Early earthworks and access-road construction are advancing at the planned South Railroad gold project in Nevada.
Equinox Gold has received a positive Record of Decision from the U.S. Bureau of Land Management for its South Railroad project in Nevada, completing the project’s federal environmental review and allowing early works construction to move forward.
The decision, issued on Aug. 17, is a significant permitting milestone for the open-pit, heap-leach gold project on Nevada’s Carlin Trend. Equinox said the project remains on track for initial gold production in 2028, although state permits and water rights approvals are still required as development advances.
The federal decision follows the company’s merger with Orla Mining in July and gives Equinox a clearer path to developing what it describes as a key contributor to its organic growth pipeline.
“Receiving the Record of Decision is a major milestone for the South Railroad project and advances our next phase of growth,” Equinox President Jason Simpson said in the company’s announcement.
What the federal decision changes
The Record of Decision concludes the South Railroad permitting process under the National Environmental Policy Act, or NEPA. It represents the BLM’s formal decision on the project’s federal environmental review and clears a central regulatory hurdle for construction.
The approval does not mean every permit required for mine development and operations is complete. Equinox said applications for key state permits and water rights have been submitted and remain part of the next phase of work.
That distinction matters for mine developers. A federal environmental decision can allow project-specific activities under the approved plan, but state-level approvals, water access, construction authorizations and operational permits can still affect the schedule and capital deployment.
South Railroad has been designated a FAST-41 covered project, a federal framework intended to improve coordination and scheduling for major infrastructure and natural-resource projects. The designation has provided a mechanism for federal agencies to coordinate the permitting process, but it does not remove the technical and environmental requirements attached to individual approvals.
According to the Northern Miner’s report, the decision is the first major federal permitting achievement for Equinox since its combination with Orla Mining.
Early works are already underway
Equinox has begun early works at South Railroad, including construction activity associated with site access and civil works.
Work on a north access road outside the BLM Plan of Operations began earlier in the summer in coordination with Elko County. Following the Record of Decision, the company said earthworks and major civil construction activities have commenced.
The remaining 2026 work programme is focused on moving the project from permitting and engineering into full construction readiness. Key activities include:
- Continued earthworks and civil construction.
- Completion of detailed engineering, which was 55.2% complete when Equinox issued its announcement.
- Construction of site roads and power-distribution infrastructure.
- Advancement of the heap-leach pad and process plant design.
- Hiring and onboarding of the site operations team.
- Delivery of initial mining equipment toward the end of 2026.
- Progress on state permits and water rights.
Major contracts for power generation, process-plant equipment, concrete and structural steel have already been awarded, according to the company.
Mining activities are scheduled to begin in spring 2027 after equipment arrives on site. That schedule would allow commissioning and ramp-up activities to proceed ahead of the planned first gold pour in 2028.
Earthmoving, access infrastructure and civil works are central to the project’s transition into construction.
South Railroad project economics
South Railroad is designed as an open-pit heap-leach mine. Ore will be mined from open pits, placed on a lined leach pad and treated with a solution that enables gold recovery before processing into doré.
The project is located within a roughly 25,000-hectare land package along the Carlin Trend, one of the world’s most established gold-producing regions. The broader property has multiple mineralized zones and exploration targets beyond the initial mine plan.
The 2026 feasibility study outlines an initial 10-year mine life. Production is expected to average approximately 130,000 ounces of gold annually during the first five years, before averaging just over 100,000 ounces per year across the full initial mine life.
The project’s main feasibility metrics are summarized below.
| Metric | South Railroad feasibility study |
|---|---|
| Mining method | Open-pit |
| Processing method | Heap leach |
| Ore mined | 66.6 million tonnes |
| Average grade | 0.71 grams per tonne gold |
| Contained gold | 1.52 million ounces |
| Recovered gold | 1.07 million ounces |
| Initial mine life | 10 years |
| Average annual production | 103,756 ounces |
| Average production, first five years | Approximately 130,000 ounces per year |
| Initial capital cost | US$395 million |
| Total cash cost | US$1,207 per ounce |
| All-in sustaining cost | US$1,505 per ounce |
| After-tax NPV at 5% | US$783 million |
| After-tax IRR | 48% |
The feasibility study’s economic case assumes a gold price of US$3,100 per ounce. Equinox’s project overview also identifies an on-site liquefied natural gas power plant, along with power distribution, communications networks, a process plant and ancillary facilities.
Equinox has included approximately US$70 million to US$80 million of South Railroad spending in its updated 2026 guidance. The full initial capital estimate of US$395 million will be deployed over the construction period.
For investors and project analysts, the economics provide a framework for assessing how permitting progress translates into capital requirements, production timing and potential cash flow. Skillings has previously outlined how P-NAV analysis can be used to assess mining project value, although feasibility-study assumptions should not be treated as guarantees of future performance.
What still needs to happen before production
The federal approval reduces one of the most significant regulatory uncertainties, but several execution risks remain.
First, Equinox must obtain the remaining state permits and water rights needed to support construction and mine operations. The timing and conditions attached to those approvals will be important for maintaining the 2027 mining start and 2028 production target.
Second, detailed engineering is not yet complete. At 55.2%, the work has progressed substantially, but final design development remains necessary before all construction packages can be completed and commissioned.
Third, the company must manage procurement and construction across several major systems. The project will require coordinated delivery of mining equipment, power facilities, process-plant components, concrete and structural steel. Delays in any of those areas could affect the construction sequence.
Workforce readiness is another consideration. Equinox is hiring and onboarding the operations team during the second half of 2026, ahead of mining activities scheduled for spring 2027. Training, contractor mobilisation and site safety systems will need to advance alongside physical construction.
Finally, the mine plan remains exposed to changes in gold prices, construction costs, energy costs, labour availability and operating performance. Heap-leach projects can offer relatively straightforward processing compared with more complex flotation or pressure-oxidation operations, but recovery rates, ore characteristics, pad construction and water management remain important operating variables.
Heap-leach pads, process infrastructure and solution-management systems will form the core of South Railroad’s processing circuit.
A new North American growth project
South Railroad is strategically important to Equinox because it adds a Nevada development project to the company’s wider portfolio of gold operations and growth assets across North America and the Americas.
The company has said the project will be the first meaningful contributor toward its target of adding 800,000 ounces of annual gold production from its organic development pipeline. South Railroad’s planned early-phase output of about 130,000 ounces per year would make it a material addition to the company’s production base if the construction and ramp-up schedule is achieved.
The 25,000-hectare land package also gives Equinox exploration exposure beyond the current feasibility study. The company has identified 12 mineralized zones, including oxide and sulfide targets, creating potential for future resource growth. Any expansion would require additional technical, environmental and permitting work and is not included in the current 10-year mine plan.
For now, the immediate focus is execution: completing the remaining approvals, advancing engineering, building site infrastructure and preparing equipment and personnel for mining in 2027.
The Record of Decision moves South Railroad past a major federal permitting barrier. The next test will be whether Equinox can convert that regulatory progress into construction momentum and deliver first gold in 2028.
Engineering, procurement and operational-readiness work will continue as South Railroad advances toward full construction.
Sources: Equinox Gold announcement, South Railroad project overview, and Northern Miner coverage.