TSX- and NYSE-listed Yamana Gold has announced that the Agua Rica project, in Argentina, will be developed and operated using the existing infrastructure and facilities of a joint venture (JV) that it has with Glencore and Goldcorp in that country.
The integration of the Agua Rica copper project with the Alumbrera mine that the three companies jointly own, will enhance project economics, while reducing project complexity and its environmental footprint.
The companies said on Thursday that preliminary studies showed the potential for a mine life of 25 years at average production of about 236 000 t/y of copper-equivalent metal, including the contributions of gold, molybdenum and silver for the first ten years of operation. This is based on the Agua Rica mineral reserve being estimated to contain proven and probable mineral reserves of about 4.5-million tonnes of copper and 6.5-million ounces of gold contained in about 910-million tonnes of ore.
A prefeasibility study for the integrated project will be completed in 2019 and a full feasibility study with updated mineral reserves, and production and project cost estimates will be completed by 2020.
This will provide the framework for the submission of a new environmental impact assessment (EIA) to the authorities of the Catamarca province and for the continued engagement with local stakeholders and communities.
In respect of the contribution of the parties, Yamana will contribute its current 100% interest in the Agua Rica project and its 12.5% interest in Alumbrera, while Glencore and Goldcorp will contribute their respective 50% and 37.5% interests in Alumbrera.
Full integration is expected to occur with the filing of the full feasibility study and EIA. Upon completion, Yamana will own 56.25%, Glencore 25% and Goldcorp 18.75% of the integrated project.