VANCOUVER, BC, May 16, 2022
/CNW/ - Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX)
("Equinox Gold" or the "Company") announces that, as previously
disclosed, permits for the scheduled tailings storage facility
("TSF") raise at the Company's RDM Mine in Brazil have been delayed. Equinox Gold has
temporarily suspended RDM operations until this matter can be
resolved.
Discussions with regulatory authorities are ongoing and the TSF
raise contractor is ready to mobilize and commence work. Equinox
Gold expects that full operations could restart as soon as two
months from the receipt of regulatory approval, which is
anticipated during Q2 2022.
Equinox Gold is withdrawing its 2022 production guidance for the
RDM Mine, forecast at 70,000 to 80,000 ounces of gold or
approximately 11% of consolidated production using the mid-point of
Equinox Gold's 2022 production guidance of 625,000 to 710,000
ounces of gold. Guidance will be updated when RDM has resumed
operations.
The RDM TSF is raised on an intermittent basis throughout the
mine life to store tailings produced from ongoing operations. The
TSF has been designed and is operated to industry best practices
and is regularly inspected and audited by independent parties and
inspected periodically by Brazilian government regulators. A design
alteration was filed with SUPRAM (State Environmental Agency -
Minas Gerais) in 2017 to change from a centreline to a downstream
design, which is considered the safest construction method, and
since 2018 each raise has been completed using a downstream design.
Permits to raise the TSF using a downstream design were granted in
2019 and 2020. In 2020, the Company requested a raise method
formalization as an addendum to the license to operate, confirming
the change to a downstream design, and in early 2021 SUPRAM granted
the permit to raise the TSF to its current level. In 2021, the
Company applied for a permit for the next TSF raise, which has not
been granted to date.
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 obtain permits, complete the
required TSF raise and resume operations at RDM. Forward-looking
statements or information generally identified by words such as
"ongoing", "can be" and similar expressions and phrases or
statements that certain actions, events or results "will", "may",
"could", 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: the Company's ability to obtain the required
permits for the RDM TSF raise, the Company's history in obtaining
the necessary permits for RDM and its other mines in Brazil, and the Company's ability to complete
the TSF raise and resume operations at RDM. 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: the Company's ability to obtain all necessary permits,
licenses and regulatory approvals in a timely manner or at all,
including for the RDM tailings storage facility raise; the ability
of the Company's contractor to mobilize and complete the TSF raise
in the timeframe anticipated; changes in laws, regulations and
government practices, including environmental laws and regulations;
legal restrictions relating to mining including those imposed in
connection with COVID-19; fluctuations in gold prices; fluctuations
in prices for energy inputs, labour, materials, supplies and
services; and those factors identified in the section titled
"Risks and Uncertainties" in the Company's MD&A dated
May 3, 2022 for the three months
ended March 31, 2022, the section
titled "Risks and Uncertainties" in the Company's MD&A dated
March 23, 2022 for the year ended
December 31, 2021, and in the section
titled "Risks Related to the Business" in the Company's Annual
Information Form dated March 24, 2022
for the year ended December 31, 2021,
all of 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 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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SOURCE Equinox Gold Corp.