Exploration results continue to support year-over-year growth, with promising new discoveries in the first half of 2020, indicating excellent potential for new mineral reserves and mineral resources at year end. The commitment to near-mine exploration and to improving efficiencies at our operations has resulted in significant new mineralized zones not currently in life of mine plans.
A separate exploration update on the Canadian Malartic mine, including drilling results and a mineral resource update for the East Gouldie zone, is planned for early in the fourth quarter.
Exploration Highlights,
Drilling results in new production sectors of the mine, most notably Patagua and
Exploratory results in newly explored areas of the mine provided significant discoveries, including in the La
At La
Significance
Exploration in important new production sectors outside the core mine area, including Patagua and
Exploration Highlights, El Pe no n
Exploration continues to demonstrate the extension potential of several sectors, including Pampa Campamento, Martillo Flat, and
Drilling at Pampa Campamento successfully extended the southern mineralized zone on deeper levels, where drill hole UIP0009 returned 24.01 g/t of gold and 233.8 g/t of silver over 2.8 metres estimated true width, indicating the continuity of mineralization down dip.
At El Valle, the delineation drilling program intercepted wider mineralized intervals and defined the mineral envelope continuity along strike with good expansion potential. Notable drill results include 13.17 g/t of gold and 959.4 g/t of silver over 3.8 metres estimated true width (UEV0013).
Exploration generated additional discoveries and new mineralized structures, with the definition of Quebrada Colorada Sur, a recently discovered vein system located in the south continuation of the historically productive Colorada structure.
Significance
Exploration results at El Penon continue to highlight the expansion potential of historic sectors of the mine and support the Company's internal assessment that mine life at El Penon will exceed mine life supported by mineral reserves alone. The strategic mine life for El Penon is estimated to be at least 10 years. El Penon has a 20-year track record of mineral resource discovery and production depletion replacement. The latest discoveries at El Penon, which are located in areas adjacent to infrastructure, include wide intercepts in deeper extensions of major veins as well as lateral extensions of key past-producing areas of the mine, underscoring the potential for increased productivity at lower development costs. In addition, while the El Penon plant has the capacity to process up to 4,200 tonnes of ore per day ('tpd'), it is currently processing 3,300 tpd, meaning new discoveries can be brought forward thereby increasing annual production.
Exploration Highlights, Jacobina
At the
At Canavieiras Central, the exploratory program has confirmed the presence of the mineralized reefs with high grade intercepts along strike toward Canavieiras Sul and indicated down plunge continuity for further mineral resource expansion potential in this direction. Highlights include drill hole CANEX82, with 4.35 g/t of gold over an estimated true width of 4.5 metres.
Exploratory drilling at the Canavieiras Sul sector has confirmed the extension of the Maneira, LU, MU, and LVL reefs, expanding these zones along strike towards the south and further adding new areas for mineral resource expansion. Drilling highlights from this sector include: 7.29 g/t of gold over an estimated true width of 1.7 metres (CANEX70A) and 6.15 g/t of gold over an estimated true width of 1.9 metres (CANEX 88).
Significance
The exploration program at Jacobina continues to generate significant exploration results, with important new mineralized areas identified adjacent to the currently producing mines at Canavieiras Sul, Canavieiras Central, and Morro do Vento. The results support the Company's internal assessment that mine life for Jacobina will exceed the 15-year life of mine implied by mineral reserves alone. The strategic mine life for Jacobina is estimated at 20 years. Jacobina also has a long track record of replacing depletion of mineral reserves from mining.
This year, the exploration program has generated discoveries in new areas of the property, both east and west of the core mine, including La
At Patagua, delineation drilling results have expanded the known mineralized zones by 100 metres down dip, adding new mineralization in areas previously considered sub-economic, and through infill drilling along the intersection with the Don Leopoldo sector. Significant results from recent activity include the following estimated true width intercepts: 7.52 g/t of gold, 3.0 g/t of silver, and 0.49% of zinc over 2.5 metres (ALH2921); 11.55 g/t of gold, 5.3 g/t of silver, and 0.43% of zinc over 1.4 metres (ALH 3010); 4.19 g/t of gold, 11.3 g/t of silver, and 0.10% of zinc over 4.1 metres (ALH3059).
Successful delineation drilling on
Historically, exploration at Minera Florida has been concentrated in the central Alhue structural block, where most of the underground development and past drilling has occurred. In recent years, exploration has expanded beyond the east and west limits of the Alhue block. Exploratory drill testing in these new areas has successfully identified the continuity of mineralized veins beyond these perceived limits, both east and west of the central block. This work has generated significant new discoveries and demonstrates a much wider mineralization footprint on the large land package open to future exploration.
To the west, exploration drilling has successfully defined the La
To the east of the central Alhue structural block, drilling has identified the northwest-striking Bandolera vein system adjacent to current infrastructure. This new discovery has been defined over a 150-metre strike length and over a 300-metre vertical interval and remains open in all directions. Significant drilling results from Bandolera include the following estimated true width intercepts: 18.99 g/t of gold, 155.3 g/t of silver, and 0.28% of zinc over 1.5 metres (ALH 2861); 13.68 g/t of gold, 10.0 g/t of silver, and 6.90% of zinc over 2.0 metres (ALH 2890); 7.73 g/t of gold, 8.9 g/t of silver, and 0.08% of zinc over 1.0 metre (ALH 3002).
Exploration in important new production sectors outside the core mine area, including Patagua and
EL PENON EXPLORATION UPDATE
At El Penon, exploration has focused on adding new areas to the mineral resource base outside of the current life of mine plans, resulting in several important recent discoveries close to mine infrastructure. Drilling at Pampa Campamento, Martillo Flat, and
At Pampa Campamento, delineation drilling has extended the current mineral resource envelop at depth over 150 metres along strike, including the following significant estimated true width intercepts: 15.94 g/t of gold and 286.9 g/t of silver over 2.3 metres (UIP0005); 7.96 g/t of gold and 157.5 g/t of silver over 1.2 metres (UIP0008) and 24.01 g/t of gold and 233.8 g/t of silver over 2.8 metres (UIP0009). Drill hole UIP0009, which is located approximately 250 metres north and to depth from holes UIP0005 and UIP0008, opens up significant area for additional exploration.
At El Valle, exploration drilling successfully intersected the continuity of the vein system with wide, higher than average mine grade intervals, including the following highlights reported as estimated true widths: 13.17 g/t of gold and 959.4 g/t of silver over 3.8 metres (UEV0013); 10.73 g/t of gold and 145.9 g/t of silver over 3.5 metres (UEV0012). These results define the mineral envelope continuity along strike with good expansion potential.
Delineation drilling at Martillo Flat also continues to expand the mineralized vein at depth. Significant results as estimated true widths include: 14.97 g/t of gold and 1,548.1 g/t of silver over 1.0 metres (35.02 g/t of gold equivalent diluted over a minimum mining width of 1.2 metres) (UIM0045); 6.40 g/t of gold and 354.0 g/t of silver over 1.9 metres (UEM0013); 14.60 g/t of gold and 1,033.0 g/t of silver over 0.5 metres (12.77 g/t of gold equivalent diluted over a minimum mining width of 1.2 metres) (UEM0011).
The exploration program at El Penon continues to demonstrate the potential of the El Penon district. Exploratory drilling south of the prolific Colorada vein system has identified a new sub-parallel vein strand, Quebrada Colorada Sur. Recent drilling highlights from this new vein strand include the following estimated true width intercepts: 14.30 g/t of gold and 501.7 g/t of silver over 1.6 metres (SNX0973); 12.30 g/t of gold and 339.0 g/t of silver over 1.1 metres (14.83 g/t of gold equivalent diluted over a minimum mining width of 1.2 metres) (UEQ0004). These recent drilling results combined with a data review define a vein system over a 500-metre north-south strike length, which is open to expansion, that is the focus of an ongoing drill program.
At El Penon, a long, successful history of replacing depletion and adding new mineral resources reflects the resilience and quality of Yamana's large flagship epithermal deposit, which has been actively mined for more than 20 years. The results continue to highlight the expansion potential of historic sectors of the mine and support the Company's internal assessment that mine life at El Penon will exceed mine life supported by mineral reserves alone. The strategic mine life for El Penon is estimated to be at least 10 years. In addition, wide intercepts in deeper extensions of major veins and along lateral extensions of key past-producing areas of the mine underscore the potential for increased productivity at lower development costs, while the available excess mill capacity will allow significant operational flexibility.
JACOBINA EXPLORATION UPDATE
The exploration program at the
At Morro do Vento, successful delineation drilling continues to generate higher grade results in the Main Reef zone, including the following estimated true width intercepts: 7.15 g/t of gold over 4.9 metres, 9.43 g/t of gold over 4.3 metres, and 5.80 g/t of gold over 3.8 metres (MVTEX048).
At Canavieiras Central, exploratory drilling along the south extension towards Canavieiras Sul has confirmed the presence of the LVL and Maneira reefs, with estimated true width intercepts of 4.35 g/t of gold over 4.5 metres (CANEX82) and 3.70 g/t of gold over 3.1 metres (CANEX 92). The results open up 300 metres of strike potential and indicate down plunge continuity in a southwest direction to be further explored.
Exploratory drilling at Canavieiras Sul in the second quarter of 2020 continued to provide excellent results, demonstrating the potential extension of the Maneira, LU, MU, and LVL reefs in this mine. Drilling expanded over 150 metres to the south of the known extents of the LU and LVL reefs and opened up an additional 100 metres of the Maneira reef. Significant drill results include the following estimated true width intervals: 7.29 g/t of gold over 1.7 metres (CANEX70A); 6.15 g/t of gold over 1.9 metres (CANEX88).
UPCOMING EVENTS
The Company would like to highlight a number of notable upcoming events and milestones. These include:
The Company expects to begin trading on the Main Market of the
The release of third quarter financial and operational results on
An exploration update press release for the Canadian Malartic mine, including drilling results and a mineral resource update for the East Gouldie zone is planned for early in the fourth quarter.
An exploration update press release highlighting progress on select projects in the Company's generative exploration program, including
While the Company's exploration program at Cerro Moro was initially delayed this year due to certain COVID-19 related restrictions, drilling is currently ramping up to complete the planned mineral reserve and mineral resource delineation program by year-end.
A preliminary economic assessment on the Canadian Malartic underground project is expected to be completed in 2021.
A feasibility study for Phase 2 of the Jacobina mine expansion is expected to be completed in 2021.
A feasibility study for the Agua Rica project is expected to be completed in 2021.
Quality Assurance and Quality Control
Yamana incorporates a Quality Assurance and Quality Control ('QA/QC') program for all of its mines and exploration projects which conforms to industry best practices.
Samples are transported in security sealed bags for preparation at ALS and SGS analytical laboratories, both ISO 9001:2008 and 17025 certified laboratories, except at Jacobina where sample preparation and primary analysis is completed on site. Gold is analyzed by gold fire assay with 30 grams or 50 grams aliquot and AAS finish. Samples over 5 g/t are re-analyzed by gravimetric finish methods. Silver is determined using a four acid digestion and AAS finish (ore level) and samples over 30g/t are re-analyzed by gravimetric finish methods. Five percent of all pulps are further checked by secondary certified laboratories (ALS, SGS,
All exploration diamond drill cores are split in half by mechanical spitting or core sawing and sampled at appropriate intervals for assay, except for small diameter drilling (BQ) from underground setups at Jacobina where core is logged, photographed and whole core submitted 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 the secondary lab.
About Yamana
Contact:
Tel: 416-815-0220
Email: investor@yamana.com
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
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