Monday, October 6, 2025

Latest

Equinox Gold Reports After-Tax NPV of $640 Million For Proposed Castle Mountain Phase 2 Expansion

Equinox Gold (TSX: EQX) this morning announced the results of a feasibility study for its phase 2 expansion of its Castle Mountain Gold Mine in California. The expansion is expected to produce 3.2 million gold ounces at an all-in sustaining cost of $858 per ounce, resulting in an after-tax NPV of $640 million utilizing a 5% discount rate.

The results of the feasibility study are viewed as positive by the company, with the study being based on US$1,500 per ounce gold. The expansion study follows the launch of commercial production in November, with the mine presently producing between 30,000 to 40,000 ounces of gold per year via a heap leach facility processing 12,7000 tonnes of ore per day.

The proposed expansion is set to see the facility increase annual production to 218,000 ounces a year for a period of 14 years, with the expansion to expand heap leaching operations while also bringing milling operations to the site for higher grade ore. The life of the mine is currently expected to produce 3.4 million ounces of gold.

Castle Mountain Overall Site Plan (CNW Group/Equinox Gold Corp.)

The feasibility study has pegged the NPV of the project at $640 million, a figure which grows to $1.1 billion at $1,800 ounce gold, resulting in an IRR of 18%. Average annual after-tax net cash flow is pegged at $114.1 million, or $1.3 billion on a cumulative basis. The expansion is expected to see $389 million in initial capital costs, which doesn’t include $121 million for leasing of the mining fleet, as well as $147 million in sustaining capital costs.

The property currently has 4.2 million ounces of proven and probable mineral reserves at 0.51 g/t gold, and 1.5 million ounces of measured and indicated resources at 0.62 g/t gold.

Equinox Gold last traded at $10.45 on the TSX.


Information for this briefing was found via Sedar and Equinox Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Gold Lion Concludes Phase One Trenching Program At Robber Gulch

Trenching has been completed at the Gold Lion Resources (CSE: GL) Robber Gulch property near...

Thursday, November 12, 2020, 09:28:12 AM

Gold Rush: Volume Bought By Central Banks At A 5-Decade High

According to data provided by the World Gold Council (WCG), demand for the precious metal...

Sunday, January 1, 2023, 09:00:00 AM

Freeman Reports Multiple Instances Of Visible Gold In Drill Cores

Freeman Gold Corp (CSE: FMAN) has hit visible gold in Idaho. The company provided a...

Thursday, October 29, 2020, 08:46:11 AM

Equinox Gold Sees BMO Lower Price Target To $11.50

At the end of January, Equinox Gold Corp. (TSX: EQX) announced its 2022 production guidance....

Thursday, February 10, 2022, 06:04:00 PM

Novo Resources Looks To Raise $22 Million Via Special Warrants

Novo Resources (TSX: NVO) is the latest firm to announce a financing this morning. The...

Wednesday, April 14, 2021, 08:49:40 AM