All dollar amounts shown in United States dollars unless otherwise
noted
VANCOUVER, BC, July 27,
2022 /CNW/ - Equinox Gold Corp. (TSX: EQX)
(NYSE American: EQX) is pleased to provide an update on
construction 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, producing
more than 400,000 ounces of gold annually for the first five years
and more than five million ounces of gold over its initial 14-year
mine life. Construction progress at Greenstone is documented 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 July
22, 2022 unless otherwise noted)
- On schedule – The Greenstone Project is 35% complete and
on schedule to pour gold in the first half of 2024.
- On budget – The Greenstone Project remains on budget. At
June 30, 2022, 56% of total capital
costs had been contracted and Greenstone had spent $315 million (26%) of its $1.23 billion construction budget (100%
basis).
- Positive results from Independent Quantitative Risk
Assessment – An independent quantitative risk assessment
confirmed the validity of the schedule and construction budget
based on detailed engineering and construction progress and
concluded the Greenstone Project remains on schedule and on
budget.
- Earthworks 48% complete – Overall earthworks are well
advanced and slightly ahead of schedule. Plant site earthworks are
76% complete, tailings facility earthworks are 29% complete and the
Highway 11 realignment earthworks are 39% complete.
- Structural concrete 37% complete and structural steel 21%
complete – Structural concrete and structural steel are ahead
of schedule and on track to have the majority of buildings
essentially complete and ready to enclose by year end so work can
continue indoors during the winter months.
- Pre-production mining commencing Q4 2022 – Four CAT 793
(250 tonne) haul trucks have been delivered and are being assembled
and the first Komatsu PC-5500 excavator will be assembled during Q3
2022.
Christian Milau, CEO of Equinox
Gold, stated: "The Greenstone team has done great work staying on
schedule and on budget, despite the challenges of starting
construction during COVID and dealing with inflationary and supply
chain issues. The independent quantitative risk assessment of our
schedule and construction budget has provided additional comfort
that we're on track to deliver the project as planned in the first
half of 2024.
"Excellent earthworks progress during the winter months means we
can focus on concrete foundations and steel structures during the
summer and fall and enclose the majority of buildings before year
end, which will allow us to maintain productivity during the winter
months. We look forward to hosting an investor and analyst tour in
September to showcase construction progress."
Results of Independent Quantitative Risk Assessment
Valency Inc., a global provider of construction project
assurance solutions and quantitative risk assessments, recently
completed a thorough quantitative risk assessment ("QRA") of the
Greenstone Project schedule, material quantities and cost forecast.
Prior to the QRA, the Greenstone Project team completed a full
review of the Greenstone Project schedule and cost, including
equipment and material delivery dates and construction timelines,
key assumptions used in the cost estimate including market trends,
and material quantity estimates based on final engineering, which
was essentially complete at the end of June. The QRA concluded that
the schedule and budget as reported in Equinox Gold's October 27, 2021 news release remain valid and
achievable, and the project remains on track to pour gold in the
first half of 2024.
Greenstone Project Progress
Greenstone Project construction progress is summarized below,
and a number of construction photos are included toward the end of
this news release.
Area
|
Progress to Date
(at July 22, 2022 unless otherwise noted)
|
Safety
|
- More than 1
million work hours complete (at
July 15, 2022) with no lost-time injuries
- Total Recordable
Injury Frequency rate of 1.46 per 200,000 hours worked
- Site mitigation
protocols for COVID-19 remain robust and effective
|
Budget
|
- Project remains on
budget, as confirmed by recent independent QRA. At June 30,
2022:
- 26% of total cost had been spent
- 56% of total cost had been
contracted
- 28% of total cost had been awarded on a fixed cost
basis
- Inflationary pressures to date have been mitigated
through offsetting savings opportunities and the budgeted
contingency
|
Earthworks, Concrete
and Steel
|
- Earthworks are 48%
complete (including plant site, tailings storage facility,
Goldfield Creek diversion, Highway 11 realignment, water management
infrastructure)
- Structural concrete
is 37% complete
- Structural steel is
21% complete
|
Total Overall
Progress
|
- Overall project is 35% complete and on
schedule to pour gold in the first half of 2024
- Detailed
engineering is essentially complete
- Procurement is 37%
complete
- Construction is 28%
complete
|
Process
Plant
|
- Process plant is
14% complete with major equipment delivery tracking on
schedule
- Concrete placement
is 33% complete, structural steel erection commenced in late June
and is 8% complete
- Near-term focus is
on steel erection and completion of the majority of building
enclosures prior to winter
- Work on underground
services will commence in Q3 2022
|
Tailings Facility and
Water Management
|
- Tailings facility
is on schedule at 29% complete
- Earthworks and fish
habitat for new Goldfield Creek pathway is complete
- Permanent water
effluent treatment plant is on track for commissioning in Q3
2022
|
Power Plant and
Electrical
|
- Power plant is 18%
complete, with concrete foundations scheduled for completion in
August for first genset delivery
- A lump sum contract
for mechanical, piping, electrical and instrumentation has been
awarded on budget
- Connection to the
Enbridge natural gas pipeline is on schedule
|
Site
Infrastructure
|
- Construction
office, administration office, plant site fuel station and reagent
cold storage buildings are complete and operational
- Sewage treatment
plant is on track for commissioning in Q3 2022
- Truck shop and
warehouse are 24% complete and on track for availability in Q4
2022
|
Mobile Equipment
and Mining
|
- Four CAT 793
250-tonne haul trucks have been delivered and are being
assembled
- First Komatsu
PC-5500 excavator will be assembled in Q3 2022
- On schedule to
commence pre-production mining in Q4 2022
- Commitment agreed
on mobile equipment lease financing for $78 million, deferring
approximately $53 million of initial capital spend
|
Infrastructure
Repositioning
|
- Relocation of
Highway 11 is ahead of schedule and 39% complete
- Relocation of
Ministry of Transportation Patrol Yard is 55% complete
- Hydro One
infrastructure relocation is on schedule, major equipment has been
ordered
|
Important Milestones
Construction activities during the summer and fall will be
focused on earthworks, concrete foundations and steel structures
with the intention of having the majority of buildings essentially
complete by year end. Process and power plant equipment will be
delivered and installed through the remainder of the year and into
H1 2023.
Important construction milestones include:
- Independent QRA review of schedule and budget: June 2022
- Process plant steel erection underway: June 2022
- Administration building complete: July
2022
- Delivery and assembly of pre-production fleet of four trucks
and excavators: Q2-Q3 2022
- Permanent water effluent treatment plant ready for use: Q3
2022
- Commence installation of gensets in power plant, power building
enclosed: Q3 2022
- Start of pre-production mining: Q4 2022
- Truck shop, warehouse, process plant (HPRG, crushing and main
buildings) ready to enclose: Q4 2022
- Leach tanks installed: Q4 2022
- Ball mills received: Q1 2023
- Crushers installed: Q3 2023
- TSF complete: Q4 2023
- Highway 11 realignment complete: Q4 2023
- Commissioning: Q1-Q2 2024
- Gold pour: Q2 2024
Additional information about the Greenstone Project, including a
breakdown of the construction budget and expenditures, technical
specifications for the equipment and construction progress, will be
available and updated regularly on Equinox Gold's website at
www.equinoxgold.com.
Equinox Gold Contacts
Christian Milau, Chief Executive
Officer
Rhylin Bailie, Vice President,
Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com
Construction Photos
Figure 1 – Concrete foundations for leach tanks (foreground
left), steel structure for west end process plant (foreground
right), administration building (back right), truck shop (back
centre), power plant (back left)
Figure 2 – Primary and secondary crushers
Figure 3 – Pre-production truck fleet being assembled
Figure 4 – Highway 11 realignment
Figure 5 – Relocated Ministry of Transportation Patrol
Yard
Figure 6 – Site overview
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
ability to work effectively with Orion and with Greenstone's
Indigenous partners, and the Company's expectations regarding
construction timelines and costs for Greenstone, production
capabilities and future financial or operating performance of
Greenstone. Forward-looking statements or information generally
identified by the use of the words "on track", "on schedule",
"remain", "focus", "estimate", and similar expressions and phrases
or statements that certain actions, events or results "will",
"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: prices for gold remaining as estimated;
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 required for the start of production at
Greenstone; 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; no
labour-related disruptions and no unplanned delays or interruptions
in scheduled construction, 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 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; legal restrictions relating to mining
including those imposed in connection with COVID-19; increased
competition in the mining industry; and those factors identified in
the section titled "Risks and Uncertainties" in Equinox
Gold'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
Equinox Gold's Annual Information Form dated March 24, 2022 for the year ended December 31, 2021, both 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, 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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SOURCE Equinox Gold Corp.