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A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Equinox Gold’s Castle Mountain mine in California has declared commercial production. The open-pit, heap leach operation poured its first gold on Oct. 15 and is expected to generate 5,000 to 10,000 oz. of gold for the company this year. The company completed construction of the asset in mid-September.
In its first, 12,7000 t/d phase, Castle Mountain will churn out approximately 40,000 gold oz. annually. The miner is looking at an expansion of this asset, which could grow its output to 200,000 oz. a year – a feasibility study is expected in the first quarter of next year. This study will look at a 41,000 t/d run-of-mine heap leach, in addition to a carbon-in-leach milling circuit for higher-grade material.
“Achieving commercial production at Castle Mountain is an important step for what will ultimately be a long-life 200,000 ounce per year gold mine, bringing significant benefits to local communities, the State of California and Equinox Gold’s shareholders,” Christian Milau, Equinox Gold’s CEO, said in a release.
With Castle Mountain, Equinox holds seven operating mines in the Americas. In the third quarter, the company sold 128,437 oz. of gold, at all-in sustaining costs of $1,035 per ounce.
(This article first appeared in the Canadian Mining Journal)
