Equinox Gold Corp. (TSX: EQX) shared today the results of its pre-feasibility study for an expansion at its Aurizona gold mine located in Brazil. The results highlighted US$314 million after-tax NPV5% at a base case price of US$1,500 per gold ounce.
According to the study, expanding the property through mining underground and satellite open-pit deposits would extend mine life to 11 years, yielding an expected life-of-mine gold production of 1.5 million gold ounces at an average recovery rate of 90.5%. Average annual production is expected to be 137,000 gold ounces with peak production of over 160,000 gold ounces by 2026 to 2029.
“Incorporating the Aurizona underground and satellite deposits into our mine plan will nearly double the Aurizona mine life, increase annual production and generate almost $1 billion of net cash flow at current gold prices,” said Equinox Gold CEO Christian Milau.
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Still based on US$1,500 per gold ounce base case price, after-tax cumulative net cashflow for the life of mine is expected to be US$464 million. At US$1,800 per gold ounce, this jumps to US$829 million.
Furthermore, the study also stated an all-in sustaining cost of US$944 per gold ounce on average from 2024 onward and US$1,058 per gold ounce for the life of mine. Total operating costs for the mine life is expected to be US$1.07 billion.
On capital costs, the property’s initial spending came to US$154 million and sustaining capital spend is expected to be US$383 million for the life of mine.
The mining company achieved commercial production at Aurizona in July 2019. Around 260,000 gold ounces and US$190 million in free cash flow have been generated since.
Earlier this month, the firm reported an updated mineral resource estimate for the Mesquite gold mine in California, highlighting measured & indicated resources of 1.38 million gold ounces.
Equinox Gold last traded at $9.11 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.
