Torex Gold has resumed drilling at its Los Reyes gold-silver project in Mexico, with drilling restarting on May 26, 2026. The project is located about 45 kilometres southeast of Cosalá in the state of Sinaloa. The work targets mineralization within Mexico’s Sierra Madre Occidental volcanic belt. This belt hosts epithermal gold and silver systems that are structurally controlled and sensitive to local geology.
Los Reyes geology and epithermal system characteristics
The Los Reyes project includes both low-sulfidation and intermediate-sulfidation epithermal systems. Low-sulfidation mineralization is described as typically producing free-milling gold suitable for conventional cyanide leaching. Intermediate-sulfidation systems can include more complex sulfide mineralization that may require advanced metallurgical treatment. The presence of both system types is cited as influencing mine design and processing decisions.
Prime Mining acquisition and rapid transition to drilling
Torex Gold acquired control of Los Reyes through its purchase of Prime Mining, with the transaction finalized in May 2026. Drilling resumed only weeks after the acquisition closed, on May 26, 2026. The source notes that such a rapid restart is unusual because most transactions typically involve months of integration, permitting verification, and contractor mobilization. It also states that Torex Gold conducted technical due diligence prior to closing, including early-stage geological validation, permitting and regulatory assessment, and contractor and logistics preparation.
Drilling focus on three mineralized corridors
The current drilling program at Los Reyes is focused on three mineralized corridors: the Guadalupe Trend, the Zapote-Tahonitas Trend, and the Central Trend. The Guadalupe zone is identified as the highest priority target area based on historical drilling results and resource concentration. Geological continuity along strike is described as supporting potential for both resource confirmation and expansion drilling.
The Zapote-Tahonitas corridor is described as structurally distinct, with potential for lateral growth of the mineralized system. The Central zone is presented as a structural link between the two outer trends, contributing to broader deposit geometry and overall resource continuity. The source also states that drilling to date has been concentrated within these three zones, leaving large portions of the concession area underexplored.
Preliminary Economic Assessment planned for mid-2026
An upcoming Preliminary Economic Assessment (PEA) for Los Reyes is expected by mid-2026. The PEA is described as not being a final feasibility study but as determining whether a project has sufficient economic potential to justify more advanced engineering work. Key items identified for evaluation include mining method selection, processing throughput, silver recovery performance, and infrastructure requirements.
The mining method decision between open-pit and underground mining is cited as a factor affecting project economics. Processing throughput is described as influencing capital costs, operating efficiency, and mine life assumptions. Silver recovery performance will be assessed given the project’s strong silver component, with recovery in complex sulfide systems noted as variable depending on processing methodology. Infrastructure considerations include power supply, water availability, road access, and proximity to processing facilities.
Mexico regulatory reforms affecting exploration planning
The source links the Los Reyes program to Mexico’s evolving mining regulation environment. It cites recent reforms as introducing uncertainty around concession duration and renewal conditions, water usage rights, and environmental and community consultation requirements. It also states that this uncertainty contributed to a slowdown in exploration investment in prior years as companies adopted more cautious capital deployment approaches.
The regulatory framework is described as becoming more defined while remaining complex. Companies operating in regions such as Sinaloa are said to need to balance technical execution with environmental and community engagement strategies. The source further notes that maintaining a social licence to operate can be important for avoiding delays, legal challenges, or operational disruptions.
Torex Gold’s Mexico operating footprint via El Limón-Guajes
Torex Gold’s existing operations in Mexico include the El Limón-Guajes mine. The source states that this footprint provides deep regulatory experience within Mexico, proven relationships with local communities, operational familiarity with regional infrastructure, and institutional knowledge of permitting processes. It adds that these factors can reduce execution risk when navigating development environments such as Sinaloa.
The restart of drilling at Los Reyes is presented as part of a broader shift in Mexico’s gold and silver sector toward active exploration and resource expansion following earlier corporate restructuring activity. The source also notes that projects like Los Reyes are increasingly important for shaping future precious metals supply amid strong global demand and slower supply growth.
