Equinox Gold (TSX: EQX) (NYSE American: EQX) has extended the life of its Fazenda mine in Brazil by another seven years following successful exploration in recent years that more than doubled its reserve base.
Located within the Maria Preta district in Bahia state, Fazenda has been operating since 1984 as a combined underground and open pit mine, producing over 3.3 million oz. of gold to date. Equinox assumed its ownership in 2020 with its acquisition of Leagold Mining.
A new reserve estimate issued by Equinox late Tuesday showed a 142% increase in Fazenda’s contained gold to 763,000 oz., enough to support mining to 2033. This increase is net of 242,000 oz. of mining depletion since its previous reserve update in 2021, the Vancouver-based miner said.
In addition, the measured and indicated resource count at Fazenda has risen significantly, up 418% to 1.524 million oz. in contained gold. The average grade of the reserves and resources also increased by 22% and 25%, respectively.
The updated reserves and resources incorporate more than 197,000 metres (1,599 holes) of drilling completed between 2021-2023, as well as additional geotechnical information, updated mining costs and gold price forecasts for the mine design.
“Results from focused exploration at Fazenda over the last three years have exceeded our expectations, delivering significant mine life extension and resource growth net of mining depletion,” Scott Heffernan, EVP exploration of Equinox, stated in the press release.
According to Equinox, the increased drilling density supported an update to the geologic model with significantly improved connectivity between the mineralized horizons, particularly within the Canto unit, that were previously modeled only as isolated, local zones. The updated mine plan includes contributions from nine open-pit and three underground mining areas.
“The success of these efforts now provides a foundation on which to evaluate potential expansion opportunities at the Fazenda mine,” he added. For 2025, the company has already approved a 60,000-metre diamond drill program that will focus on mineral reserve replacement and additional near-mine resource growth.
Future exploration programs will continue to evaluate underground and open pit opportunities in the immediate area of the Fazenda property as well as assess regional potential in the greenstone belt that extends to Equinox’s Santa Luz mine to the north, Heffernan said.
Equinox Gold closed Tuesday’s session 4.1% higher at C$7.59 a share, with a market capitalization of C$3.4 billion ($2.4bn).
