With the completion of an unprecedented 7-kilometer-long tunnel, Torex Gold Resources — Mexico’s largest gold producer — anticipates greater operational efficiency at its 29,000-hectare Morelos property in the state of Guerrero.
The underground tunnel, which passes beneath the Balsas River, links the Canadian gold producer’s highly productive El Limón Guajes mine with its new Media Luna project.
The tunnel, completed March 26, is just one part of a massive processing plant tie-in project designed to link the two mines and enhance Torex Gold’s environmental sustainability in Mexico, company officials said.
Torex Gold CEO Jody Kuzenko did the honors of detonating the final explosives to complete the tunnel after which he praised the engineers and workers who completed the tunnel in record time. The tunnel — 6 meters wide and 6.5 meters high — was completed three months ahead of schedule.
In July 2024, El Limon-Guajes surpassed Peñasquito to become Mexico’s largest gold producer, with an output of 453,800 ounces. The Peñasquito mine — operated by Canada’s Newmont Corporation — is located in the state of Zacatecas.
According to a project overview published by Torex Gold, Media Luna — discovered in March 2012 — is an underground deposit that primarily contains gold, copper and silver mineralization.
In addition to the tunnel, the Media Luna expansion includes a water treatment plant and a new “flotation circuit” — a metallurgical process that uses air bubbles and chemicals to separate valuable minerals from waste rock.
From August 2022 through September 2024, Torex Gold spent US $840 million on the construction and engineering project at Media Luna.
The company also acquired what it called “the largest underground fleet of electric vehicles in Latin America.” The 80 emission-free vehicles will transport materials between mines, primarily carrying minerals from Media Luna to the processing plant at El Limón-Guajes.
“The project will consolidate our position as Mexico’s largest gold producer while also making us a relevant actor in copper production,” the company said in a statement.
Guerrero Governor Evelyn Salgado, Canada’s Ambassador to Mexico Cameron MacKay and Lloyd Walton Álvarez, a representative of Mexico’s Economy Ministry, attended the inauguration ceremony alongside roughly 1,000 employees, contractors, local and state officials and members of the public.
Julián Urióstegui, president of Guerrero’s Business Coordinating Council, praised Torex Gold for its connections to local providers, sustainable practices and community outreach efforts.
With the Media Luna project, Torex supports a network of over 1,500 local providers while offering training and financing to those seeking involvement in the state’s mining value chain, Urióstegui said.
Mining is the second most important industry in Guerrero, comprising 4.8% of the state’s GDP.
“Mining operations, purchases from local providers and taxes help generate 4,500 direct jobs and 27,000 indirect jobs in the state,” Gov. Salgado said.
Prospects for gold on the rise
Despite falling more than 2% Thursday — amid a wider market selloff tied to U.S. President Donald Trump’s import tariffs impacting bullion traders — the price of gold, a “safe-haven asset,” has been soaring most of the year.
Gold had hit 17 record highs as of March 27, Reuters reported, as investors preferred the precious metal “in response to escalating global trade tensions and tumbling equity markets,” it said.
Gold’s overall upward trajectory appears intact, surging over US $500 this year. Additionally, central banks are expected to sustain the rally, further diversifying reserves as a hedge against possible U.S. dollar fluctuations caused by Trump’s policies.
With reports from El Economista and Reuters
