Equinox Gold - President and CEO, Christian Milau
President and CEO, Christian Milau
Source: Kitco Metals
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Equinox Gold (TSX:EQX) has received a positive preliminary economic assessment (PEA) for its proposed Piaba underground mine in Brazil
  • The proposed underground mine could net the company C$1.4 billion in revenue over the course of 10-year mine life 
  • Estimates assume some 745,000 ounces of gold could be returned from the mine 
  • All in sustaining costs for the project would be approximately $193 million, with after tax free cash flow totalling $285 million 
  • Equinox Gold (EQX) is up 0.4 per cent, with shares trading for $12.50 and a market cap of $2.69 billion 

Equinox Gold (TSX:EQX) has received a positive preliminary economic assessment (PEA) of its proposed Piaba underground mine in Brazil.

The Piaba underground mine is being developed at Equinox’s wholly-owned Aurizona mine.

The improved mine economics bode well for Piaba, which Equinox say could be operated concurrently with the open pit mine.

The PEA reveals a secondary underground mine at Aurizona could net the company approximately C$1.4 billion in revenue and approximately $285 million in after tax net cash flow.

Piaba has the potential to deliver an additional 745,000 ounces of gold over its 10-year lifetime, along with 2,800 tonnes per day mill feed.

There is an initial expected outlay of approximately $97.5 million, and all in sustaining costs of $193 million for the mine.

The PEA has, it should bet said, assumed a base case gold price of $1,890. That is roughly comparable to the average price for 2019.

The CEO of Equinox Gold Christian Milau said the assessment demonstrates a substantial development opportunity at Aurizona.

“With the potential for expansions to the current open-pit, additions of other near-surface resources and further opportunities for Piazza underground resource expansion at depth and along strike, Aurizona is expected to be a long-life cornerstone asset for Equinox Gold,” he said.

Yamana Gold recently sold out a large portion of its stock in Equinox to two Toronto investment firms, Stifel GMP and Cormack Securities. Yamana sold at a premium of C$10 per share, $1 more than the company’s current share price.

Equinox Gold (EQX) is up 0.4 per cent, with shares trading for $12.50 at 11:49 am EDT. 

More From The Market Herald

" Eastern Platinum (TSX:ELR) sign finance facility agreement with Investec Bank

Eastern Platinum (ELR) has signed a finance facility agreement with Investec Bank.

" Revival Gold Intersects Revival (TSXV:RVG) intersects more gold at Beartrack-Arnett

Revival Gold (RVG) released new results from its 2022 drilling program at the Beartrack-Arnett Gold Project.

" Buscando Resources (CSE:BRCO) announces private placement financing

Buscando Resources (BRCO) announced a non-brokered private placement for gross proceeds of $200,000.
The Market Herald Video

" Dundee Corporation (TSX:DC.A) closes privatization of Big River Gold

Dundee (DC.A) has closed its privatization of Big River Gold with Aura Minerals.