RNS Number : 8168U
Yamana Gold Inc.
30 March 2023
 

Yamana Gold Reports Updated Mineral Reserves and Mineral Resources highlighting the sustainability of its production platform

 

TORONTO, March 29, 2023 Yamana Gold Inc. (TSX:YRI; NYSE:AUY; LSE:AUY) ("Yamana" or the "Company") herein provides its updated mineral reserve and mineral resource estimates as at December 31, 2022 highlighting the ongoing sustainability of the Company's production platform. The Company's continued success in replacing mineral reserves is further underscored by its strong 2022 operating results which, as previously reported, exceeded annual guidance with full year production of 1,005,770 gold equivalent ounces ("GEO")(1) at an all-in sustaining cost ("AISC")(2) below $1,125 per GEO(1).

 

Following the overwhelming support of the respective special resolutions of the shareholders of each of  Yamana and Pan American Silver Corp. ("Pan American") on January 31, 2023, in connection with approving the acquisition by Pan American of all of the issued and outstanding common shares of the Company following the sale by Yamana of its Canadian assets, including certain subsidiaries and partnerships which hold Yamana's interests in the Canadian Malartic mine, to Agnico Eagle Mines Limited, all by way of a plan of arrangement under the Canada Business Corporations Act (the "Proposed Transaction"), this news release is anticipated to be Yamana's final announcement covering mineral reserve and mineral resource update matters. Further details including tonnes, grade and assumptions are presented in the full Mineral Reserves and Mineral Resources table below while all Mineral Resources reported herein are exclusive of Mineral Reserves. The Proposed Transaction is expected to close by the end of the month.

 

Yamana also announces that it has filed its consolidated fourth quarter and year-end 2022 financial results, which are available under the Company's profile on SEDAR at www.sedar.com and on the Company's website.

 

HIGHLIGHTS

 

•     Track Record of Mineral Reserves Replacement: On an aggregate basis across its wholly-owned operations, the Company replaced gold mineral reserves by 104% of depletion highlighting the sustainability and longevity of its production platform.

•     Continued Success of Mineral Reserve Growth at Jacobina: Jacobina had another year of mineral reserve and mineral resource growth, adding approximately 35,000 ounces of gold mineral reserves, or 117% of depletion. Gold mineral reserves have grown by 57% or more than 1 million ounces net of depletion over the past five years to 2.97 million ounces and mineral resources have increased by 80% over the same period, as detailed below. The track record of growth in mineral reserves and mineral resources at Jacobina underpins its significant prospectivity and geological upside.

•     Conversion of Inferred Mineral Resources at Odyssey: At Odyssey, the ongoing infill drilling program continues to increase the inventory of indicated mineral resources to support the potential conversion of mineral resources to mineral reserves. Indicated gold mineral resources increased by over 3.81 million ounces to 6.17 million ounces with total inferred resources at year end of 9.23 million ounces (100% basis). 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 mineral resource envelope highlighting the generational nature of the deposit.

•     Fifth Consecutive Year of Increasing Mineral Reserves at El Peñón: El Peñón achieved a fifth consecutive year of adding mineral reserves in excess of depletion, with mineral reserves growing 4% to 1.37 million GEO(1), or by 123% of depletion, over the last year.

•     Company-wide Mineral Reserves and Mineral Resources Show Significant Scale: As at December 31, 2022, the Company reports 13.8 million ounces of gold mineral reserves and 112 million ounces of silver mineral reserves, relatively unchanged from the prior year. Further, the Company reports measured and indicated mineral resources of 17.1 million ounces of gold, 52 million ounces of silver, and 1.4 billion pounds of copper exclusive of mineral reserves, with measured and indicated gold mineral resources up 18% from the prior year. Inferred mineral resources contain 13.3 million ounces of gold, 60 million ounces of silver, and 2.13 billion pounds of copper. At the Company's development projects, mineral reserves of 7.4 million ounces of gold, 57 million ounces of silver, and 6.7 billion pounds of copper represent significant upside potential within the existing portfolio.

 



 

YEAR END MINERAL RESERVES AND MINERAL RESOURCES SUMMARY

 

Canadian Malartic including Odyssey, Canada (50%)

 

The Canadian Malartic & Barnat Open Pit saw a decrease of approximately 263,000 ounces of gold in proven and probable mineral reserves (reflecting the Company's 50% interest) driven primarily by depletion of 360,000 ounces of gold (50% interest) as the Canadian Malartic pit enters into its final years of operation and open pit mining transitions to the Barnat pit. With initial production from the underground Odyssey mine at Canadian Malartic having commenced earlier this month, an initial small portion of the indicated mineral resources at the Odyssey South deposit was converted to probable mineral reserves as at December 31, 2022, adding 98,000 ounces of gold in mineral reserves (50% interest).  A substantial addition of mineral reserves is expected at the Odyssey project at year-end 2023 with the conversion of indicated mineral resources at the East Gouldie deposit where continued conversion drilling success resulted in the addition of 1.9 million ounces of gold in indicated mineral resources (50% interest) during the year.

 

Figure 1: Change in Proven and Probable Mineral Reserves at Canadian Malartic

(i)            Adjustments for stockpile inventory variation and optimizations

At the Odyssey project, underground development remains on schedule with initial production and start of shaft sinking expected in March 2023. With only 0.4 million ounces of gold in indicated mineral resources and 6.9 million ounces of gold in inferred mineral resources, or approximately 47% of the Odyssey mineral resources included in the mine plan outlined in the March 2021 technical study on a 100% basis, there is significant upside potential to a mine life already expected to last until at least 2039. 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 flow 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.

 

Drilling demonstrates that the East Gouldie deposit also extends significantly to the west of the mineral resource envelope at significant 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. Thirteen drill rigs are currently active on the property, with five underground drills in the Odyssey South and Internal zones and eight surface drills focused on infilling and expanding the East Gouldie mineralization.

 



 

Jacobina, Brazil

 

Jacobina had another successful year of exploration, adding approximately 35,000 ounces of gold mineral reserves net of depletion, with additions of 239,000 gold ounces amounting to 117% of depletion. Gold mineral reserves have grown by 57% or more than 1 million ounces over the past five years to 2.97 million ounces. Mineral resources have increased by 80% over the same period, with mineral resources, exclusive of mineral reserves, increasing by 328,000 ounces of gold in measured and indicated mineral resources and 30,000 ounces of gold in inferred mineral resources versus the prior year. Mineral reserves average gold grade is unchanged from the previous year at 2.18 g/t. Highlights from 2022 include ongoing infill drilling success at João Belo Sul and Morro do Vento and successful exploration drilling at the new Morro do Vento Leste zone.

 

Figure 2: Change in Proven and Probable Mineral Reserves at Jacobina

(i)        Additions from infill drilling and new mine

 



 

Cerro Moro, Argentina

 

At Cerro Moro, mineral reserves changed due to 2022 depletion and adjustments to the geological models, partly offset by additions to the mineral reserves inventory from successful infill and delineation drilling. While gold ounces added by drilling covered annual depletion, an updated block model at Verónica caused an overall decrease of approximately 11,000 gold ounces. Depletion during 2022 was primarily from Zoe, a higher grade silver deposit, resulting in an overall decline of approximately 3.6 million silver ounces contained in mineral reserves.

 

Figure 3: Change in Proven and Probable Mineral Reserves at Cerro Moro

 

(i)            Gold Equivalent Ounces (GEO) calculated using mineral reserves metal price assumptions of $1,250 per ounce of gold and $18 per ounce of silver, and metallurgical recoveries of 94% for gold and 95% for silver.

 



 

El Peñón, Chile

 

Successful drilling at El Peñón resulted in the operation achieving a fifth consecutive year of adding new mineral reserves in excess of mining depletion, with mineral reserves growing 28% to 1.37 million GEO(1) over that period. The replacement of depletion maintains the El Peñón mine life at five to six years. Infill drilling, mainly at the Pampa Campamento and Martillo Flat veins, together with the conversion of underground mineral resources to mineral reserves at Chiquilla Chica, which is being reported for the first time, account for the replacement of gold ounce depletion and the increase of silver ounces contained in mineral reserves.

 

Figure 4: Change in Proven and Probable Mineral Reserves at El Peñón

(i)            Gold Equivalent Ounces (GEO) calculated using mineral reserves metal price assumptions of $1,250 per ounce of gold and $18 per ounce of silver, and metallurgical recoveries of 95% for gold and 86% for silver.

 



 

Minera Florida, Chile

 

At Minera Florida, new mineral reserves replaced mining depletion, extending the mine life. Gold ounces contained in mineral resources and mineral reserves have increased across most main zones with significant success at Maqui due to infill drilling and inaugural mineral reserves added at the Cucaracha zone.

 

Figure 5: Change in Proven and Probable Mineral Reserves at Minera Florida

 

(i)            Adjustments for geomechanical study at the Alhue Core zone which will be considered for future reserve estimates

 

 



 

Wasamac, Canada

 

Wasamac mineral reserves and mineral resources were updated in November 2022, with mineral reserves and mineral resources increasing 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%, while indicated mineral resources and inferred mineral resources have increased by 4% and 76% respectively.

 

The growth in mineral reserves and mineral resources is the result of infill drilling, the success of which has contributed to an updated mineral resource model and stope designs, with the average horizontal stope width increasing from 12.6 metres in 2021 to 13.6 metres in 2022.

 

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 mineral reserves life of nearly 10 years.

 

Figure 6: Change in Proven and Probable Mineral Reserves at Wasamac

 

 

 

 

MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

 

Mineral Reserves (Proven and Probable)

The following table sets forth the Mineral Reserve estimates for the Company's mineral projects as at December 31, 2022.

 

Gold 

Proven Mineral Reserves

Probable Mineral Reserves

Total - Proven and Probable

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Canadian Malartic & Barnat Open Pit (50%)

25,802

0.70

579

26,185

1.10

926

51,988

0.90

1,505

Odyssey Underground (50%)

-

-

-

1,379

2.22

98

1,379

2.22

98

Canadian Malartic Total (50%)

25,802

0.70

579

27,564

1.16

1,025

53,366

0.93

1,603

Jacobina

24,556

2.19

1,731

17,943

2.15

1,241

42,499

2.18

2,973

Cerro Moro

343

9.25

102

1,495

7.15

344

1,838

7.55

446

El Peñón Ore

1,069

5.43

187

4,890

4.59

722

5,959

4.74

909

El Peñón Stockpiles

6

2.69

1

617

1.09

22

623

1.10

22

El Peñón Total

1,075

5.42

187

5,507

4.20

744

6,582

4.40

931

Minera Florida Tailings

-

-

-

1,375

0.87

38

1,375

0.87

38

Minera Florida Total

958

3.29

101

4,082

2.50

328

5,041

2.65

430

Wasamac

-

-

-

26,835

2.51

2,170

26,835

2.51

2,170

Jeronimo (57%)

6,350

3.91

798

2,331

3.79

284

8,681

3.88

1,082

MARA (56.25%)

330,300

0.25

2,655

291,150

0.16

1,498

621,450

0.21

4,152

Total Gold Mineral Reserves

389,385

0.49

6,153

376,907

0.63

7,634

766,292

0.56

13,787

 










Silver

Proven Mineral Reserves

Probable Mineral Reserves

Total - Proven and Probable

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Tonnes

(000's)

Grade

(g/t)

Contained

oz. (000's)

Cerro Moro

343

531.3

5,855

1,495

264.5

12,716

1,838

314.3

18,571

El Peñón Ore

1,069

214.6

7,379

4,890

164.3

25,824

5,959

173.3

33,203

El Peñón Stockpiles

6

116.3

23

617

19.0

376

623

19.9

399

El Peñón Total

1,075

214.1

7,402

5,507

148.0

26,200

6,582

158.8

33,602

Minera Florida Tailings

-

-

-

1,375

12.3

545

1,375

12.3

545

Minera Florida Total

958

17.6

542

4,082

19.7

2,583

5,041

19.3

3,125

MARA (56.25%)

330,300

3.0

32,070

291,150

2.6

24,618

621,450

2.8

56,689

Total Silver Mineral Reserves

332,677

4.3

45,869

302,234

6.8

66,117

634,911

5.5

111,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copper

 

Proven Mineral Reserves

Probable Mineral Reserves

Total - Proven and Probable

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

MARA (56.25%)

330,300

0.57

4,151

291,150

0.39

2,503

621,450

0.49

6,654

Total Copper Mineral Reserves

330,300

0.57

4,151

291,150

0.39

2,503

621,450

0.49

6,654

 

 

 

 

 

 

 

 

 

 

Zinc

 

Proven Mineral Reserves

Probable Mineral Reserves

Total - Proven and Probable

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Minera Florida Ore

958

1.20

25

2,708

0.95

57

3,666

1.01

82

Minera Florida Tailings

-

-

-

1,375

0.59

18

1,375

0.59

18

Minera Florida Total

958

1.20

25

4,082

0.83

74

5,041

0.90

100

Total Zinc Mineral Reserves

958

1.20

25

4,082

0.83

74

5,041

0.90

100

 

 

 

 

 

 

 

 

 

 

Molybdenum

 

Proven Mineral Reserves

Probable Mineral Reserves

Total - Proven and Probable

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

Contained

 lbs (mm)

MARA (56.25%)

330,300

0.030

218

291,150

0.030

192

621,450

0.030

411

Total Molybdenum Mineral Reserves

330,300

0.030

218

291,150

0.030

192

621,450

0.030

411

 



 

Mineral Resources (Measured, Indicated, and Inferred)

The following tables set forth the Mineral Resource estimates for the Company's mineral projects as at December 31, 2022.

 

Gold

Measured Mineral Resources

Indicated Mineral Resources

Total - Measured and Indicated

Tonnes

(000's)

Grade

(g/t)

Contained

 oz. (000's)

Tonnes

(000's)

Grade

(g/t)

 Contained

 oz. (000's)

Tonnes

(000's)

Grade

(g/t)

Contained

 oz. (000's)

Canadian Malartic, Barnat & other zones (50%)

-

-

-

-

-

-

-

-

-

Odyssey Underground (50%)

-

-

-

888

1.59

46

888

1.59

46

East Malartic Underground (50%)

-

-

-

6,107

1.96

385

6,107

1.96

385

East Gouldie Underground (50%)

-

-

-

25,105

3.29

2,652

25,105

3.29

2,652

Canadian Malartic Total (50%)

-

-

-

32,101

2.99

3,082

32,101

2.99

3,082

Jacobina

34,221

2.35

2,587

20,845

2.31

1,548

55,066

2.34

4,136

Cerro Moro

170

5.12

28

666

3.58

77

836

3.89

105

El Peñón Mine

1,183

4.28

163

6,149

3.21

635

7,331

3.38

797

El Peñón Tailings

-

-

-

-

-

-

-

-

-

El Peñón Stockpiles

-

-

-

599

1.43

28

599

1.43

28

El Peñón Total

1,183

4.28

163

6,748

3.05

662

7,930

3.24

825

Minera Florida

2,729

4.32

379

6,238

3.84

769

8,968

3.98

1,149

Wasamac

-

-

-

6,034

1.75

339

6,034

1.75

339

Jeronimo (57%)

772

3.77

94

385

3.69

46

1,157

3.74

139

Agua Rica (56.25%)

30,150

0.13

126

116,044

0.11

411

146,194

0.11

537

Alumbrera (56.25%)

65,297

0.31

660

5,154

0.29

48

70,451

0.31

708

MARA Total (56.25%)

95,447

0.26

786

121,198

0.12

459

216,645

0.18

1,245

Arco Sul

-

-

-

-

-

-

-

-

-

La Pepa (80%)

47,053

0.61

920

52,324

0.49

831

99,377

0.55

1,751

Lavra Velha

-

-

-

4,476

1.96

282

4,476

1.96

282

Monument Bay

-

-

-

36,581

1.52

1,787

36,581

1.52

1,787

Suyai

-

-

-

4,700

15.00

2,286

4,700

15.00

2,286

Total Gold M&I Mineral Resources

181,574

0.85

4,957

292,297

1.29

12,170

473,871

1.12

17,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

Measured Mineral Resources

Indicated Mineral Resources

Total - Measured and Indicated

Tonnes

(000's)

Grade

(g/t)

Contained

 oz. (000's)

Tonnes

(000's)

Grade

(g/t)

 Contained

 oz. (000's)

Tonnes

(000's)

Grade

(g/t)

 Contained

 oz. (000's)

Cerro Moro

170

185.3

1,010

666

244.9

5,245

836

232.8

6,255

El Peñón Mine

1,183

145.3

5,523

6,149

105.9

20,940

7,331

112.3

26,463

El Peñón Total

1,183

145.3

5,523

6,748

99.4

21,574

7,930

106.3

27,096

Minera Florida

2,729

23.4

2,053

6,238

21.4

4,285

8,968

22.0

6,338

Agua Rica (56.25%)

30,150

1.6

1,502

116,044

1.9

6,940

146,194

1.8

8,442

Alumbrera (56.25%)

-

-

-

-

-

-

-

-

-

MARA Total (56.25%)

30,150

1.6

1,502

116,044

1.9

6,940

146,194

1.8

8,442

Suyai

-

-

-

4,700

23.0

3,523

4,700

23.0

3,523

Total Silver M&I Mineral Resources

34,231

9.2

10,089

134,396

9.6

41,566

168,627

9.5

51,654

 

 

 

 

 

 

 

 

 

 

 

Copper

 

Measured Mineral Resources

Indicated Mineral Resources

Total - Measured and Indicated

Tonnes

(000's)

Grade

(%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

(%)

 Contained

 lbs (mm)

Tonnes

(000's)

Grade

(%)

 Contained

 lbs (mm)

Agua Rica (56.25%)

30,150

0.22

146

116,044

0.30

767

146,194

0.28

914

Alumbrera (56.25%)

65,297

0.31

445

5,154

0.21

24

70,451

0.30

469

MARA Total (56.25%)

95,447

0.28

591

121,198

0.30

791

216,645

0.29

1,383

Total Copper M&I Mineral Resources

95,447

0.28

591

121,198

0.30

791

216,645

0.29

1,383

 

 

 

 

 

 

 

 


 

Zinc

Measured Mineral Resources

Indicated Mineral Resources

Total - Measured and Indicated

Tonnes

(000's)

 Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

 Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

 Contained

 lbs (mm)

Minera Florida

2,729

1.45

87

6,238

1.30

178

8,968

1.34

266

Total Zinc M&I Mineral Resources

2,729

1.45

6,238

1.30

178

8,968

1.34

266











 

 

 

 

 

 




















Molybdenum

 

 

Measured Mineral Resources

Indicated Mineral Resources

Total - Measured and Indicated

Tonnes

(000's)

 Grade

 (%)

Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

 Contained

 lbs (mm)

Tonnes

(000's)

Grade

 (%)

 Contained

 lbs (mm)

Agua Rica (56.25%)

30,150

0.020

14

116,044

0.030

77

146,194

0.030

90

Alumbrera (56.25%)

65,297

0.012

16

5,154

0.010

1

70,451

0.011

17

MARA Total (56.25%)

95,447

0.014

30

121,198

0.029

78

216,645

0.022

107

Total Molybdenum M&I Mineral Resources

95,447

0.014

30

121,198

0.029

78

216,645

0.022

107

 

Gold

 

Inferred Mineral Resources

Tonnes

(000's)

Grade

(g/t)

Contained

 oz. (000's)

Canadian Malartic, Barnat & other zones (50%)

2,804

0.73

66

Odyssey Underground (50%)

11,250

2.18

787

East Malartic Underground (50%)

38,781

2.01

2,510

East Gouldie Underground (50%)

16,189

2.54

1,320

Canadian Malartic Total (50%)

69,025

2.11

4,682

Jacobina

26,347

2.28

1,934

Cerro Moro

1,095

5.98

210

El Peñón Mine

4,714

3.72

564

El Peñón Tailings

13,767

0.55

245

El Peñón Stockpiles

-

-

-

El Peñón Total

18,480

1.36

808

Minera Florida

4,224

4.63

629

Wasamac

7,086

2.00

455

Jeronimo (57%)

1,118

4.49

161

Agua Rica (56.25%)

417,881

0.09

1,209

Alumbrera (56.25%)

1,708

0.23

13

MARA Total (56.25%)

419,590

0.09

1,222

Arco Sul

6,203

3.08

615

La Pepa (80%)

20,019

0.46

293

Lavra Velha

4,745

1.56

238

Monument Bay

41,946

1.32

1,781

Suyai

900

9.90

274

Total Gold Inferred Mineral Resources

620,778

0.67

13,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver 

Inferred Mineral Resources

Tonnes

(000's)

Grade

(g/t)

Contained

 oz. (000's)

Cerro Moro

1,095

144.2

5,076

El Peñón Mine

4,714

143.3

21,722

El Peñón Total

18,480

50.7

30,103

Minera Florida

4,224

18.4

2,494

Agua Rica (56.25%)

417,881

1.6

21,765

Alumbrera (56.25%)

-

-

-

MARA Total (56.25%)

417,881

1.6

21,765

Suyai

900

21.0

575

Total Silver Inferred Mineral Resources

442,580

4.2

60,013

 

 

 

 

Copper 

Inferred Mineral Resources

Tonnes

(000's)

Grade

(%)

 Contained

 lbs (mm)

Agua Rica (56.25%)

417,881

0.23

2,119

Alumbrera (56.25%)

1,708

0.17

6

MARA Total (56.25%)

419,590

0.23

2,125

Total Copper Inferred Mineral Resources

419,590

0.23

2,125

 

 

 

 

Zinc

 

Inferred Mineral Resources

Tonnes

(000's)

 Grade

 (%)

 Contained

 lbs (mm)

Minera Florida

4,224

1.27

118

Total Zinc Inferred Mineral Resources

4,224

1.27





Molybdenum 

Inferred Mineral Resources

Tonnes

(000's)

 Grade

 (%)

Contained

 lbs (mm)

Agua Rica (56.25%)

417,881

0.030

276

Alumbrera (56.25%)

1,708

0.008

1

MARA Total (56.25%)

419,590

0.030

277

Total Molybdenum Inferred Mineral Resources

419,590

0.030

277

Mineral Reserve and Mineral Resource Reporting Notes

 

1.    Metal Price, Cut-off Grade, Metallurgical Recovery

 


Mineral Reserves

Mineral Resources

Canadian Malartic (50%)

 

 

 

 

 

Price assumption: $1,300/oz gold

In-situ open pit cut-off grades range from 0.40 to 0.43 g/t gold

Metallurgical recoveries for gold in open pit averaging 90.6%

Underground mining cut-off grade after dilution and mill recovery of 1.55 g/t gold

Metallurgical recoveries for gold in underground averaging 95.51% 

Price assumption: $1,667/oz gold

Canadian Malartic, Barnat and Western Porphyry cut-off grades range from 0.32 to 0.43 g/t gold inside pit

Underground cut-off grade at Odyssey is 1.20 to 1.30 g/t gold (stope optimized)

Underground cut-off grade at East Malartic is 1.20 to 1.45 g/t gold (stope optimized)

Underground cut-off grade at East Gouldie is 1.15 to 1.30 g/t gold (stope optimized)

 



Jacobina

 

 

 

Price assumption: $1,250/oz gold

Underground Mineral Reserves are reported at variable cut-off grades by zone ranging from 0.92 g/t gold to 1.01 g/t gold

Metallurgical recovery is 96.2%

Price assumption: $1,250/oz gold. Cut-off grades correspond to 75% of the cut-off used to estimate the Mineral Reserves

Underground Mineral Resources are reported at variable cut-off grades by zone ranging from 0.69 g/t gold to 0.76 g/t gold

Reported within optimized underground mining shapes with minimum mining width of 1.5 metres and considering internal waste and dilution

 



Cerro Moro

 

 

 

Price assumptions: $1,250/oz gold and $18.00/oz silver

Underground NSR cut-off at $210.71/t and open pit NSR cut-off at $124.72/t

Metallurgical recoveries average 93% for gold and 91% for silver

Price assumptions: $1,250/oz gold and $18.00/oz silver. NSR cut-off values correspond to 75% of Mineral Reserves cut-off

Underground NSR cut-off at $158.04/t and open pit NSR cut-off at $93.54/t

Constrained in optimized stopes and pit shells

 



El Peñón

 

 

 

 

 

 

Price assumptions: $1,250/oz gold, $18.00 silver

Underground cut-off at $129.15/t

Low grade stockpiles cut-off range from 0.88 to 0.96 g/t gold equivalent

Metallurgical recoveries for underground ores range from 84.39% to 96.12% for gold and from 68.76% to 91.03% for silver

Metallurgical recoveries for low grade stockpiles range from 88.0% to 95.2% for gold and from 80.8% to 83.0% for silver

Price assumptions: $1,250/oz gold, $18.00/oz silver

Underground cut-off at $96.86/t, which corresponds to 75% of the cut-off value used to estimate the Mineral Reserves

Reported within optimized underground mining shapes with minimum mining width of 0.6m and 0.3m dilution on both hanging wall and footwall

Tailings and stockpiles reported at cut-offs of 0.50 g/t and 0.96 g/t gold equivalent respectively

Metallurgical recoveries for underground ores range from 84.39% to 96.12% for gold and from 68.76% to 91.03% for silver

Metallurgical recoveries for tailings estimated to be 60% for gold and 30% for silver

Metallurgical recoveries for stockpiles estimated to be 88.0% for gold and 80.8% for silver

 



Minera Florida

 

 

 

Price assumptions: $1,250/oz gold, $18.00/oz silver and $1.25/lb zinc

Underground cut-off at $92.07/t

Metallurgical recoveries for underground are 92.59% for gold, 0.0% to 71.0% for silver, and 0.0% to 80.0% for zinc

Tailings are reported at a cut-off of 0.99 g/t gold equivalent

Metallurgical recoveries for tailings are 75.0% for gold

Price assumptions: $1,250/oz gold, $18.00/oz silver and $1.25/lb zinc

Underground Mineral Resources are estimated at a cut-off value of $69.05/t, corresponding to 75% of the cut-off used to estimate Mineral Reserves, for the Las Pataguas, PVS, Fantasma, Millenium Norte, and Cucaracha zones which are constrained to underground mining shapes. The remaining zones are reported unconstrained at a NSR cut-off value of $92.07/t.

Metallurgical recoveries of 92.59% for gold, 0.0% to 71.0% for silver, and 0.0% to 80.0% for zinc

 


Wasamac

 

 

Price assumption: $1,250/oz gold using an exchange rate of US$1.32:C$1.00

Underground cut-off grade from 1.52 to 1.65 g/t gold (stope optimized)

Mineral Reserves consider average total mining dilution of 11% and average mining recovery of 93%

Price assumption: $1,250/oz gold. Cut-off grades correspond to 75% of the cut-off used to estimate the Mineral Reserves

Underground cut-off grades range from at 1.14 to 1.42 g/t gold

Mineral Resources are reported fully diluted within conceptual mining shapes

 



Jeronimo (57%)

 

 

Price assumption:$900/oz gold

Cut-off grade at 2.0 g/t gold

Metallurgical recovery for gold is 86%.

 Cut-off grade at 2.0 g/t gold

 

 



MARA: Agua Rica (56.25%)

 

 

Mineral Reserves are estimated using a variable metallurgical recovery

Average metallurgical recoveries of 86% Cu, 35% Au, 43% Ag, and 44% Mo were considered

Open pit Mineral Reserves are reported at a variable cut-off value averaging $8.42/t, based on metal price assumptions of $3.00/lb Cu, $1,250/oz Au, $18/oz Ag, and $11/lb Mo. A LOM average open pit costs of $1.72/t moved, processing and G&A cost of $6.70/t of run of mine processed. The strip ratio of the Mineral Reserves is 1.7 with overall slope angles varying from 39° to 45° depending on the geotechnical sector

Mineral Resources are estimated using a variable metallurgical recovery

LOM average metallurgical recoveries of 86% Cu, 35% Au, 43% Ag, and 44% Mo were considered

Mineral Resources are constrained by an optimized pit shell based on metal price assumptions of $4.00/lb Cu, $1,600/oz Au, $24/oz Ag, and $11/lb Mo. Open pit Mineral Resources are reported at a variable cut-off value which averages $8.42/t milled with overall slope angles varying from 39° to 45° depending on the geotechnical sector

 



MARA: Alumbrera (56.25%)

  

N/A

 

 

Price assumptions: $1,300/oz gold, $2.83/lb copper.

Alumbrera deposit: Whittle pit shell cut-off at 0.22% copper equivalent

Bajo El Durazno deposit: 0.2 g/t Au cut-off within pit shell

 


 

Arco Sul

 

 

N/A

 

 

Price assumption: $1,250/oz gold

Underground cut-off grade at 2.00g/t, which corresponds to 75% of the cut-off that would be used for Mineral Reserves

Mineral Resources reported within optimized underground mining shapes

 



La Pepa (80%)

 

N/A

 

Price assumption: $1,650/oz gold

Cut-off grade of 0.20 g/t gold for oxides and 0.26 g/t gold for sulphides, inside optimized pit envelope

 



Lavra Velha

N/A

Price assumption: $1,650/oz gold

Mineral Resources are constrained by an optimized pit shell with metallurgical recoveries of 90.0% for oxide, 85.0% for mix and 60% for sulphide material

Cut-off grade of 0.25 g/t Au for oxide and mix material, and of 0.37 g/t Au for sulphide material

 


 



Monument Bay

 

N/A

 

Price Assumption: $1,200/oz gold

Cut-off grades are 0.4 g/t gold and 0.7 g/t gold for the open pits and 4.0 g/t gold for underground

 



Suyai

N/A

5.0 g/t gold cut-off inside mineralized wireframe modeling

 



2.  All Mineral Reserves and Mineral Resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").       

3.  All Mineral Resources are reported exclusive of Mineral Reserves.     

4.  Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.       

5.  Mineral Reserves and Mineral Resources are reported as of December 31, 2022.        

6.  For the qualified persons responsible for the Mineral Reserve and Mineral Resource estimates at the Company's material properties, see the qualified persons list below:

Property

Qualified Persons for Mineral Reserves

Qualified Persons for Mineral Resources

Canadian Malartic

Patrick Fiset, Eng., and Pierre-Olivier Richard, Eng., Canadian Malartic GP

Pascal Lehouiller, P. Geo, Canadian Malartic GP

Jacobina  

Eduardo de Souza Soares, MAusIMM CP (Min), Yamana Gold Inc.

Camila Passos, P. Geo, and Danilo Ribeiro dos Santos, MAusIMM CP (Geo), Yamana Gold Inc.

El Peñón                                           

Jimmy Avendaño Gonzalez, Registered Member of the Chilean Mining Commission, Yamana Gold Inc.

Marco Velásquez Corrales, Registered Member of the Chilean Mining Commission, Yamana Gold Inc.

 

 

 

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 NI 43-101. Data verification related to certain scientific and technical information disclosed herein in connection with Yamana's material properties 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, "Technical Report on the Agua Rica Integrated Project, Catamarca Province, Argentina" and dated effective June 30, 2019, "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.

 

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

 

 



 

END NOTES

 

(1)        GEO is calculated as the sum of gold ounces and gold equivalent silver ounces using a ratio of 82.94 for the year-ended December 31, 2022. GEO reserve calculations are based on mineral reserves metal price assumptions of $1,250 per ounce of gold and $18 per ounce of silver, and metallurgical recoveries specific to the mine plan. Guidance GEO assumes gold ounces plus the equivalent of silver ounces using a ratio of 72.00.

(2)        A cautionary note regarding non-GAAP performance measures and their respective reconciliations, as well as additional line items or subtotals in financial statements is included in Section 12: Non-GAAP Performance Measures and Additional Subtotals in Financial Statements in the Company's MD&A for the three and twelve months ended December 31, 2022, dated March 29, 2023, available under the Company's profile on SEDAR at www.sedar.com and on the Company's website.

 

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 expected timing for completion of the Proposed Transaction, expectations for AISC, information with respect to the Company's strategy, plans, expectations, beliefs, including future operating performance and updates regarding mineral reserves and mineral resources. 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 transaction risks, risks relating to the completion of the Proposed Transaction on the timeline anticipated or at all,  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, the impact of any variance in the Company's current plans made by Pan American and/or Agnico Eagle Mines Limited post-closing of the Proposed Transaction, 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 parametres 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, in the management information circular in connection with the Proposed Transaction 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 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 operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements promulgated by the Securities and Exchange Commission (the "SEC"). For example, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the SEC. Accordingly, information contained in this news release may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.

 

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