Torex continues to find high-grade gold mineralization at Mexico project

May 30 (Reuters) - Canada's Torex Gold Resources Inc , which resumed exploration at its Morelos gold project in Mexico earlier this month, said it continues to find high-grade gold mineralization at the project's El Limon deposit.

Torex restarted exploration at its only project on May 16, two months after it suspended drilling at the site due to violence in the immediate area. [ID:nL4E7GG1O2]

All the three boreholes drilled to date at the eastern end of the deposit have significant mineralized intervals at encouraging grades, Torex said in a statement.

Morelos project is located in Guerrero state, about 180 kilometers to the south-southwest of Mexico City. It covers an area of 29,000 hectares, of which more than 75 percent remains unexplored.

"Today's results support our confidence in attaining our goal of defining a global resource of 5 million ounces of gold north of the Balsas River," Chief Executive Fred Stanford said.

"The potential to significantly increase the width of the El Limon pit at the southern end of the deposit could not only add significant ounces of gold, but could also enhance the productivity and profitability of potential mining operations."

Torex shares closed at C$1.68 on Friday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)