Equinox Gold Announces Groundbreaking for Full-scale Construction of Greenstone Mine in Ontario, Canada All dollar figures in US dollars
TSX: EQX
NYSE-A: EQX
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[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Announces Groundbreaking for Full-scale Construction of Greenstone Mine in Ontario, Canada
All dollar figures in US dollars, unless otherwise indicated
October 27, 2021 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the
“Company”) is pleased to announce groundbreaking for full- scale construction at the Greenstone Gold Mine
(“Greenstone Mine” or the “Project” ) located in Ontario, Canada. Developed as a 60/40 partnership ,
respectively, by Equinox Gold and Orion Mine Finance Group (“Orion”, collectively, “the Partners”), Greenstone
Mine will be one of the largest gold mines in Canada, producing more than 400,000 ounces of gold annually for
the first five years and more than five million ounces of gold over its initial 14-year mine life.
Greenstone Mine Groundbreaking Ceremony
The Partners and the Greenstone Mine team are hosting a groundbreaking ceremony today from 2pm to
4pm EDT at the Greenstone Mine site. The event will be live streamed at www.GreenstoneGoldMines.com so
all interested parties can participate. The ceremony will in clude a blessing by Knowledge Keeper Andrea
O’Nabigon of Long Lake #58 First Nation followed by remarks from Chief Theresa Nelson of Animbiigoo
Zaagi’igan Anishinaabek, Chief Dorothy Towedo of Aroland First Nation, Chief Sherry Taylor of Ginoogaming First
Nation, Chief Judy Desmoulin of Long Lake #58 First Nation and William Gordon of the Métis Nation of Ontario,
as well as remarks from the Honourable Minister Rickford, Northern Development, Mines, Natural Resources
and Forestry and Minister of Indigenous Affairs , and Mayor Renald Beaulieu from the Municipality of
Greenstone.
Christian Milau, CEO of Equinox Gold, stated: “Equinox Gold continues to focus on its strategy of sector-leading
growth, launching Greenstone Mine development as construction at our Santa Luz mine in Brazil is nearing
completion. Greenstone Mine is located in one of the world’s best mining jurisdictions and will be a top -tier
mine, producing more than 400,000 ounces of gold per yea r at all-in-sustaining costs in the lowest quartile of
the industry. Greenstone Mine will be a cornerstone asset for Equinox Gold and a transformative project for
Northern Ontario. We thank our Indigenous partners, the Municipality of Greenstone, Premier F ord, Minister
Rickford and the Government of Ontario for their support of the Project and look forward to working with them,
Orion and other stakeholders in the region to build a gold mine that can be considered an industry example for
responsible mineral development.”
The Honourable Doug Ford, Premier of Ontario and Minister of Intergovernmental Affairs, stated: “Equinox Gold
and the Greenstone Mine team have shown terrific leadership in working with Indigenous communities and with
our government to get t o this point —starting construction for a major project that will create jobs and bring
prosperity to the region, and to every corner of our province. This world -class gold mine is an example of what
we can accomplish when we come together and work towards a common goal. I know Minister Rickford will
continue to work with the Greenstone Mine team in the months ahead to ensure a smooth start.”
The Honourable Greg Rickford, Ontario Minister of Northern Development, Mines, Natural Resources and
Forestry and Minister of Indigenous Affairs, stated: “Greenstone M ine will be an economic driver for
Northwestern Ontario and the latest in a series of recent success stories in Ontario’s mining sector—successes
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that our government is proud to support. This project will bring good paying jobs and prosperity to northern and
Indigenous communities in the region.”
Greenstone Mine Highlights (100% Basis)
• 5.05 million ounces life-of-mine gold production
- More than 400,000 ounces average annual gold production for the first five years
- More than 360,000 ounces average annual gold production over the initial 14-year mine life
• 5.54 million ounces of Proven and Probable Mineral Reserves grading 1.27 grams per tonne gold
• $1.23 billion initial capital (C$1.53 billion at spot rate of USD:CAD 1.25), including $125 million for the
mining fleet of which approximately $100 million could be leased to reduce the upfront cash spend
• 14-year initial mine life with expansion potential from underground and near-mine deposits
• 800 local and 1,300 regional jobs during construction, 500 jobs during operations, plus numerous
opportunities for indirect and support businesses in the region
• First gold pour targeted for H1 2024
The initial construction capital budget for the Project, on a 100% basis, is approximately $1.23 billion (C$1.53
billion), which includes more than $50 million spent to date and a $177 million contingency (approximately 14%
of total initial capital). The initial cash spend could be reduced by approximately $100 million through lease
financing for mobile equipment and offset by up to $ 70 million of pre -commercial production revenues ( at a
gold price of $1,750 per ounce). The initial capital estimate has been updated from the 20 20 feasibility study
estimate to reflect firm supplier quotes following detailed engineering, a review and update of capital costs using
the approximate current USD:CAD exchange rate of 1.25, and an increased contingency including a provision for
future inflation and potential COVID -19 impacts. Approximately 80% of the initial capital is Canadian -dollar
based.
Early works have been underway since March 2021, with more than $50 million of the total budget spent to date
(on a 100% basis). The Project timeline contemplates approximately two years of construction and six months
of commissioning, with mining expected to commence in Q4 2022 and first gold pour targeted for H1 2024.
Approximately 10% of construction capital is expected to be spent in 2021, 40% in 2022, 35% in 2023 and the
remainder in 2024. Equinox Gold’s 60% attributable portion will be funded from the Company’s existing treasury
($330 million at June 30, 2021), cash flow from producing mines and a $400 million revolving credit facility, from
which the Company has $200 million available to draw. Equinox Gold also has a portfolio of liquid investments
with a current value of more than $400 million and will consider opportunistically hedging a portion of the
budgeted Canadian dollar spend.
The project is fully permitted to start major construction activities and has Long-term Relationship Agreements
in place with five Indigenous groups: Animbiigoo Zaagi’igan Anishinaabek , Aroland First Nation , Ginoogaming
First Nation, Long Lake #58 First Nation and the Métis Nation of Ontario.
Greenstone Mine Overview and Initial Capital
Greenstone Mine is located in Ontario , Canada approximately 275 kilometres northeast of Thunder Bay and
4 kilometres south of Geraldton in the Municipality of Greenstone . With 5.54 million ounces of Proven and
Probable Mineral Reserves, Greenstone Mine is one of the largest undeveloped gold deposits in Canada, with
the potential for resource growth and mine life extension from additional underground and near-mine deposits.
The initial capital estimate has been updated from the 2020 feasibility study to reflect firm supplier quotes
following detailed engineering , a review and upd ate of capital costs, and a provision for future inflation and
potential COVID-19 impacts.
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Greenstone Mine Updated Capital Costs
Cost Category Initial Capital
($M)1
Infrastructure 70
Power and electrical 62
Water and tailings management 80
Mobile equipment 125
Infrastructure repositioning 51
Process plant 271
Construction indirects 217
General services and owner’s cost 51
Pre-production, start-up and commissioning 121
Contingency (including cost escalation and a COVID impact allowance) 177
Total Initial Capital Cost $1,225
Note: Numbers may not sum due to rounding.
The Greenstone Mine plan contemplates construction of a 27,000 tonnes-per-day processing facility and open-
pit mining operation for the Hardrock deposit. The process plant consists of a crushing circuit, grinding circuit ,
pre-leach thickening and leaching, carbon-in-pulp circuit, carbon elution and regeneration, electrowinning a nd
gold refining, and tailings disposal, with overall gold recovery of 91.2%.
Mining will use conventional open-pit blast, load and haul techniques. While the initial capital budget includes
$125 million for Mobile Equipment, the Partners anticipate obtaining lease financing for most of the fleet, which
will decrease the initial cash spend.
Greenstone Mine is located in a district with active mines and has good access to transportation and mining-
related infrastructure, including Highway 11, the TC Energy Canadian Mainline (“TCECM”) natural gas pipeline
and the Geraldton municipal airport, which has a runway capable of accommodating large aircraft. The project
scope includes $ 51 million of Infrastructure Repositioning for relocation of existing infrastructure including a
Hydro One electrical substation and distribution lines , a n Ontario Provincial P olice station and a portion of
Highway 11.
The $62 million for Power and Electrical includes construction of a power plant with a designed capacity of
46.5 MW that will connect by pipeline to the TCECM. Additional new Infrastructure of $70 million includes site
access and haul roads, workforce living and kitchen facilities, potable water and sewage systems, a workshop
and maintenance facility, warehousing and administration buildings, explosives and reagent storage, fuel
storage and distribution, a recycling and sorting facility, fire water systems and site security.
The $80 million for Water and Tailings Management includes construction of a downstream-design 145 million-
tonnes-capacity tailings management facility. Water and Tailings Management also includes a series of runoff
and seepage collection ponds that will direct all mine water, surface runoff and underground workings water to
the centralized mine water c ollection pond and effluent water treatment plant, as well as construction of the
potable water, sewage systems and fire systems required to safely operate the mine site.
The $121 million of Pre-production, Start-up and Commissioning includes mining and process plant pre -
production and commissioning, spares and first fills. Construction Indirects of $ 217 million accounts for
engineering, procurement and construction management, construction services, contractor mobilization and
demobilization, temporary camp and site facilities , and freight and logistics. General and administration costs
comprise the majority of $51 million for General Services and Owner’s Cost.
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The $177 million Contingency (approximately 14% of total initial capital) was established through a facilitated
quantitative risk assessment process contemplating foreign exchange fluctuations, inflation for labour, materials
and equipment, and uncertainty related to COVID-19 protocols and impacts.
Greenstone Mine Construction Milestones
Construction progress is summarized in a photo gallery on Equinox Gold’s website at www.equinoxgold.com .
Construction milestones to date include:
• Temporary effluent water treatment plant and feed pond complete
• Phase 1 of the temporary lodging facility complete
• Security and medical services on site
• First phase of road building and tree clearing complete
• Detailed engineering for process plant and auxiliary infrastructure is approximately 85% complete
• 30% ($230 million) of major contracts awarded
• More than 40% of contract value to date awarded to Indigenous businesses or partnerships
Equinox Gold, Orion and the Greenstone Mine team are committed to constructing and operating the
Greenstone Mine safely, ethically and responsibly and will continue to work in a spirit of partnership with
Indigenous communities, the Municipality of Greenstone, and local and regional communities to realize
opportunities in business ventures, training and education, employment and community development.
A formal construction decision by the Partners is subject to receiving consent of Equinox Gold’s lenders and the
closing of financing by Orion, both of which are expected within the next several weeks.
About Equinox Gold
Equinox Gold is a growth-focused mining company operating entirely in the Americas, with seven operating gold
mines and a clear path to achieve one million ounces of annual gold production from a pipeline of development
and expansion projects. Equinox Gold’s common shares are listed on the TSX and the NYSE American under the
trading symbol EQX. Further information about Equinox Gold’s portfolio of assets and long-term growth strategy
is available at www.equinoxgold.com or by email at [email protected].
About Orion
Orion is one of the world’s leading mining-focused investment businesses with $8.3 billion under management.
Orion specializes in providing flexible financing solutions to mining companies across the precious, base, and
bulk metals sectors and has demonstr ated capability in equity, debt, royalty, streaming, and convertible
investments. The Orion team has experience in physical metals markets, including facilitating the purchase,
financing, transportation, processing and selling of mines’ output to end customers. Orion’s select investments
in Canadian gold mining projects include Pretium Resources, Victoria Gold, Premier Gold, Claude Resources, and
Nomad Royalty Company.
Equinox Gold Contacts
Christian Milau, Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: [email protected]
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Cautionary Notes and Forward-Looking Statements
Technical Disclosure
The technical content of this press release has been reviewed and approved by Doug Reddy, Msc., P.Geo., Equinox Gold’s
COO, who is a Qualified Person under National Instrument 43-101 for Equinox Gold.
Non-IFRS Measures
This news release refers to mine cash costs per ounce sold, all -in sustaining costs (“AISC”), and sustaining and expansion
capital expenditures that are measures with no standardized meaning under International Financial Reporting Standards
(“IFRS”) and may not be comparable to similar measures presented by other companies. Their measurement and
presentation is intended to provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in acco rdance with IFRS. Non-IFRS measures are widely used in the mining industry as
measurements of performance and the Company believes that they provide further transparency into costs associated with
producing gold and will assist analysts, investors and other stakeholders of the Company in assessing its operating
performance, its ability to generate free cash flow from current operations and its overall value. Refer to the “Non- IFRS
measures” section of the Company’s Management’s Discussion and Analysis for the period ended June 30, 2021, for a more
detailed discussion of these non-IFRS measures and their calculation.
Forward-looking Statements
This news release contains certain forward -looking information and forward- looking statements within the meaning of
applicable securities legislation and may include future- oriented financial information. Forward- looking statements and
forward-looking info rmation in this news release relate to, among other things: receipt of required consents from the
Company’s lenders and Orion finalizing its financing arrangements for construction; the Company’s ability to successfully
advance construction and achieve production at Greenstone Mine, the Company’s ability to work effectively with Orion and
with Greenstone Mine’s Indigenous partners, the strategic vision for the Company and expectations regarding construction
timelines and costs, production capabilities and f uture financial or operating performance, the conversion of Mineral
Resources to Mineral Reserves, the extent and other implications of the novel coronavirus (COVID -19), and the Company’s
ability to successfully advance its growth and development projects. Forward-looking statements or information generally
identified by the use of the words “continue”, “expected”, “ targeted”, “potential”, “estimate”, and similar expressions and
phrases or statements that certain actions, events or results “will”, “could”, “would” or “should”, or the negative connotation
of such terms, are intended to identify forward -looking statements and i nformation. Although the Company believes that
the expectations reflected in such forward- looking statements and 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. The Company has based these forward-looking statements and information on the Company’s current expectations
and projections about future events and these assumptions include: the anticipated receipt of required cons ents from the
Company’s lenders and the expectation that Orion will finalize its financing arrangements in the next several weeks; prices
for gold remaining as estimated; currency exchange rates remaining as estimated; construction and development at
Greenstone Mine and Santa Luz being completed and performed in accordance with current expectations , including
estimated capital costs ; tonnage of ore to be mined and processed; ore grades and recoveries; the timely delivery and
commissioning of equipment required for the start of production at Greenstone Mine; availability of funds for the Company’s
projects and future cash requirements; capital, decommissioning and reclamation estimates; Greenstone Mine Mineral
Reserve and Mineral Resource estimates and the as sumptions on which they are based; prices for energy inputs, labour,
materials, supplies and services , and the impact of inflation on the same, remaining as expected; the ability to realize cost
savings through leasing of mobile equipment; no labour-related disruptions and no unplanned delays or interruptions in
scheduled construction, development and production, including by blockade; all necessary permits, licenses and regulatory
approvals are received in a timely manner; and the Company’s ability to comply with environmental, health and safety laws.
While the Company considers these assumptions to be reasonable based on information currently available, they may prove
to be incorrect. Accordingly, readers are cautioned not to put undue reliance on the forw ard-looking statements or
information contained in this news release.
The Company cautions that forward -looking statements and information involve known and unknown risks, uncertainties
and other factors that may cause actual results and developments to differ materially from those expressed or implied by
such forward-looking statements and information contained in this news release and the Company has made assumptions
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and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold
prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets;
operational risks and hazards inherent with the business of mining (including environmental accidents and hazards,
industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave- ins, flooding
and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee
relations; relationships with, and claims by, local communities and indigenous partners ; the Company’s ability to obtain all
necessary permits, licenses and regulat ory approvals in a timely manner or at all; changes in laws, regulations and
government practices, including environmental, export and import laws and regulations; legal restrictions relating to mining
including those imposed in connection with COVID -19; risks relating to expropriation; increased competition in the mining
industry; and those factors identified in the Company’s MD&A dated March 19, 2021 and its Annual Information Form dated
March 24, 2021, both of which relate to the year ended December 31, 2020, and in the Company’s MD&A dated August 4,
2021 for the three and six months ended June 30, 2021, all of which are available on the Company’s website at
www.equinoxgold.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar . Forward-looking statements
and information are designed to help readers understand management's views as of that time with respect to future events
and speak only as of the date they are made. Except as required by applicable law, the Company assumes no obligation to
publicly announce the results of any change to any forward-looking statement or information contained or incorporated by
reference to reflect actual results, future events or developments, changes in assumptions or changes in other factors
affecting the forward -looking statements and information. If the Company updates any one or more forward- looking
statements, no inference should be drawn t hat the Company will make additional updates with respect to those or other
forward-looking statements. All forward -looking statements and information contained in this news release are expressly
qualified in their entirety by this cautionary statement.
Greenstone Mine Reserve and Resource Estimates – Effective Date August 8, 2019 – Shown on 100% Basis
Category Tonnes
(kt)
Gold Grade
(g/t)
Contained Gold
(koz)
Proven 5,623 1.28 232
Probable 129,700 1.27 5,307
Total Proven & Probable 135,323 1.27 5,539
Measured Resources 5,700 1.30 237
Indicated Resources 141,800 1.51 6,868
Total Measured & Indicated Resources 147,500 1.50 7,105
Inferred 25,500 3.78 3,095
Notes: Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM
Council on May 10, 2014, were followed when calculating Mineral Reserves. Mineral Reserves are estimated at a cut- off grade of 0.35 g gold/t, a long-
term gold price of $1,250/oz and an exchange rate of C$/US$ of 1.30. A minimum mining width of 5 m was used. Bulk density of ore is variable but averages
2.78 t/m3. The average strip ratio is 5.10:1. Dilution factor is 17.2%. Mineral Resources are inclusive of Mineral Reserves. Resources were compiled using
a cut-off grade of 0.30 g/t gold for in-pit and 2.0 g/t gold for underground. A minimum true thickness of 3.0 m was applied during wireframing, using the
grade of the adjacent material when assayed or a value of zero when not assayed. Resources were estimated using GEOVIA GEMS™ 6.8.2 software from
drill hole and surface channel sampling, using a 3 -pass ID3 interpolation method in a block model (block size = 10 x 5 x 10 m). Wh ittle parameters (all
amounts in Canadian dollars): reference mining cost $1.98 per tonne, incremental bench cost ($/10 m bench) $0.033, milling co st $7.54/t, NSR royalty
4.4%, G&A $1.59/t, sustaining capital $0.70/t, gold price $1,625/oz, milling recovery 91.1%. Mineral resources are not reserves and do not have
demonstrated economic viability. Numbers may not sum due to rounding.
Additional information about Greenstone Mine Mineral Reserves and Mineral Resources is available in the technical report entitled “NI 43-101 Technical
Report, Hardrock Project, Ontario, Canada” prepared by G. Mining Services Inc. for Premier Gold with an effective date of Dec ember 16, 2020. The
Greenstone Mine technical report is available on Equinox Gold’s website and on SEDAR under Premier Gold’s profile.
Cautionary Note to U.S. Readers Concerning Estimates of Mineral Reserves and Mineral Resources
Information about mineral reserve and resource estimates in this news release has not been prepared in accordance with
the requirements of U.S. securities laws. The technical information in this news release has been prepared in accordance
with Canadian reporting standards and certain estimates are made in accordance with National Instrument 43-
101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure an issuer makes of technical information concerning
mineral projects. Unless otherwise indicated, all mineral reserve and resource estimates contained in this news release have
been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petr oleum Definition
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Standards on Mineral Resources and Reserves ("CIM Definition Standards"). Canadian standards, including NI 43-101, differ
significantly from the historical requirements of the Securities and Exchange Commission (the “SEC”), and mineral res erve
and resource estimates contained in this news release, or incorporated by reference, may not be comparable to similar
information disclosed by U.S. companies. The SEC has adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are registered with the SEC (the “SEC Modernization Rules”).
The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that are included
in SEC Industry Guide 7. U.S. companies must provide disclosure on mineral properties under the SEC Modernization Rules
for fiscal years beginning January 1, 2021 or later. Under the SEC Modernization Rules, the definitions of “proven mineral
reserves” and “probable mineral r eserves” have been amended to be substantially similar to the corresponding CIM
Definition Standards and the SEC has added definitions to recognize “measured mineral resources”, “indicated mineral
resources” and “inferred mineral resources” which are also substantially similar to the corresponding CIM Definition
Standards; however, there are still differences in the definitions and standards under the SEC Modernization Rules and the
CIM Definition Standards. Therefore, the Company’s mineral resources and reserves as determined in accordance with NI
43-101 may be significantly different than if they had been determined in accordance with the SEC Modernization Rules.