Equinox Gold (TSX:EQX) has completed the US federal permitting process for its South Railroad Project, clearing the way for construction of the major open-pit gold mine in Nevada.
The milestone follows the Bureau of Land Management (BLM) issuing a positive Record of Decision for the project, about a year after a Notice of Intent was filed by Orla Mining, which recently merged with Equinox.
South Railroad was also included in the US government’s FAST-41 program, designed to improve coordination and accelerate permitting for major infrastructure projects.
Located along Nevada’s prolific Carlin Trend, South Railroad is planned as a conventional open-pit, heap-leach gold operation.
The mine is expected to have an initial life of 10 years and produce an average of 100,000 ounces of gold annually, including around 130,000 ounces per year during its first five years.
Ore is expected to be extracted from four open pits, two of which will require dewatering and are expected to form pit lakes after mining.
The proposed mine plan covers 8,548 acres (3,459 hectares), including access roads, with about half of the area administered by the BLM.
Construction preparations begin
With federal approval secured, Equinox has started early works in preparation for construction while continuing to pursue key state and water permits in Nevada.
The company had already begun work earlier this summer on the northern access road, outside the BLM Plan of Operations area.
Equinox President Jason Simpson, who recently took on the role following the merger, describes the US$395 million ($555.7 million) project as an important part of the company’s growth plans.
“It will be the first meaningful contributor towards our objective of adding 800,000 ounces of annual gold production from our organic development pipeline,” Simpson says.
Engineering work for South Railroad is currently about 55% complete, according to Equinox.
The company has also awarded major contracts covering power generation, process plant equipment, concrete, and structural steel.
Mining equipment is expected to begin arriving on site by the end of this year, with initial mining activities scheduled to start in spring 2027.
Equinox Gold is a Canadian mining company with a strong foundation of high-quality, long-life gold operations in Canada and across the Americas, and a pipeline of development and expansion projects.
Write to Jackson Chen at Mining.com.au
Image: Orla Mining
