YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”)
announces updated mid-year mineral reserve and mineral resource
estimates for the Jacobina mine with mineral reserves, after
depletion from production for the six-month period of 2019, of
2,279,000 ounces of gold, representing an increase of 8.6% versus
year-end 2018. In addition, mineral reserve grade increased by
2.6%, which is a second straight year of mineral reserve grade
increase. From year-end 2017, overall mineral reserve grade has
increased by 5.3%. The mineral reserve estimate and mineral reserve
grade increase provides a stable platform for expanded long-term
production and free cash flow generation.
The Company is also today providing an
exploration update for Jacobina demonstrating strong growth in
total contained and future potential ounces. The Canavieiras and
Morro do Vento areas have yielded excellent new drill intercepts
and are expected to continue providing new resources at higher than
life-of-mine (“LOM”) grades.
Jacobina represents a meaningful and high
quality operation with substantial long life and a significant
production platform, which should further improve with additional
exploration and with a planned phased expansion (see below).
Jacobina is now a significant contributor to Yamana’s net asset
value, EBITDA, cash flow, and free cash flow.
Mineral Reserve Highlights
- Increased proven and probable
mineral reserves to 2.28 million ounces, an 8.6% increase from
year-end 2018, with grade increased to 2.40 grams per tonne (g/t),
representing a 2.6% increase from year-end 2018, and the second
year in a row of mineral reserve grade increases, for an overall
increase of 5.3% since year-end 2017.
Exploration Highlights
- The Canavieiras and Morro do Vento
sectors continue to provide high grade, wide intervals of
mineralization indicating excellent potential for mineral reserve
and mineral resource growth at better than LOM grades.
- The João Belo Sur area has
demonstrated excellent potential for long-term mineral resource
growth immediately adjacent to the existing João Belo mine,
historically the most important producer at Jacobina.
(All amounts are expressed in United States
Dollars unless otherwise indicated.)
Mineral Reserves and Mineral
Resources
The improvement in mineral reserves and reserve
grade in the mid-year updated mineral reserves at Jacobina supports
annual gold production above the 170,000 ounces as previously
guided after the completion of Phase 1 and further supports the
potential of Phase 2, which would see production increase above
225,000 ounces per year. Further information on the Jacobina phased
expansion plan can be found in the Yamana press release issued June
27, 2019, available at www.yamana.com, or by clicking on the
following link.
Jacobina has a strong track record of mineral
reserves replacement with the rate of replacement exceeding the
rate of depletion by more than three times. New mineral reserve
additions are at an average grade of 2.86 g/t and are resulting in
higher quality additions to mineral reserve ounces than the ounces
being depleted from production. New mineral reserves are the result
of infill drilling, contributing 36% of the new mineral reserve
ounces, and the remaining 64% as a result of modelling additional
reefs.
Implementation of the Phase 1 expansion remains
ahead of schedule and the pre-feasibility study (“PFS”) for the
Phase 2 expansion is on track for completion in the first quarter
of 2020.
Figure 1: Jacobina Mineral Reserves
Evolutionhttps://www.globenewswire.com/NewsRoom/AttachmentNg/ee34922b-6b61-42e0-a843-e51f71225a7a
Mineral resources are relatively unchanged from
year-end 2018. However, the total mineral resources do not fully
reflect the exploration and infill drilling success of the past six
months. The Company expects that current infill drilling will
result in improved grades for measured and indicated mineral
resources at year end.
Table 1: Mineral Reserve Statement,
Jacobina
|
Proven Mineral Reserves |
Probable Mineral Reserves |
Total Proven & Probable |
|
|
|
|
|
Tonnage |
Grade |
Contained oz. |
Tonnes |
Grade |
Contained oz. |
Tonnes |
Grade |
Contained oz. |
|
(000's) |
(g/t) |
(000's) |
(000's) |
(g/t) |
(000's) |
(000's) |
(g/t) |
(000's) |
Gold |
19,451 |
2.39 |
1,489 |
10,173 |
2.41 |
790 |
29,588 |
2.40 |
2,279 |
Table 2: Mineral Resource Statement,
Jacobina
|
Measured Mineral Resources |
Indicated Mineral Resources |
Total Measured & Indicated |
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Gold |
28,781 |
2.38 |
2,203 |
13,086 |
2.59 |
1,089 |
41,867 |
2.45 |
3,292 |
|
Inferred Mineral Resources |
|
|
|
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
Gold |
11,998 |
2.58 |
995 |
Mineral Reserve and Mineral Resource
Reporting Notes
Mineral Reserves |
|
Mineral Resources |
The initial design was based on economic cut-off grades by zone,
ranging from 1.12 g/t Au to 1.30 g/t Au. Cut-off grades are
estimated using an average long-term gold price of $1,250 per
ounce, and variable operating costs by zone of between $42.60/t and
$49.52/t. Lower grade stopes were then excluded from the life
of mine plan to optimize the cash flow model. A minimum
mining width of 3.0 metres was used. Bulk density varies from 2.59
t/m3 to 2.68 t/m3. Mineral reserves are stated at a mill feed
reference point and include for diluting material and mining
losses. |
|
Mineral resources are estimated at a cut-off grade of 1.0 g/t of
gold based on a long-term price of $1,500/oz of gold, an average
operating cost of $45.20/tonne, and a total recovery of 96.0%. A
minimum mining width of 1.5 metres was used, and results are
reported inclusive of internal dilution. Composite samples were
generated for each respective mineralized solid. Capping was
applied on the composite data. |
- CIM (2014) definitions were followed for mineral reserves and
mineral resources.
- All mineral resources are reported exclusive of mineral
reserves.
- Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
- Mineral reserves and mineral resources are reported as of June
30, 2019.
- Due to rounding, numbers may not add precisely to the
totals.
- Mineral reserves have been validated by Scott Ladd, (P. Eng.) a
full-time employee of RPA Inc. and a Qualified Person as defined by
National Instrument 43-101. Mineral resources have been validated
by Reno Pressacco, (P. Geo.) a full-time employee of RPA Inc., and
a Qualified Person as defined by National Instrument 43-101.
Exploration Update
For the last two years, exploration at Jacobina
has focused on defining the location and plunge of higher-grade
shoots in the mine to support a grade-based increase in production.
At year-end 2018, Yamana announced a 3% increase in grade over 2017
mineral reserves and the mid-year mineral reserve and mineral
resource update provides a further 2.6% increase in overall mineral
reserve grade. The higher-grade sectors of the mine continue to add
significant mineral resources at the new LOM grades or higher. The
Canavieiras and Morro do Vento sectors have the highest-grade
mineral reserves and these high grade zones continue to grow with
numerous high-grade width intervals adjacent to existing mine
infrastructure. Tables 3 and 4 provide highlights of recent
drilling at Canavieiras and Morro do Vento. For additional details
and complete drill results, refer to the Company’s website at
www.yamana.com or click on the following link.
Table 3: Canavieiras New Drill
Intercepts, Selected for Intervals Greater Than 2.5 g/t Au Over
Diluted Width of 3 Metres
Hole |
Sector |
Including |
From (m) |
To (m) |
Interval (m) |
Estimated True Width (m) |
Gold (g/t) |
CANEX19 |
Central |
|
84.00 |
86.00 |
2.00 |
1.33 |
41.70 |
CANEX20 |
Central |
|
261.60 |
269.27 |
7.67 |
5.15 |
3.79 |
incl. |
262.10 |
265.00 |
2.90 |
1.95 |
8.58 |
|
287.15 |
299.48 |
12.33 |
8.29 |
3.09 |
incl. |
287.15 |
293.50 |
6.35 |
4.27 |
4.33 |
|
315.08 |
322.62 |
7.54 |
5.07 |
7.69 |
incl. |
315.08 |
319.18 |
4.10 |
2.76 |
12.48 |
CANEX21 |
Central |
|
157.00 |
163.00 |
6.00 |
5.13 |
4.82 |
|
237.20 |
242.60 |
5.40 |
4.61 |
14.01 |
CANEX23 |
Central |
|
37.46 |
39.33 |
1.87 |
1.80 |
9.42 |
CANEX24 |
Sul |
|
0.00 |
19.48 |
19.48 |
3.99 |
2.83 |
incl. |
0.00 |
8.24 |
8.24 |
1.69 |
5.19 |
CANEX29 |
Norte |
|
227.50 |
232.00 |
4.50 |
4.03 |
3.86 |
|
170.80 |
185.34 |
14.54 |
11.98 |
5.24 |
CANEX29 |
Norte |
incl. |
177.17 |
185.34 |
8.17 |
6.74 |
6.75 |
CANEX31 |
Central |
|
215.90 |
222.33 |
6.43 |
4.64 |
6.92 |
incl. |
215.90 |
217.46 |
1.56 |
1.53 |
22.44 |
|
228.60 |
231.87 |
3.27 |
2.11 |
6.37 |
incl. |
229.20 |
231.87 |
2.67 |
2.61 |
7.24 |
CANEX33 |
Sul |
|
68.84 |
71.00 |
2.16 |
1.41 |
25.66 |
CANEX34 |
Sul |
|
54.00 |
68.85 |
14.85 |
10.49 |
6.36 |
incl. |
59.50 |
62.00 |
2.50 |
1.77 |
10.00 |
CANEX35 |
Sul |
|
42.34 |
49.25 |
6.91 |
1.60 |
11.40 |
CANEX36 |
Sul |
|
150.91 |
155.55 |
4.64 |
1.28 |
9.16 |
CANEX37 |
Sul |
|
133.71 |
140.82 |
7.11 |
1.37 |
8.12 |
Norte |
incl. |
136.33 |
140.82 |
4.49 |
3.89 |
11.55 |
|
153.00 |
155.55 |
2.55 |
2.21 |
16.32 |
CANEX43 |
Norte |
|
236.37 |
243.56 |
7.19 |
4.34 |
9.13 |
incl. |
238.50 |
243.56 |
5.06 |
3.05 |
12.26 |
Figure 2: LU Reef Long Section
Canavieiras View Looking
Westhttps://www.globenewswire.com/NewsRoom/AttachmentNg/f415808c-8568-4e95-9102-2ee1785a40d2
Table 4: Moro do Vento New Drill
Intercepts, Selected for Intervals Greater Than 2.5 g/t Au Over
Diluted Width of 3 Metres
Hole |
Including |
From (m) |
To (m) |
Interval (m) |
Estimated TrueWidth (m) |
Gold (g/t) |
MVT1617 |
|
137.96 |
139.17 |
1.21 |
1.21 |
38.69 |
|
140.58 |
149.50 |
8.92 |
8.90 |
4.47 |
incl. |
140.58 |
144.00 |
3.42 |
3.41 |
8.93 |
MVT1624 |
|
55.91 |
57.00 |
1.09 |
1.09 |
17.48 |
|
57.25 |
61.00 |
3.75 |
3.74 |
4.57 |
MVTEX25 |
|
186.25 |
193.35 |
7.10 |
6.84 |
2.81 |
MVTEX26 |
|
161.68 |
178.34 |
16.66 |
14.26 |
2.33 |
MVTEX28 |
|
153.63 |
164.87 |
11.24 |
11.19 |
3.14 |
incl. |
153.60 |
158.10 |
4.50 |
4.48 |
5.24 |
MVT1626 |
|
57.16 |
60.50 |
3.34 |
3.17 |
5.90 |
MVT1628 |
|
96.50 |
99.61 |
3.11 |
1.87 |
8.78 |
Figure 3: Main Reef Long Section Morro
do Vento View Looking
Westhttps://www.globenewswire.com/NewsRoom/AttachmentNg/a5ddbafd-27c4-4ac2-ab9f-8b2e8d0cf6af
Exploration continues to ensure the long-term
production profile of the Jacobina mine by consistently adding new
mineral reserves and mineral resources that significantly exceed
production depletion. Several new sectors of the mine complex are
currently being explored. Compilation of data and surface
exploration in the João Belo Sur area shows excellent long-term
potential adjacent to the João Belo mine, historically the most
productive mine in the complex. Drilling is underway from a number
of surface locations to add inferred mineral resources to the mine
inventory.
Figure 4: LMPC Reef Long Section João Belo View Looking
Westhttps://www.globenewswire.com/NewsRoom/AttachmentNg/1e05c995-b6da-491d-afc8-e4e0dff00bde
Qualified PersonsScientific and technical
information contained in this press release has been reviewed and
approved by Henry Marsden (P. Geo. and Senior Vice President,
Exploration). Mr. Marsden 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 YamanaYamana Gold Inc. 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
416-815-02201-888-809-0925Email: 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
exploration, development and operational performance; expanded long
term production and free cash flow generation from Jacobina;
expected new resources at higher than life-of-mine grades;
improvement in mineral reserve and reserve grades at mid-year; the
implementation of Phase 1 expansion and the completion of the
pre-feasibility study for the Phase 2 expansion in the first
quarter of 2020; and new mineral reserves and mineral resources
continuing to significantly exceed production depletion.
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 plans to
continue to build on the Company’s existing base through existing
operating mine expansions, throughput increases, 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; 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, including market conditions, share
price and best use of available cash, 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 plans and objectives in connection with Jacobina and may
not be appropriate for other purposes.
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