Equinox Gold Pours First Gold at its Greenstone Mine

Rhea-AI Summary

Equinox Gold (TSX: EQX, NYSE American: EQX) has announced the first gold pour at its Greenstone Mine in Ontario, Canada, achieving this milestone on schedule. The initial production yielded 1,800 ounces of gold, with all equipment performing as expected. This development marks a significant step toward commercial production, anticipated in Q3 2024. The Greenstone Mine is set to be Equinox Gold's largest and lowest-cost producer, expected to produce 400,000 ounces of gold annually for the first five years, and averaging 360,000 ounces per year over its 14-year mine life. This positions Greenstone as one of Canada's major gold mines.

Positive

• First gold pour achieved on schedule.
• Initial production of 1,800 ounces of gold.
• All equipment operating as expected.
• Commercial production expected to commence in Q3 2024.
• Greenstone Mine projected to produce 400,000 ounces of gold annually for the first five years.
• Average annual production of 360,000 ounces over a 14-year mine life.
• Greenstone Mine to become Equinox Gold's largest and lowest-cost producer.
• Greenstone Mine to be one of Canada's largest gold mines.

Negative

• No immediate revenue benefit from the initial gold pour.
• High capital expenditure and operational costs associated with ramping up to full production.
• Dependence on the successful ramp-up to commercial production, without which projected outputs may not be met.
• Potential market risks and fluctuations in gold prices affecting profitability.

Mining Industry Expert

The first gold pour at the Greenstone Mine is a significant milestone for Equinox Gold, positioning the mine as a flagship asset. With an expected production of 400,000 ounces of gold annually for the first five years, the Greenstone Mine represents a major addition to Canada's gold mining landscape. This achievement aligns with industry expectations for new mines, typically taking several years to reach commercial production. Investors should note that while initial production is promising, sustained output and efficiency will be critical in determining the project's long-term success.

Financial Analyst

From a financial perspective, the successful gold pour at the Greenstone Mine can potentially enhance Equinox Gold's revenue streams significantly. With gold prices remaining robust, the mine's projected annual production could bolster the company's top line by $720 million (assuming a gold price of $1,800 per ounce). This development could positively influence the company's stock performance, providing confidence to investors about future profitability. However, it is important to monitor operational costs and efficiency metrics to ensure that the mine remains a low-cost producer as projected.

Market Research Analyst

The strategic importance of the Greenstone Mine cannot be overstated, as it not only enhances Equinox Gold's asset portfolio but also strengthens its position in the competitive gold mining sector. The mine's location in Ontario, a stable and mining-friendly jurisdiction, adds another layer of attractiveness for investors. Additionally, the ramp-up to commercial production in the third quarter of this year suggests that the company has effectively managed its project timelines and risks. Stakeholders should watch for updates on production ramp-up and any potential impact on share prices.

Vancouver, British Columbia--(Newsfile Corp. - May 23, 2024) - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce first gold pour at its new Greenstone Mine in Ontario, Canada.

The Greenstone Mine has achieved its inaugural gold pour on schedule, producing 1,800 ounces of gold from the full recovery circuit, with all equipment operating as expected.

Greg Smith, President & CEO of Equinox Gold, commented: "This first gold pour represents another key step toward achieving commercial production at the Greenstone Mine. This is a proud moment for all involved, and I extend my congratulations to the entire Greenstone team. We look forward to ramping up to commercial production in the third quarter of this year and delivering sustained value from the Greenstone Mine for all our stakeholders."

The Greenstone Mine will be Equinox Gold's flagship asset and largest, lowest-cost producer. When operating at capacity, the Greenstone Mine is expected to produce approximately 400,000 ounces of gold annually for the first five years, and average 360,000 ounces of gold per year for its initial 14-year mine life, making Greenstone one of Canada's largest gold mines.

Greenstone Mine First Gold Pour - May 22, 2024

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/210217_bee2f76af4af2806_001full.jpg

About Equinox Gold

Equinox Gold is a growth-focused Canadian mining company operating entirely in the Americas, with eight operating gold mines and a clear path to achieve more than one million ounces of annual gold production from 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.

Equinox Gold Contacts

Greg Smith, President & Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com

Cautionary Notes and Forward-looking Statements

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 advance Greenstone Mine to commercial and full production and the timing thereof; the Company's expectations for the operation of Greenstone, including production capabilities and future financial or operating performance; and the strategic vision for the Company and the Company's ability to successfully advance its expansion projects. Forward-looking statements or information generally identified by use of the words "look forward", "continue", "will", "deliver", "expect", "toward" "achieve" 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 as 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 but are not limited to: commissioning at Greenstone being completed and performed in accordance with current expectations; Equinox Gold's ability to achieve the exploration, production, cost and development expectations for Greenstone; and the Company's expansion projects being completed and performed in accordance with current expectations. 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; legal restrictions relating to mining; and those factors identified in the section titled "Risks and Uncertainties" in Equinox Gold's Management's Discussion & Analysis dated February 21, 2024 for the year ended December 31, 2023, 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. Forward-looking statements and information are designed to help readers understand management's views 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210217

FAQ

When did Equinox Gold pour its first gold at Greenstone Mine?

Equinox Gold poured its first gold at Greenstone Mine on May 22, 2024.

How much gold was produced in the first pour at Greenstone Mine?

The first gold pour yielded 1,800 ounces of gold.

When is commercial production at Greenstone Mine expected to commence?

Commercial production at Greenstone Mine is expected to commence in the third quarter of 2024.

What is the projected annual gold production of Greenstone Mine?

Greenstone Mine is projected to produce 400,000 ounces of gold annually for the first five years, and to average 360,000 ounces per year over its initial 14-year mine life.

What makes Greenstone Mine significant for Equinox Gold?

Greenstone Mine will be Equinox Gold's flagship asset and its largest, lowest-cost producer, making it one of Canada's largest gold mines.