Equinox Gold's Greenstone Project: 96% Complete, Commissioning Underway All dollar amounts shown in United States dollars
Equinox Gold's Greenstone Project: 96%
Complete, Commissioning Underway
All dollar amounts shown in United States dollars unless otherwise noted
Vancouver, British Columbia--(Newsfile Corp. - November 20, 2023) -
Equinox Gold Corp.
(TSX:
EQX) (NYSE American: EQX) is pleased to provide an update on construction and commissioning
progress at its Greenstone Project in Ontario, Canada. The Greenstone Project is being developed as a
60/40 partnership, respectively, by Equinox Gold and Orion Mine Finance Group, and will be one of the
largest gold mines in Canada, with average annual gold production of more than 400,000 ounces over
the first five years and more than five million ounces of gold produced over its initial 14-year mine life.
Greenstone Project construction progress is documented weekly in a photo gallery on Equinox Gold's
website at
www.equinoxgold.com
and select photos are included in this news release.
Recent Highlights
(at November 10, 2023 unless otherwise noted)
Schedule
- The Greenstone Project is 96% complete. Pre-commissioning
1
activities are ongoing
in most of the main process plant areas, including the crushing and grinding circuits, and wet
commissioning
1
is underway in select areas.
Budget
- The Greenstone Project remains on track for a total spend of $1,225 million. At
September 30, 2023, $1,087 million (89%) of the budget had been spent (100% basis).
Facilities completed
- The realigned 4.7 km of Highway 11 was opened to traffic in August and
the power plant was turned over to the operations team in September, both ahead of plan. The
permanent effluent water treatment plant, truck shop, warehouse, sewage treatment plant, potable
water treatment plant, pit and plant site fuel stations, reagent storage, site mixed emulsion
(explosives) plant and natural gas pipeline to site were previously turned over and are all in
operation.
Construction progress
- All major equipment is now on site and construction is 96% complete.
The focus is on remaining electrical and instrumentation installations in the process plant. In
October, the tailings storage facility ("TSF") was completed to planned elevation. Commissioning
of the TSF is on track for December 2023.
Commissioning
- Pre-commissioning activities are ramping up in coordination with final
construction activities, with systems checks underway at the crusher, ball mills, ore storage dome
and high-pressure grinding rolls ("HPGR") areas. Wet commissioning has commenced at the
leach tanks and in the crusher area.
Pre-production mining
- The third Epiroc Pit Viper 235 drill has been commissioned.
Commissioning of CAT 793F haul trucks 9 and 10 is underway, and haul trucks 11 to 14 and the
LeTourneau 1850 loader will be ready for service in early Q1 2024. More than 15 million tonnes of
material has been moved to date and build-up of the ore stockpile is ahead of plan and on track to
exceed the 800,000 tonnes start-up target.
Operational readiness
- Operational readiness activities and hiring are progressing in-line with
plan. An update on Greenstone 2024 operating costs and production estimates will be reported in
connection with the Company's annual production and cost guidance in Q1 2024.
Greg Smith, President & CEO of Equinox Gold, commented: "With the Greenstone Project 96%
complete and the power plant fully operational, the priority is now on completion and commissioning of
the process plant, commissioning of the TSF and ramp up of mining and operations. The project
continues to advance on budget and on schedule. We look forward to pouring gold in the first half of
2024 and then achieving commercial production."
Greenstone Project Progress
Area
Progress to Date
(at November 10, 2023 unless otherwise noted)
Total Overall Progress
Overall project 96% complete and on schedule to pour gold in the first half of 2024
-
Detailed engineering complete
-
Procurement 92% complete
-
Construction 96% complete
Safety
Continued strong health and safety performance with project-to-date Total Recordable Injury Frequency Rate
2
at October 27, 2023 of 3.72 per million hours worked
5.3 million hours worked with one lost-time injury
Budget
Project remains on budget. At September 30, 2023:
-
89% of total cost spent ($1,087 million)
-
All purchase orders and construction contracts for project completion in place
-
Inflationary pressures have been mitigated through favourable exchange rates and offsetting savings
opportunities, or absorbed through the $177 million contingency included in the construction budget
Process Plant
Process plant construction 96% complete
All major equipment installations including the ball mills, HPGR and conveyors are complete, with final work on
piping and electrical underway
Demobilization of structural and mechanical contractors has commenced
Full process plant commissioning team and plans in place
All electrical rooms are energized
Pre-commissioning activities are ongoing in most of the main process plant areas, including the crushing and
grinding circuits
Wet commissioning of the leach tanks and crushing circuit has commenced
Compressed air and gland water distribution have been commissioned to support commissioning activities in
other areas
Tailings Facility and Water
Management
TSF complete to the planned start-up elevation of 340 metres
Construction of the spillway and pipe corridor extension is nearing completion
Upstream buttress complete, downstream buttress will be complete by year end
All TSF construction required for commissioning is complete and commissioning is on track for December 2023
Site Infrastructure
Truck shop, warehouse, administration office, pit and plant site fuel stations, sewage treatment plant, potable
water treatment plant, site mixed emulsion (explosives) plant, and reagent cold storage building complete and
operational
On-site power plant fully operational and providing power to all site infrastructure
Mobile Equipment and
Mining
Mine pre-production activities operating 24/7 and on plan, with more than 15 million tonnes of material moved
to date
Ten CAT 793F trucks, two Epiroc D65 drills, three Epiroc Pit Viper 235 drills, two Komatsu PC5500 shovels and
four Komatsu D375A-8 bulldozers in service
Mining of ore for the commissioning stockpile is ahead of plan and on track to exceed the 800,000 tonnes
planned for start-up, with 630,000 tonnes stockpiled at November 16
Operational Readiness
Plant operational readiness activities including hiring, procedures development, systems implementation,
procurement activities, and training are on plan
100% of capital spares and operating spares purchased, deliveries in progress
Workforce
All key operations positions are filled
More than 290 operations personnel hired to date, with 30% of personnel self-identified as having Indigenous
ancestry
Demobilization of contractor workforce underway
Infrastructure Repositioning
Highway 11 relocation completed ahead of schedule and opened to traffic in August
Foundation for the Hydro One Geraldton Operating Centre is complete and building erection is underway
Planning for the Hydro One substation relocation in 2024 underway; all long lead equipment has been
purchased, with many items delivered or ready for delivery
Remaining Project Milestones
Remaining milestones to achieve production include:
Tailing storage facility complete and ready for use: December 2023
Process plant hot commissioning
1
: Q1-Q2 2024
Gold pour: H1 2024
Equinox Gold Contacts
Greg Smith, President & CEO
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email:
__________________________
1
Pre-commissioning
is the completion of the construction phase for each equipment and system, including the completion of all inspection test
plans, confirmation of all motors and rotations, and confirmation of all signals from equipment and instruments to the control systems.
Wet
commissioning
includes a dry run of equipment, running motors, vibration and temperature monitoring, loop tests, and testing of safety devices,
interlocks and speed control.
Hot commissioning
follows wet commissioning with the introduction of reagents and ore.
2
Total Recordable Injury Frequency Rate is the total number of injuries excluding those requiring simple first aid treatment.
Construction Photos
Plant site
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_d781aa9974fb0a47_001full.jpg
Pit and plant site
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_d781aa9974fb0a47_002full.jpg
Primary and secondary crushers
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_d781aa9974fb0a47_003full.jpg
High pressure grinding rolls (HPGR) building
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_high_pressure_grindingrollshpgrbuilding.jpg
Ball mills and screens
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_d781aa9974fb0a47_005full.jpg
Pre-leach thickener, process plant and conveyors
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9355/187993_d781aa9974fb0a47_006full.jpg
Cautionary Notes
This news release contains certain forward-looking information and forward-looking statements within
the meaning of applicable securities legislation. Forward-Looking statements and forward-looking
information in this news release relate to, among other things: the Company's ability to successfully
advance construction and achieve production at Greenstone; the Company's expectations regarding
construction timelines and costs for Greenstone, including its ability to manage inflationary pressures;
and the Company's expectations for the operation of Greenstone, including production capabilities
and future financial or operating performance. Forward-Looking statements or information generally
identified by the use of the words "will", "advance", "progress", "on track", "on schedule", "on budget",
"on plan", "achieve", "remain", "plan", "continue", "expect", and similar expressions and phrases or
statements that certain actions, events or results "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 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: construction and
development at Greenstone being completed and performed in accordance with current expectations,
including estimated capital costs; prices for energy inputs, labour, materials, supplies and services,
and the impact of inflation on the same, remaining as expected; the timely delivery and
commissioning of equipment; availability of funds for the Company's projects and future cash
requirements; capital, decommissioning and reclamation estimates; Greenstone Mineral Reserve
and Mineral Resource estimates and the assumptions on which they are based; the ability to realize
cost savings through leasing of mobile equipment; prices for gold remaining as estimated; no labour-
related disruptions and no unplanned delays or interruptions in scheduled construction, development,
commissioning, and production; all necessary permits, licenses and regulatory approvals are
received in a timely manner; the Company's ability to work effectively with its joint venture partner;
successful relationships between the Company and its Indigenous partners at Greenstone; 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
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 regulatory approvals in a timely manner or at all;
changes in laws, regulations and government practices, including environmental, export and import
laws and regulations; the ability of Equinox Gold to work productively with its joint venture partner and
Indigenous partners at Greenstone; legal restrictions relating to mining; increased competition in the
mining industry; and those factors identified in the section titled "Risks and Uncertainties" in Equinox
Gold's MD&A dated February 21, 2023 for the year ended December 31, 2022 and in the section
titled "Risks Related to the Business" in Equinox Gold's most recently filed Annual Information Form,
both of which are available on SEDAR+ at
www.sedarplus.ca
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, Equinox Gold 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 Equinox Gold updates any
one or more forward-looking statements, no inference should be drawn that Equinox Gold 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.
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