Equinox Gold gains key federal permit for South Railroad, kicks off early works

AI desk brief

Equinox Gold has cleared a key federal permitting hurdle for its South Railroad project in Nevada, with the BLM issuing a positive record of decision and early works construction now underway. The mine is targeting first production in 2028 and is expected to add about 104,000 oz/year of gold over a 10-year mine life, with initial capital estimated at $395 million.

The updated feasibility study values the open-pit heap leach project at a 5% discount rate at $783 million post-tax NPV and 48% IRR using $3,100/oz gold and $36.50/oz silver, rising to $1.7 billion NPV and 95% IRR at $4,500 gold. South Railroad contains 1.52 million oz of gold and 6.2 million oz of silver in reserves, and the permit progress comes shortly after Equinox’s merger with Orla Mining. For the broader gold market, this is a medium-term supply addition rather than an immediate price driver, but it reinforces the development pipeline in Nevada’s Carlin Trend and could support developer valuations if gold stays elevated.