The acquisition of the Globex claims will significantly add to the exploration upside of the Wasamac project, and it is consistent with Yamana's strategy to expand its presence in the
The Globex properties also cover several historical gold producers located along the shear zone and, notwithstanding past production, exploration will build on a historical drill database of 1,024 drill holes by drilling several high potential targets with significant gold intercepts located outside of the historically mined areas as well as extending known mineral resources. Wasamac, Francoeur and
Pursuant to the terms of the Agreement, Yamana will pay an initial amount of
The acquisition also includes certain other claims in
Closing of the Transaction is expected to take place on or about
Yamana's Wasamac project is located in the
Following an in-depth review of the 2018 Feasibility Study, Yamana has identified opportunities to optimize the processing plant design, incorporate increased levels of automation in the underground mine, and optimize the materials handling system to increase the planned throughput rate to 7,000 tonnes per day. In addition, the processing plant and associated infrastructure have been designed at a nameplate capacity of 7,500 tonnes per day, representing further production upside. Additional metallurgical test work supports an optimized processing flow sheet, meaning that the higher throughput can be achieved with similar-sized equipment to the 2018 study. In the mine, the underground crusher and conveyor system requires significantly less capital development compared to the previous study.
The higher throughput rate supports the Company's vision of Wasamac as a 170,000 to 200,000 ounce per year producer with all-in sustaining costs well below the Company's average. The Company has also identified opportunities to convert additional mineral reserves at the same average gold grade to maintain an initial reserve life at the higher than Feasibility Study throughput and production levels referred to above of more than 10 years. In addition, mineral resources exclusive of mineral reserves along with expansion potential at depth and in other areas of the original claims package support a strategic mine life of more than 15 years. This geological and exploration potential is significantly improved with the purchase of the Globex claims.
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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 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 Transaction and anticipated timing of closing; the expectation that the Transaction will significantly add to the exploration upside of the Wasamac project; the expectation that drill exploration will be initiated during the second half of 2021; the timing of the Wasamac Feasibility Study and the expectation that the exploration work will lead to the addition of mineral resources that could extend mine life or enhance production at the proposed Wasamac mine. 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 of each of the companies 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, without limitation, unforeseen impacts on cash flow, the timing and outcome of the planned exploration work,, 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, fluctuating metal prices changes in mineral resources and mineral reserves, changes in project parameters as plans continue to be refined, changes in project development, 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, , 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, , environmental risks, , title disputes or claims, limitations on insurance coverage, labour disputes, as well as those risk factors discussed or referred to herein and in Yamana's Annual Information Form filed with the securities regulatory authorities in all provinces of
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