Notable highlights at Odyssey include East Gouldie infill and exploration drilling, which continues to demonstrate both significant expansion potential and excellent mineralization continuity and consistency. With twelve surface diamond drill rigs active on East Gouldie, as well as four underground drill rigs on Odyssey South, ongoing drilling is expected to convert a significant portion of the 2021 year-end inferred mineral resources to indicated mineral resources for 2022 year-end reporting, and, as well, significantly expand the inferred mineral resource envelope. At Wasamac, infill drilling results continue to confirm or exceed expected grades and widths, highlighting the continuity and tenor of mineralization. Along with positive step out drill results from Wildcat South, these results provide support for an expanded production scenario within and adjacent to the known mineral envelope at Wasamac.
The Company's exploration success and track record of mineral reserve replacement and mineral resource growth supports a clear pathway toward realizing significant and progressive production increases and increased cash flow generation.
Odyssey Exploration Update
The main objectives of the 2022 drilling program are to convert the inferred resource to indicated, complete additional infill and delineation drilling on the Odyssey zones, as well as to carry out further exploration drilling to expand the current mineralized envelope. To that end, by the end of the second quarter of 2022, completed drilling included 42,018 metres of infill on East Gouldie, 10,450 metres of exploration drilling on East Gouldie expansion, outside the resource envelope, and 31,700 metres of conversion drilling on Odyssey South. Additionally, 14,600 metres of exploration drilling were completed on East Gouldie extension, in the eastern extension of the East Gouldie plane. Drilling in all sectors continues to provide excellent grades and widths. Highlights include the following estimated true widths intercepts:
East Gouldie Infill: MEX21-230WB, 6.45 g/t of gold over 22.53 metres; MEX22-233, 5.03 g/t of gold over 33.24 metres; MEX21-225WBZ, 2.23 g/t of gold over 60.26 metres; and MEX21-228W, 6.93 g/t of gold over 27.50 metres.
East Gouldie Extension Exploration: MEX22-232, 3.85 g/t of gold over 5.98 metres; RD21-4689AA, 4.11 g/t of gold over 7.90 metres* (*core length); and MEX22-231, 1.84 g/t of gold over 62.92 metres.
Odyssey South Conversion: UGOD-021-007, 19.11 g/t of gold over 7.40 metres; UGOD-021-002, 5.24 g/t of gold over 17.04 metres; UGOD-026-010, 17.57 g/t of gold over 8.64 metres; and UGOD-016-051, 28.66 g/t of gold over 6.62 metres.
Infill drilling in 2022 continues to demonstrate remarkable grade and width continuity in the East Gouldie mineralized zone, with indicated resource drilling meeting or exceeding the grade and width of the reported inferred resource, validating the inferred resource estimate. With twelve surface diamond drill rigs active on East Gouldie, as well as four underground drill rigs on Odyssey South, ongoing drilling is expected to convert a significant portion of the 2021 year-end inferred mineral resource to indicated mineral resources for 2022 year-end reporting. As well, drilling is expected to significantly expand the inferred resource envelope. These new indicated resources will provide the basis for updated technical studies in 2023 that will allow definition of mineral reserves for the Odyssey underground project over the next few years, starting at the end of 2022.
With a significant production platform, material cash flow generation and a prominent position within
Wasamac Exploration Update
Wasamac is a development-stage underground gold project located 15 kilometres west of
Exploration activities progressed as planned during the second quarter, with the focus continuing to be placed on infill drilling of the Wasamac resource, increasing confidence in the current resource model and converting inferred resources to indicated, as well as advancing geotechnical studies. To date in 2022, completed infill drilling consists of 29,753 metres in 47 drill holes. Results since mid-2021 continue to confirm or exceed expected grades and widths within the resource area, suggesting good opportunities to increase reserves within and adjacent the known mineralized envelope. Infill drilling highlights from the quarter include the following uncut, estimated true width intervals: WS-22-570, 5.70 g/t of gold over 9.74 metres, including 10.44 g/t of gold over 3.50 metres; WS-22-566, 5.88 g/t of gold over 11.05 metres, including 2.26 metres grading 19.55 g/t of gold; WS-22-568, 5.45 g/t of gold over 16.80 metres, including 14.90 g/t of gold over 3.23 metres and including 13.78 g/t of gold over 1.58 metres; and WS-22-589, 5.05 g/t of gold over 54.06 metres, including 7.09 metres grading 18.18 g/t of gold.
Exploration drilling completed in the second quarter included two step out drill holes totaling 1,020 metres in the Wildcat South target, testing the western extension from discovery drill hole WS-21-524, reported in the
Fieldwork at Francoeur was initiated during the second quarter, including geological mapping, surface sampling and target definition in preparation for exploration drilling, planned to begin during the third quarter of 2022.
Positive infill and exploration drilling results to date indicate the potential for a strategic mine life of 10 to 15 years at 200,000 to 250,000 ounces of gold per year, compared to the LOM average of 169,000 ounces in the feasibility study. The Wasamac deposit is not only open at depth and along strike but the underexplored secondary zones such as Wildcat are showing promising drilling results. Additional exploration targets on the property, including the adjacent Francoeur,
As a result of the improved production profile in the updated strategic LOM plan, unit costs are expected to be lower than the feasibility study LOM average all-in sustaining costs(1) of
Other opportunities that continue to be evaluated but are not yet included in the strategic plan include the processing flow sheet optimization to increase metallurgical recoveries by approximately 3% (for which metallurgical testing is ongoing), optimized configuration of the tailings filter plant and paste backfill plant, and increased levels of electrification, automation and renewable energy usage in the project.
Qualified Persons
Scientific and technical information contained in this news release has been reviewed and approved by
About Yamana
Yamana is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the
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T: +44 7931 765 223
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Email: Yamana.gold@fticonsulting.com
(1) 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 11: Non-GAAP Performance Measures and Additional Subtotals in Financial Statements in the Company's MD&A for the three months ended
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 the Company's strategy, plans, expectations, beliefs, including future financial or operating performance including exploration drilling plans and the timing thereof, the potential for future growth to mineral resources and mineral reserves, potential additional shaft at East Gouldie, expected timing for permitting and construction of the Odyssey project and potential to expand current LOM plan, the potential expansion of the Wasamac project's strategic LOM and the Partnership's potential exploration activities and future increases to production guidance. 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 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, 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 parameters 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 and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of
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