Equinox Gold (TSX: EQX) (NYSE American: EQX) has extended the life of its Fazenda mine in Brazil by an additional seven years following successful exploration efforts that more than doubled its reserve base.
Located in the Maria Preta district of Bahia state, the Fazenda mine has been operational since 1984 as a combined underground and open-pit operation, producing over 3.3 million ounces of gold to date. Equinox acquired ownership of the mine in 2020 through its purchase of Leagold Mining.
A new reserve estimate released by Equinox shows a 142% increase in Fazenda’s contained gold, now totaling 763,000 ounces, which is sufficient to sustain mining operations until 2033. This increase accounts for 242,000 ounces of depletion since the last reserve update in 2021.
Additionally, the measured and indicated resource count at Fazenda has surged by 418%, now totaling 1.524 million ounces of contained gold. The average grade of both the reserves and resources also increased by 22% and 25%, respectively.
The updated reserves and resources are based on over 197,000 meters of drilling (1,599 holes) conducted between 2021 and 2023, as well as additional geotechnical data, updated mining costs, and new gold price forecasts.
“Exploration at Fazenda over the last three years has exceeded our expectations, delivering a significant extension of mine life and resource growth, net of mining depletion,” said Scott Heffernan, EVP of exploration at Equinox.
The increased drilling density has improved the geological model, particularly enhancing connectivity between the mineralized zones, especially within the Canto unit, which was previously modeled as isolated zones. The updated mine plan now includes nine open-pit and three underground mining areas.
“This success lays the groundwork for evaluating potential expansion opportunities at Fazenda,” Heffernan added. For 2025, Equinox has approved a 60,000-meter diamond drill program aimed at replacing mineral reserves and expanding resources near the mine.
Future exploration programs will focus on both underground and open-pit opportunities near the Fazenda property, while also exploring regional potential in the greenstone belt that extends to Equinox’s Santa Luz mine to the north, Heffernan noted.
Equinox Gold’s stock closed Tuesday’s session 4.1% higher at C$7.59 per share, with a market capitalization of C$3.4 billion ($2.4 billion).
