Scotia Why we believe Torex is a takeoutWhy We Believe Torex is a Takeout
In addition, to the high-grade 3.0 million ounce resource that appears to keep growing north of the river, we like Torex for the following reasons::
350,000 oz of annual production - The Morelos project would move the
needle for any mid-tier producer and could be relevant foreven bigger
companies if blue sky potential comes in.
Virgin territory "south of the river" - Skarn alteration crosses the river and
continues wrapping around the hillside to the east. As shownin Exhibit 1, this
undrilled target is well defined by geochemical sampling anddisplays the
same signature where drilling has defined 3.0 million ouncesto date. With
success here, 10 million ounce potential is not an unreasonable assumption, in
our view.
Infrastructure, skills and supplies - In central Mexico,Morelos is located a
phone call away from services and material