Actionable news
0
All posts from Actionable news
Actionable news in AUY: YAMANA GOLD Inc,

Yamana Gold Makes Decision to Move Forward With C1 Santa Luz Recomissioning

TORONTO, ONTARIO--(Marketwired - Jul 28, 2016) - YAMANA GOLD INC. (YRI.TO)(AUY) ("Yamana" or "the Company") is pleased to announce a positive decision to recommission its C1 Santa Luz project ("C1 Santa Luz"), located in Bahia, Brazil. This decision follows the completion of the financial and technical analyses relating to recommissioning which have been ongoing since the project was placed on care and maintenance in 2014 pending further clarification of technical aspects of C1 Santa Luz.

C1 SANTA LUZ HIGHLIGHTS

  • Proven and Probable Mineral Reserves of 1.2 million ounces of gold (26.7 million tonnes at 1.42 grams per tonne ("g/t")).
  • Forecasted mine life of ten years with average annual production of 114,000 ounces of gold over the first seven years with production in the first full year of over 130,000 ounces of gold.
  • Expected overall recovery rates of approximately 84%.
  • Average life of mine ("LOM") all-in sustaining cost ("AISC") (1,2) estimate of $846 per ounce.
  • Initial capital expenditures of $84.2 million, including an additional vertimill for a higher processing rate, contingencies and all social and owner's costs.
  • After-tax net present value ("NPV")(3) at a 5% discount rate of $268 million and an after-tax internal rate of return ("IRR") of 71%.

Peter Marrone, Chairman and Chief Executive Officer of Yamana commented as follows: "We are very pleased with the results from the technical effort on recomissioning C1 Santa Luz. The comprehensive geological analysis and metallurgical testwork undertaken has been positive and confirms a significantly larger Mineral Resource and recoveries in line with the preliminary economic assessment completed in 2015. The results support our confidence in C1 Santa Luz's economic parameters and viability and underpin our decision to move this project into the execution phase. A development schedule is now underway with a plan to be in production in 2018."

The Company worked with Roscoe Postle Associates Inc ("RPA") with metallurgical analysis and input completed by Ausenco Services Pty Ltd ("Ausenco") to complete the financial and technical analysis for its Technical Report on the re-start of C1 Santa Luz, which was prepared in accordance with the requirements of National Instrument 43-101. The analysis and Technical...


More