Equinox Gold to Start Construction of Gold Mine in Brazil

SEATTLE (Scrap Monster): Canada-based Equinox Gold announced its decision to begin full construction of its wholly-owned gold mine in Brazil. The company plans to invest $103 million in Santa Luz gold mine. The open-pit mine and processing plant was shut down by its previous owner in 2014, after which Equinox Gold had taken over it.

Santa Luz gold mine is expected to produce 903,000 ounces of gold and generate $436 million in net cash flow over the estimated mine life of 9.5 years. In addition, the mine offers potentials for additional upside from underground resources. The mine will start generating significant cash flow to the company in just over a year’s time, said Christian Milau, CEO, Equinox Gold.

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The capital will be allocated towards refurbishing existing infrastructure, retrofitting the plant, installing additional grinding power, and increasing the storage capacities of the existing tailings and water storage facilities. The company plans to begin open-pit stripping in February next year. The modifications and upgrades are expected to complete before the end of 2021. The first gold pour from the mine is expected in Q1 2022.

Recently, the company had poured gold at its Castle Mountain mine in California. The Aurizona mine in Northeastern Brazil had poured its first gold last year.