Castle Mountain Phase 2 to expand output to over 200 000 oz/y – Equinox Gold
The Phase 2 expansion of the Castle Mountain gold mine, in California, will increase production to more than 200 000 oz/y, at an all-in sustaining cost of $858/oz, TSX- and NYSE-listed Equinox Gold said on Monday, announcing the results of a feasibility study.
Phase 1 of the mine achieved commercial production in November and is expected to produce about 30 000 oz/y to 40 000 oz/y.
The feasibility study yielded an aftertax internal rate of return of 18% and a net present value, using a 5% discount, of $640-million, using a base case gold price of $1 500/oz. At a $300/oz increase in the gold price assumption, the IRR jumps to 25% and the NPV to $1.1-billion.
Initial capital costs are estimated at $389-million, excluding $121-million for a leased mining fleet. If the fleet is purchased upfront, the capital costs increases to $510-million.
The expansion will generate nearly $2-billion of net cash flow at current gold prices, Equinox Gold CEO Christian Milau said in a statement.
Phase 2 will also provide more than 400 jobs during construction and operations and extend the total mine life to more than 20 years.
“With Phase 1 in operations and Phase 2 permitting under way, Castle Mountain will be a significant economic driver in the region and a long-life cornerstone asset for Equinox Gold,” said Milau.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 15 years, Lilak Aluminium, a trusted leader in architectural extrusion supply, has delivered excellence to businesses like yours.
VISIT SHOWROOM
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
