07:26 AM EDT, 04/28/2020 (MT Newswires) -- Torex Gold Resources (TXG.TO) reported Tuesday that in 2019 its El Limon Guajes (ELG) Complex, total gold reserves declined 9% or near 0.22 million ounces, with the gold price used to estimate the year-end gold reserves unchanged at US$1,200 per ounce.

Torex said in a statement that open pit gold reserves declined 19% year-over-year due to depletion. Exploration success resulted in underground gold reserves increasing 140%, net of depletion.

CEO Fred Stanford said: "By the beginning of 2024, the open pit portion of ELG will be mined out and Torex expects to be mining exclusively from underground resources, primarily from Media Luna. Between now and 2024, we have lots of time to continue the process of upgrading underground resources to reserves. In 2019 we completed the first infill drill program at Media Luna and upgraded 2.24 million gold equivalent ounces to the Indicated resource category. These ounces will be considered for conversion to reserves in a feasibility study, which is underway and is expected to be complete in H1 2021."

Torex noted that Media Luna contains an Inferred resource of 4.56 million gold equivalent ounces. It said some of these ounces will be targeted for upgrade to the Indicated resource category in a 2020 infill drill program. And it added the timing of the infill drill program is such that the resulting upgraded ounces are also expected to be considered for conversion to reserves in the 2021 feasibility study.

It said: "The ELG deposits also show significant down dip potential, some of which is currently being mined at Sub-Sill. The 2019 ELG underground exploration program resulted in a 140% increase in reserves, net of depletion. In 2020, the exploration program will continue under the El Limon pit at both Sub-Sill and ELD, and even broaden out to determine whether mineralization continues below the Guajes pit. We are preparing for the transition to underground mining, well in advance, and look forward to capitalizing on the potential of these underground resources and of our proprietary Muckahi Mining System."

Also, the company announced that it is continuing to rely on an exemption provided under Ontario securities law and plans to file the annual information form on or around May 6, 2020.

Shares on Monday eased down less than 1.0% to $20.37 apiece in a 52-week range of $8.79 - 22.45.

Price: 20.37, Change: -0.07, Percent Change: -0.34