Equinox Evaluates Expansion Possibility at Los Filos

The Canadian-based company Equinox Gold announced the production results of its Los Filos mine in Mexico. Results consider both the run-of-mine and crushed-ore heap leach facilities. Development of the leachBermejal Underground deposit continues with the construction of a 10,000t/d carbon-in- (CIL) processing plant. Along with these results, Equinox Gold published its Feasibility Study regarding the expansion of the mine, which will allow its productive life to be extended to 14.5 years for an average annual production of 280,000oz of gold at all-in-sustaining costs of US$1,081 per oz.

Los Filo’s peak production is estimated between 2025 and 2030, averaging 360,000oz of gold per year. The CIL processing plant will start to operate in the second half of 2024. Moreover, total capital expenditure for the plant is estimated at US$318 million. “The Feasibility Study confirms a path to expand Los Filos to a large-scale, long-life gold mine with a substantial reserve and resource endowment and opportunity for further growth. We are pleased with the results of the Feasibility Study. However, we have not made a decision to proceed with the expansion,” said Greg Smith, President and CEO, Equinox Gold.  

On Sept. 8, 2022, the company reported that its Los Filos operations were suspended because of a blockade by inhabitants of the Mezcala community, which impeded the company from receiving supplies essential to its operations. Equinox did not report why the protests were taking place. The company said it considered the blockade to be illegal, but it is nevertheless committed to surrounding communities and open to dialogue.

This is not the first time that Los Filos grapples with blockades. In the past, Equinox Gold has faced both community disputes and unionized worker protests. On Sep. 3, 2020, inhabitants of the El Carrizalillo community blocked access to the mine for two months, as the community argued that the company did not comply with their social collaboration agreement. The situation escalated to President López Obrador, who offered to mediate.

“Any decision to proceed with the Los Filos expansion will be made considering the operating stability in the region, market conditions and availability and cost of capital. Equinox Gold is currently focused on construction of its Greenstone Mine in Ontario, Canada, and advancing the permitting to expand its Castle Mountain Mine in California, USA,” added Smith.