Equinox Gold Corp. (TSX-V:EQX) (OTC:EQXGF) (“Equinox Gold” or the
“Company”) is pleased to announce that mining activities are
underway in the Piaba Deposit at its Aurizona Gold Mine in Brazil
(“Aurizona”). Construction remains on track to pour gold by late
2018. All dollar amounts are in United States dollars unless
otherwise noted.
Mining Activities
Mining is underway to prepare for gold
production by the end of 2018. The mining contractor,
U&M Mineração e Construção S/A (“U&M”), mobilized to
site in March and mining commenced in mid-April. The majority of
the mining fleet is on site and U&M has filled most of the
planned 200 operator and support positions. U&M is operating
two shifts a day and at the start of June will implement a third
shift to mine 24 hours a day, seven days a week. Mining activities
are currently focused on removing waste from two locations in the
Piaba pit and developing access roads in preparation for ore mining
in Q3-2018.
“Commencing mining activities is a significant
construction milestone for the Aurizona Gold Mine and also for
Equinox Gold,” said Christian Milau, CEO of Equinox Gold. “The
project remains on track to pour gold by the end of 2018. Aurizona
will be Equinox Gold’s first operating mine and is expected to
produce on average 136,000 ounces of gold per year over the life of
the mine.
“While the Aurizona operations team is focused
on achieving production, Equinox Gold’s exploration team is focused
on mine life extension and district-scale opportunities,” continued
Mr. Milau. “A resource update is underway incorporating near-mine
mineralization identified in the successful 2017 exploration
program. There is also approximately four kilometres of strike
extension to be tested with upcoming exploration programs and a
study is underway examining opportunities to develop the
underground potential of this exceptional gold deposit.”
Construction Progress
- Overall project was 44% complete and EPCM (engineering,
procurement and construction management) activities were 61%
complete at the end of March
- Plant construction was 27% complete at the end of March
- Refurbishment of the CIP circuit and detox tanks is
complete
- Concrete foundations and pedestals for the new SAG and ball
mills are complete
- Manufacturing of the SAG and ball mills is complete and the
components are in-transit to Brazil with delivery to site expected
in June
Construction is proceeding on schedule and on
budget, with $43 million of the $146 million construction
budget spent and $76 million committed at the end of March.
Construction is fully funded from cash and marketable securities on
hand and an $85 million secured project credit facility, from which
the Company has drawn $15 million to date. Construction progress is
documented in a photo gallery on Equinox Gold’s website at
www.equinoxgold.com and a number of photos can be viewed
through a link at the end of this news release.
Process Plant
All process plant earthworks have been
completed. Fabrication of the SAG and ball mills is complete and
the components have been loaded onto a ship for transport to Brazil
with delivery to site expected in June. The concrete foundations
and pedestals for the SAG and ball mills are complete and ready for
mill installation. Structural steel erection in the grinding area
has commenced. Additional concrete work is being completed in the
leaching and thickening areas while formwork and rebar work is
underway in the crusher and surge bin areas.
Refurbishment of the existing CIP circuit and
detox tanks is complete while the refurbishment of other equipment
such as pumps, agitators, screens and motors is 65% complete. The
new jaw crusher has been delivered to site as well as other new
equipment. A total of 600 tonnes from the anticipated 1,200
tonnes of structural steel has been delivered. The structural,
mechanical and piping contract was awarded in March and steel
erection activities have been underway since early April. The
electrical and instrumentation contract is under technical and
commercial evaluation and is expected to be awarded by the end of
April.
Engineering is well advanced and expected to be
essentially complete by the end of April, with some follow-on field
engineering activities moving to the site. Overall
procurement of equipment and materials is 58% complete and all
major purchase orders have been awarded. Purchasing activities are
expected to be essentially complete by the end of May with
follow-on expediting activities continuing through August.
Most of the equipment is expected to be delivered to site from
April through August.
Infrastructure
Improvements to secondary access roads to site
have been completed. The incinerator is nearly complete and the
site water treatment plant is 50% complete.
All assay lab equipment has been ordered and the
modular lab facilities are being assembled in containers by
SGS-Geosol near Belo Horizonte, Brazil before being shipped to
site. The first modules are expected to be delivered to site
in June.
The upgrades to two substations required to
support the increased power draw for the 8,000 tonnes per day
throughput were 65% complete at the end of March, with completion
expected by August. Engineering is complete and the longest lead
items, capacitor banks and voltage regulators, have been delivered
to site. Civil work at one of the substations is complete with work
at the second substation commencing soon.
Award for Excellence in the Mining and
Metallurgy Industry
In March 2018 the Company’s wholly-owned
subsidiary, Mineração Aurizona (“MASA”), was awarded the Award for
Excellence in the Mining and Metallurgy Industry by the Brazilian
magazine Minérios & Minerals in recognition of MASA’s “Young
Environmental Agents Project”. This is the magazine’s 20th annual
Award for Excellence in the Mining and Metallurgy Industry.
Previous recipients have included companies such as AngloGold
Ashanti, ArcelorMittal, Vale, Imerys and Alcoa.
The Young Environmental Agents Project was
created in 2015 to strengthen the relationship between MASA and
local communities through an environmental approach. The main
objective is to educate young people by hosting workshops focused
on how minerals are used in our daily lives and the social,
environmental and economic impacts and opportunities associated
with mining. In 2017 MASA participated in more than 150 hours of
workshops and hosted Aurizona mine tours, actively engaging with
more than 50 teachers and 40 students from three nearby
communities.
“We are honoured to receive this award and are
proud of the work the Aurizona team is doing in local communities,”
said David Laing, Chief Operating Officer of Equinox Gold. “The
Young Environmental Agents Project is just one of our ongoing
community and stakeholder interaction programs. The Aurizona team
works with community leaders and Brazilian organizations to
implement a wide range of programs focused on infrastructure
improvement, education, skills training, agricultural development
and social programs.”
Click here to view the construction photos
On Behalf of the Board of Equinox Gold
Corp.
“Christian Milau”
CEO & Director
Equinox Gold Contacts
Christian Milau, CEO & DirectorRhylin
Bailie, Vice President Investor RelationsTel: +1 604-558-0560Email:
ir@equinoxgold.com
About Equinox Gold
Equinox Gold is a Canadian mining company with a
multi-million-ounce gold resource base, near-term and growing gold
production from two past-producing mines in Brazil and California,
and a long-term growth platform with a diverse portfolio of gold
and copper assets in North and South America. Construction is
underway at the Company’s Aurizona project in Brazil with the
objective of pouring gold by late 2018, and a prefeasibility study
is underway at the Company’s Castle Mountain project in California
with the objective of restarting production. Further information
about Equinox Gold’s current portfolio of assets and long-term
growth strategy is available at www.equinoxgold.com or by
email at ir@equinoxgold.com.
Cautionary Notes and Forward-Looking
Statements
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as such term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This document contains certain forward-looking
information and forward-looking statements within the meaning of
applicable securities legislation (collectively “forward-looking
statements”). The use of the words “will”, “expected”, “objective”,
“anticipated”, “underway”, “targeted”, “expectation”, “scheduled”,
“planned”, “potential”, “commencing” and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements contained in this news release include, but are not
limited to, statements regarding construction activities underway
at Aurizona, anticipated production from the Aurizona Gold Mine and
Castle Mountain Gold Mine, the Castle Mountain prefeasibility
study, the potential for other assets of the Company, and the
growth potential of the Company. Although the Company believes that
the expectations reflected in such forward-looking statements
and/or 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. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the risks, uncertainties and other factors
identified in the Company’s periodic filings with Canadian
securities regulators, and assumptions made with regard to the
Company’s ability to complete construction at Aurizona on time and
on budget or at all; the timing to achieve production; the
Company’s ability to extend the Aurizona mine life, develop the
underground potential of the deposit or identify new mineralization
in the Aurizona district; the Company’s ability to complete the
Castle Mountain prefeasibility study and the results of the study;
and the Company’s ability to achieve its expected growth and
production potential. Readers are cautioned that the $76 million
committed for Aurizona construction at the end of March is a
non-GAAP (generally accepted accounting principles) financial
measure with no standard meaning under International Financial
Reporting Standards. This number is intended to provide additional
information about construction progress at Aurizona but does not
represent the amount spent or invoiced to date and will not be
reconciled in the Company’s quarterly financial statements.
Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and the
Company does not undertake any obligations to publicly update
and/or revise any of the included forward-looking statements,
whether as a result of additional information, future events and/or
otherwise, except as may be required by applicable securities
laws.
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