Equinox Gold (TSXV: EQX; US-OTC: EQXGF) continues to advance construction at the Aurizona gold mine in northeastern Brazil, with production set to begin later this year. The project is 60% complete, Equinox told investors in its second quarter filings released August 3.
The past-producing open pit mine - which was put on care and maintenance in 2015 due to falling gold prices - will be the company's first operating mine.
The carbon-in-pulp circuit and detox tanks have been refurbished and the newly built semi-autogenous grinding and ball mills and components have arrived on site and are currently being installed. Ore stockpiling has begun in preparation for mill commissioning in the third quarter.
The company is working on a resource update that will incorporate near-mine mineralization found in exploration over the past year. It continues to explore the surrounding area for further mineralization. Measured and indicated resources stand at 20 million tonnes grading 1.57 grams gold per tonne.
The company released a prefeasibility study for its other main project - the Castle Mountain gold mine - on July 16. The existing Californian mine produced more than a million ounces of gold between 1992 and 2004 when, like Aurizona, low gold prices forced its closure.
The project is forecast to generate average annual after-tax net operating cash flow of US$83 million with cumulative life-of-mine after-tax net cash flow of US$865 million. The mine is expected to produce 45,000 oz. gold per year at all-in sustaining costs of US$980 per oz. in years one to three (Phase 1) and 203,000 oz. gold per year at all in-sustaining costs of US$752 per oz. in years four to sixteen (Phase 2).
On June 21, Equinox announced plans to spin out its exploration stage copper assets into a company named Solaris Copper. Equinox Gold shareholders will own 60% of the company, while Equinox Gold itself will own 40%. Solaris Copper will hold a 100% interest in the Warintza copper-molybdenum project in Ecuador, a 60% interest in the La Verde copper-silver-gold project in Mexico, a 100% interest in the Ricardo copper property in Chile and earn-in agreements for two copper prospects in Peru.
This follows the sale of the Koricancha mill in Peru to Inca One Gold (TSXV: IO) for $16.3 million on July 17.
Shares of Equinox Gold are currently valued at $1.05 with a 52-week range of $0.89 to $1.37. The company has a $476 million market capitalization.