Equinox Gold files Castle Mountain report on SEDAR

2018-08-29 12:52 ET - News Release

Mr. Christian Milau reports

EQUINOX GOLD ANNOUNCES FILING OF CASTLE MOUNTAIN NI 43-101 TECHNICAL REPORT

Equinox Gold Corp. has filed a National Instrument 43-101 technical report regarding the prefeasibility study (PFS) and mineral reserve estimate for its 100-per-cent-owned Castle Mountain gold mine located in California, the results of which were announced on July 16, 2018. The technical report is available for download on SEDAR and on Equinox Gold's website.

About Castle Mountain

The Castle Mountain PFS contemplates a low-cost heap leach gold mine with 3.6 million ounces of gold reserves that will produce 2.8 million ounces of gold and generate $865-million (U.S.) in after-tax cash flow over a 16-year mine life. With measured and indicated mineral resources estimated at 4.3 million oz of gold (inclusive of reserves), inferred mineral resources of 2.2 million oz and additional near-mine mineralization identified with the 2017 exploration program, there remains potential to extend the mine life and increase production.

Under the PFS mine plan, Castle Mountain will be developed in two stages with annual average gold production of 45,000 oz over the first three years (stage 1) and annual average gold production of 203,000 oz from years four to 16 (stage 2). Life-of-mine all-in sustaining costs are estimated at $763 (U.S.)/oz, which is in the lowest industry quartile. Capital costs are estimated at $52-million (U.S.) for stage 1 and $295-million (U.S.) for Stage 2, with life-of-mine sustaining capital costs estimated at $142-million (U.S.). Castle Mountain demonstrates strong returns with an after-tax net present value (discounted at 5 per cent) of $406-million (U.S.) and an after-tax internal rate of return of 20 per cent using the base case gold price of $1,250 (U.S.)/oz. Stage 1 ore stacking and commissioning are targeted for year-end 2019.

About Equinox Gold Corp.

Equinox Gold is a Canadian mining company with a multimillion-ounce gold resource base and near-term and growing gold production from two past-producing mines in Brazil and California. Construction is well advanced at the company's Aurizona gold mine in Brazil with the target of pouring gold by year-end 2018, and the company is advancing its Castle Mountain gold mine in California with the objective of commissioning stage 1 operations by the end of 2019.

Qualified persons

The technical content of this news release has been reviewed and approved by the qualified persons under National Instrument 43-101 who were involved with preparation of the PFS: Tim Scott, SME RM of KCA; Todd Wakefield, SME RM of MTS; Don Tschabrun, SME RM of MTS; and Terre Lane, MMSA, SME RM of GRE. David Laing, BSc, MIMMM, Equinox Gold's chief operating officer, and Marc Leduc, PEng, Equinox Gold's executive vice-president of U.S. operations, are QPs under NI 43-101 and have also reviewed, approved and verified the technical content of this news release.

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