Equinox pours first gold at Greenstone mine in Ontario
Equinox Gold (TSX: EQX) announced Thursday it has poured first gold at its new Greenstone mine located near Geraldton, Ontario, on schedule. In total, 1,800 oz. of gold were produced from the full recovery circuit.
“We look forward to ramping up to commercial production in the third quarter of this year and delivering sustained value from the Greenstone mine for all our stakeholders,” CEO Greg Smith said in a press release.
Equinox is targeting 90% of the 27,000 tonne-per-day plant capacity by the end of 2024. It has also increased mining rates ahead of first pour and stockpiled 1.5 million tonnes of stockpiled ore by the end of first quarter.
Production at Greenstone in 2025 is expected to total 199,000 oz. at an all-in sustaining cost (AISC) of $879/oz. in the second half, matching its guidance of 175,000-210,000 oz. at $840-$940/oz., BMO said in a note.
When at capacity, the operation is expected to produce approximately 400,000 oz. annually over its first five years, and 360,000 oz. per year over its 14-year mine life. This makes Greenstone one of the largest gold mines in Canada.
In April, Equinox, which owns eight gold mines throughout the Americas, acquired the remaining 40% interest in the mine from Orion Mine Finance for close to C$1.4 billion ($995 million) in cash and shares.
The purchase included C$1.02 billion in cash and 42 million shares valued at C$342.3 million. Equinox financed the acquisition through a new C$684.7 million loan and a C$356 million bought deal equity financing.