YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or the
“Company”) today provided notice that National Instrument 43-101
technical reports have been filed with Canadian securities
regulators for the Canadian Malartic mine in Quebec, Canada, and
the El Peñón mine in Antofagasta Region, Chile. The new technical
reports, called “NI 43-101 Technical Report, Canadian Malartic
mine, Quebec, Canada” and “NI 43-101 Technical Report, El Peñón
Gold-Silver mine, Antofagasta Region, Chile”, respectively, have an
effective date of December 31, 2020, and are available under
Yamana’s profile on www.sedar.com.
The reports provide technical updates on two of
Yamana’s cornerstone assets and information supporting the mineral
reserves and mineral resources that form the basis for the
Company’s 10-year strategic production outlook presented in
January.
El Peñón
Since the previous El Peñón technical report was
filed three years ago, the operation has gone from strength to
strength. During that time, the Company has continued to
successfully expand the operation’s mineralization footprint,
replace depletion of mineral reserves each year at an average
replacement factor of 130%, and develop a pipeline of mineral
resources and exploration targets to maintain a mine life
visibility of 10 years or more. Since year-end 2017, gold mineral
reserves have increased from 764,000 ounces to 921,000 ounces at
year-end 2020. Silver mineral reserves have increased from 23.6
million ounces to 29.2 million ounces over the same period.
The operation also continues to add to its
mineral inventory in both the measured and indicated and inferred
mineral resource categories. Since year-end 2019, measured and
indicated gold mineral resources increased by 16% to 765,000 ounces
while inferred gold mineral resources climbed by 16% to 850,000
ounces. Measured and indicated silver mineral resources increased
by 17% to 25.5 million ounces over the same period while inferred
silver mineral resources rose by 9% to 28.1 million ounces. El
Peñón has a high conversion factor of mineral resources into
mineral reserves and plans to draw on high conviction mineral
resources that are at mineral reserve grade and located near mine
infrastructure.
Successful development of mineral reserves and
mineral resources has translated into the highest production levels
since the Company rightsized the operation in late 2016. While
production is increasing, costs are decreasing due to the improved
cost structure after rightsizing combined with ongoing cost savings
initiatives, internalization of core mining activities, and
operational improvements. El Peñón, now entering its 22nd year of
operation, continues to generate significant free cash flow.
Looking forward to the next 10 years, the
Company has outlined a production profile of approximately
230,000 gold equivalent ounces (“GEO”) per year at
El Peñón, based on over six years of mineral reserves and
ongoing mineral reserve replacement mostly through infill
drilling on several major veins near existing infrastructure and
mine workings carrying mineral resources at least equivalent to
mineral reserve grade. Continued exploration success would unlock
opportunities to leverage the mine’s existing processing
capacity of 4,200 tonnes per day (“tpd”) to increase
production to approximately 260,000 GEO per year. Minimal capital
investment would be required to achieve the higher processing
rate.
El Peñón has an impressive track record of
incremental mine life extension, and 384,000 metres of drilling is
planned from 2021 to 2023 to continue this trend.
El Peñón has all required permits to continue
carrying out mining and processing operations and sufficient
tailings capacity for current mineral reserves plus an additional
capacity of approximately 18.5 million tonnes.
Canadian Malartic
The previous technical report for Canadian
Malartic was filed in 2014, shortly after Yamana and Agnico Eagle
Mines Ltd. acquired the operation. Since then, Canadian Malartic
has produced four million ounces of gold (100% basis), increased
processing capacity to 57,000 tpd, completed construction of the
Barnat pit extension and highway relocation project, added more
than 0.8 million ounces of underground indicated mineral resource
and 13.5 million ounces of underground inferred mineral resources
(100% basis), and approved construction of the Odyssey underground
project, which is expected to extend the life of the complex to at
least 2039 and produce an average of 545,000 ounces of gold per
year (100% basis) when operating at full capacity beginning in
2029.
Development of the Barnat pit extension was
completed in 2020 and mining will gradually transition from the
Canadian Malartic pit to the Barnat pit. The life-of-mine plan
assumes a nominal processing throughput rate of 57,000 tpd, with
ore from the open pit supplemented with consumption of ore
stockpiles. Based on current mineral reserves, the open pit life of
mine extends to 2028.
The Odyssey project will benefit from synergies
with the existing open pit operation, and utilization of the
existing processing plant and other infrastructure will
significantly reduce risk and minimize capital requirements. The
gradual transition from open pit to underground mining allows for
capital expenditure to be spread over eight years. Proceeds from
the 932,000 ounces of pre-commercial production (100% basis), which
is expected to begin in 2023, will significantly reduce the
external cash requirements for the construction of the project from
C$1,736 million to C$758 million using a gold price assumption of
$1,550 per ounce.
Project enhancement opportunities will continue
to be evaluated as the project advances, including opportunities
for increased conversion of mineral resources and extension of the
higher-grade East Goudie zone, which have the potential to
significantly extend mine life and improve the gold production
profile in the transition from open pit to underground mining.
The Odyssey project mine plan currently includes
0.4 million ounces of the project’s 0.8 million ounces of indicated
mineral resources and 6.9 million ounces of the project’s 13.5
million ounces of inferred mineral resources. In total, the mine
plan supports 7.3 million mineable ounces (100% basis). Lower grade
mineral resources, that fall below cut-off grade when fully diluted
and using a gold price assumption of $1,250 per ounce, are excluded
from the plan. Additional mineral resources are excluded with the
application of a mining recovery factor. Mineral resources from the
Odyssey internal zones are not currently included in the mine plan
due to the increased geological complexity of these zones. Infill
drilling of these zones from underground is planned to increase
geological understanding, which could present opportunities for
additional production during the underground ramp-up period. In
addition, mineral resources from the East Malartic zone at depth
represent another opportunity for future inclusion in the mine
plan, which could extend the life of the underground project.
Infill drilling and additional engineering is required to evaluate
the economic potential of these mineral resources.
For more information on the Odyssey project,
please see the Company’s press release issued February 11, 2021,
titled ‘Yamana Gold Reports Strong Fourth Quarter Results;
Impressive Technical Study Results Delivered for the Odyssey
Underground Project’, available on the Company’s website at
www.yamana.com.
Qualified Persons
Scientific and technical information contained
in this news release has been reviewed and approved by Sébastien
Bernier (P. Geo and Senior Director, Geology and Mineral
Resources). Sébastien Bernier 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 precious metals
producer with significant gold and silver production, 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
expansion and optimization initiatives at existing operating mines,
development of new mines, the advancement of its exploration
properties and, at times, by targeting other 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
FTI Consulting (UK Public Relations)Sara Powell
/ Ben Brewerton+44 7974 201 715 / +44 203 727
1000Email: Yamana.gold@fticonsulting.com
Credit Suisse (Joint UK Corporate Broker)Ben
Lawrence / David NangleTelephone: +44 (0) 20 7888 8888
Joh. Berenberg Gossler & Co. KG (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir
EleziTelephone: +44 (0) 20 3207 7800
Peel Hunt LLP (Joint UK Corporate Broker)Ross
Allister / David McKeown / Alexander AllenTelephone: +44 (0) 20
7418 8900
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 and 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, results of
technical studies, and updates regarding mineral reserves and
mineral resources. 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 Company’s 10-year strategic production outlook and 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 change in the administration of 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, silver, copper and zinc), currency exchange rates (such as
the Canadian Dollar, 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 dispositions, 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, risks associated with infectious diseases, including
COVID-19, 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, 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 plans and objectives in
connection with the mineral projects discussed herein and may not
be appropriate for other purposes.
(All amounts are expressed in United States
Dollars unless otherwise indicated.)
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