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Equinox Gold suspends Los Filos mine due to blockades

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(Kitco News) - Equinox Gold (TSX: EQX, NYSE American: EQX) announced Tuesday that mining activities at its Los Filos mine in Mexico have been temporarily suspended as the result of illegal blockades by a group of unionized employees and members of the Xochipala community, both of whom are demanding payments in excess of their contractual agreements.

The company said it is working to achieve a long-term solution that will allow the mine to operate effectively.

The Los Filos mine complex began commercial production in 2008 and was acquired by Leagold in 2017. Equinox Gold assumed ownership following its merger with Leagold in March 2020. The operation consists of two open pit mines – Los Filos and Bermejal – and an underground mine at Los Filos. Los Filos is located 180 km south of Mexico City in the municipality of Eduardo Neri, Guerrero State, Mexico.

An independent feasibility study completed for Leagold in March 2019 outlined the potential to increase gold production at Los Filos to more than 400,000 oz/year. Equinox Gold is reviewing and updating the expansion projects at Los Filos, including the potential to build a larger CIL plant.

Equinox Gold is one of the only gold producers of scale operating entirely in the Americas. Equinox Gold has a plan to produce more than one million ounces of gold per year from its existing asset base. The company’s Mesquite, Castle Mountain, Los Filos, Mercedes, Aurizona, Fazenda, and RDM gold mines are in operations, Santa Luz is in construction with Greenstone construction targeted for H2 2021.

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