Equinox Gold Commences Processing Ore at Greenstone Project: First Gold Pour on Track for Q2 2024
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The commissioning progress at Equinox Gold's Greenstone Project is a substantial development, particularly for investors and stakeholders interested in the gold mining sector. With the project poised to become one of Canada's largest gold mines, the projected annual production of 400,000 ounces in the first five years could significantly enhance Equinox Gold's revenue stream. The long-term projection of over five million ounces of gold across a 14-year mine life suggests a robust addition to the company's asset base.
Given the scale of the project, the operational costs and the potential for economies of scale will be closely watched. The statement that Greenstone will be Equinox's largest and lowest-cost mine is notable. However, investors should monitor cost disclosures and production efficiency as the mine progresses towards commercial production in Q3 2024. The stockpiling of 1.5 million tonnes of ore and the pre-crushing of 70,000 tonnes for commissioning feed indicate a strategic approach to ramp-up production, which could lead to a smoother transition to full capacity.
The gold market is influenced by a variety of factors including economic indicators, currency fluctuations and supply-demand dynamics. The introduction of a new substantial player like the Greenstone Project can impact gold prices by altering the supply side. While the immediate effect may be limited, the incremental addition of 400,000 ounces annually is not insignificant.
It's also important to consider the macroeconomic environment. In times of economic uncertainty, gold often acts as a safe-haven asset. The timing of Greenstone's production commencement could be fortuitous if it coincides with such conditions. However, if the economy is stable and risk appetite is high, the additional supply may exert downward pressure on prices, which could affect Equinox's profitability.
The technical aspects of the Greenstone Project's commissioning phase are important for its long-term success. The use of high-pressure grinding rolls (HPGR) indicates a modern approach to ore processing that has the potential to improve efficiency and reduce energy consumption. The phased commissioning process, starting with the crushing circuit and ore storage, followed by HPGR, ball mill and leach tanks, demonstrates a methodical and risk-mitigated approach.
However, it's worth noting that the mining sector often faces unforeseen challenges during ramp-up to full production. While the plant equipment is reported to be working as expected, stakeholders should remain aware of the risks associated with scaling up operations. The hiring of over 400 positions and the onboarding of all senior plant operators are positive signs of the company's preparedness. The safety record, with 6.4 million hours worked and only one lost-time injury, reflects well on the company's operational management.
Vancouver, British Columbia--(Newsfile Corp. - April 9, 2024) - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) is pleased to provide an update on commissioning progress at its Greenstone Project in Ontario, Canada. The Greenstone Project is being developed as a 60/40 partnership, respectively, by Equinox Gold and Orion Mine Finance Group and will be one of the largest gold mines in Canada, producing approximately 400,000 ounces of gold annually for the first five years and more than five million ounces of gold over its initial 14-year mine life.
Ore was introduced into the grinding circuit on April 6, with first gold pour expected in May. More than 1.5 million tonnes of ore have been stockpiled and 70,000 tonnes of low-grade ore has been pre-crushed to use for early commissioning feed. Progressively higher-grade ore will be fed into the mill as production ramps up toward planned throughput of 27,000 tonnes per day, with commercial production targeted for Q3 2024.
Greg Smith, President & CEO of Equinox Gold, commented: "Following 2.5 years of construction, Greenstone is on schedule to commence gold production in the first half of the year, as planned. This is a significant achievement and a testament to the experience of the Greenstone team. Greenstone is a world-class asset, and reaching production will be a pivotal milestone for Equinox Gold. Once operating at full capacity, Greenstone will be our largest and lowest cost-mine. We look forward to first gold in May and continuing to advance the project to commercial production."
Commissioning of the plant began earlier this year, initially with the crushing circuit and ore storage dome, followed by the high-pressure grinding rolls (HPGR), ball mill #1, and thickener and leach tanks. Flocculant and lime were loaded into the system during the last week of March and the full system was water tested during the first week of April. The equipment is working as expected and ball mill #2 will be brought online in the coming weeks as throughput is progressively increased. Hiring is on track with more than 400 positions filled, and all senior plant operators are on board.
Greenstone has worked 6.4 million hours project to date with one lost-time injury. Progress has been documented since construction began in a photo gallery on Equinox Gold's website at www.equinoxgold.com, and select photos are included in this news release.
Equinox Gold Contacts
Greg Smith, President & CEO
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com
About Equinox Gold
Equinox Gold is a growth-focused Canadian mining company with seven operating gold mines, commissioning underway at a new mine, and a plan to achieve more than one million ounces of annual gold production by advancing a pipeline of expansion projects. Equinox Gold's common shares are listed on the TSX and the NYSE American under the trading symbol EQX. Further information about Equinox Gold's portfolio of assets and long-term growth strategy is available at www.equinoxgold.com or by email at ir@equinoxgold.com.
Greenstone Photos
Site overview.
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Haul truck at crusher.
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First ore to mill.
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Conveyor with ore feed to secondary crusher.
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Crushed ore storage dome.
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Cautionary Notes
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements and forward-looking information in this news release relate to, among other things: the Company's ability to successfully complete commissioning and achieve production at Greenstone; the Company's expectations regarding the timing of first gold pour and achieving commercial production; the Company's expectations for the operation of Greenstone, including production capabilities and future financial or operating performance; the Company's ability to work effectively with its joint venture partner at Greenstone; the strategic vision for the Company and expectations regarding exploration potential, production capabilities and future financial or operating performance; and the Company's ability to successfully advance its growth and development projects. Forward-looking statements or information generally identified by the use of the words "will", "advance", "plan", "expect", "achieve", "on track", "on schedule", "target", "continue", and similar expressions and phrases or statements that certain actions, events or results "could", "would" or "should", or the negative connotation of such terms, are intended to identify forward-looking statements and information. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. The Company has based these forward-looking statements and information on the Company's current expectations and projections about future events and these assumptions include: commissioning at Greenstone being completed and performed in accordance with current expectations, including estimated capital costs remaining as expected; availability of funds for the Company's projects and future cash requirements; Greenstone Mineral Reserve and Mineral Resource estimates and the assumptions on which they are based; Equinox Gold's ability to achieve the production, cost and development expectations for its respective operations and projects; prices for gold remaining as estimated; currency exchange rates remaining as estimated; no labour-related disruptions and no unplanned delays or interruptions in scheduled commissioning, construction, development and production, including by blockade; the expansion projects at Los Filos, Castle Mountain and Aurizona being completed and performed in accordance with current expectations; tonnage of ore to be mined and processed; ore grades and recoveries remaining consistent with mine plans; all necessary permits, licenses and regulatory approvals are received in a timely manner; successful relationships between the Company and its joint venture partner and between the Company and its Indigenous partners at Greenstone; and the Company's ability to comply with environmental, health and safety laws. While the Company considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forward-looking statements or information contained in this news release.
The Company cautions that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements and information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental risks, geotechnical failures, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and Indigenous partners; the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner or at all; changes in laws, regulations and government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining; increased competition in the mining industry; and those factors identified in the section titled "Risks and Uncertainties" in Equinox Gold's MD&A dated February 21, 2024 for the year ended December 31, 2022, and in the section titled "Risks Related to the Business" in Equinox Gold's most recently filed Annual Information Form, both of which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar. Forward-looking statements and information are designed to help readers understand management's views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, Equinox Gold assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement or information contained or incorporated by reference to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements and information. If Equinox Gold updates any one or more forward-looking statements, no inference should be drawn that Equinox Gold will make additional updates with respect to those or other forward-looking statements. All forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement.
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