected]
Stifel NicolausAnalyst: Josh Wolfson, CFATel. (416) 815 3080Email: [email protected]
GMP SecuritiesAnalyst: George AlbinoTel. (416) 943 6187
@
TD SecuritiesAnalyst: Daniel EarleTel. (416) 308 7906
Email: [email protected]
Macquarie ResearchAnalyst: Pierre VaillancourtTel. (416) 848 3647
( )Email: [email protected]
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Tel. (416) 848 3647Email: [email protected]
Anomalous Areas South of the Balsas River
If the river is a fault...
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...there is no obvious displacement
Morelos: A World-Class Deposit
Meadow Bank
M l
New Liberty
Perama Hill 3
4
Morelos
Haile
Golden Meadows
Esaase
Bombore
CentralAshanti
Kiaka
Massawa
Toroparu
TocantinzinhoPit 1
Amulsar 1
2
Gra
de (g
/t)
5North America
AfricaBlackwater
Bombore
VolcanShahuindo
---- 2 4 6 8 10 12
Resource (mm oz Au)
Geita 3
4
(g/t)
Africa
South America
Rest of World
Morelos
Donlin Creek
Detour LakeLi d
Malartic
Pueblo Viejo
Rosia Montana 1
2Gra
de
Morelos is one of the highest grade open pit development operations and
Source: BMO Capital Markets
MetatesLivengood
Snowfield KSM
---- 5 10 15 20 25 30 35 40 45 50
Resource (mm oz Au)65
Morelos is one of the highest grade open pit development operations and is located in a proven mining jurisdiction close to existing infrastructure
TSX: TXG
For further information:Gabriela Sanchez, VP Investor Relationsemail: [email protected]
Mobile: (416) 357-6673www.torexgold.com