Torex Gold Provides Q3 2026 Morelos Drilling & Exploration Update

Torex Gold Resources Inc. (TXG) released its third-quarter 2026 drilling and exploration update for the Morelos project, detailing assay results across four distinct areas. As a producing mid-tier miner, the company treats this routine quarterly exploration bundle as preparatory data for a reserve and resource update scheduled for March 2027.

The update highlighted significant intercepts in the San Miguel corridor, identified as a new area of interest. Key results included MLE26-025, which returned 31.2 meters at 11.28 g/t AuEq, including 5.4 meters at 18.93 g/t and 2.3 meters at 21.28 g/t. Other notable intercepts in the corridor included MLE26-035D with 20.2 meters at 10.75 g/t AuEq and 25.0 meters at 5.86 g/t AuEq, MLE26-023D with 20.7 meters at 8.42 g/t AuEq, and MLE26-024D with 16.2 meters at 10.01 g/t AuEq and 40.4 meters at 6.23 g/t AuEq. True widths for these intercepts were not available.

At the Media Luna mine, infill and upgrade drilling yielded strong results. MLUI-005 returned 18.2 meters at 18.37 g/t AuEq, while MLUI-004 returned 38.9 meters at 16.64 g/t AuEq, including a high-grade interval of 4.1 meters at 77.14 g/t AuEq. Additional intercepts included MLUI-003 with 18.2 meters at 9.73 g/t AuEq and MLLI-063 with 17.1 meters at 13.82 g/t AuEq.

Reserve definition and de-risking efforts at Media Luna North produced several substantial intercepts. MLND-010 returned 33.4 meters at 13.93 g/t AuEq and 38.4 meters at 18.47 g/t AuEq. Other results included MLND-025 with 42.5 meters at 10.61 g/t AuEq, and MLND-024 with 40.6 meters at 10.05 g/t AuEq and 17.8 meters at 12.47 g/t AuEq.

Drilling at the ELG Underground site focused on the new Z71-fault area, where SST-491 returned 35.0 meters at 14.32 g/t AuEq with a true width of 21.8 meters. Additional intercepts included SST-484 with 7.0 meters at 19.93 g/t AuEq, LS-517 with 6.4 meters at 56.80 g/t AuEq, and LS-512 with 11.3 meters at 7.02 g/t AuEq.

Regional exploration at early-stage, epithermal-style systems at Atzcala and El Naranjo involved 1,817 meters across four holes and 2,312 meters of drilling, respectively. No meaningful assays were cited for these areas. To support these activities, Torex raised its 2026 Morelos exploration budget to a record $51 million, with 15 rigs currently active.

Torex Gold Resources Inc. (TXG) is an established producer with a market capitalization of approximately C$6.4 billion and reported H1-2026 revenue of $946 million. For a producer of this scale, a drill result is considered material only if it directly alters reserves, mine life, or net asset value (NAV). Today’s release does not change those metrics directly; instead, it feeds into a March 2027 resource update and supports the reserve-replacement and mine-life-extension narrative already recognized by the market.

The market already assumes Morelos drilling continues to replace depletion, supported by a record 2026 budget of $51–85 million. This marks the fourth strong quarterly drill update in a row. Q2 2026 (July) delivered comparably strong holes, including MLND-003 at 44.9 m @ 11.34, MLND-010 at 33.4 m @ 13.93, and MLLI-048 at 16.7 m @ 16.74, with Q1 delivering similar results. This Q3 set is in-line rather than a step-change.

The San Miguel corridor represents a new concept, describing a potential continuous east-west mineralized corridor from Media Luna West to southeast of the Media Luna mine, featuring a ~100 m vertical feeder and assay support. If confirmed, it could considerably add to the overall Morelos resource inventory, justifying an extra 9,100 m of drilling in 2026 and a proposed ~30,000 m programme in 2027. This is the most thesis-relevant item, though it remains early, with no true width, no resource, and no assays on the majority of holes.

Prior anchor results are comparable or stronger on headline grade-metre (g-m). For example, MLND-010 reported 38.4 m @ 18.47 in this release, previously reported. The stock has not re-rated on recent drill news, drifting from $83 in February to $52 in June before recovering to approximately $69, largely driven by higher metals and operational delivery rather than drilling. The release confirms existing data rather than clearing an embedded anchor.

Torex Gold Resources Inc. (TXG) is a Canadian mid-tier gold-silver-copper producer. Its flagship Morelos Complex in Guerrero, Mexico, is an integrated underground-plus-open-pit operation feeding a 10,600 tpd plant. Media Luna reached commercial production in May 2025, while Media Luna North is on track for first ore in late 2026. Copper serves as a large by-product, with 60-65 million pounds guided for 2026, representing approximately 20% of AuEq by volume.

The company added the Los Reyes gold-silver development project in Sinaloa through the approximately $436 million Prime Mining acquisition in October 2025. The project’s preliminary economic assessment indicates an after-tax NPV(5%) of $1,491 million, a 37.3% IRR, a 14.4-year life, and $515 million in upfront capex, which is funded internally. Exploration assets include Batopilas/Guigui in Chihuahua, La Gloria in Sonora, Gryphon (70% earn-in), and Medicine Springs (100%) in Nevada.

The balance sheet is net-cash with $0 debt, $169 million in cash, and approximately $506 million in liquidity. The company is returning $350 million to shareholders in 2026 through a dividend of C$0.16 per quarter plus buybacks. New CEO Andrew Snowden and CFO Dan Rollins took over in June 2026, and a NYSE secondary listing is planned.