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

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

Lumina Gold’s Flagship: Cangrejos’ $2.2B NPV at $1,650 Gold, 26 Year Mine Life

In this interview, Marshall Koval, CEO of Lumina Gold Corp. (TSXV: LUM), provides insights into...

Monday, September 2, 2024, 05:04:00 PM

G Mining: 4.7M Tons of Gold per Year in New Brazilian Operation

In this interview, Louis-Pierre Gignac, CEO of G Mining Ventures Corp (TSX: GMIN) (OTCQX: GMINF),...

Monday, July 15, 2024, 03:10:00 PM

China Plans to Expand Shanghai Gold Exchange Internationally

China’s central bank and three other government departments have unveiled an ambitious plan to enhance...

Wednesday, April 23, 2025, 03:47:00 PM

New Found Gold Sees Eric Sprott Take Down Entire $15.0 Million Flow Through Financing

New Found Gold (TSXV: NFG) is looking to raise further funds. The company this morning...

Thursday, March 18, 2021, 08:31:42 AM

GMV Minerals Plans 3,050 Metre Drill Program To Expand Current Resource

GMV Minerals (TSXV: GMV) announced this morning that is has planned an expansion drill program...

Monday, March 1, 2021, 02:07:41 PM