Equinox Gold Reports Mine Expansion Study in Brazil

Equinox Gold Corp. [EQX-TSXV, EQXGF-OTC] announced Monday the results of a Pre-Feasibility Study (PFS) for the expansion of the Company’s 100% owned Aurizona Gold Mine in Brazil.

The PFS takes into account the expansion to include an underground mine below the existing Piaba pit as well as the inclusion of two satellite opencast mining areas: Tatajuba and Genipapo. By concurrently mining the underground and open pit deposits with the existing Piaba open pit, the expansion would extend the life of the Aurizona Mine to 11 years, with an average annual production of 137,000 ounces of gold. Total production over the life of the mine is estimated at 1.5 million ounces.

Peak production is expected to averaging more than 160,000 ounces per year between 2026 and 2029. Estimated costs are $ 803 per ounce average lifetime cost of the mine and $ 944 average all-in-sustaining cost (AISC) from 2024 (and $ 1,058 per ounce average AISC over the life of the mine ).

On Monday, Equinox shares reacted largely unchanged to the news, down 0.76%, or $ 0.07, to $ 9.04 on a volume of 447,080 shares. The shares currently trade on a 52-week range between $ 17.50 and $ 7.53.

Equinox Gold is a Canadian mining company with seven operating gold mines, an eighth mine under construction, a multi-million ounce gold reserve base, and a clear path to an annual gold production of one million ounces through a pipeline of development and expansion projects.

Equinox operates solely in the Americas, with two properties in the United States, one in Mexico and five in Brazil.

The company has stated that it anticipates production of 470,000 to 530,000 ounces at AISC between US $ 975 and US $ 1,025 an ounce this year.

Recently, the company cemented its status as a leading gold producer with a focus on America by agreeing to partner with Premier Gold Mines Ltd. in a friendly share swap valued at $ 612 million.

The transaction should open a clear path to production for the Hardrock gold project in Ontarion, which contains 5.54 million ounces of proven and probable gold reserves grading 1.27 g / t and is to be developed in a joint venture with Orion Mine Finance .

Hardrock is said to produce 358,000 ounces of gold annually over a 14-year lifespan, with an average of 414,000 ounces per year in the first five years.

Meanwhile, the updated mineral reserve and resource estimates for Aurizona, which incorporate the new underground and open pit deposits while offsetting 18-month mining depletion, show a 73% increase from a December 31, 2019 estimate of 1.7 Millions of ounces of gold in the Proven and Probable Reserves category grading 1.60 g / t gold. Add to this 868,000 ounces of gold in the Measured and Indicated Resource category grading 1.49 g / t gold.