Equinox Gold (TSX: EQX) has suspended operations at its Los Filos Mine in Mexico after it failed to renew a land access agreement with the nearby community of Carrizalillo that expired at the end of March.
Land access agreements for the Los Filos Mine are required for three communities in the area in order for the mine to operate. Equinox has indicated that new access agreements were entered into with the communities of Mezcala and Xochipala following terms being reached in January and their subsequent ratification. The community of Carrizalillo however has not yet entered into a long term agreement.
Los Filos in 2024 produced 170,369 ounces of gold at all in sustaining costs of $2,185 an ounce. While a major operation within Equinox’s portfolio, the company did not provide guidance on the mine for 2025 as a result of the ongoing land agreements. The signing of the long term agreements is also said to be required before the company decides whether to move forward with the addition of a new 10,000 tpd carbon-in-leach processing plant that would increase recoveries from higher grade ore.
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Equinox in 2025 has guided to production of 635,000 to 750,000 ounces of gold at all in sustaining costs of $1,455 to $1,550 an ounce, figures which exclude Los Filos from the mix.
A timeline for the reopening of the mine was not provided.
Equinox Gold last traded at $9.89 on the TSX.
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