Equinox Gold Corp. (TSX-V:EQX) (OTC:EQXGF)
(“Equinox Gold” or the “Company”) is pleased to announce the
results of the prefeasibility study (“PFS”) for its 100% owned
Castle Mountain Gold Mine (“Castle Mountain” or the “Project”)
located in California, USA. The PFS contemplates a low-cost heap
leach gold mine with 3.6 million ounces (“oz”) of gold reserves
that will produce 2.8 million oz of gold and generate
$865 million in after-tax cash flow over a 16-year mine life.
Castle Mountain will be developed in two phases
with annual average gold production of 45,000 oz over the first
three years (“Phase 1”) and annual average gold production of
203,000 oz from years 4 to 16 (“Phase 2”). With Measured &
Indicated Mineral Resources estimated at 4.3 million oz of gold
(inclusive of reserves), Inferred Mineral Resources of 2.2 million
oz and additional near-mine mineralization identified with the 2017
exploration program, there remains potential to extend the mine
life and increase annual production.
All amounts are in US dollars unless otherwise
indicated. Base case economics were calculated using a $1,250/oz
gold price. The Company will host a webcast and conference call at
8:00am PT (11:00am ET) on July 17, 2018 to present the
PFS results. Further details are provided at the end of this news
release.
PFS HIGHLIGHTS
- 3.6 million oz of Proven & Probable Mineral Reserves
grading 0.56 grams per tonne (“g/t”) gold
- $865 million after-tax life of mine (“LOM”) cumulative cash
flow
- $763/oz average LOM all-in sustaining costs (“AISC”)
- 2.8 million oz LOM gold production
- 45,000 oz average annual gold production during Phase 1 (years
1-3)
- 203,000 oz average annual gold production during Phase 2 (years
4-16)
- $406 million after-tax net present value discounted at 5%
(“NPV5%”) ($534 million at $1,350/oz gold)
- 20% internal rate of return (“IRR”) (25% at $1,350/oz
gold)
- Phase 1 capital costs of $52 million and Phase 2 capital costs
of $295 million with LOM sustaining capital costs of $142
million
- Phase 1 ore stacking and commissioning targeted for end of
2019
- Initial 16-year mine life with expansion potential from
existing near-mine mineralization
Christian Milau, CEO of Equinox Gold, stated:
“The prefeasibility study contemplates a robust, long-life,
high-margin gold mine in an excellent mining jurisdiction that will
generate significant gold production and cash flow for Equinox Gold
shareholders. Castle Mountain increases the Company’s gold reserves
by more than 350% to 4.5 million ounces while significantly
increasing future annual gold production. Combined production from
the Aurizona and Castle Mountain mines will total almost 200,000
ounces of gold by 2020 and increase to 350,000 ounces, with all-in
costs in the lowest quartile of the industry and significant
expansion upside from both mines.”
Ross Beaty, Chairman of Equinox Gold, stated:
“Castle Mountain is Equinox Gold’s second cornerstone mine that, by
itself, will generate more than one billion dollars of pre-tax cash
flow at current gold prices. Successful execution of mine
development at both Aurizona and Castle Mountain will establish
Equinox Gold as a mid-tier gold producer. We have the operating
team in place to rapidly advance these mines while our exploration
team demonstrates the great geologic potential at both projects to
further enhance the value of these assets for our
shareholders.”
OVERVIEW
The Castle Mountain Gold Mine, located in San
Bernardino County, California, produced more than one million oz of
gold as an open-pit heap-leach mine from 1992 to 2004, when
production ceased due to low gold prices and the mine was
substantially reclaimed. Under the PFS mine plan, Phase 1 of the
Project will produce for three years with average annual production
of 45,000 oz of gold. Phase 2 production is expected to average
203,000 oz of gold annually for 13 years, for total LOM production
of 2.8 million oz. LOM AISC are estimated at $763/oz, which is in
the lowest quartile of the industry. The Project demonstrates
strong returns with an after-tax NPV5% of $406 million and an
after-tax IRR of 20% using the base case gold price of $1,250/oz
($534 million and 25% at $1,350/oz gold price). The Project is
expected to generate average annual after-tax net operating cash
flow of $83 million with cumulative LOM after-tax net cash
flow of $865 million. At $1,350/oz gold, the Project would
average more than $96 million in after-tax net operating cash flow
annually and generate more than $1 billion in cumulative after-tax
net cash flow over the 16-year mine life.
PFS Highlights 1
|
Phase 1 (yrs 1-3) |
Phase 2 (yrs 4-16) |
Total Project |
Gold Price |
|
|
$1,250 oz |
Ore |
|
|
197.6 M tonnes |
Grade |
0.35 g/t (ROM) |
0.43 g/t (ROM)3.23 g/t (mill) |
0.56 g/t |
P&P Reserve |
|
|
3,563,093 oz |
Average annual production |
44,930 oz |
202,979 oz |
173,345 oz |
Recoverable LOM gold |
|
|
2,798,173 oz |
Throughput |
12,700 tpd |
41,000 tpd |
|
Strip ratio |
|
|
3.6 |
Recovery |
72% (ROM) |
72% (ROM) 94% (mill) |
79% |
Mine life |
3 |
13 |
16 |
Initial capex 2 |
$52 M |
$295 M |
$347 M |
Sustaining capex 3 |
|
|
$142 M |
Cash cost (including royalties) |
$889/oz |
$703/oz |
$712/oz |
AISC |
$980/oz |
$752/oz |
$763/oz |
Pre-tax NPV 0% |
|
|
$1,034 M |
Pre-tax NPV 5% |
|
|
$491 M |
Pre-tax IRR |
|
|
21.7% |
After-tax NPV 0% |
|
|
$865 M |
After-tax NPV 5% |
|
|
$406 M |
After-tax IRR |
|
|
20.1% |
After-tax average annual operating cash flow
4 |
$16 M |
$99 M |
$83 M |
1. PFS estimates are considered accurate +/-
20%. 2. Includes working capital and contingency. 3.
Includes $20.2 million of reclamation/closure costs and
contingency. 4.
Undiscounted. Castle
Mountain has the key permits and the water supply required to
commence Phase 1 production, with a Conditional Use Permit (“CUP”),
Reclamation Plan and a valid Record of Decision (“ROD”) to mine up
to 46,600 tonnes per day (“tpd”) of ore plus waste. Phase 1 will
consist of a run-of-mine (“ROM”) heap leach operation processing
primarily 12,700 tpd of stockpiled ore from previous operations.
Phase 2 will increase throughput to 41,000 tpd of ore, of
which 2,340 tpd of higher-grade ore will be processed through
a milling circuit. The phased ramp-up approach allows the Company
to use existing permits to expedite production while completing the
feasibility study and permitting for the Phase 2 expansion.
While Phase 2 will operate within the existing permitted mine
boundary, the increased mining and water extraction rates will
require updated permitting for the Project.
ECONOMIC SENSITIVITIES
Using the base case gold price of $1,250/oz and
incorporating only Proven and Probable Mineral Reserves of 3.6
million oz of gold, the Project has an after-tax NPV5% of $406
million and an after-tax IRR of 20%. The Project’s economics are
most sensitive to fluctuations in the gold price, as summarized in
the tables below.
Castle Mountain Mine Sensitivity to Gold
Price
Gold price ($/oz) |
$1,150 |
$1,250 |
$1,350 |
NPV5% (after tax) |
$276.4 M |
$406.5 M |
$534.2 M |
IRR (after tax) |
15.2% |
20.1% |
25.1% |
Castle Mountain Mine Sensitivity to
Capital Costs
Capital costs 1 |
-10% |
$471.0 M |
+10% |
NPV5% (after tax) |
$435.6 M |
$406.5 M |
$377.5 M |
IRR (after tax) |
22.5% |
20.1% |
18.1% |
1. Includes sustaining capital
and recapture of $18 million of working capital at end of mine
life.
Castle Mountain Mine Sensitivity to
Operating Costs
Operating costs |
-10% |
$1,836.0 M |
+10% |
NPV5% (after tax) |
$495.2 M |
$406.5 M |
$315.6 M |
IRR (after tax) |
24.0% |
20.1% |
16.4% |
CAPITAL & OPERATING
COSTS
Initial capital for Phase 1 construction is
estimated at $52 million, with many aspects of the Phase 2
expansion incorporated into the design to reduce total LOM capital
costs. Initial capital for Phase 2 construction is estimated at
$295 million, including $47 million in capitalized pre-stripping.
Cost estimates are summarized in the tables below.
Castle Mountain Capital Cost
Estimates
Cost Area |
Phase 1
Capital(M$) |
Phase 2
Capital(M$) |
Sustaining
Capital(M$) |
Mine equipment |
|
1.4 |
|
111.5 |
|
51.7 |
Pre-stripping |
|
- |
|
46.8 |
|
- |
Leach pad |
|
14.7 |
|
12.4 |
|
49.8 |
ADR plant |
|
11.0 |
|
6.6 |
|
- |
Mill CIL |
|
- |
|
42.3 |
|
- |
Facilities, support and infrastructure |
|
7.8 |
|
24.1 |
|
- |
Plant mobile equipment |
|
1.1 |
|
4.6 |
|
7.0 |
EPCM |
|
0.6 |
|
11.2 |
|
2.0 |
Owner’s costs |
|
5.3 |
|
2.5 |
|
- |
Construction indirects |
|
1.6 |
|
2.6 |
|
2.0 |
Working capital |
|
3.8 |
|
13.9 |
|
- |
Contingency |
|
4.3 |
|
16.5 |
|
9.4 |
Closure |
|
- |
|
- |
|
20.2 |
Total |
|
$51.7 |
|
$295.0 |
|
$142.0 |
Castle Mountain Operating Cost
Estimates
|
Phase 1 |
Phase 2 |
Total Project |
|
$/oz |
$/t |
$/oz |
$/t |
$/oz |
$/t |
Mining ($/ mined) |
|
1.84 |
|
1.37 |
|
1.39 |
Mining ($/ processed) |
|
514 |
4.01 |
|
447 |
6.61 |
|
450 |
6.38 |
Processing ($/ processed) |
|
220 |
1.72 |
|
146 |
2.15 |
|
149 |
2.11 |
G&A ($/ processed) |
|
120 |
0.94 |
|
53 |
0.78 |
|
56 |
0.80 |
Total onsite costs |
|
854 |
|
|
646 |
|
|
656 |
|
Refining, transport |
|
2 |
|
|
2 |
|
|
2 |
|
Total cash costs |
|
855 |
|
|
648 |
|
|
658 |
|
Royalties |
|
34 |
|
|
55 |
|
|
54 |
|
Total cash costs |
|
889 |
|
|
703 |
|
|
712 |
|
Sustaining capex |
|
91 |
|
|
42 |
|
|
44 |
|
Mine closure |
|
- |
|
|
8 |
|
|
7 |
|
AISC |
|
$980 |
|
|
$752 |
|
|
$763 |
|
Notes: Numbers may not sum due to rounding.
MINERAL RESERVES &
RESOURCES
Proven and Probable Mineral Reserves are
estimated at 3.6 million oz of gold contained in 197.6 million
tonnes of ore at a diluted gold grade of 0.56 g/t. These Mineral
Reserves support an initial 16-year mine life with potential to
expand the reserve base and extend the mine life with exploration
success.
The combined Measured & Indicated Mineral
Resources are estimated at 4.3 million oz of gold (inclusive of
reserves) with 3.0 million oz in the Measured category contained in
160.6 million tonnes at a gold grade of 0.58 g/t and 1.3 million oz
in the Indicated category contained in 81.4 million tonnes at a
gold grade of 0.51 g/t, and additional Inferred Mineral
Resources of 2.2 million oz contained in 171.4 million tonnes at a
gold grade of 0.40 g/t.
Castle Mountain Mineral Reserve
EstimateEffective Date June 29, 2018
|
Proven |
Probable |
Proven & Probable |
Resource Area |
Tonnes(M) |
Grade(g/t) |
Contained Gold (Moz) |
Tonnes(M) |
Grade(g/t) |
Contained Gold (Moz) |
Tonnes(M) |
Grade(g/t) |
Contained Gold (Moz) |
JSLA - Rock |
56.7 |
0.52 |
0.95 |
1.7 |
0.92 |
0.05 |
58.5 |
0.54 |
1.01 |
JSLA - Pit fill |
|
|
|
16.3 |
0.35 |
0.18 |
16.3 |
0.35 |
0.18 |
Jumbo |
8.9 |
0.77 |
0.22 |
2.6 |
0.39 |
0.03 |
11.5 |
0.68 |
0.25 |
Oro Belle |
38.7 |
0.57 |
0.71 |
6.2 |
0.48 |
0.10 |
45.0 |
0.56 |
0.80 |
East Ridge |
5.1 |
0.80 |
0.13 |
6.4 |
0.42 |
0.09 |
11.6 |
0.59 |
0.22 |
South Domes |
27.1 |
0.63 |
0.55 |
27.7 |
0.62 |
0.56 |
54.8 |
0.63 |
1.10 |
Total |
136.6 |
0.58 |
2.56 |
61.0 |
0.51 |
1.00 |
197.6 |
0.56 |
3.56 |
Notes: The Mineral Reserve estimate with an
effective date of June 29, 2018 is based on the Mineral Resource
estimate with an effective date of March 29, 2018 that was prepared
by Don Tschabrun, SME RM of Mine Technical Services. The Mineral
Reserve was estimated by Global Resource Engineering, LLC with
supervision by Terre Lane, MMSA, SME RM. Mineral Reserves are
estimated within the final designed pit which is based on the
$850/oz pit shell with a gold price of $1,250/oz. The minimum
cut-off grade was 0.14 g/t gold and 0.17 g/t gold for Phases 1 and
2, respectively. Average life of mine costs are $1.39/tonne mining,
$2.11/tonne processing, and $0.80/tonne processed G&A. The
average process recovery was 72.4% for ROM and 94% for Mill/CIL.
Tonnes and gold ounces are both reported in millions. Small
differences in total tonnage and grade may occur due to rounding.
The Mineral Resource estimate is inclusive of Mineral Reserves.
Drilling at Castle Mountain in 2017 identified a
new zone of significant near-surface mineralization at the East
Ridge target, peripheral to the current resource pit, with grades
significantly higher than the current resource grade. Exploration
also identified some higher-grade intercepts at depth in the JSLA
Pit that could pull the current pit bottom lower and expand the
defined resource boundary at depth. Equinox Gold intends to
continue drilling at Castle Mountain with the objective of
extending the mine life and potentially bringing higher-grade,
near-surface mineralization into the mine plan to increase annual
production and reduce the LOM strip ratio.
CASTLE MOUNTAIN MINE PLAN
During previous operations, material below 0.5
g/t gold mined from the Oro Belle and Jumbo pits was placed into
the JSLA Pit (Figure 1). Phase 1 ore will be sourced primarily from
this stockpile of lower-grade material, which will be placed on the
heap leach pad in 15-metre lifts at a rate of 12,700 tpd and
leached. Average annual production during Phase 1 is estimated at
45,000 oz of gold for total Phase 1 production of 135,000 oz
of gold.
Phase 2, treating ore mined from the large Main
Trend and South Domes pits (Figure 1), comprises two circuits
whereby an average of 38,600 tpd of ore grading between
0.17 g/t gold and 1.3 g/t gold will be placed directly on the
ROM heap leach pad and ore above the 1.3 g/t cut-off will be milled
and processed via a CIL (carbon-in-leach) circuit at an average
rate of 2,400 tpd. Average annual production during Phase 2 is
estimated at 203,000 oz of gold for total anticipated production
from Phase 2 of 2.7 million oz of gold. The operating plan calls
for 5% of the ore tonnes, containing 29% of LOM produced gold, to
be processed by CIL.
Metallurgical test work shows average recoveries
of 72% for ROM operations and 94% for milling operations, with
average LOM recoveries of 79%.
Mine design and preparation of the mining
reserves was completed using conventional open-pit design practice.
The designs are based on the $850/oz Lerchs-Grosmann optimal pit
solution. From that initial pit design, ramp systems were designed
and the pits were divided into 14 different laybacks/phases. Mining
of the pits was subsequently scheduled to provide the required ore
per year in the plan while balancing the waste mining to ensure
proper development of the Project.
During the first two years of operations mining
will be performed exclusively by a mining contractor. In years 3
and 4 the mining contractor will continue mining and will also
assist with pre-stripping operations, which will be primarily
undertaken by the Company’s own mining fleet. Contract mining
operations will cease by year 5. Grade control will be performed by
Castle Mountain personnel throughout the mine life.
It is anticipated that the mining contractor
will use a fleet of 85-tonne to 100-tonne capacity rear dump trucks
and equivalent class front-end-loaders. The initial owner fleet is
expected to comprise 17 180-tonne capacity rear dump trucks and
four 425-tonne class excavators. Mining will take place on
6.1-metre (20 foot) benches, with double benching anticipated in
waste areas.
Mining costs are estimated at $1.39 per tonne
mined over the current LOM.
Click here to view Figure 1
PROCESSING
Phase 1 processing operations will treat the
solutions from the ROM heap leach facility operating in a new ADR
(adsorption, desorption and refining) plant capable of treating 400
cubic metres per hour (“m3/hr”) of pregnant solution to produce
doré bars.
Phase 2 will require an expansion of the
solution handling and ADR plant capacity to receive the additional
flow from the increased ROM heap leaching operations and loaded
carbon from the CIL plant. The Phase 2 CIL circuit will comprise a
three-stage crushing circuit, ball mill, a gravity circuit, a CIL
circuit, an Acacia high intensity leach circuit, a cyanide
destruction circuit, and a mill fines filtration circuit. The
comminution circuit is designed to achieve 80% passing 150 microns.
Loaded carbon from the CIL circuit will be treated in ROM
desorption and recovery circuits. The expanded plant will have
capacity to treat 1,900 m3/hr to produce doré bars.
Processing costs are estimated at $2.11 per
tonne treated over the current LOM.
HEAP LEACH PADS
The heap leach pads for both phases will be
double synthetic lined using 2.0 mm LLDPE liner with a leak
detection and recovery system between the synthetic liners. Spent
heap leach ore from prior operations will be used to form a 600 mm
drainage layer above the lining system. Ore will be stacked
in 15-metre lifts with no inter-lift liners. Heap irrigation,
at a nominal rate of 10 l/hr/m2, will be delivered via buried drip
lines to reduce evaporative losses of solution. Leaching reagent
consumptions are expected to be 0.1 kg/t NaCN and 1.2 kg/t
lime.
POWER
Power for Phase 1 operations will be provided
from on-site propane generators. Power for Phase 2 operations will
be obtained from a substation in the nearby town of Searchlight,
Nevada and delivered via a 69kV powerline that will be constructed
for Phase 2 operations.
WATER
Phase 1 operations require approximately 23
litres per second (“l/s”) of water that will be provided from
existing water wells at the Project. Phase 2 operations require
approximately 60 l/s of water that the Company expects to source
from existing water wells and from additional nearby water
sources.
WASTE DUMPS, BACKFILL & MILL FINES
DISPOSAL
Over the LOM, 58% of the mine waste will be
placed in waste dumps to the SE and NW of the active mining areas
and the 42% balance will be placed as backfill in the Main Trend
Pit.
Approximately 10.7 million tonnes of mill fines
will be treated to remove cyanide using a Caro’s acid system,
filtered, and then dry stacked at the north end of the heap leach
pad. The mill fines will be stacked on the same lining system as
the ROM heap leach material (double synthetic liner) and isolated
from the ROM heap leach material by an intermediate liner on the
interface between the ROM material and the fines.
LABOUR AND SUPPLIES
The Project is approximately a 1.3-hour drive
south from Las Vegas, Nevada and accessible year-round by paved
highways and well-maintained gravel roads. Construction and
operations personnel will be stationed in nearby communities
without the need for an on-site camp. There is abundant skilled
labour in the region and the Project will provide up to 600 jobs
during both construction and operations. The Project is located in
the southwest United States mining district and a number of major
mining suppliers have distribution hubs in the region.
PERMITTING
The Company has maintained its permits in good
standing since prior operations ceased and has the key permits
required to commence Phase 1 production including a San Bernardino
County CUP and a Federal ROD. Certain administrative State permits
are required for Phase 1 and are expected to be received in early
to mid-2019.
To permit Phase 2, with a higher processing
rate, increased water consumption and a larger area of impact, the
Company will modify its existing plan of operations and permits.
None of the flora and fauna surveys and environmental studies to
date have identified material changes to the mine area compared to
the area during previous operations. The Company intends to submit
its updated mine plan and reclamation plan by mid-2019 with the
target of commencing Phase 2 construction upon receipt of
permits.
NEXT STEPS & TIMELINES
The Company intends to advance Phase 1 basic
engineering with the target of stacking ore on the heap leach pad
and commissioning the ADR plant in late 2019. Concurrently, the
Company will undertake a feasibility study and permitting to
support development of Phase 2. Data collection for Phase 2
permitting is underway. The Company is also in the process of
permitting a water well development program.
TECHNICAL REPORT
PREPARATION
The PFS was prepared by several independent
Qualified Persons (“QPs”) and was consolidated by Kappes Cassiday
& Associates (“KCA”), supported by Mine Technical Services
(“MTS”), Global Resource Engineering (“GRE”), Call & Nicholas
(“CNI”), Geo-Logic Associates (“GLA”) and Lilburn Corporation. The
Mineral Resources were prepared by MTS based on the geological
model prepared by Equinox Gold geologists, which MTS reviewed and
agreed when preparing the block model. The Mineral Reserves, mine
plan and mining sections of the study were prepared by GRE, the
mine geotechnical section was prepared by CNI and environmental
matters were led by San Bernardino-based Lilburn Corporation. The
heap leach pad and hydrogeology aspects of the study were prepared
by GLA. The PFS is being summarized into a technical report that
will be filed on SEDAR within 45 days, in accordance with National
Instrument 43-101 (“NI 43-101”).
CONFERENCE CALL / WEBCAST
The Company will host a webcast and conference
call on July 17, 2018 to present the Castle Mountain PFS results.
The webcast and presentation slides will also be archived and
accessible on Equinox Gold’s website. Please register five to 10
minutes before the scheduled start time and ask to join the Equinox
Gold call.
Tuesday, July 17, 2018 at 8:00am Pacific Time
(11:00am Eastern Time) Toll-free in U.S. and Canada:
1-800-319-4610International callers: +1
604-638-5340Webcast: www.equinoxgold.com
QUALIFIED PERSONS
The technical content of this press release has
been reviewed and approved by the QPs who were involved with
preparation of the PFS: Tim Scott, SME RM of KCA; Todd Wakefield,
SME RM of MTS; Don Tschabrun, SME RM of MTS; Terre Lane, MMSA, SME
RM of GRE; Ross Barkley, PE of CNI; and Monte Christie, PE, GE of
GLA. David Laing, BSc, MIMMM, Equinox Gold’s COO, and Marc Leduc,
P.Eng., Equinox Gold’s EVP US Operations, are QPs under NI
43-101 and have also reviewed, approved and verified the technical
content of this news release.
For readers to fully understand the information
in this release they should read the technical report in its
entirety when it is available on SEDAR, including all
qualifications, assumptions, exclusions and risks that relate to
the PFS. The technical report is intended to be read as a
whole and sections should not be read or relied upon out of
context.
EQUINOX GOLD CONTACTS
Christian Milau, CEORhylin 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 diverse portfolio of gold and copper assets in North and
South America. Construction is underway at the Company’s Aurizona
Gold Mine in Brazil with the objective of pouring gold by year-end
2018, and the Company is advancing its Castle Mountain Gold Mine in
California with the objective of commissioning Phase 1 operations
by the end of 2019. The Company’s plan to transfer all of its
copper assets to a newly incorporated company named Solaris Copper
Inc. will be voted on at the Company’s annual and special meeting
of shareholders on July 26, 2018. 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.
Aurizona Gold Mine Reserve
Estimate
This document makes reference to the Mineral
Reserve Estimate for Equinox Gold’s Aurizona Gold Mine in Brazil.
The Aurizona Mineral Reserve estimate has an effective date of May
29, 2017 and was reported in the “Feasibility Study on the Aurizona
Gold Mine Project” prepared by Lycopodium Minerals Canada Ltd. with
an effective date of July 10, 2017, which is available for download
on the Company’s website and on SEDAR at www.sedar.com. The
combined Proven & Probable Mineral Reserves at Aurizona are
estimated at 971,000 oz of gold contained in 19.8 million tonnes at
a gold grade of 1.52 g/t, with 392,000 oz in the Proven category
contained in 8.4 million tonnes at a gold grade of 1.44 g/t and
579,000 oz in the Probable category contained in 11.4 million
tonnes at a gold grade of 1.58 g/t.
Forward-looking Statements
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 “contemplates”, “generate”,
“will”, “developed”, “potential”, “objective”, “plan”, “enhance”,
“completing”, “could”, “intends”, “potentially”, “anticipated”,
“expects”, “target”, and similar expressions are intended to
identify forward-looking statements. Forward-looking statements
contained in this press release include statements regarding
planned development activities, planned environmental and
engineering studies, completion and filing of the prefeasibility
study, completion of a feasibility study and the results of the
study, the anticipated restart of production at Castle Mountain,
and the anticipated capital costs, sustaining costs, net present
value, internal rate of return, availability of labour, gold
recoveries, production rates, tax rates and commodity prices that
would support redevelopment of Castle Mountain, and the anticipated
restart of production at Aurizona. Information concerning mineral
resource/reserve estimates and the economic analysis thereof
contained in the results of the Castle Mountain prefeasibility
study are also forward-looking statements in that they reflect a
prediction of the mineralization that would be encountered, and the
results of mining, if a mineral deposit were developed and mined.
Although Equinox Gold 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 Equinox Gold 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 Equinox Gold’s
periodic filings with Canadian securities regulators, and
assumptions made with regard to the Company’s ability to complete a
feasibility study for Castle Mountain and to achieve the results
outlined in the feasibility study; the anticipated Board of
Directors decision to approve construction of Castle Mountain; the
ability to raise the capital required to fund construction and
development of Castle Mountain; the ability to restart production
at Castle Mountain; timing of the anticipated restart of
production; and the results and impact of future exploration at
Castle Mountain. Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news
release and Equinox Gold 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.
Estimates of Measured, Indicated and
Inferred Mineral Resources
Information regarding reserve and resource
estimates has been prepared in accordance with Canadian standards
under applicable Canadian securities laws, and may not be
comparable to similar information for United States companies. The
terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated
Mineral Resource” and “Inferred Mineral Resource” used in this news
release are Canadian mining terms as defined in accordance with NI
43-101 under guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council on May
10, 2014. While the terms “Mineral Resource”, “Measured Mineral
Resource”, “Indicated Mineral Resource” and “Inferred Mineral
Resource” are recognized and required by Canadian regulations, they
are not defined terms under standards of the United States
Securities and Exchange Commission. Under United States standards,
mineralization may not be classified as a “reserve” unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve calculation is made. As such, certain information contained
in this news release concerning descriptions of mineralization and
resources under Canadian standards is not comparable to similar
information made public by United States companies subject to the
reporting and disclosure requirements of the United States
Securities and Exchange Commission. An “Inferred Mineral Resource”
has a great amount of uncertainty as to its existence and as to its
economic and legal feasibility. It cannot be assumed that all or
any part of an “Inferred Mineral Resource“ will ever be upgraded to
a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other
economic studies. Readers are cautioned not to assume that all or
any part of Measured or Indicated Resources will ever be converted
into Mineral Reserves. Readers are also cautioned not to assume
that all or any part of an “Inferred Mineral Resource” exists or is
economically or legally mineable. In addition, the definitions of
“Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM
standards differ in certain respects from the standards of the
United States Securities and Exchange Commission.
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