10:55 AM EDT, 09/19/2017 (MT Newswires) -- Torex Gold Resources (TXG.TO) on Tuesday gained 3.7% to $19.97 apiece after it intercepted high grade mineralization in the step-out drilling at the Sub-Sill resource area associated with its El Limon-Guajes Mine in Southwest Mexico.

Intercepts from the program include 41.4 g/t Au over 19.3m in a 40-meter step-out to the north, in borehole SST-71. To the northwest, in a 130-meter step-out, borehole SST-91 intercepted 35.9m of 5.7 g/t Au, including 3.5m of 32.2 g/t Au, and another 3.5m of 14.1 g/t Au. In a more westerly direction, in a 240-meter step-out, borehole SST-88 intercepted 11.6 g/t Au over 3.6 meters.

Chief Executive Officer Fred Stanford said: "The high grade results from the step-out drilling in the quadrant to the NW of the resource area, including a 240m step-out borehole, certainly confirm the potential for additional resources in this direction."

He added: "Step-out drilling will continue, as will underground mining activities to install infrastructure and extract mineral for processing."

In a statement, the company said that the positive results to date confirm the geological continuity of both the skarn zones and the mineralization system. "The results to-date of the drilling program also demonstrates the existence and continuity of other mantos underneath the main resource zone," said the company.

At the Sub-Sill area, several skarn zones have been identified along the contacts of the carbonate rich sediments and marbles of the Cuautla and Morelos formations and sills fingering out from granodiorite stocks. High grade gold mineralization has been intercepted in all the different skarn horizons. Within the skarn zones individual shoots of mineralization vary in strike length from approximately 50 meters up to 200 meters, with apparent thickness varying from 2 meters to 36 meters.