Name of the Project
Los Filos gold mine expansion.
Location
Mexico.
Project Owner/s
Equinox Gold.
Project Description
A feasibility study on the project was completed 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. It 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 for $65.4-million, construction of the 4 000 t/d CIL plant for $76.3-million, and site infrastructure, including a tailings filtration system, 40 MW substation and transmission line, for $38.1-million.
Planned Start/End Date
Leagold started the expansion project in the third quarter of 2019.
Latest Developments
The union blockade at the Los Filos mine has been removed and access to the mine has been restored, Equinox Gold has reported.
Operations at the mine have resumed, although certain members of the Xochipala community remain camped near the Guadalupe and Bermejal openpits, disrupting mining activities in this area of the operation.
The Los Filos mine has faced several blockades over the years. The latest blockade lasted more than a month.
Key Contracts, Suppliers and Consultants
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
Equinox Gold, email info@equinoxgold.com.