GREENSTONE – MINING – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) is pleased to provide an update on construction progress at its Greenstone Project in Ontario, Canada. The Greenstone Project is being developed as a 60/40 partnership, respectively, by Equinox Gold and Orion Mine Finance Group and 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 five million ounces of gold over its initial 14-year mine life.
Recent Highlights (at July 22, 2022 unless otherwise noted)
- On schedule – The Greenstone Project is 35% complete and on schedule to pour gold in the first half of 2024.
- On budget – The Greenstone Project remains on budget. At June 30, 2022, 56% of total capital costs had been contracted and Greenstone had spent $315 million (26%) of its $1.23 billion construction budget (100% basis).
- Positive results from Independent Quantitative Risk Assessment – An independent quantitative risk assessment confirmed the validity of the schedule and construction budget based on detailed engineering and construction progress and concluded the Greenstone Project remains on schedule and on budget.
- Earthworks 48% complete – Overall earthworks are well advanced and slightly ahead of schedule. Plant site earthworks are 76% complete, tailings facility earthworks are 29% complete and the Highway 11 realignment earthworks are 39% complete.
- Structural concrete 37% complete and structural steel 21% complete – Structural concrete and structural steel are ahead of schedule and on track to have the majority of buildings essentially complete and ready to enclose by year end so work can continue indoors during the winter months.
- Pre-production mining commencing Q4 2022 – Four CAT 793 (250 tonne) haul trucks have been delivered and are being assembled and the first Komatsu PC-5500 excavator will be assembled during Q3 2022.
Christian Milau, CEO of Equinox Gold, stated: “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.
“Excellent earthworks progress during the winter months means we can focus on concrete foundations and steel structures during the summer and fall and enclose the majority of buildings before year end, which will allow us to maintain productivity during the winter months. We look forward to hosting an investor and analyst tour in September to showcase construction progress.”
Results of Independent Quantitative Risk Assessment
Valency Inc., a global provider of construction project assurance solutions and quantitative risk assessments, recently completed a thorough quantitative risk assessment (“QRA”) of the Greenstone Project schedule, material quantities and cost forecast. Prior to the QRA, the Greenstone Project team completed a full review of the Greenstone Project schedule and cost, including equipment and material delivery dates and construction timelines, key assumptions used in the cost estimate including market trends, and material quantity estimates based on final engineering, which was essentially complete at the end of June. The QRA concluded that the schedule and budget as reported in Equinox Gold’s October 27, 2021 news release remain valid and achievable, and the project remains on track to pour gold in the first half of 2024.
Greenstone Project Progress
Greenstone Project construction progress is summarized below, and a number of construction photos are included toward the end of this news release.
|Area||Progress to Date (at July 22, 2022 unless otherwise noted)|
|Earthworks, Concrete and Steel||
|Total Overall Progress||
|Tailings Facility and Water Management||
|Power Plant and Electrical||
|Mobile Equipment and Mining||
Construction activities during the summer and fall will be focused on earthworks, concrete foundations and steel structures with the intention of having the majority of buildings essentially complete by year end. Process and power plant equipment will be delivered and installed through the remainder of the year and into H1 2023.
Important construction milestones include:
- Independent QRA review of schedule and budget: June 2022
- Process plant steel erection underway: June 2022
- Administration building complete: July 2022
- Delivery and assembly of pre-production fleet of four trucks and excavators: Q2-Q3 2022
- Permanent water effluent treatment plant ready for use: Q3 2022
- Commence installation of gensets in power plant, power building enclosed: Q3 2022
- Start of pre-production mining: Q4 2022
- Truck shop, warehouse, process plant (HPRG, crushing and main buildings) ready to enclose: Q4 2022
- Leach tanks installed: Q4 2022
- Ball mills received: Q1 2023
- Crushers installed: Q3 2023
- TSF complete: Q4 2023
- Highway 11 realignment complete: Q4 2023
- Commissioning: Q1-Q2 2024
- Gold pour: Q2 2024