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The planned earn-in joint venture between Equinox Gold and AngloGold, to be carried out at the Aurizona greenfields concessions in Brazil, has been terminated by AngloGold.
Equinox Gold’s (TSXV:EQX) Brazil-based earn-in joint venture (JV) with AngloGold Ashanti (JSE:ANG) has been terminated by AngloGold, the Canadian miner announced on Monday (August 13).
The JV involved Equinox’s Aurizona greenfields concessions in Brazil, where AngloGold has already spent about US$9 million since exploration started in August 2016. AngloGold also completed more than 43,000 line kilometers of high-resolution aeromagnetic radio magnetic surveying and approximately 10,000 meters of drilling on eight targets, plus extensive geochemistry and geologic mapping surveys.
“AngloGold’s exploration programs have significantly advanced regional geological models and have highlighted several untested targets that warrant further exploration,” said Scott Heffernan, executive vice president, exploration, at Equinox Gold.
“While our current priority in the region is near-mine exploration at the Aurizona gold mine to expand the reserve and resource base, we will continue to review and interpret AngloGold’s exploration data to prioritize regional exploration targets for future drilling, on our own or with a [JV] partner,” he added.
AngloGold put much effort into social engagement, which allowed it to establish strong communication and relationships with local landowners. Equinox Gold will maintain these relationships with the goal of restarting regional exploration efforts in the future.
As per the current reserve model, Aurizona has a mine life of 6.5 years based on reserves identified in the Piaba and Boa Experanca pits. Equinox believes that there is potential for the mine life to be extended with exploration success along strike from existing reserves.
Full-scale construction is currently ongoing at Aurizona, with the target of pouring gold by the end of this year. The mine will be an open-pit operation and will produce around 136,000 ounces a year.
As of 11:45 a.m. EST on Monday, Equinox Gold was down 3.54 percent, trading at C$1.09.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
