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Equinox builds multi-mine momentum

New producer Equinox Gold (TSXV: EQX) expects the company’s “tremendous growth” to continue with its Aurizona gold mine in Brazil slated to achieve commercial production around the end of this quarter.
Equinox builds multi-mine momentum Equinox builds multi-mine momentum Equinox builds multi-mine momentum Equinox builds multi-mine momentum Equinox builds multi-mine momentum

Aurizona is expected to achieve commercial production at the end of this quarter

Staff reporter

The Ross Beaty-backed company reported gold production of 26,000 ounces for the December quarter from its recently-acquired Mesquite operating gold mine in California.

Equinox expects to produce 230,000-265,000oz this year from Mesquite and Aurizona at all-in sustaining costs of US$900-$950/oz.

Mesquite is expected to produce more than half of the stated guidance, of 145,000-160,000oz.

"Equinox Gold has achieved tremendous growth over the last year and will soon become a multi-mine gold producer," CEO Christian Milau said.

"This momentum will continue in 2019 as we plan for construction at our Castle Mountain mine, capitalise on growth opportunities at our existing assets and continue to assess accretive acquisition opportunities."

The previously-mined Castle Mountain is about 320km north of Mesquite and is expected to initially produce 45,000oz per annum from 2020, increasing to more than 200,000ozpa during years four to 16.

Equinox said it was completing permitting for phase one and arranging financing in order to start construction mid-year at a cost of about $50 million.

The company reported a cash balance of $60 million (unaudited) with a further $10 million available under the Aurizona construction facility.

It is aiming to become a mid-tier gold producer and last year spun-out its copper assets into a new company called Solaris Copper and sold its stake in the Koricancha mill in Peru to Inca One.

Equinox shares are trading at similar levels to 12 months ago, closing down C2c yesterday to $1.04 to capitalise it close to $539 million.