Equinox Gold Announces Full-Scale Construction of the Aurizona Gold Mine
TSX-V: EQX
OTC: LWLCF
Suite 730 – 800 West Pender St., Vancouver, BC Canada V6C 2V6
[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Announces Full-Scale Construction of the Aurizona Gold Mine
January 8, 2018 – Vancouver, BC – Equinox Gold Corp . (TSX-V: EQX, OTC: LWLCF ) (“Equinox Gold” or the
“Company”) is pleased to announce that the Company’s Board of Directors has approved the start of full-
scale construction at the Aurizona Gold Mine (“Aurizona”) in Brazil. All dollar amounts shown are in United
States dollars.
Early works construc tion has been underway at Aurizona since the third quarter of 2017 . The project is
advancing well and remains on track to pour gold by late 2018. Activities to date have focused on detailed
engineering work, raising the existing tailings facility , refurbishment of existing plant infrastructure, civil
earthworks and pouring foundations to prepare for installation of new plant infrastructure, installation of
new administrative buildings and ordering long-lead items.
Equinox Gold’s new website at www.equinoxgold.com includes a photo gallery that documents construction
progress with periodic photo and video updates.
Construction Milestones Achieved to Date
• Mills ordered with delivery expected in the second quarter
• Detailed engineering underway in Belo Horizonte, Brazil
• Civil works (concrete) contract awarded
• Owner’s team in place
• Significant refurbishment completed on existing plant infrastructure
• Electrical substation upgrades commenced with parts ordered and a contractor selected
• Completion of the first tailings storage facility raise nearly complete
• Mill foundations underway
• Completion of the thickener underway
“With expansion permits, full construction funding and the new Equinox Gold Board of Directors in place, we
have received approval for full-scale construction at the Aurizona Gold Mine in Brazil,” said Christian Milau,
CEO of Equinox Gold. “This will be a milestone year for Equinox Gold as we advance Aurizona and transition
the company from a developer to a meaningful producer, with more than 135,000 ounces of annual gold
production expected from Aurizona.”
“The Aurizona project has been significantly advanced and de -risked over th e past few months with early
works construction and critical path activities,” said David Laing, COO of Equinox Gold. “The tailings dam raise
is nearly complete, the mills are ordered and significant civil earthworks has been completed in preparation
for installation of the mills and other new plant infrastructure. We look forward to reporting on construction
milestones as we advance toward our target of pouring gold in late 2018.”
Equinox Gold’s Board of Directors has approved a total project budget of $146 million for full-scale
construction, which includes all working capital and a 12% contingency. Approximately $25 million of this
budget was spent in 2017 during early works activities and the project remains on schedule and on budget.
Aurizona construction is fully funded with Equinox Gold’s existing treasury and an $85 million secured project
credit facility, from which the Company has drawn $15 million to date.
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Tailings Facility Raise
The existing tailings facility is being raised to support expanded throughput to 8,000 tonnes per day (“tpd”).
The raise is being executed by the Engeterra -Nazaré consortium under the supervision of the structure
designers BVP Engenharia. The tailings facility capacity will be expanded in three lifts, with the first expansion
scheduled for completion in January 2018 and two additional lifts to be completed approximately every two
years thereafter.
Process Plant Equipment Procurement and Refurbishment
Aurizona is a brownfields project endowed with considerable existing infrastructure including access roads,
a dedicated and reliable powerline, significant process plant equipment, offices, warehouses, laboratories,
communications and a camp.
The plant design is based on a process plant capable of treating 8,000 tpd of ore through a combination of
conventional gravity concentration and cyanide leach/CIP (carbon in pulp) processes. The design includes a
new comminution circuit which comprises a primary jaw crusher, SAG (semi- autogenous grinding) mill, ball
mill and pebble crusher. The jaw crusher and the mills have been ordered and delivery of the mills to site is
expected during the second quarter.
Repairing, refurbishing and improving the existing process plant equipment resulted in cost efficiencies and
a reduced construction timeline. There is also a large inventory of equipment on site that was either never
commissioned or installed. Completing the installation and upgrades to existing equipment includes cyclones,
the intensive leach reactor, three leach tanks, the high-rate thickener, and a new 12.5 MW (megawatt) main
transformer as well as a new pressurized elution circuit and commissioning the carbon regeneration kiln .
Refurbishing includes the CIP circuits, and a dditional improvements to the existing process plant inc ludes
upgrades to the cyanide destruction and tailings deposition system, gravity recovery circuit, electrical supply
and distribution system, and instrumentation and controls.
Detailed Engineering Activities
The project EPCM (engineering, procurement and construction management) work was awarded to Ausenco
Engineering Canada Inc. (“Ausenco”) a diversified engineering, construction and project management
company with extensive experience in the “fit- for-purpose” design and cost -effective construction of gold
plants and mining projects globally, including a number of recent projects in Brazil. Basic engineering has
been substantially completed in Ausenco’s Vancouver office and detailed engineering work is being
completed in Ausenco’s Belo Horizonte office.
Powerline
Aurizona has a dedicated and reliable powerline that connects to the Brazil electrical grid via the Maranhão
power distribution utility, which provides access to low-cost power. Upgrades to two substations are required
to support the increased power draw for the 8,000 tpd expansion. The substations are located at Manaus do
Maranhão (46 km from Aurizona) and at the Aurizona plant site.
Equinox Gold Contacts
Christian Milau, CEO
Rhylin Bailie, Vice President Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
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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. Early works
construction is underway at the Company ’s Aurizona project in Brazil with the objectiv e of pouring gold by
year-end 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
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” 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, the growth potential of the
Company, anticipated production from the Aurizona Gold Mine and Castle Mountain Gold Mine , the Castle
Mountain prefeasibility study, and the potential for other assets 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 as sumptions made with regard to
the Company’s ability to complete construction at Aurizona and the timing to achieve production; the
Company’s ability to complete construction within the approved budget; t he 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 . Furthermore, the forward- looking statements contained in this
news re lease 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 other wise, except as may be required by applicable
securities laws.