YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the
Company”) provides an exploration update for the Canadian Malartic
mine, announcing exceptional drill results that provide further
support for the development of a future underground operation at
the East Gouldie, Odyssey, and East Malartic zones with significant
additional mineral resources and extended life of mine.
HIGHLIGHTS
- An ongoing C$24 million drill
program has added 44 new pierce points this year within the mineral
envelope at East Gouldie, providing data for a rapidly growing
mineral resource model with spacing between pierce points of 150
metres or less.
- Mineralization is currently defined
over 1,400 metres of strike length and a 1,200-metre vertical
interval, and remains open at depth.
- Mineralization occurs in two
closely spaced panels that locally converge into a single wide
mineralized body.
- Assays indicate good grades,
averaging over 3.00 grams per tonne (“g/t”) of gold, consistent
homogeneous grade distribution, and wide estimated true width
intervals, with multiple intercepts each averaging over 10.00
metres estimated true width.
- Drilling has defined significant
intercepts that extend from 700 metres below surface to 1,900
metres below surface. Notable results include the following
uncapped values over estimated true widths: MEX19-151WC with 6.90
g/t of gold over 39.30 metres, including 10.50 g/t of gold over
13.10 metres; MEX20-163AW 9.50 g/t of gold over 27.40 metres,
including 16.00 g/t of gold over 9.90 metres; MEX19-159A 7.61 g/t
of gold over 23.95 metres, including 12.00 g/t of gold over 12.16
metres; MEX19-160 6.90 g/t of gold over 21.30 metres, including
13.20 g/t of gold over 4.50 metres.
- Exploration on the broader
amalgamated mine property in 2020 focused on the East Amphi and
Rand projects. Drilling at East Amphi targeted the Nessie zone, a
shear zone and porphyry-hosted mineralized zone, returning broad
intervals of low-grade gold mineralization. The zone remains open
at depth and to the east.
- A new mineralized zone at East
Amphi was also discovered 80 metres south of the Nessie zone
located at 450 metres depth north of the main porphyry. Drilling in
this zone intercepted a downhole interval of 3.55 g/t of gold
(uncapped) over a core length of 19.50 metres.
Significance
The strong results confirmed expected grades and
widths of East Gouldie mineral inventories, while also confirming
that the zone is open at depth, providing confidence to proceed
with an exploration ramp that will allow tighter definition
drilling on the Odyssey, East Malartic, and East Gouldie zones from
underground drill platforms, and eventually be used to mine and
haul mineralization from the upper zones. The results are expected
to significantly increase inferred mineral resources at the
higher-grade East Gouldie zone at year end, which will improve the
economics of the Canadian Malartic underground project and
represent another significant step towards defining the project as
a multimillion ounce deposit that would support a future decades
long life underground mine with a multi-hundred thousand ounce per
year production platform.
EAST GOULDIE
Since the discovery of the East Gouldie zone in
the fourth quarter of 2018, an aggressive exploration program has
been pursued focused on mineral resource expansion and definition
in support of a future underground operation with extended life of
mine. In its year-end 2019 mineral reserve and mineral resource
update, Yamana reported inferred mineral resources of 4,798,000
ounces of gold (50% basis) in the East Malartic, Odyssey, and East
Gouldie zones, and measured and indicated mineral resources of
415,000 ounces of gold (50% basis) in the East Malartic and Odyssey
zones. (See Table 1.)
Table
1: Canadian Malartic year-end
2019 underground
mineral resources.(1)
|
Measured & Indicated Mineral
Resources |
Inferred Mineral Resources |
|
Tonnes (000's) |
Grade (g/t Au) |
Contained oz. Gold (000's) |
Tonnes (000's) |
Grade (g/t Au) |
Contained oz. Gold (000's) |
Odyssey Underground (50%) |
1,011 |
2.10 |
68 |
11,684 |
2.22 |
833 |
East Malartic Underground (50%) |
4,962 |
2.18 |
347 |
39,382 |
2.05 |
2,596 |
East Gouldie Underground (50%) |
- |
- |
- |
12,760 |
3.34 |
1,369 |
Total (50%) |
5,973 |
2.17 |
415 |
63,826 |
2.45 |
4,798 |
(1) Please
refer to the Canadian Malartic page on the Yamana website
(http://www.yamana.com) for a full 2019 mineral resource update and
related assumptions for mineral resource estimates.
In 2020, despite a six-week stoppage of
exploration drilling that began in late March due to government
restrictions on mining activities related to COVID-19, the mine’s
exploration group has drilled 77,500 metres in 34 drill holes and
46 wedge holes that have provided 44 new pierce points within the
East Gouldie mineralized body. This drilling activity also includes
seven pierce points in Odyssey South and two pierce points in the
Chert zone, which is part of the East Malartic zone. These pierce
points provide data for a rapidly growing mineral resource model
with spacing between pierce points at 150 metres or less.
The results of this drilling are clearly
defining a large mineralized zone with two closely-spaced
sheet-like mineralized bodies with exceptional grade continuity and
width. Significant intercepts extend from 700 metres below surface
to 1,900 metres below surface and along a strike length of roughly
1,400 metres, defining a continuous mineralized body. The
mineralization remains open at depth and, given that the East
Malartic and East Gouldie zones dip towards each other, these zones
are expected to converge at depth. (See cross section presented in
Figure 2).
The mineralized zones at East Gouldie are
typically stacked in closely-spaced adjacent sheets with individual
reported intervals ranging from an estimated true width of 1.6
metres to 39.3 metres, with a mean width of 10.7 metres and mean
grades in excess of 3.00 g/t of gold. Notable highlights include
the following uncapped values over estimated true widths:
MEX19-151WC with 6.90 g/t of gold over 39.30 metres, including
10.50 g/t of gold over 13.10 metres; MEX20-163AW 9.50 g/t of gold
over 27.40 metres, including 16.00 g/t of gold over 9.90 metres;
MEX19-159A 7.61 g/t of gold over 23.95 metres, including 12.00 g/t
of gold over 12.16 metres; MEX19-160 6.90 g/t of gold over 21.30
metres, including 13.20 g/t of gold over 4.50 metres. (See
additional drill results in Table 2.)
Each pierce point typically comprises three to
five of these mineralized intervals in two well-defined,
closely-spaced mineralized panels: East Gouldie North and East
Gouldie South. (See Figure 2 cross section showing cumulative
width.) Grades are relatively homogeneous with minimal vertical and
lateral variation and the 150-metre spacing is expected to be
sufficient to define inferred mineral resources.
These exceptional results are part of an ongoing
2020 drill program, budgeted at C$24 million, that will include a
further 35,000 metres in the fourth quarter, for a total of 112,500
metres in 2020, after which the data will be integrated into a new
mineral resource model prior to year-end reporting. This new
mineral resource will form the basis for a preliminary economic
assessment and further mine planning. Infill drilling to 75-metre
centres will initiate in the fourth quarter and be the focus of the
2021 drill program.
Figure
1: Canadian Malartic Location
Map.https://www.globenewswire.com/NewsRoom/AttachmentNg/15b4cdc8-52ac-4971-9941-ffcd6c1a0f2d
Figure
2: Canadian Malartic long section looking
north, highlighting 2020 drilling results for the East Gouldie
zone. Drilling intercepts
presented include those greater than 25.0 gram*metres
(Gold g/t (uncapped)
multiplied by
estimated
true
width in
metres).https://www.globenewswire.com/NewsRoom/AttachmentNg/b1979fa1-6eb3-4997-ada9-11747b23b5c9
Infrastructure Development
Advancing
Construction of surface infrastructure, offices,
and the ramp portal is well underway, with ramp development into
Odyssey and East Malartic scheduled to start in November. The
purpose of the exploration ramp is to allow tighter definition
drilling on Odyssey, East Malartic, and East Gouldie from
underground drill platforms, and it will eventually be used for
mining and haulage of ore from the upper zones. This would allow
underground production from Odyssey South from as early as 2023,
providing higher-grade mill feed to complement the open pit
production, thereby extending the life of the open pit.
In parallel, engineering of the production shaft
and hoist is advancing, with an objective of starting preparation
for the shaft and headframe in 2021, subject to formal approval
after completing the requisite preliminary economic assessment. A
vertical drill hole is currently in progress to provide
geotechnical characterization at the proposed shaft location. The
production shaft is designed as 6.4 metres in diameter and 1,800
metres deep and is planned to start hoisting ore from East Gouldie
from 2027. Combined underground production from the haulage ramp
and shaft is expected to ramp up to approximately 20,000 tonnes per
day by 2029. The engineering team is assessing opportunities to
improve the gold production profile during the ramp up period
between 2023 and 2029. More detailed information will be presented
in an updated NI 43-101 Technical Report in 2021.
Table 2:
2020 Drilling
highlights, East Gouldie
zone,
selected
for
estimated
true
width
intervals
greater
than 25.0 gram*metres
(gold g/t
(uncapped) multiplied by
estimated
true
width in
metres). Capping is at
15.00 g/t of gold.
Hole |
Including |
Zone |
From (m) |
To (m) |
Interval (m) |
Estimated True Width (m) |
Au Uncapped (g/t) |
Au Capped(g/t) |
MEX19-140WB |
|
EG North |
1497.00 |
1507.50 |
10.50 |
10.10 |
3.20 |
- |
MEX19-140WB |
|
EG South |
1608.00 |
1623.00 |
15.00 |
14.30 |
3.70 |
- |
MEX19-151WC |
|
EG North |
1686.00 |
1728.00 |
42.00 |
39.30 |
6.90 |
6.30 |
incl. |
EG North |
1698.00 |
1712.00 |
14.00 |
13.10 |
10.50 |
9.90 |
MEX19-159 |
|
EG South |
1822.00 |
1836.20 |
14.20 |
13.10 |
4.90 |
4.20 |
incl. |
EG South |
1829.90 |
1836.20 |
6.30 |
5.80 |
9.60 |
8.10 |
MEX19-159A |
|
EG South |
1795.00 |
1820.60 |
25.60 |
23.95 |
7.61 |
6.70 |
incl. |
EG South |
1798.00 |
1811.00 |
13.00 |
12.16 |
12.00 |
10.30 |
MEX19-160 |
|
EG North |
1567.10 |
1589.80 |
22.70 |
21.30 |
6.90 |
6.30 |
incl. |
EG North |
1574.00 |
1578.20 |
4.30 |
4.03 |
10.02 |
8.10 |
incl. |
EG North |
1585.00 |
1589.80 |
4.80 |
4.50 |
13.20 |
12.05 |
MEX20-162W |
|
EG North |
1511.00 |
1532.90 |
21.90 |
16.90 |
2.90 |
- |
MEX20-162WA |
|
South of EG South |
1661.00 |
1670.85 |
9.90 |
8.40 |
3.82 |
- |
MEX20-163AW |
|
EG North |
1207.40 |
1237.00 |
29.60 |
27.40 |
9.50 |
8.20 |
MEX20-163AW |
incl. |
EG North |
1211.00 |
1221.80 |
10.80 |
9.90 |
16.00 |
13.20 |
MEX20-163AWA |
|
EG North |
1197.00 |
1217.50 |
20.50 |
20.00 |
8.80 |
7.50 |
incl. |
EG North |
1197.00 |
1207.80 |
10.80 |
10.60 |
12.00 |
9.50 |
MEX20-163EXT |
|
EG North |
1145.00 |
1163.00 |
18.00 |
17.16 |
1.48 |
- |
MEX20-164 |
|
EG North |
1859.60 |
1878.30 |
18.70 |
15.90 |
1.60 |
- |
MEX20-164 |
|
EG North |
1886.20 |
1900.00 |
13.80 |
11.73 |
6.23 |
5.53 |
incl. |
EG North |
1894.70 |
1900.00 |
5.30 |
4.50 |
13.20 |
11.40 |
MEX20-164 |
|
EG South |
1919.00 |
1943.20 |
24.20 |
20.65 |
1.27 |
- |
MEX20-164W |
|
EG North |
1888.15 |
1904.40 |
16.25 |
11.88 |
2.58 |
- |
MEX20-166 |
|
EG South |
1694.00 |
1718.00 |
24.00 |
22.07 |
5.72 |
5.26 |
MEX20-167 |
|
Merged EG North & South |
1626.95 |
1660.50 |
33.55 |
32.53 |
4.72 |
4.68 |
incl. |
Merged EG North & South |
1652.15 |
1659.70 |
7.55 |
7.32 |
6.60 |
6.44 |
MEX20-167A |
|
EG North |
1639.70 |
1666.00 |
26.30 |
24.60 |
3.67 |
- |
MEX20-167AA |
|
EG North |
1638.50 |
1652.80 |
14.30 |
13.70 |
2.60 |
- |
MEX20-167B |
|
EG North |
1654.25 |
1674.10 |
19.85 |
18.55 |
2.30 |
- |
MEX20-169AW |
|
EG South |
1951.00 |
1968.00 |
17.00 |
13.83 |
1.96 |
- |
MEX20-169AWB |
|
EG South |
1927.75 |
1945.65 |
17.90 |
14.24 |
2.31 |
- |
MEX20-170A |
|
EG South |
1845.90 |
1859.60 |
13.70 |
12.06 |
2.76 |
- |
MEX20-170AW |
|
EG North |
1769.70 |
1780.00 |
10.30 |
9.40 |
5.40 |
- |
MEX20-170AW |
|
EG South |
1802.10 |
1826.30 |
24.20 |
22.10 |
2.20 |
- |
MEX20-171 |
|
EG North |
1788.90 |
1815.00 |
26.10 |
23.49 |
1.84 |
- |
MEX20-171 |
|
EG South |
1821.00 |
1860.40 |
39.40 |
35.63 |
1.98 |
- |
incl. |
EG South |
1845.00 |
1859.00 |
14.00 |
12.66 |
2.82 |
- |
MEX20-171WA |
|
EG South |
1881.00 |
1892.80 |
11.80 |
10.00 |
2.50 |
- |
MEX20-172A |
|
EG South |
1959.00 |
1975.80 |
16.80 |
14.73 |
3.30 |
- |
MEX20-172AW |
|
North of EG North |
1829.00 |
1856.75 |
27.75 |
25.90 |
5.50 |
- |
MEX20-172AW |
|
EG South |
1898.00 |
1917.00 |
19.00 |
17.60 |
2.57 |
- |
MEX20-172AWA |
|
EG South |
1919.00 |
1935.45 |
16.45 |
14.21 |
9.02 |
7.50 |
incl. |
EG South |
1928.30 |
1935.10 |
6.80 |
5.90 |
17.00 |
15.30 |
MEX20-175W |
|
EG North |
1552.00 |
1557.40 |
5.40 |
4.94 |
7.68 |
6.23 |
MEX20-175W |
|
EG South |
1628.00 |
1639.00 |
11.00 |
9.90 |
4.68 |
4.25 |
MEX20-175WA |
|
EG North |
1595.60 |
1612.00 |
16.40 |
14.80 |
1.70 |
- |
MEX20-175WA |
|
EG South |
1627.85 |
1659.30 |
31.45 |
28.30 |
2.80 |
- |
incl. |
EG South |
1649.55 |
1653.00 |
3.45 |
3.10 |
9.60 |
- |
MEX20-176 |
|
EG North |
1337.00 |
1357.40 |
20.40 |
19.95 |
3.30 |
- |
incl. |
EG North |
1344.60 |
1349.05 |
4.45 |
4.35 |
7.91 |
- |
MEX20-176W |
|
EG North |
1342.50 |
1368.00 |
25.50 |
24.05 |
1.57 |
- |
MEX20-176W |
|
EG South |
1380.15 |
1393.00 |
12.85 |
12.10 |
3.10 |
2.72 |
MEX20-176WA |
|
EG North |
1333.50 |
1360.45 |
26.95 |
26.10 |
2.20 |
- |
MEX20-178 |
|
Merged EG North & South |
1231.60 |
1272.60 |
41.00 |
36.50 |
6.30 |
6.01 |
MEX20-178WA |
|
EG North |
1242.70 |
1278.70 |
36.00 |
28.53 |
3.82 |
3.60 |
incl. |
EG North |
1252.80 |
1258.20 |
5.40 |
4.28 |
12.77 |
11.30 |
MEX20-178WA |
|
EG South |
1308.00 |
1332.30 |
24.30 |
19.16 |
2.59 |
- |
District Exploration
Exploration on the broader amalgamated mine
property in 2020 focused on the East Amphi and Rand projects. Based
on favourable historical holes at depth in the East Amphi deposit,
a past producing mine located west of Canadian Malartic, drilling
was initiated in the first quarter and resumed in the third quarter
on the Nessie zone, a shear zone and porphyry-hosted mineralized
zone in the historic mine. The known vertical extent of the zone
was extended by 150 metres to depth and returned broad intervals of
low-grade gold mineralization with local high-grade narrow
intervals. The zone remains open at depth and to the east. A new
mineralized zone at East Amphi was also discovered 80 metres south
of the Nessie zone located at 450 metres depth north of the main
porphyry. Drilling in this zone intercepted a downhole interval of
3.55 g/t of gold (uncut) over a core length of 19.50 metres.
Drilling on the Rand property returned anomalous
values at two new occurrences in the northern half of the property.
Exploration in the fourth quarter and in 2021 will add drilling to
the new Mount Rand targets and test porphyry-related targets at
Rand and East Amphi in an effort to add further mineral resources
for a future underground operation.
Qualified PersonsScientific and
technical information contained in this press release has been
reviewed and approved by Henry Marsden (P. Geo. and Senior Vice
President, Exploration). Mr. Marsden is an employee of Yamana Gold
Inc. and a “Qualified Person” as defined by Canadian Securities
Administrators' National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Quality Assurance and Quality
ControlCanadian Malartic incorporates a Quality Assurance
and Quality Control (“QA/QC”) program for all of its mines and
exploration projects which conforms to industry best practices.
All samples and duplicates are analyzed by ALS,
an ISO 9001 certified and ISO/IEC 17025 accredited laboratory.
Samples are processed through a sample tracking system that is an
integral part of that company’s Laboratory Information Management
System (LIMS). This system uses bar coding and scanning technology
that provides complete chain-of-custody records. Samples are dried
and then crushed to 70% passing -10 mesh (1.7 mm). A 250 gram
subsample is split off the crushed material and pulverized to 85%
passing -200 mesh (75 micron). A 50 gram split of the pulp is used
for assay. Prepared samples are analyzed by fire assay with atomic
absorption finish. Samples returning assays in excess of 10 g/t Au
are re-analyzed with a gravimetric finish. The gravimetric finish
assay is used as the final assay.
All exploration diamond drill cores are split in
half by core sawing and sampled at appropriate intervals for assay,
The remaining core, coarse reject and pulps are stored on-site in a
secure location.
Quality assurance standards, duplicates, sterile
and blanks are routinely inserted into the sample stream as a
control for assay accuracy, bias, precision and contamination. The
results of these checks are tracked and failures are re-analyzed.
This information also includes pulp checks carried out in a
secondary lab.
About
YamanaYamana Gold Inc. is a Canadian-based precious metals
producer with significant gold and silver production, development
stage properties, exploration properties, and land positions
throughout the Americas, including Canada, Brazil, Chile and
Argentina. Yamana plans to continue to build on this base through
expansion and optimization initiatives at existing operating mines,
development of new mines, the advancement of its exploration
properties and, at times, by targeting other consolidation
opportunities with a primary focus in the Americas.
FOR FURTHER INFORMATION, PLEASE
CONTACT:Investor Relations
416-815-02201-888-809-0925Email: investor@yamana.com
Tavistock (UK Public Relations)
Charles Vivian / Emily MossTelephone: +44 7977 297 903 / +44 778
855 4035Email: yamana@tavistock.co.uk
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint
UK Corporate Broker)Matthew Armitt / Jennifer Wyllie /
Detlir Elezi Telephone: +44 (0) 20 3207 7800
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: 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
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
exploration results at the Jacobina, El Penon and Minera Florida
and any potential increase in mine life. 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
expectations related to the results of exploration efforts at
Jacobina, El Penon and Minera Florida, including the details
surrounding expected mine life expansions discussed herein and in
the technical report being met, 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, currency exchange rates (such as the Brazilian real versus
the United States dollar), the impact of inflation, possible
variations in ore grade or recovery rates, hedging programs,
changes in accounting policies, changes in Mineral Resources and
Mineral Reserves, risks related to other investments, changes in
project parameters as plans continue to be refined, changes in
project development, construction, production and commissioning
time frames, 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, 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 related to fiscal stability agreements,
title disputes or claims, limitations on insurance coverage and
timing and possible outcome of pending and outstanding litigation
and labour disputes, risks related to enforcing legal rights in
foreign jurisdictions, as well as those risk factors discussed or
referred to herein and in the Company's Annual Information Form
filed with the securities regulatory authorities in all provinces
of Canada and available at www.sedar.com, and the Company’s Annual
Report on Form 40-F filed with the United States Securities and
Exchange Commission. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
The Company undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates, assumptions
or opinions should change, except as required by applicable law.
The reader is cautioned not to place undue reliance on
forward-looking statements. The forward-looking information
contained herein is presented for the purpose of assisting
investors in understanding the Company’s expected financial and
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.
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