Increased Reserves And Further Positive Exploration Results At Jacobina Mine
TORONTO - Yamana Gold reported updated mid-year mineral reserve and mineral resource estimates for the Jacobina mine with mineral reserves, after depletion from production for the six-month period of 2019, of 2,279,000 ounces of gold, representing an increase of 8.6% versus year-end 2018. In addition, mineral reserve grade increased by 2.6%, which is a second straight year of mineral reserve grade increase. From year-end 2017, overall mineral reserve grade has increased by 5.3%. The mineral reserve estimate and mineral reserve grade increase provides a stable platform for expanded long-term production and free cash flow generation.
The Company also announced an exploration update for Jacobina demonstrating strong growth in total contained and future potential ounces. The Canavieiras and Morro do Vento areas have yielded excellent new drill intercepts and are expected to continue providing new resources at higher than life-of-mine (LOM) grades.
Jacobina represents a meaningful and high quality operation with substantial long life and a significant production platform, which should further improve with additional exploration and with a planned phased expansion. Jacobina is now a significant contributor to Yamana’s net asset value, EBITDA, cash flow, and free cash flow.
Mineral Reserve Highlights: Increased proven and probable mineral reserves to 2.28 million ounces, an 8.6% increase from year-end 2018, with grade increased to 2.40 grams per tonne (g/t), representing a 2.6% increase from year-end 2018, and the second year in a row of mineral reserve grade increases, for an overall increase of 5.3% since year-end 2017.
Exploration Highlights: The Canavieiras and Morro do Vento sectors continue to provide high grade, wide intervals of mineralization indicating excellent potential for mineral reserve and mineral resource growth at better than LOM grades.
The João Belo Sur area has demonstrated excellent potential for long-term mineral resource growth immediately adjacent to the existing João Belo mine, historically the most important producer at Jacobina.
The improvement in mineral reserves and reserve grade in the mid-year updated mineral reserves at Jacobina supports annual gold production above the 170,000 ounces as previously guided after the completion of Phase 1 and further supports the potential of Phase 2, which would see production increase above 225,000 ounces per year.
Jacobina has a strong track record of mineral reserves replacement with the rate of replacement exceeding the rate of depletion by more than three times. New mineral reserve additions are at an average grade of 2.86 g/t and are resulting in higher quality additions to mineral reserve ounces than the ounces being depleted from production. New mineral reserves are the result of infill drilling, contributing 36% of the new mineral reserve ounces, and the remaining 64% as a result of modeling additional reefs.