YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the
Company”) today announced positive initial drill results at its
Wasamac project in the Abitibi-Témiscamingue Region of Quebec,
Canada, confirming the presence of the Wasa Shear zone to the west
of the main Wasamac zone and expanding the down-dip continuity of
the Wasa Shear in a secondary zone known as Wildcat. These initial
results further align with the objective to sustain 200,000 ounces
per year of production at Wasamac and achieve a strategic mine life
of more than 15 years, which, in turn, aligns with the potential to
increase the Company’s average annual production in Quebec to
approximately 500,000 ounces by 2028 through 2041.
Consistent with the optimization strategy
announced with the positive development decision on Wasamac on July
19, 2021, the Company is advancing an exploration program that
focuses on expanding the current mineral resource envelopes to
depths below the established mineral resource and testing for
mineralization in poorly explored gaps between mineralized zones.
In addition, the exploration program will target the broader
Wasamac property, including the adjacent Francoeur, Arntfield and
Lac Fortune gold deposits (“the Francoeur properties”), and include
an infill program to better delineate mining areas expected to be
developed in the first three years of production.
The Company today also provided an update on its
generative exploration program, announcing the discovery of a
high-grade gold-copper zone at the Lavra Velha project in Brazil
and the expansion of massive sulphide copper, gold, and zinc
mineralization over a greater than two-kilometre strike length at
the Borborema project in Brazil.
The generative exploration program is a key
component of Yamana’s overall organic growth strategy, designed to
advance the Company’s most prospective properties and lay the
foundation for the next generation of Yamana mines. The Company’s
generative work is focused on its large land positions in
mining-friendly jurisdictions in the Americas where Yamana already
has producing mines and deep technical, geological, and operational
expertise. This allows for the rapid advancement of the Company’s
highest value projects while at the same time moving the most
promising early-stage properties up the exploration pipeline. The
generative exploration program thus complements and leverages from
the low-capital organic growth strategy of the Company, which
delivers returns on investment while providing for future
production growth at the Company’s existing operations and
advancing projects.
The main objectives of the generative program
are to add new inferred mineral resources of at least 1.5 million
ounces of gold equivalent and on a longer-term basis advance at
least one project to a mineral inventory that is large enough to
support a mine plan demonstrating positive economics with annual
gold production of 150,000 ounces per year for at least eight
years. Projects are categorized as Tier One, Tier Two, or Tier
Three projects, which are defined as follows:
Tier One |
Projects with well-defined gold mineral resources and opportunities
to grow to a potentially economic threshold in the next three
years |
Tier Two |
Projects that have achieved significant drill intercepts and whose
geology along with other factors support rapid mineral resource
growth |
Tier Three |
Highly prospective projects with known mineralization defined with
rock and soil geochemistry that warrant future drill testing |
While the generative program continues to show
significant progress, exploration activities only began to ramp up
later in 2021 as a result of delays due to COVID-19 in 2020 and
early 2021. While this delay may result in the deferral of the
initial three-year timeline to achieve new inferred mineral
resources of at least 1.5 million ounces of gold equivalent for
some projects in the generative exploration program, the Company
continues to prioritize projects that demonstrate the best
potential for more rapid advancement to a standalone operation that
meets the Company’s long-term objectives. Highlighted herein are
those projects that have made the most substantive advances during
the past year, including the introduction of two new projects to
the program where ongoing surface exploration has shown promising
results: the Falcon project, a Tier 2 project in Santa Cruz,
Argentina; and Las Flechas, a Tier 3 project in San Juan,
Argentina.
All projects in the generative program compete
for exploration funding and, as noted above, the Company
prioritizes projects that have the best chance of advancing rapidly
to a development phase. The generative program currently includes
Lavra Velha at a Tier 1 level. Lavra Velha is the most advanced
project with an inferred mineral resource that contains significant
oxide mineralization and a large land position, which indicate
strong potential to advance towards development. The Company
believes that Lavra Velha has the highest prospect of advancing
quickly through the evaluation and development phases with lower
capital costs. While Monument Bay is another Tier 1 project, it has
not advanced as rapidly as Lavra Velha as a result of the
above-mentioned delays although the Company continues to evaluate
the long-term potential of Monument Bay as an open pit operation,
as originally contemplated, relying on the existing mineral
resources, although also as a higher-grade underground deposit with
deeper drilling targeting high-grade mineralized shoots.
Highlights, Wasamac
- Wasamac (Quebec,
Canada). The Company commenced an aggressive exploration drilling
program early in 2021 to expand the mineral resource envelope and
test exploration targets to depth in poorly tested areas of the
Wasa Shear zone.
- Drill testing in the second quarter
of 2021 confirmed the presence of the Wasa Shear zone west towards
the Horne Creek fault. Further drill testing is ongoing.
- Initial exploratory step out
drilling in the Wildcat zone, a historic shaft and area of past
exploration located approximately 300 metres south of the Wasa
Shear, expanded the down-dip continuity of the known historic zones
that are not included in the current mineral reserve or mineral
resource, underscoring the potential for zones with higher grades
to increase future production and extend mine life.
- Preliminary results from the
Wildcat zone include the following estimated true width intercepts:
3.84 grams per tonne (“g/t”) of gold over 13.25 metres, including
6.40 g/t of gold over 7.10 metres (WS-21-508); 13.03 g/t of gold
over 3.16 metres(WS-21-509); and 5.02 g/t of gold over 11.02
metres, including 10.93 g/t of gold over 2.20 metres, and including
4.47 g/t of gold over 6.57 metres (WS-21-511).
- Within the greater
Wasamac–Francoeur properties, compilation work is underway to
develop and rank new targets. Supporting activity includes the
merging and interpretation of high-resolution airborne magnetics
that now cover the entire property package.
- Yamana has received the required
permits to begin an extensive infill and exploration program on the
main Wasamac orebodies. Infill drilling will begin this month and
accelerate with additional drills being added over the next two
months.
- The initial drilling results
reinforce the Company’s vision for a 200,000-ounce-plus per year
operation with a mine life of at least 15 years.
Highlights, Generative
Program
Tier 1
- Lavra Velha
(Bahia, Brazil). Exploratory drilling below Lavra Velha recently
identified zones of high-grade gold-copper mineralization
associated with potassic alteration below the near surface
mineralized zones.
- Drilling highlights include the
following estimated true width intercepts: 5.49 g/t of gold and
2.49% of copper over 7.85 metres, and 4.56 g/t of gold over 1.02
metres within a wider, 13.50 metre interval, grading 1.89 g/t of
gold (FSW00025). Drilling of both the deeper sulphide
mineralization and further near surface oxide targets is
ongoing.
- Significant new property
acquisitions in 2021 have expanded the property to the southwest,
with excellent surface geochemical results for copper and gold,
generating new drill targets in this extensive mineralized
district.
- Monument Bay
(Manitoba, Canada). Drilling in 2021 has successfully intercepted
the mineralized zone at depth with promising results from the Camp
and Lake shoots.
- Results include estimated true
width intercepts: 2.27 metres grading 7.48 g/t of gold, with 0.39
metres at 29.00 g/t of gold (TL-21-727B); and 6.52 g/t gold over
2.22 metres, within a wider true width interval of 9.73 metres
grading 2.34 g/t of gold (TL 21-732).
Tier 2
- Borborema
(Pernambuco, Brazil). Drilling completed on the high-grade São
Francisco target returned further positive results defining a
mineralized corridor 2.3 kilometres in length.
- Drilling highlights include the
following core length intercepts: 0.26% of copper over 40.15
metres, including 1.02% of copper over 5.16 metres (SF-026); and
0.20 g/t of gold, 1.81% of copper and 0.19% of zinc over 5.00
metres (SF-020).
- Drill holes SF-020 and SF-026 are
located approximately 1.5 kilometres apart along strike, with the
intervening strike length untested. A planned high-resolution
airborne geophysical survey and further geochemical sampling in the
current year are expected to significantly advance existing targets
and identify new gold and polymetallic targets for drill testing on
this highly prospective property.
- Jacobina Norte
(Bahia, Brazil). Drilling is limited to date but extensive surface
work has defined six-kilometre-long sector of conglomerates that
contain significant surface gold mineralization over 1.00 g/t gold,
suggesting excellent potential for the discovery of a standalone
Jacobina-type system.
- Falcon (Santa
Cruz, Argentina). Previous drilling intercepted significant
low-grade mineralization over wide widths from surface, and ongoing
surface work has defined a gold-in-soil anomaly (more than 25 parts
per billion gold) over 1,300-by-500 metres as well as a second
parallel zone that has returned significant gold-in-rock samples
along a 1.2 kilometre trend. The property, located near the
Company’s Cerro Moro operation, demonstrates significant geological
potential.
Tier 3
- Las Flechas (San
Juan, Argentina). Located along the Central Andean Miocene volcanic
belt of Chile-Argentina, one of the most prolific geological
environments globally for large gold and copper systems, and host
to several major gold and gold-copper mines and deposits. The style
of mineralization evident at Las Flechas is consistent with a large
Miocene epithermal to porphyry gold copper system. Ongoing work has
identified new potential sectors with good surface results for
gold-in-rock and soil sampling, defining new drill targets.
- Colider (Mato
Grosso, Brazil). Preliminary results at Colider are supportive of a
fertile geological system with the potential to host epithermal and
porphyry type deposits. Surface work has been completed and
preliminary drill testing will be completed before year-end
2021.
Figure 1: Project Location
Map.https://www.globenewswire.com/NewsRoom/AttachmentNg/43dc3222-bbfe-416d-97b4-7418198358ef
Wasamac
Wasamac is a development-stage underground gold
project located 15 kilometres west of Rouyn-Noranda in the prolific
Abitibi-Témiscamingue region of the mining-friendly province of
Quebec. The project is well located, adjacent to the Trans-Canada
highway and Ontario Northland rail line and 100 kilometres west of
the Company’s 50%-owned Canadian Malartic mine. The project has
proven and probable mineral reserves of 1.91 million ounces of gold
at an average gold grade of 2.56 g/t, with expected average annual
production of 169,000 ounces of gold over an initial mine life of
10 years, and 200,000 ounces per year over four years after
ramp-up. The Company announced a positive development decision on
Wasamac on July 19, 2021. (Please see the press release titled
‘Yamana Gold Announces Positive Development Decision on its
Wholly-Owned Wasamac Project’, available at www.yamana.com).
The Wasamac ore body is an Archean age
shear-related orogenic gold system. Mineralization occurs as a
continuous shear-hosted zone, the Wasa Shear, with consistent grade
distribution and wide mining widths. Gold is associated with
disseminated pyrite within sheared albite-sericite-carbonate
alteration zones and pyrite rich stockwork. The Wasamac, Francoeur,
and Arntfield historic mines have past production of over 720,000
ounces of gold, with Francoeur and Arntfield contributing ounces at
grades of 6.2 g/t and 4.0 g/t of gold, respectively. The
amalgamated Wasamac and Francoeur properties covers 12 kilometres
of the Wasa Shear, with excellent exploration potential, as well as
a number of shear-hosted targets located south of the Wasa Shear
and north of the Cadillac Larder fault zone.
In early 2021, the Company commenced a planned
infill and exploration drilling campaign to generate additional
mineral reserves, expand the current mineral resource envelopes to
depth and in poorly tested areas, and to test extensions of the
Wasa Shear zone, a subsidiary structure of the Cadillac-Larder Lake
tectonic zone. Another key objective is to develop secondary
targets, such as the Wildcat zone, on the broader Wasamac property.
Exploration expenditures for 2021 and 2022 are estimated at $15
million with 120,000 metres of drilling planned. Infill drilling
will include at least 68,000 metres and the balance will be
exploration drilling, both on the Wasamac and Francoeur projects.
The program is anticipated to ramp up to four drill rigs by late
2021.
Exploratory drilling on satellite targets was
initiated at Wasamac in the second quarter of 2021. An initial two
drill holes tested for the extension of the Wasa Shear zone towards
the Horne Creek fault, confirming the presence of the shear zone
and this area. This target will be tested further in ongoing
drilling. Drilling was also initiated at the Wildcat zone, an
historic shaft and area of past exploration located approximately
300 metres south of the Wasa Shear. Initial exploratory step out
drilling at this target expanded the down-dip continuity of the
known historic zones that are not included in the current Wasamac
mineral reserve or mineral resource, underscoring the potential to
advance zones of higher grade and significantly increase future
production and extend mine life, close to planned mine
infrastructure, consistent with the Company’s objective of
sustaining a production level of 200,000 ounces per year and
extending the strategic mine life to more than 15 years.
Highlights from initial drilling at Wildcat
include the following uncut estimated true width intercepts: 1.65
g/t of gold over 14.91 metres, including 3.07 g/t of gold over 2.56
metres, and 3.68 g/t of gold over 2.57 metres (WS-21-504); 3.84 g/t
of gold over 13.25 metres, including 6.40 g/t of gold over 7.10
metres (WS-21-508); 3.16 g/t of gold over 5.35 metres, including
5.96 g/t of gold over 2.45 metres, and 13.03 g/t of gold over 3.16
metres (WS-21-509); and 5.02 g/t of gold over 11.02 metres,
including 10.93 g/t of gold over 2.20 metres, and 4.47 g/t of gold
over 6.57 metres (WS-21-511). Mineralization is associated with
quartz-carbonate-albite-pyrite-hematite veinlets, veining and
stockwork zones, and disseminated and vein-hosted sulphide
mineralization with rare visible gold hosted by zones of strongly
altered, sheared and brecciated gabbro and mafic to intermediate
dykes and volcanic units. The zone is currently interpreted to
follow a northeast trending shear zone but individual vein
orientations vary and modelling remains in progress. See Table 1
and Figures 2 and 3 for further details.
Within the greater Wasamac–Francoeur properties,
compilation work is underway to develop and rank new targets.
Supporting activity includes the merging and interpretation of
high-resolution airborne magnetics that now cover the entire
property package. Yamana has received the required permits to begin
an extensive infill and exploration program on the main Wasamac
orebodies. Infill drilling will begin this month and accelerate
with additional drills being added over the next two months.
The initial drilling results reinforce the Company’s vision for
a 200,000-ounce-plus per year operation with a strategic mine life
of at least 15 years. Building on the initial mineral reserve mine
life of 10 years, as outlined in the recently completed feasibility
study, the internal 15-year strategic mine plan incorporates a
portion of the 326,000 ounces of indicated mineral resources and
258,000 ounces of inferred mineral resources, which are expected to
be converted to mineral reserves through infill drilling and
additional engineering. The balance of the 15-year production
profile is based on a conservative estimate of exploration
potential including extension of the Wasa Shear at depth and along
strike and inclusion of satellite deposits outside of the core
mineral reserves footprint, of which the Wildcat zone is just the
first of many exploration targets that the Company will test in the
coming months and years. At minimum, conversion of mineral
resources and exploration potential is expected to extend mine life
and sustain a gold production profile of approximately 200,000
ounces per year. A possible upside is that the added mineralization
could be higher grade than the current average mineral reserve
grade of 2.56 g/t, which would unlock opportunities to increase
feed grade and raise annual production beyond 200,000 ounces per
year. The grades from initial drilling results at Wildcat and
historic mining grades from the Francoeur properties are positive
indicators in this regard.
Extending the Wasamac mine life from 10 to 15 years, and
sustaining a gold production rate of 200,000 ounces per year, would
have a significant impact on the value of the project. Using only
mineral reserves, the feasibility study 10-year mine plan delivers
robust economics with a post-tax net present value (“NPV”) of
$254.4 million at a 5% discount rate and internal rate of return
(“IRR”) of 16.1% at the base case assumptions of $1,550 per ounce
of gold and a 1.28 Canadian-US dollar exchange rate. At a gold
price of $1,850 per ounce, NPV and IRR increase to $469.6 million
and 24%, respectively. The 15-year strategic plan is estimated to
more than double the NPV from the feasibility study scenario,
resulting in an NPV of $850 million to $900 million using a gold
price assumption of $1,850 per ounce.
Table 1: Wasamac Project, 2021 Drilling Highlights for
Intervals Greater Than 5.0 Gram*Metres (Gold g/t Uncut Multiplied
by Estimated True Width in Metres).
Hole |
Including |
From (m) |
To (m) |
Core Length (m) |
Est. True Width (m) |
Gold* (g/t) |
Gold - cut (30 g/t) |
Metal Factor - Gold (g/t) x Est. True
Width (m) |
WS-21-503 |
|
112.80 |
119.50 |
6.70 |
5.13 |
1.73 |
|
8.87 |
|
155.28 |
162.30 |
7.02 |
4.51 |
1.14 |
|
5.14 |
|
209.36 |
217.80 |
8.44 |
6.47 |
1.14 |
|
7.38 |
WS-21-504 |
|
191.20 |
212.28 |
21.08 |
14.91 |
1.65 |
|
24.60 |
Incl. |
191.75 |
195.37 |
3.62 |
2.56 |
3.07 |
|
7.86 |
and |
208.65 |
212.28 |
3.63 |
2.57 |
3.68 |
|
9.46 |
WS-21-505 |
|
135.82 |
145.90 |
10.08 |
7.13 |
1.57 |
|
11.23 |
Incl. |
135.82 |
138.90 |
3.08 |
2.18 |
3.76 |
|
8.20 |
|
186.37 |
193.80 |
7.43 |
5.69 |
1.32 |
|
7.53 |
WS-21-507 |
|
188.28 |
202.30 |
14.02 |
8.14 |
1.91 |
|
15.55 |
Incl. |
188.28 |
194.50 |
6.22 |
4.00 |
2.05 |
|
8.20 |
and |
198.60 |
202.30 |
3.70 |
2.12 |
3.75 |
|
7.95 |
WS-21-508 |
|
45.66 |
61.84 |
16.18 |
13.25 |
3.84 |
|
50.88 |
Incl. |
45.66 |
53.86 |
8.20 |
7.10 |
6.40 |
|
45.44 |
and |
60.71 |
61.84 |
1.13 |
0.87 |
5.95 |
|
5.18 |
WS-21-509 |
|
54.33 |
61.32 |
6.99 |
5.35 |
3.16 |
|
16.88 |
Incl. |
54.33 |
57.53 |
3.20 |
2.45 |
5.96 |
|
14.61 |
|
93.65 |
97.30 |
3.65 |
3.16 |
13.03 |
9.69 |
41.18 |
|
120.59 |
126.13 |
5.54 |
3.56 |
2.16 |
|
7.69 |
WS-21-511 |
|
68.60 |
90.64 |
22.04 |
11.02 |
5.02 |
3.91 |
55.32 |
Incl. |
68.60 |
73.00 |
4.40 |
2.20 |
10.93 |
5.39 |
24.05 |
|
77.50 |
90.64 |
13.14 |
6.57 |
4.47 |
|
29.37 |
WS-21-512 |
|
61.94 |
66.77 |
4.83 |
3.10 |
1.96 |
|
6.08 |
|
107.06 |
112.44 |
5.38 |
3.46 |
3.26 |
|
11.28 |
Incl. |
109.80 |
112.44 |
2.64 |
1.70 |
5.76 |
|
9.79 |
Figure 2: Wasamac Project, Plan Map of Wildcat Target
Area Showing 2021 Drilling
Highlights.https://www.globenewswire.com/NewsRoom/AttachmentNg/8957b66c-0693-4c54-89d3-0897536d2010
Figure 3: Wasamac Project, Oblique Longitudinal and
Cross Section Views of the Wildcat Target Area Showing Historical
and 2021 Drilling
Highlights.https://www.globenewswire.com/NewsRoom/AttachmentNg/596c12af-5599-4759-a402-9587c33ddabc
TIER ONE PROJECTS
Lavra Velha
Lavra Velha is an advanced-stage exploration
project located on a 62,000-hectare land package in Brazil’s Bahia
state, a mining-friendly jurisdiction that is also home to Yamana’s
Jacobina mine. Lavra Velha is located about 300 kilometres from
Jacobina and could share potential synergies with the mine
administration and overhead. The generative exploration program has
already identified inferred mineral resources at Lavra Velha of
3.93 million tonnes at 4.29 g/t of gold for 543,000 ounces of goId,
which represents one-third of the 1.5 million ounces of inferred
mineral resources being targeted by the Company under the
generative exploration program.
Exploration continues to generate and test new
and existing advanced prospective areas within and around the Lavra
Velha deposit with the aim of defining new shallow oxide
mineralization and exploring for new mineral discoveries in the
district. The Lavra Velha and Lavra Velha SW deposits are hosted by
northeast-southwest trending low-angle ductile-brittle structures
that play an integral role in localizing mineralization on the
property, and which provide a first-order guide to exploration
along trend and to depth.
Exploratory drilling targeting the down-dip
continuity of these systems has intercepted high-grade gold-copper
mineralization related to a sulfide rich zone below the Lavra Velha
SW deposit. Drilling highlights from this area include the
following estimated true width intercepts: 5.49 g/t of gold and
2.49% of copper over 7.85 metres, and 4.56 g/t of gold over 1.02
metres, within a wider 13.50-metre interval, grading 1.89 g/t of
gold (hole FSW00025, starting at 166.11 metres down hole). The
mineralized interval, represented by iron-oxide and sulfide-rich
breccia bodies and associated potassic hydrothermal alteration,
opens up a significant new high-grade gold-copper target for
exploration below shallow oxide gold mineralization on the
property. Additional drilling is in progress. See Figure 4 and
Table 2 for additional details.
At Anomalia Central, located 2.5 kilometres
south of the Lavra Velha deposit, exploratory drilling intercepted
a wide zone of strong sericitic alteration corresponding with
surface gold geochemical anomalies in proximity to a second
northeast striking low-angle fault structure. Initial drilling
returned the following estimated true width intercept: 1.08 g/t of
gold over 3.14 metres, including 4.52 g/t of gold over 0.72 metres
(starting at 78.80 metres down hole) in drill hole FLV00169. These
results highlight the presence of a large, structurally-controlled
mineralized system with potential for the discovery of significant
shallow oxide mineralization in this sector. See Figure 4 and Table
2 for additional details.
At the Matinos District, located approximately
48 kilometres south of the Lavra Velha deposit, recent exploration
has focused on the advancement of a portfolio of prospective
mineral concessions totaling 9,330 hectares in nine exploration
permits acquired through auction from the Brazilian Mining Agency’s
public tender process. Geologically, these concessions are located
within a Proterozoic granite terrain, a similar geological context
to the Lavra Velha District. Initial field work, including surface
rock and soil sampling, has identified new anomalies represented by
clusters of rock samples having greater than 1.00 g/t of gold and
corresponding with zones of strong hydrothermal alteration, iron
oxide, quartz veining and sulfides, which are similar features to
those found at the Lavra Velha and Lavra Velha SW deposits. Several
sectors have been identified including Manga Grande, Pinha Preta,
and Alvinopólis which may be tested in future drilling campaigns.
See Figure 5 for further details.
The significant exploration advances at Lavra
Velha during the reporting period, including the discovery of
high-grade gold-copper mineralization below Lavra Velha SW, the
identification of important shallow oxide gold mineralization in
new drilling at the Anomalia Central target, and the addition of a
large, prospective land package with developing drill targets
underscore the excellent upside potential of the project.
Figure 4: Lavra Velha Plan Map Showing Geology, Lavra
Velha and Lavra Velha SW Deposits, and 2021 Drilling Highlights, as
Discussed in
Text.https://www.globenewswire.com/NewsRoom/AttachmentNg/dbda8c62-d412-4112-876b-c73432e9338f
Figure 5: Plan Map of Key Regional Geology Features,
Main Targets and Surface Rock Gold Geochemistry, Lavra Velha and
Matinos
Districts.https://www.globenewswire.com/NewsRoom/AttachmentNg/a083aeb3-d3c6-465b-8601-88ecfb52e9a1
Table 2: Lavra Velha 2021 Drilling Highlights for
Intervals Greater Than 3.0 Gram*Metres (Gold g/t Multiplied by
Estimated True Width in Metres).
Hole |
Sector |
Including |
From (m) |
To (m) |
Core Length (m) |
Est. True Width (m) |
Gold (g/t) |
Copper (%) |
Type |
FLV00169 |
Anomalia Central |
|
78.80 |
81.94 |
3.14 |
3.14 |
1.08 |
0 |
Oxide |
Incl. |
78.80 |
79.52 |
0.72 |
0.72 |
4.52 |
0 |
Oxide |
FSW00025 |
Lavra Velha SW |
|
166.11 |
194.20 |
28.09 |
13.50 |
1.89 |
0.90 |
Sulfide |
Incl. |
174.16 |
175.18 |
1.02 |
1.02 |
4.56 |
0 |
Sulfide |
and |
180.00 |
188.05 |
8.05 |
7.85 |
5.49 |
2.49 |
Sulfide |
FSW00027 |
Lavra Velha SW |
|
243.57 |
249.50 |
5.93 |
5.75 |
0.60 |
0 |
Sulfide |
FSW00028 |
Lavra Velha SW |
|
97.61 |
102.00 |
4.39 |
4.39 |
1.05 |
0 |
Oxide |
Incl. |
100.00 |
101.00 |
1.00 |
1.00 |
3.61 |
0 |
Oxide |
FSW00029 |
Lavra Velha SW |
|
258.68 |
270.22 |
11.54 |
10.50 |
0.53 |
0 |
Sulfide |
Incl. |
258.68 |
259.24 |
0.56 |
0.56 |
6.74 |
0 |
Sulfide |
and |
269.72 |
270.22 |
0.50 |
0.50 |
3.97 |
0 |
Sulfide |
|
323.85 |
327.08 |
3.23 |
3.23 |
0.68 |
0 |
Sulfide |
FSW00031 |
Lavra Velha SW |
|
250.70 |
253.00 |
2.30 |
2.20 |
1.37 |
0 |
Sulfide |
Incl. |
251.28 |
252.00 |
0.72 |
0.72 |
3.40 |
0 |
Sulfide |
Monument Bay
Yamana continues to explore its 31,000-hectare
Monument Bay project, located in northeastern Manitoba. The Twin
Lakes deposit continues to be evaluated as an open pit operation
but is also being re-evaluated as an underground project based on
encouraging results from an internal study and a revised deposit
interpretation that indicates the presence of steeply plunging
higher-grade shoots. The Company continues with deeper drilling
targeting high-grade mineralized shoots.
Encouraging previously reported drill results
from 2020 include the following estimated true width intercepts:
14.86 metres at 3.32 g/t of gold, including 7.20 metres at 5.58 g/t
of gold (TL-20-703); 7.46 metres at 6.68 g/t of gold (TL-20-712);
4.06 metres at 8.64 g/t of gold, including 3.07 metres at 10.73 g/t
of gold (TL-20-715); and 4.64 metres at 5.29 g/t of gold
(TL-20-702). For additional details, see the Yamana press release
titled ‘Yamana Gold Advances Projects in its Generative Program’
published December 3, 2020, available at www.yamana.com.
Winter drilling in 2020-2021 continued to test
the projections to depth of mineralized shoots, confirming the
presence of characteristic deposit mineralization, lithologies and
alteration features at depth, with preliminary associated anomalous
gold values. Drilling results include the following estimated true
width intervals: 1.05 g/t of gold over 12.16 metres, and 3.49 g/t
of gold over 7.61 metres, including a higher-grade core over 2.27
metres grading 7.48 g/t of gold, with 0.39 metres grading 29.00 g/t
of gold (TL-21-727B); and 2.34 g/t of gold over 9.73 metres,
including 6.52 g/t gold over 2.22 metres (TL 21-732). This interval
occurs within a broad zone of lower-grade mineralization over 50
metres in width. See Table 3 below for additional results.
Table 3: Monument Bay 2020-2021 Winter Program Drilling
Highlights for Intervals Greater Than 5.0 Gram*Metres (Gold g/t
Multiplied by Estimated True Width in Metres).
Hole ID |
Gold Cut-off (g/t) |
Including |
From (m) |
To (m) |
Core Length (m) |
Est. True Width (m) |
Gold (g/t) |
TL-21-721 |
1.00 |
|
824.13 |
835.00 |
10.87 |
9.88 |
1.02 |
1.00 |
|
840.17 |
843.05 |
2.88 |
2.60 |
3.61 |
5.00 |
Incl. |
840.94 |
842.05 |
1.11 |
1.00 |
6.19 |
TL-21-727B |
1.00 |
|
663.43 |
677.57 |
14.14 |
12.16 |
1.05 |
1.00 |
|
683.00 |
691.65 |
8.65 |
7.61 |
3.49 |
3.00 |
Incl. |
684.60 |
690.89 |
6.29 |
5.53 |
4.20 |
5.00 |
Incl. |
684.60 |
687.18 |
2.58 |
2.27 |
7.48 |
10.00 |
Incl. |
686.74 |
687.18 |
0.44 |
0.39 |
29.00 |
TL-21-729 |
3.00 |
|
577.52 |
579.12 |
1.60 |
1.40 |
4.56 |
5.00 |
Incl. |
577.92 |
579.12 |
1.20 |
1.05 |
5.06 |
TL-21-730 |
1.00 |
|
608.23 |
617.54 |
9.31 |
6.97 |
1.00 |
1.00 |
|
647.66 |
651.62 |
3.96 |
3.25 |
1.62 |
TL-21-732 |
1.00 |
|
397.58 |
412.20 |
14.62 |
9.73 |
2.34 |
3.00 |
Incl. |
406.82 |
410.15 |
3.33 |
2.22 |
6.52 |
5.00 |
Incl. |
407.82 |
410.15 |
2.33 |
1.55 |
7.30 |
TIER 2 PROJECTS
Borborema
The Borborema project is a 40,000-hectare land
package located in Brazil´s Pernambuco state in a Proterozoic
magmatic arc environment similar to that hosting the Chapada mine,
a large copper-gold mine developed by Yamana and put into
production in 2007. Exploration at Borborema led to the recent
discovery and ongoing delineation of a copper rich mineralized
body. Massive to semi massive copper rich sulphides occur in a
wider panel of disseminated mineralization.
Exploration drilling in the high-grade São
Francisco target completed in late 2020 and the first quarter of
2021 has successfully extended the mineralized zone over an
additional 1,000 metres along strike in an east-west direction.
Mineralization is currently defined semi-continuously along a
2.3-kilometre corridor. Both disseminated and massive sulfide zones
remain open for expansion down-dip and along strike, and indicate
potential for development of a significant polymetallic system with
associated gold.
Recent drilling results highlight a wide,
lower-grade mineralized envelope bordering massive sulphide
horizons not previously recognized. Drilling highlights include the
following core length intercepts: 0.26% of copper over 40.15
metres, including 1.02% of copper over 5.16 metres (SF-026,
starting at 261.00 metres down hole); and 1.03% of copper, 0.10 g/t
of gold and 0.17% of zinc over 9.24 metres, including 0.20 g/t of
gold, 1.81% of copper and 0.19% of zinc over 5.00 metres (SF-020,
starting at 115.11 metres down hole).
Drill holes SF-020 and SF-026 are located
approximately 1.5 kilometres apart along strike, with the
intervening strike length untested. A second low-grade disseminated
sulfide horizon intercepted in the São Francisco footwall could
indicate a new, parallel sulphide lens at depth. See Figure 6 and
Table 4 for additional details.
Exploration is ongoing to define and develop new
targets at São Francisco and on the wider Borborema property. High
priority targets for follow-up include several gold and base-metal
surface geochemistry anomalies associated with areas of
hydrothermal alteration and sulfide mineralization, suggesting
potential for the discovery of additional, similar zones of
mineralization near São Francisco. Airborne magnetic and
radiometric geophysical surveys are scheduled for this year and
expected to provide a highly effective exploration tool in
generating and delineating targets to guide ongoing exploratory
work.
Results to date have successfully demonstrated
that São Francisco represents a large, shallow gold-enriched
polymetallic system, continuous over more than two kilometres in
strike and open for expansion in all directions. Multiple surface
geochemical anomalies indicate the possibility for additional gold
and polymetallic discoveries.
Figure 6: Borborema Project, São Francisco
Sector Details, District Targets and
Geology.https://www.globenewswire.com/NewsRoom/AttachmentNg/d946c360-d006-48cb-a5e2-3b0aabce77b0
Table 4: Borborema 2021 Drilling Highlights for
Intervals Greater Than 2.5% Copper*Metres (Copper % Multiplied by
Core Length in Metres).
Hole |
Sector |
Including |
From (m) |
To (m) |
Core Length (m) |
Gold (g/t) |
Copper (%) |
Zinc (%) |
SF-020 |
São Francisco |
|
115.11 |
124.35 |
9.24 |
0.10 |
1.03 |
0.17 |
Incl. |
116.00 |
121.00 |
5.00 |
0.20 |
1.81 |
0.19 |
SF-024 |
São Francisco |
|
138.08 |
143.92 |
5.84 |
0.04 |
0.61 |
0.08 |
Incl. |
140.85 |
142.55 |
1.70 |
0.16 |
1.96 |
0.13 |
SF-025 |
São Francisco |
|
236.00 |
265.28 |
29.28 |
0.04 |
0.10 |
0.02 |
SF-026 |
São Francisco |
|
261.00 |
301.15 |
40.15 |
0.01 |
0.26 |
0.04 |
Incl. |
294.54 |
299.70 |
5.16 |
0.05 |
1.02 |
0.09 |
SF-031 |
São Francisco |
|
257.53 |
285.00 |
27.47 |
0.01 |
0.22 |
0.03 |
Incl. |
265.18 |
272.41 |
7.23 |
0.02 |
0.46 |
0.03 |
Jacobina Norte
The Jacobina Norte project, located in Brazil’s
Bahia State and contiguous with and to the north of the Company’s
Jacobina mine property, comprises a total of 78,000 hectares of
exploration concessions, covering a 150-kilometer strike extent of
the favourable Serra do Corrego formation, which host the
paleoplacer gold deposits of the Jacobina mine.
Preliminary work, including mapping the
favourable conglomerate reefs and the collection of over 7,000 rock
samples, has outlined a continuous six-kilometre trend with drill
targets defined by 140 rock samples that have returned over 1.00
g/t gold. Follow-up drilling was recently initiated to test
multiple targets, such as Barrocão, Barrocão Velho, Angicos, and
Andorinhas. These targets are defined by gold values in surface
rock samples above 1.0 g/t and ranging up to 5.8 g/t of gold
related to multiple, continuous conglomerate horizons that are
geologically comparable to those hosting paleoplacer gold
mineralization at the Jacobina mine.
Select historic drill results from Jacobina
Norte reported as core length include: 5.38 metres at 3.97 g/t of
gold, 2.50 metres at 2.58 g/t of gold; and 4.13 metres at 2.34 g/t
of gold. An initial six drill holes completed to date have
successfully intersected the down-dip extension of conglomerate
reefs in all areas tested, returning anomalous gold values in most
holes, including the following core length intercept: 0.32 metres
at 6.91 g/t of gold (BRC-005 hole, starting at 188.78 metres down
hole), testing the Barrocão Velho sector. See Figure 7 for
additional details. Drilling will continue to test multiple widely
spaced targets on the property to rapidly define the highest
priority areas.
While the drilling program advances, ongoing
exploration continues to develop new sectors, such as Arapongas, in
the south portion of the trend, represented by extensive
occurrences of conglomerate sequences that extend continuously
along an approximately 1.0-kilometre corridor. Arapongas contains
individual conglomerate lenses reaching up to 20 metres in width
and returning gold values in surface rock samples ranging up to
11.0 g/t of gold. The sector represents the largest conglomerate
sequence identified at Jacobina Norte and is an important target
for drill testing.
Results to date at Jacobina Norte continue to demonstrate the
impressive exploration potential of the property, with extensive
wide, continuous sequences of mineralized Serra do Corrego
formation conglomerate exposed at surface, and geological features
similar to those found at the multi-million ounce Jacobina mine
deposit.
Figure 7: Jacobina Norte Project Plan Map Showing Main
Target Areas, Rock Gold Geochemistry and
Drilling.https://www.globenewswire.com/NewsRoom/AttachmentNg/7ea4ab5a-87c4-47ac-893b-a3b8c96d8fa5
Falcon
The Falcon property is a 20,000-hectare land
package located in Santa Cruz Province in southern Argentina
approximately 90 kilometres northwest of Yamana’s Cerro Moro mine.
The project is located in a similar geological environment to the
Cerro Moro vein system, represented by the sequence of well
stratified, shallow-dipping, sub-aerial felsic pyroclastic and
epiclastic rocks of the Jurassic age Chin Aike formation.
The main area of interest is a zone of low-grade
near-surface mineralization along a 1.0-kilometre long northeast
trend associated with brecciated ignimbrites and sedimentary
breccia. Historic drilling has generated the following significant
core lengths intercepts: 1.20 g/t of gold and 32.6 g/t of silver
over 48.00 metres (starting at 3.00 metres downhole; FD-0004); 0.72
g/t of gold and 10.2 g/t of silver over 71.00 metres (starting at
89.00 metres down hole; FD-0002); and 0.60 g/t of gold and 7.2 g/t
of silver over 80.50 metres (starting at 43.00 metres down hole;
FD-0005). Exploration results suggest the project has significant
potential to host a near-surface bulk-tonnage gold-silver deposit.
Preliminary metallurgical studies and geological modelling are
underway.
Systematic exploration of the property conducted
in 2021 identified additional anomalous sectors such as a new,
parallel northeast trending structural zone adjacent to the main
Falcon trend. Initial surface rock samples in this zone averaged
2.6 g/t of gold, with individual samples ranging up 12.9 g/t of
gold, defining a new anomalous trend 1.2 kilometres in length. A
recently completed soil survey has outlined a gold-in-soil anomaly
with greater than 25 parts per billion gold over 1,300 by 500
metres, expanding the near-surface, low-grade mineralization target
substantially. See Figure 8 for additional details.
The Falcon project represents a significant
opportunity for the Company in light of its proximity to and
potential synergies with the Cerro Moro operation. The
characteristics of the mineralization suggest the potential for a
low-cost, bulk open pit heap leach mining operation with
significant upside potential and large areas of the property open
to exploration.
Figure 8: Falcon Project Location Map Showing Main Areas
of Interest As Discussed in
Text.https://www.globenewswire.com/NewsRoom/AttachmentNg/23795da1-1458-47b3-a8a2-98c152c8694e
TIER THREE PROJECTS
Yamana controls a number of prospective land
packages with mineralization on surface and limited or no drilling
completed to date. These Tier Three projects represent an important
pipeline of opportunities, where the Company believes they could
quickly reach the next exploration stages, providing organic growth
of new advanced exploration projects over the next decade. Notable
Tier Three projects include Las Flechas in Argentina and Colider in
Brazil.
Las Flechas
The Las Flechas Project, located in San Juan
province, Argentina, is comprised of approximately 30,000 hectares
of exploration concessions. The property is situated along the
Central Andean Miocene volcanic belt of Chile-Argentina, one of the
most fertile geological environments globally for large epithermal
and porphyry gold and copper-gold systems, and host to several
major mines and deposits including El-Indio, Veladero, and Pascua
Lama. The Las Flechas property is situated 25 kilometres south of
the Filo Del Sol project in Argentina.
The current exploration program has focused on
the Cerro Dante target area, the site of a significant gold soil
anomaly and historic drilling results including the following core
length intercepts in drill hole LFS-DANT 0006: 1.20 g/t of gold
over 34.0 metres (starting 8.0 metres downhole) and 0.33 g/t of
gold over 92.0 metres, including 0.50 g/t of gold over 24.0 metres
(starting at 114.0 metres downhole).
The area hosts a large, north-south elongate
breccia complex bordering a dacite porphyry stock. Mineralization
is interpreted as a breccia-related high-sulphidation gold system
related to an exposed porphyry copper-gold centre. Work in 2021 has
focused on mapping, geochemical sampling, and target delineation.
This work has led to the discovery of a second breccia complex and
a new mineralized zone, Silica Este, located 3.5 kilometres east of
Cerro Dante. Soil samples demonstrate gold greater than 25 parts
per billion in an 800 metre by 600 metre area. Follow-up select
rock samples have assayed up to 5.47 g/t of gold and 39.8 g/t of
silver from samples of strong silicification and extensive breccia.
See Figure 9 for additional details. Drill permitting is in
progress with drilling expected to start in the fourth quarter of
2021.
Las Flechas represents a large prospective land package hosting
a robust hydrothermal system strategically located in one of the
most important geological regions globally for discovery of major
high-sulphidation and associated porphyry gold and copper
deposits.
Figure 9: Las Flechas Project Location Map Showing Main
Areas of Interest Discussed in
Text.https://www.globenewswire.com/NewsRoom/AttachmentNg/7d11249b-5290-4944-a30e-dc3a20afd5a2
Colider
Colider is an early stage project located in
Brazil’s Mato Grosso State in the newly developing Juruena
polymetallic District, which has recently been explored for
porphyry copper and precious metals deposits by several major and
junior mining companies. The property consists of approximately
20,000 hectares and encompasses a sector of the prospective
Proterozoic volcanic Colider sequence, where current exploration
has identified several areas of interest defined by large areas of
anomalous gold and copper contents in surface geochemical samples.
Several drill ready targets have been defined, representing a
significant opportunity in this new unexplored geological
environment.
Initial exploratory drilling is ongoing at Colider, testing
high-grade gold and polymetallic soil anomalies hosted in volcanic
rocks at the Aruanã, Inajá, and Cambará targets. Results are
pending. See Figure 10 for additional details.
Figure 10: Colider Project Map Showing Main Areas of
Interest Discussed in
Text.https://www.globenewswire.com/NewsRoom/AttachmentNg/5fd9da14-ac45-4e36-af0d-86e09fad4be2
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.
Quality Assurance and Quality
ControlYamana incorporates a Quality Assurance and Quality
Control (“QA/QC”) program for all of its mines and exploration
projects which conforms to industry best practices.
Samples are transported in security sealed bags
for preparation at ALS and SGS analytical laboratories.
ALS and SGS are both ISO 9001:2008 and 17025 certified laboratories
Gold is analyzed by gold fire assay with 30 grams or 50 grams
aliquot and AAS finish. Samples over 5 g/t gold are re-analyzed by
gravimetric finish methods. Silver is determined using a four acid
digestion and AAS finish (ore level) and samples over 30 g/t are
re-analyzed by gravimetric finish methods. Five percent of all
pulps are further checked by secondary certified laboratories (ALS,
SGS, Bureau Veritas) using the same analytical methods.All
exploration diamond drill cores are split in half by mechanical
spitting or core sawing and sampled at appropriate intervals for
assay. The remaining core, coarse reject and pulps are stored
on-site in a secure location.
Certified reference standards, duplicates,
sterile and blanks are routinely inserted into the sample stream as
a control for assay accuracy, bias, precision and contamination.
The results of these checks are tracked and failures are
re-analyzed. This information also includes pulp checks carried out
in the secondary lab.
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
FTI Consulting (UK Public Relations)Sara Powell
/ Ben Brewerton+44 7931 765 223 / +44 203 727 1000
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
Credit Suisse (Joint UK Corporate
Broker)Ben Lawrence / David Nangle Telephone: +44 (0) 20
7888 8888
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, including
exploration drilling plans and results from the Company’s
generative program and potential to significantly extend mine lives
at the Company’s projects. 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 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 its exploration programs and results of exploration
for the objectives and may not be appropriate for other
purposes.
(All amounts are expressed in United States
Dollars unless otherwise indicated.)
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