Benzinga | Oct 8, 2020 07:41AM EDT

Equinox Gold Reports Proven, Probable Mineral Reserves Up 28% To 658K Oz. Of Contained Gold Net Of Mining Depletion At Mesquite Gold Mine In California

Equinox Gold Corp. (TSX:EQX) (NYSE:EQX) ("Equinox Gold" or the "Company") is pleased to announce that exploration success during the first half of 2020 has significantly increased Mineral Reserves and Mineral Resources at the Company's Mesquite Gold Mine ("Mesquite") in California, USA.

Highlights

* Proven and Probable Mineral Reserves increased 28% to 658,000 ounces ("oz") of contained gold net of mining depletion to June 30, 2020

* Measured and Indicated ("M&I") Mineral Resources increased 94% to 837,000 oz of contained gold, exclusive of reserves

* Inferred Mineral Resources increased 38% to 703,000 oz of contained gold

* Ongoing exploration continues to demonstrate growth potential at the Brownie deposit; initial drilling highlights include: 35.1 metres ("m") at 0.51 grams per tonne ("g/t") gold; 33.5 m at 0.66 g/t gold; 52.6 m at 0.85 g/t gold; and 44.2 m at 0.58 g/t gold

Scott Heffernan, EVP Exploration of Equinox Gold, stated: "Exploration efforts at Mesquite in the first half of 2020 more than replaced mined reserves and significantly increased mineral resources, providing additional mine life at what has been our best-performing mine this year. Drilling in the Brownie deposit also yielded excellent results and points to potential for a multi-year mine life extension from in-situ mineralization and overlying mineralized dumps."

Mesquite Mineral Reserve Update

Building on the significant improvements achieved in the recent December 31, 2019 Mineral Reserve and Mineral Resource estimates, this mid-year 2020 update includes an additional 10,785 m (77 holes) of bedrock drilling, 36,785 m (661 holes) of drilling targeting historical dumps, and updated geologic and grade-shell domains.

Mesquite Proven and Probable Mineral Reserves at June 30, 2020 are estimated at 37.8 million tonnes ("Mt") grading 0.54 g/t gold for 658,000 oz of contained gold (Table 1, with Imperial units provided in the Appendix to this news release). Net of mining depletion (68,267 oz of Proven and Probable Reserve) during the first half of 2020, the updated Mineral Reserve represents a 28% increase (142,267 oz). The updated Mineral Reserve estimate uses the same design and parameters as the December 31, 2019 estimate. A redesign will commence upon completion of exploration and geotechnical drill programs.

Mesquite Mineral Resource Update

Mesquite Measured and Indicated Mineral Resources at June 30, 2020, exclusive of Mineral Reserves, are estimated at 66.7 Mt grading 0.39 g/t gold for 837,000 oz of contained gold (Table 2, with Imperial units provided in the Appendix to this news release). This represents a 94% increase when compared to the previous Measured and Indicated Mineral Resource estimate of 432,000 oz of gold. Inferred Mineral Resources at June 30, 2020 are estimated at 69.2 Mt grading 0.32 g/t gold for 703,000 oz of contained gold (Table 2), representing a 38% increase compared to the previous estimate of 510,000 oz of gold.

At year-end 2019, the Company had identified approximately 40 million short tons of potentially mineralized material from previous operations that had not been drill tested and the Company initiated a 35,000 m exploration drill program. Drilling in the Big Chief, Midway and Brownie dumps yielded significant gains in Mineral Resources. Indicated Mineral Resources in the dumps have increased more than fourfold to 22.7 Mt grading 0.22 g/t gold for 160,000 oz of contained gold. Inferred Mineral Resources in the dumps have increased 31% to 36.6 Mt grading 0.22 g/t gold for 255,000 contained oz of gold. The increases as noted do not reflect depletion of resource material contained in the 2019 year-end Mineral Resource that has already been stacked on the leach pad.

Table 1: Mesquite Mineral Reserve Estimate at June 30, 2020

Proven Reserves Probable Reserves Proven & Probable Reserves Ore Type TonnesGold ContainedTonnesGold ContainedTonnesGold Contained GradeGold GradeGold GradeGold (kt) (g/t) (kt) (g/t) (kt) (g/t)(koz) (koz) (koz)

Oxide - - - 18,5590.40 239 18,5590.40 239

Transition10 0.98 - 2,968 0.62 59 2,978 0.62 59

Non-oxide 105 1.04 4 16,1730.69 356 16,2780.69 360

Total 115 1.05 4 37,7000.54 654 37,8150.54 658

Notes: This Mineral Reserve estimate has an effective date of June 30, 2020 andis based on the Mineral Resource estimate prepared by Ali Shakar (Lions GateGeological Consulting Inc.) The Mineral Reserve calculation was completed underthe supervision of Gordon Zurowski, P.Eng. (AGP Mining Consultants Inc.), whois a Qualified Person as defined under NI 43-101. Mineral Reserves are statedwithin the final design pit based on a $1,350/oz gold price. The cut-off gradevaried by material type from 0.14 g/t for oxide and oxide-transition and 0.31 g/t for non-oxide materials. The mining cost averaged $1.60/t mined, processingcosts are $2.26/t ore and G&A was $0.77/t ore placed. The gold recoverieswere 75% for oxide and 35% for non-oxide material. Oxide ore includes dumpmaterial identified as reserves.

Table 2: Mesquite Mineral Resource Estimate (Exclusive of Reserves) at June 30, 2020

Measured Indicated Measured & Inferred Indicated Ore Type TonnesGradeGold TonnesGradeGold TonnesGradeGold TonnesGradeGold (kt) (g/t)(koz)(kt) (g/t)(koz)(kt) (g/t)(koz)(kt) (g/t)(koz)

Oxide 5 0.65 0 10,4340.40 133 10,4390.40 133 11,1380.41 145

Non-oxide40 0.40 1 33,5720.50 543 33,6120.50 544 21,3950.44 303

Dumps - - - 22,6950.22 160 22,6950.22 160 36,6540.22 255

Total 45 0.42 1 66,7010.39 836 66,7460.39 837 69,1870.32 703

Notes: Mineral Resources have an effective date of June 30, 2020 and arereported exclusive of Mineral Reserves. Mineral Resources were restrictedbetween the December 31, 2019 Reserve pit designs and the ultimate resourcelimiting pit shell based on a gold price of $1,500/oz, a mining cost of $1.60/tmined, a processing cost of $2.26/t ore and G&A of $0.77/t ore. Oxide and oxidetransition have an assumed recovery of 75% and cut-off grade of 0.09 g/t.Non-oxide and non-oxide transition have an assumed recovery of 35% and cut-offgrade of 0.18 g/t. Waste dump material has an assumed recovery of 75% andcut-off grade of 0.14 g/t. Ali Shahkar P.Eng. of Lions Gate GeologicalConsulting Inc. is the Qualified Person under NI 43-101 responsible for thein-situ mineral resource estimation. Robert Sim, P.Geo. of SIM Geological Inc.is the Qualified Person under NI 43-101 responsible for the waste dump mineralresource estimation. Numbers may appear not to sum properly due to rounding.Mineral Resources are not Mineral Reserves and do not have demonstratedeconomic viability. See Cautionary Notes and Technical Disclosure Statement atthe end of this news release.

Brownie Expansion Drilling Program

Drilling in 2019 provided confirmation that the dump material overlying the Brownie deposit area contains significant gold resources and that in-situ mineralization was present adjacent to and extending from the resource pit. A follow-up 13,897 m drill program was carried out to test the potential to extend mineralization along strike and down dip (Figure 1). Drilling results include highlights of 35.1 m at 0.51 g/t gold, 33.5 m at 0.66 g/t gold, 52.6 m at 0.85 g/t gold, and 44.2 m at 0.58 g/t gold. The results increase confidence in the geological model and highlight the potential for further expansion potential to the north, northwest and southeast of the existing resources (Figure 2).

Figure 1: Mineral Resource and Mineral Reserve Map of the Mesquite Mine with 2020 Drilling

Figure 2: Long Section of Brownie Deposit, Overlying Dumps and Expanded Mineral Resource Facing Northeast