TIDMYAU
Yamana Gold provides update on Gualcamayo and makes construction decision for
QDD Lower West at Gualcamayo and Pilar
- Increase in mineral reserves and mineral resources, increase in production at
currently operating Gualcamayo mine and at new Pilar project -
TORONTO, Aug. 4 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today
announced that it has made a construction decision at QDD Lower West, the
planned underground ore body at its Gualcamayo mine, which will supplement
existing operations at Gualcamayo, and made a further construction decision for
the development of its Pilar project in Brazil. The Company also reported
updates on its other development and exploration projects. All amounts are
expressed in United States Dollars unless otherwise indicated.
"The supplemental production at Gualcamayo along with Pilar provides us with
our next stage of growth into 2013, which will be beyond our initial production
target of 1.5 million gold equivalent ounces," said Yamana's chairman and chief
executive officer, Peter Marrone. "We have numerous other projects under
evaluation in addition to expected continuing exploration successes, which we
are confident will provide further production growth."
Gualcamayo, Argentina
Advanced Mine Plan and Construction Decision at QDD Lower West
--------------------------------------------------------------
Yamana has updated its production plan for Gualcamayo to include the results of
the recently completed feasibility study update for QDD Lower West, the planned
underground ore body below the current QDD open pit operations and one of
several identified areas of mineralization at Gualcamayo, and has made a
construction decision for QDD Lower West.
Capital required for QDD Lower West is estimated at approximately $85 million
and is required primarily for mine development as ore is expected to be
processed through existing heap leaching operations and facilities at
Gualcamayo. This will be an underground mine, with ore being extracted through
the sublevel stoping method.
Gualcamayo production will result from a mix of various ores including from QDD
and from QDD Lower West. Production from QDD Lower West is targeted to begin in
early 2013, ahead of the originally planned 2015. Recovery at QDD Lower West is
expected to be at approximately 65%, although recovery in the first couple of
years would be higher. Cumulative recovery from all ores at Gualcamayo is
expected to be in the order of approximately 65% to 75%. While recovery will be
lower from QDD Lower West than the main open pit ore, gold will be recovered
through the heap leaching processing facilities already in operation at
Gualcamayo, thereby reducing the need for additional capital for production
from QDD Lower West. In addition, ore from QDD Lower West increases the overall
grade at Gualcamayo, thereby contributing to an increase in overall production.
QDD Lower West's current mineral reserves and metallurgical testwork support
heap leaching recovery at the planned recovery rate. Given the significant
additional exploration opportunity at QDD Lower West, the Company will continue
its exploration efforts as it progresses with mine development. The Company
plans to monitor the option of adding a milling facility which would increase
recoveries and production. The prospect of a mill is dependent on continuing
exploration success and the delineation of additional mineral reserves and this
initiative will be further evaluated in late 2011.
The following is a summary of the updated and current mineral reserves and
mineral resources at Gualcamayo:
-------------------------------------------------------------------------
Mineral Reserves(1)
-------------------------------------------------------------------------
Proven Mineral Reserve Probable Mineral Reserve
-------------------------------------------------------------------------
Au Au
Tonnes (g/t) Oz (Au) Tonnes (g/t) Oz (Au)
-------------------------------------------------------------------------
17,091,074 0.95 522,934 58,575,156 1.04 1,957,370
-------------------------------------------------------------------------
----------------------------------
Mineral Reserves(1)
----------------------------------
Total Proven & Probable
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
75,666,229 1.02 2,479,498
----------------------------------
-------------------------------------------------------------------------
Mineral Resources(2) (inclusive of mineral reserves)
-------------------------------------------------------------------------
Measured Mineral Resource Indicated Mineral Resource
-------------------------------------------------------------------------
Au Au
Tonnes (g/t) Oz (Au) Tonnes (g/t) Oz (Au)
-------------------------------------------------------------------------
22,659,160 1.07 778,953 77,438,467 1.09 2,731,465
-------------------------------------------------------------------------
----------------------------------
Mineral Resources(2)
(inclusive of mineral reserves)
----------------------------------
Total Measured & Indicated
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
100,097,627 1.09 3,510,418
----------------------------------
----------------------------------
Inferred Mineral Resources
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
5,428,130 1.06 184,110
----------------------------------
(1) Mineral reserves use a gold price of $900 per ounce
(2) Mineral resources are estimated at a cut-off grade of 1.0 g/t Au for
QDD Lower West, 0.15 g/t for QDD main open pit, and 0.5 g/t for AIM
Total mineral reserve and mineral resource estimates at Gualcamayo have
increased from those published as at the end of 2009. Proven and probable
mineral reserves have increased by approximately six percent and with the
upgrade of inferred resources, measured and indicated resources have increased
by approximately 29 percent.
The following is a summary of the key operating parameters at Gualcamayo
beginning in 2011 accounting for a combination of the various ores.
Capital cost: approximately $85 million (QDD Lower West mine development)
Cash cost per ounce(1): $395-415
Mining cost per tonne of ore: $4.70-4.90
Plant cost per tonne or ore: $2.50-2.70
G&A and other cost per tonne: $1.30-1.50
Average throughput: approximately 10,000,000 tonnes per year
Initial mine life: 9 years
Plant recovery rate: approximately 71% (cumulative)
Planned sustainable production at Gualcamayo is targeted at more than 190,000
ounces per year. The following is a summary of the updated expected annual
production from Gualcamayo for the next five years.
-------------------------
Year Production (oz)
-------------------------
2011 165-185,000
-------------------------
2012 170-190,000
-------------------------
2013 220-240,000
-------------------------
2014 190-210,000
-------------------------
2015 215-235,000
-------------------------
Average 192-212,000
-------------------------
The Company views the increase in production at Gualcamayo from QDD Lower West
as a base case scenario which may be improved upon with more ounces discovered
and with the evaluation of the milling concept as noted above.
Further exploration efforts continue at QDD Lower West. Yamana believes mineral
reserves and mineral resources at Gualcamayo will continue to be increased
significantly, particularly at QDD Lower West. During the first half of 2010,
40 drill holes totaling 9,964 metres were completed from underground
development at the west end of the QDD Lower West ore body. The drilling,
designed to upgrade inferred mineral resources, resulted in an increase in the
measured and indicated mineral resources category and confirmed that the QDD
Lower West ore body remains open to the west. One kilometre further to the
west, at the 3D target, the Rodado tunnel was completed to a length of 300
metres and underground drilling commenced at the end of May 2010. The strike
length of QDD Lower West has the potential to double to more than 2 kilometres.
The Company will evaluate how additional mineral resources from this
exploration plan will further contribute to gold production, particularly in
later years with the objective of maintaining the sustainable production plan
exceeding an average of 190,000 ounces per year through 2020.
In the second quarter of 2010, production at Gualcamayo was 37,467 ounces
representing an increase of over 8,000 ounces or 27 percent compared to the
first quarter of 2010. Total gold production at Gualcamayo for the first half
of 2010 was 66,928 ounces at cash cost of $434 per ounce. Production was
entirely from the QDD open pit operations only. Yamana expects production at
Gualcamayo to increase sequentially quarter-over-quarter similar to 2009 and
that it will achieve planned levels of production for the remainder of the
year.
Pilar, Brazil
Construction Decision
---------------------
Yamana also announced today that it has made a construction decision on its 100
percent owned Pilar project in Brazil. The decision was based on a recently
completed positive feasibility study which delivered the first mineral reserve
estimate for Pilar.
The Pilar project is a gold project located in Goias, Brazil, approximately 300
kilometres northwest of the city of Brasilia and approximately 70 kilometres
south of Yamana's Chapada mine. Pilar is located east of the Crixas Greenstone
Belt which hosts the Serra Grande gold mine and the Guarinos Greenstone Belt
which is east of the Crixas Belt and similar in shape and size. The Crixas and
Pilar gold mineralization have very similar structural control, hydrothermal
alteration, stratigraphy and tectonic history, and are approximately 40
kilometres apart. Yamana controls approximately 65,000 hectares of mineral
claims and permits that cover the majority of the Guarinos and Pilar Greenstone
belts.
The Company has also provided an exploration update on its extension drilling
program at Pilar and will continue its exploration efforts with the view of
increasing overall mineral resources. During the permitting period, which is
expected to continue into the first quarter of 2011, the Company will continue
to advance exploration and development work to upgrade mineral resources to
mineral reserves. The vein structure of the ore body varies in width. Hence,
additional delineation work will allow for more reliability once production
begins, which is targeted for mid-2013. Earth work is expected to begin in
early to mid 2011 (after the rainy season and following the completion of
permitting) and construction is expected to take 24-30 months.
The following is a summary of the current mineral reserves and mineral
resources for the Jordino deposit at Pilar based on drill results up until the
end of April 2010:
-------------------------------------------------------------------------
Mineral Reserves(1, 2, 3)
-------------------------------------------------------------------------
Proven Mineral Reserve Probable Mineral Reserve
-------------------------------------------------------------------------
Au Au
Tonnes (g/t) Oz (Au) Tonnes (g/t) Oz (Au)
-------------------------------------------------------------------------
- - - 8,871,089 4.01 1,144,894
-------------------------------------------------------------------------
----------------------------------
Mineral Reserves(1, 2, 3)
----------------------------------
Total Proven & Probable
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
8,871,089 4.01 1,144,894
----------------------------------
-------------------------------------------------------------------------
Mineral Resources(2) (inclusive of mineral reserves)
-------------------------------------------------------------------------
Measured Mineral Resource Indicated Mineral Resource
-------------------------------------------------------------------------
Au Au
Tonnes (g/t) Oz (Au) Tonnes (g/t) Oz (Au)
-------------------------------------------------------------------------
- - - 7,658,576 4.94 1,215,846
-------------------------------------------------------------------------
----------------------------------
Mineral Resources(2)
(inclusive of mineral reserves)
----------------------------------
Total Measured & Indicated
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
7,658,576 4.94 1,215,846
----------------------------------
----------------------------------
Inferred Mineral Resources
----------------------------------
Au
Tonnes (g/t) Oz (Au)
----------------------------------
207,650 5.27 35,155
----------------------------------
(1) Mineral reserves use a gold price of $900 per ounce
(2) Mineral reserves and mineral resources are estimated at a 2.0 g/t Au
cut-off grade.
(3) Mineral reserves include dilution of 1.83 million tonnes of waste
grading 0.41 g/t Au.
Total mineral resources (including reserves) for the Jordino deposit increased
by 32 percent from the published estimate for mineral resources as at the end
of 2009. The new mineral reserves at Pilar increase the Company's total proven
and probable mineral reserves by seven percent to 18.7 million ounces of gold.
Pilar, based on production, mineral reserves and resources, and anticipated
further exploration success, now represents one of the more significant
projects for Yamana.
Key parameters of the Pilar feasibility study include:
Capital cost: approximately $180 million
Cash cost per ounce(1): $430-460
Mining cost per tonne of ore: $34-36
Plant cost per tonne of ore: $12-14
G&A and other cost per tonne of ore: $6-8
Average throughput: approximately 1,000,000 tonnes per year
Average annual production: approximately 120,000 ounces of gold
Initial mine life: 9 years
Plant recovery rate: 95%
The after-tax internal rate of return (IRR) exceeds the planned corporate
objective of at least 20 percent.
Pilar is planned as an underground mine with ore being extracted through the
room and pillar method with a conventional milling, gravity and carbon in pulp
processing plant.
Further Exploration
-------------------
Drilling during the first half of 2010 has focused on extending the main
Jordino mineralization down dip. 18,000 metres of diamond drilling has been
completed to date this year (See Figure 1) and the Company continues to report
positive results, mainly in the north portion of the Jordino trend, where a 700
metre down dip extension of mineralization has been confirmed with significant
gold grades along a strike length of 400 metres (See Figure 2). This down dip
extension is currently double the dip length of the current mineral resource
implying significant exploration upside and mineral resource growth.
---------------------------------------------------
Hole No. From (m) To (m) Length Au (g/t)
---------------------------------------------------
JD_311 350.33 351.43 1.1 2.02
---------------------------------------------------
JD_313 330.00 331.00 1 18.1
---------------------------------------------------
JD_313 403.93 404.43 0.5 3.16
---------------------------------------------------
JD_314 313.40 314.07 0.67 2.27
---------------------------------------------------
JD_314 315.08 316.00 0.92 1.55
---------------------------------------------------
JD_314 333.00 334.00 1 4.28
---------------------------------------------------
JD_314 365.93 366.00 0.57 1.67
---------------------------------------------------
JD_315 253.00 253.50 0.5 4.69
---------------------------------------------------
JD_315 418.51 420.31 1.8 1.33
---------------------------------------------------
JD_317 396.00 397.00 1 2.54
---------------------------------------------------
JD_317 460.99 461.48 0.49 17.8
---------------------------------------------------
JD_317 465.00 466.00 1 4.3
---------------------------------------------------
JD_318 264.00 265.09 1.09 2.5
---------------------------------------------------
JD_318 284.40 284.90 0.5 55.4
---------------------------------------------------
JD_318 289.48 289.97 0.49 6.05
---------------------------------------------------
JD_319 211.00 211.51 0.51 14.2
---------------------------------------------------
JD_320 219.13 219.65 0.52 3.64
---------------------------------------------------
JD_320 352.54 353.04 0.5 3.08
---------------------------------------------------
JD_321 391.50 392.00 0.5 8.96
---------------------------------------------------
JD_321 414.50 415.50 1 3.33
---------------------------------------------------
JD_321 420.50 421.00 0.5 6.1
---------------------------------------------------
JD_322 382.00 384.00 2 2.7
---------------------------------------------------
JD_322 464.50 466.19 1.69 1.94
---------------------------------------------------
JD_323 408.00 409.00 1 2.29
---------------------------------------------------
JD_323 382.00 383.00 1 1.67
---------------------------------------------------
JD_328 280.07 281.06 0.99 4.54
---------------------------------------------------
JD_330 243.29 245.00 1.71 2.74
---------------------------------------------------
JD_325 427.00 427.50 0.5 5.1
---------------------------------------------------
JD_325 430.00 430.50 0.5 4.54
---------------------------------------------------
JD_326 540.00 540.50 0.5 4.88
---------------------------------------------------
JD-328 280.07 281.06 0.99 4.54
---------------------------------------------------
JD-329 203.00 203.86 0.86 9.06
---------------------------------------------------
JD_332 303.00 304.00 1 11.5
---------------------------------------------------
JD_334 366.50 367.10 0.6 44.3
---------------------------------------------------
JD_334 375.68 376.18 0.5 5.14
---------------------------------------------------
JD_334 395.70 397.00 1.3 13.5
---------------------------------------------------
An additional 15,000 metres of drilling will be completed on the Jordino
deposit to extend the deposit down dip along its entire strike length of more
than 1,200 metres. Based on drilling results, the mineral resource has the
potential to significantly increase from its currently estimated size. An
updated mineral resource estimate is expected be completed by the year end of
2010.
Further Development Update
Mercedes, Mexico
The Mercedes Project (See Figure 3) continues to advance with production
expected to begin in 2012. During the development period, the Company has
undertaken a significant exploration program given the strong upside growth
potential, as highlighted by an over 50% year-over-year increase in cumulative
total mineral resources from 2008 to 2009. The Company anticipates a similar
increase in 2010.
Mercedes is planned as an initial 120,000 GEO per year mine for a period of ten
years. The Company will further evaluate the potential to increase annual
production as it advances its exploration program.
Drilling in 2010 to date has been very encouraging. Most notably, Yamana has:
1) Expanded the mineral resource and identified new epithermal veins
within a 1080-metre strike length of the Barrancas structural
corridor, including hole M10-490D, with a drill intercept of 27.46
metres (15.10 metres estimate TW) at 10.51 g/t Au and 94.3 g/t
Ag, and
2) Intersected a significant new mineralized zone, named Diluvio,
within the Lupita Vein structure, including the discovery hole
L10-073D with a drill intercept of 31.44 metres (16.03 metres
estimate TW) at 8.40 g/t Au and 11.9 g/t Ag.
Las Barrancas
-------------
Drilling in 2010 has been focused primarily in the Barrancas zone, centered 2.0
km northwest of the Mercedes Mill site. High grade mineralization was first
intersected in the Barrancas Vein Zone in June 2009. It is the first blind vein
to be discovered in the Mercedes Project area, and provides other large
prospective areas for exploration. Subsequent drilling since June 2009 has
identified ore grade mineralization in several zones along 900 metres of strike
length, with an initial inferred mineral resource estimate of 205,000 gold
equivalent ounces at a grade of 6.05 g/t AuEq.
2010 Drilling has focused on both 1) 60-metre step-out drilling to define
limits of mineralization outside the 2009 mineral resource grade shells; and 2)
30-metre infill drilling on a 300-metre strike length covering the Barrancas
Hondo ore zone. A total of 10,098 metres in 37 holes have been completed, with
three core rigs currently on-site.
Results have been encouraging as both of the principal ore shoots (Hondo and
Lagunas) were extended beyond limits defined in 2009. The Barrancas Zone has
been extended to a strike length of 1080 metres and is open to the northwest,
as shown by hole M10-501D (1.5 metres grading 15.92 g/t Au and 38.0 g/t Ag).
In-fill drilling in the Hondo zone has also intersected the widest ore zones
yet identified in Barrancas, locally to +15.0 metres in true width (including
hole M10-490, with 15.10 metres true width at 10.51 g/t Au and 94.3 g. /t Ag).
Highlights from the 2010 drilling include the following intercepts (at a 2.0 g/
t AuEq cutoff) (See Figure 4):
------------------------------------------------------------------------
True
Hole Section From To Interval Width Au Ag AuEq
(m) (m) (m) (m) g/t g/t g/t
------------------------------------------------------------------------
M10-487 11,020 289.56 298.70 9.14 7.19 6.71 48.7 7.03
------------------------------------------------------------------------
M10-488 10,900 183.90 187.34 3.44 1.15 19.93 93.1 20.55
------------------------------------------------------------------------
M10-490 11,080 171.45 184.88 13.43 8.20 8.68 100.5 9.35
M10-490 11,080 and 220.70 225.55 4.85 4.45 11.83 119.8 12.63
------------------------------------------------------------------------
M10-492 11,440 162.14 165.66 3.52 3.00 4.67 44.9 4.97
M10-492 11,440 and 179.83 182.27 2.44 2.08 3.78 63.2 4.20
------------------------------------------------------------------------
M10-493 11,140 208.00 235.46 27.46 15.10 10.51 94.3 11.14
------------------------------------------------------------------------
M10-496 11,680 237.74 244.45 6.71 5.17 3.47 25.1 3.64
------------------------------------------------------------------------
M10-497 11,320 145.00 148.33 3.33 1.50 4.63 73.9 5.12
M10-497 11,320 and 201.90 204.76 2.86 1.64 3.35 81.5 3.89
------------------------------------------------------------------------
M10-500 11,920 212.45 215.80 3.35 2.45 5.84 228.2 7.36
M10-500 11,920 and 238.00 241.71 3.71 2.60 2.70 39.1 2.96
M10-500 11,920 and 242.93 251.16 8.23 5.76 2.28 37.1 2.53
------------------------------------------------------------------------
M10-501 11,980 205.15 206.65 1.50 1.01 15.92 38.0 16.17
------------------------------------------------------------------------
M10-503 11,680 271.27 273.94 2.67 2.00 6.10 37.5 6.35
------------------------------------------------------------------------
M10-505 11,140 165.00 170.99 4.49 3.59 6.02 44.1 6.31
------------------------------------------------------------------------
M10-506 11,080 206.65 210.70 4.05 3.25 3.73 79.6 4.26
------------------------------------------------------------------------
M10-509 11,080 216.89 248.41 31.52 19.90 5.51 80.5 6.05
------------------------------------------------------------------------
M10-511 11,140 199.64 206.10 6.46 3.90 17.07 118.3 17.86
------------------------------------------------------------------------
M10-512 11,020 149.45 154.36 4.91 3.20 4.88 28.4 5.07
M10-512 11,020 and 203.61 205.13 1.52 1.00 5.44 40.2 5.71
M10-512 11,020 and 269.14 272.19 3.05 2.45 10.37 95.1 11.00
------------------------------------------------------------------------
A 20,000 metre drill budget has been approved to accelerate 30-metre infill
drilling at Barrancas for mineral reserve definition. Four core rigs will be
on-site in August 2010 to continue with the program.
Lupita
------
Drilling in 2010 at Lupita has focused on testing extensions of the 75,000 gold
equivalent ounce mineral resource area outlined in 2009, as well as exploratory
drilling further east in the vein zone. A total of 7,019 metres in 27 core
holes have been drilled year-to-date. Lupita is located three kilometres
northwest of the Mercedes vein.
Drilling has closed off the 2009 mineral resource zone, with one small
extension area noted on the east side (L10-50D, with 3.66 metres at 33.69 g/t
Au and 50.2 g/t Ag.) More importantly, exploratory drilling has intersected a
significant new zone of mineralization, named Diluvio, approximately 600 metres
NE of the resource zone. A total of 13 wide-spaced holes (in a surface area of
450 x 200 metres) have intersected a broad zone of multi-stage low sulfidation
carbonate-quartz-adularia veins and stockworks ranging from 10.0 to 150.0
metres in true width. The vein zone flairs dramatically in width at depths of
200-300 metres; down dip from surface vein outcrops ranging from 1.0 to 4.0
metres in width. The veining appears to be localized along a series of moderate
to low angle structures both at the lower andesite contact and extending into
the underlying quartz lithic tuff. The zones are also cut by local high angle
epithermal veins.
Broad intervals of mineralization averaging 1.5 to 2.0 g/t AuEq (at a 0.5 g/t
AuEq cutoff) are present in the main block; including an interval of 91.0
metres true width at 1.32 g/t Au and 21.4 g/t Ag in hole L10-69D. Higher grade
intervals are restricted in width but are present in most holes. However, two
outlying holes 120 metres to the north of the block intersected higher gold
grades, suggesting that there may be significant high-grade potential within
the system amenable to underground mining:
- L10-073D
(120 metres to North): 31.44 metres at 8.40 g/t Au and 11.9 g/t Ag
- L10-67D
(120 metres to NW): 0.55 metres at 22.60 g/t Au and 268.0 g/t Ag
And 4.30 metres at 7.10 g/t Au and 35.7 g/t Ag
Highlights from the 2010 drilling include the following intercepts (at a 0.5 g/
t and 2.0 g/t AuEq cutoff) (See Figure 5):
-------------------------------------------------------------------------
Cutoff True
Hole Section (g/t From To Interval Width Au Ag
AuEq) (m) (m) (m) (m) g/t g/t
-------------------------------------------------------------------------
L10-050 5240 2.0 214.27 217.93 3.66 3.21 33.69 50.2
-------------------------------------------------------------------------
L10-061 5540 0.5 259.93 310.90 50.97 49.30 1.39 26.9
L10-061 5540 with 2.0 291.08 304.08 13.72 13.22 3.05 36.6
-------------------------------------------------------------------------
L10-064 5600 and 0.5 240.84 270.66 29.82 24.45 0.80 90.5
L10-064 5600 and 2.0 266.09 268.36 2.28 1.87 4.85 32.5
-------------------------------------------------------------------------
L10-066 5540 0.5 298.70 347.33 48.63 46.00 1.26 25.8
L10-066 5540 with 2.0 298.70 299.76 1.06 1.01 0.12 522.0
L10-066 5540 and 2.0 314.21 316.87 2.66 2.53 3.53 13.5
L10-066 5540 and 2.0 327.06 330.71 3.65 3.47 2.22 6.5
L10-066 5540 and 2.0 333.76 336.86 3.10 2.95 4.05 7.5
-------------------------------------------------------------------------
L10-067 5540 2.0 258.52 259.08 0.56 0.53 5.02 41.1
L10-067 5540 and 2.0 286.19 286.78 0.59 0.55 22.60 268.0
L10-067 5540 0.5 298.20 321.56 23.36 21.96 1.83 19.7
L10-067 5540 with 2.0 307.85 312.42 4.57 4.30 7.10 35.7
-------------------------------------------------------------------------
L10-068 5600 0.5 253.97 271.27 17.30 14.90 0.88 19.8
-------------------------------------------------------------------------
L10-069 5600 0.5 228.60 329.18 100.58 91.00 1.32 21.4
-------------------------------------------------------------------------
L10-069 5600 with 2.0 246.89 249.94 3.05 2.75 2.92 6.6
L10-069 5600 and 2.0 251.46 266.70 15.24 13.72 2.98 9.2
L10-069 5600 and 2.0 268.22 270.29 2.07 1.86 3.36 24.0
L10-069 5600 and 2.0 284.42 286.51 2.09 1.88 3.08 78.9
L10-069 5600 and 2.0 309.37 312.62 3.25 2.93 4.26 61.7
-------------------------------------------------------------------------
L10-071 5660 0.5 233.18 261.17 27.99 25.00 2.16 29.1
L10-071 5660 with 2.0 243.84 246.89 3.05 2.71 8.24 25.7
L10-071 5660 and 2.0 249.94 251.26 1.32 1.17 3.22 7.7
L10-071 5660 and 2.0 253.72 260.02 6.48 5.77 2.58 40.2
-------------------------------------------------------------------------
L10-072 5600 0.5 234.39 280.11 45.72 41.00 1.97 19.6
L10-072 5600 with 2.0 240.49 246.08 5.59 4.90 3.72 12.9
L10-072 5600 and 2.0 264.87 270.97 6.10 5.35 3.94 14.0
-------------------------------------------------------------------------
L10-073 5720 0.5 202.08 259.99 57.91 29.53 5.47 9.8
L10-073 5720 with 2.0 202.08 233.52 31.44 16.03 8.40 11.9
L10-073 5720 and 2.0 241.25 243.23 1.98 1.01 14.65 21.7
L10-073 5720 2.0 320.95 324.00 3.05 1.56 7.96 12.8
L10-073 5720 0.5 339.24 350.72 11.48 5.85 1.43 12.4
-------------------------------------------------------------------------
L10-074 5720 0.5 232.30 253.89 21.59 11.01 0.66 32.5
L10-074 5720 with 2.0 249.33 250.85 1.52 0.78 2.12 58.7
L10-074 5720 0.5 263.48 273.71 10.23 5.22 0.89 85.4
-------------------------------------------------------------------------
L10-075 5840 0.5 368.51 381.95 13.44 11.10 2.07 17.7
L10-075 5840 with 2.0 371.70 377.85 6.15 5.07 3.47 20.3
-------------------------------------------------------------------------
Drilling to date has only tested approximately 55% of the exposed strike length
of the 1500-metre long Lupita Vein Zone. The Diluvio zone is completely open to
the north down-dip and to the east on strike. Additional wide-spaced
exploratory drilling will be conducted after the end of the monsoon season, to
define limits of mineralization and test for continuity of higher-grade zones.
A minimum of 7,000 metres of core drilling is currently budgeted to continue
exploration in this very prospective new target area.
Further mine exploration and development update
El Penon, Fazenda Brasileiro and Jacobina
The Company continues with significant exploration efforts at all its mines
with a particular focus on El Penon, Fazenda Brasileiro and Jacobina, and
intends to provide a further exploration update for these mines by the end of
2010.
Chapada, Brazil
Yamana is currently advancing a feasibility-level study for Suruca, the new
gold mineralized area at Chapada, which the Company expects to complete by the
end of 2010. A total of 15,500 metres of extension and infill diamond drilling
was completed in 2010 and the results have extended Suruca from 500 metres
along strike to 1,100 metres along strike and showed that the mineralization
remains open to northeast. An 800 metre section of the northeast part of the
deposit has been drilled on 100 metre spacing. The Company believes Suruca will
provide substantial gold only production growth at this already robust and long
life mine. The Company contemplates a shallow open pit operation with ore
hauled to the Chapada plant for processing.
Jeronimo, Chile
Yamana holds a 57% controlling and operating interest in the Jeronimo project,
which is located in Region II of northern Chile. Yamana continues to advance
Jeronimo having made significant advancements in metallurgical testwork and
intends to deliver a feasibility study in late 2011.
Quality Assurance and Quality Control
Yamana incorporates a rigorous Quality Assurance and Quality Control program
for all of its mines and exploration projects which conforms to industry Best
Practices as outlined by the CSE and National Instrument 43-101. This includes
the use of independent third party laboratories and the use of professionally
prepared standards and blanks and analysis of sample duplicates with a second
independent laboratory.
Qualified Person
Evandro Cintra, P.Geo., Senior Vice President, Technical Services of Yamana
Gold Inc. has reviewed and confirmed the scientific and technical information
contained within this news release in relation to Gualcamayo and Pilar and
serves as the Qualified Person as defined in National Instrument 43-101.
Sergio Brandao Silva, P.Geo., Brazil Exploration Director of Yamana Gold Inc.
has reviewed and confirmed the drilling and exploration information contained
within this news release in relation to Pilar and serves as the Qualified
Person as defined in National Instrument 43-101.
Mark Hawksworth, P. Geo, Mercedes Project Exploration Manager for Yamana Gold
Inc. has reviewed and confirmed the scientific and technical information
contained within this news release in relation to Mercedes and serves as the
Qualified Person as defined in National Instrument 43-101.
About Yamana
Yamana is a Canadian-based gold producer with significant gold production, gold
development stage properties, exploration properties, and land positions in
Brazil, Argentina, Chile, Mexico and Colombia. Yamana plans to continue to
build on this base through existing operating mine expansions, throughput
increases, development of new mines, the advancement of its exploration
properties and by targeting other gold consolidation opportunities with a
primary focus in the Americas.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release
contains or incorporates by reference "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Except for statements of
historical fact relating to the Company, information contained herein
constitutes forward-looking statements, including any information as to the
Company's strategy, plans or future financial or operating performance.
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 projects and exploration programs discussed herein being
met, the impact of general business and economic conditions, global liquidity
and credit availability on the timing of cash flows and the values of assets
and liabilities based on projected future conditions, fluctuating metal prices
(such as gold, copper, silver and zinc), currency exchange rates (such as the
Brazilian Real, the Chilean Peso and the Argentine Peso versus the United
States Dollar), possible variations in ore grade or recovery rates, changes in
the Company's hedging program, changes in accounting policies, changes in the
Company's corporate resources, risk related to non-core mine dispositions,
changes in project parameters as plans continue to be refined, changes in
project development, construction, production and commissioning time frames,
risk related to joint venture operations, the possibility of project cost
overruns or 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 time lines, government
regulation of mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, limitations on insurance coverage and
timing and possible outcome of pending litigation and labour disputes, as well
as those risk factors discussed or referred to in the Company's annual
Management's Discussion and Analysis and Annual Information Form for the year
ended December 31, 2009 filed with the securities regulatory authorities in all
provinces of Canada and available at www.sedar.com, and the Company's Annual
Report on Form 40-F filed with the United States Securities and Exchange
Commission. Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. The Company undertakes no obligation to
update forward-looking statements if circumstances or management's estimates,
assumptions or opinions should change, except as required by applicable law.
The reader is cautioned not to place undue reliance on forward-looking
statements. The forward-looking information contained herein is presented for
the purpose of assisting investors in understanding the Company's expected
exploration, development and operational plans and may not be appropriate for
other purposes.
NON-GAAP MEASURES
The Company has included certain non-GAAP measures including "Co-product cash
costs per gold equivalent ounce". The Company believes that these measures,
together with measures determined in accordance with Canadian GAAP, provide
investors with an improved ability to evaluate the underlying performance of
the Company. Non-GAAP measures do not have any standardized meaning prescribed
under Canadian GAAP, and therefore they may not be comparable to similar
measures employed by other companies. The data is intended to provide
additional information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with Canadian
GAAP
CO-PRODUCT CASH COSTS
The Company has included cash costs per GEO information because it understands
that certain investors use this information to determine the Company's ability
to generate earnings and cash flows for use in investing and other activities.
The Company believes that conventional measures of performance prepared in
accordance with Canadian GAAP do not fully illustrate the ability of its
operating mines to generate cash flows. The measures are not necessarily
indicative of operating profit or cash flows from operations as determined
under Canadian GAAP. Cash costs per GEO are determined in accordance with the
Gold Institute's Production Cost Standard and are calculated on a co-product
basis. Cash costs on a co-product basis are computed by allocating operating
cash costs separately to metals (gold and copper) based on an estimated or
assumed ratio.
To see the maps attached to this press release, please go to: http://
files.newswire.ca/797/YRIMaps.pdf
----------------------------------------------
(1) Cash costs per GEO is a non-GAAP measure. A definition is provided at
the end of this press release.
For further information: For further information: Letitia Wong, Director,
Investor Relations, (416) 815-0220, Email: investor(at)yamana.com,
www.yamana.com; MEDIA INQUIRIES: Mansfield Communications Inc., Hugh Mansfield,
(416) 599-0024
(YRI. AUY YAU)
END
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