Equinox Gold's Greenstone Mine Announces Commercial Production
Rhea-AI Summary
Equinox Gold announces commercial production at its Greenstone Mine in Ontario, Canada. During Q3, the mine processed 14,300 tonnes per day (53% of design throughput), producing 42,400 ounces of gold at 79% recovery rate and US$930 per ounce cash cost. Recent operations show improved performance with 20-day throughput averaging 20,400 tpd (76% of design). The crushing and grinding circuits have demonstrated full production capacity of 27,000 tpd. At full production, Greenstone will be among Canada's largest open-pit gold mines, with projected output of 390,000 ounces annually for the first five years and 330,000 ounces annually over a 15-year mine life.
Positive
- Commercial production achieved at Greenstone Mine
- Q3 gold production of 42,400 ounces
- Recent throughput increased to 76% of design capacity (20,400 tpd)
- Crushing and grinding circuits demonstrated full production capacity
- Projected annual production of 390,000 ounces for first five years
Negative
- Q3 throughput at only 53% of design capacity
- Three multi-day shutdowns required during Q3
- Gold recovery rate at 78-79%, below optimal levels
- Cash cost of US$930 per ounce in Q3
Insights
The Greenstone Mine achieving commercial production represents a significant milestone for Equinox Gold, marking a substantial expansion of their production capacity. The Q3 metrics show encouraging progress with
The projected annual production of 390,000 ounces for the first five years will transform Equinox's production profile, potentially making it one of Canada's premier gold producers. With a 15-year mine life and high-grade open-pit operations, this asset significantly strengthens the company's long-term production outlook. The successful ramp-up despite global challenges demonstrates robust project management and operational capabilities.
The commencement of commercial production at Greenstone represents a pivotal shift in Equinox Gold's financial profile. With positive operating cash flow already being generated during ramp-up, this milestone should significantly boost the company's revenue and cash flow generation capacity. The
The successful navigation of pandemic-related challenges, supply chain disruptions and inflationary pressures while maintaining project execution speaks to effective cost management. The projected 390,000 ounces annual production target positions Greenstone to become a major contributor to Equinox's financial performance, potentially leading to improved market valuation and balance sheet strength.
Vancouver, British Columbia--(Newsfile Corp. - November 6, 2024) - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) ("Equinox Gold" or the "Company") is pleased to announce that based on the operating progress achieved through October, its Greenstone Mine in Ontario, Canada has reached commercial production.
Greg Smith, President & CEO of Equinox Gold, commented: "With the Greenstone Mine continuing to ramp up and generating positive operating cash flow, we are pleased to announce commercial production at our newest and largest gold mine. This milestone marks the culmination of three years of construction and commissioning, accomplished during the challenges of a global pandemic, supply chain disruptions, and inflationary pressures. I extend my thanks and congratulations to the Greenstone team for their dedication and perseverance in achieving this milestone."
During Q3, the Greenstone Mine processed an average of 14,300 tonnes per day ("tpd"), representing
At full production, the Greenstone Mine will be one of Canada's largest and highest-grade open-pit gold mines, producing on average 390,000 ounces of gold per year for the first five years and 330,000 ounces of gold annually for an initial 15-year mine life.
ABOUT EQUINOX GOLD
Equinox Gold is a growth-focused Canadian mining company with seven operating gold mines and a 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 & Forward-looking Statements
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information (collectively "Forward-looking Information"). Forward-looking Information in this news release relates to, among other things: the Company's expectations for the operation of Greenstone, including future financial or operating performance; and anticipated improvements in recovery rates, mining rates, and throughput to achieve design capacity. Forward-looking Information is generally identified by the use of the words "will", "target", "focus", "ramping up", "achieve", "increase", "plan", "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 Information. Although the Company believes the expectations reflected in such Forward-looking Information is reasonable, undue reliance should not be placed on Forward-looking Information since the Company can give no assurance that such expectations will prove to be correct. The Company has based Forward-looking Information on the Company's current expectations and projections about future events and these assumptions include: the Company’s expectations for the operation of Greenstone, including future financial or operating performance and anticipated improvements in recovery rates, mining rates and throughput to achieve design capacity; the Company's ability to achieve its production, cost and development expectations for Greenstone; no unplanned delays or interruptions in scheduled production; that ore grades and recoveries remain consistent with expectations; that tonnage of ore to be mined and processed remains consistent with expectations; the ability of Equinox Gold to work productively with its Indigenous partners at Greenstone; no labour-related disruptions; that all necessary permits, licenses and regulatory approvals are received in a timely manner; and the Company's ability to comply with environmental, health and safety laws and other regulatory requirements. 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 Information contained in this news release.
The Company cautions that Forward-looking Information involves 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 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; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, geotechnical failures, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding, fires, and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; labour 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 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 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 Information is 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 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 Information. If Equinox Gold updates any Forward-looking Information, no inference should be drawn that Equinox Gold will make additional updates with respect to that or any other Forward-looking Information. All Forward-looking Information contained in this news release is expressly qualified by this cautionary statement.
Non IFRS Measures. This news release refers to cash costs which measure has no standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Their measurement and presentation is consistently prepared and is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Cash Costs and Cash Costs per oz sold is a common financial performance measure in the gold mining industry; however, it has no standard meaning under IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229115
FAQ
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