Equinox Gold (TSX: EQX), which is developing the Greenstone project in Ontario in partnership with Orion Mine Finance Group (60/40), said the overall project is now 35% complete, and the mine is on schedule to pour its first gold in the first half of 2024. The $1.2-billion project also remains on budget, with over half its total capital costs already contracted to date.
Validity of the project's construction progress and budget has been confirmed by an independent quantitative risk assessment based on detailed engineering and construction progress. Prior to the assessment, the Greenstone project team had completed a full review of the Greenstone project schedule and cost.
"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," Christian Milau, CEO of Equinox Gold, commented in a news release.
Overall project earthworks are well advanced and slightly ahead of schedule, as are structural concrete and structural steel. The project is on track to have the majority of its buildings essentially complete and ready to enclose by year-end.
Once complete, Greenstone 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 5 million oz. of gold over its initial 14-year mine life.
Equinox first acquired a 50% interest in the Greenstone project through its acquisition of Premier Gold Mines in late 2020, and acquired an additional 10% from Orion the following April. The 39,000-hectare property is located approximately 275 km northeast of Thunder Bay, Ont., and is host to a number of historic and recently discovered gold deposits near Geraldton.
Other gold mines under construction in Ontario (and elsewhere) have seen capital costs soar in the past year, including Iamgold's (TSX: IMG; NYSE: IAG) C??t?(C) mine and Argonaut Gold's (TSX: AR) Magino.