Equinox Gold Announces Updated Feasibility Study for Los Filos Expansion Mineral Reserves Increased 44% to 5.4 Million Ounces of Gold 360,000 Ounces of Average Annual Gold Production from 2025-2030 Mine Life Extended to 14.5 Years with 280,000 Ounces of Average Annual Gold Production
TSX: EQX
NYSE-A: EQX
Suite 1501 - 700 West Pender St., Vancouver, BC Canada V6C 1G8
[email protected] +1 604.558.0560 www.equinoxgold.com
NEWS RELEASE
Equinox Gold Announces Updated Feasibility Study for Los Filos Expansion
Mineral Reserves Increased 44% to 5.4 Million Ounces of Gold
360,000 Ounces of Average Annual Gold Production from 2025-2030
Mine Life Extended to 14.5 Years with 280,000 Ounces of Average Annual Gold Production
NPV5% of $625 million and IRR of 26% at $1,675/oz Gold
all dollar figures in US dollars, unless otherwise indicated
October 19, 2022 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the
“Company”) is pleased to announce the results of a Feasibility Study for an expansion at the Company’s 100% -
owned Los Filos Mine Complex (“Los Filos”) located in Mexico. Current Los Filos operations consist of both run-
of-mine (“ROM”) and crush ed ore heap leach facilities. With continued development of the Bermejal
Underground deposit and construction of a 10,000 tonnes per day (“ t/d”) carbon-in-leach (“CIL”) processing
plant, the Los Filos mine life would be extended to 14.5 years with life-of-mine (“LOM”) average annual
production increasing to 280,000 ounces (“oz”) of gold (2023-2036) at all-in sustaining costs1 (“AISC”) of $1,081
per oz. Total LOM production is estimated at 3.97 million oz of gold. Peak production during 2025-2030 averages
360,000 oz of gold per year. Using the base case $1,675/oz gold price, the expansion project has an after-tax net
present value discounted at 5% (“NPV5%”) of $625 million with an internal rate of return (“IRR”) of 26%.
Gold mineralization at Los Filos extends beyond the drilled area, and it is expected that additional drilling along
the contact between intrusive and carbonate rock could identify further skarn mineralization. With exploration
success and conversion of Mineral Resources to Mineral Reserv es, considerable potential exists to extend the
Los Filos mine life beyond 2036.
LOS FILOS EXPANSION HIGHLIGHTS
• After-tax NPV5% of $625 million at base case $1,675/oz gold
• After-tax IRR of 26% at $1,675/oz gold
• 5.4 million oz gold of Proven and Probable Mineral Reserves
• 7.9 million oz gold of Measured & Indicated Resources (exclusive of Reserves)
• 3.97 million oz LOM gold production
- 360,000 oz peak average annual gold production (2025-2030)
- 280,000 oz average annual gold production LOM (2023-2036)
- 1.22 million oz of gold produced from the heap leach with average recovery of 55%
- 2.75 million oz of gold produced from the CIL plant with average recovery of 88%
• 11.83 million oz LOM silver production
• $993 million after-tax LOM cumulative net cash flow
• $981/oz average LOM cash costs1
• $1,081/oz average LOM AISC1
• $318 million initial capital cost to build the CIL plant and associated infrastructure
• 14.5-year mine life with extension potential from Mineral Resource conversion and exploration success
_______________________________________
1. Cash costs and all-in sustaining costs are non-IFRS measures. See Non-IFRS and Other Financial Measures.
- 2 -
The Feasibility Study includes an updated Mineral Reserve and Mineral Resource estimate incorporating a
revised mine plan and 101,407 metres of exploration drilling since October 31, 2018 . Factoring 681,000 oz of
mining depletion over almost four years, Los Filos Mineral Reserves have increased 44% over the 2018 estimate,
with 193.2 million tonnes (“Mt”) of Proven & Probable Mineral Reserves grading 0. 86 grams per tonne (“g/t”)
gold for 5.4 million oz of contained gold. An additional 325.3 Mt of Measured & Indicated Mineral Resources
(exclusive of Mineral Reserves) grading 0. 75 g/t gold for 7.9 million oz of contained gold, and 135.9 Mt of
Inferred Mineral Resources grading 0.74 g/t gold for 3.2 million oz of contained gold demonstrate the potential
for mine life extension with successful conversion of Mineral Resources to Mineral Reserves . Refer to the
detailed Mineral Reserve and Mineral Resource tables that follow in this news release.
Los Filos encompasses three main open -pit mining areas : Los Filos, Guadalupe and Bermejal, and three
underground mines: Los Filos South, Los Filos North and Bermejal Underground. Bermejal Underground
development recommenced in Q2-2021 and the deposit has been contributing higher-grade ore since mid-2022.
Ore from all six mining areas is currently processed on heap leach pads.
The Feasibility Study contemplates construction of a CIL plant commencing in 2023 with an 18-month timeline
for construction and commissioning , which would allow higher-grade ore to be directed to the CIL plant
commencing in mid-2024. While the economic and production estimates outlined in the Feasibility Study and in
this news release are predicated on that timeline, Equinox Gold has not approved construction for the CIL plant.
Greg Smith, President & CEO of Equinox Gold, commented: “The Feasibility Study confirms a path to expand Los
Filos to a large -scale, long-life gold mine with a substantial reserve and resource endowment and opportunity
for further growth. We are pleased with the results of the Feasibility Study ; however, we have not made a
decision to proceed with the expansion. A ny decision to proceed with the Los Filos expansion will be made
considering the operating stability in the region, market conditions and availability and cost of capital. Equinox
Gold is currently focused on construction of its Greenstone Mine in Ontario, Canada , and advancing the
permitting to expand its Castle Mountain Mine in California, USA.”
OVERVIEW
Los Filos has produced 3.4 million oz of gold since the mine commenced operations in 2005, with ore from all
deposits processed using heap leach facilities . The Feasibility Study contemplates building and operating a
10,000 t/d CIL processing plant to operate concurrently with the existing heap leach facilities. All underground
ore and higher-grade open-pit ore (generally above 0.5 g/t gold) would be directed to the CIL plant, with lower-
grade ore going onto the heap leach pads as either crushed or run-of-mine stacked ore. Ore that contains higher
levels of copper and sulphur would also be directed to the CIL plant to optimize the economic recovery of gold
from all ore types.
Constructing and o perating the CIL plant, compared to a heap leach only scenario, extends the Los Filos mine
life by approximately four years and adds more than 1.1 million ounces of gold to LOM production.
Los Filos Expansion Highlights
Gold price (base case) $1,675/oz
Exchange rate (Mexican Peso to US Dollar) 20:1
Average annual gold production (LOM) (2023-2036) 280,000 oz
Peak average annual gold production (2025-2030) 360,000 oz
Total gold production (LOM) 3.97 million oz
Heap leach facilities 1.22 million oz
CIL plant 2.75 million oz
- 3 -
Proven & Probable Mineral Reserves 5.35 million oz
Gold grade (open pit 0.65 g/t, underground 3.94 g/t) 0.86 g/t
Measured & Indicated Mineral Resources (exclusive of Mineral Reserves) 7.90 million oz
Gold grade (open pit 0.71 g/t, underground 3.65 g/t) 0.75 g/t
Open-pit strip ratio 4.4:1
Average gold recovery (heap leach / CIL) 55% / 88%
Ore stacked on heap leach (average over LOM) 28,000 t/d (10 Mtpa)
CIL plant throughput 10,000 t/d (3.65 Mtpa)
Initial mine life (commencing H2 2022) 14.5 years
Initial capital costs for CIL plant construction $318 M
Non-sustaining capital (including capitalized stripping) (LOM) $400 M
Sustaining capital (LOM) $349 M
Cash costs (LOM, including royalties) $981/oz
AISC (LOM) $1,081/oz
Net cumulative cash flow (LOM, after tax) $993 M
NPV5% (after tax) $625 M
IRR (after tax) 26%
ECONOMIC SENSITIVITIES
Using the base case gold price of $1, 675/oz and incorporating only Proven & Probable Mineral Reserves , the
expansion project has an after -tax NPV 5% of $625 million and an after -tax IRR of 26%. The expansion p roject
economics are most sensitive to fluctuations in the gold price, followed by changes in operating costs and capital
costs. Approximately 40% of capital costs for the expansion project are priced in Mexican Pesos.
After-tax NPV5% Sensitivity to Economic Changes ($M)
Variation in Parameter Operating Costs Capital Costs Gold Price
−15% 920 755 172
−10% 822 712 323
−5% 724 668 474
0% 625 625 625
5% 526 582 776
10% 427 538 926
15% 328 495 1,076
$0
$200
$400
$600
$800
$1,000
$1,200
-15% -10% -5% 0% 5% 10% 15%
NPV5% ($M)
Variation in Parameter (%)
Operating Costs Capital Costs Gold Price
- 4 -
CAPITAL AND OPERATING COSTS
Initial capital costs for construction of the CIL plant are estimated at $318 million, which is included in total LOM
non-sustaining capital of $718 million. Closure and reclamation costs of $51 million are also included in non -
sustaining capital. LOM sustaining capital is estimated at $349 million.
Los Filos Life-of-Mine Capital Costs
Item Non-Sustaining
Capital Costs
($M)
Sustaining
Capital Costs
($M)
Total
Capital Costs
($M)
Open pit mobile equipment and workshop upgrade 125 133 252
Los Filos Open Pit - capitalized stripping 112 - 112
Bermejal Open Pit - capitalized stripping 77 - 77
Guadalupe Open Pit - capitalized stripping - 44 44
Los Filos Underground development - 16 16
Bermejal Underground development 35 70 106
CIL plant 318 - 318
Heap leach pad expansion - 86 86
Closure and reclamation 51 - 51
Total 718 349 1,067
Note: Numbers may not sum due to rounding.
Total LOM operating costs are estimated at $4,015 million. Approximately 83% of the LOM operating costs are
related to mining and processing, with the remainder attributable to general and administrative costs, land
access payments and social collaboration payments to local communities.
Los Filos Life-of-Mine Operating Costs
Item ($M) $/oz
Mining (Open pit and Underground) 2,072 521
Open pit 1,118 281
Underground 954 240
Processing 1,288 324
General and administrative, community, and land access 655 165
Total operating costs 4,015 1,010
Royalties 34 9
Refining and transport 22 6
Silver credits (172) (43)
Cash costs 3,899 981
Sustaining capital 349 88
Reclamation costs 51 13
AISC 4,299 1,081
Note: Numbers may not sum due to rounding.
LOS FILOS MINERAL RESERVES & MINERAL RESOURCES
The mine plan is based on Proven & Probable Mineral Reserves of 180.6 Mt grading 0.65 g/t gold for 3.8 million
oz of contained gold in the open pit deposits, and 12.6 million tonnes grading 3.94 g/t gold for 1. 6 million oz of
contained gold in the underground deposits.
- 5 -
Los Filos Mineral Reserves Statement (June 30, 2022)
Classification Mining Method
Tonnes
(kt)
Gold Grade
(g/t )
Contained Gold
(koz)
Silver Grade
(g/t)
Contained Silver
(koz)
Proven Open Pit 35,154 0.74 837 5.0 5,677
Underground 299 4.15 40 13.7 132
Total 35,453 0.77 877 5.1 5,809
Probable Open Pit 145,476 0.62 2,921 6.3 29,303
Underground 12,297 3.94 1,556 18.9 7,458
Total 157,773 0.88 4,477 7.2 36,761
Proven &
Probable
Open Pit 180,629 0.65 3,758 6.0 34,980
Underground 12,597 3.94 1,596 18.7 7,590
Total 193,226 0.86 5,354 6.9 42,570
Notes: Mineral Reserves have been estimated in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (2014), which are
incorporated by reference in NI 43 -101. The open pit Mineral Reserve estimate was prepared under the oversight and review of Mr. Eugene Tucker,
P.Eng., and the underground Mineral Reserve estimate was prepared under the oversite and review of Mr. Paul Salmenmaki, P.Eng. Mr. Tucker and Mr.
Salmenmaki are “Qualified Persons” as defined by NI 43 -101. Mineral Reserves are estimated using a long -term gold price of $1,450 per troy oz and a
long-term silver price of $18 per troy oz for all mining areas. Mineral Reserves are stated in terms of delivered tonnes and grade before process recovery.
Mineral Reserves are defined by pit optimization and are based on variable break -even cut-offs as generated by process destination and metallurgical
recoveries. Metal recoveries are variable dependent on metal head grades as outlined in the Technical Report. Open pit dilution is applied at 5% at a zero
grade for Au and Ag for Bermejal Open Pit and Guadalupe Open Pit, and 7% at zero grade for Au and Ag for Los Filos Open Pit. Open pit mining recovery
is applied at 95% for Bermejal Open Pit and Guadalupe Open Pit, and 93% for Los Filos Open Pit. Heap leach process recovery v aries based on rock type.
The Qualified Persons responsible for this item of the Technical Report are not a ware of any mining, metallurgical, infrastructure, permitting or other
relevant factors that could materially affect the Mineral Reserve estimates. Effective date of Mineral Reserves is June 30, 2 022. Tonnage and grade
measurements are in metric units. Contained gold and silver ounces are reported as troy ounces. Underground Mineral Reserves are reported based on
a variable net processing return cut-off value varying between $65.8 and $96.6/t Underground dilution is assigned an average of 10% at a zero grade for
gold and silver. Underground mining recovery is set to 97%. Numbers may not sum due to rounding. Additional details regarding the Mineral Res erve
estimation, classification, reporting parameters, key assumptions and associated risks for Los Filos are provided in the Feasibility Study. In addition,
Mineral Reserves and Mineral Resources may be materially affected by legal, political, environmental and other risks, including the factors identified in
the Company’s Annual Information Form dated March 24, 2022 for the year ended December 31, 2021. See Cautionary Notes.
Los Filos Mineral Resources Statement (June 30, 2022) (Exclusive of Mineral Reserves)
Area Classification Tonnes
(kt)
Gold Grade
(g/t)
Contained
Gold (koz)
Silver Grade
(g/t)
Contained
Silver (koz)
Bermejal / Guadalupe
Open Pit
Measured 9,898 0.76 243 6.4 2,034
Indicated 184,152 0.59 3,492 7.6 45,186
Measured & Indicated 194,050 0.60 3,734 7.6 47,220
Inferred 44,292 0.55 777 9.8 13,932
Bermejal Underground
(below $1,500 pit shell)
Measured - - - - -
Indicated 998 3.97 127 16.3 522
Measured & Indicated 998 3.97 127 16.3 522
Inferred 1,501 4.98 241 22.7 1,093
Los Filos Open Pit Measured 35,327 1.09 1,238 6.4 7,315
Indicated 90,544 0.79 2,290 6.5 18,857
Measured & Indicated 125,870 0.87 3,528 6.5 26,172
Inferred 87,552 0.68 1,914 7.7 21,657
Los Filos Underground Measured 2,081 4.13 276 22.8 1,527
Indicated 2,326 3.09 231 25.7 1,920
Measured & Indicated 4,407 3.58 507 24.3 3,446
Inferred 2,590 3.67 306 27.5 2,287
Total Measured 47,306 1.15 1,757 7.2 10,876
Indicated 278,020 0.69 6,140 7.4 66,485
Measured & Indicated 325,326 0.75 7,897 7.4 77,360
Inferred 135,935 0.74 3,237 8.9 38,969
Notes: Mineral Resources are exclusive of Mineral Reserves and have been estimated in accordance with CIM Definition Standards for Mineral Resources
and Mineral Reserves (2014), which are incorporated by reference in NI 43 -101. The Mineral Resource estimate was prepared under the oversight and
review of Mr. Ali Shahkar, P.Eng. , a “Qualified Person” as defined by NI 43 -101. Mineral Resources that are not Mineral Reserves do not have a
demonstrated economic viability. Mineral Resources are reported to a gold price o f $1,550/oz. Open pit Mineral Resources are defined within pit shells
that use variable mining and recovery estimates depending on the geometallurgical domain and whether mineralization is projec ted to report to crush-
leach or is considered typical run-of-mine for processing requirements. Open pit Mineral Resources are reported to a gold cut -off grade of 0.2 g/t. Open
pit Mineral Resources use variable mining costs of $1.27 -$1.43/t and variable processing costs of $3.40 -$12.81/t. Recovery ranges from 50% to 85%
depending on ore treatment method. Underground Mineral Resources use variable mining costs of $57.21 -$93.12/t and variable processing costs of
$9.53-$11.64/t, and a process recovery of 90%-95%. Underground Mineral Resources are reported to a gold cut-off grade of: Los Filos South Underground
1.71 g/t gold; Los Filos North Underground 2.05 g/t gold; Bermejal underground 2.71 g/t gold. Quantity of material is rounded to the nearest 1,000 tonnes;
grades are rounded to two decimal places for gold, one decimal place for silver. Numbers may not sum due to rounding. Additional details regarding the
Mineral Resource estimation, classification, reporting parameters, key assumptions and associated risks for Los Filos are provided in the Feasibility Study.
In addition, Mineral Reserves and Mineral Resources may be materially affected by legal, political, environmental and other risks, including the factors
identified in the Company’s Annual Information Form dated March 24, 2022 for the year ended December 31, 2021. See Cautionary Notes.
- 6 -
LOS FILOS MINE PLAN
Open pit mining will remain owner -operated with conventional load, haul, drill and blast. Loading is currently
undertaken by 250-tonne shovels and large front-end loaders, and haulage by 136-tonne trucks. A larger mining
fleet composed mainly of 180 -tonne electric -drive trucks and 400 -tonne face shovels is proposed to
progressively replace the existing mining equipment as it reaches the end of its useful life , accounting for $125
million of costs considered growth capital and $133 million of sustaining capital costs over the mine life . Over
the estimated 14.5-year mine life, total open-pit material moved is estimated at 982.4 Mt, with 180.6 Mt of ore
and 801.7 Mt of waste for an open -strip ratio of 4.4:1. The mine plan con templates 34.8 Mt of open pit ore at
an average grade of 1.53 g/t gold going to the CIL plant, 24.6 Mt at an average grade of 0.67 g/t gold going to
crush heap leach and 121.2 Mt at an average grade of 0.39 g/t gold going to ROM heap leach, for total gold
production from all open-pit sources of 2.56 million oz.
Mining methods for the underground deposits vary depending on the ore type and ground conditions. In the Los
Filos Underground, mining methods include overhand cut and fill in narrow areas, overhand drift and fill in wider
areas, and longhole open stoping in areas with vertical ore body continuity and good rock conditions. In the
Bermejal Underground, oxide ore will be mined using overhand drift and fill, which constitutes the majority of
the deposit, and underhand drift and fill will be used to mine ore in intrusive host rock.
Los Filos Underground production is expected to average 960 t/d until the end of its mine life in 2025. Bermejal
Underground stope development with multiple headings is expected to advance by approximately 180 metres
per month, which is equivalent to approximately 250 t/d per stope mining horizon. A second portal will provide
two points of access by 2025, at which point Bermejal Underground is expected to operate at steady -state
production of 2,740 t/d (1 Mt/a) from 2025 to 2032. Los Filos Underground mining is owner-operated. Bermejal
Underground is mined by a contractor.
For its remaining mine life Los Filos Underground is expected to contribute 1.2 Mt of ore at an average grade of
3.50 g/t gold. Bermejal Underground is expected to contribute 11.4 Mt of ore at an average grade of 3.99 g/t
gold. Underground ore will go to crush heap leach until the CIL plant is operating at which point all underground
ore will be directed to the CIL plant, for total gold production from all underground sources of 1.41 million oz
over the remaining 14.5-year mine life.
LOM mining costs are estimated a t $1.38/t for open -pit mining, including capitalized waste stripping, and
$75.70/t for underground mining.
- 7 -
Los Filos Annual Ore Production by Mine
PRODUCTION SCHEDULE
The combined open pit and underground mine plan is focused on optimizing project value by allocating ore to
ROM leach, crush leach or the CIL plant to optimize economic gold recovery. Since the metallurgical recovery
and operating costs for each mined block of open-pit ore will be variable depending on rock type, sulphur grade,
copper grade, and processing destination, daily ore control decisions (e.g., selecting the optimal processing
destination) will be guided by mining software that determines the maxim um profit for each block, rather than
by a fixed cut-off grade. The combined mine plan results in a mine life that extends until 2036.
Los Filos Gold Ounces Produced by Processing Destination and Source
0
4
8
12
16
20Ore Produced (Mt)
Los Filos Open Pit Bermejal Open Pit Guadalupe Open Pit
Los Filos Underground Bermejal Underground
0.72
0.42
0.64
0.69
0.65
0.61 0.56 0.74
0.78 0.68
0.87
1.04
0.48
0.61
0.43
0.20
0.40
0.60
0.80
1.00
1.20
0
100,000
200,000
300,000
400,000
500,000
Average Gold Grade Processed (g/t)
Gold Ounces Produced (oz)
Open pit operations (Heap Leach) Underground operations (Heap Leach)
Open pit operations (CIL) Underground operations (CIL)
Average gold grade (g/t)
- 8 -
The LOM plan shows average recoveries of 55% from heap leach processing and 88% from the CIL plant. LOM
production averages 280,000 oz per year commencing in 2023, with peak production averaging 360,000 oz per
year from 2025-2030. LOM AISC averages $1,081/oz of gold sold. A substantial decrease in AISC from mid-2024
correlates with the increase in ounces produced as a result of the commissioning of the CIL plant.
Los Filos Annual Gold Production & AISC
PROCESSING
Heap Leach
Two large geosynthetic-lined heap leach pads are in operation, divided into two sections , one for crushed ore
and the other for ROM ore. ROM ore is currently stacked on Pad 1 and crushed ore on Pad 2. Pads 1 and 2 cover
2,515,000 m² and 721,000 m², respectively, for a total area of 3,236,000 m 2. Stacked ore is fully leached after
120 days for crushed and 180 days for ROM ores.
Pregnant leach solution from the heap leach pads will continue to be processed in the existing ADR (adsorption,
desorption and recovery) plant. The ADR plant is a conventional carbon-in-column adsorption facility associated
with an elution circuit, carbon regeneration circuit and gold refinery that produces a gold-silver doré product.
As of June 2022, approximately 260 Mt of ore have been stacked on the heap leach pads. There is sufficient
storage capacity for the LOM crushed ore on Pad 2; however, Pad 1 will not have enough storage capacity to
store all the LOM ROM ore. A third pad (Pad 3) will be constructed at the southern end of Pad 2 to provide 63.5
Mt of additional storage for ROM ore. This new pad will be constructed in three phases, starting with the first
phase in 2023. In addition to Pad 3, an “interliner” is proposed to be constructed on top of portions of Pads 1, 2
and 3 once the pads have been filled to their design capacity. The interliner will provide 82 Mt of additional
storage capacity for ROM ore and CIL tailings. The interliner will be built in two phases, with the f irst phase
required by 2031. Leach pad expansions account for $86 million of the LOM sustaining capital. The current and
planned heap leach pad infrastructure will be sufficient to support mining operations for the LOM plan.
0
400
800
1,200
1,600
2,000
0
100,000
200,000
300,000
400,000
500,000
AISC ($/oz)
Gold Produced (oz)
Production AISC