Torex Drilling Update
The Company began its 2010 exploration program during the quarter ended April 30, 2010 and
has been advancing the program on several fronts subsequent to the quarter end. Several
agreements have been entered into, including agreements for drilling, sampling, processing,
and surveying. Additional personnel have been added at both the head office and locally in
Mexico. Negotiations have been held with the local Ejido groups resulting in the signing of
certain land access agreements.
During the quarter ended April 30, 2010, the Company entered into a contract with Energold
Drilling Corp. (“Energold”) for approximately 10,000 metres of diamond drilling. The Energold
drill is a modular rig capable of drilling HQ, NTW and BTW diameter core. The first drill was
mobilized to site and drilling began in the middle of April 2010.
The first drill target was the El Caballo area, located approximately 1 km to the north of the
Guajes East deposit. Mapping in the El Caballo area revealed the presence of a granodioritic
intrusive complex, as well as hornfelsed sediments. The geology of this area has similarities to
the setting of the El Limon, Guajes East and Guajes West deposits. To April 30, 2010, 512
metres of HQ core was drilled.
The Company’s current expectation is to mobilize the next drill rig during the month of June
and to release the first batch of drill results at the end of the third fiscal quarter of 2010. The
continued focus of this program will be the drilling of property-wide targets, which are outside
of the existing resource areas.
Also during the quarter ended April 30, 2010, the Company began collecting soil samples in the
El Fe area located south of the Balsas River. In total, 217 soil samples were collected at 50
metre intervals along 200 metre spaced lines over a 800 x 3,200 metre area. The purpose of this
work was to extend and verify the soil sampling conducted by Teck Resources Ltd. (“Teck”) in
2008.
Subsequent to the quarter end, the Company entered into an agreement with SGS de Mexico
S.A. de C.V. (“SGS”) to establish a Sample Preparation Laboratory (“Prep. Lab”) in the town of
Nuevo Balsas, to prepare both soil and rock samples at the Prep. Lab and to test samples at the
SGS Durango laboratory. Currently, drill core is being transported from the drill rig to MML’s
secure core logging facility in Balsas. Once at the facility, the core is photographed, logged,
marked for sampling and sawn in half for sampling, with one-half of the core retained for
verification purposes and one-half sent for analysis. Samples are being transported to the SGS
Durango laboratory for sample preparation (crushing and pulverizing) and analysis until the
Prep. Lab is operational. Transportation costs will be greatly reduced once the Prep. Lab in
Nuevo Balsas begins operating, which is expected to occur during the month of June. Analysis
of the samples will continue to occur at the SGS Durango laboratory. SGS is independent of
Torex and the SGS Durango laboratory conforms to the requirements of the ISO/IEC 17025
standard for the General Requirements for the Competence of Testing and Calibration
Laboratories.
AMEC E&C Service Inc. was engaged and has developed comprehensive Quality Assurance /
Quality Control protocols, including the use of duplicates, blanks, and standard reference
materials for use at the Morelos Gold Project.
The Company has added Mr. Jeff Brooks, Ph.D. as its Chief Geologist and Mr. José Texidor-
Carlsson, M.Sc. as its GIS/Database Manager. In addition, the Company has added several local
employees to aid in the ongoing exploration program.
