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Aurizona mining contractor mobilising

Equinox Gold (CN:EQX) has appointed the mining contractor for its Aurizona gold project in Brazil as it pushes towards its first gold pour before the end of the year.

Staff reporter

Commodities > Gold-and-silver

Aurizona mining contractor mobilising

Equinox Gold (CN:EQX) has appointed the mining contractor for its Aurizona gold project in Brazil as it pushes towards its first gold pour before the end of the year.

Staff reporter

Aurizona mining contractor mobilising

The existing and planned infrastructure at Aurizona

It said experienced Brazil mining contractor U&M Mineração e Construção S/A was mobilising to site and expected to start mining activity this month.

Cashed-up Equinox formed in December in a three-way merger between Trek Mining, NewCastle Gold and Anfield Gold. 

Its Aurizona construction is fully funded thanks to a US$85 million Sprott credit facility and its treasury of $71 million at the start of this year.

It said the plant refurbishment was substantially complete and the overall project was 30% complete.

The first tailings facility raise was also substantially complete and ready to receive and store water this wet season, ahead of the planned process plant start-up in the fourth quarter.

"Construction remains on track to pour gold by late 2018," Equinox said.

A high-voltage power upgrade is underway and the company has also awarded a contract to SGS Geosol Brazil to supply and operate an on-site assay lab, which it expects will be fully functional by the end of September.

Contractor U&M has more than 40 years' experience and worked on a number of projects in northern Brazil including Vale's massive-scale S11D (BZ:VALE5).

Aurizona is expected to produce 136,000 ounces of gold over an initial 6.5-year mine life at an all-in sustaining cost of US$754/oz, with a modest capex of $130.8 million, according to a 2017 feasibility study by Trek.

Equinox shares are up 2.68% year-to-date, capitalising it at C$486.8 million.

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