Equinox pours first gold from resin-in-leach circuit at Santa Luz mine in Brazil

Equinox Gold (TSX: EQX; NYSE: EQX) is well on its way to restarting production at the Santa Luz mine in Bahia state, Brazil, after pouring first gold from the resin and elution circuit.

The open pit mine previously operated from mid-2013 to mid-2014, after which it was placed on care and maintenance following poor metallurgical recovery results from its carbon-in-leach (CIL) plant. Subsequent metallurgical testing programs, including the operation of a pilot-scale plant, demonstrated that resin-in-leach (RIL) is a better method of gold recovery for the project.

A majority of the infrastructure is already in place, including a process plant capable of treating 7,400 t/d of ore through a combination of crushing and grinding, gravity concentration, RIL, elution and electrowinning. Equinox's mine design includes the addition of a new ball mill, new RIL circuit and new gravity concentration circuit, with its own alkaline electrowinning circuit.

Construction of the mine began in November 2020 and was completed on time and on budget, with no lost-time injuries. The initial budget was set at US$103 million, which includes capital costs related to refurbishing the existing infrastructure, retrofitting the plant, installing additional grinding power, and increasing the storage capacities of the existing tailings and water storage facilities.

Commissioning of the mine commenced in February 2022, and the mine is expected to ramp up to commercial production over the next few months. At capacity, it will produce approximately 100,000 oz. of gold a year over a 9.5-year mine life. With a partial year of production during 2022, gold output is likely to fall between 70,000 and 90,000 oz. this year.

A 2020 feasibility study pegged the Santa Luz mine project at an after-tax net present value of US$305 million (base case, 5% discount), with an internal rate of return of 58%, assuming a gold price of US$1,500/oz.

Total production of over 900,000 oz. is expected to generate US$436 million in after-tax net cash flow over the life of mine, according to the feasibility study. Average LOM all-in sustaining costs were calculated at US$877/oz.

As of the 2020 study, the Santa Luz mine had 1.1 million oz. of proven and probable mineral reserves in 21.6 million tonnes grading 1.34 g/t gold.

According to Equinox, the Santa Luz mine boasts expansion potential from underground development opportunities and several exploration targets within the greenstone belt that extends towards the Fazenda mine.

Additional information is posted on www.EquinoxGold.com.