Equinox Gold (TSX, NYSE: EQX)聽has at its $1.23 billion Greenstone Gold Mines project in Ontario, Canada, which is slated to become one of the country鈥檚 largest gold mines, producing more than 400,000 ounces annually for the first five years of operations.聽
Being advanced in a 60/40 joint venture with Orion Mine Finance Group, the complex is made up聽of several claims covering more聽than 105kms (65miles) and is expected to churn out聽more than five million ounces of gold over its initial 14-year life.聽
Greenstone Gold聽Mines聽would聽bring聽more than 240,000 attributable ounces of gold production to Equinox once in operation.聽
The initial capital cost of the project, pegged at C$1.53 billion ($1.23bn), includes聽$125 million聽for the mining fleet, of which roughly $100 million聽could be leased to reduce the upfront cash spend.聽
Equinox said the asset offers expansion potential from underground and near-mine deposits.聽
鈥淓quinox Gold continues to focus on its strategy of sector-leading growth, launching Greenstone Mine development as construction at our聽Santa Luz聽mine in聽Brazil聽is nearing completion,鈥� CEO聽Christian聽Milau聽said in the statement.聽
Attending the聽ground-breaking聽ceremony on Wednesday, Ontario鈥檚 Premier聽Doug Ford聽praised the company for its work聽with Indigenous communities and the government to ready for construction.聽
鈥淭his world-class gold mine聽will create jobs and bring prosperity to the region, and to every corner of our province,鈥� Ford said.聽
Based on Equinox鈥檚 estimates,聽Greenstone Gold聽Mines will create聽800 local and 1,300 regional jobs during construction, with permanent positions pegged at 500 once in聽operation.聽
Boost to Canada鈥檚 gold sector
Early works have been underway since聽March,聽the company said,聽with more than聽$50 million聽of the total budget spent to date. Construction is expected to take two years plus six months of commissioning. Mining聽would start in the last quarter of聽2022, with first gold pour targeted for the first half of 2024.聽
The value of gold production in Canada has more than tripled 鈥� from C$2.8 billion ($2.2bn) in 2008 to C$9.6 billion ($7.8bn) in 2020,聽making the country the world鈥檚 fifth-largest producer of the precious metal. More than 75% of the nation鈥檚 gold is produced in Ontario and Quebec.聽
The country鈥檚 newest gold mine, Red Lake, is also located in Ontario. Commercial operations at the underground asset began in August.