YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (“Yamana” or “the Company”)
is pleased to announce the first pour of gold and silver doré at
Cerro Moro which occurred on May 15, 2018. The Company is
also pleased to provide several other updates relating to Cerro
Moro including an update on exploration. The Cerro Moro mine
is located in Santa Cruz province, Argentina and is a high-grade
gold and silver operation sourcing ore from a combination of
underground and open pit mining.
The production ramp up of Cerro Moro continues
to track according to plan with commercial production expected in
the second quarter of 2018.
OPERATIONAL OUTLOOK
The following table presents 2018 to 2020
production expectations for Cerro Moro, which are unchanged from
guidance provided earlier in 2018.
|
|
|
|
|
Production (ounces) |
2017 Actual |
2018 Guidance |
2019 Guidance |
2020Guidance |
Gold |
- |
85,000 |
125,000 |
130,000 |
Silver |
- |
3,750,000 |
6,000,000 |
8,300,000 |
|
|
|
|
|
The Company expects most of Cerro Moro’s 2018
production in the second half of the year. With the ramp up
of production underway, the Company is focusing on ensuring mill
throughput rates reach nameplate capacity of 1,000 tonnes per day,
and that grades and recoveries reconcile to plan. As of
current date, ramp up of mining and milling is well on track, with
the major equipment performing to design during usual performance
tests and commencement of operations. While the ramp up
remains the primary focus, efforts are already shifting to
optimizing the operation and, in particular, ensuring that
operating costs reach guidance levels.
The stockpile at Cerro Moro has continued to
increase since year-end 2017 and through the first quarter of
2018. As at May 6, 2018, the stockpile was estimated at
42,300 tonnes at 21.5 grams per tonne (“g/t”) gold and 995 g/t
silver, providing added flexibility to the mine plan for
2018. The operation has reached the planned six weeks of
stockpiled ore, ahead of schedule which was originally the end of
this quarter, and the grades are higher than planned.
The following table presents 2018 cost
expectations for Cerro Moro provided earlier in 2018.
|
|
|
|
|
Total cost of salesper ounce sold |
Co-product cashcosts(1) per unitproduced |
Co-product AISC(1) perunit produced |
|
2017 |
2018E |
2017 |
2018E |
2017 |
2018E |
Gold |
- |
$1,100 |
- |
$510 |
- |
$650 |
Silver |
- |
$15.25 |
- |
$7.10 |
- |
$9.15 |
- Refers to a non-GAAP financial measure or an additional line
item or subtotal in financial statements as described at the end of
this press release. Reconciliations for all non-GAAP financial
measures are available at http://www.yamana.com/Q12018 and in
Section 10 of the Company’s first quarter 2018 Management’s
Discussion & Analysis, which has been filed on SEDAR.
For 2018 and 2019, the Company expects average
co-product cash costs of $500 per ounce gold and $6.70 per ounce
silver, and co-product AISC of $650 per ounce gold and $8.85 per
ounce silver.
CERRO MORO EXPLORATION ACTIVITIES
The exploration program at Cerro Moro and in the
mine district commenced in the second half of 2017 after a two-year
period in which the primary focus was on mine engineering and
construction activities. The Company has set an exploration
objective of adding one million gold equivalent ounces ("GEO") to
the mineral inventory at Cerro Moro in the next several years.
Achieving this goal should provide further options for mine
development including the potential to add a dedicated power line
and reducing production costs.
To this end, the Company has allocated $11.2
million for exploration in 2018 (expanded from $9 million in the
first quarter of 2018). The additional funding will come from
a discretionary portion of the exploration budget that was set
aside at the beginning of the year and is to be allocated to those
mines and assets returning the best results.
The Cerro Moro deposit is located in the Deseado
Massif, which is a tectonic block in the central-portion of the
Santa Cruz Province, covering an area of approximately 60,000 km2.
The deposit consists of a series of low to intermediate
sulphidation veins with high-grade gold-silver mineralization. The
epithermal veins are relatively narrow subverticals with horizontal
width ranging from 0.1 to 5 m, strike length from 100 to 4,000
metres and depth at 300 metres maximum. Twelve zones have
been delineated to date - Escondida, Martina, Zoe, Loma Escondida,
Patricia, Nini Esperanza, Gabriela, Carla, Carlita, Deborah,
Margarita and Veronica. Cerro Moro is located on prospective
ground with significant potential to expand mineral resources and
ultimately extend the life of the operation. Moreover, the
Company has only begun to explore the regional potential of the
284,900 hectare land package and intends to take a systematic
approach toward exploration initiatives to ensure it maximizes the
value potential of Cerro Moro.
The objectives for the 2018 exploration program
are:
- Convert 110,000 GEO of inferred mineral resources to measured
and indicated mineral resources;
- Discover 250,000 GEO of new inferred mineral resources;
and
- Define future drill targets through scout drilling, soil and
rock sampling, and mapping.
Drilling relating to the mineral resource
conversion objective began in the second quarter as planned.
The Company believes that this objective is highly achievable
by year-end.
Set forth below in Table 1 are assays results
received from infill drilling in 2017 after Yamana’s last
exploration update which underpin the mineral resource conversion
goal.
Table 1: Select 2017 infill drilling results,
including all holes completed with results above 5.0 grams per
tonne ("g/t") AuEq. AuEq is calculated as g/t Au + (g/t
Ag)/66.4 (true widths not known at this time).
|
|
|
|
|
|
|
|
HoleNo. |
Target |
From |
To |
Length |
Au (g/t) |
Ag (g/t) |
AuEq(g/t) |
MD2303 |
Nini-Esperanza |
68.0 |
72.0 |
4.0 |
3.98 |
661.7 |
13.9 |
MD2304 |
EFW |
177.75 |
181.3 |
3.55 |
10.89 |
962.8 |
25.4 |
MD2304 |
EFW |
182.7 |
194 |
11.3 |
11.12 |
1465.0 |
33.2 |
MD2309 |
Nini-Esperanza |
33.4 |
37.4 |
4.0 |
2.15 |
255.3 |
6.0 |
MD2310 |
Gabriela |
217.3 |
219.75 |
2.45 |
2.47 |
553.4 |
10.8 |
MD2316 |
EFW |
139.1 |
146.2 |
7.1 |
4.73 |
305.1 |
9.3 |
MD2319 |
EFW |
263 |
265.95 |
2.95 |
11.73 |
773.9 |
23.4 |
MD2321 |
ECE |
157.7 |
160.28 |
2.58 |
9.44 |
16.2 |
9.7 |
MD2325 |
EW |
101.7 |
102.45 |
0.75 |
76.70 |
1960.0 |
106.2 |
MD2325 |
EW |
105.0 |
106.0 |
1.0 |
6.74 |
578.6 |
15.4 |
MD2341 |
EFW |
204.35 |
207.00 |
2.65 |
3.40 |
209.0 |
6.6 |
MD2344 |
Zoe |
307.0 |
310.0 |
3.0 |
3.75 |
200.3 |
6.8 |
MD2348 |
EFW |
222.55 |
223.7 |
1.15 |
2.66 |
189.8 |
5.5 |
MD2362 |
Zoe |
276.25 |
277.89 |
1.64 |
2.86 |
194.1 |
5.8 |
MD2365 |
Zoe |
267.0 |
273.0 |
6.0 |
19.75 |
1392.5 |
40.7 |
MD2365 |
Zoe |
276.0 |
281.5 |
5.5 |
1.95 |
403.0 |
8.0 |
|
|
|
|
|
|
|
|
The Company completed approximately 3,000 metres
in the first quarter of 2018 in support of the second objective of
discovering new inferred mineral resources by year-end. The
majority of this drilling focused on the Veronica vein, which was
discovered in 2017 and is adjacent to existing infrastructure.
While many of the assays are still pending, early results
have been encouraging with highlights presented in Table 2.
Table 2: Select 2018 results from Veronica,
including all holes completed with results above 5.0 grams per
tonne ("g/t") AuEq. AuEq is calculated as g/t Au + (g/t
Ag)/66.4 (true widths not known at this time).
|
|
|
|
|
|
|
|
Hole No. |
Target |
From |
To |
Length |
Au (g/t) |
Ag (g/t) |
AuEq(g/t) |
MD2224Ext |
VeronicaCTB2 |
215.5 |
215.9 |
0.4 |
1105 |
808 |
1,117.20 |
MD2402 |
VeronicaCTB2 |
76.3 |
77.0 |
0.7 |
1.79 |
320 |
6.6 |
MD2402 |
VeronicaCTB2 |
92.5 |
93.7 |
1.2 |
4.77 |
319.2 |
9.6 |
MD2371 |
VeronicaCTB2 |
21.8 |
22.7 |
0.9 |
3.27 |
146.7 |
5.5 |
MD2385 |
VeronicaCTB2 |
71.00 |
72.63 |
1.63 |
9.33 |
594.1 |
18.3 |
MD2389 |
VeronicaCTB2 |
232.5 |
233.2 |
0.7 |
18.45 |
9.3 |
18.6 |
|
|
|
|
|
|
|
|
Table 3 displays assays received from exploratory drilling
completed since Yamana’s last exploration update.
Table 3: Select 2017 results, including all
holes completed with results above 5.0 grams per tonne ("g/t")
AuEq. AuEq is calculated as g/t Au + (g/t Ag)/66.4 (true
widths not known at this time).
|
|
|
|
|
|
|
|
HoleNo. |
Target |
From |
To |
Length |
Au (g/t) |
Ag (g/t) |
AuEq(g/t) |
MD2314 |
BarbaraSouth |
63.4 |
64.6 |
1.2 |
33.51 |
2696.7 |
74.1 |
MD2314 |
BarbaraSouth |
78.2 |
80.0 |
1.8 |
2.17 |
389.4 |
8.0 |
MD2335 |
EsperanzaSplay |
24.4 |
24.8 |
0.4 |
5.95 |
6.8 |
6.1 |
MD2336 |
EsperanzaParallel |
35.1 |
35.5 |
0.4 |
23.90 |
41.9 |
24.5 |
MD2356 |
VeronicaCTB2 |
138.20 |
140.00 |
1.80 |
9.84 |
758.7 |
21.3 |
MD2357 |
VeronicaCTB2 |
150.93 |
151.80 |
0.87 |
11.10 |
11.5 |
11.3 |
MD2366 |
VeronicaCTB2 |
110.00 |
112.00 |
2.00 |
7.92 |
344.5 |
13.1 |
MD2371 |
VeronicaCTB2 |
21.80 |
22.70 |
0.90 |
3.27 |
146.7 |
5.5 |
MD2378 |
Martina |
259.65 |
260.35 |
0.70 |
12.35 |
25.3 |
12.7 |
MD2378 |
Martina |
264.80 |
265.15 |
0.35 |
21.40 |
24.4 |
21.8 |
MD2381 |
VeronicaCTB2 |
75.00 |
87.80 |
12.80 |
35.09 |
1088.3 |
51.5 |
MD2383 |
VeronicaCTB2 |
91.00 |
92.40 |
1.40 |
5.95 |
285.6 |
10.3 |
MD2385 |
VeronicaCTB2 |
71.00 |
72.63 |
1.63 |
9.33 |
594.1 |
18.3 |
MD2386 |
VeronicaCTB2 |
85.00 |
86.00 |
1.00 |
3.76 |
437.0 |
10.3 |
MD2386 |
VeronicaCTB2 |
159.70 |
161.00 |
1.30 |
3.50 |
275.7 |
7.7 |
MD2387 |
VeronicaCTB2 |
152.10 |
152.80 |
0.70 |
13.80 |
629.3 |
23.3 |
MD2389 |
VeronicaCTB2 |
232.50 |
233.20 |
0.70 |
18.45 |
9.3 |
18.6 |
|
|
|
|
|
|
|
|
Drilling received to date has started to define
a near surface open pit high grade target on the west end of the
Veronica vein and has expanded the mineralized zones for Martina,
Barbara South, Esperanza Splay and Esperanza Parallel. Based on
results received to date, the Company believes it will achieve its
second exploration objective to add approximately 250,000 GEO of
new inferred mineral resources by year-end.
In the first quarter of 2018, approximately
4,250 metres of scout drilling was also completed in support of the
objective to define future drill targets. Assays have yet to be
received for the majority of the work completed in the first
quarter, however early results at Tres Lomas are encouraging and
have provided a better understanding to the structural controls of
the vein system, follow up drilling is planned throughout 2018
(notable drill holes are presented in Table 4 below). As well,
visually impressive results were identified at Veronica (120 metres
to the west of the known system), Martina, Esperanza Parallel,
Silvia, Seco and Milagros. Additional targets to be tested with
scout drilling in 2018 are Gabriel NW, La Negrita Edge and
Michelle. Once assays are received for all of these drill holes,
follow up drilling will commence on priority targets. In addition,
a soil grid was completed in the first quarter comprised of more
than 2,200 soil samples focusing on the core mine area.
Geological mapping, surface sampling and the completion of a
geophysical survey are also planned for 2018 to help identify
future targets.
Table 4: Select results from Tres Lomas including all holes
completed with results above 5.0 grams per tonne ("g/t")
AuEq. AuEq is calculated as g/t Au + (g/t Ag)/66.4 (true
widths not known at this time).
|
|
|
|
|
|
|
|
HoleNo. |
Target |
From |
To |
Length |
Au(g/t) |
Ag(g/t) |
AuEq(g/t) |
MD2395 |
TresLomas |
46.38 |
47.33 |
0.95 |
8.11 |
159 |
10.5 |
|
|
|
|
|
|
|
|
Measures have been taken to allow for an
expanded exploration program in 2019. The construction of new core
logging facilities is underway to allow processing of higher
volumes of core and the establishment of a district exploration
team has commenced to establish and develop drill targets away from
the core mine. The focus for the 2019 exploration program will be
to expand on the results of the program from 2018. With a
focus on generating a pipeline of exploration opportunities to
ensure the Company reaches its larger objective of adding one
million GEO in the next several years.
POTENTIAL TO IMPROVE OPERATING COSTS
With the exploration effort to date, the Company
is now considering ahead of original plans investing in a
connection to utility power which would further improve costs.
Additional details on the timing of the
potential investment and subsequent development timeline plus
capital estimates for construction of the necessary infrastructure
are expected once the Company has advanced the opportunity to a
more detailed level of study.
Qualified Persons
Scientific and technical information contained
in this press release relating Cerro Moro has been reviewed
and approved by Henry Marsden (Senior Vice President, Exploration)
and Carlos Bottinelli (Manager, Technical Services). Each of
Messrs. Marsden and Bottinelli is an employee of Yamana Gold Inc.
and a "Qualified Person" as defined by Canadian Securities
Administrators' National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
About Yamana
Yamana is a Canadian-based gold producer with
significant gold production, gold development stage properties,
exploration properties, and land positions throughout the Americas
including Canada, Brazil, Chile and Argentina. Yamana plans
to continue to build on this base through existing operating mine
expansions and optimization initiatives, development of new mines,
the advancement of its exploration properties and, at times, by
targeting other gold consolidation opportunities with a primary
focus in the Americas.
FOR FURTHER INFORMATION PLEASE CONTACT:Investor Relations and
Corporate Communications416-815-02201-888-809-0925Email:
investor@yamana.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains or
incorporates by reference “forward-looking statements” and
“forward-looking information” under applicable Canadian securities
legislation within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
information includes, but is not limited to information with
respect to the Company’s strategy, plans or future financial or
operating performance, including continued advancements at Cerro
Moro. Forward-looking statements are characterized by words such as
“plan,” “expect”, “budget”, “target”, “project”, “intend”,
“believe”, “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur.
Forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and are inherently subject to a variety of
risks and uncertainties and other known and unknown factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. These
factors include the Company’s expectations in connection with the
production and exploration, development and expansion plans at the
Company's projects discussed herein being met, the impact of
proposed optimizations at the Company's projects, changes in
national and local government legislation, taxation, controls or
regulations and/or changes in the administration or laws, policies
and practices, and the impact of general business and economic
conditions, global liquidity and credit availability on the timing
of cash flows and the values of assets and liabilities based on
projected future conditions, fluctuating metal prices (such as
gold, copper, silver and zinc), currency exchange rates (such as
the Brazilian real, the Chilean peso, and the Argentine peso versus
the United States dollar), the impact of inflation, possible
variations in ore grade or recovery rates, changes in the Company’s
hedging program, changes in accounting policies, changes in Mineral
Resources and Mineral Reserves, risks related to asset disposition,
risks related to metal purchase agreements, risks related to
acquisitions, changes in project parameters as plans continue to be
refined, changes in project development, construction, production
and commissioning time frames, unanticipated costs and expenses,
higher prices for fuel, steel, power, labour and other consumables
contributing to higher costs and general risks of the mining
industry, failure of plant, equipment or processes to operate as
anticipated, unexpected changes in mine life, final pricing for
concentrate sales, unanticipated results of future studies,
seasonality and unanticipated weather changes, costs and timing of
the development of new deposits, success of exploration activities,
permitting timelines, government regulation and the risk of
government expropriation or nationalization of mining operations,
risks related to relying on local advisors and consultants in
foreign jurisdictions, environmental risks, unanticipated
reclamation expenses, risks relating to joint venture operations,
title disputes or claims, limitations on insurance coverage and
timing and possible outcome of pending and outstanding litigation
and labour disputes, risks related to enforcing legal rights in
foreign jurisdictions, as well as those risk factors discussed or
referred to herein and in the Company's Annual Information Form
filed with the securities regulatory authorities in all provinces
of Canada and available at www.sedar.com, and the Company’s Annual
Report on Form 40-F filed with the United States Securities
and Exchange Commission. Although the Company has attempted
to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update
forward-looking statements if circumstances or management’s
estimates, assumptions or opinions should change, except as
required by applicable law. The reader is cautioned not to place
undue reliance on forward-looking statements. The forward-looking
information contained herein is presented for the purpose of
assisting investors in understanding the Company’s expected
financial and operational performance and results as at and for the
periods ended on the dates presented in the Company’s plans and
objectives and may not be appropriate for other purposes.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL
RESOURCES
This news release uses the terms “Mineral
Resource”, “Measured Mineral Resource”, “Indicated Mineral
Resource” and “Inferred Mineral Resource” are defined in and
required to be disclosed by National Instrument 43-101.
However, these terms are not defined terms under Industry Guide 7
and are not permitted to be used in reports and registration
statements of United States companies filed with the
Commission. Investors are cautioned not to assume that any
part or all of the mineral deposits in these categories will ever
be converted into Mineral Reserves. “Inferred Mineral
Resources” have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to
assume that all or any part of an Inferred Mineral Resource exists
or is economically or legally mineable. Disclosure of
“contained ounces” in a Mineral Resource is permitted disclosure
under Canadian regulations. In contrast, the Commission only
permits U.S. companies to report mineralization that does not
constitute “Mineral Reserves” by Commission standards as in place
tonnage and grade without reference to unit measures.
Accordingly, information contained in this news release may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and
regulations of the Commission thereunder.
(All amounts are expressed in United States Dollars unless
otherwise indicated.)
A photo accompanying this announcement is available at
http://resource.globenewswire.com/Resource/Download/9a06cec7-7cbe-4965-ac53-12c46e0ffc24
Yamana Gold (NYSE:AUY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yamana Gold (NYSE:AUY)
Historical Stock Chart
From Apr 2023 to Apr 2024