Equinox Gold (TSX: EQX; NYSE American: EQX) has announced an extension to the life of its Fazenda mine in Brazil, now expected to continue operations until 2033. This extension follows a series of successful exploration efforts that have more than doubled the mine’s reserve base.
The Fazenda mine, located in the Maria Preta district of Bahia state, has been operational since 1984. It has produced over 3.3 million ounces of gold through a combination of underground and open-pit mining. Equinox assumed ownership of the mine in 2020 following its acquisition of Leagold Mining.
In a reserve update released late Tuesday, Equinox reported a 142% increase in Fazenda’s contained gold, now totaling 763,000 ounces. This increase is after accounting for 242,000 ounces of mining depletion since the last reserve update in 2021. The Vancouver-based company noted that the expanded reserves are sufficient to support mining operations through to 2033.
The update also highlighted a significant rise in the measured and indicated resources at Fazenda, which have surged by 418% to 1.524 million ounces of contained gold. Furthermore, the average grade of both reserves and resources has increased by 22% and 25%, respectively.
The updated estimates incorporate over 197,000 metres of drilling (1,599 holes) conducted between 2021 and 2023. Additionally, the reserves and resources were assessed with new geotechnical data, revised mining costs, and updated gold price forecasts.
Scott Heffernan, Equinox’s Executive Vice President of Exploration, commented on the results, saying, “Focused exploration at Fazenda over the last three years has exceeded our expectations, delivering a significant extension of the mine life and growth in resources, even after accounting for mining depletion.”
The company explained that the increased drilling density had led to a revision of the geological model, with improved connectivity between mineralized zones, particularly within the Canto unit. Previously, these zones were considered isolated but are now linked in the updated model. The new mine plan will involve contributions from nine open-pit and three underground mining areas.
Looking ahead, Equinox has approved a 60,000-metre diamond drilling program for 2025, focusing on replacing mineral reserves and driving further resource growth near the mine. Future exploration will continue to assess both underground and open-pit opportunities within the immediate area of the Fazenda property. Additionally, regional exploration will target the greenstone belt extending northward to the company’s Santa Luz mine.
Equinox Gold’s stock rose by 4.1% to C$7.59 per share at the close of trading on Tuesday, bringing the company’s market capitalization to C$3.4 billion (US$2.4 billion).
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