Growth - Value - Vision
Brazil, Argentina, Chile, Mexico - Yamana is targeting sustainable gold production of 2.2 M oz of gold by 2012.
Yamana Gold Inc. Toronto, Ontario. TSX: YRI; NYSE: AUY; and LSE: YAU,
Yamana is a leading Canadian-based gold mining company with significant gold production, gold development stage properties, exploration properties.
Brazil, Argentina, Chile, Mexico and Central America.
Yamana is producing gold and other precious metals at intermediate company production levels in addition to significant copper production.
The company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in Brazil, Argentina and elsewhere in the Americas.
The company is targeting sustainable production at 2.0 million gold equivalent ounces in 2012.
Common Shares Outstanding (basic): 710.6M
Common Shares Outstanding (fully diluted): 730.5M
Warrants Outstanding: 14.4M
Options Outstanding: 5.5M
The Mercedes project is located in northern Sonora, Mexico approximately 200 kilometres south of Tucson, Arizona.
The deposit consists of a complex gold-silver hydrothermal low-sulphidation vein/stockwork system with several mineralized structures discovered to date, two of which, the Mercedes and Klondike veins, have been significantly advanced and support development of Mercedes as a mine.
In 2008, 74,000 metres of mostly infill drilling were completed to delineate mineralization in the Mercedes and Klondike areas, resulting in a significant conversion of inferred resources to indicated resources. A total of 140,000 metres of exploration and infill drilling has been completed to date.
The Mercedes mineral reserves estimate as of December 2008 includes probable reserves of 2.65 million tonnes grading 7.58 g/t gold equivalent containing 645,000 gold equivalent ounces (GEO).
Yamana intends to continue to advance the project in 2009. Yamana is continuing to drill at Mercedes targeting 30,000 metres of drilling in 2009, with a budget of approximately $4.0 million.
Construction of the mine is expected to take approximately two years and, provided that a construction decision is made not later than Q1 2010,
Yamana expects to be in production at Mercedes by 2012.
The Ernesto/Pau-a-Pique project is located in southwest Mato Grosso state, near Pontes e Lacerda in Brazil. The Ernesto deposit is approximately 60 kilometres south of Yamana's Sao Francisco mine.
The Pau-a-Pique deposit is approximately 56 kilometres by road south of the Ernesto deposit. The significant existing infrastructure including paved roadways supports the development of Ernesto/Pau-a-Pique as two mines with a common plant.
The deposits are hosted by meta-sedimentary rocks of Proterozoic age and at the contact with underlying granitic basement rocks. The gold mineralization is hosted by quartz veins in the metasedimentary rocks (arenites and conglomerates) or associated with shear zones at the contact of the metasediments with the underlying granite basement.
At Ernesto, gold-rich quartz veins and veinlets occur within a thick, low-angle structure at the base of the meta-sedimentary sequence and within sulphidic horizons in overlying altered meta-arenite units.
Yamana plans to continue with additional exploration in 2009, focusing on infill drilling at Ernesto in particular.
The Ernesto/Pau-a-Pique mineral resources estimate, based on cut off grades of 1.0 g/t gold for the open pit and 1.5 g/t gold for underground, includes indicated resources of 3.95 million tonnes grading 4.67 g/t gold containing 593,000 ounces of gold and inferred resources of 3.14 million tonnes grading 3.02 g/t gold containing 305,000 ounces of gold.
An infill program is planned for 2009 to support a feasibility study and construction decision by the end of the year. Yamana believes that Ernesto/Pau-a-Pique has significant merit.
Given the robust return, high grade, comparatively low capital cost and significant infrastructure supporting the project, Yamana's capital cost budget includes the costs for construction beginning in 2010, and anticipates Ernesto/Pau-a-Pique will be in production in 2012.
Total capital costs are expected to be approximately $86 million through 2010 and 2011. Total annual production is expected to be approximately 100,000 ounces of gold with an average cash cost of approximately $356 per ounce.
Yamana's objective, completing a feasibility-level study by the end of 2009.
In 2008, Yamana invested approximately $6.1 million and drilled approximately 23,000 metres at its Pilar project in Goias state, Brazil. Exploration in 2009 contemplates a budget of approximately $4.0 million and 20,000 metres of drilling planned. In less than a year, an inferred mineral resource estimate of 12.4 million tonnes grading 2.42 g/t gold and containing approximately 970,000 ounces of gold was delivered, and more than 43,000 metres of drilling has been completed to date.
An update to Pilar's resource estimate is expected in Q2 2009 which will include the drilling information completed in 2008. Pilar is advancing rapidly to the development stage and Yamana anticipates that Pilar will be developed in part as an open pit and also as an underground mine.
El Penon, Chile
In 2009, Yamana plans to spend approximately $12 million on drilling and other exploration at its El Penon mine, principally focusing on the North Block with the objective of discovering another 600,000 GEO this year. Yamana continues to evaluate a conceptual plan to further increase production beyond the expected production levels for 2009 and 2010 as more resources are discovered.
ONGOING PRODUCTION TARGET
Yamana continues with its plan to increase total annual production to 2.0 million GEO in 2012. The advancement of these development stage projects once construction decisions are made would advance Yamana toward that target.
- Update to Pilar resource estimate: Q2 2009
- Pilar initial feasibility study: H2 2009
- Update to C1 Santa Luz economic analysis: Q2 2009
- C1 Santa Luz construction decision: H2 2009
- Ernesto/Pau-a-Pique feasibility study and construction decision: by end of 2009
- Mercedes feasibility study and construction decision: By Q1 2010
- Pilar construction decision: Q1 2010