Equinox Gold is working through some growing pains at its new Greenstone Gold mine in northwestern Ontario after a slower than anticipated start.
Greenstone, one of Canada’s largest open-pit gold mines, began commercial production last November.
The Vancouver mid-tier gold company said it’s still fine-tuning the ramp-up process at the open pit, south of Geraldton, in releasing its second-quarter financials and performance on Aug. 13. Net income during the quarter was US$23.8 million.
Equinox said it’s entering a “pivotal growth phase” led by Greenstone, one of its anchor mines, but acknowledged that it’s been a “slower-than-planned ramp-up” phase.
During the second quarter, mining rates at Greenstone increased 23 per cent over the first quarter and processing rates improved by 20 per cent.
Management said the momentum is there as they start the third quarter with mining volumes 10 per cent higher than in the second quarter and the processing plant starting to reach full capacity.
Earlier this summer, outgoing president-CEO Greg Smith attributed the slow start at Greenstone to availability of equipment, particularly the lack of primary loading fleet, which impacted mine rates.
New CEO Darren Hall said in a conference call with analysts this week that the necessary equipment is now in place to improve haul speeds and the overall performance. Experts in load and haul experience were brought in along with technical specialists to help with blast performance, among other improvements.
So far this month, the company said mining rates have been around 200,000 tonnes per day, including a one-day peak of 227,000 tonnes.
The grade at Greenstone was lower than expected at 0.92 ounces per tonne during the quarter, but Hall said they’re already seeing improvements this month at about a gram per tonne.
Besides Greenstone in Northern Ontario, Equinox has seven operating mines in California, Nevada, Brazil and Nicaragua. Equinox didn’t break down quarterly production by mine, but posted across-the-board results of more than 219,000 ounces.
The expansion-minded company said it’s poised for significant growth in the third quarter with the closure of its acquisition of Calibre Mining in mid-June, the startup of its Valentine gold mine in Newfoundland–Labrador, and the continued ramp-up at Greenstone.
