Name of the Project
Agua Rica copper/gold project.

Location
The project is located in the Catamarca province of Argentina.

Project Owner/s
Yamana Gold.

The Agua Rica project will be developed using infrastructure and facilities of a joint venture that Yamana has with Glencore and Newmont Goldcorp, in Argentina.

Project Description
A prefeasibility study (PFS) has significantly advanced Agua Rica and underscored the project as a long-life, low-cost project with robust economics and significant upside potential.

The project has proven and probable copper mineral reserves of 11.8-billion pounds and gold mineral reserves of 7.4-million ounces.

The PFS estimates a life-of-mine (LoM) of 28 years, with average production over the first ten years of about 533-million pounds of copper equivalent a year, including 107 000 oz/y of gold and contributions of molybdenum and silver. The project is expected to produce 452-million pounds of copper equivalent over the LoM. The PFS assumes a throughput rate of 110 000 t/d, with scenarios considering a higher throughput rate to be evaluated in the value-seeking study and subsequent full feasibility study.

The project will be integrated with the Alumbrera mine, which Yamana, Glencore and Newmont jointly own, thereby enhancing project economics, while reducing project complexity and its environmental footprint.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of $1.94-billion and an after-tax internal rate of return
of 19.7%.

Capital Expenditure
The project has an initial estimated capital cost of $2.4-billion.

Planned Start/End Date
Not stated.

Latest Developments
A full feasibility study is expected to be completed by 2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Yamana Gold, tel +1416815 0220 or email investor@yamana.com.