Name of the Project
Los Filos gold mine expansion.

Location
Mexico.

Project Owner/s
Equinox Gold.

Project Description
Leagold completed a feasibility study in March 2019 outlining the potential for development of the Bermejal underground mine, the enlargement of the Los Filos openpit mine, rephasing of the Bermejal openpit into two distinct sections (Bermejal and Guadalupe), and the construction of a 4 000 t/d carbon-in-leach (CIL) processing facility to complement the existing heap-leach facilities. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 0% discount rate, of $752-million. At a 5% discount rate, the project has a pretax NPV of $565-million.

The project has an internal rate of return of 87% and a payback of less than one year.

Capital Expenditure
The expansion project is estimated at $179.7-million and comprises the Bermejal underground mine development at $65.4-million, construction of the 4 000 t/d CIL plant for $76.3-million, and $38.1-million for site infrastructure, including a tailings filtration system, 40 MW substation and transmission line.

Planned Start/End Date
Leagold started the expansion project in the third quarter of 2019.

Latest Developments
The Bermejal underground mine – one of three planned expansion projects at the Los Filos mine – is under way.

Bermejal is a higher-grade expansion project that will increase Los Filos’ yearly production, Equinox Gold CEO Christian Milau has said.

Los Filos has signed an updated social collaboration agreement with the Carrizalillo community with a term until April 2025, as well as certain clarified provisions that will facilitate improved implementation.

Community blockades have periodically hampered production at Los Filos.

Key Contracts, Suppliers and Suppliers
SRK Consulting Canada (Bermejal under­ground mine production, cost estimates and mineral reserves. Overall project risk assessment, implementation and economics, overall report compilation); SRK Consulting US (Los Filos underground, Los Filos, Bermejal and Guadalupe openpit mines production, cost estimates and mineral reserves); SRK Consulting US (heap-leach metallurgical testwork review and interpretations, heap-leach process plant review and cost estimates); Lycopodium Minerals Canada (CIL metallurgical testwork management and interpretation, process plant and related process infrastructure design, process capital and operating cost estimates, risk assessment, project implementation); and Call & Nicholas (Bermejal underground mine geotechnical).

Contact Details for Project Information
Leagold VP investor relations Meghan Brown, tel +1604398 4525 or email mbrown@leagold.com.