Torex Gold’s mining suspension in Mexico lifted

Torex Gold Resources (TSX: TXG) is allowed to resume activities at its Morelos mine complex after Mexico’s Director General of Mines lifted its temporary suspension on Wednesday.

The company was ordered to suspend activities on Dec. 9 following a carbon monoxide leak at the El Limón Guajes (ELG) underground mine that resulted in the death of three workers and the hospitalization of another. The gold miner had initially announced a resumption of operations following a 24-hour standdown before the suspension notice was issued.

Investigations into the incident, both internally and by Mexican authorities, remain ongoing.

In a press release Wednesday, Torex CEO Jody Kuzenko confirmed all production and development activities at the Morelos complex will resume. This includes open pit and underground mining at ELG, processing operations, and all activities associated with the nearby Media Luna project.

She added that Torex’s 2024 production forecast remains intact, with the company tracking towards the lower end of the guided range of 450,000-470,000 oz. of gold.

Also, the project schedule for Media Luna remains unchanged, with the four-week processing plant tie-in period on track to commence in February 2025.

Torex Gold’s shares rebounded by 7.3% to C$29.10 apiece as of 11:50 a.m. in Toronto, within the high end of its 52-week range (C$12.79-C$32.75). The company has a market capitalization of approximately C$2.5 billion.