Equinox Gold Increases Mesquite Reserves by 28% and Measured & Indicated Resources by 94%
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 Increases Mesquite Reserves by 28% and Measured & Indicated Resources by 94%
October 8, 2020 – Vancouver, BC – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the
“Company”) is pleased to announce that exploration success during the first half of 2020 has significantly
increased Mineral Reserves and Mineral R esources at the Company’s Mesquite Gold Mine (“Mesquite”) in
California, USA.
Highlights
• Proven and Probable Mineral Reserves increased 28% to 658,000 ounces (“oz”) of contained gold net of
mining depletion to June 30, 2020
• Measured and Indicated (“M&I”) Mineral Resources increased 94% to 837,000 oz of contained gold,
exclusive of reserves
• Inferred Mineral Resources increased 38% to 703,000 oz of contained gold
• Ongoing exploration continues to demonstrate growth potential at the Brownie deposit; initial drilling
highlights include: 35.1 metres (“m”) at 0.51 grams per tonne (“g/t”) gold; 33.5 m at 0.66 g/t gold;
52.6 m at 0.85 g/t gold; and 44.2 m at 0.58 g/t gold
Scott Heffernan, EVP Exploration of Equinox Gold, stated: “ Exploration efforts at Mesquite in the first half of
2020 more than replaced mined reserves and significantly increased mineral resources, providing additional
mine life at what has been our best -performing mine this year. Drilling in the Brownie deposit also yielded
excellent results and points to potential for a multi-year mine life extension from in -situ mineralization and
overlying mineralized dumps.”
Mesquite Mineral Reserve Update
Building on the significant improvements achieved in the recent December 31, 2019 Mineral Reserve and
Mineral Resource estimates, this mid-year 2020 update includes an additional 10,785 m (77 holes) of bedrock
drilling, 36,785 m (661 holes) of drilling targeting historic al dumps, and updated geologic and grade -shell
domains.
Mesquite Proven and Probable Mineral Reserves at June 30, 2020 are estimated at 37.8 million tonnes (“Mt”)
grading 0.54 g/t gold for 658,000 oz of contained gold (Table 1, with Imperial units provided in the Appendix to
this news release). Net of mining depletion (68,267 oz of Proven and Probable Reserve) during the first half of
2020, the updated Mineral Reserve represents a 28% increase (142,267 oz). The update d Mineral Reserve
estimate uses the same design and parameters as the December 31, 2019 estimate. A redesign will commence
upon completion of exploration and geotechnical drill programs.
Mesquite Mineral Resource Update
Mesquite M easured and Indicated Mineral Resources at June 30, 2020, exclusive of Mineral Reserves, are
estimated at 66.7 Mt grading 0.39 g/t gold for 837,000 oz of contained gold (Table 2, with Imperial units provided
in the Appendix to this news release). This represents a 94% increase when compared to the previous Measured
and Indicated Mineral Resource estimate of 432,000 oz of gold. Inferred Mineral Resources at June 30, 2020 are
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estimated at 69.2 Mt grading 0.32 g/t gold for 703,000 oz of contained gold (Table 2), representing a 38%
increase compared to the previous estimate of 510,000 oz of gold.
At year-end 2019, the Company had identified approximately 40 million short tons of potentially mineralized
material from previous operations that had not been drill tested and the Company initiated a 35,000 m
exploration drill program. Drilling in the Big Ch ief, Midway and Brownie dumps yielded significant gains in
Mineral Resources. Indicated Mineral Resources in the dumps have increased more than fourfold to 22.7 Mt
grading 0.22 g/t gold for 160,000 oz of contained gold. Inferred Mineral Resources in the dumps have increased
31% to 36.6 Mt grading 0. 22 g/t gold for 255,000 contained oz of gold. The increases as noted do not reflect
depletion of resource material contained in the 2019 year-end Mineral Resource that has already been stacked
on the leach pad.
Table 1: Mesquite Mineral Reserve Estimate at June 30, 2020
Ore Type
Proven Reserves Probable Reserves Proven & Probable Reserves
Tonnes
(kt)
Gold
Grade
(g/t)
Contained
Gold
(koz)
Tonnes
(kt)
Gold
Grade
(g/t)
Contained
Gold
(koz)
Tonnes
(kt)
Gold
Grade
(g/t)
Contained
Gold (koz)
Oxide - - - 18,559 0.40 239 18,559 0.40 239
Transition 10 0.98 - 2,968 0.62 59 2,978 0.62 59
Non-oxide 105 1.04 4 16,173 0.69 356 16,278 0.69 360
Total 115 1.05 4 37,700 0.54 654 37,815 0.54 658
Notes: This Mineral Reserve estimate has an effective date of June 30, 2020 and is based on the Mineral Resource estimate prepared by Ali Shakar (Lions
Gate Geological Consulting Inc. ) The Mineral Reserve calculation was completed under the supervision of Gordon Zurowski, P.Eng. ( AGP Mining
Consultants Inc.), who is a Qualified Person as defined under NI 43-101. Mineral Reserves are stated within the final design pit based on a $1,350/oz gold
price. The cut-off grade varied by material type from 0.14 g/t for oxide and oxide-transition and 0.31 g/t for non-oxide materials. The mining cost averaged
$1.60/t mined, processing costs are $2.26/t ore and G&A was $0.77/t ore placed. The gold recoveries were 75% for oxide and 35% for non-oxide material.
Oxide ore includes dump material identified as reserves.
Table 2: Mesquite Mineral Resource Estimate (Exclusive of Reserves) at June 30, 2020
Ore Type
Measured Indicated Measured & Indicated Inferred
Tonnes
(kt)
Grade
(g/t)
Gold
(koz)
Tonnes
(kt)
Grade
(g/t)
Gold
(koz)
Tonnes
(kt)
Grade
(g/t)
Gold
(koz)
Tonnes
(kt)
Grade
(g/t)
Gold
(koz)
Oxide 5 0.65 0 10,434 0.40 133 10,439 0.40 133 11,138 0.41 145
Non-oxide 40 0.40 1 33,572 0.50 543 33,612 0.50 544 21,395 0.44 303
Dumps - - - 22,695 0.22 160 22,695 0.22 160 36,654 0.22 255
Total 45 0.42 1 66,701 0.39 836 66,746 0.39 837 69,187 0.32 703
Notes: Mineral Resources have an effective date of June 30, 2020 and are reported exclusive of Mineral Reserves. Mineral Resources were restricted
between the December 31, 2019 R eserve pit designs and the ultimate resource limiting pit shell based on a gold price of $ 1,500/oz, a mining cost of
$1.60/t mined, a processing cost of $2.26/t ore and G&A of $0.77/t ore. Oxide and oxide transition have an assumed recovery of 75% and cut-off grade of
0.09 g/t. Non-oxide and non-oxide transition have an assumed recovery of 35% and cut -off grade of 0. 18 g/t. Waste dump material has an assumed
recovery of 75% and cut-off grade of 0.14 g/t. Ali Shahkar P.Eng. of Lions Gate Geological Consulting Inc. is the Qualified Person under NI 43-101 responsible
for the in-situ mineral resource estimation. Robert Sim, P.Geo. of SIM Geological Inc. is the Qualified Person under NI 43 -101 responsible for the waste
dump mineral resource estimation. Numbers may appear not to sum properly due to rounding. Mineral Resources are not Mineral Reserves and do not
have demonstrated economic viability. See Cautionary Notes and Technical Disclosure Statement at the end of this news release.
Brownie Expansion Drilling Program
Drilling in 2019 provided confirmation that the dump material overlying the Brownie deposit area contains
significant gold resources and that in -situ mineralization was present adjacent to and extending from the
resource pit. A follow-up 13,897 m drill program was carried out to test the potential to extend mineralization
along strike and down dip (Figure 1) . Drilling results include highlights of 35.1 m at 0.51 g/t gold, 33.5 m at
0.66 g/t gold, 52.6 m at 0.85 g/t gold, and 44.2 m at 0.58 g/t gold . The results increase confidence in the
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geological model and highlight the potential for further expansion potential to the north, northwe st and
southeast of the existing resources (Figure 2).
Figure 1: Mineral Resource and Mineral Reserve Map of the Mesquite Mine with 2020 Drilling
Figure 2: Long Section of Brownie Deposit, Overlying Dumps and Expanded Mineral Resource Facing Northeast
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Qualified Persons
Ali Shahkar, P.Eng. of Lions Gate Geological Consulting Inc. , is the Qualified Person under National Instrument
43-101 (“NI 43 -101”) responsible for the in -situ Mineral Resource estimation. Robert Sim, P.Geo. of SIM
Geological Inc. , is the Qualified Person under NI 43 -101 responsible for the waste dump Mineral Resource
estimation. The Mineral Reserve calculation was completed under the supervision of Gordon Zurowski, P.Eng.
of AGP Mining Consultants, who is a Qualified Person as define d under NI 43-101. These Qualified Persons are
independent of the Company and have reviewed and approved of the contents of this news release. The Mineral
Reserve and Mineral R esource estimates were prepared in accordance with standards as defined by the
Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) in “CIM Definition Standards on Mineral
Resources and Mineral Reserves” adopted by CIM Council on May 10, 2014.
The June 30, 2020 Mesquite Mineral Reserves and Mineral Resources update was based on technical information
regarding the Mesquite property originally reported in the “Technical Report on the Mesquite Gold Mine,
California, U.S.A.” (the “Mesquite Technical Report”) dated March 18, 2020 with an effective date of December
31, 2019, prepa red by AGP Mining Consultants Inc. and also incorporates newly acquired data. The Qualified
Persons as defined by National Instrument 43 -101 who prepared or supervised the preparation of the
information contained in the report are Bruce Davis, FAusIMM (BD Resource Consulting, Inc.), Nathan Robison,
PE (Robison Engineering Company I nc.), Ali Shahkar P.Eng. (Lions Gate Geological Consulting Inc.), Robert Sim,
P.Geo. (SIM Geological Inc.), Jefferey Woods, SME MMAS (Woods Process Services, LLC) and Gordon Zurowski,
P.Eng (AGP).
Scott Heffernan, MSc, P.Geo., Equinox Gold’s EVP Exploration, is responsible for the drilling programs at
Mesquite, is a Qualified Person under National Instrument 43-101 for Equinox Gold and has reviewed, approved
and verified the technical content of thi s news release. Doug Reddy, MSc., P.Geo., Equinox Gold’s Chief
Operating Officer, is a Qualified Person under National Instrument 43 -101 for Equinox Gold and has also
reviewed and verified the technical content of this news release.
About Equinox Gold
Equinox Gold is a Canadian mining company 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
operates entirely in the Americas, with two properties in the United States, one in Mexico and f our in Brazil.
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].
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
Mesquite Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources were restricted between the
June 30, 2020 Reserve pit designs and the ultimate resource limiting pit shell based on a gold price of $1,500/oz, mining cost
of $1.60/t mined and a processing cost of $2.26/t ore and G&A was $0.77/t ore placed. Gold recoveries had an assumed
recovery of 75% for oxide and 35% for non-oxide materials. The cut-off grade varied by material type from 0.09 g/t for oxide
and oxide-transition and 0.18 g/t for non-oxide transition and non- oxide materials. Waste dump material has an assumed
recovery of 75% and cut -off grade of 0. 14 g/t. Ali Shahkar P.Eng. of Lions Gate Geological Consulting Inc. is the Qualified
Person under NI 43-101 responsible for the in-situ mineral resource estimation. Robert Sim, P.Geo. of SIM Geological Inc. is
the Qualified Person under NI 43 -101 responsible for the waste dump mineral resource estimation. Numbers may not total
due to rounding. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral
Reserve estimate has an effective date of June 30, 2020 and is based on the Mineral Resource estimate dated June 30, 2020
prepared by Lions Gate Geological Consulting Inc. The Mineral Reserve calculation was completed under the supervision of
Gordon Zurowski, P.Eng. of AGP , who is a Qualified Person as defined under NI 43 -101. Mineral Reserves are stated within
the final design pit based on a $1,350/oz gold price. The cut -off grade varied by material type from 0. 14 g/t for oxide and
0.31 g/t for non-oxide materials. The mining cost averaged $1. 60/t mined, processing costs are $2.26/t ore and G&A was
$0.77/t ore placed. The ore recoveries were 75% for oxide and 35% for non- oxide materials. The June 30, 2020 Mesquite
Mineral Reserves and Mineral Resources update was based on technical information regarding the Mesquite property
originally reported in the “Technical Report on the Mesquite Gold Mine, California, U.S.A.” (the “Mesquite Technical Report”)
dated March 18, 2020 with an effective date of December 31, 2019, prepared by AGP Mining Consultants Inc. The Qualified
Persons as defined by National Instrument 43-101 who prepared or supervised the preparation of the information contained
in the report are Bruce Davis, FAusIMM (BD Resource Consulting, Inc.), Nathan Robison, PE (Robison Engineering Company
Inc.), Ali Shahkar P.Eng. (Lions Gate Geological Consulting Inc.), Robert Sim, P.Geo. (SIM Geological Inc.), Jefferey Woods,
SME MMAS (Woods Process Services, LLC) and Gordon Zurowski, P.Eng (AGP). Numbers may not sum due to rounding.
Drill composites were calculated using cut -off values of 0.14 g/t and contain no more than 5 metres of internal waste. Drill
intersections are calculated using uncut assays and reported as drilled thickness. All samples were submitted to American
Assay Lab in Reno, NV for sample preparation and analysis. All samples were crushed and pulverized from which a 1 kg
sample pulp was taken for the following analyses: a 50-gram fire assay for gold; a 48 multi-element geochemical suite by 5-
acid digestion and Induct ively-Coupled Mass Spectrometry (ICP -MS); and a total sulphur and sulphide sulphur analysis.
Samples with fire assay gold values over 10.0 g/t gold are re- assayed bye Screen Metallics fire assay. Control samples
(accredited standards, blanks, and duplicate samples at the field and preparation stages) were inserted on a regular basis
and results were monitored upon receipt of assays.
Cautionary Note to U.S. Readers Concerning Estimates of Mineral Reserves and Mineral Resources
Information regarding Mineral Reserve and Mineral Resource estimates has been prepared in accordance with Canadian
standards under applicable Canadian securities laws and may not be comparable to similar informatio n 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”) Definition 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, mineralizatio n 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 r elease 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. While an
“Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its economic and legal feasibility,
it can be reasonably expected that the majority of an “Inferred Mineral Resource” could be upgraded to an “Indicated
Mineral Resource” with continued exploration. 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
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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.
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 information in this news release relat e to, among other things, expectations regarding production and
future financial or operational performance of the Mesquite Mine, including the growth potential of the Brownie deposit
and conversion of Mineral Resources to Mineral Reserves. Forward- looking statements or information generally identified
by the use of the words “will”, “confidence”, “potential”, “planned”, “objective”, “can”, “continue”, “estimate, “growth” and
similar expressions and phrases or statements that certain actions, events or res ults “may”, “could”, “would” or “should”,
or the negative connotation of such terms, are intended to identify forward -looking statements and information. Although
the Company believes that the expectations reflected in such forward -looking statements and i nformation 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 results of planned
and future drill programs at Mesquite, the Company’s ability to extend the mine life at Mesquite, the Company’s Mineral
Reserve and Resource estimates and the assumptions on which they are based, including the Company’s ability to upgrade
Inferred Resources to Indicated Resources, availability of funds for the Company’s projects and future cash requirements;
prices for energy inputs, labour, materials, supplies and services; no labour -related disruptions and no unplanned delays or
interruptions in scheduled exploration, 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 forward- 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
and estimates based on or relat ed 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 populations; the Company’s ability to obtain
all necessary permits, licenses and regulatory 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 expropriati on; increased competition in the mining
industry; and those factors identified in the Company’s MD&A dated February 28, 2020 for the year ended December 31,
2019 and its Annual Information Form dated May 13, 2020, which are available 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 update or 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 that the
Company will make additional updates with res pect 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.
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APPENDIX
Mesquite Mineral Reserve Estimate at June 30, 2020
(Imperial Units)
Ore Type
Proven Reserves Probable Reserves Proven & Probable Reserves
Tons
(kt)
Gold
Grade
(oz/t)
Contained
Gold
(koz)
Tons
(kt)
Gold
Grade
(oz/t)
Contained
Gold
(koz)
Tons
(kt)
Gold
Grade
(oz/t)
Contained
Gold
(koz)
Oxide - - - 20,462 0.012 239 20,462 0.012 239
Transition 11 0.029 - 3,272 0.018 59 3,283 0.018 59
Non-oxide 116 0.031 4 17,831 0.020 356 17,947 0.020 360
Total 127 0.031 4 41,565 0.016 654 41,692 0.016 658
Notes: This Mineral Reserve estimate has an effective date of June 30, 2020 and is based on the Mineral Resource estimate dated
June 30, 2020 prepared by Lions Gate Geological Consulting Inc. The Mineral Reserve calculation was completed under the supervis ion
of Gordon Zurowski, P.Eng. of AGP Mining Consultants Inc., who is a Qualified Person as defined under NI 43 -101. Mineral Reserves are
stated within the final design pit based on a $1,350/oz gold price. The cut -off grade varied by material type from 0.004 oz/ton for oxide
and oxide-transition and 0.009 oz/t on for non-oxide transition and non- oxide materials. The mining cost averaged $1.45/t on mined,
processing costs are $2.05/t on ore and G&A was $0.70/t on ore placed. The ore recoveries were 75% for oxide and 35% for non -oxide
material. Numbers may not total due to rounding. See Cautionary Notes and Technical Disclosure Statement.
Mesquite Mineral Resource Estimate (Exclusive of Reserves) at June 30, 2020
(Imperial Units)
Ore
Type
Measured Indicated Measured & Indicated Inferred
Tons
(kt)
Grade
(oz/t)
Gold
(koz)
Tons
(kt)
Grade
(oz/t)
Gold
(koz)
Tons
(kt)
Grade
(oz/t)
Gold
(koz)
Tons
(kt)
Grade
(oz/t)
Gold
(koz)
Oxide 6 0.019 0 11,504 0.012 133 11,510 0.012 133 12,280 0.012 145
Non-oxide 44 0.012 1 37,014 0.015 543 37,058 0.015 544 23,589 0.013 303
Dumps - - - 25,022 0.006 160 25,022 0.006 160 40,412 0.006 255
Total 50 0.012 1 73,540 0.011 836 73,590 0.011 837 76,281 0.009 703
Notes: Mineral Resources have an effective date of June 30, 2020 and are reported exclusive of Mineral R eserves. Mineral Resources
were restricted between the June 30, 2020 Reserve pit designs and the ultimate resource limiting pit shell based on a gold price of
$1,500/oz, mining cost of $1.45/ton mined and a processing cost of $2.05/ton ore. Oxide and oxide transition have an assumed recovery
of 75% and cut -off grade of 0. 0025 oz/ton. Non-oxide and non-oxide transition have an assumed recovery of 35% and cut -off grade of
0.0053 oz/t. Waste dump material has an assumed recovery of 75% and cut -off grade of 0.004 oz/ton. Ali Shahkar P.Eng. of Lions Gate
Geological Consulting Inc. is the Qualified Person under NI 43 -101 responsible for the in- situ mineral resource estimation. Robert Sim,
P.Geo. of SIM Geological Inc. is the Qualified Person under NI 43 -101 responsible for the waste dump mineral resource estimation.
Numbers may not appear to sum properly due to rounding. Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. See Cautionary Notes and Technical Disclosure Statement.