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Equinox Gold starts early work after BLM permit milestone for Nevada project
The company said South Railroad is forecast to produce about 104,000 ounces of gold annually over a 10-year life, with initial capital costs of $395 million.
Equinox Gold has begun early works construction at its South Railroad gold project in Nevada after completing a key federal environmental permitting step, putting the project on track for first production in 2028, Mining.com reported.
The U.S. Bureau of Land Management issued a positive record of decision, marking completion of permitting under the National Environmental Policy Act process. Equinox said it has also applied for other state permits and water rights, and noted the decision advanced the project into its next growth phase.
South Railroad is about 700 km northeast of Las Vegas. Equinox expects incremental production from the project to be the first major step toward its goal of adding 800,000 ounces of annual gold production from its organic development pipeline.
According to an updated feasibility study released in January, South Railroad is expected to produce about 104,000 ounces annually over a 10-year life. The open-pit heap leach mine has initial capital costs pegged at $395 million, with a post-tax net present value of $783 million discounted at 5% and an internal rate of return of 48% under assumed gold prices of $3,100 per ounce and silver prices of $36.50 per ounce. Equinox shares rose 1% to $16.25 in Toronto, valuing the company at C$18.8 billion.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%