TIDMAUY
RNS Number : 0230G
Yamana Gold Inc.
10 November 2022
ONGOING EXPLORATION SUCCESS CONTINUES TO UNDERPIN PROJECT
PIPELINE FOR GROWTH AND LONGEVITY; strong october production
EXEMPLIFIES OPERATIONAL EXCELLENCE AND positions the company well
to meet annual guidance
Download a PDF of detailed drill hole results for Canadian
Malartic
Download a PDF of detailed drill hole results for Wasamac
Download a PDF of detailed drill hole results for Jacobina
Download a PDF of detailed drill hole results for El Peñón
Download a PDF of detailed drill hole results for Minera
Florida
Download a PDF of detailed drill hole results for Cerro Moro
TORONTO, November 10, 2022 -- YAMANA GOLD INC. (TSX:YRI;
NYSE:AUY; LSE:AUY) ("Yamana" or the "Company") is pleased to
announce new exploration drilling results across its asset
portfolio, underscoring its strategic outlook and efforts to
meaningfully extend and expand its sustainable production platform.
Exploration results at Canadian Malartic, Wasamac and Jacobina
support strong organic growth in mineral reserves, mineral
resources and production through successful brownfield exploration
programs. Further success at El Peñón, Minera Florida and Cerro
Moro is expected to significantly replace or reduce depletion due
to mining, extending mine life, increasing sustainable production
and enhancing asset value.
The Company is also pleased to report that the strong
operational performance seen throughout the nine month period ended
September 30 continued in the month of October. This overwhelmingly
strong production performance significantly exceeded plan and
positions the Company for a strong finish to the year, well within
guidance expectations. The Company produced 88,739 gold equivalent
ounces ("GEO")(1) in October, with gold production near a monthly
high of the year at 79,472 ounces and silver production near a
monthly high of the year at 796,573 ounces. With both gold and
silver production coming in well ahead of plan, GEO(1) production
in October was the second strongest monthly production so far this
year. The standout GEO(1) production also notably reflects a
gold-to-silver ratio which is near an all-time high and
significantly above that assumed in guidance. The results reflect
continued operational strength at all of the Company's operations
with standout performances at Canadian Malartic with 30,943 GEO(1)
(50% attributable basis), El Peñón with 19,249 GEO(1) and Cerro
Moro with 14,644 GEO(1) .
Notable exploration highlights include:
-- Significant progress on the conversion of inferred mineral
resources to indicated mineral resources at East Gouldie and
Odyssey South with infill drilling continuing to meet or exceed the
grade and width of the reported inferred mineral resource. Updating
of the mineral resource model with the new drill holes has
commenced and is expected to result in the conversion of a
significant portion of the inferred mineral resource declared in
2021 to indicated mineral resources by the end of 2022. Exploration
drilling at the East Gouldie zone of the Odyssey mine also
continues to grow the mineralized footprint with new intercepts to
the west of the known resource envelope highlighting the
generational nature of the deposit.
-- Wasamac's mineral reserves and mineral resources have grown
significantly, with gold mineral reserves increasing by 14%. Wider
than expected intervals in some core zones, significant infill
drilling as well as the delineation of new mineralized zones have
contributed to an updated resource model at Wasamac, with increases
in probable mineral reserves, indicated mineral resources and
inferred mineral resources. The updated resource model supports an
expanded gold production scenario at 9,000 tonnes per day ("tpd")
which contemplates an early ramp-up to 200,000 ounces in 2027 and
up to 250,000 ounces in 2028. The inferred mineral resource
expansion and exploration programs are ongoing and further results
are expected by year-end.
-- Exceptional results are being produced by Jacobina's expanded
drilling program. Strong mineral resource growth in the new and
rapidly growing João Belo Sul zone as well as a pending maiden
inferred mineral resource for part of the Morro do Vento Leste zone
continue to highlight the long-term upside potential at Jacobina.
The results are expected to continue the strong track record of
mineral reserve and mineral resource growth at Jacobina which
supports the recently completed Phase 2 expansion and the planned
Phased 3 expansion which will allow for production of up to 270,000
ounces of gold per year.
-- Solid exploration results at El Peñón, Minera Florida and
Cerro Moro. Drill programs at El Peñón, Minera Florida and Cerro
Moro designed to replace depletion due to mining and the solid
exploration results reported in this release suggest that the sites
are on track to meet this target for the year.
Canadian Malartic
Infill drilling of the East Gouldie and Odyssey South deposits
continues to meet or exceed the grade and width of the reported
inferred mineral resource. It is expected that a significant
portion of the inferred mineral resources declared in 2021 will be
converted by the end of 2022 into indicated mineral resources as a
result of updating the mineral resource model with the new drill
holes. These new indicated mineral resources will provide the basis
for updated technical studies that will allow the definition of
mineral reserves for the Odyssey underground project over the next
few years. The Company expects the definition of mineral reserves
for the Odyssey underground project to start at the end of 2022,
supporting first gold production from Odyssey South in the first
quarter of 2023.
Additionally, drilling continues to delineate the Odyssey
internal zones, which were not previously considered in the 2021
preliminary economic assessment mine plan. The Odyssey team is in
the process of optimizing the mine plan with these drilling
results, which is expected to result in higher gold production
during the construction period, further offsetting the initial
capital cost and optimizing the cash flows profile starting in
2023.
As previously reported, exploration drilling of the East Gouldie
Extension and parallel Titan zone indicate that a corridor of
mineralization extends at least 1.3 kilometres to the east of East
Gouldie and over an approximate 2,000 metre vertical extent. The
Company believes that the underground development will support a
significantly higher level of production than assumed in the
current mine plan with more production that could come from further
ramp development and from a possible second shaft at depth where
mineralization remains open in all directions.
New drilling demonstrates that the East Gouldie deposit also
extends significantly to the west of the resource envelope at
economically favourable grades and widths. Overall, drilling
indicates that the East Gouldie deposit extends more than 4
kilometres along strike, of which only approximately 1.5 kilometres
is currently reported as mineral resources.
Year to date, 68,541 metres of infill drilling at East Gouldie
have been completed with ten to twelve drill rigs. Infill drilling
continues to convert as expected with predictable wide zones at
expected grades. Highlights include: MEX 21-219ZB with 9.68 g/t of
gold (9.65 g/t of gold cut to 20 g/t) over an estimated true width
of 30.90 metres, MEX21-224WAZ with 4.57 g/t of gold over an
estimated true width of 50.70 metres and MEX 22-235Z with 6.18 g/t
of gold over an estimated true width of 31.00 metres.
Infill drilling on the Odyssey South zone totals 32,300 metres
to date with significant mineralization observed in internal higher
grade zones including the following highlights: UGOD 16-075 with
6.80 g/t of gold (5.69 g/t of gold cut to 20 g/t) over an estimated
true width of 21.84 metres and UGOD 16-071 with 15.31 g/t of gold
(11.29 g/t of gold cut to 20 g/t) over an estimated true width of
5.70 metres. See Figure 1 and Table 1 for additional drill
results.
Exploration drilling on the East Gouldie corridor includes
12,405 metres of drilling year-to-date in 2022. Step out drilling
west of the East Gouldie mineral resource has generated several
positive new intercepts expanding the potential of the East Gouldie
zone highlighted by hole MEX22-240 with 4.19 g/t of gold over an
estimated true width of 12.80 metres at 1,331 metres depth in an
area approximately 670 metres west of the current East Gouldie
mineral resources.
Figure 1 : East Gouldie and Odyssey Oblique View Looking Down to
the North and Longitudinal Section (Looking North) (Inset) Showing
Recent Drilling Highlights.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Table 1 : Canadian Malartic, East Gouldie and Odyssey South
Drilling Highlights, Select for Intervals Greater Than 50.0 Gram
Metres Metal Factor (Gold g/t Uncapped Multiplied by Estimated True
Width in Metres).
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Drilling through the remainder of 2022 and into 2023 will
complete the mineral resource conversion of the core mineralized
zone at East Gouldie, explore the up dip and western extensions of
the known East Gouldie envelope and continue to convert mineral
resources to indicated mineral resources at Odyssey South with
infill drilling.
To date all results support the planned underground Odyssey
project with significant upside in extensions of the East Gouldie
zone across a very large mineralized panel and in extensions and
within internal higher grade zones in the advancing Odyssey South
project. Notably, the Company also recently received the requisite
mining lease from the Quebec Ministry of Natural Resources and
Forestry and the Certificate of Authorization to commence
underground mining. As such, all required permits to commence gold
production from the Odyssey mine have now been obtained.
Wasamac
Wasamac mineral reserves and mineral resources have increased
across all categories and by a total of 19% since completion of the
feasibility study in mid-2021. Mineral reserves have increased by
260,000 ounces or 14% (Table 3), while indicated mineral resources
and inferred mineral resources have increased by 4% and 76%
respectively (Table 4).
The growth in mineral reserves and mineral resources is the
result of infill drilling, with 30,242 metres completed
year-to-date, concluding the drill program for the year. Results
are positive with both wider than expected mineralization in some
sectors of the existing mineral reserves and the definition of
several new mineralized zones in the hanging wall of the deposit
(Table 2; Figure 2). These results have contributed to an updated
resource model and stope designs, with the average horizontal stope
width increasing from 12.6 metres in 2021 to 13.6 metres in 2022.
As such, the additional mineral reserves are expected to be
accessible at a lower unit cost, with an improved ratio of gold
ounces per development metre.
The positive results support the expanded production plan at
9,000 tpd, with a gold production profile of 200,000 to 250,000
ounces per year compared to the LOM average of 169,000 ounces in
the 2021 feasibility study, while maintaining a reserves life of
nearly 10 years. With conversion of mineral resources and
exploration potential, the Company is confident that mine life will
extend at least 15 years. Additionally, 47 new infill drill holes
within the indicated mineral resource envelope provides a high
level of geological confidence, supporting the first three years of
production.
The Wasamac deposit remains open at depth and along strike and
the underexplored secondary zones such as Wildcat are showing
promising drilling results. Follow up exploration drilling at
Wildcat and Wildcat south totaling 4,266 metres has been completed
in 2022. Additional exploration targets on the property, including
the adjacent Francoeur, Arntfield, and Lac Fortune properties,
provide further potential upside. Exploration drilling of potential
mineral envelopes defined by historic drilling at Francoeur and
Arntfield totaling 7,232 metres has been completed in 2022. Results
are pending for the exploration drilling.
Figure 2: Wasamac Longitudinal Section Showing Recent Drilling
Highlights and Planned Drilling.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Table 2: Wasamac Infill Drill Intercepts, Select for Intervals
Greater than 10 Gram Metres Metal Factor (Gold g/t Uncapped
Multiplied by Estimated True Width in Metres).
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Table 3: Wasamac Mineral Reserves Statement as of November 9,
2022
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Category Tonnes Gold Grade Contained Gold
(000's) (g/t) oz. (000's)
------- ---------- --------------
Probable 26,835 2.51 2,170
------- ---------- --------------
1. Mineral reserves have been estimated by Denis Gourde, P.Eng.,
a full-time employee of InnovExplo Inc., and a qualified persons as
defined by NI 43-101. The estimate conforms to the CIM (2014)
Standards and CIM (2019) Guidelines.
2. Mineral Reserve estimate has an effective date of November 9, 2022
3. Estimated at US$1,250/oz Au using an exchange rate of
US$1.32:C$1.00, variable cut-off value from 1.52 g/t to 1.65 g/t
Au.
4. Mineral reserve tonnage and mined metal have been rounded to
reflect the accuracy of the estimate and numbers may not add due to
rounding.
5. Mineral reserves consider average total mining dilution of
11% and average mining recovery of 93%.
Table 4: Wasamac Mineral Resource Statement as of November 9,
2022, exclusive of mineral reserves
Category Tonnes Gold Grade Contained Gold
(000's) (g/t) oz. (000's)
------- ---------- --------------
Indicated 6,034 1.75 339
------- ---------- --------------
Inferred 7,086 2.00 455
------- ---------- --------------
1. Mineral resources have been estimated by Dominic Chartier,
P.Geo., a full-time employee of Yamana Gold Inc., and a qualified
person as defined by NI 43-101. The estimate conforms to the CIM
(2014) Standards and the CIM (2019) Guidelines. Mineral resources
were estimated using ordinary kriging informed by capped composites
and constrained by three-dimensional mineralization wireframes.
Classification was completed following a distance-based criteria
determined by grade continuity observed from variography.
2. Mineral resources are not mineral reserves and have not
demonstrated economic viability.
3. Underground mineral resources are estimated at a variable
cut-off grade of 1.14 to 1.42 g/t Au, which corresponds to 75% of
the mineral reserves cut-off grades. Mineral resources are reported
fully diluted within conceptual mining shapes. Bulk densities
ranging from 2.77 g/cm(3) to 2.81 g/cm(3) were used to convert
volume to tonnage.
4. All figures are rounded to reflect the relative accuracy of the estimate.
Jacobina
Exploration drilling at Jacobina ramped up significantly in
2022, supported by a budget of $15 million. Through the end of the
third quarter, 38,900 metres of drilling had been completed.
Conversion of inferred mineral resources to indicated mineral
resources, supported by 23,600 metres of infill drilling, was
completed at Morro do Vento and João Belo Sul as well as the north
extension of João Belo with additional step out and exploration
drilling at both zones. Morro do Vento and Morro do Vento Leste are
both expected to contribute to new inferred mineral resources for
year-end updates and modelling. João Belo Sul is expected to
provide significant new indicated mineral resources and inferred
mineral resources only two years after discovery of the zone and
following definition of a maiden inferred mineral resource in 2021.
This zone continues to exhibit large scale potential with
exploration drilling now identifying potentially economic
mineralization along 3.1 kilometres of strike length (Figure
3).
Recent drilling highlights from João Belo Sul include the
following estimated true width intervals: 8.22 g/t of gold over
2.10 metres (hole JBS00012); 5.15 g/t of gold over 3.04 metres,
including 10.04 g/t of gold over 1.38 metres and 6.75 g/t of gold
over 2.30 metres, including 10.27 g/t of gold over 0.92 metres in
drill hole JBS00013; 15.20 g/t of gold over 1.15 metres and 3.90
g/t of gold over 2.98 metres, including 6.81 g/t of gold over 1.56
metres in drill hole JBS00008; and 6.67 g/t of gold over 2.94
metres, including 18.16 g/t of gold over 0.93 metres and 3.26 g/t
of gold over 3.95 metres in drill hole JBS00021. This new
mineralized zone is expected to continue to demonstrate growth over
the next decade of mining at Jacobina.
Figure 3: João Belo Sul and João Belo Mine Longitudinal Section,
Looking West Highlighting Recent Exploration and Infill Drilling
Results - LMPC Reef.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Morro do Vento Leste is a large mineralized zone which extends
vertically from approximately 300 metres to 900 metres below
surface in the eastern portion of the mine. This zone has seen
limited infill drilling to date but the completion in 2022 of 3,280
metres in six drill holes will allow a portion of the mineralized
area to be defined as inferred mineral resources for year end, the
first step in providing the next generation of indicated mineral
resources for a growing eastern mine complex. Drilling highlights
from Morro do Vento Leste include estimated true width drill
intervals 4.26 g/t of gold over 2.57 metres (drill hole MVE00004)
and 4.35 g/t of gold over 3.19 metres, including 14.51 g/t of gold
over 0.62 metres in hole MVE00006.
Exploration also continues to expand the mineralized trend to
the north of Canavieiras with positive drill results reported from
exploration at Viuva and Maricota. At Maricota, drill hole
MRCEX00001A returned a positive result of 7.56 g/t of gold over an
estimated true width of 2.37 metres at 417.5 metres down hole,
confirming the down-plunge continuation of mineralization at
surface, and opening up this target for further exploration down
plunge as far as historic drill hole MVTEX22 (9.72 g/t of gold over
1.80 metres). (See Table 5 for additional drilling results).
Table 5: Jacobina New Infill and Exploration Drill Intercepts,
Select for Intervals Greater than 2.5 g/t of Gold Over Estimated
True Width Diluted Over 3.0 Metres.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
The Company expects these drilling results to translate into
another year of significant mineral reserve and mineral resource
growth at year-end. Mineral reserves and mineral resources have
grown by approximately 68% over the past five years, net of
depletion, unlocking the ability of the underground mine to support
the Phase 2 expansion to 230,000 ounces of gold per year, which was
completed in the third quarter.
Exploration drilling resulted in maiden mineral resources at
João Belo Sul in 2021 and is expected to result in maiden mineral
resources at Morro do Vento Leste at the end of this year. These
two new additional deposits are expected to not only extend mine
life, but provide additional sectors to be mined in parallel with
the existing underground mines, supplementing the existing mine
production rate and facilitating further expansion phases. Both
João Belo Sul and Morro do Vento Leste can be accessed from the
existing mine with modest underground development and
infrastructure requirements. The Company has now begun pursuing the
Phase 3 expansion to 10,000 tpd through continued incremental
debottlenecking. With the permit to 10,000 tpd already in hand,
Phase 3 is expected to increase gold production to approximately
270,000 ounces per year. The Phase 4 expansion, of up to 15,000
tpd, would increase gold production in excess of 350,000 ounces per
year.
El Peñón
El Peñón, located approximately 165 kilometres southeast of the
city of Antofagasta in northern Chile, is a high-grade underground
gold-silver mine. The operation has a strong track record of
mineral reserve replacement, continually replacing ounces mined
since entering production in 1999. El Peñón highlights Yamana's
ability to deliver value and organic growth by consistently
replacing mineral reserves beyond depletion and increasing mine
life. This record of exploration success continued in the second
half of 2022 with continued success expanding multiple core mine
structures.
Exploration at El Peñón has focused on replacing mineral
resources and mineral reserves due to mining depletion and mineral
resource conversion drilling. Exploration and infill drilling
totalling 59,359 metres was completed in 11 sectors of the core
mine. Drilling continued to focus on sectors that were most
productive in generating new mineral resources during 2021,
following higher grade trends, extending mineralization to depth
within the lower dacitic unit across shallowly dipping faults, and
on parallel and secondary veins associated with known structures
(e.g., Pampita, Martillo Flat Sur Este). Results are positive to
date with good intercepts in the Pampa Campamento, Pampita,
Martillo Flat, Ventura and Dorada veins which are expected to
deliver new indicated mineral resources for year end.
Table 6: El Peñón New Infill & Exploration Drill Intercepts,
Core Mine Area, Select for Intervals Greater than 3.5 g/t of Gold
Over Diluted Mining Width of 1.2 Metres. Gold Equivalent Equals
Au(g/t)+Ag(g/t)/75.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
After completing drilling at the Penon Sur discovery in the
second quarter of 2022 and having recently developed a full three
dimensional geological, geochemical and structural model, the
Company will now focus on advancing underground drill access and
generating priority targets available for drilling planned in
2023.
El Peñón, which achieved a fourth consecutive year of adding
mineral reserves in excess of depletion with mineral reserves
increasing 23% to 1.3 million GEO(1) over that period, represents
another source of value creation for the Company as it continues to
extend the mine life at a production rate of 220,000 to 230,000
GEO(1) per year. Daily throughput is now approximately 3,300 tpd
versus the currently available plant capacity of up to 4,200 tpd,
representing an opportunity to increase production as the operation
endeavours to build its mineral inventory in wake of consistent
exploration results.
Minera Florida
The 2022 exploration program at Minera Florida is focused on
replacing depletion due to mining and on building a strong
inventory of new inferred mineral resources that will open new mine
sectors and provide a possible path to production expansion. Infill
drilling year-to-date totaling 22,569 metres, utilizing four
underground drill rigs and one surface diamond drill rig, was
completed in several core mine areas and positive results were
received from Aurora, Bandolera, Patagua W and elsewhere. At
Aurora, high-grade mineralization remains open for expansion to
depth. Drill highlights from the Aurora Vein include the following
estimated true width intercepts: 12.07 g/t of gold, 54.6 g/t of
silver and 0.13% of zinc over 2.87 metres (ALH3790); 19.79 g/t of
gold, 53.9 g/t of silver and 0.15% of zinc over 1.70 metres
(ALH3846); 7.71 g/t of gold, 32.7 g/t of silver and 1.78% of zinc
over 2.35 metres (ALH3804).
Exploration drilling totalling 17,533 metres utilizing two
underground drill rigs tested several target areas during the year,
including Maqui Norte, Manda Norte, Maqui CII, Cantillana,
Circular, Cucuracha, Lisette, Lisette Sur, Milenium, Satelite
Manda, Diablita, Las Lauras, Maqui, Don Leopoldo, Peumo, Polvorin
and VCN. High-grade intercepts were reported at Maqui Norte, where
mineralization remains open for further expansion laterally to the
north, and at Manda Norte, where mineralization remains open down
dip, and where drilling results to date suggest grades may increase
with depth.
Highlights from Maqui Norte include the following estimated true
width intervals: 8.51 g/t of gold, 7.8 g/t of silver and 2.95% of
zinc over 2.85 metres in drill hole ALH3793; and 6.22 g/t of gold
with 3.2 g/t of silver over 1.79 metres in hole ALH3691. Highlights
from Manda Norte, proximal to existing underground infrastructure,
include the following estimated true width intercepts: 39.01 g/t of
gold, 7.9 g/t of silver and 1.21% of zinc over 2.57 metres and 5.49
g/t of gold, 3.5 g/t of silver and 0.88% of zinc over 2.42 metres
in drill hole ALH3664; 11.88 g/t of gold, 20.7 g/t of silver and
12.02% of zinc over 1.42 metres in hole ALH3799; 6.84 g/t of gold,
3.8 g/t of silver and 1.05% of zinc over 1.60 metres in drill hole
ALH3668; 7.57 g/t of gold, 10.7 g/t of silver and 5.04% of zinc
over 1.50 metres in hole ALH3817; and 8.93 g/t of gold and 4.5 g/t
of silver over 1.14 metres in hole ALH3658. Results to date are
positive with promising result for new potential indicated mineral
resources and inferred mineral resources in both the core mine, the
new Pataguas sector and along the Maqui fault structure.
Table 7: Minera Florida, New Infill & Exploration Drill
Intercepts, Select for Intervals Greater than 5 g/t of Gold Over
Diluted Mining Width of 1.2 Metres. Gold Equivalent Equals (Au +
Ag/101.57 + Zn/1.68).
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
Consistent with the 10-year outlook, the Minera Florida plant
de-bottlenecking study is advancing on schedule, with the objective
to increase throughput from 74,500 to 100,000 tonnes per month in
2025, thereby increasing annual gold production to approximately
120,000 ounces. The Company submitted the ESIA for the expansion
during the fourth quarter of 2021, with the timeline expected to be
approximately 18 months for approval, with another 12 months to
receive sectoral permits.
Cerro Moro
Cerro Moro exploration during 2022 has largely been concentrated
in the core mine and Naty sectors with infill drilling targeting
extensions of known mineralization both to depth and along strike
to replace mining depletion. Infill drilling to date totaling
13,658 metres returned positive results at Escondida West,
Veronica, Gabriela, Naty and Zoe. Highlights include the following
estimated true width intervals: 63.24 g/t of gold and 206.3 g/t of
silver over 1.82 metres (MD3842); 28.32 g/t of gold and 1,164.4 g/t
of silver over 4.85 metres (MD3783); 53.17 g/t of gold and 719.1
g/t of silver over 0.87 metres (MD3983); 20.91 g/t of gold and
173.3 g/t of silver over 8.25 metres (MD3612); and 15.55 g/t of
gold and 2,155.4 g/t of silver over 2.34 metres (MD4089). The
infill program will continue at Gabriela, Martina, Naty, Michelle,
Nini, Domos Union and Esperanza in the fourth quarter.
Exploration drilling completed to date included 17,800 metres of
diamond drilling largely continuing to focus on the core mine
Escondida-Zoe structural corridor, continuing to test extensions of
known ore shoots to depth and laterally and to test new sectors,
targeting areas with potential to generate new underground mineral
resources. Drilling utilizing two diamond drill rigs was completed
and results received during the quarter include positive intercepts
from Escondida West, Escondida Far East, Veronica, Zoe and
Gabriela, extending ore shoots laterally and to depth at both
targets. At Escondida Far East, drilling targeted the down plunge
extensions of steeply plunging high grade ore shoots in the
southeastern sector of this zone. Highlights include the following
estimated true width intervals: 532.18 g/t of gold and 113.2 g/t of
silver over 0.57 metres (275.28 g/t gold diluted over 1.10 metre
mining width) (MD3598); 45.03 g/t of gold and 3,246.9 g/t of silver
over 2.53 metres (MD3532); 44.24 g/t of gold and 187.6 g/t of
silver over 1.56 metres (MD3529); 10.59 g/t of gold and 429.2 g/t
of silver over 4.74 metres (MD3981); and 176.95 g/t of gold and
399.4 g/t of silver over 1.15 metres (MD3562).
For further drilling result highlights see Table 8 below, and
for complete drill assay results please refer to the linked PDF
file of detailed drill hole results for Cerro Moro.
Table 8: Cerro Moro New Infill & Exploration Drill
Intercepts, Select for Intervals Greater than 25 Gram Metres Metal
Factor (Gold Equivalent (g/t) Multiplied by Estimated True Width in
Metres). Gold Equivalent Equals Au(g/t)+Ag(g/t)/84.
http://www.rns-pdf.londonstockexchange.com/rns/0230G_1-2022-11-10.pdf
The mine has a significant inventory of veins that are
comparatively lower-grade in relation to the very high Cerro Moro
mineral reserve and mineral resource grade, that are not fully
reflected in the current mineral reserve and mineral resource
statements. These veins could potentially support new mineral
resources for the plant expansion scenario with lower cut-off
grades than the high grades currently being mined. Drilling of
these lower grade veins was not typically followed up with infill
drilling in the past as the mineralization is below the current
cut-off grade. Cerro Moro was developed as a high grade, low
tonnage operation but, from the beginning, the Company has
considered alternative processing options to allow for economic
extraction of lower grade mineralization, including:
a) a scalable plant, where the front-end of the plant
anticipates higher 2,000 tpd tonnage, with the expectation of
modest capital requirement to achieve this objective,
b) heap leaching near surface, lower-grade material to supplement other production.
The objective at Cerro Moro is to create a sustainable ten years
of production of at least 160,000 GEO(1) per year, and up to
200,000 GEO(1) per year. Upside from the aforementioned processing
options would be beyond the current ten-year outlook that assumes
Cerro Moro as a 150,000 to 165,000 GEO(1) per year operation, which
is expected to be sustainable from mineral reserves mine life,
ongoing exploration successes and mineral reserve replacement.
Qualified Persons
Scientific and technical information contained in this news
release has been reviewed and approved by Sébastien Bernier (P. Geo
and Senior Director, Reserves and 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.
Quality Assurance, Quality Control and Data Verification
Yamana 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 Geoassay, SGS and ALS Geochemistry. ALS and SGS are both ISO
9001:2008 and 17025 certified laboratories. Gold is analyzed by
gold fire assay with 30 grams aliquot and AAS finish (lab code:
Au-AA25). Au-AA25 is certified from 0.01 to 100 g/t gold. Samples
over 100 g/t gold are re-analyzed by gravimetric finish methods.
Silver is determined using a four acid digestion and ICP-MS finish
(ultra trace). The ME-MS61 method we use for silver is certified
0.01 to 100 ppm. Five percent of all pulps are further checked by a
secondary certified laboratory (SGS) using the same ore grade fire
assay analytical method.
All exploration diamond drill cores are split in half by core
sawing and sampled at appropriate intervals for assay. The
remaining core, and pulps are stored on-site in a secure location.
We disposed of the rejects at the lab after the QA/QC was
complete.
Certified reference standards, blanks and duplicates
(preparation and analytical) 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.
Further information on data verification can be found in the
Company's technical reports entitled "NI 43-101 Technical Report,
El Peñón Gold-Silver Mine, Antofagasta Region, Chile" and dated
effective December 31, 2020, "NI 43-101 Technical Report, Jacobina
Gold Mine, Bahia State, Brazil" and dated effective December 31,
2019, "NI 43-101 Technical Report, Canadian Malartic Mine, Quebec,
Canada" and dated effective December 31, 2020, "NI 43-101 Technical
Report on the Wasamac Feasibility Study Update" and dated effective
July 16, 2021, "NI 43-101 Technical Report, Cerro Moro Gold-Silver
Mine, Santa Cruz Province, Argentina" and dated effective December
31, 2021, and "NI 43-101 Technical Report, Minera Florida
Gold-Silver Mine, Metropolitan Region, Chile" and dated effective
December 31, 2021 available under the Company's profile on SEDAR at
www.sedar.com and on the Company's website.
About Yamana
Yamana 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
416-815-0220
1-888-809-0925
Email: investor@yamana.com
FTI Consulting (UK Public Relations)
Sara Powell / Ben Brewerton
+44 7974 201 715223 / +44 203 727 1000
NOTES
(1) GEO is calculated as the sum of gold ounces and the gold equivalent
of silver ounces using a ratio of 85.96 for the month ended October
31, 2022, 89.84 for the three months ended September 30, 2022,
and 73.55 for the three months ended September 30, 2021. GEO calculations
for actuals are based on an average market gold-to-silver price
ratio for the relevant period. Guidance and forward-looking GEO
assumes gold ounces plus the equivalent of silver ounces using
a ratio of 72.00.
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,
expectations and beliefs in connection with its continuing
exploration work across its asset portfolio and its efforts to
meaningfully extend its sustainable production platform, including,
without limitation, the Company's success at El Peñón, Minera
Florida and Cerro Moro being expected to significantly replace or
reduce depletion due to mining, extend mine life, increase
sustainable production and enhance asset value; the Company's
expansion plans for its various projects discussed herein, and its
expected mineral resource conversions and its mineral resource and
mineral reserve growth. 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 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 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
beliefs regarding its project pipeline growth and longevity and
what the Company believes to be its true value proposition and may
not be appropriate for other purposes.
This information is provided by RNS, the news service of the
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END
DRLGPGRWGUPPGPU
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