TORONTO (miningweekly.com) – Toronto-based Yamana Gold will focus on optimising its mines and moving projects through the pipeline, rather than acquiring new assets, CEO Peter Marrone reiterated on Wednesday.

He said that the only acquisitions that would be considered are what he termed “concession” or “on the ground”, purchases of early stage prospects and property, rather than corporate buys.

The company will look mainly in the regions where it already operates, but would also consider increasing its exploration activities elsewhere in the Americas, Marrone said.

He also indicated that the firm is not considering any more asset sales.

“Anything that we would consider to be noncore we have dealt with. The rest is in the portfolio of the company.”

Yamana was formed in 2003 and bought rival Meridian Gold and the smaller Northern Orion Resources in October 2007.

Marrone boosted annual production from just 81 017 gold-equivalent ounces in 2004 – its first full year of operation – to 812 842 oz last year, with production in 2009 currently forecast at between 1,05-million ounces and 1,1-million ounces, thanks to new mines starting up.

The next milestone for the company will be a production target of 1,7-million ounces, which Marrone said should be achievable from projects already in the portfolio.

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

The company also 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.

Yamana achieved commercial production earlier this year at its newest mine, Gualcamayo, Argentina, and Marrone said that the asset has exceeded expectations so far.

Third-quarter production at Gualcamayo increased to 39 523 oz of gold, representing a 62% and 93% increase compared with the second quarter and first quarter of 2009 respectively, while cash costs for the quarter came in at $316/oz, easily beating the earlier guidance of below $350/oz.

Looking ahead, the company has approved the construction of its Mercedes gold/silver project, in Mexico, the C1 Santa Luz mine, in Brazil, and a tailings-recovery project at its Minera Florida operation, in Chile, with all three scheduled to start production in 2012.

It is also working on studies for the Pilar/Caiamar and Ernesto/Pau-a-pique projects, all in Brazil, and plans to complete an updated feasibility study on developing the third orebody, QDD Lower West, at Guacalmayo.

Shares in Yamana rose 0,4% on Wednesday, to C$12,59 apiece by 16:28 in Toronto.