VANCOUVER (miningweekly.com) – Canada's Yamana Gold produced a best-ever 314 200 gold-equivalent ounces in the third quarter, the firm announced on Tuesday, an increase of 9% compared with the previous quarter and up 16% on output during the first three months of the year.

Shares in the company jumped 7,6%, to C$12,05 apiece by 16:16 in Toronto.

Yamana said production in the third quarter was most improved at its El Penon and Gualcamayo mines, in Chile and Argentina respectively.

At El Penon, production in the third quarter of 2009 increased to approximately 108 800 gold-equivalent ounces (includes silver), representing an 18% increase compared with the second quarter, while output at Gualcamayo rose to about 39 200 oz of gold, up 61% from the second quarter

The firm said that cash costs for its six 'core' mines were within the forecast range for the year of between $345 and $375 per gold-equivalent ounce.

At Gualcamayo, which achieved commercial production in July this year, preliminary cost data shows the operation was able to keep cash costs during the third quarter at under $350/oz, well below previous guidance for the mine of below $450/oz.

Yamana, which bought rival Meridian Gold and the smaller Northern Orion Resources in October 2007, agreed in June this year to sell three noncore operating mines - San Andres, in Honduras, and the Sao Francisco and Sao Vicente mines in Brazil, to Canadian junior Aura Minerals.

The company has producing mines in Brazil, Chile and Argentina and is studying or starting up new operations in all three countries, as well as Mexico.

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