Torex Gold Resources Inc. reported year-end 2025 mineral reserves and resources for the Company's Morelos Complex as well as mineral resources for the Los Reyes Project. Drilling at ELG Underground has added close to two years to the reserve life of the deposit while the resumption of drilling at Media Luna mid-year offset most of the depletion resulting from the better than expected mine ramp up. At Media Luna West, an inaugural Inferred Resource of 506 thousand ounces gold equivalent was delineated with an average grade of 5.11 grams per tonne AuEq.
Mineral reserves for Morelos increased 4% prior to depletion (5% decrease net of depletion), with gains from drilling success at ELG Underground and Media Luna partially offsetting depletion and the reductions in reserves associated with updates to the geological model at Media Luna North. The acquisition of Los Reyes added 2,047 thousand ounces AuEq of Indicated Resources and 765 thousand ounces AuEq of Inferred Resources to the Company's overall resource inventory. AuEq mineral reserves and mineral resources take into account respective metal prices and metallurgical recoveries for gold, silver, and copper by deposit within each of the underlying properties.
Metal prices used to estimate mineral reserves and mineral resources for Morelos have increased modestly relative to the metal price assumptions previously assumed ($1,650/oz Au versus $1,500/oz Au for reserves and $1,800/oz Au versus $1,650/oz Au for resources). Mineral resources for Los Reyes are unchanged and in line with the estimate (effective date of October 15, 2024) previously reported by Prime Mining Corp., including metal prices of $1,950/oz Au and $25.24/oz Ag. The detailed breakdowns include tonnes, grade, and contained metal estimates by metal, as well as notes accompanying the applicable mineral reserve and mineral resource estimates.
Total Proven and Probable Reserves for Morelos are estimated at 4,839 thousand ounces AuEq at an average grade of 3.80 gpt, representing a 5% decrease relative to year-end 2024 reserves of 5,096 thousand ounces AuEq at 3.92 gpt. Prior to ore processed, Proven and Probable Reserves increased 207 thousand ounces AuEq (+4%), primarily due to ongoing reserve growth at ELG Underground and delineation of new reserves at Media Luna with the commencement of infill drilling towards the middle of the year following completion of the Media Luna Project. Offsetting the reserves gains were refinements to the Media Luna North geological model (carried out in conjunction with the internal feasibility study) which has led to improved confidence in the underlying model, greater certainty regarding the location of non-mineralized dikes, and revised stope shapes.
The resulting impact was an 8% decline in AuEq contained reserves and a 10% increase in reserve tonnes at Media Luna North. Measured and Indicated Resources are estimated at 7,262 thousand ounces AuEq at an average grade of 4.25 gpt, representing a 2% decrease relative to the 7,431 thousand ounces AuEq at 5.06 gpt at year-end 2024. Prior to ore mined, Measured and Indicated Resources increased 247 thousand ounces AuEq (+3%), reflecting a successful infill drill campaign at ELG Underground and commencement of infill drilling at Media Luna mid-year.
Total Inferred Resources are estimated at 2,906 thousand ounces AuEq at an average grade of 4.10 gpt, representing a 30% increase relative to the 2,243 thousand ounces AuEq at 4.22 gpt at year-end 2024. The increase in Inferred Resources reflects drilling success at Media Luna North and ELG Underground as well as an inaugural Inferred Resource at Media Luna West of 506 thousand ounces AuEq at a grade of 5.11 gpt. In addition to the impact of drilling, depletion, and model updates on mineral resource estimates for Morelos, the Company made adjustments within the application of RPEEE in estimating resources.
The application of RPEEE at Morelos now aligns with how RPEEE is applied at Los Reyes. Mineral resource estimates prepared for open pit and underground mining methods are constrained for purposes of RPEEE within potentially mineable shapes. Open pit mining methods are constrained using optimized surfaces based on operational information above a cut-off grade and underground mining methods are reported within a potentially mineable shape above a cut-off grade.
In cases where potentially mineable volumes contain material with grades below the stated cut-off grade, this material has also been included in the mineral resource estimate. This 'must take' material added tonnes and lowered resource grades versus previous resource estimates for Morelos. The application of RPEEE is aligned with CIM best practice guidelines.
The direct application of RPEEE does not impact mineral reserves, which already account for economic extraction and incorporate dilution. Torex acquired the Los Reyes project in Sinaloa, Mexico in 2025 through the acquisition of Prime Mining. The mineral resource estimate for Los Reyes is unchanged from the mineral resource estimate previously published by Prime Mining (effective date of October 15, 2024).
AuEq values incorporated into the Los Reyes resource estimate follow industry best practices, are aligned with the methodology applied at Morelos, and take into account underlying metal prices and recoveries for each deposit and processing route. A preliminary economic assessment on Los Reyes is on track for completion by mid-2026 and will be based on the most recent resource model. The Company plans to commence a prefeasibility study on Los Reyes later this year, which is expected to be based on an updated resource model incorporating planned future drilling as well as a review of underlying metal prices and other parameters following completion of the preliminary economic assessment.
Metal prices for Au, Ag, and Cu used to estimate mineral reserves and mineral resources for Morelos have modestly increased relative to prior assumptions. Metal prices used to estimate mineral resources at Los Reyes are unchanged.
