In Guerrero, Mexico’s biggest gold producer is about to get even bigger

With the completion of an unprecedented 7-kilometer-long tunnel, Torex Gold Resources — Mexico’s largest golden shaper — anticipates greater operational ratio astatine its 29,000-hectare Morelos spot successful the authorities of Guerrero.

The underground tunnel, which passes beneath the Balsas River, links the Canadian golden producer’s highly productive El Limón Guajes excavation with its caller Media Luna project.

The task connected a caller mining country to the established Limón Guajes mine. (Torex Gold/X)

The tunnel, completed March 26, is conscionable 1 portion of a monolithic processing works tie-in task designed to nexus the 2 mines and heighten Torex Gold’s biology sustainability successful Mexico, institution officials said.

Torex Gold CEO Jody Kuzenko did the honors of detonating the last explosives to implicit the passageway aft which helium praised the engineers and workers who completed the passageway successful grounds time. The passageway — 6 meters wide and 6.5 meters precocious — was completed 3 months up of schedule.

In July 2024, El Limon-Guajes surpassed Peñasquito to go Mexico’s largest golden producer, with an output of 453,800 ounces. The Peñasquito excavation — operated by Canada’s Newton Corporation — is located successful the authorities of Zacatecas.

According to a task overview published by Torex Gold, Media Luna — discovered successful March 2012 — is an underground deposit that chiefly contains gold, copper and metallic mineralization.

In summation to the tunnel, the Media Luna enlargement includes a h2o attraction works and a caller “flotation circuit” — a metallurgical process that uses aerial bubbles and chemicals to abstracted invaluable minerals from discarded rock.

From August 2022 done September 2024, Torex Gold spent US $840 cardinal connected the operation and engineering task astatine Media Luna.

The institution besides acquired what it called “the largest underground fleet of electrical vehicles successful Latin America.” The 80 emission-free vehicles volition transport materials betwixt mines, chiefly carrying minerals from Media Luna to the processing works astatine El Limón-Guajes.

“The task volition consolidate our presumption arsenic Mexico’s largest golden shaper portion besides making america a applicable histrion successful copper production,” the institution said successful a statement.

Guerrero Governor Evelyn Salgado, Canada’s Ambassador to Mexico Cameron MacKay and Lloyd Walton Álvarez, a typical of Mexico’s Economy Ministry, attended the inauguration ceremonial alongside astir 1,000 employees, contractors, section and authorities officials and members of the public.

A typical of the Canadian institution Torex Gold speaks astatine the inauguration of the caller tunnel. (Evelyn Salgado/X)

Julián Urióstegui, president of Guerrero’s Business Coordinating Council, praised Torex Gold for its connections to section providers, sustainable practices and assemblage outreach efforts.

With the Media Luna project, Torex supports a web of implicit 1,500 section providers portion offering grooming and financing to those seeking engagement successful the state’s mining worth chain, Urióstegui said.

Mining is the 2nd astir important manufacture successful Guerrero, comprising 4.8% of the state’s GDP.

“Mining operations, purchases from section providers and taxes assistance make 4,500 nonstop jobs and 27,000 indirect jobs successful the state,” Gov. Salgado said.

Prospects for golden connected the rise

Despite falling much than 2% Thursday — amid a wider marketplace selloff tied to U.S. President Donald Trump’s import tariffs impacting bullion traders — the terms of gold, a “safe-haven asset,” has been soaring astir of the year.

Gold had deed 17 grounds highs arsenic of March 27, Reuters reported, arsenic investors preferred the precious metallic “in effect to escalating planetary commercialized tensions and tumbling equity markets,” it said.

Gold’s wide upward trajectory appears intact, surging implicit US $500 this year. Additionally, cardinal banks are expected to prolong the rally, further diversifying reserves arsenic a hedge against imaginable U.S. dollar fluctuations caused by Trump’s policies.

With reports from El Economista and Reuters