Bullion miner Equinox Gold has started full-scale construction of what will be one of the biggest gold mines in Canada, producing more than 400 000 oz/y for the first five years and 5.05-million ounces over its initial 14-year mine life.

Equinox owns the Greenstone mine, 275 km north-east of Thunder Bay, Ontario, in a 60:40 partnership with Orion Mine Finance Group.

“Greenstone mine will be a cornerstone asset for Equinox Gold and a transformative project for northern Ontario,” Equinox CEO Christian Milau said on Wednesday, hosting a groundbreaking ceremony.

The partners would invest $1.23-billion, including $125-million for the mining fleet, in the Greenstone mining project. This is a higher figure than the initial capital estimate of $953-million in the feasibility study. The company explained that the capital expenditure budget had been updated to reflect firm supplier quotes following detailed engineering, a review and update of capital costs using the current USD:CAD exchange rate of 1.25, and an increased contingency including a provision for future inflation and potential Covid-19 impacts. About 80% of the initial capital is Canadian-dollar based.

Early works have been under way since March, with more than $50-million of the total budget spent to date.

The Greenstone mine plan contemplates construction of a 27 000 t/d processing facility and openpit mining operation for the Hardrock deposit. Mining will use conventional openpit blast, load and haul techniques. While the initial capital budget includes $125-million for mobile equipment, the partners anticipate obtaining lease financing for most of the fleet, which will decrease the initial cash spend.

The project timeline contemplates about two years of construction and six months of commissioning, with mining expected to commence in the fourth quarter of 2022 and first gold pour targeted for the first half of 2024.

During construction, the project will create 800 local and 1 300 regional jobs and once operating, about 500 jobs.

“Greenstone mine will be an economic driver for north-western Ontario and the latest in a series of recent success stories in Ontario’s mining sector—successes that our government is proud to support. This project will bring good paying jobs and prosperity to northern and Indigenous communities in the region,” said Ontario Minister of Northern Development, Mines, Natural Resources and Foresty and Minister of Indigenous Affairs Greg Rickford.

The project has long-term relationship agreements in place with five Indigenous groups: Animbiigoo Zaagi’igan Anishinaabek, Aroland First Nation, Ginoogaming First Nation, Long Lake #58 First Nation and the Métis Nation of Ontario.