Open-pit gold mining operation in Nevada’s arid Great Basin terrain.
By Charles Pitts
Gold mining news 2026 is being shaped by a major permitting milestone in Nevada, where Equinox Gold has received a federal Record of Decision for its South Railroad project.
The U.S. Bureau of Land Management’s decision completes the project’s federal permitting process under the National Environmental Policy Act, allowing Equinox to advance early works construction at the planned open-pit heap-leach mine. The company is targeting first gold production in 2028.
Equinox said applications for key state permits and water rights have also been submitted. Those approvals remain important steps before the project can move fully into construction and operations.
South Railroad is located in Nevada’s Carlin Trend, one of the world’s most productive gold regions. The project is expected to produce an average of approximately 104,000 ounces of gold annually over an initial 10-year mine life, with output averaging about 130,000 ounces a year during its first five years.
Federal decision opens next construction phase
The BLM’s Record of Decision marks the completion of federal environmental review and permitting under NEPA. South Railroad was also designated as a FAST-41 covered project, a federal framework intended to improve coordination and scheduling for large infrastructure and natural resource developments.
Equinox announced the decision on August 17, saying early works had begun. The company’s board had previously approved the start of construction spending, but the federal decision removes a key regulatory hurdle for the project’s broader development schedule.
Jason Simpson, Equinox Gold’s president, said South Railroad would be the first meaningful contributor to the company’s goal of adding 800,000 ounces of annual production from its organic development pipeline.
“South Railroad is positioned for first gold production in 2028,” Simpson said in the company’s announcement.
For the remainder of 2026, Equinox expects to focus on detailed engineering, workforce development, procurement and civil works. Engineering is approximately 55.2% complete, according to the company.
Major contracts have been awarded for power generation, process plant equipment, concrete and structural steel. Mining equipment is expected to begin arriving at the site toward the end of the year, with initial mining activities scheduled to begin in spring 2027.
Illustrative early works construction in Nevada’s open desert terrain.
South Railroad project metrics
The project is designed as an open-pit mine using heap-leach processing. Ore will be mined from surface benches and placed on a lined heap-leach pad, where a solution will be used to recover gold before processing and refining.
Key figures from the 2026 feasibility study include:
| Metric | South Railroad estimate |
|---|---|
| Mine life | 10 years |
| Proven and probable reserves | 66.6 million tonnes |
| Average grade | 0.71 grams per tonne gold |
| Average annual gold production | 103,756 ounces |
| Average production, first five years | 130,000 ounces per year |
| Initial capital cost | US$395 million |
| Total cash cost | Approximately US$1,207 per ounce |
| All-in sustaining cost | Approximately US$1,505 per ounce |
| After-tax NPV at 5% | US$783 million |
| After-tax IRR | 48% |
| Feasibility-study gold price assumption | US$3,100 per ounce |
| Feasibility-study silver price assumption | US$36.50 per ounce |
The company’s South Railroad project overview reports contained gold of approximately 1.52 million ounces and expected recovered gold of roughly 1.07 million ounces over the initial mine plan.
The economic estimates are based on the feasibility study’s metal-price assumptions and remain subject to the usual development risks, including construction costs, operating performance, permitting, recovery rates, mine scheduling and commodity prices.
Project located on a large Carlin Trend land package
South Railroad forms part of a larger approximately 25,000-hectare land package in Elko County, Nevada. The property extends across roughly 30 kilometres of prospective ground and includes multiple mineralized zones.
Equinox says exploration has identified 12 mineralized zones, including 11 oxide zones and one sulfide zone. The current feasibility study focuses on the mine plan that has been defined for development, while additional exploration could support future resource growth or mine-life extensions.
That exploration potential is not included automatically in the project’s current production forecast. Any expansion would require additional drilling, resource definition, technical studies, permitting and capital allocation.
The Carlin Trend setting provides access to an established mining workforce, service providers and regional infrastructure. However, the project will still require the construction of its own roads, power distribution, communications systems, heap-leach pad, process plant and supporting facilities. The current design includes an on-site liquefied natural gas power plant.
Heap-leach processing infrastructure in a Nevada-style desert environment.
South Railroad expands Equinox’s post-merger pipeline
The permitting milestone comes shortly after Equinox completed its merger with Orla Mining. The combination created a larger North American gold producer with an existing production base and a portfolio of development and expansion projects.
Equinox has identified an organic pipeline capable of adding approximately 800,000 ounces of annual production over time. South Railroad is one of the projects included in that growth strategy, alongside assets such as Castle Mountain in the United States, Valentine Phase 2 in Canada, Los Filos in Mexico and the Camino Rojo underground project.
The company has described the combined portfolio as a route toward more than 1.9 million ounces of annual gold production once the projects are developed and operating in line with their respective technical studies.
South Railroad is expected to make a relatively early contribution to that strategy, with production targeted for 2028. Its planned output is smaller than some of Equinox’s longer-term growth projects, but the project’s location in the United States and its open-pit, heap-leach design make it a significant addition to the company’s North American operating base.
The company’s growth-project portfolio provides additional context on how South Railroad fits within the post-merger development pipeline.
State permits and construction execution remain key tests
The federal Record of Decision does not represent the end of the project’s regulatory process. Equinox has submitted applications for state permits and water rights, and those approvals will be required as development advances.
Construction execution will also determine whether the company can maintain the current 2028 production target. The immediate schedule calls for engineering and procurement work in 2026, equipment deliveries near year-end, mining commencement in spring 2027 and the subsequent construction and commissioning of the processing facilities.
The initial capital estimate of US$395 million includes approximately US$70 million to US$80 million in Equinox’s updated 2026 guidance. Changes in labour, materials, equipment, power infrastructure or construction sequencing could affect the final cost.
South Railroad is also exposed to operating risks common to heap-leach mines. These include ore permeability, recovery performance, water management, leach-cycle timing and variability in grade and mineralogy. The mine plan assumes that the technical parameters in the feasibility study can be achieved during construction and operations.
Equinox’s announcement cautioned that the production schedule, capital cost, permitting timetable and exploration outlook are forward-looking information. The company said actual results could differ because of regulatory delays, legal challenges, financing requirements, supply-chain disruptions, labour availability, gold prices and other factors.
A new U.S. gold development milestone
For Equinox, the BLM decision converts South Railroad from a federally permitted development into a project moving through active construction preparation. The next milestones will be state and water approvals, completion of engineering, delivery of major equipment and the start of mining activities.
If the schedule holds, South Railroad would begin contributing gold production in 2028 and provide Equinox with a new operation in Nevada’s Carlin Trend. Its planned 10-year mine life, US$395 million initial capital requirement and projected annual production of more than 100,000 ounces give the project a defined role in the company’s broader post-merger growth plan.
The outcome will depend on how effectively Equinox manages the transition from federal approval to construction, commissioning and sustained production.
