Torex Gold Provides Q2 2026 Morelos Drilling & Exploration Update

Torex Gold Resources Inc. (TXG) released second-quarter 2026 drilling results from the Morelos Complex, encompassing the Media Luna Cluster and ELG Underground, on July 13, 2026. The company highlighted several significant intercepts across its properties. At Media Luna East, results included 7.5 m @ 9.14 g/t AuEq (MLE26-013) and 8.8 m @ 4.98 g/t AuEq (MLE26-018D). Intercepts at the Media Luna Main Orebody included 9.5 m @ 6.09 g/t AuEq (MLLI-056), 10.0 m @ 5.57 g/t AuEq (MLLI-058), and 28.2 m @ 3.23 g/t AuEq (MLLI-059). Media Luna North returned 44.9 m @ 11.34 g/t AuEq (MLND-003) and 33.4 m @ 13.93 g/t AuEq (MLND-010). Results from ELG Underground (El Limón Sur) included 7.3 m @ 13.36 g/t AuEq (LS-479), 11.2 m @ 7.85 g/t AuEq (LS-494), 7.7 m @ 14.98 g/t AuEq (SST-459), and 27.4 m @ 4.20 g/t AuEq (SST-462).

CEO statements indicated that the results provide further optimism for ongoing resource expansion and mine life additions, noting that Media Luna East shows a vertical extension of higher-grade mineralization of at least 100 m. Regional exploration continues at Atzcala and El Naranjo, with 16 rigs active. Media Luna North is on track for first production by year-end.

Torex Gold Resources Inc. (TXG) is a large, established gold-copper producer with a market capitalization exceeding $3.8 billion and annual production guidance of 420,000 to 470,000 ounces of gold equivalent. Routine infill and step-out drilling at existing operations generally carries low materiality unless the results significantly extend mine life or increase reserves.

At the Media Luna North project, first ore is on track for late 2026, with reserves already booked at 719,000 ounces of gold equivalent at a grade of 4.03 grams per tonne. These high-grade intercepts confirm the existing reserve model but do not add new tonnage outside the known area.

At the ELG Underground operation, mine life was previously extended to 2029–2031 through prior drilling. These recent results are consistent with that profile but do not push the timeline materially further. The 2026 exploration budget is $43 million for Morelos, meaning such news is part of the expected exploration flow.

The stock chart shows a sustained downtrend from $83 in late February to $53 on July 13, driven by broader market and macro factors rather than operational concerns. The drill results are unlikely to reverse this trend.

In context, the company’s main material catalysts are the Los Reyes Preliminary Economic Assessment, released the previous week, and the capital return program, rather than these drill assays.

Torex Gold Resources Inc. (TSX: TXG) is a Canadian-listed mid-tier gold-copper producer focused on the Morelos Complex in Guerrero, Mexico. The company operates underground mines, including ELG and Media Luna, which feed a central 10,600 tpd processing plant that produces doré and copper concentrate.

Current reserves stand at 4.84 moz AuEq at a grade of 3.80 g/t, encompassing Media Luna, Media Luna North, ELG underground and open pit areas, and stockpiles. Measured and indicated resources total 9.3 moz AuEq across the Morelos Complex and the recently acquired Los Reyes project, which holds 1.5 moz Au and 54 moz Ag in indicated resources.

For 2026, the company has issued guidance for 420-470 koz AuEq production at an all-in sustaining cost (AISC) of $1,750-1,850/oz. Torex is targeting $350M in capital returns through dividends and buybacks, alongside a $77M exploration budget allocated for 148,500 m of drilling.

Key growth initiatives include Media Luna North, with first ore expected late 2026; Los Reyes, where a preliminary economic assessment has been completed and a pre-feasibility study is underway with targeted production in 2031; and early-stage exploration in Nevada and Mexico.